Title: Philippines - 1998 Defense Policy Paper - Chapter 2

CHAPTER 2
INTERNAL POLICY ENVIRONMENT
This chapter examines the internal policy environment that shapes our National Defense Policy. This environment includes the geography of the Philippines and the domestic political, economic and social developments that directly or indirectly impact on our national security and defense. It must be noted that the Philippine government defines national security in comprehensive terms to encompass political stability, economic development and social cohesion. This chapter will discuss our country's geography -a crucial factor in defense planning- and the three dimensions of national security.
GEOGRAPHY
The Philippines, an archipelago of 7,107 islands, is strategically located on the eastern rim of East Asia, beside major international sea lanes connecting Southeast and Northeast Asia. In the north, the Bashi Channel and Straits of Luzon separate the archipelago from Taiwan. In the west, the South China Sea lies between the western Philippines and China, Vietnam, and other Southeast Asian countries. In the south, the Sulu and Celebes Seas separate Southern Philippines from Borneo Island and the northern islands of Indonesia. The eastern approaches are largely empty apart from the Federated States of Micronesia composed of small coral and volcanic islands extending 2,000 miles in the Pacific Ocean.
From North to South (Batanes to Tewi-Tawi), the Philippines is about 1,750 kilometers (kms) long. From West to East (Palawan to Eastern Mindanao), it is about 1,100 kms wide.
The distances from Manila to major population and economic centers in the region are far:
To the north: Hong Kong is 1,209 kms away; Taipei, 1,224 kms; Tokyo, 3,165 kms; Seoul, 2,724 kms.
To the west and southwest, Ho Chi Minh City is 1,628 kms; Bangkok, 2,237 kms; Singapore, 2,461 kms; Kuala Lumpur, 2,587 kms.
To the south, Kate Kinabalu is 1,139 kms away; Jakarta, 2.820 kms; Sydney, 6,374 kms.
The Philippines has three major island groups namely, Luzon in the north, Visayas in the middle and Mindanao in the south. While the land area of the Philippines is more than 300,000 square kilometers, its archipelagic nature give it a coastline of 17,460 kilometers, longer than that of the US mainland. Sixty percent (60%) of the population live along this coastline. The main concentration of the population -about 55 percent- is in Luzon Island. Industrial development has traditionally been concentrated around Metro Manila the National Capital Region, located in Luzon. However, Central and Southern Philippines are developing rapidly.
The Philippines is one of the largest countries in terms of maritime jurisdiction. The ratio of land to water is 1:9 including archipelagic waters of about 583,769 square kilometers and an EEZ area of 1,356,184 square kilometers. As such, sea transport accounts for more than 95% of the country's total flow of commodities and domestic shipping accounts for 90% of total passenger traffic. These are serviced by more than 600 ports nationwide.
NATIONAL SECURITY TODAY
The Philippine concept of national security does not only espouse the protection of the state against external military threats. To limit the concept of security to merely the protection and defense of the state against military aggression is to ignore the interests of the Filipino people in whose name national sovereignty is exercised. In much of Southeast Asia, the Philippines included, internal weakness in the form of poverty and social inequity, which still has to be overcome, is part and parcel of national security concerns. During the Cold War period, these weaknesses, because they broad urban unrest, insurgency and separatism, had been even more dangerous than any outside threat. These problems remain and that is why the Philippines defines national security in terms of political stability, economic development and social cohesion -three aspects which make a "secure" nation. Developments along these three areas in the last five years have generally been positive and augur well for the future.
Political Stability
The introduction of a democratic multi-party political system has laid down the foundation for a stable, participatory system of government. The present government has proven that commitment to democratic institutions is no hindrance to effective government and economic growth. The system of governance today provides opportunities for different sectors of society to express themselves freely and participate directly in the political process.
Political stability has been strengthened by the significant decentralization and devolution of political power, responsibility and resources to the local governments. The 1991 Local Government Code has given greater autonomy to local governments in fiscal management, the provision of basic services, and community development. The objective of the Code -to transform the local government units into self-reliant communities and active partners in the attainment of national goals through a more responsive and accountable local government structure instituted through a system of decentralization- is slowly being attained.
Political developments have likewise led to a significant decrease in the level of insurgent activities particularly the communist movement, Ending several decades of struggle against insurgency is the immediate national goal because of its direct effect on national stability and economic growth. At present, there are two major defense concerns: the communist insurgency and the secessionist movement in Mindanao. The communist insurgency is spearheaded by the Communist Party of the Philippines supported by its armed wing, the New People's Army and its United front arm, the National Democratic Front, collectively known as CPP/NPA/NDF. In Mindanao, the secessionist more Islamic Liberation Front (MILF) has become the foremost security concern.
A major breakthrough in resolving the internal security problem is the forging of peace agreements with the military rebels and the Moro National Liberation Front (MNLF). The military rebels, who were responsible for several coup attempts from 1987 to 1989, are now undergoing a process of reintegration and reorientation in the Armed Forces, following the signing of the peace agreement last October 1, 1995. Some have opted to leave the service and engage in entrepreneurial activities and livelihood projects. MNLF Chairman Nur Misuari now heads the Southern Philippines Council for Peace and Development (SPCPD) which oversees the overall development of Mindanao. Former members of the MNLF are being integrated into the Armed Forces of the Philippines.
Against the communist insurgents, the combined effects of sustained government internal security operations, the rift within the Communist Party of the Philippines and the government's reconciliation program have caused the sharp decline in the capability of and popular support for the communist insurgency movement. Peace and reconciliation efforts have contributed significantly to bring back the rebels to the folds of the low. From a peak strength of about 25,200 regular fighters and 15,500 firearms in 1987, the CPP/NPA/NDF was down to approximately 6,800 fighters with 5,410 firearms in yearend 1997. Barangays (villages) under their influence dropped from a high of over 8,500 in 1987 to roughly 400 in 1997 which is less than 1% of the country's 42,000 barangays. With these developments, the communist insurgency problem can be considered as residual.
In accordance with the provisions of Republic Act 8551, the primary responsibility for the communist insurgency problem has been returned to the Armed Forces of the Philippines (AFP) from the Philippine National Police (PNP). The Philippine Army, with the support of the Air Force and the Navy, spearheads the government's counter-insurgency campaign. Our soldiers are responsible for ensuring the safety of communities while at the same time locating and engaging in combat the various rebel armed groups. AFP no its maintain continuous and significant presence in many areas of the country. Tactical operations are mostly limited to sustained low-level patrols. Large-scale operations involving high levels of firepower rarely occur and this is only when sizable enemy concentrations are confirmed. In addition, Army units directly provide services to the local population through medical services, communication facilities and engineering construction and, indirectly, by maintaining roads and bridges for movement and normal commercial activity.
In Southern Philippines, where the MILF is approximately 10,800 strong with about 8,200 firearms, AFP units have adopted a two-pronged approach of simultaneously protecting communities and vital economic projects against acts of terrorism and violence on one hand, and promoting the government's peace initiatives, on the other. AFP units also conduct operations, many in coordination with the local police, against lesser but nonetheless significant threats, posed by local extremist and terrorist groups in Mindanao such as the Abu Sayaff Group and other disgruntled elements which engage in nefarious activities like kidnap-for-ransom and armed actions against AFP troops and policemen.
Along with the Armed Forces' counterinsurgency campaign, the Philippine government has initiated and continues to carry out a Peace process designed to bring the warring and disgruntled elements of our society to the negotiating table. This is to give those on the extreme left and the secessionist rebels in Southern Philippines every opportunity to give peace a chance, to speak out their minds and to offer their own formula so that ways and means to a just and lasting peace can be hammered out.
Peace talks are continuing with the National Democratic Front (NDF). the negotiating body of the Communist Party of the Philippines. The same is true with the remaining segment of the Muslim separatist movement in Southern Philippines, the Moro Islamic Liberation Front. Talks with the NDF during the Ramos administration began in 1992. For almost live years, the talks focused on procedural arrangements until March 16, 1998 When the GRP and NDF panels signed the Comprehensive Agreement on Respect for Human Rights and International Humanitarian Law. This is the first of the four items of the substantive agenda leading to a final peace agreement. Succeeding agenda items will cover socio-economic reforms, political and constitutional reforms and finally, cessation of hostilities and disposition of forces.
With the MILF, an agreement for the general cessation of hostilities was signed last July 18, 1997. This has created a peaceful atmosphere for the continuance of the talks. Ongoing GRP-MILF negotiations are for the discussion of issues aimed at the eventual resolution of MILF claims and demands. It is to be hoped that both sides can reach a peace agreement in the near future.
Economic Development
The key to the sustained development of the Philippines, as envisioned in the Philippine Medium Term Development Program, is a strong national economy. Despite the currency crisis, economic indicators are promising. The growth of the Gross National Product has been rising steadily for the last several years. Steady growth has been reflected in increased exports and imports, reduction of the inflation rate and a rapidly rising volume of foreign investment. As a result of the region-wide currency crisis, the projection for 1997 was adjusted by the National Economic Development Authority from 7.5 percent projected at the start of the year to 4.5 percent. The outlook for the future is still positive, bolstered by the fact that the government has put into place sound macro-economic fundamentals which can cushion currency depreciation.
Continued progress depends on the development of the nation's natural resources and the channeling of investments into key industry area particularly in knowledge-based and information technologies, electronic products, garments and textiles and agriculture. Sustainable economic growth is essential to realizing "Philippines 2000", the national vision to r at string the status of a newly industrializing economy by the turn of the century. In the long term, the Philippines, along with other countries in Southeast Asia, will remain attractive as a global market and investment destination because of its young and educated population a skilled work force, a growing consumer market and demand for infrastructure development.
National economic progress is reinforced by the successful promotion of regional initiatives aimed at greater economic cooperation and freedom of trade. These are being pursued through various economic groupings such as the Asia-Pacific Economic Cooperation, the World Trade Organization and the ASEAN Free Trade Area. A parallel effort is the establishment of regional growth areas such as the East Asia Growth Area which links the Philippine economy in Southern Philippines with Brunei and provinces of Malaysia and Indonesia.
Social Cohesion
Social cohesion is manifested in the harmony that we enjoy amidst the multi-ethnicity of our society. Social cohesion is an important ingredient in the make up of the country's defense posture. It provides the moral base of political will and the support of the people in paying for the cost of developing a no maintaining a credible armed forces. It also insures the mobilization of the citizenry for national defense and security in times of national emergencies. Social cohesion is essential to the successful prosecution of the nation's common defense.
That is why the Social Reform Agenda has been made the centerpiece of the government's agenda in order to fight poverty more effectively, provide livelihood add other economic opportunities, and promote human dignity and social harmony in all sectors of society -farmers, laborers, indigenous people, women, children, disabled persons, disaster victims, youth and students, senior citizens- in all areas of the country. Social reform is crucial in pulling out the real causes of social unrest, dissidence and rebellion which cause instability and disorder. These reforms are slowly occurring as a result of the spirit of cooperation between the Presidency and Congress, supported by a number of cause-oriented groups from business and the community.
Democratic Political processes and institutions, Particularly consultations and it dialogues with various sectors throughout the country, have brought the government closer to the people and forge greater social harmony. This has strengthened the ability of the government to harness the commitment of all sectors of Philippine society a its vision of a prosperous, stable and economically developing nation.
Holistic Approach
The Philippine government realizes the inter-connection between political stability, economic development and social cohesion in the attainment of national security in its comprehensive context. These three constitute the foundations of a "tiger cub" economy and a secure country. Political stability makes normal economic expectations and behavior possible and inspires both domestic and foreign investor confidence. Socio-economic reform contributes directly to stability, collective efficiency, growth and competitiveness.
Realizing the failings of earlier years, the present administration has instituted a holistic approach involving Political, economic and social reforms that have built a society with the following key features today:
* The liberalization of foreign investments, foreign exchange and trade.
* The privatization of government corporations and assets or components thereof, as well as public infrastructure building.
* The deregulation of key industries-telecommunications, banking and financial services, transportation, insurance.
* The institution of financial reforms such as the establishment of a new central bank independent of government and political pressure.
* A comprehensive tax reform package.
* A deeper and broader social reform agenda as the main weapon to fight poverty and inequity.
In defense, the policy thrusts have been threefold:
* The resolution of the internal security problem through peace and development efforts.
* Contribution to regional peace and stability through security and defense arrangements.
* Rebuilding the Armed Forces of the Philippines into a modern and professional force.
In the years ahead, the government's focus will be on the three components of national security: political stability, economic development and social reform. The peace process has not fully run its course. The historic reconciliation achieved with the main body of Muslim rebels still has to yield the fruits of advancement and development for Muslim communities in Mindanao and Sulu, especially in remote and backward villages.
Economic development remains high on the agenda and the government has launched a "pole vaulting" strategy into the 21st century following the Olympic spirit of "Citius, Fortrus, Altrus"(Faster, Stronger, Higher). This strategy forges consensus among the legislative, executive and non-government organizations on the reforms and key development programs for the next decade. It develops advocates and constituencies for the action programs. The objective is to sustain the momentum of economic development so the Philippines can remain competitive in the global economy of the 21 st century. An even greater challenge is the reduction and alleviation of poverty, steadily and substantially, through a combination of employment opportunities and people empowerment.