Philippine peso
Piso ng Pilipinas (Filipino)
The front side of a one-thousand peso bill BSP series coins The front side of a one-thousand peso bill BSP series coins
ISO 4217 code	PHP
Central bank	Bangko Sentral ng Pilipinas
Website	www.bsp.gov.ph
User(s)	Philippines
Inflation	4.3 % (as of August 2011)
Source	Bangko Sentral ng Pilipinas (Central Bank of the Philippines), December 2010
Method	CPI
Subunit
1/100	sentimo (Filipino) céntimo or centavo (Spanish)
Symbol	PhilippinePeso.svg (₱ in unicode)
Coins
Freq. used	25 sentimo, 1, 5, 10 piso
Rarely used	1, 5, 10 sentimo
Banknotes
Freq. used	20, 50, 100, 200, 500, 1000 piso
Rarely used	5, 10 piso
Printer	The Security Plant Complex
Website	www.bsp.gov.ph
Mint	The Security Plant Complex
Website	www.bsp.gov.ph

The peso (Filipino: piso) (sign: ₱; code: PHP) is the currency of the Philippines. It is subdivided into 100 centavos (Filipino: sentimo, Visayan: sentabo).^[1] Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used. The language was then changed to Filipino, so that the name of the currency as written on the banknotes and coins is now Piso.

The peso is usually denoted by the symbol "₱". This symbol was added to the Unicode standard in version 3.2 and is assigned U+20B1 (₱). The symbol can be accessed through some word processors by typing in "20b1" and then pressing the Alt and X buttons simultaneously. Other ways of writing the Philippine Peso sign are "PHP", "PhP", "P", or "P" (strike-through or double-strike-through uppercase P), which is still the most common method, however font support for the Unicode Peso sign has been around for some time.^[2]

The coins and banknotes are made at the Security Plant Complex of the Bangko Sentral ng Pilipinas.

History[link]

Pre-Spanish Colonial Period[link]

Trade among the early Filipinos and with traders from the neighboring islands was conducted through barter. The inconvenience of barter later led to the use of some objects as medium of exchange. These objects included piloncitos and gold barter rings. Piloncitos are small bead-like gold bits, and they are considered by the local numismatists as the earliest coin of the ancient Filipinos.

Spanish Colonial Period[link]

The Spaniards brought their coined money when they came in 1521 and the first European coin which reaches the Philippine Islands with Magellan's arrival was the teston or four-reales silver coin. The teston became the de facto unit of trade between Spaniards and Filipinos before the founding of Manila in 1574. The native name for the coin was salapi (Tagalog for money).

Pre-Decimal Coinage[link]

With the establishment of Manila, the Spanish introduced the silver Real de a ocho, already known across the Spanish Empire coloquially as the peso, which was divided into 8 Reales and further subdivided into 4 Quartos or 8 Octavos.

The monetary situation in the Philippine Islands was chaotic due to the circulation of many types of coins, with differing purity and weights, coming from mints across the Spanish-speaking world. Spanish coins circulated freely with those from the newly independent Spanish colonies including reales fuertes, reales de vellón, peseta columnaria, peseta sencilla, pesos de minas, tomines, ducados, maravedis among others. Value equivalents of the different monetary systems were usually difficult to comprehend and hindered trade and commerce.

Decimal Coinage[link]

An attempt to remedy the monetary confusion was made in 1848, with the introduction of the decimal system in 1857 under the second Isabelline monetary system.^[3] Overseeing the conversion was Fernándo Norzagaray y Escudero, governor general in the period 1857-60.

Conversion to the decimal system with the peso fuerte (Spanish for strong peso) as the unit of account solved the accounting problem, but did little to remedy the confusion of differing circulating coinage. Renewed calls for the Philippine Islands to have a proper mint and monetary system finally came to fruition in September 1857, when Queen Isabel II authorized the creation of the Casa de Moneda de Manila and purchase of required machinery. The mint was inaugurated on March 19, 1861.

Despite the mintage of gold and silver coins, Mexican and South and Central American silver still circulated widely. 123

[edit] The Isabella Peso or Peso Fuerte

The Isabelline Peso, more formally known as the peso fuerte was a unit of account divided into 100 centimos equivalent to 8 reales fuertes or 80 reales de vellón. Its introduction led to the Philippines' brief experiment with the gold standard, which would not again be attempted until the American Colonial Period. The Peso Fuerte was also a unit of exchange equivalent to 1.69 grams of gold, 0.875 fine (0.0476 XAU), equivalent to ₱2,934.31 modern pesos of as of 22 December 2010.^[4]

Coin production at the Casa de Moneda de Manila began in 1861 with gold coins (0.875 fine) of three denominations: 4 pesos, 2 pesos, and 1 peso. On March 5, 1862, Isabel II granted the mint permission to produce silver fractional coinage (0.900 fine) in denominations of 10, 20, and 50 centimos de peso. Minting of these coins started in 1864, with designs similar to the Spanish Silver Escudo.

[edit] The Alfonso Peso, the Spanish-Filipino Peso

A final attempt to standardize the currency in the Philippines was made by the Spanish government with the minting of a silver peso expressly for use in the colony and firmly reestablishing the silver standard as the Philippine monetary system. The coin, which was to be later known as the Spanish-Filipino peso, was minted in Madrid in 1897 and bore the bust of King Alfonso XIII. The specifications of the coin was 25 grams of silver .900 fine. This configuration was also used in the creation of the Puerto Rican provincial peso in 1895 giving both coins the equivalency of 5 pesetas.^[5]

The new monetary standard finally established the Peso as 25 grams silver, 0.900 fine (0.7234 XAG), equivalent to ₱942.535 modern pesos of as of 22 December 2010.^[6]

The Spanish-Filipino peso remained in circulation and were legal tender in the islands until 1904, when the American authorities demonetized them in favor of the new US-Philippine peso.

Revolutionary Period[link]

Asserting its independence after the Philippine Declaration of Independence on June 12, 1898, the República Filipina (Philippine Republic) under General Emilio Aguinaldo issued its own coins and paper currency backed by the country’s natural resources. The coins were the first to use the name centavo for the subdivision of the peso. The island of Panay also issued revolutionary coinage. After Aguinaldo's capture by American forces in Palanan, Isabela on March 23, 1901, the revolutionary peso ceased to exist.

American Colonial Period[link]

After the United States took control of the Philippines, the United States Congress passed the Philippine Coinage Act (March 3, 1903), established the unit of currency to be a theoretical gold peso (not coined) consisting of 12.9 grains of gold 0.900 fine (0.026875 XAU), equivalent to ₱2,933.07 modern pesos of as of 22 December 2010.^[7] This unit was equivalent to exactly half the value of a U.S. dollar ^[8] and maintained its purchasing power until the opening day of the Central Bank of the Philippines in 1949.

The act provided for the coinage and issuance of Philippine silver pesos substantially of the weight and fineness as the Mexican peso, which should be of the value of 50 cents gold and redeemable in gold at the insular treasury, and which was intended to be the sole circulating medium among the people. The act also provided for the coinage of subsidiary and minor coins and for the issuance of silver certificates in denominations of not less than 2 nor more than 10 pesos.

It also provided for the creation of a gold-standard fund to maintain the parity of the coins so authorized to be issued and authorized the insular government to issue temporary certificates of indebtedness bearing interest at a rate not to exceed 4 per cent per annum, payable not more than one year from date of issue, to an amount which should not at any one time exceed 10 millions of dollars or 20 millions of pesos.

1945 ten-centavo coin, minted in Denver, Colorado, showing the coat of arms of the Philippine Commonwealth

World War II[link]

In 1942, the Japanese occupiers introduced notes for use in the Philippines. Emergency circulating notes (also termed "guerrilla pesos") were also issued by banks and local governments, using crude inks and materials, which were redeemable in silver pesos after the end of the war. The Japanese-sponsored Second Philippine Republic under José P. Laurel outlawed possession of guerrilla currency and declared a monopoly on the issuance of money and anyone found to possess guerrilla notes could be arrested. Because of the fiat nature of the currency, the Philippine economy felt the effects of hyperinflation.

Combined U.S. and Philippine Commonwealth military forces including recognized guerrilla units continued printing Philippine pesos, so that, from October 1944 to September 1945, all earlier issues except for the emergency guerrilla notes were considered illegal and were no longer legal tender.

Independence[link]

Republic Act No. 265 created the Central Bank of the Philippines (CBP, now the Bangko Sentral ng Pilipinas) on January 3, 1949, in which was vested the power of administering the banking & credit system of the country.^[9] Under the act, all powers in the printing and mintage of Philippine currency was vested in the CBP, taking away the rights of the banks such as Bank of the Philippine Islands and the Philippine National Bank to issue currency.

In a repeat of Japanese wartime monetary policy, the government defaulted on its promises to redeem its banknotes in silver or gold coin while promising to maintain the two-to-one peso to dollar parity. This decision, compounded with the deliberate overprinting of fiat banknotes, resulted in the peso dropping in value by almost 300% against the US dollar within the first three hours of opening day. The government effort to maintain the peg devastated the gold, silver and dollar reserves of the country.

By 1964, the bullion value of the old silver pesos was worth almost twelve times their face value and were being hoarded by Filipinos rather than being surrendered to the government at face value. In desperation, then-President Diosdado Macapagal demonetized the old silver coins and floated the currency. The peso has been a floating currency ever since, which means that the currency is a physical representation of the domestic debt and whose value directly tied to people's perception of the stability of the current regime and its ability to repay the debt.

From the opening of the Bangko Sentral ng Pilipinas in 1949, successive governments have continued to devalue the currency to lower the accumulated domestic debt in real terms, which in December 2005 reached ₱4.02 trillion. Many Filipinos perceive the peso's value in relation to the US dollar — rather than consider the currency's purchasing power — and thus tend to blame whatever regime is in power for the worsening exchange rate.

In 1967, the language used on all coins and banknotes was changed to Tagalog. As a consequence, the wordings of the currency changed from centavo and peso to sentimo and piso.

Current economy[link]

Based on the current price of gold, the Philippine peso has now lost 99.9328% of its original 1903–1949 value. As of December 22, 2010, it takes ₱2,933.07 modern pesos to equal the intrinsic purchasing power parity of the 1903–1949 Philippine Commonwealth peso, as per its legal definition: 12.9 grains of pure gold (or 0.026875 XAU).^[10]

As of 11 May 2010 (2010 -05-11)^[update], the Philippine money supply (M1) totaled about ₱1.22 trillion.^[11] As of 3 October 2010 (2010 -10-03)^[update], the Philippine Peso traded at 43.63 per US$,^[12] 60.17013 per EUR,^[13] 6.52119 per CNY.^[14]

Coins[link]

The American Government deemed it more economical and convenient to mint silver coins in the Philippines, hence, the re-opening of the Manila Mint in 1920, which produced coins until the Commonwealth period.

In 1937, coin designs were changed to reflect the establishment of the Commonwealth. No coins were minted in the years 1942 and 1943 due to the Japanese occupation, but minting resumed in 1944, including production of 50 centavos coins. Due to the large number of coins issued between 1944 and 1947, coins were not minted again until 1958.

In 1958, a new, entirely base metal coinage was introduced, consisting of bronze 1 centavo, brass 5 centavos and nickel-brass 10, 25 and 50 centavos. In 1967, the coinage was altered to reflect the use of Filipino names for the currency units. 1-piso coins were introduced in 1972. In 1975, the "Ang Bagong Lipunan" series was introduced with the 5-piso coins included. Aluminium replaced bronze and cupro-nickel replaced nickel-brass that year. The Flora and Fauna series was introduced in 1983 which included 2-piso coins. The sizes of the coins were reduced in 1991, with production of 50-sentimo and 2-piso coins ceasing in 1994. The current series of coins was introduced in 1995, with 10-piso coins added in 2000.

Denominations below 1 piso are still issued but are not in wide use. In December 2008 a Philippine Congress resolution called for the retirement and demonetization of all coins less than one peso.^[15]

Banknotes[link]

In 1949, the Central Bank of the Philippines took over paper money issue. Its first notes were overprints on the Victory Treasury Certificates. These were followed in 1951 by regular issues in denominations of 5, 10, 20 and 50 centavos, 1, 2, 5, 10, 20, 50, 100, 200 and 500 pesos. The centavo notes (except for the 50-centavo note, which would be later known into the half-peso note) were discontinued in 1958 when the English Series coins were first minted.

In 1967, the CBP adopted the Filipino language on its currency, using the name Bangko Sentral ng Pilipinas, and in 1969 introduced the "Pilipino Series" of notes in denominations of 1, 5, 10, 20, 50 and 100 piso. The "Ang Bagong Lipunan Series" was introduced in 1973 and included 2-peso notes. A radical change occurred in 1985, when the CBP issued the "New Design Series" with 500-piso notes introduced in 1987, 1000-peso notes (for the first time) in 1991 and 200-piso notes in 2002.

Philippine banknotes are currently issued in the following denominations:

• 5 peso (No longer being printed, no circulation)
• 10 peso (No longer being printed,no circulation)
• 20 peso
• 50 peso
• 100 peso
• 200 peso
• 500 peso
• 1000 peso

New Design/BSP Banknote series[link]

New Generation Currency[link]

In 2009 the Bangko Sentral ng Pilipinas announced that has launched a massive redesign for current banknotes and coins to further enhance security features and improve durability.^[16] The members of the numismatic committee include Bangko Sentral Deputy Governor Diwa Guinigundo and Dr. Ambeth Ocampo Chairman of the National Historical Institute. The new banknote designs feature famous Filipinos and iconic natural wonders. Philippine national symbols will be depicted on coins. The BSP started releasing the initial batch of new banknotes in December 2010 while new coins will be introduced beginning 2012. Current banknotes will remain legal tender for at least three years exactly in December 2013.

Recent issues[link]

"Arrovo" banknotes[link]

In 2005, several 100-peso notes with President Gloria Macapagal-Arroyo's surname misspelled as "Arrovo" were in circulation. Days after this was first found out, the BSP ordered an investigation.^[17]

Fraud problem with the 1 peso coin[link]

By August 2006, it became publicly known that the 1 peso coin has the same size as the 1 United Arab Emirates dirham coin.^[18] As of 2010^[update], 1 peso is only worth 7 fils (0.07 dirham), leading to vending machine fraud in the U.A.E. Similar frauds have also occurred in the US, as the 1 peso coin is roughly the same size as the Quarter but as of 2010^[update] is worth only about 2 U.S. cents. Newer digital parking meters are not affected by the fraud.

• 

  A 1 United Arab Emirates dirham coin.

• 

  A U.S. Quarter (25 cents).

New Generation series errors[link]

Several, albeit disputable, errors have been discovered on banknotes of the New Generation series and have become the subject of ridicule in social networking sites. Among these are the exclusion of Batanes from the Philippine map on the reverse of all denominations, the mislocation of the Puerto Princesa Subterranean Underground River on the reverse of the 500-peso bill and the Tubbataha Reef on the 1000-peso bill, and the incorrect coloring on the beak and feathers of the blue-naped parrot on the 500-peso bill.^[19][20] The scientific names of the animals featured on the reverse sides of all banknotes were incorrectly rendered as well,^[21] but these were eventually realized to be due to the color limitations of intaglio printing.^[22]

See also[link]

	Philippines portal
	Numismatics portal

• Economy of the Philippines

References[link]

External links[link]

• Virtual Museum of Spanish Philippine Coinage
• Philippine Guerrilla and Emergency Notes
• Philippine Coin News & Update
• Philippine Banknotes and Coins

v t e Philippine peso and coinage Topics Bangko Sentral ng Pilipinas Philippine real Philippine peso fuerte Japanese occupation note Emergency circulating notes English Series Pilipino Series Ang Bagong Lipunan Series New Design series Current series Coinage 1¢ 5¢ 10¢ 25¢ ₱1 ₱5 ₱10 Banknotes ₱20 ₱50 ₱100 ₱200 ₱500 ₱1000 Obsolete denominations Coinage 20¢ 50¢ ₱2 Banknotes Small currency denomination notes (English series) ₱1 ₱2 ₱5 ₱10

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Republic of the Philippines Republika ng Pilipinas
Flag Coat of arms
Motto: Maka-Diyos, Maka-Tao, Makakalikasan, at Makabansa[1] ("For God, People, Nature, and Country")
Anthem:  Lupang Hinirang
Capital		Manila[2] 14°35′N 121°0′E / 14.583°N 121°E / 14.583; 121
Largest city		Quezon City
Official language(s)		Filipino (Tagalog) English
Recognised regional languages		Bikol, Cebuano, Hiligaynon, Ilokano, Pampango, Pangasinense, Tagalog, Waray[3]
Optional languagesa		Spanish and Arabic[4]
National language		Filipino
Ethnic groups		30.1 % Visayans 28.1 % Tagalog 10.1 % Ilocano 9.1 % Moro 6.9 % Bicolano 3.3 % Kapampangan 1.75 % Pangasinense 1.30 % indigenous and non-indigenous.
Demonym		Filipino
Government		Unitary presidential constitutional republic
-	President	Benigno Aquino III (LP)
-	Vice President	Jejomar Binay (PDP-Laban)
-	Senate President	Juan Ponce Enrile (PMP)
-	House Speaker	Feliciano Belmonte, Jr. (LP)
-	Supreme Court Chief Justice	Vacant
Legislature		Congress
-	Upper house	Senate
-	Lower house	House of Representatives
Independence		from Spainb from United States
-	Established	April 27, 1565
-	Declared	June 12, 1898
-	Self-government	March 24, 1934
-	Recognized	July 4, 1946
-	Current constitution	February 2, 1987
Area
-	Land	299,764 km2 [3](73rd) 115,831 sq mi
-	Water (%)	0.61%[5] (inland waters)
Population
-	2010 census	92,337,852[6]
-	Density	308.0/km2 (43rd) 797.2/sq mi
GDP (PPP)		2011 estimate
-	Total	$390.408 billion[7]
-	Per capita	$4,073[7]
GDP (nominal)		2011 estimate
-	Total	$213.129 billion[7]
-	Per capita	$2,223[7]
Gini (2006)		45.8[5] (medium) (44th)
HDI (2011)		0.644[8] (medium) (112th)
Currency		Peso (Filipino: piso) ₱ (PHP)
Time zone		PST (UTC+8)
-	Summer (DST)	not observed (UTC+8)
Drives on the		right[9]
Internet TLD		.ph
Calling code		+63
1	^a The 1987 Philippine constitution specifies, "Spanish and Arabic shall be promoted on a voluntary and optional basis."
2	^b Philippine revolutionaries declared independence from Spain on June 12, 1898, but the Spanish claim of sovereignty was passed from Spain to the United States in the Treaty of Paris. This led to the Philippine–American War.
3	^c Rankings above were taken from associated Wikipedia pages as of October 2010 and may be based on data or data sources other than those appearing here.

The Philippines ⁱ/ˈfɪlɨpiːnz/ FI-lə-peenz (Filipino: Pilipinas [ˌpɪlɪˈpinɐs]), officially known as the Republic of the Philippines (Filipino: Republika ng Pilipinas) is a sovereign country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam. The Sulu Sea to the southwest lies between the country and the island of Borneo, and to the south the Celebes Sea separates it from other islands of Indonesia. It is bounded on the east by the Philippine Sea. Its location on the Pacific Ring of Fire and its tropical climate make the Philippines prone to earthquakes and typhoons but have also endowed the country with natural resources and made it one of the richest areas of biodiversity in the world. An archipelago comprising 7,107 islands, the Philippines is categorized broadly into three main geographical divisions: Luzon, Visayas, and Mindanao. Its capital city is Manila.

With an estimated population of about 98 million people^[10], the Philippines is the 7th most populated Asian country and the 12th most populated country in the world. An additional 12.5 million Filipinos live overseas.^[11] Multiple ethnicities and cultures are found throughout the islands. In prehistoric times, Negritos were some of the archipelago's earliest inhabitants. They were followed by successive waves of Austronesian peoples who brought with them influences from Malay, Hindu, and Islamic societies. Trade introduced Chinese cultural influences which remain to this day.

The Philippines has been part of several empires: the Spanish Empire during the age of Imperialism, the United States after the Spanish-American War of 1898, and the Japanese Empire during World War II, until the official Philippine independence in 1945.

The arrival of Ferdinand Magellan in 1521 marked the beginning of an era of Spanish interest and eventual colonization. In 1543, Spanish explorer Ruy López de Villalobos named the archipelago Las Islas Filipinas in honor of Philip II of Spain. Miguel López de Legazpi arrived in the Philippines in 1565 and consolidated Spanish rule in the islands, which remained a colony of Spain for more than 300 years.

Manila became the Asian hub of the Manila–Acapulco galleon fleet. Christianity was widely adopted. As the 19th century gave way to the 20th, there followed in quick succession the Philippine Revolution, which spawned the short-lived First Philippine Republic; the Spanish-American War; and the Philippine–American War. In the aftermath, the United States emerged as the dominant power. Aside from the period of Japanese occupation, the United States retained sovereignty over the islands until the end of World War II when the Philippines gained independence. The United States bequeathed to the Philippines the English language and a stronger affinity for Western culture. Since independence the Philippines has had an often tumultuous experience with democracy, with popular "people power" movements overthrowing a dictatorship in one instance but also underlining the institutional weaknesses of its constitutional republic in others.

Etymology[link]

The name Philippines is derived from that of King Philip II of Spain. Spanish explorer Ruy López de Villalobos during his expedition in 1542 named the islands of Leyte and Samar Felipinas after the then Prince of Asturias. Eventually the name Las Islas Filipinas would be used to cover all the islands of the archipelago. Before it became commonplace, other names such as Islas del Poniente (Islands of the West) and Magellan's name for the islands San Lázaro were also used by the Spanish to refer to the islands.^{[12][13][14][15][16]}

The official name of the Philippines has changed several times in the course of the country's history. During the Philippine Revolution, the Malolos Congress proclaimed the establishment of the República Filipina or the Philippine Republic. From the period of the Spanish-American War and the Philippine–American War until the Commonwealth period, American colonial authorities referred to the country as the Philippine Islands, a translation of the Spanish name. During the American period the name Philippines began to appear and it has since become the country's common name.^[17] Since independence the official name of the country has been the Republic of the Philippines.

History[link]

A page from the Boxer Codex. Left, is a general from the Rajahnate of Butuan and to the right is a princess of Tondo.

The metatarsal of Callao Man is reported to have been reliably dated by uranium-series dating to 67,000 years ago^[18] thereby replacing the Tabon Man of Palawan, carbon-dated to around 24,000 years ago^[19][20] as the oldest human remains found in the archipelago. Negritos were among the archipelago's earliest inhabitants but their appearance in the Philippines has not been reliably dated.^[21] There are several opposing theories regarding the origins of ancient Filipinos. F. Landa Jocano theorizes that the ancestors of the Filipinos evolved locally. Wilhelm Solheim's Island Origin Theory^[22] postulates that the peopling of the archipelago transpired via trade networks originating in the antediluvian Sundaland area around 48000 to 5000 BCE rather than by wide-scale migration. The Austronesian Expansion Theory states that Malayo-Polynesians coming from Taiwan began migrating to the Philippines around 4000 BCE, displacing earlier arrivals.^[23][24] Whatever the case, by 1000 BCE the inhabitants of the archipelago had developed into four kinds of social groups: hunter-gathering tribes, warrior societies, petty plutocracies, and maritime-centered harbor principalities.^[25]

Trade between the maritime-oriented peoples and other Asian countries during the subsequent period brought influences from Hinduism, Buddhism, and Islam. During this time there was no unifying political state encompassing the entire Philippine Archipelago. Instead, the islands were divided among competing thalassocracies ruled by various datus, rajahs, or sultans. These thalassocracies were composed of autonomous barangays which were independent to or allied with larger nations. Among them were the kingdoms of Maynila, Namayan, and Tondo, the confederation of Madyaas, the state of Ma-i, the rajahnates of Butuan and Cebu, and the sultanates of Maguindanao and Sulu.^{[26][27][28][29]} Some of these societies were part of the Malayan empires of Srivijaya, Majapahit, and Brunei.^[30][31] Islam was brought to the Philippines by traders and proselytizers from Malaysia and Indonesia.^[32] By the 15th century, Islam was established in the Sulu Archipelago and by 1565 had reached Mindanao, the Visayas, and Luzon.^[33]

Ferdinand Magellan, the first European colonizer who claimed the Philippines for Spain

In 1521, Portuguese explorer Ferdinand Magellan arrived in the Philippines and claimed the islands for Spain.^[34] Colonization began when Spanish explorer Miguel López de Legazpi arrived from Mexico in 1565 and formed the first European settlements in Cebu. In 1571, after dealing with the local royal families in the wake of the Tondo Conspiracy and defeating the Chinese pirate warlord Limahong, the Spanish established Manila as the capital of the Spanish East Indies.^[35][36]

Spanish rule contributed significantly to bringing political unity to the archipelago. From 1565 to 1821, the Philippines was governed as a territory of the Viceroyalty of New Spain and then was administered directly from Madrid after the Mexican War of Independence. The Manila galleons linking Manila to Acapulco traveled once or twice a year between the 16th and 19th centuries. Trade introduced foods such as corn, tomatoes, potatoes, chili peppers, and pineapples from the Americas.^[36] Roman Catholic missionaries converted most of the lowland inhabitants to Christianity and founded schools, a university, and hospitals. While a Spanish decree introduced free public schooling in 1863, efforts in mass public education mainly came to fruition during the American period.^[37]

During its rule, the Spanish fought off various indigenous revolts and several external colonial challenges from Chinese pirates, the Dutch, and the Portuguese. In an extension of the fighting of the Seven Years' War, British forces under the command of Brigadier General William Draper and Rear-Admiral Samuel Cornish briefly occupied Manila. They found local allies like Diego and Gabriela Silang who took the opportunity to lead a revolt, but Spanish rule was eventually restored following the 1763 Treaty of Paris.^[32][38][39]

In the 19th century, Philippine ports were opened to world trade and shifts were occurring within Philippine society. Many Spaniards born in the Philippines (criollos) and those of mixed ancestry (mestizos) became wealthy. The influx of Spanish and Latino settlers secularized churches and opened up government positions traditionally held by Spaniards born in the Iberian Peninsula (peninsulares). The ideals of revolution also began to spread through the islands. Criollo dissatisfaction resulted in the revolt in Cavite El Viejo in 1872 that was a precursor to the Philippine Revolution.^{[32][40][41][42][43]}

José Rizal, Marcelo del Pilar, and Mariano Ponce: leaders of the Propaganda Movement

Revolutionary sentiments were stoked in 1872 after three priests—Mariano Gómez, José Burgos, and Jacinto Zamora (collectively known as Gomburza)—were accused of sedition by colonial authorities and executed.^[40][41] This would inspire a propaganda movement in Spain, organized by Marcelo H. del Pilar, José Rizal, and Mariano Ponce, lobbying for political reforms in the Philippines. Rizal was eventually executed on December 30, 1896, on charges of rebellion.^[44] As attempts at reform were meeting with resistance, Andrés Bonifacio in 1892 established the secret society called the Katipunan, a society along the lines of the freemasons, which sought independence from Spain through armed revolt.^[42] Bonifacio and the Katipunan started the Philippine Revolution in 1896. A faction of the Katipunan, the Magdalo of Cavite province, eventually came to challenge Bonifacio's position as the leader of the revolution and Emilio Aguinaldo took over. In 1898, the Spanish-American War began in Cuba and reached the Philippines. Aguinaldo declared Philippine independence from Spain in Kawit, Cavite on June 12, 1898 and the First Philippine Republic was established the following year. Meanwhile, the islands were ceded by Spain to the United States for US$20 million in the 1898 Treaty of Paris.^[45] As it became increasingly clear the United States would not recognize the First Philippine Republic, the Philippine–American War broke out. It ended with American control over the islands which were then administered as an insular area.^[46]

In 1935, the Philippines was granted Commonwealth status. Plans for independence over the next decade were interrupted by World War II when the Japanese Empire invaded and established a puppet government. Many atrocities and war crimes were committed during the war such as the Bataan Death March and the Manila massacre that culminated during the Battle of Manila.^[47] Allied troops defeated the Japanese in 1945. By the end of the war it is estimated over a million Filipinos had died.^[48]

On July 4, 1946, the Philippines attained its independence.^[5] Immediately after World War II, the Philippines faced a number of challenges. The country had to be rebuilt from the ravages of war. It also had to come to terms with Japanese collaborators. Meanwhile, disgruntled remnants of the Hukbalahap communist rebel army that had previously fought against and resisted the Japanese continued to roam the rural regions. This threat to the government was dealt with by Secretary of National Defense and later President Ramon Magsaysay, but sporadic cases of communist insurgency continued to flare up long afterward.^[49][50] In 1965, Ferdinand Marcos was elected president. Nearing the end of his second term and constitutionally barred from seeking a third, he declared martial law on September 21, 1972. By using political divisions, the tension of the Cold War, and the specter of communist rebellion and Islamic insurgency as justifications, he governed by decree.^[51]

A statue of the Virgin Mary built at the EDSA Shrine after the People Power Revolution

On August 21, 1983, Marcos' chief rival opposition leader Benigno "Ninoy" Aquino, Jr. ignored warnings and returned from exile in the United States. He was assassinated as he was taken off the plane at the Manila International Airport (now called the Ninoy Aquino International Airport in his memory). With political pressure building, Marcos eventually called for snap presidential elections in 1986.^[49] Corazon Aquino, Benigno's widow, was persuaded to become the presidential candidate and standard bearer of the opposition. The elections were widely considered rigged when Marcos was proclaimed the winner. This led to the People Power Revolution, instigated when two long-time Marcos allies—Armed Forces of the Philippines Vice Chief-of-Staff Fidel V. Ramos and Secretary of National Defense Juan Ponce Enrile—resigned and barricaded themselves in Camp Aguinaldo and Camp Crame. Exhorted by the Cardinal Archbishop of Manila Jaime Sin, people gathered in support of the rebel leaders and protested on Epifanio de los Santos Avenue (EDSA). In the face of mass protests and military defections, Marcos and his allies fled to Hawaii and into exile. Corazon Aquino was recognized as president.^[50][52]

The return of democracy and government reforms after the events of 1986 were hampered by national debt, government corruption, coup attempts, a persistent communist insurgency, and Islamic separatists. The economy improved during the administration of Fidel V. Ramos, who was elected president in 1992.^[53] However, the economic improvements were negated with the onset of the East Asian financial crisis in 1997. In 2001, amid charges of corruption and a stalled impeachment process, Ramos' successor Joseph Estrada was ousted from the presidency by the 2001 EDSA Revolution and replaced by Gloria Macapagal-Arroyo. Her administration that lasted 9 years was tied with graft and corruption and numerous political scandals.^[54][55][56] As a result of the May 2010 elections, Benigno "Noynoy" Aquino III was elected president.

Politics and government[link]

Benigno S. Aquino III, the current and 15th president of the Republic of the Philippines

The Philippines has a democratic government.^[57] It is a constitutional republic with a presidential system. It is governed as a unitary state with the exception of the Autonomous Region in Muslim Mindanao which is largely free from the national government. The President functions as both head of state and head of government and is the commander-in-chief of the armed forces. The president is elected by popular vote for a single six-year term, during which he or she appoints and presides over the cabinet.^[3]

The bicameral Congress is composed of the Senate, serving as the upper house, with members elected to a six-year term, and the House of Representatives, serving as the lower house, with members elected to a three-year term. The senators are elected at large while the representatives are elected from both legislative districts and through sectoral representation.^[3]

The judicial power is vested in the Supreme Court, composed of a Chief Justice as its presiding officer and fourteen associate justices, all of whom are appointed by the President from nominations submitted by the Judicial and Bar Council.^[3]

There have been attempts to change the government to a federal, unicameral, or parliamentary government since the Ramos administration.^[58][59]

Security and defense[link]

Philippine defense is handled by the Armed Forces of the Philippines and is composed of three branches: the Air Force, the Army, and the Navy (including the Marine Corps). Civilian security is handled by Philippine National Police under the Department of the Interior and Local Government (DILG).

In the Autonomous Region in Muslim Mindanao, the largest separatist organization, the Moro National Liberation Front, is now engaging the government politically. Other more militant groups like the Moro Islamic Liberation Front, the communist New People's Army, and the Abu Sayyaf still roam the provinces, but their presence has decreased in recent years due to successful security provided by the Philippine government.^[60][61]

The Philippines has been an ally of the United States since World War II. A mutual defense treaty between the two countries was signed in 1951. The Philippines supported American policies during the Cold War and participated in the Korean and Vietnam wars. It was a member of the now dissolved SEATO, a group that was intended to serve a role similar to NATO and that included Australia, France, New Zealand, Pakistan, Thailand, the United Kingdom, and the United States.^[62] After the start of the War on Terror, the Philippines was part of the coalition that gave support to the United States in Iraq.^[63] The United States designated the country a major non-NATO ally. The Philippines is currently working to end its domestic insurgency with help from the United States.

International relations[link]

The Philippine Embassy in Washington D.C., United States.

The Philippines' international relations are based on trade with other nations and the well-being of the 11 million overseas Filipinos living outside the country.^[64] As a founding and active member of the United Nations, the Philippines has been elected several times into the Security Council. Carlos P. Romulo was a former President of the United Nations General Assembly. The country is an active participant in the Human Rights Council as well as in peacekeeping missions, particularly in East Timor.^{[65][66][67][68]}

In addition to membership in the United Nations, the country is also a founding and active member of ASEAN (Association of Southeast Asian Nations), an organization designed to strengthen relations and promote economic and cultural growth among states in the Southeast Asian region.^[69] It has hosted several summits and is an active contributor to the direction and policies of the bloc.^[70] The relations it currently enjoys with other Southeast Asian states are in contrast to its relations with them before the 1970s when it was at war with Vietnam and was heavily disputing Sabah with Malaysia; although, disagreements continue to exist due to the Spratly Islands.^[71]

The Philippines values its relations with the United States.^[64] It supported the United States during the Cold War and the War on Terror and is a major non-NATO ally. Despite this history of goodwill, controversies related to the presence of the now former U.S. military bases in Subic Bay and Clark and the current Visiting Forces Agreement have flared up from time to time.^[64] Japan, the biggest contributor of official development assistance to the country,^[72] is thought of as a friend. Although historical tensions still exist on issues such as the plight of comfort women much of the animosity inspired by memories of World War II have faded.^[73]

Relations with other nations are generally positive. Shared democratic values ease relations with Western and European countries while similar economic concerns help in relations with other developing countries. Historical ties and cultural similarities also serve as a bridge in relations with Spain and Latin America. Despite issues such as domestic abuse and war affecting overseas Filipino workers and obstacles posed by Islamic insurgency in Mindanao, relations with Middle Eastern countries (including Egypt, Iran, Iraq, Libya, Saudi Arabia, and the United Arab Emirates) are friendly as seen in the continuous employment of more than two million overseas Filipinos living there.

With communism no longer the threat it once was, once hostile relations in the 1950s between the Philippines and the People's Republic of China have improved greatly. Issues involving Taiwan, the Spratly Islands, and concerns of expanding Chinese influence, however, still encourage a degree of carefulness.^[73] Recent foreign policy has been mostly about economic relations with its Southeast Asian and Asia-Pacific neighbors.^[64]

The Philippines is a member of the East Asia Summit (EAS), the Asia-Pacific Economic Cooperation (APEC), the Latin Union, the Group of 24, and the Non-Aligned Movement.^[3] It is also seeking to strengthen relations with Islamic countries by campaigning for observer status in the Organisation of Islamic Cooperation.^[74][75]

Administrative divisions[link]

The Philippines is divided into three island groups: Luzon, Visayas, and Mindanao. As of March 2010^[update], these were divided into 17 regions, 80 provinces, 138 cities, 1,496 municipalities, and 42,025 barangays.^[76] In addition, Section 2 of Republic Act No. 5446 asserts that the definition of the territorial sea around the Philippine archipelago does not affect the claim over Sabah.^[77]

Geography[link]

The Philippines is an archipelago of 7,107 islands^[3] with a total land area, including inland bodies of water, of approximately 300,000 square kilometers (120,000 sq mi). Its 36,289 kilometers (22,549 mi) of coastline makes it the country with the 5th longest coastline in the world.^[3][78] It is located between 116° 40', and 126° 34' E. longitude and 4° 40' and 21° 10' N. latitude and is bordered by the Philippine Sea to the east, the South China Sea to the west, and the Celebes Sea to the south. The island of Borneo is located a few hundred kilometers southwest and Taiwan is located directly to the north. The Moluccas and Sulawesi are located to the south-southwest and Palau is located to the east of the islands.^[3]

Most of the mountainous islands are covered in tropical rainforest and volcanic in origin. The highest mountain is Mount Apo. It measures up to 2,954 meters (9,692 feet) above sea level and is located on the island of Mindanao. The Galathea Depth in the Philippine Trench is the deepest point in the country and the third deepest in the world. The trench is located in the Philippine Sea. The longest river is the Cagayan River in northern Luzon. Manila Bay, upon the shore of which the capital city of Manila lies, is connected to Laguna de Bay, the largest lake in the Philippines, by the Pasig River. Subic Bay, the Davao Gulf, and the Moro Gulf are other important bays. The San Juanico Strait separates the islands of Samar and Leyte but it is traversed by the San Juanico Bridge.^[79]

Ancient Filipinos utilized terrace farming to grow crops in the steep mountainous regions of northern Philippines.

Situated on the western fringes of the Pacific Ring of Fire, the Philippines experiences frequent seismic and volcanic activity. The Benham Plateau to the east in the Philippine Sea is an undersea region active in tectonic subduction.^[80] Around 20 earthquakes are registered daily, though most are too weak to be felt. The last major earthquake was the 1990 Luzon earthquake.^[81] There are many active volcanoes such as the Mayon Volcano, Mount Pinatubo, and Taal Volcano. The eruption of Mount Pinatubo in June 1991 produced the second largest terrestrial eruption of the 20th century.^[82] Not all notable geographic features are so violent or destructive. A more serene legacy of the geological disturbances is the Puerto Princesa Subterranean River. The white sand beaches that make Boracay a popular vacation getaway are made of coral remnants.

Due to the volcanic nature of the islands, mineral deposits are abundant. The country is estimated to have the second-largest gold deposits after South Africa and one of the largest copper deposits in the world.^[83] It is also rich in nickel, chromite, and zinc. Despite this, poor management, high population density, and environmental consciousness have resulted in these mineral resources remaining largely untapped.^[83] Geothermal energy, however, is another product of volcanic activity that the country has harnessed more successfully. The Philippines is the world's second-biggest geothermal producer behind the United States, with 18% of the country's electricity needs being met by geothermal power.^[84]

Flora and fauna[link]

The Philippines' rainforests and its extensive coastlines make it home to a diverse range of birds, plants, animals, and sea creatures.^[85] It is one of the ten most biologically mega-diverse countries and is at or near the top in terms of biodiversity per unit area.^[86][87][88] Around 1,100 land vertebrate species can be found in the Philippines including over 100 mammal species and 170 bird species not thought to exist elsewhere.^[89] Endemic species include the tamaraw of Mindoro, the Visayan spotted deer, the Philippine mouse deer, the Visayan warty pig, the Philippine flying lemur, and several species of bats.^[90]

Philippine tarsier (Tarsius syrichta), one of the smallest primates.

The Philippines lacks large predators, with the exception of snakes, such as pythons and cobras, and birds of prey, such as the national bird, known as the Philippine eagle.^[91] Other native animals include the palm civet cat, the dugong, and the Philippine tarsier associated with Bohol. With an estimated 13,500 plant species in the country, 3,200 of which are unique to the islands,^[89] Philippine rainforests boast an array of flora, including many rare types of orchids and rafflesia.^[92][93] The narra is considered as the most important type of hardwood.^[94]

Philippine maritime waters encompass as much as 2.2 million square kilometers (850,000 square miles) producing unique and diverse marine life and is an important part of the Coral Triangle.^[77] There are 2,400 fish species and over 500 species of coral.^[85][89] The Apo Reef is the country's largest contiguous coral reef system and the second-largest in the world.^[95] Philippine waters also sustain the cultivation of pearls, crabs, and seaweeds.^[85][96]

Deforestation, often the result of illegal logging, is an acute problem in the Philippines. Forest cover declined from 70% of the country's total land area in 1900 to about 18.3% in 1999.^[97][98] Many species are endangered and scientists say that Southeast Asia, which the Philippines is part of, faces a catastrophic extinction rate of 20% by the end of the century.^[99] According to Conservation International, "the country is one of the few nations that is, in its entirety, both a hotspot and a megadiversity country, placing it among the top priority hotspots for global conservation."^[92]

Climate[link]

Typhoon Megi over the Philippines.

The Philippines has a tropical maritime climate and is usually hot and humid. There are three seasons: tag-init or tag-araw, the hot dry season or summer from March to May; tag-ulan, the rainy season from June to November; and tag-lamig, the cool dry season from December to February. The southwest monsoon (from May to October) is known as the Habagat, and the dry winds of the northeast monsoon (from November to April), the Amihan.^[100] Temperatures usually range from 21°C (70°F) to 32°C (90°F) although it can get cooler or hotter depending on the season. The coolest month is January; the warmest is May.^[3][101]

The average yearly temperature is around 26.6°C (79.88°F).^[100] In considering temperature, location in terms of latitude and longitude is not a significant factor. Whether in the extreme north, south, east, or west of the country, temperatures at sea level tend to be in the same range. Altitude usually has more of an impact. The average annual temperature of Baguio at an elevation of 1,500 meters (4,900 feet) above sea level is 18.3°C (64.9°F), making it a popular destination during hot summers.^[100] Likewise, Tagaytay is a favored retreat.

Sitting astride the typhoon belt, most of the islands experience annual torrential rains and thunderstorms from July to October,^[102] with around nineteen typhoons entering the Philippine area of responsibility in a typical year and eight or nine making landfall.^{[103][104][105]} Annual rainfall measures as much as 5,000 millimeters (200 inches) in the mountainous east coast section but less than 1,000 millimeters (39 inches) in some of the sheltered valleys.^[102] The wettest known tropical cyclone to impact the archipelago was the July 1911 cyclone, which dropped over 1,168 millimetres (46.0 in) of rainfall within a 24-hour period in Baguio City.^[106] Bagyo is the local term for a tropical cyclone in the Philippines.^[106]

Economy[link]

The national economy of the Philippines is the 45^th largest in the world, with an estimated 2011 gross domestic product (nominal) of $216 billion.^[7] Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits.^[5] Major trading partners include the United States, Japan, China, Singapore, South Korea, the Netherlands, Hong Kong, Germany, Taiwan, and Thailand.^[5] Its unit of currency is the Philippine peso (₱ or PHP).

Makati in Metro Manila, the country's financial center.

A newly industrialized country, the Philippine economy has been transitioning from one based on agriculture to one based more on services and manufacturing. Of the country's total labor force of around 38.1 million,^[5] the agricultural sector employs close to 32% but contributes to only about 13.8% of GDP. The industrial sector employs around 13.7% of the workforce and accounts for 30% of GDP. Meanwhile the 46.5% of workers involved in the services sector are responsible for 56.2% of GDP.^[107][108]

The unemployment rate as of July 2009 stands at around 7.6% and due to the global economic slowdown inflation as of September 2009 reads 0.70%.^[108] Gross international reserves as of July 2011 are $75.174 billion.^[109] In 2004, public debt as a percentage of GDP was estimated to be 74.2%; in 2008, 56.9%.^[5] Gross external debt has risen to $66.27 billion.^[5] The country is a net importer.^[108]

After World War II, the country was for a time regarded as the second wealthiest in East Asia, next only to Japan.^{[64][110][111]} However, by the 1960s its economic performance started being overtaken. The economy stagnated under the dictatorship of Ferdinand Marcos as the regime spawned economic mismanagement and political volatility.^[64][111] The country suffered from slow economic growth and bouts of economic recession. Only in the 1990s with a program of economic liberalization did the economy begin to recover.^[64][111]

The 1997 Asian Financial Crisis affected the economy, resulting in a lingering decline of the value of the peso and falls in the stock market. But the extent it was affected initially was not as severe as that of some of its Asian neighbors. This was largely due to the fiscal conservatism of the government, partly as a result of decades of monitoring and fiscal supervision from the International Monetary Fund (IMF), in comparison to the massive spending of its neighbors on the rapid acceleration of economic growth.^[53] There have been signs of progress since. In 2004, the economy experienced 6.4% GDP growth and 7.1% in 2007, its fastest pace of growth in three decades.^{[7][112][113]} Yet average annual GDP growth per capita for the period 1966–2007 still stands at 1.45% in comparison to an average of 5.96% for the East Asia and the Pacific region as a whole and the daily income for 45% of the population of the Philippines remains less than $2.^[114][115] Despite enjoying sustained economic growth during the first decade of the 21st century, as of 2010^[update], the country's economy remains smaller than those of its Southeast Asian neighbors Indonesia, Thailand, Malaysia, and Singapore in terms of GDP and GDP per capita (nominal).^[116]

Other incongruities and challenges exist. The economy is heavily reliant on remittances which surpass foreign direct investment as a source of foreign currency. Regional development is uneven with Luzon—Metro Manila in particular—gaining most of the new economic growth at the expense of the other regions,^[117] although the government has taken steps to distribute economic growth by promoting investment in other areas of the country. Despite constraints, service industries such as tourism and business process outsourcing have been identified as areas with some of the best opportunities for growth for the country.^[108][118] Goldman Sachs includes the country in its list of the "Next Eleven" economies.^[119] But China and India have emerged as major economic competitors.^[120]

The Philippines is a member of the World Bank, the International Monetary Fund, the World Trade Organization (WTO), the Asian Development Bank which is headquartered in Mandaluyong City, the Colombo Plan, and the G-77 among other groups and institutions.^[5]

Demographics[link]

Ethnic groups per province

Population in Philippines increased from 1990 to 2008 with 28 million with 45% growth.^[121] The first official census in the Philippines was carried out in 1877 and recorded a population of 5,567,685.^[122] As of 2011, the Philippines has become the world's 12th most populous nation, with a population of over 94 million. It is estimated that half of the population resides on the island of Luzon. The population growth rate between 1995 to 2000 of 3.21% decreased to an estimated 1.95% for the 2005 to 2010 period, but remains a contentious issue.^[123][124] The population's median age is 22.7 years with 60.9% aged from 15 to 64 years old.^[5] Life expectancy at birth is 71.94 years, 75.03 years for females and 68.99 years for males.^[125]

There are about 11 million Filipinos outside the Philippines.^[126] Since the liberalization of United States immigration laws in 1965, the number of people in the United States having Filipino ancestry has grown substantially. In 2007 there were an estimated 3.1 million.^[127][128] According to the United States Census Bureau, immigrants from the Philippines made up the second largest group after Mexico that sought family reunification.^[129] Some two million Filipinos work in the Middle East, with nearly a million in Saudi Arabia alone.^[130]

Ethnicity[link]

According to the 2000 census 28.1% of Filipinos are Tagalog, 13.1% Cebuano, 9% Ilocano, 7.6% Bisaya/Binisaya, 7.5% Hiligaynon, 6% Bikol, 3.4% Waray, and 25.3% are classified as other.^[5][131] These general headings can be broken down further to yield more distinct non-tribal groups like the Moro, the Kapampangan, the Pangasinense, the Ibanag, and the Ivatan.^[132] There are also indigenous peoples like the Igorot, the Lumad, the Mangyan, the Bajau, and the tribes of Palawan.^[133] Negritos, such as the Aeta and the Ati, are considered among the earliest inhabitants of the islands.^[134]

Filipinos generally belong to several Asian ethnic groups classified linguistically as part of the Austronesian or Malayo-Polynesian speaking people.^[133] It's believed that thousands of years ago Taiwanese aborigines migrated to the Philippines from Taiwan, bringing with them knowledge of agriculture and ocean-sailing, and displacing the earlier Negrito groups of the islands.^[135]

Eventually Chinese, Spanish, and American arrivals intermarried with the various indigenous ethnic groups that had evolved.^[135] Their descendants are known as mestizos.^[136] Chinese Filipinos number about two million.^[137] Other migrant ethnic groups who have settled in the country from elsewhere include Arabs, Britons, other Europeans, Indonesians, Japanese, Koreans, and South Asians.