Military dictatorship (1972–1981)
On the evening of September 23, 1972, shortly after the attempted assassination of Enrile, Marcos declared martial law in the Philippines and extended his rule beyond the two-term constitutional limit. Although martial law was formally lifted on January 17, 1981, this marked the beginning of a 14-year period of autocracy lasting until Marcos fled into exile on February 25, 1986. After 1981, Marcos retained virtually all of his constitutional authority until he was ousted. As president of the United States, Richard Nixon approved Marcos's subsequent martial law initiative.
Marcos ruled by decree during this period, inhibiting freedom of the press and other civil liberties, abrogating Congress, and arresting opposition leaders and militant activists, including Ninoy Aquino, Jovito Salonga, and Jose W. Diokno. Most were detained without charges, although Aquino was formally charged with murder, illegal possession of firearms, and subversion alongside leaders of the New People's Army. Eventually, Marcos claimed that martial law was the prelude to creating a bagong lipunan or "new society" based on new social and political values.
The early years of martial law met public approval, as it was believed to have caused crime rates to drop.
One of Marcos's rationalizations for martial law stated that there was a need to "reform society" by placing it under the control of a "benevolent dictator" who could guide the undisciplined populace through a period of chaos. He referred to this social engineering exercise as the bagong lipunan, or "new society". His administration produced propaganda materials, including speeches, books, lectures, slogans, and numerous songs to promote it. According to Marcos's own book, titled Notes on the New Society, his movement urged the poor and the privileged to work as one for the common goals of society and to achieve the liberation of the Filipino people through self-realization.
Bagong Lipunan marked the first major restructuring of Philippine education since the Treaty of Paris. It reoriented the teaching of civics and history to entrench constitutional authoritarianism. In addition, it attempted to synchronize the curriculum with the administration's economic strategy of labor exportation. In order to support the new regime, Marcos also established a youth organization, Kabataang Barangay, which was led by Marcos's eldest daughter Imee. Presidential Decree 684, enacted in April 1975, encouraged youths aged 15 to 18 to go to camps and do volunteer work. The Bagong Lipunan was also intensely anti-Chinese. To instill patriotism among Filipino citizens and prevent the growing number of Chinese schools from propagating foreign ideologies, Marcos issued Presidential Decree No. 176, preventing educational institutions from being established exclusively for foreigners or from offering curriculum exclusively for foreigners and restricting Chinese language instruction to not more than 100 minutes per day.
In October 1974, Marcos and PKP-1930 entered into a "national unity agreement", through which PKP-1930 would support certain Bagong Lipunan programs such as land reform, trade union reform, and revitalized relations with the Soviet bloc.
In 1975, Marcos issued Presidential Decree No. 824, placing Manila, Quezon City, two other cities, twelve municipalities of Rizal, and Valenzuela in Bulacan under the administration of the Metro Manila Commission (MMC). He appointed his wife, Imelda, as the head of the MMC in 1976; she would serve until her election to the Batasang Pambansa in 1978. The office was the second most powerful in the Philippine Republic, with its jurisdiction covering around 20 percent of the population and 70 percent of the economic output of the Philippines, and its budget was second only to that of the national government. Carlos P. Romulo described Imelda as the "de facto vice president" during this period.
Marcos established a group of key advisors and administrators within the military establishment, known as the Rolex 12. His closest advisors and chief administrators: Enrile, Fidel Ramos, and Fabian Ver were the chief administrators of martial law. Other members included Danding Cojuangco and Lucio Tan.
Between 1972 and 1976, Marcos increased the size of the Philippine military from 65,000 to 270,000 personnel in response to the fall of South Vietnam and other communist victories in the region. Military officers were placed on the corporate boards of the media, public utilities, development projects, and other private corporations. Marcos also supported the growth of a domestic weapons manufacturing industry and increased military spending. Marcos organized the Civilian Home Defense Force to battle communist and Islamic insurgencies. Along with other elements of the Marcos regime, it was accused of inflicting human rights violations on leftists, the NPA, Muslim insurgents, and rebels.
Under martial law, the Communist Party of the Philippines, the NPA, and the National Democratic Front (NDF) grew significantly. Despite Marcos's claims in 1981 that the conflict was "substantially contained", the NPA had established a foothold in urban areas, while the NDF formed relationships with legal opposition organizations. In the early 1980s, key communist leaders in Davao City were killed, leading the administration to claim the Party's "backbone" in the South had broken. However, remaining leaders began a campaign of urban insurrection, which led the international press to label Davao as the "Killing Fields" and the "Murder Capital" of the Philippines. The violence reached its peak in 1985, with 1,282 military and police deaths and 1,362 civilian deaths.
By 1977, the armed forces had quadrupled in size, and over 60,000 Filipinos had been arrested for political reasons. He retained the active support of the United States throughout the period of martial law. From 1972 until 1983, the United States government provided $2.5 billion in bilateral military and economic aid to the Marcos regime, and about $5.5 billion was provided by multilateral institutions such as the World Bank.
In June 1975, Marcos visited Beijing and signed a joint communication normalizing relations with the People's Republic of China. Among other things, Marcos endorsed the one China policy. In turn, Chinese premier Zhou Enlai pledged that China would not intervene in the internal affairs of the Philippines nor seek to impose its policies in Asia, a move that isolated the local communist movement that China had financially and militarily supported. The government subsequently captured New People's Army leaders Bernabe Buscayno in 1976 and Jose Maria Sison in 1977.
During the presidency of Jimmy Carter in the United States, Philippines–United States relations soured somewhat when Carter targeted the Philippines in his human rights campaign. Despite this, the Carter administration maintained the policy of military aid to the Marcos regime to retain U.S. military bases and guard American oil supply lines from the Middle East. Carter successfully pressured Marcos to release Ninoy Aquino. A 1979 US Senate report stated that U.S. officials were aware as early as 1973 that Philippine government agents were in the United States to harass Filipino dissidents. In June 1981, two anti-Marcos labor activists were assassinated outside a union hall in Seattle. On at least one occasion, CIA agents blocked FBI investigations of Philippine agents.
In response to international pressure, including from the Carter administration, Marcos announced that the 1978 Philippine parliamentary election would be held on April 7 to elect 166 regional representatives (out of 208) to an interim Batasang Pambansa. Marcos established a new party, the Kilusang Bagong Lipunan (KBL), to support his social reform policies. Aquino and his supporters formed Lakas ng Bayan (LABAN), fielding 21 candidates in the Metro Manila region, including Aquino, Neptali Gonzales, Teofisto Guingona Jr., Ramon Mitra Jr., Nene Pimentel, journalist Napoleon Rama, publisher Alejandro Roces, and poet-playwright Soc Rodrigo. However, LABAN's campaign was restricted, and Marcos refused to allow Aquino out of prison to campaign.
Official results showed the KBL winning 137, while Pusyon Bisaya won 13 seats. LABAN received zero seats. The election was marred by allegations of "pre-stuffed ballot boxes, phony registration, 'flying voters', manipulated election returns, and vote buying." As a result, Marcos became Prime Minister of the Philippines, the first to hold the position since the American occupation. Under Article 9 of the 1973 constitution, Marcos was granted broad executive powers as the official head of government, head of the National Economic Development Authority, and commander-in-chief of the armed forces. All of the powers of the president from the 1935 Constitution were transferred to the prime minister.
Among the candidates elected to the Batasang Pambansa in 1978 was Imelda Marcos, who took a leave of absence as governor of the MMC from February 17 to June 12. During that time, Ferdinand served as acting MMC governor.
In 1979, Marcos added eleven heavy industrialization projects to his economic agenda, prioritizing the production of aluminum, copper, steel, cement, coconut, phosphatic fertilizer, and paper, as well as energy projects, including the development of petrochemicals, diesel engines, alcogas, and hydroelectric, geothermal, and nuclear power. The Marcos regime ultimately built seventeen hydroelectric and geothermal plants, with the Philippines becoming the world's second largest geothermal producer in 1983.
Although six nuclear power plants were planned, only the Bataan Nuclear Power Plant (BNPP) was completed. Its construction was paused in 1979 following the Three Mile Island accident, and the BNPP was closed shortly after its 1985 completion following the Chernobyl disaster. Safety reviews have revealed over 4,000 defects, and the site lies near Mount Pinatubo and three geological faults. The construction loans used to build BNPP were only paid off in April 2017, and maintenance costs have exceeded ₱40 million per year.
The World Bank reported that crops (rice, corn, coconut and sugar), livestock and poultry and fisheries in the Philippines grew at an average rate of 6.8%, 3% and 4.5%, respectively from 1970 to 1980, and while the forestry sector declined by an annual average rate of 4.4% through the 1970s. Marcos's signature agricultural program, Masagana 99, was launched on May 21, 1973, to address a rice shortage. Its goal was to raise yield from 40 to 99 cavans (4.4 tons) per hectare. The program pushed farmers to use high-yield seeds, fertilizer, and herbicides. Initial success came from encouraging farmers to plant IR8, a "miracle rice" funded by the Rockefeller and Ford foundations and the UPLB CAFS through the International Rice Research Institute, which had been under development since 1962. This increased rice production from 3.7 to 7.7 million tons in two decades and made the Philippines a rice exporter for the first time in the 20th century. However, the switch to IR8 required more fertilizers and pesticides, primarily profiting multinationals' agricultural concerns rather than the majority of small, peasant farmers, who often remained in poverty.