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The Republic of Philippines is located north of Indonesia and Malaysia. It is an archipelagic country like Indonesia with a total population of 86.24 million people or the 12th largest in the world in 2005.

The Philippines is governed under a republic system, with its president functioning as head of state, head of government, and as the commanderin chief of the armed forces. The strategy pursued by the Philippines to increase its economic growth is to develop infrastructure, reform its fiscal system to raise state income, implement deregulations and privatizations, and improve the integration of its trade with the surrounding areas.

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