CHAPTER III

THE PHYSICAL SETTING

The Philippines is an archipelago of about 7,000 islands stretched along the southeast rim of the Asian continent. To the north, the small islands north of Luzon are visible from Formosa on a clear day while some 1,100 miles to the south the southernmost island in the Sulu group lies close to North Borneo. Only 463 of the islands are a square mile or more in size. Eleven islands account for 94 percent of the total land area of about 115,000 square miles an area slightly larger than the State of Arizona.1

Geographic features include low marshlands, coastal plains, plateaus, extensive valleys, and elevations ranging from a foot or two above sea level to peaks nearly 10,000 feet high. About half of the land area consists of forests, but productive plains are well distributed and there are four large river valleys. The three most important geographic divisions are the island of Luzon and adjacent islands; the central group known as the Visayas; and the island of Mindanao together with the Sulu Archipelago. Palawan and small adjacent islands to the west constitute a fourth region.

In northern Luzon the Cagayan River with its tributaries drains an extensive valley bounded on the east by the Sierra Mountains and on the west by the Cordillera mountain range. The mountainous areas yield much of the country's gold and other minerals, while the fertile valley is the heart of Philippine tobacco culture.

Central Luzon, drained by the Pampanga River flowing south to Manila Bay and by the Ango flowing north into Linguyan Gulf, is the "granary" of the Philippines and also important in sugar growing. The Zambales mountains lie to the west of this plain, and the southern Sierras form the eastern border.

Southern Luzon, including the extensive peninsula areas southeast and southwest of Manila (known as the Bicol region), is largely of volcanic origin, with rolling hills and short valleys. The

1 These islands, in order of size, are Luzon, Mindanao, Samar, Negros, Palawan, Panay, Mindoro, Leyte, Cebu, Bohol, and Masbate.

a The main Visayan islands are Samar, Negros, Panay, Leyte, Cebu, Bohol, and Masbate. The designation derives from the Visayas, chief ethnographic group of Filipinos inhabiting the islands.

highland area of southern Luzon is the most important source of iron ore, and coconut trees grow on the rich volcanic plains.

The Visayan islands are generally mountainous, with no large river valleys but with coastal plains of varied importance. Negros Island, one of the main sugar-producing areas, contains intensely cultivated level areas.

Mindanao's two large river valleys constitute the most important of the underdeveloped agricultural regions in the Philippines. Drained by the Rio Grande de Mindanao, the rich Cotabato valley, exclusive of marshlands, covers some 1,800 square miles. The Agusan River valley in northeastern Mindanao is about 93 miles long and averages 17 miles in width, but contains considerable marshland. The narrow, mountainous peninsula area of western Mindanao extends southwest toward Borneo, with which it is connected by a submarine plateau supporting the numerous small islands forming the Sulu Archipelago.

The lowland areas of the Philippines have a year-round hot, humid climate. There are, however, considerable differences within the area caused mainly by variations in elevation. The annual mean daily maximum temperature at Manila is about 89° F.; at Aparri (northernmost weather station), 86° F.; and at Jolo (southernmost station), 93° F. Annual mean temperatures at these points are 73°, 63°, and 68°, respectively.

Although abundant rainfall characterizes the country, there is considerable regional variation. The annual average at Manila is 82 inches; at Baguio in the mountains north of Manila, 178.7 inches; and at Zamboanga on Mindanao, 42 inches. Winds may be classified in general as the northeast monsoon, from October to January, inclusive; east to southeasterly trade winds from tropical, highpressure areas in the Pacific, February to April; and the southwest monsoon for the rest of the year. Trade winds are usually light to moderate, and cooling breezes from the sea help considerably to relieve the otherwise oppressive heat and humidity.

In the Manila area, and generally in coastal regions which are open only to the southwest monsoon, there is a pronounced dry season from November through June; December, January, and February are the most pleasant months. The hottest weather is in April and May, with little rain to

relieve the oppressive atmosphere. Rainfall is abundant from July through October, July and August being the rainiest months. Baguio, the "summer capital," 5,000 feet above sea level, is much cooler than Manila, 175 miles to the south.

In a large part of northeastern Mindanao, on almost all of Samar and on the eastern coast of Leyte, as well as in other areas in the paths of northeasterly trade winds, there is no pronounced dry season. The greatest amount of rain generally falls in November and December. In most of central and southern Mindanao rain is distributed more or less evenly throughout the year.

All of Luzon and most of the northern part of the Visayan Islands are exposed to typhoons which occur most frequently between July and November, although they have been known as early as April and as late as December. About one-third of the serious typhoons strike Luzon north of latitude 15° N., but the central area between latitudes 11° and 13°30′ N. is also subject to typhoon damage. Between the two areas, in the belt of about 100 miles in which Manila is located, typhoons are relatively infrequent. South of the eleventh parallel typhoons are much less frequent, and south of the eighth parallel they rarely occur.

NATURAL RESOURCES

Natural resources of the Philippines are varied, abundant, and generally regarded as capable of considerable further development. The country is essentially agricultural, but there are large areas of commercially valuable timberlands; certain mineral reserves are believed to be extensive; and the seas and island waters yield a variety of marine products.

Mindanao is considered the richest region in terms of overall potentialities. Here are the greatest agricultural development possibilities, and mineral reserves are important. Moreover, natural conditions in the central part of the island are favorable for the development of hydroelectric power, of particular significance since at the present stage of economic development the country is deficient in both power and fuel.

Agricultural resources have been for centuries the mainstay of Philippine economy, and since the the early 20th century their development has been encouraged by free access to the American market for such products as sugar, coconut oil, cigars, and abaca cordage. The raw material demands resulting from two world wars further stimulated agricultural enterprises. In recent years 80 to 85 percent of Philippine exports have been products of agricultural origin. The continued development of agricultural resources holds an important place in present economic planning.

Of the millions of acres of arable land suitable for the cultivation of a variety of tropical prod

ucts only about half are actually under cultivation. Yields per acre, moreover, are low compared with those in more densely populated countries in the Far East so that increased production on the present cultivated area is considered possible. Attention in recent years has been focused increasingly on the extension of fertilization and conservation practices and on means of improving the primitive agricultural techniques, expanding cultivated areas, and diversifying agricultural output. Much remains to be done.

Rice, the staple item of diet, is by far the principal product, but many other food crops including corn and various root crops are raised for domestic consumption. Nevertheless, the country is dependent upon imports for a substantial portion of its food requirements, particularly flour, dairy products, and meats. Wheat has not been grown successfully in the Philippines, nor is animal husbandry developed significantly beyond the point of supplying domestic work animals and hogs and chickens for local consumption. Leading cash crops are coconuts, sugarcane, abaca, and tobacco.

About half the land area of the Philippines is covered with forests, including extensive stands of valuable hardwoods. Only a small fraction of the commercial forest area is under concession, however, and only one type of hardwood has been marketed abroad to any great extent. Adequate utilization of valuable forest assets has been impeded by a lack of organization and management in the forestry industry. Indiscriminate clearing of timberlands for agricultural plantings has become a serious threat to timber reserves. Coastal seas and inland waters yield a wide variety of edible fish but most waters are reported as having insufficient fish population for economical modern large-scale operations. Lack of organization of the fishing industry and inadequate governmental supervision and regulations are considered deterrents to the scientific development of fishery resources. Additional deep-sea fishing and pond culture offer possibilities to increase fish supplies and reduce the heavy expenditures for fish products. Other marine resources include shells and sponges.

No comprehensive geological survey has been made to determine the full extent of mineral deposits but it is generally accepted that they are large in relation to present utilization. A mineral survey was recently initiated with United States aid; and the findings are expected to provide a much better indication of the size of Philippine mineral deposits. The survey will be of great assistance to the mining industry, which has generally lacked capital for adequate exploration.

To date Philippine mining has concentrated mainly on gold, copper, iron, chromite, and manganese, although deposits of lead, zinc, nickel, and sulfur-bearing pyrites, among other minerals, are known to exist. Most ores are of relatively low

grade, and the country is lacking in coking coal. Notwithstanding favorable surface indications, oil has not been found in commercial quantity.

In 1952 exports of ores, concentrates, and gold bullion accounted for about 7 percent of total Philippine export trade and mining generated less than 1 percent of total national income.

THE PEOPLE

The population of the Philippines was estimated, as of 1954, at somewhat less than 22 million. With one of the highest birth rates in the world the population increased some 25 percent from 1939 to the time of the latest census (October 1948), which recorded 19,234,180 persons. The present rate of increase is estimated at about 2 percent annually. The considerably larger population since World War II has placed severe demands upon public facilities and services, which had suffered widespread destruction in wartime. However, in view of the country's endowment in natural resources and the large areas of unutilized but arable land, the Philippines could support a much larger population.

The 1948 census showed nearly half the people living in the plains and valleys of Luzon, most of them in the Manila area, the business and cultural center of the country. Other densely populated regions are the coastal plains of Panay, Cebu, Bohol, and Leyte. Mindoro, Samar, Masbate, Palawan, most of Mindanao, and parts of Luzon, however, are sparsely settled. The heavy concentration of inhabitants in central Luzon, contributing in part to the agrarian unrest in that area, presents a problem of maldistribution of population which the Philippine Government has long sought to solve. Recent inducements offered for homesteading and land settlement in Mindanao have been only partially successful in meeting the problem.

The dominant racial stock is Malayan, but there are many distinct ethnographic groups. Chief among the groups are the Tagalogs in central and southern Luzon, Visayans of the central group of islands, Ilocanos of northern Luzon, and Moros (Mohammedan Filipinos) who are concentrated in central Mindanao and the Sulu Archipelago. So-called "pagan" tribes (chiefly Igorots, Ifugaos, and Kalingas) are located in the northern uplands of Luzon, while Negritos, believed to be remnants of Philippine aborigines, survive as hill tribes in remote and scattered areas.

The foreign population was estimated several years ago at over 200,000, of whom three-fourths were Chinese. Americans number about 20,000, exclusive of Government and military personnel. Spaniards number a few thousand and there are small numbers of other Europeans. Intermarriage of natives with other nationals, chiefly Spaniards and Chinese, has resulted in a considerable number of mestizos.

The Chinese minority, less than 2 percent of the total population, exercises influence disproportionate to its size. Álthough scattered throughout the country, the Chinese are concentrated chiefly in cities and towns where they dominate the retail trade and handle a large part of the export-import business. They also own and operate most of the rice mills and many lumber mills and serve as storekeepers and moneylenders in rural areas. Intermarriage with Filipinos is common, but the Chinese maintain the identity of their community, having their own schools, newspapers, and organizations.

American residents in the Philippines are engaged chiefly in business and trade. There are American-owned schools and hospitals and American church missions.

About 80 percent of the people are Roman Catholics; 9 percent, members of the Aglipayan or Philippine Independent Church (which in 1902 broke away from the Roman Catholic Church); 2 percent, Protestants; 4 percent, Mohammedans; and 4 percent, pagans.

The Filipinos lack a common language. According to estimates some 87 languages and dialects are spoken, the principal ones being Visayan, in the central islands, Tagalog in the area near Manila, and Ilocano in northwest Luzon. Filipinos from different regions cannot readily understand each other's native languages and usually resort to English, which is spoken by more than a quarter of the population. English is the language of instruction in the schools and virtually the sole language of Government, trade, and industry. Books, newspapers, and journals of general circulation are printed in English. Spanish is still spoken in Manila and certain provincial areas, but by only about 3 percent of the people, mainly of the older generation.

In an attempt to develop a common language, the Government has made the National Language, which is based on Tagalog, a required course in the schools. There are three official languages-English, Spanish, and the National Language. The law stipulates, however, that in case of doubt in official documents the English text shall prevail.

EDUCATION AND HEALTH

Despite the multiplicity of languages, the Philippines has achieved the highest literacy level in the Far East except for Japan. Literacy among persons of 10 years and older was estimated in 1948 at about 60 percent, compared with 48 percent 10 years earlier. In the year 1950-51 schools of all types except kindergartens totaled 20,986. Of this number 19,116 were elementary schools; 1,092, secondary; 302, collegiate; and 476, special Vocational schools. Students enrolled totaled 5,175,000, of whom 84 percent were in elementary grades.

The educational system, which suffered greatly during World War II, has been largely reconstructed and some phases have been expanded. War-damage funds under the Philippine Rehabilitation Act contributed substantially to the postwar development, and further rehabilitation of vocational schools and the specialized training of teachers are included in the present American aid program. Special emphasis is being placed on vocational agricultural schools at the secondary level, but the program also includes the training of teachers from the Provinces in various handicrafts. The Philippine Government's emphasis on education is indicated by the relatively large proportion of national governmental expenditures used for this purpose-23 percent in 1953.

Health facilities in the Philippines were seriously affected by World War II. Many facilities of public sanitation were completely destroyed; others deteriorated to the point of menacing the health of the population. Steps taken by the American military forces in the immediate postwar period, however, prevented the spread of disease and relieved the effects of the serious malnutrition which had developed during Japanese occupation. Later, the U. S. Public Health Service inaugurated a program of rehabilitation of health and sanitation facilities; techniques developed during the war in the mastery of malaria and other diseases were applied to the Philippines and hospitals and laboratories were reconstructed. Even with the measurable improvement since the war, standards of sanitation and health controls in the Philippines are far below those prevailing in the United States. The water supply was not potable in all rural areas and sewage disposal was inadequate in Manila as late as 1952. Although individual Filipinos are notably clean, an understanding of methods of contraction and transmission of disease has not generally been acquired. Pulmonary tuberculosis, existing in epidemic form, is the most serious public health problem; skin diseases are prevalent; and typhoid fever is endemic throughout the Philippines. Americans are susceptible in general to influenza, dengue fever, and respiratory and gastrointestinal disturbances.

In recent years only about 3 percent of the total national budget has been appropriated by the Government for the Department of Health. With assistance provided by the United States through the Foreign Operations Administration, the Philippines is carrying on further rehabilitation of hospitals and laboratories and the establishment of health centers. The control of endemic diseases, especially malaria, and tuberculosis and nutritional diseases is also receiving increased attention. A school health program has been inaugurated and village sanitation controls extended, particularly in connection with water purification. The United Nations International Children's Emergency Fund is assisting in the control of tuberculosis through vaccination.

THE POSTWAR ECONOMY

World War II, which included 3 years of Japanese occupation, brought complete disruption to the Philippine economy. In addition to a loss of about a million persons and the widespread destruction of homes, schools, and hospitals, the physical economic plant suffered extreme damage. Industries, port facilities, roads, bridges, and communications were destroyed. There were acute shortages of food, clothing, and all other consumer goods.

Production Levels

By 1954, 9 years after the end of the war, the Philippines had rehabilitated its economy. Although a few segments are below prewar levels, the overall economy today is functioning at a higher level than before the war. After adjustment for price changes, the gross national product for 1953 exceeded that of 1938 by more than 80 percent. Construction activity, trade and commerce, and "other services" are probabaly largely responsible for this growth in gross national product in the postwar years. Agriculture and manufacturing production, while above prewar levels, increased far less rapidly than did the gross national product. In 1953 combined agricultural, manufacturing, and mining production was only about 25 percent above that of prewar years. Output of electricity was more than four times that of 1938.

The prewar Philippine economy was basically attuned to production for subsistence and, in the case of a few products, particularly coconut, sugar, and hemp, for export markets. Superimposed on the predominantly agricultural base were a few industries. Postwar economic activity has been directed primarily to restoration of the prewar economic pattern. Some progress has been made, however, not only in increasing the importance of industry but toward diversification of the industrial sector.

The prosperity of the Philippines is heavily dependent upon a few export products which provide the necessary foreign exchange to purchase manufactures abroad. Copra and coconut products, sugar, and abaca are the key exports, and the fact that the supply is relatively inelastic makes the Philippine economy particularly sensitive to price fluctuations in the world commodity markets. Except for the period of boom caused by the war in Korea, these three export products have been among the weaker commodities in postwar world markets. Philippine production of copra and coconut products is well above prewar levels, with the Philippines filling the gap in world supplies left by lower Indonesian output. Sugar production is now approximately at prewar levels. Although abaca is virtually a Philippine monopoly,