The Philippines was already
experiencing one of its worst years
when the severe developments of
the third quarter compounded the
problems . The "second oil crisis"
of 1979 not only increased the
price of a major import, but also
brought
about
recessionary
conditions in the OECD countries
and thereby falling prices and little
quantitative growth for Philippine
exports.
The second oil crisis, triggered by the
Iranian
revolution
in
1979
and
exacerbated by Iran-Iraq war, resulted
in a sudden and substantial increase in
global oil prices that cause result faces
challenge for Philippines. This study
aims to investigate the effects of the
second oil crisis.
 1.
What are the causes of oil crisis in the Philippines?
 2.
How does war affect the economy of the
Philippines?
 3.
How does the leadership of former president
Marcos affect the economic growth of the Philippines in
year 1970s to 1980s?
The
Philippines'
economic
expansion
was
significantly impacted by the second oil crisis in
the late 1970s and early 1980s. It was primarily
brought on by an increase in oil prices on a global
scale that was brought on by geopolitical events
like the Iran-Iraq War and the Iranian Revolution.
The Philippines, who rely significantly on oil
imports for both transportation and electricity,
were immediately confronted with the problems of
inflation, declining consumer purchasing power,
and rising production costs.
To comprehend the roots of the Philippine
economic crisis, it is crucial to examine
various historical, political, social, and
economic factors that have contributed to
its complex economic landscape. The roots
of the Philippines' economic troubles in the
early to mid-1980s can be attributed to a
combination of economic mismanagement,
external factors, and political instability.
 Global Oil Price Shock
 OPEC Actions
 External Trade Troubles
 Slower Economic Growth
 Government's Response
To mitigate the economic effects of the second oil
crisis,
the
Philippine
government
should
implement the following solutions:
1. Invest in renewable energy sources such as solar,
wind, and geothermal power to reduce dependence
on imported oil.
2. The government should do a comprehensive
feasibility study about nuclear energy.
3. Promote sustainable economic growth that is not
dependent on elevated levels of debt.
1. Provide financial assistance to public
transportation providers to help them
offset the rising cost of fuel.
2. Revive the Bataan Nuclear Power
Plant
3. Invest in research and development
of renewable energy technologies.
The Philippines was heavily impacted by the second oil
crisis in the late 1970s and early 1980s, which was caused
by worldwide oil price increases owing to geopolitical
tensions. Inflation and economic issues resulted from the
country's reliance on oil imports. To counteract the
situation, the government enacted energy conservation
policies, imposed gasoline price caps, and made
investments
in
alternative
energy
sources
and
infrastructure. These steps not only solved immediate
concerns but also increased the Philippines' energy selfsufficiency and resilience, lowering its dependency on
foreign oil.