A mature capitalism

The report – here is the first chapter – aims to provide an essential description of the country and the many challenges that the working class faces there.

Geography

The Philippines is an archipelago of more than 7,600 islands and islets, divided into three main groups: Luzon, Visayas, and Mindanao, with a total area of ​​300,000 square kilometers. It borders Japan and Taiwan to the north, China to the northwest, Vietnam to the west, Malaysia to the southwest, Indonesia to the south, and Palau to the southeast.

The Philippines' geology is characterized by its location at the western edge of the Pacific Ring of Fire. The terrain is a rugged landscape of mountains, hills, and plains, with a number of active and inactive volcanoes. The coastal and inland plains provide the Philippines' agricultural staples, particularly rice, corn, and coconut.

It is surrounded by strategically important seaways that influence its global economy and politics. To the north, between the Philippines and the island of Taiwan, lies the Luzon Strait, the main passage for civilian and military ships entering and leaving the Pacific Ocean. To the west lies the South China Sea, rich in vast undersea resources of natural gas and crude oil.

History

The Philippines is caught between the interests of two of the world's major imperialist powers: China and the United States.

Since the end of World War II, in accordance with the terms of the Japanese Empire's surrender, China has claimed the entire South China Sea, including all its islands and resources, as its national territory. Since 1994, the Chinese have asserted their claim by secretly establishing military sites and bases on groups of islets and reefs in the South China Sea, the Spratlys and Paracels. In the early 2010s, they occupied the disputed islands, forcing the Philippine garrisons stationed there to abandon them.

In response, the bourgeois government of the late former President Benigno S. Aquino III filed a complaint against the Chinese government before the Permanent Court of Arbitration in The Hague. In 2016, the CPA ruled in favor of the Philippines, a ruling that China rejected and refused to abide by. Under his successor, former President Rodrigo R. Duterte, the Philippines adopted a pro-China stance, renouncing all military and trade agreements with the United States and allowing China a free hand in the South China Sea. With the inauguration of President Ferdinand “Bongbong” R. Marcos Jr. in 2022, however, the bourgeois Philippine government once again reversed its foreign policy orientation toward the United States, prompting another round of Chinese aggression against Philippine naval forces and fishermen.

Spain ceded the Philippines to the United States for $20 million in the Treaty of Paris of 1898, following the Spanish-American War. The United States, the Philippines' colonial power from 1901 to 1946, is now its "best friend" and "natural ally". However, since independence was "granted" in 1946, the United States has continued to exert great influence, manipulating elections and conducting sabotage and espionage operations to remove and destabilize hostile governments.

The Cold War-era Mutual Defense Treaty was intended to protect the Philippines, and American interests, from Chinese aggression in the Taiwan Strait, as well as giving the United States the ability to intervene in the “communist” rebellion then underway in the country’s mountainous regions.

The Visiting Forces Agreement is much more recent, replacing the permanent U.S. military bases established during the American colonial period. It provides for annual joint military exercises.

In addition to the United States, the Philippines is also working on similar agreements with Australia, Canada, France, Great Britain, and other Western countries under American influence. Former President Duterte's government succeeded in distancing the Philippines from the United States for the first time in modern history. Only the change of government in 2022 opened the way for American imperialists to regain their former position of power.

The bourgeois government of President Marcos Jr., eager to counter Chinese aggression, reinstated the Enhanced Defense Cooperation Agreement (EDCA) between the Philippines and the United States. The EDCA allowed the United States to establish military installations in the archipelago, pledging to cover the costs and finance economic development around the occupied areas. Following the renewal and resumption of the EDCA, the United States wasted no time in building installations in four key locations on the northern island of Luzon, all targeting China.

Historically, for Washington, the Philippines was and continues to be part of the "first island chain", strung along the continent's eastern and southern coasts, subordinated to American imperialism to contain China's maritime expansion. Other coastal nations—Japan, South Korea, and Vietnam—along with the United States, quickly moved to challenge China for control of the South China Sea. Australia also plays a crucial role in the dispute, having even signed a pact with the Philippines, along with Great Britain, France, and other Western powers, for joint patrols in the area. Obviously, global imperialist forces will continue to exert pressure on bourgeois Philippine governments, and the scenario could change again in the future.

Bourgeois politics

Under the 1987 Constitution, the Republic of the Philippines is a presidential government. The President is the head of state and government and commands the armed forces. He is elected by direct popular vote for a non-renewable six-year term. Legislative power is exercised by a Congress composed of two chambers: the Senate (upper house) and the House of Representatives (lower house).

Internal bourgeois politics is polarized between four main party coalitions: the Marcosists, the Dutertes, the Liberal Opposition, and the Left Opposition.

The Marcosist camp, called the “loyalists,” brings together the parties of the vast majority of political dynasties.

The Duterte supporters, also known as the "Duterte Diehard Supporters" or "DDS", are led by Vice President Sara Duterte and her brothers, Congressman Pulong Duterte and Davao City Mayor Baste Duterte. The main political party in the Duterte camp is the Partido Demokratiko Pilipino, the party of former President Duterte.

Duterte supporters generally have a pro-China stance, showing disinterest in the South China Sea dispute, arguing that the Philippines' baseless claims were fomented by the United States and that it would be better for the country to simply cede the islets to China and restore normal diplomatic relations.

Liberals trace their ideological and institutional roots to the figures and forces that led the 1986 uprising that overthrew the Marcos dictatorship. They do not officially side with either China or the United States, but historically and currently they lean toward the latter, especially on the dispute over the South China Sea.

The left-wing opposition, particularly the Socialists and National Democrats, condemns both imperialist powers and advocates an ultranationalist and isolationist stance, clearly bourgeois and anti-worker. Duterte has seen his influence significantly diminish and his popularity among the electorate plummet. Liberals have positioned themselves as the Dutertetes' main enemies, with their usual demands for "accountability", "justice", and the protection of "human rights".

In the Philippines, power struggles within the ruling class are dirty, bloody, and chaotic affairs. At the local level, elections are sham, as the scions of political dynasties simply swap seats in their respective local governments. To manipulate voters, they employ a system of corruption, with aid packages, known as "ayudas", in cash or in kind, distributed to the population, often with the names and faces of politicians on them, before and after election periods. Those who dare to challenge the dynasties on their soil are intimidated or even eliminated, thus preventing any opposition to their rule. Electoral alliances and party loyalties are fluid and constantly evolving.

Economy and industry

The Philippine economy is based primarily on services and agriculture, with industry playing a minor role. Much of the country's agricultural production is exported. Rice is the main crop, along with fruits and vegetables. The Philippines is classified as a "newly industrialized country". The largest and most profitable industry is electronics, which accounted for at least half of exports in 2024. Other important industries include automotive, mining and metallurgy, food processing, and pharmaceuticals, among others.

Over the past year, the industry has shifted toward higher value-added products, seeking to compete with Vietnam and Thailand not only on labor costs but also on specialization. The industry contributes approximately 25-30% of the national GDP.

The Philippines is one of the world's largest producers of nickel (essential for electric vehicle batteries), a sector that has expanded rapidly over the past three years thanks to global demand. Economically, the Philippines is largely subordinate to the United States, its main trading partner. With the Philippine peso pegged to the US dollar, the national currency's strength depends entirely on the greenback.

The Philippines also maintains close economic partnerships with ASEAN countries and the European Union.

The classes

The social and class structure of the Philippines is complex and reflects an economy in transition, where technological modernization coexists with an agricultural system that in some areas remains almost feudal.

Many are forced to work away from their families, especially those who have not completed their studies.

Here is the breakdown based on the latest data available from the Philippine Statistics Authority.

The active labor force in the Philippines amounts to 50-52 million. Wage earners represent 62-63% of this (32 million). Over 60% are employed in services (business, retail, tourism) and industry (manufacturing, electronics). This is a highly heterogeneous group, ranging from factory workers in Special Economic Zones (PEZAs) to call center employees. Self-employed/informal workers (street vendors, taxi drivers, small artisans) make up 26-28% of the workforce, a segment of the "urban precariat".

Agriculture employs 22-24% of the workforce, 11-12 million people.

Within these there is a clear distinction between those who own the land and those who work it:

An estimated 3-4 million farmers own a small plot of land. Most of these are smaller than 2-3 hectares. Many are beneficiaries of the agrarian reform (CARP), but often lack the capital necessary to modernize and live in a subsistence economy.

Agricultural wage earners (landless peasants) number 5-6 million. Day laborers, they often work on large sugar, coconut, or banana plantations (haciendas) (especially in Mindanao and Negros). They represent the poorest segment of the population.

Sharecroppers and tenant farmers number 1.5-2 million. They work land that isn't theirs and repay the owner with a portion of the harvest (often 50% or more). This system persists despite decades of reform efforts.

Among wage earners, there are obviously different levels of remuneration depending on the sector. There is a general disparity between the urban and rural working classes. The unemployment rate in the Philippines is currently quite low compared to the past, standing at around 4.4% in November 2025: 2.25 million. However, we must also consider the underemployed: the critical number in the Philippines is not the number of unemployed, but rather those whose wages are insufficient to live on. It is estimated that at least 5 million workers are forced to supplement their insufficient income with second jobs. This is typical in the agricultural and informal trade sectors.

The ruling class is a small percentage of the population. Yet collectively, it exercises absolute control over the state apparatus and its means of production. Most can trace their lineage to prominent families who gained power during the Spanish colonial period. The transition from Spanish to American imperialist control did not diminish their influence in the slightest; on the contrary, it strengthened it, as the new colonial government elevated them to the role of local overseers and key lobbyists for its interests in the islands. Even after the United States "granted" independence in 1946, these families, now dubbed "political dynasties", maintained a de facto monopoly on government, passing their positions from father to son and through kinship. It is no coincidence that as of 2026, the vast majority of all provinces, cities, municipalities, and even barangays (neighborhoods, villages) in the Philippines are still governed by a political dynasty.

The Armed Forces

The armed forces consist of 150,000 active-duty soldiers and 1.5 million reservists. They are supported and equipped primarily by the United States and its allies in East Asia. Japan and South Korea provide the majority of the Navy and Coast Guard vessels. The armed forces, inevitably, have always been at the service of the ruling class. Since their inception, they have been involved in a series of brutal conflicts against self-proclaimed communist rebels, as well as against secessionist movements in Mindanao and the Cordillera region, in both urban and rural areas. Groups and organizations affiliated with the parliamentary and extra-parliamentary left are constantly threatened and subjected to persecution by armed forces agents.