Social Impact of the Regional Financial Crisis in the Philippines

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The Philippines, having been integrated into the global economy, has not been spared from the financial crisis that hit Asia in July 1997. Pre-financial crisis has indicated marked improvement in the general health condition of the population, higher incomes and employment, stable prices and favorable balance of payments and fiscal position. This study comprehensively examines the effects of the crisis in the Philippine economy in terms of its fiscal/social impacts. To deal with the adverse effects of the crisis, several coping mechanisms are cited, such as the continuation of Comprehensive and Integrated Delivery of Social Service, the institution of Technical Education and Skill Development Authority, and cost cutting measures such as job rotation/forced vacation and freezing salary increases from the government’s initiative and self-employment mechanisms such as direct selling and setting up of sari-sari store from the individual’s initiative.