How People Power Revolution reshaped Philippine economy

As we commemorate the 40th anniversary of the Edsa People Power Revolution, celebrations across the nation reflect on those four glorious days that inspired nonviolent democratic movements worldwide and became a defining moment in Philippine history.

- Joseph Araneta Gamboa

The uprising’s legacy continues to influence debates on reform, governance, and inclusive growth four decades later.

In February 1986, millions gathered along Edsa and other major cities—forcing a peaceful transition of power that ended the 20-year rule of Ferdinand E. Marcos Sr. The ascendance of Corazon “Cory” Aquino to the presidency marked more than a political reset; it triggered a structural economic pivot whose effects are still visible today.

Back then, the economy was emerging from its worst crisis since World War II. Gross domestic product (GDP) had shrunk sharply in 1984-1985 amid a debt default, crony monopolies, and capital flight. The early post-Edsa years focused on restoring the country’s macroeconomic credibility by restructuring foreign debt, liberalizing trade, dismantling monopolies tied to the Marcos regime, and rebuilding investor confidence.

GDP growth rebounded between 1987 and 1989. Despite political instability brought about by at least seven military coup attempts, the overall momentum shifted from contraction to recovery. Just as crucial was the restoration of constitutional rule. A free press, orderly elections, the revival of Congress, and an independent judiciary were key ingredients for transparency and long-term economic development.