The Philippines recent performance, prospects for 1991-92, and policy and development issues

Recent developments have put the Philippine economy at the threshold of another Balance-of-Payments (BOP) crisis. Several months after barely surviving a coup attempt in the latter part of 1989, the Aquino government had its hands full trying to wrestle with a crippling power shortage. Authorities were quick to blame the prevailing drought at that time which already had adverse effects on agricultural production. Just as electricity supply was returning to normal, a disastrous earthquake struck the northern part of Luzon island claiming 1,500 lives and causing much property damage. Then in August, Iraq invaded Kuwait causing the price of oil to double and since that time, domestic fuel prices have more than doubled. As if these were not enough, a secessionist attempt was staged in the island of Mindanao underscoring the disharmony in the armed forces.