Implementation of Martial Law

In January 1972, Ramos was appointed head of the Philippine Constabulary, then a major service branch of the Armed Forces of the Philippines,^[13] which functioned as the country's national police. He served at this post at the time Ferdinand Marcos imposed Martial Law^[5] on September 21, 1972,

In 1975, all civic and municipal police forces in the country were integrated by decree, and it became known as the Integrated National Police (INP), which was under the control and supervision of the Philippine Constabulary. As head of the PC, Ramos was ex officio the INP's first concurrent Director-General.

Last years of the Marcos administration

Martial Law was formally lifted nine years later on January 17, 1981, but Marcos retained absolute powers. Due to his accomplishments, Ramos was one of the candidates for the position of Chief of Staff of the Armed Forces of the Philippines in 1981, as replacement to the retiring General Romeo Espino who was the nation's longest serving chief of staff. Ramos lost to General Fabian Ver a graduate of the University of the Philippines, whom Marcos appointed to the top military post. Instead Ramos, a cousin of Marcos was named AFP Vice-Chief of staff in 1982, and promoted to the rank of three-star general.

On May 12, 1983, a new unit in the former Philippine Constabulary was organized to deal with so-called "terrorist-related" crimes, and named as the Philippine Constabulary Special Action Force^[14] as a requirement of General Order 323 of Philippine Constabulary Headquarters. Fidel Ramos and Gen. Renato de Villa were the founders of the unit. De Villa tasked Rosendo Ferrer and Sonny Razon to organize a Special Action Force.^[15] Subsequently, a training program called the SAF Ranger Course, was used to train the 1st generation of SAF troopers, which numbered 149.^[16] Of that number, 26 were commissioned officers while the rest were enlisted personnel recruited from a wide range of PC units such as the defunct PC Brigade, the Long Range Patrol Battalion (LRP), the K-9 Support Company, PC Special Organized Group, the Light Reaction Unit (LRU) of PC METROCOM, the Constabulary Off-shore Action Command (COSAC), and other PC Units.^[16] Later on, they changed the name of the course to the SAF Commando Course.^[16]

On August 8, 1983, during a speech in Camp Crame to commemorate Philippine Constabulary Day, Marcos announced his removal of Defense Minister Juan Ponce Enrile from the chain of command, and the creation of a new arrangement with himself as Commander-in-Chief of the Armed Forces replacing AFP Chief of Staff Gen. Fabian Ver. Marcos also removed the operational control of the Integrated National Police from the Philippine Constabulary under Gen. Ramos and transferred it under the direct control of Gen. Ver; the Constabulary then had only administrative supervision over the INP.

Philippines 2000

Ramos' policies were organized around a socio-economic program dubbed "Philippines 2000",^[24] which envisioned the Philippines achieving a newly industrialized country status by the year 2000 and beyond.

The five points of the program were:

• Peace and Stability
• Economic Growth and Sustainable Development
• Energy and Power Generation
• Environmental Protection
• Streamlined Bureaucracy

Peace with armed groups

Contrary to expectations as a former military general, Ramos made peace with the country's various armed rebel groups, kickstarting the process by creating a National Unification Commission (NUC) and appointing Haydee Yorac to be its chair.^[25]

Upon the recommendation of the NUC, Ramos eventually decided to grant amnesty to the rebel military officers of the Reform the Armed Forces Movement (RAM) led by Col. Gregorio "Gringo" Honasan and Capt. Proceso Maligalig.

Ramos was instrumental in the signing of the final peace agreement between the government and the Moro National Liberation Front (MNLF) led by Nur Misuari in 1996.

Although he battled Communist rebels as a young lieutenant in the 1950s, Ramos signed into law the Republic Act No. 7636,^[26] which repealed the Anti-Subversion Law.^[27] With its repeal, membership in the once-outlawed Communist Party of the Philippines became legal.^[28] It was also during his presidency that the Comprehensive Agreement on Respect for Human Rights and International Humanitarian Law (CARHRIHL), which provided a mechanism to monitor human rights abuses in the course of operations was signed between the government and the CPP on 16 March 1998.^[29]

Economic reforms

Economy of the Philippines under
President Fidel Ramos
1992–1998

Population
1992	${\displaystyle \approx }$ 63.82 million
Gross Domestic Product (constant 1985 prices)
1992	Ph₱ 718,941 million
1997	Ph₱ 893,151 million
Growth rate, 1992–1998 average	4.9%
Per capita income (constant 1985 prices)
1992	Ph₱ 11,265
1997	Ph₱ 12,147
Total exports
1992	Ph₱ 250,610 million
1997	Ph₱ 743,469 million
Exchange rates
1 US$ = Ph₱ 29.47 1 Ph₱ = US$ 0.034
Sources: FIDEL V. RAMOS [4]

During his administration, Ramos began implementing economic reforms intended to open up the once-closed national economy, encourage private enterprise, invite more foreign and domestic investment, and reduce corruption. Ramos ended the government’s monopoly over the skies and opened aviation to new players.^[30]Ramos was also known as the most-traveled Philippine President compared to his predecessors with numerous foreign trips abroad, generating about US$20 billion worth of foreign investments to the Philippines. To ensure a positive financial outlook on the Philippines, Ramos led the 4th Asia Pacific Economic Cooperation (APEC) Leaders' Summit in the Philippines in November 1996.

Under his administration, the Philippines enjoyed economic growth and stability. The Philippine Stock Exchange in the mid-1990s was one of the best in the world and his visions of 'Philippines 2000' that led the country into a newly industrialized country in the world and the "Tiger Cub Economy in Asia".^[31]

Power crisis

At the start of Ramos' tenure, the Philippines was experiencing widespread blackouts due to huge demand for electricity, the antiquity of power plants, the abolishment of the Department of Energy, and the discontinuation of the Bataan Nuclear Power Plant during the Corazon Aquino administration. During his State of the Nation address on July 27, 1992, he requested that the Congress enact a law that would create an Energy Department that would plan and manage the Philippines' energy demands. Congress not only created the Department but gave him special emergency powers to resolve the power crisis. Using the powers given to him, Ramos issued licenses to independent power producers (IPP) to construct power plants within 24 months. Ramos issued supply contracts that guaranteed the government would buy whatever power the IPPs produced under the contract in U.S. dollars to entice investments in power plants. This became a problem during the East Asian Financial Crisis when the demand for electricity contracted and the Philippine peso lost half of its value.

Ramos personally pushed for the speedy approval of some of the most expensive power deals, and justified signing more contracts despite warnings from within the government and the World Bank that an impending oversupply of electricity could push up prices, a situation that persists in the Philippines up to the present. Individuals linked to Ramos lobbied for the approval of some of the contracts for independent power producers (IPPs), which came with numerous other deals, including lucrative legal, technical, and financial consultancies that were given to individuals and companies close to him. Among the deals tied to IPP projects were insurance contracts in which companies made millions of dollars in commissions alone. All the IPP contracts came with attractive incentives and guarantees. Every contract was designed to give IPP creditors some degree of comfort in financing ventures that would usually involve huge capital and risks. Most IPPs were funded by foreign loans secured with a form of government guarantee or performance undertaking, which meant that the Philippine government would pay for the loans if the IPPs defaulted. The Ramos government continued signing IPP contracts even after the end of 1993 when the power crisis was considered solved. The World Bank came up with a report in 1994 warning that power rates would rise if the government continued to enter into more IPP contracts that would mean excess power. The World Bank questioned the ambitious projections of the government on economic growth and power demand from 1994 to 1998. It also warned that the power generated by private utilities' IPPs could duplicate those of the National Power Corporation and create an overcapacity. The World Bank said that the factors created considerable uncertainty in power demand, like substantial overcapacity, particularly under take-or-pay conditions and would require considerable tariff increases that would be unpopular with the public.^[32]

Death penalty

While campaigning for the presidency, Ramos declared his support for reinstating the death penalty. Capital punishment was abolished for all crimes in 1987, making the Philippines the first Asian country to do so. In 1996, Ramos signed a bill that returned capital punishment with the electric chair (method used from 1923 to 1976, making Philippines the only country to do so outside U.S.) "until the gas chamber could be installed".^[33] However, no one was electrocuted or gassed, because the previously used chair was destroyed earlier in a fire and the Philippines adopted the method of lethal injection. After his presidency, some people were put to death by this means, until the death penalty was abolished again in 2006.

Spratly Islands

President Fidel V. Ramos troops the honor guards at the Pentagon with Secretary of Defense William Cohen during a state visit in 1998.

In early 1995, the Philippines discovered a primitive PRC military structure on Mischief Reef in the Spratly Islands, one hundred and thirty nautical miles off the coast of Palawan. The Philippine government issued a formal protest over the PRC's occupation of the reef and the Philippine Navy arrested sixty-two Chinese fishermen at Half Moon Shoal, eighty kilometers from Palawan. A week later, following confirmation from surveillance pictures that the structures were of military design, President Fidel Ramos had the military forces in the region strengthened. He ordered the Philippine Air Force to dispatch five F-5 fighters backed by four jet trainers and two helicopters, while the navy sent two additional ships. The People's Republic of China had claimed that the structures were shelters for fishermen but these small incidents could have triggered a war in the South China Sea.

Migrant workers protection

A perceived weakness of his administration was the situation in handling migrant workers' protection, a very major issue in the Philippines, as there are millions of Filipinos abroad throughout the world serving as workers in foreign countries, and their remittances to relatives at home are very important to the Filipino economy. On the eve of his 67th birthday on March 17, 1995, Ramos was on a foreign trip when Flor Contemplación was hanged in Singapore. His last-minute effort to negotiate with Singapore President Ong Teng Cheong and Prime Minister Goh Chok Tong failed and Ramos' return was marred with protests after his arrival in Manila. The protests also caused the resignation of Foreign Affairs Secretary Roberto Romulo and Labor Secretary Nieves Confesor from the cabinet. He immediately recalled Philippine ambassador to Singapore Alicia Ramos and suspended diplomatic relations with Singapore and created a special commission to look into the case, which was in part an effort to try to rescue his sagging popularity. The commission was led by retired Supreme Court Justice Emilio Gancayco.

As recommended by the Gancayco Commission, Ramos facilitated the enactment of Republic Act No. 8042, better known as the "Migrant Workers and Overseas Filipinos Act of 1995", which was signed into law on June 7, 1995.^[34] Learning from the lessons of the Contemplación case, Ramos immediately ordered Philippines Ambassador to the UAE Roy Señeres to facilitate negotiations after learning of the death penalty verdict of Sarah Balabagan in September 1995. Balabagan's sentence was reduced and she was released in August 1996. After tensions cooled off, Ramos restored diplomatic relations with Singapore after meeting Goh Chok Tong on the sidelines during the 50th anniversary of the United Nations in New York City.

Asian Financial Crisis of 1997

The 1997 Asian Financial Crisis, which started in Thailand, was a major blow to the end of the Ramos administration, with him stepping down with a negative GDP growth. The economy was hit by currency devaluation with the Philippine Peso dropped to ₱46 in 1998 from ₱26 in 1997.^[35] The same was true for the Thai baht, Malaysian ringgit, and Indonesian rupiah. Growth fell to about −0.6% in 1998 from 5.2% in 1997, but recovered to 3.4% by 1999. It also resulted to the shutdown of some businesses, a decline in importation, a rising unemployment rate, and an unstable financial sector.

Clark Centennial Expo Scandal

Supposedly, one of his notable contributions to the Philippines was the revival of nationalistic spirit by embarking on a massive promotion campaign for the centennial of Philippine Independence celebrated on June 12, 1998. However, charges of alleged massive corruption or misuse of funds blemished the resulting programs and various projects, one of which was the Centennial Expo and Amphitheater at the former Clark Air Base in Angeles City, supposedly Ramos's pet project. The commemorative projects, particularly those undertaken at Clark, were hounded by illegal electioneering and corruption controversies even years after the Centennial celebrations. Clark Air Base at that point was already completely free of American interference and therefore conceived as a suitable venue for Independence Day. In 1992, all American military bases were transferred to Philippine control after the Senate rejected the military bases agreement with the United States

Later on it was revealed through a special report by the Philippine Center for Investigative Journalism (PCIJ) that the projects relating to the Expo site not only revealed the extravagance and inefficiency of the administration, but also served as a convenient vehicle to affect election fund-raising for the LAKAS political party of Ramos, which came at the expense of tax-payers and was in direct violation of the Election Code. The Centennial Expo Pilipino project, intended to be the centerpiece for celebrating the 100th anniversary of the country's independence from Spain, also earned extensive criticism for being an expensive white elephant project that disadvantaged the government at the cost of P9 billion, or 1.7 percent of the country's 1998 national budget.^[36] Six ranking Ramos cabinet members and officials, headed by Salvador Laurel (former vice-president), chairman of the Centennial Commission, were cleared by the Ombudsman and the Sandiganbayan. Ramos appeared before a Congressional Committee in October 1998 to help exonerate said officials of any wrongdoing.

Charter change

During his final years in office, Ramos tried to amend the country's 1987 constitution through a process popularly known to many Filipinos as charter change or cha-cha. Widespread protests led by Corazon Aquino and the Roman Catholic Church stopped him from pushing through with the plan. Political analysts were divided as to whether Ramos really wanted to use charter change to extend his presidency or only to imbalance his opponents as the next presidential election neared. He also intended to extend the term limits of the presidency to remain in power but his political rival Miriam Defensor Santiago went to the Supreme Court and negated extending the term limit of the president, which preserved democracy at the time.^[37]

EDSA II

In January 2001, Ramos was instrumental in the success of the so-called Second EDSA Revolution that deposed Philippine president Joseph Estrada and installed then-Vice President Gloria Macapagal Arroyo as president.

Estrada was later acquitted of perjury but found guilty of plunder and sentenced to reclusion perpetua with the accessory penalties of perpetual disqualification from public office and forfeiture of ill-gotten wealth on September 12, 2007, and pardoned by President Arroyo on October 26, 2007.

Ramos was Chairman Emeritus of the Lakas CMD (Christian-Muslim Democrats) Party, formerly known as Lakas NUCD-UMDP or the Partido Lakas Tao-National Union of Christian Democrats-Union of Muslim Democrats of the Philippines.

At the height of the election-rigging scandal in July 2005, Ramos publicly convinced President Gloria Macapagal Arroyo not to resign from office. Ramos, who was also hounded by charges of electoral fraud during the 1992 elections which were never proven in the Supreme Court, repeatedly stated that the scandal is nowhere as grave as that of People Power Revolutions of 1986 and 2001, citing factors such as the stagnant Philippine economy in the final years of the Marcos regime as well as the allegedly massive corruption of the Estrada administration. According to Arroyo, he also showed full support to her during the failed coups in the latter part of her presidency.^[38]