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The Effects of the U.S. Military Bases on the Philippine Economy

WILLIAM E. BERRY JR.
Contemporary Southeast Asia
Vol. 11, No. 4 (March 1990), pp. 306-333
Stable URL: http://www.jstor.org/stable/25798077
Page Count: 28
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Effects of the U.S. Military Bases on the Philippine Economy
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Abstract

The U.S. military bases in the Philippines do contribute to the Philippine economy, but the extent of this contribution remains in dispute between supporters and opponents of the bases. The compensation the United States pays for the retention of the bases has increased from US$500 million for five years, as negotiated in 1979, to US$962 million for two years, negotiated most recently in 1988. Compensation will remain a crucial issue as the two countries prepare for the next round of negotiations to begin in early 1990. Employment opportunities, local procurement of base goods and services, and personal spending by those Americans assigned to the bases are other important economic contributions derived from the presence of the bases. However, Philippine nationalism, changes in the perception of the threat, and other political and economic factors in each country call into question the future of the U.S. military facilities in the Philippines. Unless these substantive issues, as well as the differences over compensation, are resolved satisfactorily, the military bases could be in jeopardy as could the longer-term relationship between the United States and the Philippines.

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