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LOCATED BETWEEN THE Philippine Sea and the South China Sea in southeastern Asia, the Philippine islands were of strategic importance to both the Allies and the Axis during World War II. Although Japan overran the Philippines, the United States assisted Filipino forces in evicting them. Independence was declared on July 4, 1946.

Since the authoritarian rule of Ferdinand Marcos was forcibly ended in 1986, the Philippines have experienced a period of political instability, filled with corruption and failed coup attempts. The Filipino economy escaped the worst effects of the Asian financial crisis of 1998, but the country experienced a slowdown from which it is only gradually recovering.

Oil prices, interest rates, and inflation (5.5. percent) remain high. Some 36 percent of the labor force are involved in agriculture. Over half of the labor force is involved in service industries. The economy is also dependent on regular remittance from Filipinos who work abroad, adding $7 billion to $8 billion in revenue each year.

Political instability, massive flooding, landslides, earthquakes, and tsunamis have all taken a toll on the Philippines. Some 40 percent of the population live in poverty. Poverty analysis in 2000 identified 5.1 million Filipino families and 30.8 individuals as poor. Some 46.4 percent ofthe population live on less than $2 a day, and 14.6 percent survive on less than $1 a day. Approximately 22 percent of the population are undernourished. Unemployment is currently estimated at 11.7 percent and is steadily increasing. Filipinos experience great inequality, with the poorest 20 percent holding 5.4 percent of resources as compared to 52.5 percent for the richest 20 percent. The Gini Index of Human Inequality ranks the Philippines at 46.5 percent.

Life expectancy in the Philippines is 69.91 years, and the median age is 22.27 years. Some 35.4 percent of the population are under the age of 14, and four percent have reached the age of 65. More than 90 percent of all Filipinos are likely to see their 40th birthday. Some 14 percent of the population lack access to safe water, and 17 percent lack access to proper sanitation. As a result of the lack of basic health precautions and the weather-related crises, Filipinos face high risks of contracting food- and water-borne diseases such as hepatitis A and typhoid fever. Rabies is a persistent threat. In some locations, dengue fever and malaria are common. There are 115 physicians for every 100,000 residents, and over half of the people can afford essential drugs.

Between 1970 and 2005, the Filipino infant mortality rate fell from 60 to 23.51 deaths per 1,000 live births. Among children under the age of 5, mortality was more than halved, dropping from 90 to 36 per 1,000. Approximately 32 percent of all children under the age of 5 are malnourished. Some 31 percent of under-5s suffer from moderate to severe stunting, and six percent experience moderate to severe wasting. Childhood immunizations are lower in the Philippines than is necessary to ensure the health of a nation's children, and rates have steadily declined from 80 to 70 percent in recent years.

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