Ferdinand E. Marcos, who succeeded to the presidency after defeating Macapagal in the 1965 elections, inherited the territorial dispute over Sabah; in 1968 he approved a congressional bill annexing Sabah to the Philippines. Malaysia suspended diplomatic relations (Sabah had joined the Federation of Malaysia in 1963), and the matter was referred to the United Nations. (The Philippines dropped its claim to Sabah in 1978.) The Philippines became one of the founding countries of the Association of Southeast Asian Nations (ASEAN) in 1967. The continuing need for land reform fostered a new Huk uprising in central Luzon, accompanied by mounting assassinations and acts of terror, and in 1969, Marcos began a major military campaign to subdue them. Civil war also threatened on Mindanao, where groups of Moros opposed Christian settlement. In Nov., 1969, Marcos won an unprecedented reelection, easily defeating Sergio Osmeña, Jr., but the election was accompanied by violence and charges of fraud, and Marcos’s second term began with increasing civil disorder.
In Jan., 1970, some 2,000 demonstrators tried to storm Malacañang Palace, the presidential residence; riots erupted against the U.S. embassy. When Pope Paul VI visited Manila in Nov., 1970, an attempt was made on his life. In 1971, at a Liberal party rally, hand grenades were thrown at the speakers’ platform, and several people were killed. President Marcos declared martial law in Sept., 1972, 
charging that a Communist rebellion threatened. The 1935 constitution was replaced (1973) by a new one that provided the president with direct powers. A plebiscite (July, 1973) gave Marcos the right to remain in office beyond the expiration (Dec., 1973) of his term. Meanwhile the fighting on Mindanao had spread to the Sulu Archipelago. By 1973 some 3,000 people had been killed and hundreds of villages burned. Throughout the 1970s poverty and governmental corruption increased, and Imelda Marcos, Ferdinand’s wife, became more influential.
charging that a Communist rebellion threatened. The 1935 constitution was replaced (1973) by a new one that provided the president with direct powers. A plebiscite (July, 1973) gave Marcos the right to remain in office beyond the expiration (Dec., 1973) of his term. Meanwhile the fighting on Mindanao had spread to the Sulu Archipelago. By 1973 some 3,000 people had been killed and hundreds of villages burned. Throughout the 1970s poverty and governmental corruption increased, and Imelda Marcos, Ferdinand’s wife, became more influential. Martial law remained in force until 1981, when Marcos was reelected, amid accusations of electoral fraud. On Aug. 21, 1983, opposition leader Benigno Aquino was assassinated at Manila airport, which incited a new, more powerful wave of anti-Marcos dissent. After the Feb., 1986, presidential election, both Marcos and his opponent, Corazon Aquino (the widow of Benigno), declared themselves the winner, and charges of massive fraud and violence were leveled against the Marcos faction. Marcos’s domestic and international support eroded, and he fled the country on Feb. 25, 1986, eventually obtaining asylum in the United States.
Aquino’s government faced mounting problems, including coup attempts, significant economic difficulties, and pressure to rid the Philippines of the U.S. military presence (the last U.S. bases were evacuated in 1992). In 1990, in response to the demands of the Moros, a partially autonomous Muslim region was created in the far south. In 1992, Aquino declined to run for reelection and was succeeded by her former army chief of staff Fidel Ramos. He immediately launched an economic revitalization plan premised on three policies: government deregulation, increased private investment, and political solutions to the continuing insurgencies within the country. His political program was somewhat successful, opening dialogues with the Marxist and Muslim guerillas. However, Muslim discontent with partial rule persisted, and unrest and violence continued throughout the 1990s. In 1999, Marxist rebels and Muslim separatists formed an alliance to fight the government.
Several natural disasters, including the 1991 eruption of Mt. Pinatubo on Luzon and a succession of severe typhoons, slowed the country’s economic progress. However, the Philippines escaped much of the economic turmoil seen in other East Asian nations in 1997 and 1998, in part by following a slower pace of development imposed by the International Monetary Fund. Joseph Marcelo Estrada, a former movie actor, was elected president in 1998, pledging to help the poor and develop the country’s agricultural sector. In 1999 he announced plans to amend the constitution in order to remove protectionist provisions and attract more foreign investment.
Late in 2000, Estrada’s presidency was buffeted by charges that he accepted millions of dollars in payoffs from illegal gambling operations. Although his support among the poor Filipino majority remained strong, many political, business, and church leaders called for him to resign. In Nov., 2000, Estrada was impeached by the house of representatives on charges of graft, but the senate, controlled by Estrada’s allies, provoked a crisis (Jan., 2001) when it rejected examining the president’s bank records. As demonstrations against Estrada mounted and members of his cabinet resigned, the supreme court stripped him of the presidency, and Vice President Gloria Macapagal-Arroyo was sworn in as Estrada’s successor.
Macapagal-Arroyo was elected president in her own right in May, 2004, but the balloting was marred by violence and irregularities as well as a tedious vote-counting process that was completed six weeks after the election.
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