Social and Economic Influences on Violence in Postcolonial Philippines

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1 Leiden University

Faculty of Humanities

Master Thesis

Social and Economic Influences on Violence in Postcolonial Philippines

Submitted by Joost T.W. Jonkman MA in International Relations; Global Political Economy

Supervisor: Dr. Ruben Gonzalez Vicente

12 June 2019 Leiden

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Abstract

The situation in the Philippines has been widely discussed and defined by scholars for its inequality of wealth and faltering development (Hutchcroft & Rocamora, 2011). This thesis provides a critical review of the development of the Filipino elite democracy and how it resulted in the existing combination of economic growth and forms of violence present in its society.

The elite democracy in the Philippines has remained relatively stable and economically growing by relying on society’s instability through violence from ethnic and economic inequality. The competition that comes from modernization should eventually bring stability as wealth and progress is created, but it also establishes social conflict by creating clashes between classes. While they should counter each other, in the Philippines they complement each other. Different actors have influenced these processes, in the sense that these are not just diffuse complex processes of difficult explanation, but processes where specific actors have fomented forms of violence or contempt against others for a variety of reasons. Some of these processes have a colonial origin; others are directly related to the elite democracy and its corruption. Intentional and unintentional use of power to generate or stimulate modernization and so creating a wider division among different groups. The interests of foreign actors, elites, and minorities are highly intertwined within Filipino society. Over the decades, politics and economic policies have created a social situation that hinders the state’s development and keeps old patronage systems in place.

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Introduction

With the inauguration of the 16th president, Rodrigo Duterte, in 2016, bloodshed in the Philippines has increased because of Duterte’s zero-tolerance policy on criminality. His war on drugs, and to everything related to the illegal market, has resulted in thousands of killings by police or vigilantes operating with the government’s approval (Johnson & Fernquest, 2018). President Duterte was a mayor of Davao city, in the southern region of Mindanao. He served as a mayor for 27 years before being elected for the position of president. He managed to gather 15.7 million voters, which was 39 percent of the total casted votes. President Duterte became the first mayor to be elected for a presidential election. It is said that the ruling of president Duterte led to the death of the liberal reformation in the country (Thompson, 2016).

Initiated with the goal of cleaning the Filipino streets, Duterte’s actions have been condemned by international politics as inhuman and destabilizing for its society. Over the decades the Philippines has developed a reputation of an unstable state along with high economic growth (Kang, 2002). For example, a strong relationship with the United States of America (USA) has resulted in high rates of trade while there have also been continuous armed conflicts within Filipino borders (Abinales & Amoroso, 2017). Nevertheless, both have also contributed to the Philippines prominent position within the Asian political economy.

When examining the Philippines a recurring feature is violence within its society. Separationist groups, inequality of wealth, international dependency, and weak institutions have created a constant form of violence present across the archipelago. The Philippines’ violence is caused by its system of patronage, deeply embedded in its society. This system has widespread features of corruption, a weak state, a divided opposition, and a constant presence of turmoil within its borders. These destabilizing effects have developed over the decades, which has resulted in the deeply rooted forms of violence in the society of the Philippines. Violence can have different forms and not only stands for physical damage through attacks. For example induced processes of dispossession, exploitation, poverty, and discrimination are all forms of violence. These forms of violence can create instability within the social sphere that can threaten society’s system and result in revolts. For the Philippines, the key element to this violence is the elite that has remained in power and control of the democracy. Without breaking through this elite democracy first, violence will probably remain, as the current system will first protect the interests of its leaders before striving for the common good (Hutchcroft & Rocamora, 2011).

At the same time, there is a positive economic growth experienced in the Philippines despite the many challenges the state is facing. Amid the persistent international and local uncertainties, the economy of the Philippines continues to grow with an approximate 6.4 percent in the year 2019. Based on the previous tremendous growth there is a prediction that the economy will record an increase of approximate 6.5 percent in the year 2020 and the year 2021. The prediction is based on the Philippines economic update (PEU). The high rate of inflation recorded in the year 2017 lead to a decline of the national economic growth from 5.9 percent to 5.6 percent (World Bank, 2018a). Nevertheless, the government had to rely on support from the United States. The help was both financial and materialistic (Abinales & Amoroso, 2017).

There is a contradiction in the cohabiting of violence and economic growth in the Philippines. The standard expectation is that in a situation where there is violence, the overall growth of government and economy undergoes adverse effects but in this case, the overall growth rate of the Philippines attains appositive results even with the challenges facing the country. Corruption is rampant in the country which should affect the economy, but this does

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5 not happen in the Philippines’ economy. With all the economic and social inequalities in the country, the state continues to make positive progress. Economy and violence are closely connected, as “… low levels of development coupled with sharp wealth inequalities within societies breed insecurity among the citizenry, which thereby fuels instability in the long run – and if left unmanaged, will lead to unstable revolutionary changes (Regilme Jr., 2014).” Furthermore, forms of violence can result in the threat of revolt by social instability which will have its effects on the economic and political levels. For example, the presence of social instability has adverse effects on the development of the economy as it can discourage investors (Knight, 2013). As Regilme argues, by withholding a spread of development across the state, it can result in a growing presence of instability, which in turn can affect the national economy. The unequal spread of development and wealth as forms of violence will influence the social balance within society, as the people’s insecurities will rise, their trust in the government decreases. This resembles the important relationship between social and economic features for the stability of a society.

The situation in the Philippines has been widely discussed and defined by scholars for its inequality of wealth and faltering development (Hutchcroft & Rocamora, 2011). This thesis provides a critical review of the development of the Filipino elite democracy and how it resulted in the economic growth and forms of violence present in its current society. It is the contradiction between growth and violence that has formed the basis for the Philippines current model of development. The two main components of this contradiction are ethnic and economic inequalities.

This thesis will argue that the development of growth and violence that has taken place in the Philippines is theoretically double sided. In line with the theory of modernization, the transformation towards a modern state has brought stability, but primarily for the elite in power. It appears that the presence of violence, and with it, the social instability, has proven to be a stable factor within the elite democracy which gave the elite a guarantee of their position. Thus, its modernization has brought social conflict as the development of a capitalist economy in a post-colonial social order has created classes and inequality within society which are responsible for violence and instability. In short, the stability in the Philippines to continue its growth is based, or thrives, on the created presence of violence by the elite democracy.

The research will be divided into five parts. First, there will be a further discussion on the definition of violence and social instability, and the theoretical intriguing relation between social and economic features. This will be linked to the main theories of modernization and social conflict and why they have been chosen. Second, there will be a historical review of the development of the Filipino state. The primary function of this part will be informative for the reader to get more acquainted with the historical background of the Philippines. It offers a basis to use for the analysis of elite democracy and its development of violence. Third, will be an examination of the economic development in the Philippines. This will give a better understanding of the modernization of its economy. The chapter will be concluded relating the economic development with the modernization theory. Here I am arguing that the economic development of the Philippines is not linear and that its economic growth is characterized by inequality, dependency, corruption and political weakness. The internal structures are built around the country’s elite group. Fourth is the social chapter, which has a small introduction followed by three subchapters of key factors: socio-economic stratification, ethnic inequality, and postcolonialism & geopolitics. This categorization will benefit the analysis regarding social constructions, economic development, policies, nation-building, and interconnectedness. At the end of the chapter, there will be a review of the theoretical arguments that passed by in the subchapters. Here it will be discussed how the elite

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6 democracy has its roots in the colonial era and how it has evolved. The elite status has been used to remain in power by measures that have a nationalistic, economic, ethnic and/or foreign influence. Although the chapter’s focus is on the social processes and its relation to the social conflict theory, some economic and modernization features will be discussed as it is part of the analysis. Finally, there will be a conclusion on how violence has developed through social and economic long-term processes within Filipino society on the basis of both theories. This will prove that violence forms a stable factor in the development of the Filipino society on which the elite thrives to consolidate its power.

Methodology

A general overview will be provided by analyzing the economic and social development of the Filipino society over the decades. The thesis contains qualitative analyses of primary and secondary sources. Primary sources will be provided by social and economic statistics found on different databases. Most information will consist of secondary sources like academic articles, books and different researches from national and international organizations like the World Bank.

By empirically analyzing the economic and social features, through the perspective of the chosen theories of modernization and social conflict, the elite controlled society of the Philippines will reveal the development of the deeply embedded forms of violence that lead to social instability. The revealed structural problems will primarily prove the state’s instability by favoring the interests of a few over the common good (Hutchcroft & Rocamora, 2011). This will also expose the contradiction between the cohabiting of violence and economic growth which will prove the theoretical duality of the Filipino case. Modernization offers stability on the high level of the elite but this is based on the different forms of violence caused by social conflict theory and capitalism. This will offer a way of theorizing the relationship between economic growth and violence in the Philippines, or other developing countries. A basis could be created for further research on the historical exploration of the importance and interconnectedness between economic and social features for developing states.

Modernization and social conflict

The elite democracy in the Philippines has remained relatively stable and economically growing by relying on society’s instability through violence. For a better analysis of this argument it is key to further define the concept of violence, and how this relates to a society’s social (in-) stability. Furthermore, to prove the duality of the argument in this presumed contradiction the theories of modernization and social conflict will be used. The modernization theory will contribute by examining the development of the Philippines and how its focus on modernizing brought a form of stability, primarily for the elite. As mentioned this stability is based on violence and thus instability. The theory of social conflict will further relate to this part as the origins of its violence can be found throughout the Philippines’ development of a capitalist economy in a post-colonial social order. Through ethnic and economic inequality a somewhat stable society has been created that features a constant presence of violence.

Violence can constitute different forms apart from the usual assumed physical clashes. The World Health Organization (WHO) defines it as follows: “The intentional use of physical force or power, threatened or actual, against oneself, another person, or against a group or

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7 community, that either result in or have a high likelihood of resulting in injury, death, psychological harm, maldevelopment or deprivation (Krug, 2002).” In this thesis, it is the word ‘power’ that is essential. The relationship of power between individuals, classes or communities goes beyond the ‘use of physical force’ as it also includes psychological abuse and other more indirect consequences. Induced processes of dispossession, exploitation, poverty, and discrimination are forms that broaden the definition of violence (Krug, 2002). These forms of violence can be linked to the last few words of the definition by the WHO. For the research on the Philippines, a key factor will be inequality. Power is used in the Philippines to implement inequality throughout society with tools of discrimination, misguidance, and exclusion. Some features will prove to be more unintentional such as incompetence of the government because of recurring forms of dependency towards the USA.

As a response to those forms of violence a rise of social instability could take place. This would create a direct threat to the elite power and prevalent system. How the political order is structured is not important for social stability. The key is the consensus within society, whether this is through democracy or one-party-rule does not make the difference as long as all groups accept this form of society. Every system will be challenged when the social order is disrupted or social instability rises. The threat of conflict can have a disrupting effect on politics and governmental policies (Knight, 2013). The possibility of social stability depends on how the different groups within a society are involved and/or represented in the political system. This will also include the way their problems are addressed, and how they are incorporated in the system. Furthermore, stability depends on providing social and political legitimacy for the different needs and demands between groups (Sengupta, 2004). Thus, instability can be reached when groups: are excluded from the political system, their problems are neglected, or a lack of social and political legitimacy. This can vary as groups may have different forms of incorporation within society. Another important feature of stability is the economy. Wealth or economic benefits give people security for their future and thus can result in social stability. It used to be thought that economic growth would solve most problems; the experience has learned that growth does not always imply social stability (Social Progress Index, 2018). Although there are economic development and progress in the Philippines, social stability is lacking. The elite democracy has kept forms of high inequality to remain its own status of wealth and power. The state shows forms of stability so daily life is possible, but its society is under constant pressure as groups are marginalized. Inequality, discrimination, and exclusion can be found on every level of Filipino society. Such features will result in instability and will cause a malfunctioning society as groups cannot fit in society by the means of a ruling group. This makes the relation between economic growth and social instability intriguing.

The contradiction in the Philippines is clearly present with the cohabiting of stability, instability, growth, and violence. The reason for choosing the modernization theory is that it can help to clarify the long-term processes that have contributed to the creation of the Filipino situation. The modernization school represents the internal development of a state, it analyses the changes of, or in, actors like institutions as they move towards more wealth; and become a modern state. Nevertheless, the theory has some shortcomings and social conflict theory will function as a corrective. Therefore this section will critically engage on modernization theory by highlighting what is useful while keeping its shortcomings in mind.

Modernization theory is based on capitalism and its principles of production: supply and demand will control the market by the way of laissez-faire (Jackson, 2013). This means that competition on the market will result in more efficient and effective production methods. To achieve this, society needs to adapt to ‘modern’ ideas on the levels of education, politics, technology, and economy. Developing countries need to follow a path of development similar

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8 to the one the West has followed, so they can generate the same benefits and prosperity. According to W.W. Rostow (1960), society needs to follow the ‘stages of economic growth’ if it wants to pass into the transition to modernity (Ravenhill, 2014). For the Philippines competition is an essential part of its development, only it is not based on laissez-faire but on a system of patronage. While functioning in an almost similar way, power lies with the elite democracy that determines the economic policies.

Economic growth will induce a push towards modern society as profits will be used for investments in further development. Therefore, modernization theory puts the national interests of gaining capital for investments, prior to internal equality (Kusaka, 2017). It is this inequality of wealth that should provide a quicker economic growth as a rule of capitalism’s competition of supply and demand (Jackson, 2013). Eventually, as Seymour Martin Lipset (1959) puts it, the affected aspects of economic development will converge into politics as people become more educated, which could result into the assembling of a democracy (Lipset, 1959). While establishing a democracy could be a possibility it is not the only result, another is creating stability within the state.

Creating stability through modernization has changed since the theory emerged in the 1960s. In the article of Ronald Inglehart and Christian Welzel, How Development Leads to Democracy (2009), they discuss the evolution of modernization and correct several aspects of ‘earlier versions’ (Inglehart & Welzel, 2009). Among these corrections is the notion that modernization is not linear, it reaches inflection points throughout its stages of economic growth. A second aspect is that history matters for the social and cultural dimensions: an identity is formed which takes time to adjust. Furthermore, there is the notion that modernization is not westernization, the rise of modern eastern states proves this. Finally, democracy can be established in the long run. In the process of modernization certain aspects might occur that would make it likely that democracy will be established, but it does not automatically coincide with modernization. The economic development could lead to a shift in social, cultural, and political dimensions. This shift could result in the establishment of a democracy, but it is no guarantee.

Inglehart and Welzel focus more on the cultural and social aspects within a society, instead of the old school that was only focused on the economy. The social and political changes which occur can create a larger, educated middle class (Inglehart & Welzel, 2009). Although, this does not imply that democracy will be created, or liberal values rise, or even with the creation of a democracy that it will function properly, but it does influence the social stability within society (Thompson, 2016). A certain form of awareness could arise or disappear, which still depends on their cultural background how they will use this new perspective (Kusaka, 2017). This revised perspective of modernization theory with the inclusion of social and cultural backgrounds will be used in this thesis. It is exactly this interaction between the elite’s focus on economic growth and the social consequences of it that will help clarify the Filipino case. The reinvigoration of the modernization theory by Inglehart and Welzel with the inclusion of different aspects has broadened its relevance for modern societies. It will reveal the used forms of competition by the elite democracy that created a special form of overall stability. In the Philippines, some economic development has trickled down to society but most have been reserved for the elite democracy. The social conflict theory will complement the analysis as it examines deeper into the macroeconomic indicators and looks closer to the social consequences that lie underneath.

Social conflict theory is a collective based theory that tends to explain that people and groups within the community interact based on engagements rather than free will. It means that instead of conformity and consensus, social order is maintained by domination and

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9 power. From social conflict theories, there is the perspective that different social classes and inequality occurs because of the social organization on the merit of conflicts and contradiction (Rodan, Hewison, & Robison, 2006). The theory enables wealthy people to dominate in all the essential matters and decision. Their dominance reveals the disputes between them and society (Jackson, 2013). There is a constant form of conflict over the competition for limited resources.

For the social conflict theory, social stability is leading as it represents the interaction between the different classes. Capitalism creates different classes, some will try to break free from this categorization, and others will try to maintain them in perfect order. No matter the form in which the ruling group operates, it needs to satisfy or control the mass for stability. For the social conflict theory, it is the distribution of power and control that forms the relation with social stability (Rodan, Hewison, & Robison, 2006). It is the shape of the class relations that is decisive within the social conflict theory. The competition that comes from modernization should eventually bring stability as wealth and progress is created, but it also establishes social conflict by creating clashes between classes. While they should counter each other, in the Philippines they complement each other.

As the modernization theory will highlight some macroeconomic issues that reveal the state of economic development in the Philippines, the social conflict theory will offer a further explanation of the processes and the relations between social issues and politics with economic relations. Therefore, after the historical review, the economic chapter will first be discussed, followed by a more extensive examination of the social processes.

A historical review of the development of the Filipino state

This chapter summarizes the general history of the Philippines to provide some background to the contemporary forms of violence. This informative background offers a broader base to use in the analysis as it reveals the start of long-term processes of modernization and social conflict. The chapter emphasizes social, economic and ethnic drives of inequality all of which are juxtaposed and need to be contextualized in the country’s colonial and post-colonial development. With this review, the chapter introduces the key factors which are the basis of violence in the country: elite democracy, the position of different minorities, and foreign influences. Five important phases will be highlighted: first the arrival of Islam and European occupation; secondly, the colonial occupation of the USA with the short intermission of World War II; thirdly, the presidential administrations from independence till Ferdinand Marcos; fourthly, the authoritarian rule of Marcos followed by his withdrawal with the EDSA-revolts; finally, the administrations from 1986 till 2000 (Hutchcroft & Rocamora, 2011).

The first phase is characterized by the arrival of Islam and the arrival of the Europeans. The Philippine archipelago remained isolated, until the late 14th century when Islam started to spread across the islands. Islam interwove with the indigenous people, and so with their culture (Narciso, 2012). The island of Mindanao quickly became the principal center of the Muslim population. Although there was at least one geographical shared region in which the religion spread, the groups remained divided. Within and around this center three major and ten minor ethnolinguistic groups emerged. All indigenous people were organized by tribal hierarchy and ruled via feudal lords named datus or by larger sultanates (Lapidius, 2002). In this feudal Filipino society, the Europeans arrived in the sixteenth century.

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10 Islam reached Manilla and became prominent in some parts of Luzon but was quickly removed from both areas with the arrival of the Spanish and their conquest starting in 1521. Nevertheless, in the southern Philippines the Islamic society had flourished and enjoined wide acceptance. Contrary to the rapid conquest of the northern Philippines, when the Spaniards arrived at Mindanao they were met with fierce resistance. Converted Christian Filipino’s were used as mercenaries in the Spanish conquest, which resulted in a gap between the northern and southern Filipino communities (Narciso, 2012). The Spanish were not capable of hispanizing and converting Muslim communities. The Islamic population was generalized as Moro by the Spanish, a name that would later be used for propaganda of regional Muslim identity (Reid, 2009). Despite the common European enemy, it was not an incentive for the creation of a shared Muslim identity, or regional cooperation. The southern opposition remained divided (Lapidius, 2002). The fight of the Islamic Moro’s against foreign or local authorities is not only of importance during this period but remains a problematic feature in current Filipino society. A clear division between social groups was created in which the Moro became a minority.

In the second phase, the base was created for American dependency. In 1898, the United States took over control in the Philippines after defeating Spain in the Spanish-American War that year. This change of control was disputed among the Filipino’s, especially within the Moro populated regions. All anti-American resistance was systematically broken during a powerful campaign of pacification (Tan, 2003). Although the resistance was broken during this Philippine-American war (1899-1902), instability remained, primarily in the south. The Americans did not resolve the division between the northern and southern Philippines; it even broadened with land reforms and resettlement (Rodell, 2007). Economic policies were focused on favoring the north, as they were more willing to cooperate with the foreign ruler. American rule brought institutionalization for the creation of a democratic society across the archipelago. Using local elites as administrators, society was built according to the American example. The former feudal elites were used to govern the state via indirect rule. Keeping the elites satisfied, gave a form of guarantee for order. Through these elites, English became the language of the intellectuals and reinforced the American rule (Kusaka, 2017). The strong rule forced the Filipino’s to adapt and accept, but sentiment towards independence remained. In 1934, both parties started with a process towards independence via the Tydings-McDuffie Act which provided guidelines for independence over a ten-year transition period by 1946. This period is also defined as the ‘Commonwealth era’ (Kusaka, 2017).

The path towards independence was disrupted by the outbreak of World War II and the alliance between Japan and Nazi-Germany. The regional stability in Southeast Asia was threatened as the colonial western states started fighting in their own countries. The conquest by the Japanese (starting in 1941) rapidly spread across the region and the Philippines were occupied. The Filipino has remained loyal to the Americans as they had promised them independence (Tignor, et al., 2011).

The battle for the Philippines was one of the fiercest in the Pacific campaign against Japan. On 5 July, the American troops declared the Philippines liberated, and hostilities formally ceased on 15 August 1945 (Rottman, 2001). When the Philippines got its independence from the USA in 1946, they faced several problems. There were social, economic, and political difficulties on every level. With its independence, the Philippines signed several agreements with the USA. These included the protection of USA’s business interests in the region. At the same time, the Philippines remained highly dependent on foreign investments from the USA and relied on its military power for its protection (Reid, 2009). Despite its independence, the new democracy maintained strong bonds with the USA, for their own protection, but also to establish a basis for further economic trade and future

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11 development. This depending policy towards the Americans formed the basis for the next decades of economic investments. Nevertheless, during the next decades, Filipino nationalists slowly started to criticize this form of ‘neo-colonialism’ (Abinales & Amoroso, 2017).

The third phase is defined by a focus on development with American help causing a higher dependency, meanwhile, an elite group tried to strengthen its position. From independence until 1965 the Philippines were ruled by five administrations. The elected presidents were Manuel Roxas, Elpidio Quirino, Ramon Magsaysay, Carlos Garcia, and Diosdado Macapagal. All presidents focused on a national economic plan for further development in close cooperation with the USA. Technological inputs, credits, and social welfare programs were used to expand agricultural productivity (Abinales & Amoroso, 2017). A process for modernization was created to prove ‘American-style’ democracy was the best option for countries. This was mainly a countermovement to the spread of communism in the region and the nonalignment movement. Nevertheless, a political system with an undisputed status of the elite remained.

The world war was only a short intermission in the political development of the Philippines. However, there was a broadening of the political sphere with new strongmen and emerging parties; a consequence of the Commonwealth-era and education prior to the world war. Philippines’ government allowed the formation of new political parties, which, later affected the political stability of the country as it generated corruption by lacking an ideological background (Ufen, 2008). The postwar administrations had generated growth in the public cynicism toward the state. Despite such issues, they developed a broader political framework that grew and gained popularity for governance (Abinales & Amoroso, 2017). Aside from the north-south division, this shows that there is also a gap between the elite and the rest.

The fourth phase can be identified as a dictatorship and people’s protest; both have disputed results for the social and economic future. In 1965, Ferdinand Marcos was elected as the new president of the Philippines. Winning the election for a second term in 1969 extended his rule. Despite these victories, he will be mostly remembered for declaring martial law in 1972 and so extending his rule as an authoritarian president. It was not until 1986 that he would be removed from office. In 1981 martial law ended and new elections were held, but these were boycotted by the opposition causing another victory for Marcos. The ending of the Marcos era is primarily symbolized by the People Power Revolution (also known as EDSA revolution). After losing, and cheating, in an election that should have shown his popularity, he refused to leave office. In February for several days, entire Manilla lay down work and started a non-violence protest march. This revolution was the incentive that made Marcos’s position untenable and he resigned (Abinales & Amoroso, 2017). Although he is mostly described as a dictator, his legacy is still a topic of discussion. During his reign, the Philippines experienced high economic growth but also regression, and he brought some form of stability while a revolution stopped his rule. Also, while a claim was made that with the removal of Marcos democracy was restored, it was the same elite democracy as before (Kusaka, 2017).

The final phase shows the different focus of the presidents after Marcos, as all followed their own path. From 1986 until 2016 presidents Corazon Aquino, Fidel Ramos, Joseph Estrada, Gloria Macapagal-Arroyo, and Benigno Aquino III governed the Philippines. As the wife of a murdered opposition leader of Marcos, Aquino was a popular president and initiator of the 1986 revolts. Her administration limited the presidential powers and was focused on civil liberties and human rights, as well as restore economic stability (Abinales & Amoroso, 2017). Aquino primarily wanted to restore the peace after Marcos’s dictatorial rule.

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12 Her efforts were criticized and categorized as weak governance. Her successor Ramos continued with her mission of revitalizing the economy but pledged a strong state through people empowerment and reform liberty. The 1997 Asian Financial Crisis disrupted his campaign, but he could restore growth by 1999. His liberalization of the economy granted the Philippines the status of a ‘growing Tiger’ economy (Raquiza, 2012). Only Estrada did not fulfill the entire six-year in office because of impeachment on grounds of bribery and corruption. He was a populist who got into power with the support of the poor but was removed from office after the people gathered in the People Power 2 movement (Kusaka, 2017). Arroyo started her administration with high popularity as she took over the rule of Estrada. During her nine-year rule, she became highly criticized for different accusations of corruption and even manipulating elections. Her reputation remains highly discussed as she still fulfills representative positions (Abinales & Amoroso, 2017; Heydarian, 2018). Finally, Aquino III, son of Corazon Aquino, is probably one of the most popular presidents the Philippines has ever had. Highly popular with the public his administration is mainly remembered for its economic growth and political restructuring, but also for its relatively weak governance of which the voters did not blame him but the system (Thompson, 2016).

Apart from these phases, there are some other important actors in the history of the Philippines: minorities and their role in society, especially of the Muslim community. Since the arrival of the Spanish in the fifteenth century, they have been marginalized. After the Spanish, the USA kept a similar approach towards the Islamic society. Discrimination, exclusion, false political promises and economic deprivation were a continuous issue (Abinales & Amoroso, 2017). These policies continued when the country became independent. It eventually escalated when Muslim soldiers were slaughtered by their own (non-Muslim) officers in the Jabidah massacre of 1968. As a response, the community took up arms and established the Moro National Liberation Front (MNLF). Over the decade's new groups, or splinter groups, were formed; they fought for a separate state on the island of Mindanao (Rodell, 2007). Influenced and inspired by the USA’s policies the Filipino government tried to oppress these insurgencies by military force. An internal war became iconic for Filipino instability. The government faced strong opposition from several directions. Over the decades, peace talks and periods of cease-fire did not result in the solution of the conflict, although president Duterte has made new steps in this process of peace. The situation of the Muslim community will form one of the perspectives for the analysis of the different forms of violence in the Philippines, as it resembles the treatment of its minorities and opposition. The Moro society will be used as an example to gather a resemblance of social instability and will not be the core focus.

Furthermore, there is also the presence of a Chinese minority that used to be the target for nationalists. During Marcos’s administration discriminatory policies and legislation were eased which benefited the Chinese as they quickly rose within most sectors of the economy. They received a special position in the middle class within society as they brought wealth and investments (Rodan, Hewison, & Robison, 2006). Economic and social factors oppose each other when comparing foreign Chinese descendants from immigrants and the local Muslim population. This special treatment of Chinese investors is also a contradiction with the rest of the Southeast Asian region as they were discriminated in neighboring states.

Economic development

In this chapter, the economic development of the Philippines will be examined. The process of economic development throughout its independent history will reveal some structures of

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13 the different forms of violence. In the next chapter, violence will be further examined by combining it with different social features that have developed in Filipino society. First economic development will be discussed, this will be linked to the general economic development in the Philippines. Following is the examination of income inequality and the postcolonial relation of the Philippines and the USA. Then the influence of the Filipino workforce overseas is mentioned. Finally, the theoretical arguments in relation to the economic processes will be reviewed. These economic factors play an important role in the contemporary situation of violence in the Philippines. It will show that the modernization of the Philippines and its economic development relied on foreign treaties and high inequality spread across the archipelago. Furthermore, all will have a complementary function when examining the social consequences and processes in the next chapter.

Economic development has a broad definition: “The process through which a country, a region, or the world as a whole advances to a new level of economic performance; usually associated with growth performance, but there are other measures of development such as happiness, security of the means to a good life, and the fulfillment of human potential (Ravenhill, 2014).” The economic development not only focusses on the economic results/numbers, but it also takes the social consequences into consideration. A leading indicator is the Gross Domestic Product (GDP) growth of a state. A state’s GDP or its annual growth gives an indication of its progress and can be easily compared with other states. Comparing figure 1 and 2, it can be seen that the Philippines has experienced a high GDP (annual percentage) growth over the past decades compared to the world average of around 3-4% (World Bank, 2018b; Trading Economics, 2019).

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Figure 2 annual GDP growth (%) world

Despite such high economic growth rates, the international rankings on development do not show a similar trend for the Philippines. In the Global Competitiveness Index, by the World Economic Forum, the Philippines rank 56th of 140 in the 2018 edition. Factors like weak institutions and corruption influence its lower ranking regarding neighboring states like Thailand (38th) and Indonesia (45th) (World Economic Forum, 2018). Apart from such rankings, the Philippines is a remarkable economy in the Southeast Asian region. Its relation with the USA; high levels of corruption; weak institutions; high level of people working abroad; and a state governed by a small elite based democracy make it an interesting economy.

The economy of the Philippines has made a clear transition but still has a large agricultural sector. In 1993 this sector granted 45% of the total employment, this rate has dropped to 25% in 2018 (World Bank, 2018b). As the world’s largest coconut producer, and one of the largest rice and sugar supplier in the world it can be understood why this sector still has a big share in the country’s economy. Furthermore, the elite families have built their power as big landowners and still form the center of the sector. These family conglomerates fulfill the leading segment of Philippine capital and have spread their interests over different sectors like industry, commerce, and finance (Balisacan & Hill, 2003). As economic and political leaders they can keep a close focus on protecting their own interests. Nevertheless, it shows a major shift within the agricultural sector but it still employs a quarter of the total workforce. Reason for this shift is the consistent growth of the services sector over the past three decades. The Philippines has a stronger comparative advantage in labor-intensive services over manufacturing (Rodan, Hewison, & Robison, 2006). This is also notable in the export of labor, which will be discussed later on. Services now cover 56,5% of the entire workforce (World Bank, 2018b). The growth of the sector is a consequence of the liberalization efforts of the early 1990s. This eased or removed particular restrictions on the participation of non-national firms; the application of it shows uneven across the sector (Rodan, Hewison, & Robison, 2006). However, the family conglomerates still exist, different forms of liberalization have created some limits on their monopolistic power. This has also resulted that the conglomerates now need to measure themselves with newer forces like foreign direct investors (Balisacan & Hill, 2003).

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15 The beginning period of the independent Philippines has proven to be the most prosperous. With its elite as political and economic leaders, the state experienced high economic growth. It was one of the first countries in the Southeast Asian region to begin industrializing. Protected by tariffs and other barriers, with the help of the USA, it became economically leading in the region. As a result, its regional status as an economic power exceeded those of all, except Japan (Krinks, 2002). It made use of its comparative advantage as a manufacturing state. During the twenty-year rule of Marcos, some critical setbacks resulted in the Philippines missing out on the Asian boom from the late 1970s until the mid-1990s. It was bypassed in the mid-1980s with international restructurings of labor-intensive industries to China and ASEAN-countries. It was one of the results from a political and economic crisis that had set in with the assassination of opposition leader Benigno Aguino, combined with negative external shocks from economic policies of the previous decade (Balisacan & Hill, 2003).

During the 1970s growing rates dropped and the Philippines fell behind compared to its neighbors. In the 1980s regression hit the country, and it stabilized only slowly (Krinks, 2002). The country had lost its regional economic lead. Although Marcos has a great responsibility for this ‘downfall’ of the Filipino economy, he cannot be the only one held responsible. Several political and economic actors, during and after Marcos, had their effect on the state’s economy. These were individuals and institutions from within Filipino society, and external. The post-Marcos Philippines has been no better as scholars have defined it as a “state of permanent crisis where electoral democracy in the country failed to deliver economic prosperity (Regilme Jr., 2016).” In this period a new political obstacle has emerged. The political system is not capable of offering predictability of its economic policies. Weak bureaucracy and regime change every six years with very personalistic policies created commercial uncertainty. Every administration battles his predecessor’s politics by re-appointing each position of the bureaucracy. As a consequence true policy-making is lacking which makes it more unreliable for investors in the long-run (Balisacan & Hill, 2003). Nevertheless, the administrations after Marcos guided the Philippines relatively safely through the Asian Crisis of 1997, but this was at the cost of re-emerging cronyism and corruption among the high levels of society (Krinks, 2002).

A relatively constant factor in the Filipino economy is the uneven distribution of wealth revenues across the nation. Powerful families, who during colonial rule owned most lands and were set to rule, still hold the majority of shares of the biggest corporations in the Philippines (Regilme Jr., 2016). This elite-based system was reinstalled after the disposal of Marcos and continued the uneven distribution of wealth revenues across the nation. Income inequality is still clearly present. The individual and regional inequality of income have strengthened the position of the elites. As this small group has alliances through family ties or economic and political dependencies, the result is a deep-rooted influence on governmental and economic policies (Hutchcroft P. D., 1998). Most industries, including banking and finance, are controlled by family connections (Krinks, 2002). Although the middle class is gaining ground it still misses the legislative power to truly confront the upper class.

The Gini index – the measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. A value of 0 represents absolute equality, a value of 100 absolute inequality (United Nations Development Programme, 2018) – is declining after some years of fluctuating rates, the Philippines is still ranked (113/189) as a state with a clear presence of inequality (United Nations, 2017). A comparison between before and after revolution numbers show little has changed. The glamour of the true revolution may have been romanticized (Regilme Jr., 2016). This inequality is not only caused by the division between the elite, middle class and the mass, but

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16 it is also regional. The geographical situation of thousands of islands has caused an unbalanced division of economic activity across the nation. Nevertheless, new systems, such as the internet or improved possibilities of mobility, created a wider spread of wealth. This has also caused communications to improve, which benefitted opposition to unite against the elite. Although still in power, the position of the elite is more vulnerable as globalization has introduced new possibilities for protest (Krinks, 2002).

Year 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 Gini

Index

41.00 40.80 43.80 42.90 46.00 42.80 41.50 42.90 41.80 42.20 40.10 40.10

Table 1 Gini Index Philippines

Table 2 World Development Indicators. https://data.worldbank.org/data-catalog/world-development-indicators

Battling inequality land reforms have been tried on several occasions. A series of programs were instituted, with the first one starting in 1963. Such land reforms proposed by the government intended to transfer most of the land in the country to the poor Filipino to reduce the social and economic inequality among society (Bello, 2005). However, the restrictions imposed together with the land reforms prohibited poor citizens from selling their land or even buying more properties. As a result of this restriction, the targeted beneficiaries of the improvements sold the land to wealthy people through the black market which has further increased the social and economic inequality in the country. Despite this challenge, the overall growth of the country recorded an increase (Balisacan & Hill, 2003). Furthermore, the Filipino elite uses specific strategies to maintain a prominent position of power. The elite spends huge amounts on resources to avoid governmental interference, this way they have access to unlimited acquisitive opportunities (Regilme Jr., 2016). Adding is the usage of the central bank’s funds to aid their personal business interests to spread out their resources over several sectors and branches. The elite takes advantage of the weak state to its own benefits.

0 10 20 30 40 50 60 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 % o f to ta l in come

Years available on World Bank

Income Distribution Philippines

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17 This way short-term interests of a few get priority over durable development investments for the common good (Regilme Jr., 2016).

Another distinctive feature about the Filipino economy is its relation with its former colonizer the USA. In 1946, the newly formed, independent, Philippines was forced to sign disadvantageous treaties with America as it needed the economic and military resources. After independence, a close relation remained partly as a result of the communistic threat of the Cold War. Their new alliance can be defined as neocolonial, with the USA using the Philippines’ market for its own economic interests and geographical importance in the Southeast Asian region. On the other hand, the Philippines craved for the independence it was promised but was far from ready to govern the state on its own, it needed the American resources to rebuild and prevent chaos across the archipelago (Balisacan & Hill, 2003). During negotiations for independence the parties agreed upon several treaties, one is the Bell Trade Act of 1946. This agreement was primarily demanded by the USA and covered a form of ‘free trade’ that was favoring the Americans. Special rights on land ownership, natural resource exploitation, and other business activities would give American businesses a great advantage over the local entrepreneurs (Abinales & Amoroso, 2017). Together with a Military Bases Agreement (1946) which provided protection against external threats, the USA secured their interests in the Philippines. The new and ‘independent’ government had almost no position to negotiate as it needed the resources and protection. Nevertheless, there are always a few who profit. Overall it was mostly the land-owning elite that profited as they could maintain a direct and cheap export line of primary commodities like sugar or coconut oil (Rodan, Hewison, & Robison, 2006). These powerful families were also favored by being granted preferential loans from state banks. This was only possible because of the collaboration with the Americans as they promoted the American interests (Balisacan & Hill, 2003; McCoy, 1993). This economic and military dependency towards the USA and the elite’s special treatment made the Philippines an instrument for American foreign affairs.

Filipinos working overseas have become an important part of the Philippines economy, but also have an (in-) direct influence on social practices. For decades have different forms of inequality led to a migration flow of workers going abroad to sustain their families. Low perspective for future earnings in the region made workers seek labor abroad. The result is that labor has become a major export product of the Philippines. Fixed term contracts as well as jobs on irregular bases abroad, made up for 25 percent for the domestic workforce in 2003 (Case, 2002). According to the Commission on Filipinos Overseas, the estimated number of Filipinos working overseas (permanent, temporary and irregular combined) totaled 10.238.614 people in 2013 (Commission On Filipinos Overseas, 2013). At that time 10, 4% of the total population. This overseas working force has become an important factor in the boost of consumer spending as families rely on the incomes earned abroad. Not only does it support the families at home, but it also benefits the national revenue as the money flows directly into the Filipino economy. In 2017 remittances from overseas workers reached $28.1 billion, a 9, 2% share of the total $305-billion Filipino economy (Remittances from overseas Filipinos reach another record high, 2018). Adding to this is the spread of global awareness in the Philippines as world perspectives made a broader impact on Filipino society. The war on terrorism, for example, gained broad support when Arroyo joined the USA in their fight. This restoration of old military alliances was partly embraced because of the shared feelings from communication with overseas workers in the USA (Rodan, Hewison, & Robison, 2006). Nevertheless, the long-term perspective of this labor migration is less prosperous. It generates a large outflow of the intelligentsia, who most of the times will not return, and those who do are expected to become part of the corrupt system (Regilme Jr, 2013). The migration also leaves the own labor market deprived of its resources, it cannot

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18 provide in the needs of the market. Also, the labor diaspora has a negative effect on the social welfare opportunities in the Philippines as sectors like education and health care lose their leading figures and new generations. Although the Filipino state reflects the labor migration as a solution for inequality and social justice, its outflow primarily proves the depressing situation as it promotes migrating abroad (Regilme Jr., 2016).

Modernization of the Filipino economy

Looking at the development of the Philippines’ economic growth, a pattern of periods of transition and changes symbolizes overall continuity. A strive for modernization is visible wherein the economy is confronted with major setbacks while maintaining a long-term process of economic growth. The internal economic structures are built around the country’s elite society and are maintained through external relations, corruption, and patronage. This neocolonial structure maintained a close relationship with the USA which created a dependent stance. Although this hindered true development, it also protected the new state against external threats and offered much-needed resources. Despite an overall continuous economic growth rate, it has fallen behind its neighboring states. The relation with the USA protected the state and its citizens, simultaneously the elite could profit through its export of primary goods. Although the decisions after independence were primarily of a diplomatic nature, the capitalistic features cannot be denied. The position of the elite has remained untouched despite the political shifts as they were able the keep economic profits and political control.

The Philippines’ economic growth is characterized by its inequality, dependency, corruption and political weaknesses. These factors contribute to the balance of power in the Philippines as they keep modernization in place. There is some continuity of development but this is regularly interrupted by the changes of administration. The political shifts and with it its uncertainties combined with an ongoing international dependency counteract its own development. As a result income inequality remained throughout the state’s development as the elite group could not be challenged. Widespread inequality has forced workers to seek labor abroad, which now forms a critical part of the state’s GDP. It shows that modernization and the focus on economic growth have created a rather unstable situation.

While the processes of inequality and a depending relation with the USA reveal some part of modernization in the Philippines as economic growth continues. It only lacks the social and cultural background to further explain the creation of violence. Better analysis can be made regarding the modernization of the Philippines and its violence by examining the capitalistic, cultural and social factors that created the turmoil within Filipino society and relate these to the social conflict theory.

Violence in the Philippines

While the modernization’s focus on economic growth has shown to create an unstable situation this chapter will focus on how violence is constructed in the Philippines. By combining modernization and social conflict theory a supplementary conclusion can be made on how some stability is created by holding on to presumed destabilizing forms of violence. The chapter will further examine the already discussed processes of inequality, dependency, and corruption of the economic chapter added with the essential social and cultural influences. To analyze this a closer examination will be made on socio-economic stratification, ethnic inequalities, and postcolonialism & geopolitics as key factors within society. These have been chosen for a better demarcation as they play a pivotal role throughout the development of

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19 Filipino society. First, a few indicators will show the different positions of the Philippines in the world to give a better insight into the situation. After these clarifications, the three key factors as mentioned above will be discussed individually. This will show the long-term processes that have created different forms of violence. Finally, the theoretical arguments on social conflict will be summarized and combined with modernization, keeping the mentioned processes in mind. This will reveal that the colonial heritage still influences the contemporary society as foreign influences combined with a weak state and elite interests controls social stability as it keeps forms of violence in place. Division, corruption and dependency shape and characterize Filipino society.

To give a better insight into the situation for the Philippines some indicators will be shown to represent its current position in the world on several levels. Transparency International is a worldwide organization which is focussed on the corruption within a society. Each year they make a new ranking in which every country is judged on its level of public sector corruption. For 2017 they ranked the Philippines 111/180 with an overall score of 34 out of 100. Preceded by Armenia, Vietnam, Ethiopia and the FYR of Macedonia (Transparency International, 2017). This is a slight improvement since 2007 when it was ranked 131/179 together with Burundi, Honduras, Iran, Libya, Nepal and Yemen (Transparency International, 2007). Furthermore, there is the Human Development Report of the United Nations Development Programme. These reports give an indication in the human wellbeing around the world. For 2018, the Philippines ranked 113/189 with a score of 0.699. Since 1990, when the reports started, the Philippines score has risen from a 0.586 (United Nations Development Programme, 2018). There is also the organization Freedom House which analyses freedom and democracy in countries over the world. Political rights and civil liberties are part of their core focus. They rate the Philippines a 62/100 and rank them as ‘partly free’ (Freedom House, 2018). Although these are just a few rankings among many international organizations, it gives an indication of the position of the Philippines within the world. This is a minor reflection of the state’s internal social situation. The relatively low rankings indicate that there are some issues remaining. Although, as can be seen in table 3, the Philippines made progress on some levels while declined at others.

It needs to be stated that these organizations are not completely regarded as apolitical. Transparency International is established as a non-profit organization but over the years they faced several accusations of accepting funds from multinational organizations (Corporate Crime Reporter, 2017). While the Human Development Reports from the United Nations has always been criticized for being too simplistic, regarding its choice of indicators or methodology (Human Development Report, 2011). This could influence the outcomes and not truly reflect reality. The Freedom House has received comments on their biased attitude towards the USA. The source of their funding depends on the USA and thus an objective stance is hindered (Czepek, Hellwig, & Nowak, 2009). Nevertheless, it does give an indication of the current situation in the Philippines, as table 3 shows an overall trend, as a still-developing state with several problems to face.

Organization Year Ranking Score Description

Transparency International 2007 131/179 25/100 Focussed on corruption 2017 111/180 34/100 Human Development

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Report (maximum of 1)

2018 113/189 0,699

Freedom House

1999 Free 2,5/7, 3/7, 2/7 Freedom rating, civil liberties and political rights (1 = best, 7 = worst) 2018 Partly Free 3/7, 3/7, 3/7

Social Progress Imperative

2014 56/132 65,86 Social and environmental

indicators to measure life outcomes

2018 90/146 63,36

World Happiness Report

2013 92/156 4,985 Identifies happiness and wellbeing

around the globe

2018 71/153 5,524

Table 3. International Rankings of the Philippines

Socio-economic stratification

Within the Filipino society, there are different classes governed by a small elite that has controlled the state for decades. The functioning of the different groups in society is primarily controlled by the elite. Economic, political and thus social power lies with this small group of wealthy families. How they came to power and maintained their position directly influences the social situation in the Philippines. Several factors have strengthened their position and still do. The division between the elite and the rest has a pivotal role in the analysis of social violence.

The original division of classes within society originates from the colonial period as factors like language became characteristic for elite status. During the Spanish domination, the Spaniards made use of the system that was present on the Filipino archipelago. Its feudal system of sultanates and datus offered a system of indirect rule by keeping the ruling class as an elite. The sultans functioned as an intermediary for the Spaniards to govern the islands. Throughout Filipino history, this elite remained in power, politically as well as economically (Abinales & Amoroso, 2017). With the change of rule by the Americans, they transmitted their own political system to the archipelago and with it, English replaced Spanish as the language of the (intellectual) elite. A linguistic division was made which would become more evident later as poor families could not finance the education for their children. Even though public schools offered some basic English skills, a gap was created with the children of the rich (Kusaka, 2017). Although the Philippines is a bilingual state, English still has the status of the higher educated and is employed in the higher public systems. By maintaining English for all the governmental and business documents the people with a lesser education are quickly restricted in their opportunities. Use of the Filipino language is primarily a unifying measure to bond the geographically divided islands. The education in Filipino has a symbolic

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21 status for the national identity while being contested by the dividing and disrupting presence of English (Kusaka, 2017).

Throughout the development of Filipino society, the elite remained small and in power. The position of the elite has survived several moments in history where structural problems could have been solved or systems reorganized. After the disposal of Marcos, Corazon Aquino became president and promised to bring back the former democratic system before Marcos’s authoritarian rule. Although she restored the people’s voice, she is now remembered for restoring the old ‘elite’ democracy (Rodan, Hewison, & Robison, 2006). Elections throughout the years have proven that the Philippines have “… free and competitive elections, universal suffrage, and vivid civil society.” (Dressel, 2011) But these are obstructed by a weak state guided by an elite ruling class with few counter-hegemonic social forces (Dressel, 2011). For example, look at figure 3 and it can be seen that all the 16 presidents of the Philippines are related within a selective group of families. Although this does not prove anything specific, it shows that there is a very selective political group in a state of over 100 million people. Apart from this visualization studies have shown that “… around 178 political dynasties dominate 73 out of a total of 81 provinces in the country (Heydarian, 2018).” These elite groups or dynasties occupy almost all of the elected legislative positions in the Philippines, nearly 70%. A number that even surpasses several Latin American states, which are commonly seen as part of the most unequal continent (Heydarian, 2018). The Filipino elite groups remain in power by being selective concerning background and language.

Figure 3 Genealogy of all 16 Philippine Presidents

Corruption is a key factor in analyzing the elite class, as their time in power can be short. As seen above in table 3, according to the Transparency International corruption still has a strong influence on the Philippines’ society. Over the years the public image of the Philippines has been that of cronyism, corruption and a government that has been slowing down its development (Kang, 2002). There is a system that functions on the divided character