Philippine Economy Under the Spanish Occupation

 Feb 13, 1565. With four ships and 380 men, Miguel Lopez de Legaspi arrives in the
Philippines.
 April 27, 1565, The defiant Tupas was defeated by the Spaniards and had signed an
agreement that the Philippines is placing under the Spain.
 May 8, 1565. Legaspi establishes the first permanent Spanish settlement on Cebu and
becomes the first Spanish Governor-General.
System of Government Religion
 Centralized form of government.  Christianity's Introduction
 Frailocracia Social Structures
System of Writing  Principalia Ilustrados
 Latin alphabet “ PHILIPPINES  Educational System Educational
UNDER IMPERIAL SPAIN” Decree 1863 focused on the
Christian Doctrines

Taxation
Direct programs that the Spaniards implemented are:
Encomienda
 Encomienda - is a land ownership system with the use of titulo as proof of ownership.
The lands are given by the King of Span to its soldiers who joined the military
expeditions.
 Encomendero - is the landlords. They are the ones who collect the taxes or rent from the
residents of their land.
Several forms of Taxes and Monopolies
 Tithe - is the payment of the 10% of an individual’s annual income to the government.
 Sanctorum - is the tax being paid as support to the church.
 Tribute (buwis) - is the tax or rent given to the landlord a resident is under. By 1884, the
tribute was replaced by the Cedula personal, wherein colonists were required to pay for
personal identification.
Tributo = 10 reales Diezmos prediales (tithes or 1/10) = 1 real Treasury = 1 real Sanctorum tax
(church tax) = 3 reales All in all, an average Filipino will pay 15 reales .
Indirect programs that the Spaniards implemented are:
Bandalâ
 Bandalâ - an annual enforced sale and requisitioning of goods such as rice. Custom duties
and income tax were also collected.
Polo y Servicio (Forced Labor)
 Polo y Servicio - is the forced labor for 40 days of men from the age of 16 to 60 years old
were obligated to give personal services to community projects.
 By paying falla, or a one and a half real. One could be exempted. In 1884, labor was
reduced to 15 days.
 It was patterned after the Mexican repartimento, selection for forced labor.
Galleon Trade (Trade The Manila-Acapulco)
 Galleon Trade - was the main source of income for the colony during its early years.
Service was inaugurated in 1565 and continued into the early 19th century.
 This way, the Philippines earned its income through buy and sell.
 The trade lasted for over two hundred years, and ends in 1821 with the secession of
American colonies from Spain.
Everyone at the the age of 18 was obliged to pay. Under the cedula system
Gobernador Cillos had been responsible for collection of the tribute. If someone failed to
show the cedula receipt they were subject to summary arrest.
Royal Society of Friends of the Country
 Established by Jose de Basco y Vargas
 The society was tasked to explore and exploit the island's natural bounties. The society
led to the creation of Plan General Economico of Basco which implemented the
monopolies on the areca nut, tobacco, spirited liquors and explosives.
 It offered local and foreign scholarships and training grants in agriculture and established
an academy of design.
 It was also credited to the carabao ban of 1782, the formation of the silversmiths and gold
beaters guild and the construction of the first papermill in the Philippines in 1825.
 It was introduced on 1780, vanished temporarily on 1787-1819, 1820-1822 and 1875-
1822 and ceased to exist in the middle of the 1890s.
Royal Company of the Philippines (March 10, 1785)
 Charles III created the Royal Philippine Company with a 25 year charter.
 It was granted exclusive monopoly of bringing to Manila, Philippines.
 It was also vehemently opposed by the traders of the Galleon trade who saw it as
competition.
 This gradually resulted into the death of both institutions: The Royal Philippine Company
in 1814 and the Galleon trade in 1815.
The Independence Day
 June 12 1898, Emilio Aguinaldo declared the independence of the Philippines in Kawit,
Cavite, establishing the First Philippine Republic under Asia's first democratic
constitution.
Philippine Economy under Spain
 The founding of the Economic Society of Friends of the Country helped in the
agricultural advancement of the country.
 The Tobacco Monopoly made the Philippines the greatest tobacco-growing country in the
Orient. All farmers had a quota of tobacco to raise annually and all were sold to the
Government.
 Spanish policies imposed here were not that helpful for the Filipinos and most
government officials were of Spanish by blood and Filipinos were the ones made to work
tedious jobs.
Changes in the Filipino society during the Spanish Colonization
 Spanish authorities did not show any sign of fairness towards the Filipinos especially in
the division of responsibilities in polo y servicio.
 Because of this irresponsibility, Filipinos still work apart from their allotted time for
work. Filipinos who were working in the Galleon Trade experienced misfortune because
of the heavy loads Spanish authorities were asking of them.
 As a result, many workers died and later on separated families because of poverty being
experienced.
Web Link
https://www.slideshare.net/shielambb/spanish-8824883
Philippine Economy Under American Period
The Filipinos enjoyed a better life under America than as the colony of Spain. The
American Yankees taught us to work harder and be more practical than the lazy and
proud Spaniards. What Spain could not do for the Philippines in over 300 years, the
United States did in less than 50 years.
American economic policy
 Philippine bill of 1902. Declared that all public lands and natural resources of the
Philippines were for “the benefits of the inhabitants”.
 William H. Taft was the first American governor general, said that “the Philippines was
for the Filipinos”.
 Naturally our economy then was developed largely by Americans and pro American
Filipinos.
New land policy
 3 Ways on how Americans improved land policy in the Philippines.
 Friar lands were resold to Filipino farmers.
 Homestead Act in 1924 allowed any Filipino to own up 24 hectares of public
land. All lands had to be registered, and their owners got Torrens tittles.
Free trade with America
 Most important economic change in the American era.
 Filipino products entered the United States without paying custom tariffs. There was a
limit or quota to the amount of tax free Filipino products.
New industries
The Philippines entered the industrial age. It favoured the use of machines and
the mass production of goods in big factories. They bought this modern system to our
country.
 Manila: coconut oil, cigars and  Bulacan, Laguna, Tayabas, Bohol
cigarettes, sugar, rope, textiles. and Pangasinan: hats and mats
 Marikina: shoes  Pampanga, Rizal and Bulacan:
 Ilocos: blankets and towels. Rattan and wood furnitures.
  Albay, Rizal and Laguna: pottery
and bricks.
Improvement in transportation and communication
 The Philippines became an Asian leader in transportation and communications.
 Americans developed our railroads in Luzon, Cebu, and Panay.
 More ports for shipping were opened up.
 Pier 7 in manila was the largest port in Asia.
Better budget The Philippine colonial government under Americans had one of the best
budgets in the world. The Philippine budget was balanced even during the great world
depression in the 1930’s. New banks opened during the American era. In 1906, the postal
savings bank was introduced and the Philippine national bank was established.
Economic Problems
 We sold our raw materials cheap and brought expensive manufactured goods from
America.
 Colonial mentality became worse.
 Labor and peasant unrest spread in 1920’s and 1930’s. The world depression hit the poor
masses worst of all.
 American capitalists and businessmen controlled the new companies.
Historical values
 Our country’s natural resources and wealth was developed by the U.S.
 The Americans benefited from our economic development because we were not yet
independent. The promise of the American to make Philippines for the Filipinos was not
really true.
 There were tremendous progress then in population, agriculture, trade, business, new
industries, transportation and communication government budget banks and international
prestige. Manila was the center of shipping and air travel in Asia. We had the best
telephone and telegraph service, newspapers, radio stations and postal service in Asia.
Our people enjoyed better living standards.
 The new opportunities in our country made our people want independence even more.
We knew that we would never fully developed until we were free.
Web Link
https://www.slideshare.net/praejames245/economic-progress-under-america

Philippine Economy Under Japanese Era

 In 1570’s some Japanese ships visited the Philippines in order to export Japanese silver
and import Philippine gold. Later, increasing imports of silver from New World sources
resulted in Japanese exports to the Philippines shifting from silver to consumer goods.
 In the 1580s, the Spanish traders were troubled to some extent by Japanese pirates, but
peaceful trading relations were established between the Philippines and Japan by 1590.
 Japan's kampaku (regent), Toyotomi Hideyoshi, demanded unsuccessfully on several
occasions that the Philippines submit to Japan's suzerainty.
 Different types of livelihood were taught in vocational schools built by Japanese. They
controlled the industries, factories and food productions.
 Subjects such as Japanese culture and Niponggo, a Japanese language, were made
compulsory subjects in schools.
 Filipinos learned to engage in different business like buy and sell barter trade to earn a
living.
 Filipinos were encouraged to write on condition that they would use Tagalog as a
medium.
Effects of the Japanese Influences to Our Economy.
 Livelihood
 The Filipinos learned to engage in different businesses like buy and sell and barter trade
to earn a living.
Web Link
https://prezi.com/4hcxbo64htnt/the-philippine-economy-during-the-japanese-era/
 Philippine Economy during Spanish, American, and
Japanese Period.

Name: Melody S. Ferwelo

Gr. & Section: 12-D2

Professor: Erron Medina