The Philippines
East or West?
The Philippines is a nation of contrasts struggling to form a national identity. It is a collectivist society, yet its institutions are primarily Western. It is rich in human and natural resources, yet it has a stagnating economy. Its population is well educated and possesses a high degree of literacy, yet there are large pockets of poverty. It is a working democracy, yet political and economic power is vested in the hands of a few. Unlike its adjacent Asian neighbors, Christianity is its principal religion, and English is the language of choice in business, government, and schools. (In terms of population, the Philippines is the third largest English-speaking nation in the world, after the United States and England.)
As a collectivist society, despite its Western ways, Filipinos value group goals and long term relationships more highly than personal goals and short term results. They also emphasize harmony, politeness, and modesty more highly than their Western counterparts. Hierarchical positions are closely observed, and older people are accorded special deference.
[Tip — Business Style: Do not assume that Western business styles work well in the Philippines. In communications, make an effort to build warm personal relationships with your Filipino counterparts. Also, do not interpret a Filipino's politeness as acceptance of a business proposal. Tactfully press for a clear understanding of a positive response before you celebrate.]
The Philippines' early identity was as that of a Spanish colony. Its first contact with the Western world came in 1521 with the arrival of Ferdinand Magellan, the Portuguese navigator. (Magellan was killed in the Philippines by the warrior king Lapu-Lapu.) The Spanish later colonized the islands, exerting largely political and religious influences. Philippine trade developed primarily with China and Mexico. Trade was ultimately dominated by Chinese merchants in the 19th century.
For much of the Philippines' modern history, its national identity has been that of an American protectorate. Except for four years of Japanese occupation during World War II, Americans ruled the Philippines from 1898 — when the Spanish ceded the Philippines to the United States following the Spanish-American war — until 1946 when the Philippines became independent following liberation from the Japanese by the Americans. The two countries maintained close ties, in part as a result of American regional military strategies. In pursuit of these strategies, the United States collaborated with the regime Ferdinand Marcos, who became president of the Philippines in 1965 and gradually accumulated dictatorial powers. Marcos declared martial law in 1972, to deal with increasing guerrilla activities, prior to the expiration of his second term. Following a long period of political turmoil, Marcos was ultimately removed from office in 1986 with the election of president Corazon Aquino.
Close ties between the United States and the Philippines continued throughout this period. In 1991, however, the Philippines denied the United States further tenure of the U.S. military bases at Subic Bay and Clark Air Base, and placed a substantial chill on its relations with the United States. Since that time, the Philippines has sought to redirect its relationship with the United States as one based on equal partnership as sovereign nations and on economic cooperation. The United States continues to be the Philippines' largest trading partner and its major source of foreign investment.
Filipinos are not unlike Canadians in feeling smothered by the United States. However, in contrast to the Canadians, who tend to view the United States as a noisy, overbearing neighbor, Filipinos see the United States as a domineering parent or sibling. While the relationship is warm, it is often resentful, and always intense. On the other hand, relations with Japan, Taiwan, South Korea, and other Asian nations are ever-improving. Japan is the Philippines' second largest trading partner (after the United States) and its largest provider of development assistance. Japanese, Taiwanese, and South Korean companies are substantial investors in new ventures there.
[Tip — National Sensitivities: Americans should be especially sensitive to the ambivalence of Filipinos' feelings toward the United States. Others should avoid assuming that references to the United States, in communications with Filipinos, are positive or negative. They could be either, but probably they are not neutral. Approach such references cautiously.]
The Philippines has much potential. It is a large island nation well positioned in the Asia-Pacific region, lying just north of the equator between the South China Sea and the Pacific Ocean. It has over 7,000 islands, with the eleven largest having 94 percent of the country's land area. Luzon, to the north, where Manila is located, is the largest island; Mindanao, to the south, is the next largest. The country's 89 million people are mostly of Malay stock, and there are many ethnic and cultural sub-groups. Seventy percent of the population lives in rural areas.
On the debit side, political unrest, official corruption, and the vested interests of powerful landed gentries dampen moves at economic reform, impede trade liberalization, and discourage foreign investment. The Philippines is also energy-dependent, with only about 40 percent of its recent energy requirements being domestically produced. In addition, its infrastructure, such as its electrical power capacity and its system of roads, is either inadequate to meet a rapid expansion of the economy, or badly in need of repair.
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