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An Independent Nation: Not Without Corruption The Philippines achieved full independence on July 4, 1946. Manuel A. Roxas y Acuña was elected its first president, succeeded by Elpidio Quirino (1948-1953), Ramón Magsaysay (1953-1957), Carlos P. García (1957-1961), Diosdado Macapagal (1961-1965), and Ferdinand E. Marcos (1965-1986). Under Marcos, civil unrest broke out in opposition to the leader's despotic rule. Martial law was declared on Sept. 21, 1972, and Marcos proclaimed a new constitution that ensured his role as president. Martial law was officially lifted on Jan. 17, 1981, but Marcos and his wife, Imelda, retained broad powers. In an attempt to resecure American support, Marcos set presidential elections for Feb. 7, 1986. With the support of the Catholic Church, Corazon Aquino declared her candidacy. Marcos was declared the official winner, but independent observers reported widespread election fraud and vote rigging. Anti-Marcos protests exploded in Manila, Defense Minister Juan Enrile and Lt. Gen. Fidel Ramos defected to the opposition, and Marcos lost virtually all support; he was forced to flee and entered the U.S. on Feb. 25, 1986.

The End of U.S. Presence and Rebel Fighting Continues The Aquino government survived coup attempts by Marcos supporters and other right-wing elements. Legislative elections on May 11, 1987, gave pro-Aquino candidates a large majority. Negotiations on renewal of leases for U.S. military bases threatened to sour relations between the two countries. Volcanic eruptions from Mount Pinatubo, however, severely damaged Clark Air Base, and in July 1991, the U.S. decided to abandon it. In elections in May 1992, Gen. Fidel Ramos, who had the support of the outgoing Aquino, won the presidency in a seven-way race. In Sept. 1992, the U.S. Navy turned over the Subic Bay naval base to the Philippines, marking the end of U.S. military presence. Meanwhile, the separatist Moro National Liberation Front was fighting a protracted war for an Islamic homeland on Mindanao, the southernmost of the two main islands. The Philippine army also battled another rebel group, the Moro Islamic Liberation Front. In Aug. 2001, both rebel groups signed unity agreements with the Philippine government. Frequent and violent clashes with these and other terrorist groups have continued, however. Abu Sayyaf, a small group of guerrillas that has been fighting since the 1970s for an independent Islamic state and reportedly has links to Osama bin Laden, gained international notoriety throughout 2000 and 2001 with its spree of kidnappings and murders. Two leaders of Abu Sayyaf were killed in late 2006 and early 2007, dealing a serious blow to the group. The Philippine military has also battled the New People's Army, a group of Communist guerrillas that have targeted Philippine security forces since 1969. International officials reported in June 2003 that Jemaah Islamiyah, an affiliate of al-Qaeda, was training recruits in Mindanao, in the southern Philippines. About 120,000 people have died in the conflicts with rebel groups, and more than 3 million have been displaced.

History The Philippines' aboriginal inhabitants arrived from the Asian mainland around 25,000 BC They were followed by waves of Indonesian and Malayan settlers from 3000 BC onward. By the 14th century AD , extensive trade was being conducted with India, Indonesia, China, and Japan. Ferdinand Magellan, the Portuguese navigator in the service of Spain, explored the Philippines in 1521. Twenty-one years later, a Spanish exploration party named the group of islands in honor of Prince Philip, who was later to become Philip II of Spain. Spain retained possession of the islands for the next 350 years. The Philippines were ceded to the U.S. in 1899 by the Treaty of Paris after the Spanish-American War. Meanwhile, the Filipinos, led by Emilio Aguinaldo, had declared their independence. They initiated guerrilla warfare against U.S. troops that persisted until Aguinaldo's capture in 1901. By 1902, peace was established except among the Islamic Moros on the southern island of Mindanao. The first U.S. civilian governor-general was William Howard Taft (1901-1904). The Jones Law (1916) established a Philippine legislature composed of an elective Senate and House of Representatives. The Tydings-McDuffie Act (1934) provided for a transitional period until 1946, at which time the Philippines would become completely independent. Under a constitution approved by the people of the Philippines in 1935, the Commonwealth of the Philippines came into being with Manuel Quezon y Molina as president. On Dec. 8, 1941, the islands were invaded by Japanese troops. Following the fall of Gen. Douglas MacArthur's forces at Bataan and Corregidor, Quezon instituted a government-in-exile that he headed until his death in 1944. He was succeeded by Vice President Sergio Osmeña. U.S. forces under MacArthur reinvaded the Philippines in Oct. 1944 and, after the liberation of Manila in Feb. 1945, Osmeña reestablished the government.

The government declared a state of emergency in November 2009 in the southern province of Maguindanao on the island of Mindanao following the massacre of a group of 57 people who about to fill out election nomination forms for a local leader who was challenging rival Andal Ampatuan, Jr., in the race for provincial governor. Officials and relatives of the victims blame Ampatuan's father, Andal Ampatuan, Sr., for organizing the attack. Ampatuan, himself a a former provincial governor, is an ally of President Arroyo. In February 2010, police arrested nearly 200 people, including both Ampatuans, in connection with the attack.

In elections in May 2010, Benigno "Noynoy" Aquino, a senator and the son of former president, Corazon Aquino, was elected president. He won about 40% of the vote. Former president Joseph Estrada placed second in the race, with about 25%. Aquino campaigned on a promise to crack down on corruption, which he said would help to reduce poverty.

Arroyo faced a political crisis in the summer of 2005, after admitting to calling an election official during 2004's presidential race. A taped phone conversation between Arroyo and the official seemed to suggest that she had tried to use her power to influence the outcome. She survived an impeachment motion in July.

Arroyo declared a state of emergency in February, saying the government had foiled an attempted coup by the military. She also banned rallies commemorating the 20th anniversary of the ouster of Ferdinand Marcos. Some observers dismissed the report of the coup attempt as political maneuvering to gain support and weaken the opposition. On June 24, President Arroyo met with Pope Benedict XVI at the Vatican, where she announced that the Philippines was abolishing the death penalty.

In Sept. 2007, former president Joseph Estrada was convicted of corruption and sentenced to life in prison. The government said in Nov. 2007 that it had reached a deal with the separatist Moro National Liberation Front that set boundaries for a Muslim homeland on the southern island of Mindanao. The deal fell apart in Aug. 2008 when fighting broke out between the rebels and government troops following a ruling by the Supreme Court that blocked the agreement. More than 160,000 Filipinos fled their homes and sought refuge from the violence. Peace talks resumed in Dec. 2009.

The big problem regarding the real estate market in the country are neither the prices nor the fact that third of the year from May to September the country of more than 7,000 islands is attacked by severe typhoons. The main obstacle before the foreigners who try to settle down is put by the government. Foreigners aren't allowed to own property, at least aren't allowed to own the majority stakes in any kind of property. The land the residence is built upon also cannot be owned by foreigners even if they have special Resident/Retiree's Visa (SRRV). This visa holders although can buy condominiums or townhouses. Former citizens of the Philippines cannot buy land in excess of certain amount.

The solutions to these problems look a bit strange for some. They imply marrying Philippines' citizens who officially hold the property titles or hold the majority stakes or at least hold equal stakes with the foreigners. The major drawbacks are that such "arrangement" being strictly informal may create legal problems for the foreigners in case of divorce or death of the Philippine spouse. The divorce isn't allowed in the Philippines but technically speaking it may be done in many countries the foreign spouses come from. Many experts suggest enhancing the marriage with additional contract on the use of property in case of such events. To qualify for SRRV Visa the foreigners need to be older than 35 and to meet depositary requirements, in most cases between $50,000 and $75,000 for the principle applicant. For these visa holders the marriage to Philippines' citizen isn't a necessary step in order to buy a property.

Country profile:Area: 300,000 sq kmPopulation: 87.9 million (July 2005 est.)Population growth rate: 1.84% (2005 est.)Net migration rate: -1.49 migrant(s)/1,000 population (2005 est.)Life expectancy at birth: 69.91 yearsTotal fertility rate: 3.16 children born/woman (2005 est.)GDP per capita: purchasing power parity $5,000 (2004 est.)Distribution of family income (Gini index): 46.6 (2003)Main trading partners: U.S., Japan, China, Singapore, Hong Kong.Internet users: 3.5 million (2002)

The country has one of the highest population growth rates in the region, with at least three babies born every minute. Its population reached 88.57 million at a census in August last year, up from 76.5 million in 2000, the government said on Thursday. The figures come as the government grapples with soaring prices of rice, due at least partly to the inability of the country to grow enough of the staple to feed its rapidly growing population. As a measure of the seriousness of the problem, Manila has temporarily halted conversion of agricultural land for property development, hoping to ring-fence paddy fields to meet the food needs of the country.

The country's top economic planner said population control policies needed to be reviewed, but promoting artificial birth control, anathema to the Church, is not a likely option. "The population is increasing and it means that government has to more vigorously implement its population policy, which is responsible parenthood and the advocacy for natural family planning," Economic Planning Secretary Augusto Santos told Reuters. "I think the population commission will have to review its policies," he added. "We really need greater efforts. It means we have to work harder to make the economy function more properly and more smoothly." At least one-third of the country's population are poor and the number of poor is growing faster than the population.