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State of the Philippines’ sinking economy before and after the COVID-19 pandemic
The Philippine National Debt
The Philippine National Debt
The national debt of the Philippines has deep historical roots, influenced by various political and economic circumstances. Initially, borrowing was a tool for development and economic expansion, but over time, economic crises, political mismanagement, and global economic conditions contributed to the debt ballooning into a major challenge for the nation.
Where did it start?
Where did it start?
The Philippines’ national debt dates back to the post colonial era when the country began to establish its economic foundations. However, the debt started to grow significantly during the presidency of Ferdinand Marcos in the 1970s and 1980s. During his tenure, the Philippines borrowed heavily from international lenders, including the World Bank and the International Monetary Fund (IMF), for large-scale infrastructure projects and economic development initiatives (Toussaint, 2024). These borrowings were partly intended to modernize the country’s economy, but the influx of foreign loans was mismanaged, leading to corruption and inefficiencies. Consequently, instead of fostering long-term economic stability, these loans contributed to the country’s burgeoning debt crisis. By the time the Marcos administration ended, the Philippines was left with a significant debt burden, the consequences of which persist for decades (Tadem, 2018).
Overview
Overview
In this section, the history of the country's debt as well as its timeline is explored.
The section discusses the various factors that played into the increase of the national debt.
In here, the COVID-19 Pandemic is analyzed to determine its undeniable effects on economies worldwide, focusing on the Philippines.
The possible solutions influenced by the previous administrations to tackle the national debt as proposed by the group.
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