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Many of the most intractable problems in the Philippines can be traced to the country's colonial past. One major source of tension and instability stems from the great disparity in wealth and power between the affluent upper social stratum and the mass of low-income, often impoverished, Filipinos.
In 1988 the wealthiest 10 percent of the population received nearly 36 percent of the income, whereas the poorest 30 percent of the population received less than 15 percent of the income.
The Philippine archipelago lies in Southeast Asia in a position that has led to its becoming a cultural crossroads, a place where Malays, Chinese, Spaniards, Americans, and others have interacted to forge that unique cultural and racial blend known to the world as Filipino. The archipelago numbers some 7,100 islands and the nation claims an exclusive economic zone (EEZ) of 200 nautical miles from its shores.
The Philippines has a tropical marine climate dominated by a rainy season and a dry season. The summer monsoon brings heavy rains to most of the archipelago from May to October, whereas the winter monsoon brings cooler and drier air from December to February.
The Philippines continued to be primarily a rural society in 1990, despite increasing signs of urbanization. The family remained the prime unit of social awareness, and ritual kin relations and associations of a patron-client nature still were the basis for social groupings beyond the nuclear family, rather than horizontal ties forged among members of economically based social classes.
The Philippines Economy experienced considerable difficulty in the 1980s. Real gross national product (GNP) grew at an annual average of only 1.8 percent, less than the 2.5 percent rate of population increase. The US$668 GNP per capita income in 1990 was below the 1978 level, and approximately 50 percent of the population lived below the poverty line. The 1988 unemployment rate of 8.3 percent (12.3 percent in urban areas) peaked at 11.4 percent in early 1989, and the underemployment rate, particularly acute for poor, less-educated, and elderly people, was approximately twice that of unemployment. In 1988, about 470,000 Filipinos left the country to work abroad in contract jobs or as merchant seamen.
The 1987 constitution returned the Philippines to a presidential system. The national government is in theory highly centralized, with few powers devolving to provincial and municipal governments. In fact, local potentates often reserve powers to themselves that the national government is not even aware of. The national government consists of three branches: the executive, headed by the president; two houses of Congress, the Senate and the House of Representatives; and the Supreme Court, which heads an independent judiciary. A bill of rights guarantees political freedoms, and the constitution provides for regular elections.