When the Philippine presidential election of 2022 concluded in a landslide victory for Ferdinand “Bongbong” Marcos Jr., the Philippine Stock Exchange Index sank by 0.6% at 6,720.93. Losses from investor sell-offs amounted to an estimated total of 488 billion PHP (9.3 billion USD). At-the-close of market, the index’s total market capitalization fell by 168.27 billion PHP (3.2 billion USD).
But why do investors have such little faith in a Marcos-led Philippines? Below, we’ll go over a brief rundown of the country’s issues, Marcos’ qualifications (or lack thereof), and what a second Marcos administration means for the country.
Summarizing Philippine Issues
Leading a country like the Philippines is no easy task. Climate change, poverty, and political corruption threaten the quality of life of the general population. 2020’s Climate Change Risk Index revealed that the Philippines ranked second among the countries most affected by weather-related disasters. Storms displaced a total of 4.4 million Filipinos within the year 2020 alone. Additionally, about 26 million Filipinos, or 25% of the country’s population, live under the poverty threshold and lack the income to meet basic needs. Widespread political corruption left governments unable to alleviate the many social challenges the country faces. Suffice to say, Filipinos have been waiting for a strong leader to guide the population out of ruin.
From the get-go, it was clear that Bongbong Marcos would not be that leader.
The First Marcos Administration
Understanding why Marcos Jr.’s victory is so controversial it requires in-depth knowledge of Ferdinand Marcos Sr.’s regime. The elder Marcos, the 10th president of the Philippines, began his reign in 1965 and ruled for approximately 20 years until a nonviolent revolution — called the People Power Revolution — forced him out of power in 1986.
The Marcos regime was infamous for its censorship, brutality, and economic upheaval. Through his 20-year reign, Marcos stole between 5 billion to 10 billion USD from government funds. Debt to foreign entities jumped from 0.36 billion in 1961 to 28.26 billion in 1986, which led to falling wages and widespread poverty. To keep his atrocities from public view, Marcos shut down media outlets that opposed his regime. 33 journalists were murdered under the first Marcos presidency.
A Dedicated Historical Revisionism Campaign
The lack of investor faith in Marcos Jr.’s leadership can be attributed to a lack of accountability and his position on his father’s crimes. Successful leadership requires accountability. Unaddressed weaknesses in leadership — especially when leaders focus more on what they can gain from power rather than how to drive results — create risk. And Marcos Jr. has failed to hold himself or his family accountable for anything. Marcos Jr.’s past actions show that he is keen on continuing his father’s legacy of corruption.
In fact, his campaign relied on the consistent whitewashing of history. Using social media, Marcos Jr. rehabilitated his family’s image. Through the years, the Marcos family flooded YouTube and Facebook with disinformation, claiming that Marcos Sr.’s 20-year regime spawned a golden age for the country, and that none of the human rights or financial abuses that occurred under his rule were ever proven. When the election began, many of these posts also targeted the reputations of Marcos’ political opponents, including human rights lawyer Leni Robredo, the presidential runner-up.
Marcos Jr.’s Unresolved Corruption Cases
Marcos Jr.’s crimes do not end with historical revisionism. Like his kleptocrat father, Marcos Jr. also plundered government funds. Documents from an organization called iBBM — iBalik ang Bilyones ng Mamamayan (Return the Citizens’ Billions) — proved that Marcos participated in The Priority Development Assistance Scam, a political scandal in which Philippine legislators poured government funds into sham organizations from which they profited. Through the scheme, Marcos Jr. allegedly stole 1.9 million USD, the fifth-highest amount of all participating legislators.
The results of the recent Philippine elections were nothing short of controversial. Philippine stock prices since the event have plummeted, creating billions in losses. Investors simply do not believe that a Bongbong Marcos — a man that weaponizes misinformation to erase decades of obscene government theft and human rights abuses — can ever pull a country into prosperity.
Yet, somehow, the Philippine people do.
