The change of presidency in February 1986 also offered the chance of overcoming the severe economic decline of previous years. The present economic crisis is rooted mainly in wrong policy decisions in the past, including the "cronyism" of President Marcos. The fundamental corrections of the new development strategy aim in particular at reducing government intervention in the market (including the privatization of most state-owned enterprises), decentralization, giving priority to agriculture and rural development, and - within the manufacturing sector - promoting small and medium-sized units. Two fields of development need further clarification. Firstly, the extremely uneven and unproductive distribution of land has still to be dealt with in line with the reorganization of agriculture. Secondly, there is no clear concept as regards the industrialization process. Due to structural distortions, the manufacturing sector is not considered particularly competitive by international standards. International trends, world and domestic market potential suggest a concentration on resource-based export industries, a related intermediate product sector, the extension of existing export industries (particularly electronics), and the production of investment and consumer goods for the domestic market, but with a view to exporting in the future. The scope for collaboration with foreign companies is large and has improved through recent policy decisions. The extent of German direct investment in the Philippines has been very limited in the past, but it can be increased, also with the help of the respective cooperation policy instruments of the German government.