STRATEGIC PORT

Capital of the island archipelago that constitutes the Philippines, Manila was colonized by Spain in 1571 and became the center of a web of commerce, with silver from Spain's New World colonies buying goods from all across Asia and especially China. The U.S. took control as the new colonial power in 1898. Japan occupied Manila in 1942, and the city was damaged during its liberation in 1945, with a slow recovery following. The Philippines was granted independence in 1946, and U.S. military bases near Manila closed in 1992. The city—actually 17 jurisdictions combined—remains a major seaport in a strategically important setting. Plagued by traffic and water and air pollution, the region is also seismically active.