Ramon Magsaysay

“ I am particularly concerned about any move that would bring economic difficulties to our average citizen. In countries with which we trade, inflation and other economic problems are being aggravated by the situation in the Middle East. The impact of such developments on our economy is inevitable. We cannot afford to create more problems in our country. Progress is possible only in an environment of economic stability.
These are the steps which we have taken towards national security, rural uplift, and economic development. ”

“ We will reach this goal by a balanced agricultural and industrial development. Thus we must continue to work towards reshaping our economic structure with the industrial side accounting for a rising proportion of our total output in the years ahead. We must foster an economy in which industrial expansion and agricultural progress are complementary. Industry can draw its raw materials from agriculture; in turn, as our farmers increase their income, the products of industry will have an expanding domestic market. ”

“ Government service is only as efficient as the individual public servant is efficient. The public servant must, therefore, be provided with the necessary incentives to work efficiently and with the recognition that his efforts deserve. ”

“ The promotion of the well-being of our masses, through the measures I have described, has given them opportunities for a richer and fuller life [11] which they have never enjoyed in our history. It has restored their faith in Government as an instrument for the political, economic, and social advancement of all the people, not of just a privileged few. ”

“ We must accelerate the pace of economic progress. Mindful of our duty to our people and determined in our goals, we must surpass our accomplishments of the past three years with a renewed dedication to the public welfare. ”

“ Never before have our small farmers and tenants been afforded so much cheap credit, freeing them from the evils of usury and helping them to improve their lot.
We should now extend the proven benefits of cooperative organization throughout the country. We should carry the cooperative spirit not only to all the barrios but also to the towns and cities, by stimulating the establishment of credit unions, consumers’ cooperatives, and wholesale cooperative associations. In support of this program, we are giving earnest consideration to the advisability of establishing a bank for cooperatives. ”

“ We have pressed our program of social justice.
From the outset of our administration, we have emphasized the need for reforms and improvements in our land tenure system.
Similarly, we have stressed the urgency of promoting the development of our rural communities.
LAND REFORMS
Through tenancy and land reform measures, we have improved the living conditions of our tenants and farmers. More than that, these new measures have opened up the path to land ownership. But ownership alone will not ensure to the small farmer the full enjoyment of his land. ”

“ We have provided for the national security, both within and without. Our masses, the vital object of our joint concern, have received priority in our efforts. Their well-being is para­mount. We have made progress in the economic sphere. ”

“ The high level of Government spending for development and the expansion of credit obviously carry with them inflationary tendencies which affect monetary stability. Rising prices and other inflationary pressures in the principal industrial countries have added to these tendencies. We have managed our fiscal and monetary policies in such a way as to minimize the adverse effects of these pressures on internal and external stability. These policies and the accompanying increase in local production have kept these inflationary trends under control. ”

“ However, under prevailing world conditions and in our present state of economic growth, the continuation of economic controls is a necessity. I would like to reiterate the view which I expressed on March 11, 1956, before the first Trade National Convention that a system of exchange and import controls is still a necessary instrument today if we are to meet the requirements of our development projects and at the same time maintain the inflow of essential consumer goods not locally available. ”

“ Communism, with its ever-shifting tactics, remains a threat.
We cannot afford to falter in our social justice program. The masses of our people, the base of our democracy, will continue to be the beneficiaries of our special concern. ”

“ On January 3, 1957, the National Economic Council submitted its recommendations for updating the 1954 economic development program. These recommendations included a system of industrial priorities to govern the allocation of foreign exchange, the administration of the Government’s fiscal operations, and the extension of credit. We have adopted this industrial priority system as a guide in the implementation of projects which will make the maximum contribution to production, employment, and income. ”

“ We have not relaxed vigilance against misconduct in office. Public office is a stern task-master, and among its exacting requirements is that a public servant must not only be blameless, but above suspicion. ”

“ The people, whose welfare is the reason for the existence of the State, is also its most important resource. To promote this welfare and to sustain this resource, we have greatly expanded our health programs, especially where it is most needed—in the rural areas. ”

“ The improvement in agricultural production and the general confidence among the rural people in the various measures introduced for their benefit are due in large measure to the agricultural extension workers and other technicians in the field. The teachers and school administrators connected with the community schools, the purok organizations, and the community development officers are equally effective in helping our communities make fuller use of their own capabilities and resources. ”

“ The significant record of production over the last few years was supported by a credit policy which continued to emphasize liberal assistance to projects whose contribution to the national income and to economic development was deemed high. More credits for socially desirable projects were made available by the increased number of branches and agencies of domestic financial institutions and the creation of more cooperatives and rural banks. ”

“ Legislative authority is also necessary for a permanent office which would budget our requirements, supervise deliveries, and oversee the proper utilization and distribution of reparations goods and services in accordance with definite criteria.
ECONOMIC STABILITY
While we are engaged in the vital tasks of economic development, the Government must avoid unsound and dangerous policies which would nullify our gains.
There has been some agitation for the immediate and total removal of economic controls. As an ideal goal, an economy free from Government control is of course to be desired. ”

“ They would always be a drag on the entire nation. Their well-being is the solid foundation for real progress in economic development.
ECONOMIC DEVELOPMENT
Our primary economic goal has been to strengthen and broaden the base of our economic activities. For unless a greater number of our people are engaged in productive enterprises sufficiently diversified to supply our basic necessities, increase the opportunities for employment, and raise the income of our workers, our economic structure will be weak and lopsided. ”

“ We have worked hard to assure that our Government continue to protect the liberty and dignity of the individual. We have discharged the positive duty incumbent on gov­ernment of insuring the enjoyment of social and economic rights under the more complex conditions of this age. ”

“ Our Armed Forces, having broken the back of the Communist armed rebellion, continue to seek out and destroy dissident remnants.
However, our military success has caused the Communists, abetted by foreign agents, to concentrate on the subversive phase of their movement. Their objective to overthrow the Government remains. ”

“ We have greatly increased public medical and hospital facilities. Yet, much more is needed to meet the increasing needs of our people. We must continue to prosecute our public health program with vigor. ”

“ The advances made in public education are no less significant. We have continued to give support and encouragement to the education of our youth, particularly in the remote communities. The increase in the number of schools and school teachers during the last three years has been considerable. We now have 104,250 teachers, compared with 91,665 three years ago. From 23,600 public schools in 1953, the number has increased to 26,370 in 1956. Our pre-fabricated school building program has assisted in providing during the last two years additional schoolhouses for the barrios. ”

“ Complementary to the steps towards the development of the metallurgical industry, the Government should give impetus to further mineral exploitation, particularly of iron and other base metals. The large nickel-iron reserves in Nonoc Island, Surigao, which is now within a government reservation, should be opened for development. ”

“ The volume of national production has increased. In 1956, the total volume of farm, forest, mineral, and manufacturing production was higher by 30 per cent than that of 1953. Farm and forest production rose by 26 per cent; mineral production, by 11 1⁄2 per cent. The output of our manufacturing industries registered a gain of 38 per cent, the highest made in any sector of the economy. This rise in overall production is reflected in the national income. In 1953 the national income was 7 billion, 234 million pesos. ”

“ Collective bargaining has gained general acceptance. The Government has promoted regional labor-management conferences that have strengthened the basis of individual peace. Today Philippine labor enjoys greater security ever before. ”

“ Two principal factors have contributed to the moral and material uplift of the people in our rural areas; namely, the rapid organization and dynamic operation of the farmers’ cooperatives and the speedy implementation of the rural health program. ACCFA has organized a total of 416 farmers’ cooperative marketing associations (FACOMAs) with paid-up capital of nearly P5 million. In 1953, marketing cooperatives with 6,643 members operated in 110 barrios. Today, these cooperatives exist in 10,314 barrios in 47 provinces, with a total membership pf 241,000. ”

“ As the implementing arm of the Government to carry out its part, pursuant to the economic program, a national, development authority charged with this function and with the supervision of government corporations is definitely needed. ”

“ To insure a more effective distribution of public funds among essential and strategic development projects, the Budget commission has prepared a five-year program of public investment. In coordination with this program, the Central Bank has formulated a five-year foreign exchange budget designed to meet the most important requirements of both private and public investments for foreign exchange. ”

“ The rate of land resettlement and land purchase for redistribution has not reached our expectations. It must be accelerated. But in another phase of land tenure improvement—the issuance of land patents—we have made unprecedented progress. ”

“ This fact not only reflects our intensified efforts in public land distribution but also attests to a significant advance in land reform. It means that we are setting up thousands of small independent farmers on land of their own, with the opportunity to work out a decent living for themselves and their families. ”

“ I realize that the success of all these policies and the effective use of all these instruments will depend on the extent to which the Government can create a climate that will encourage private investments. ”

“ Since 1954, we have vigorously campaigned against the exploitation of tenants by their landlords. We are succeeding. We have helped the tenants secure a greater share of the fruits of their labors. Last year, the Court of Agrarian Relations was established. ”

“ This will bring the total irrigation area to 556,939 hectares, which is about five times that irrigated by the systems constructed from 1907 to 1953.
LABOR
Substantial gains have also been in the field of labor. We have encouraged the growth of strong and democratic unions. For every worker who held a union card at the beginning of our administration, there are now three. The number of registered labor unions reached a total of 2,216 in 1956, representing an increase of nearly 300 per cent over of that 1954.
We have given vitality to the Magna Charta of labor and other labor laws. ”