The Philippine Islands became a Spanish colony during the 16th century; they were ceded to the US in 1898 following the Spanish-American War. In 1935 the Philippines became a self-governing commonwealth. Manuel QUEZON was elected president and was tasked with preparing the country for independence after a 10-year transition. In 1942 the islands fell under Japanese occupation during WWII, and US forces and Filipinos fought together during 1944-45 to regain control. On 4 July 1946 the Republic of the Philippines attained its independence. The 20-year rule of Ferdinand MARCOS ended in 1986, when a "people power" movement in Manila ("EDSA 1") forced him into exile and installed Corazon AQUINO as president. Her presidency was hampered by several coup attempts, which prevented a return to full political stability and economic development. Fidel RAMOS was elected president in 1992 and his administration was marked by greater stability and progress on economic reforms. In 1992, the US closed its last military bases on the islands. Joseph ESTRADA was elected president in 1998, but was succeeded by his vice-president, Gloria MACAPAGAL-ARROYO, in January 2001 after ESTRADA's stormy impeachment trial on corruption charges broke down and another "people power" movement ("EDSA 2") demanded his resignation. MACAPAGAL-ARROYO was elected to a six-year term as president in May 2004. The Philippine Government faces threats from three terrorist groups on the US Government's Foreign Terrorist Organization list, but in 2006 and 2007 scored some major successes in capturing or killing key wanted terrorists. Decades of Muslim insurgency in the southern Philippines have led to a peace accord with one group and an ongoing cease-fire and peace talks with another.

Geography

The Philippine archipelago is made up of 7,107 islands; favorably located in relation to many of Southeast Asia's main water bodies: the South China Sea, Philippine Sea, Sulu Sea, Celebes Sea, and Luzon Strait

Location: Southeastern Asia, archipelago between the Philippine Sea and the South China Sea, east of Vietnam

Area: total: 300,000 sq km; land: 298,170 sq km; water: 1,830 sq km

Land boundaries: 0 km

Coastline: 36,289 km

Climate: tropical marine; northeast monsoon (November to April); southwest monsoon (May to October)

Terrain: mostly mountains with narrow to extensive coastal lowlands

Elevation extremes: lowest point: Philippine Sea 0 m
highest point: Mount Apo 2,954 m

Natural resources: timber, petroleum, nickel, cobalt, silver, gold, salt, copper

People

Population: 91,077,287 (July 2007 est.)

Net migration rate: -1.48 migrant(s)/1,000 population (2007 est.)

Life expectancy at birth: total population: 70.51 years;
male: 67.61 years; female: 73.55 years (2007 est.)

Ethnic groups: Tagalog 28.1%, Cebuano 13.1%, Ilocano 9%, Bisaya/Binisaya 7.6%, Hiligaynon Ilonggo 7.5%, Bikol 6%, Waray 3.4%, other 25.3% (2000 census)

Religions: Roman Catholic 80.9%, Muslim 5%, Evangelical 2.8%, Iglesia ni Kristo 2.3%, Aglipayan 2%, other Christian 4.5%, other 1.8%, unspecified 0.6%, none 0.1% (2000 census)

Languages: Filipino (official; based on Tagalog) and English (official); eight major dialects - Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinan

Government

Government type: republic

Capital: Manila

Administrative divisions:
79 provinces and 117 chartered cities
provinces: Abra, Agusan del Norte, Agusan del Sur, Aklan, Albay, Antique, Apayao, Aurora, Basilan, Bataan, Batanes, Batangas, Biliran, Benguet, Bohol, Bukidnon, Bulacan, Cagayan, Camarines Norte, Camarines Sur, Camiguin, Capiz, Catanduanes, Cavite, Cebu, Compostela, Davao del Norte, Davao del Sur, Davao Oriental, Eastern Samar, Guimaras, Ifugao, Ilocos Norte, Ilocos Sur, Iloilo, Isabela, Kalinga, Laguna, Lanao del Norte, Lanao del Sur, La Union, Leyte, Maguindanao, Marinduque, Masbate, Mindoro Occidental, Mindoro Oriental, Misamis Occidental, Misamis Oriental, Mountain Province, Negros Occidental, Negros Oriental, North Cotabato, Northern Samar, Nueva Ecija, Nueva Vizcaya, Palawan, Pampanga, Pangasinan, Quezon, Quirino, Rizal, Romblon, Samar, Sarangani, Siquijor, Sorsogon, South Cotabato, Southern Leyte, Sultan Kudarat, Sulu, Surigao del Norte, Surigao del Sur, Tarlac, Tawi-Tawi, Zambales, Zamboanga del Norte, Zamboanga del Sur, Zamboanga Sibugay; chartered cities: Alaminos, Angeles, Antipolo, Bacolod, Bago, Baguio, Bais, Balanga, Batangas, Bayawan, Bislig, Butuan, Cabanatuan, Cadiz, Cagayan de Oro, Calamba, Calapan, Calbayog, Candon, Canlaon, Cauayan, Cavite, Cebu, Cotabato, Dagupan, Danao, Dapitan, Davao, Digos, Dipolog, Dumaguete, Escalante, Gapan, General Santos, Gingoog, Himamaylan, Iligan, Iloilo, Isabela, Iriga, Kabankalan, Kalookan, Kidapawan, Koronadal, La Carlota, Laoag, Lapu-Lapu, Las Pinas, Legazpi, Ligao, Lipa, Lucena, Maasin, Makati, Malabon, Malaybalay, Malolos, Mandaluyong, Mandaue, Manila, Marawi, Markina, Masbate, Muntinlupa, Munoz, Naga, Olongapo, Ormoc, Oroquieta, Ozamis, Pagadian, Palayan, Panabo, Paranaque, Pasay, Pasig, Passi, Puerto Princesa, Quezon, Roxas, Sagay, Samal, San Carlos (in Negros Occidental), San Carlos (in Pangasinan), San Fernando (in La Union), San Fernando (in Pampanga), San Jose, San Jose del Monte, San Pablo, Santa Rosa, Santiago, Silay, Sipalay, Sorsogon, Surigao, Tabaco, Tacloban, Tacurong, Tagaytay, Tagbilaran, Taguig, Tagum, Talisay (in Cebu), Talisay (in Negros Oriental), Tanauan, Tangub, Tanjay, Tarlac, Toledo, Tuguegarao, Trece Martires, Urdaneta, Valencia, Valenzuela, Victorias, Vigan, Zamboanga

chief of state: President Gloria MACAPAGAL-ARROYO (since 20 January 2001); note - president is both chief of state and head of government

Economy

The Philippines was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided in part by its high level of annual remittances from overseas workers, no sustained runup in asset prices, and more moderate debt, prior to the crisis. From a 0.6% decline in 1998, GDP expanded by 2.4% in 1999, and 4.4% in 2000, but slowed to 3.2% in 2001 in the context of a global economic slowdown, an export slump, and political and security concerns. Average GDP growth accelerated to about 5% between 2002 and 2006 reflecting the continued resilience of the service sector, and improved exports and agricultural output. Nonetheless, it will take a higher, sustained growth path to make appreciable progress in the alleviation of poverty given the Philippines' high annual population growth rate and unequal distribution of income. The Philippines also faces higher oil prices, higher interest rates on its dollar borrowings, and higher inflation. Fiscal constraints limit Manila's ability to finance infrastructure and social spending. The Philippines' consistently large budget deficit has produced a high debt level, and this situation has forced Manila to spend a large portion of the national government budget on debt service. Large unprofitable public enterprises, especially in the energy sector, contribute to the government's debt because of slow progress on privatization. Credit rating agencies have at times expressed concern about the Philippines' ability to service the debt, though central bank reserves appear adequate and large remittance inflows appear stable. The implementation of the expanded Value Added Tax (VAT) in November 2005 boosted confidence in the government's fiscal capacity and helped to strengthen the peso, making it East Asia's best performing currency in 2005-06. Investors and credit rating institutions will continue to look for effective implementation of the new VAT and continued improvement in the government's overall fiscal capacity in the coming year.

Labor force: 35.79 million (2006 est.)

Labor force - by occupation: agriculture: 36%; industry: 15%; services: 49% (2004 est.)

Unemployment rate: 7.9% (2006 est.)

Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

information courtesy The World Factbook Spetember 2007