The United States and the Republic of the Philippines maintain close ties stemming from the U.S. colonial period (1898-1946), a history of extensive military cooperation, the bilateral security alliance bound by the Mutual Defense Treaty of 1951, and common strategic and economic interests. Other pillars of the bilateral bond include shared democratic values, enduring cultural affinities, and close people-to-people ties. Filipino Americans number nearly 4 million, making them the second-largest Asian American group after Chinese Americans, and comprise the largest foreign-born group in the U.S. Armed Forces. An estimated 350,000 Americans live in the Philippines. Despite general agreement on the importance of U.S.-Philippine relations, the potential for bilateral friction remains as interests and perceptions occasionally diverge regarding U.S. obligations under the alliance, Philippine sovereignty, human rights, trade, and other issues. Although the United States closed its military bases in the Philippines in 1992 (Subic Naval Base and Clark Air Base), the two sides have maintained military cooperation through joint exercises and counterterrorism efforts aimed at maintaining inter-operability, addressing internal and external security threats, and achieving humanitarian objectives. Joint counterterrorism efforts, in which U.S. forces play a non-combat role, have helped to reduce terrorist threats in Mindanao and the Sulu Archipelago in the southern Philippines. Since 2012, the Philippines has played a key role in the Obama Administration's "rebalance" of foreign policy priorities toward Asia, particularly as maritime territorial disputes in the South China Sea have intensified. On November 16, 2011, U.S. Secretary of State Hillary Clinton and Philippine Secretary of Foreign Affairs Albert F. del Rosario signed the "Manila Declaration," which reaffirmed the bilateral security relationship and called for multilateral talks to resolve maritime disputes in the region. The Obama Administration pledged greater security assistance to the Philippines as joint exercises began to focus on maritime security. In March 2014, the two sides held the fourth Bilateral Strategic Dialogue, in which they discussed Typhoon Haiyan (known in the Philippines as Yolanda) recovery efforts, enhanced defense cooperation, economic ties, U.S. foreign aid programs, and other issues. During the past year, Washington and Manila have discussed the framework for an increased, non-permanent U.S. military presence in the Philippines. On April 28, 2014, as President Obama visited the Philippines as part of a four-nation tour in Asia, the two sides announced an accord on the increased U.S. military presence, the Enhanced Defense Cooperation Agreement (EDCA). Observers called the announcement a centerpiece of the President's Asia trip. The 10-year, renewable arrangement represents a milestone in U.S. military engagement in the Philippines and the Administration's rebalance policy. However, it does not alter the principles of the Visiting Forces Agreement that has governed U.S.-Philippines military activities since 1998. The Philippines is a vibrant democracy with a robust civil society. However, the country faces significant challenges to political stability and economic growth, including pervasive corruption, a weak judicial system, armed groups and insurgencies in parts of the country, extra-judicial killings committed by security forces, and violence against journalists. Under President Benigno Aquino III, the Philippine government has become somewhat more transparent and accountable, it has reached a settlement with the Moro Islamic Liberation Front (MILF) in the south, and the economy has experienced solid growth. However, the Philippines continues to struggle with corruption, poverty, localized political violence, and a "culture of impunity," all of which continue to hinder development, feed political instability, and breed pockets of ideological extremism. U.S. public and private support to the Philippines following Typhoon Yolanda (Haiyan), which struck the central part of the country on November 8, 2013, bolstered the already strong bilateral relationship. Such assistance included approximately $87 million in U.S. disaster aid and $59 million in private sector contributions, a massive U.S. military humanitarian effort, public expressions of sympathy, and a flurry of diplomatic activity. On November 10, 2013, President Obama made a statement expressing sympathy and support to the people of the Philippines. On November 21, the Senate expedited the confirmation of the new U.S. Ambassador to the Philippines, Philip Goldberg, so that he could help coordinate U.S. humanitarian assistance there. U.S. Secretary of State John Kerry travelled to the Philippines on December 17, 2013, where he met with President Aquino and visited the city of Tacloban, which had been devastated by the storm. Both the humanitarian and military aspects of ongoing U.S. engagement were brought to bear after the storm and augur well for future humanitarian and military contingencies, according to many observers. Some observers opined that the response of the United States significantly boosted its soft power in the Philippines and the region, particularly in comparison to that of China, which offered relatively little aid. Some Philippine leaders and political commentators argued that the U.S. military response to the disaster strengthens the case for an enhanced U.S. military presence in the country. Broad U.S. policy objectives include the following: maintaining the U.S.-Philippines alliance; assisting the Armed Forces of the Philippines (AFP); supporting peace and stability in conflict-affected areas, particularly Mindanao and the Sulu Archipelago; and promoting good governance and broad-based economic growth. Key U.S. policy concerns include the following issue areas: External Security : Territorial disputes between the Philippines and China remain tense, with frequent confrontations involving Chinese paramilitary or coastguard vessels, in and around Scarborough and Second Thomas Shoals ( Panatag and Ayungin Shoals). China slowly has taken greater control over access to these reefs. These and other disputed territories could become flashpoints with a risk that overt conflict could occur, forcing the United States to choose whether to undertake a military response, and if so, what form of response. The Enhanced Defense Cooperation Agreement (EDCA) : The framework agreement, finalized in April 2014, allows for the increased presence of U.S. military forces, ships, aircraft, and equipment in the Philippines on a nonpermanent basis and greater U.S. access to Philippine military bases. No large-scale U.S. troop realignments have been proposed. Congress in its oversight and appropriations roles will scrutinize the objectives and costs of enhanced military cooperation. Internal Security : In January 2014, the Philippine government and the MILF finalized an accord, the Comprehensive Agreement on Bangsamoro, which would grant a large level of political autonomy to Muslim areas in Mindanao and Sulu. However, the region remains economically poor, politically unstable, and armed. Resistance to the settlement, as well as sporadic armed attacks, small-scale bombings, and kidnappings by Islamist and communist groups has continued. U.S. Joint Special Operations Task Force–Philippines (JSOTF-P) provides support to the Philippine military to maintain security and carry out development activities. Governance : Although President Aquino helped to reestablish public trust in government and has maintained the Philippines' upward economic growth trajectory, his term expires in 2016, and it is uncertain whether his cleaner style of government will continue. U.S. assistance programs in the Philippines have aimed to combat corruption, strengthen the judiciary, and improve fiscal policies, among other objectives. The Philippines-United States Partnership for Growth aims to accelerate broad-based economic growth in the Philippines. The U.S. Congress also has imposed restrictions on some military assistance in order to prevent extra-judicial killings by members of the Philippine armed forces. Many aspects of institutional democracy are practiced to the fullest in the Philippines. Citizens generally can exercise political and civil rights with few restrictions, openly criticize national leaders, and enjoy academic freedom and religious liberties. The country has a robust civil society and a lively press. However, the state often has been unable to stand above or control competing interests. Patterns of patronage and cronyism; entrenched socioeconomic elites; the influence of local clans and power holders; the lack of civilian control over the security forces; Muslim and communist insurgencies; and a weak judicial system have allowed corruption to thrive, undermined governmental effectiveness, and led to human rights abuses. In 2013, the Economist Intelligence Unit (EIU) ranked the Philippines 69 th out of 167 countries in terms of its level of democracy (up from 75 th in 2012), placing it in the "flawed democracy" category, along with other Asian countries such as Indonesia, Thailand, and Malaysia. Although the EIU ranked the Philippines high on the electoral process and civil liberties, the country received a relatively low score on political culture. The ability of the Philippine government to carry out policies effectively is often further frustrated by the fragmented nature of the country's politics. The legislature acts as a "watchdog" against the executive branch, but historically has had difficulty articulating and carrying out broad policy objectives and programs. Political parties and groupings tend to be tenuous and shifting, driven more by individual personalities and interests than by unifying ideologies, policy platforms, and goals. President Benigno Aquino III retains high public approval ratings four years into his presidency, deriving from his reputation for eschewing corruption and his family's lasting popularity. The former senator and son of former president Corazon Aquino and democratic leader Benigno Aquino Jr. was elected President in 2010 by a large margin. To many observers, Aquino's presidency has represented a political and cultural shift in the Philippines—a move toward cleaner government, greater sensitivity to political and economic grievances, and less emphasis upon eradicating Muslim and communist insurgencies through military means.