ADMINISTRATION OF

DIOSDADO MACAPAGAL

1961 - 1965

WHO IS DIOSDADO

MACAPAGAL?

DIOSDADO MACAPAGAL He was born on September 28,1910 in

Lubao Pampanga, the second of four children in a poor family.

His father Urbano Macapagal was a poet who wrote in the local Pampangan Language. His mother was a school teacher who taught catechism. He was a distant descendant(successor) of Don Juan Macapagal a prince of Tondo, who was a great-grandson of the last reigning Rajah of Selurong, Rajah Lakandula.

His family earned extra income by raising pigs and accommodating boarders in their home. Due to his roots of poverty he was then called the “Poor Boy from Lubao”.

He was married to his first wife Purita De la Rosa in 1938 they had two children namely Cielo and Arturo until Purita died in 1943.

In 1946 he married Dr. Evangelina Maraeg, with whom he had two children, Gloria Macapagal-Arroyo and Diosdado Macapagal Jr.

WHAT IS DIOSDADO’S

EDUCATIONAL BACKGROUND

?

Diosdado Macapagal excelled in his studies at local public schools, graduating VALEDICTORIAN at Lubao Elementary School, and SALUTATORIAN at Pampanga Highschool.

He finished his pre-law course at the University of the Philippines, then enrolled in Philippine Law School in 1932, studying on a scholarship and supporting himself with a part-time job. While in law he gained his prominence(status) as an orator and debater. However, he was forced to quit schooling after 2 years due to lack of money.

Returning to Pampanga, he joined his friend, Rogelio Dela Rosa in producing and starring in Tagalog Operettas patterned after Spanish Zarzuelas.

Macapagal raised enough money to continue his studies at the University of Santo Thomas, the secretary of the interior that time, Honorio Ventura financed his education.

After receiving his Bachelor of Laws degree in 1936, he was admitted to the bar, topping the 1936 bar examination with a score of 89.95%.

Earn a Master of Laws degree in 1941, a Doctor of Civil Law degree in 1947, and a PhD in Economics in 1957.[5]

THE PHILIPPINES DURING

DIOSDADO MACAPAGAL’S PRESIDENCY

CONDITION OF THE PHILIPPINES There were many uprisings against the

Aquino administration There was a widespread of poverty Graft and corruption throughout the

country Continues to undergo the economic

controls that had been in operation since 1948

PROMISES DURING THE ELECTIONS Macapagal promised a program for the socio-

economic aspect of society wherein he’d return free and private enterprises wherein economic developments would be placed in the hands of private entrepreneurs wherein the government would have minimal control over.

He declared that he would be the president of both the rich and the poor. He promises to erase that line between the wealthy and the unfortunate. Mostly by elevating the poor’s status to have a more copious life.“I shall be president not only of the rich but more so of the poor. We must help bridge the wide gap between the poor man and the man of wealth, not by pulling down the rich to his level as Communism desires, but by raising the poor towards the more abundant life.”

The Malacanang Palace is to be opened to the public.

Restoration of morality to the public by alleviating(improving) the stature of the masses.

Promised to end corruption, and establish anti-terrorism.

LAWS AND PROGRAMS Opened Malacanang to the Public; however it didn’t

last long because people started to only loft around.

Dismissed Corruption in the government when the official couldn’t justify his sudden acquisition(attainment) of wealth.

Changed the Date of the Philippine Independence from June 12 to July 4.

Agricultural Land Reform Code of 1963Abolished share tendency on rice and corn farmlands and establishment of a leasehold system where farmers would pay rentals to landlords instead of harvests.

PRIMARY PROBLEMS Low living standards of the masses Lack of economic stability Unemployment Devaluation of the Philippine Peso Foreigners could now buy and control

more local businesses easily because of the exchange rate. They were richer than the Philippines.

SHORTCOMING OF THE LAWS He prevented his government from

“tracking down” the sources of corruption by firing the officers alleged with corruption and deporting Stonehill. This way, he got in the way of one of his promises.

He failed to solve major social and economical problems.

Macapagal wasn’t able to effectively maximize the programs for the people to alleviate(lessen) poverty

ISSUES AND CONTROVERSIES Graft and Corruption (Stonehill Scandal) Rise in Consumer Goods Prices

1962 STONEHILL SCANDAL Harry Stonehill was a very successful American

businessman in the Philippines. Justice Secretary Jose W. Diokno was investigating him for alleged corrupt practices when Diokno discovered that Stonehill had a “black book” listing top Philippine Government officials whom he had bribed. The list of names reportedly included President Macapagal, his predeccesor President Garcia, and much of the ruling Liberal Party and the opposition Nacionalista Party. Macapagal fired Secretary Diokno. When it seemed imminent that Stonehill would be forced to testify, with the potential scandal resulting in an impeachment of the president, Macapagal had Stonehill deported so he couldn’t testify.

ECONOMIC LIBERALIZATION

Under pressure from the US Government and international financial institutions, Macapagal reversed Garcia-era economic policies with economic liberalization policies:

Lifting of foreign exchange controls: Under Garcia, foreign (mostly American) companies in the Philippines had been prohibited from taking their profits back to the US. Macapagal lifted the controls, allowing foreign businesses to send their profits home. This resulted in a shortage of foreign exchange. The government was then forced to seek foreign loans to avoid a exchange crisis.

Floating Peso: Under Garcia, the Peso had a fixed exchange rate, to keep low prices for domestically-produced goods and food. Macapagal allowed the Peso to “float” on currency exchange markets, causing a nearly-100% devaluation of the Peso, leading to increased consumer prices, hurting Filipino consumers.

Lifting of import controls: Under Garcia, foreign imports were limited, to encourage domestic production by Philippine businesses. Macapagal lifted these limits, with the result that foreign imports flooded in, hurting domestic industries and agriculture. But US businesses were happy.

SUMMARY OF THE GOVERNANCE Diosdado Macapagal was chosen by the people

of the Philippines to be their president in 1961 and his term ended in 1965. Considered to be incorruptible by most during the time, he may have served as an inspiration to his people. That’s why he included the need for the country to have a good grasp of good morals and ethics. He also wanted to end corruption, poverty, homelessness, and other various problems that plagued the common man. During his entire term however, none of what he promised or wanted was really achieved. This makes him look quite bad as a leader of the country contrary to what he was supposed to be seen as. He’s the type of person who’s more on talk rather than action.

The devaluation of the Philippine Peso started during his term which makes him, in the eyes of some, the root of a lot of today’s problems in the country. Other than that, he returned free trade and free enterprise to the country which crushed local goods and businesses which continue to suffer up to today. When it came to his promises to the common man, the farmers in particular. He was unable to give them the land they needed because aside from having no specific time table as to when they were to receive the land, the government didn’t have the money to purchase the land from the hacienderos which was to be distributed to the farmers in the first place. Basically, he made really good speeches and the country didn’t “die” when he was in power but he wasn’t able to do anything great that problems were removed.

His economic policy was called decontrol, which described the administration of Macapagal. It was called decontrol because he allowed the foreign products to enter freely in our country.

He also established the Land Bank of the Philippines.

Unfortunately, his term and his leadership are now seen as either unproductive to the country or were the root causes of the continuing fall of the Philippine economy today. That is why he is rated just high enough to pass but not high enough to be considered a good president.