CEDAW/C/PHI/5-6 modernization of agriculture and the fisheries sectors, comprehensive human development and anti-poverty, and good governance and the rule of law. Commitments to Trade Thrusts of Multilateral Organizations 61. The Philippines is a member of multilateral trade organizations such as the Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA), Asia Pacific Economic Cooperation (APEC) and the World Trade Organization (WTO), all of which promote reduction of trade and non-trade barriers among member countries. Commitments to WTO led to economic deregulation and trade liberalization more than at any time before the current period under review. These contributed to the robust economic growth, high employment rates, and low poverty incidence in the mid-1990s. The deregulation of the financial market, however, introduced volatility in the current accounts of the country’s balance of payments, which made the Philippines vulnerable to speculative attacks on its currency, as happened in July 1997. Because of weaknesses in the country’s macroeconomic fundamentals, the financial crisis degenerated into an economic crisis (Illo 1999, Lim 2000). The crisis sharply eroded the value of the peso vis-à-vis the US dollar, from PhP26.38 in 1997 to PhP51.40 in 2001, PhP53.10 in 2002, and about PhP55.57 by the end of 2003 (BSP 2004). Gross Domestic Product 62. At the beginning of the period under review, the Philippine economy was at its peak, with its gross domestic product (GDP) growing at 5.8 percent, the highest in a decade (NSO 2002). In 1998, the height of the financial crisis, GDP contracted by 0.6 percent. It has since grown by more than 3.4 percent or more a year in 1999-2001, In 2002-2003, GDP was estimated to have risen by 4.5 percent (NSCB 2003b). Debt and Deficit 63. The country’s foreign debt has been growing relentlessly, from $30.6 billion in 1990 to $53.9 billion by the end of 2002. Since 1998 at least, the Philippine external debt has been at least 60 percent of its GNP and more than double its exports (ADB 2003). The debt burden continues to compromise the growth and anti-poverty programs of government, as interest payments are preempting an increasing share of the national budget. 64. Since 2000, the debt service fund has increased, such that by the end of 2002, it was 45 percent of the 2000 budget. In contrast, the budget for economic services contracted by 6 percent, and social services expanded by 9 percent. Only the defense budget registered a double-digit percentage change from the 2000 figure. It is interesting to note that for some years, the debt service fund was more than the country’s deficit. The relative decline in the share of social services is likely to affect the amount of work women do in the unrecognized care economy, as they strive to provide for services that the government should have been offering (such as health and day care services). Poverty Incidence 65. The poor economic performance and continuing political crises compromised the progress that was briefly experienced in 1996 and 1997, including the decline in income-poverty incidence among Filipino families between 1994 and 1997 (from 35.5 percent to 31.8 percent; BLES 29