Name: Magundayao, Allen Kyle O.

Course and Section: AB Foreign Service/ FS201

Full Name of the Course: Introduction to International Trade
Professor: Mr. Jumel G. Estrañero
“That’s a Swap: Why Caviteños Are Restoring the Barter Trade System amidst COVID-19
Pandemic.”
I. Introduction
Even before the arrival of the Spanish forces, the barter trade system has been operating in
the Philippines, especially in the islands of Mindanao. Though it was in the year 1835 when
Manila has officially internalized the system of trade, the Philippines in the Pre-Hispanic era had
great relationships with the neighboring countries such as Thailand and China. (Abueg, 2017)
The increased and consistent trade activities between the neighboring countries propelled the
great international relations of Philippines to other nations.
The existence of COVID-19 Pandemic created a setback in the Philippine Economy. Malls
were advised to be closed during the lockdown to prevent the fast transmission of the virus.
Public transportations such as buses, jeeps and tricycles were given a memorandum by the Inter-
Agency Task Force to reduce the number of passengers they are loading to a minimum. A report
published by Social Weather Stations (2020) revealed that the adult joblessness of Filipinos
skyrocketed to 45.5% for the month of July. The data came from a national mobile survey
conducted last July 3 to 6 of the year 2020. It was an additional 28 points to the 17.5%
joblessness rate last December 2019. This was mainly because of the reduced economic activities
due to the COVID-19 Pandemic. Many businesses chose to furlough their employees to save the
establishments from bankruptcies.
With limited to no income at all, Filipinos find themselves going back to barter trade system.
A method that has rarely been practiced after a stable and formal currency was introduced as a
method of purchasing. The power of social media was put to use as netizens created hundreds of
groups online specifically for those who are interested to bargain and trade the items that they are
willing to give up for something they really need. What is only needed to be done is to post
photos of the item you are interested to swap and wait for the greatest deal. Though the practice
of barter is part of our resiliency in the past, the government sees it as a problem since it gives an
opportunity for the citizens to dodge their responsibilities in paying taxes.
This research aims to identify the reasons behind the restoration of barter trade system in this
time of pandemic. Using a descriptive approach, selected respondents from Cavite Barter
Community PH will answer a survey through Google Form. The result of the study will benefit
the students of AB Foreign Service from LPU-Cavite as to why the barter trade system is
existing in today’s situation. It will also serve as a reference for future research relating to trade.
 II. Body (Facts and Figures)
Barter Trade, as defined by Mpinganjira and Oliver (2011), is a trade wherein the method of
purchasing is cashless, and the products and services can be partially or fully paid through other
products and services. Historically, Filipinos, engaged in the barter trade system even before the
Spaniards discovered the wealthy islands of the Philippines.
There were little known facts about the Filipinos during the Pre-Hispanic era. But with the
article published by Ocay (2010), the researcher was able to note that as early as 890 B.C.E.,
trade activities between the early Filipinos and Arabians were made through a system of barter.
Filipinos could also be seen near the lakes, seas, rivers, and streams due to economic reasons.
Not only these bodies of water helped them to survive through fishing, but it also served as
routes for traders from China, Arabia, and other neighboring islands.
In an infographic posted at the official website of Bangko Sentral ng Pilipinas (n.d), a brief
history of currency from Pre-Hispanic era to Philippine Republic was discussed. It was revealed
that during the Pre-Hispanic era, barter trade was happening. But due to the inconsistencies of
the system, cowry shell as a mode of exchange was introduced. Later that time, “Piloncitos”,
which was made of gold, was formed as the first local coinage system in the Philippines. With
the Spanish Era, American Era, Japanese Occupation and now, the Philippine Republic,
Philippines went through different systems of currency varying from barillas, paper moneys,
gold, silver and bronze coins, mickey mouse money and the current monetary system we have in
the present, the Philippine Peso.
With damages caused by the present COVID-19 pandemic, many Filipinos found ways to
earn profits in these trying times. Online selling, Made-to-order foods, and most especially,
Barter trading, a predominant system of exchange of goods during the Pre-Hispanic era that we
thought, would never be revived because we already have Philippine Peso as our official
currency. Why Filipinos restored the Barter Trade System amidst COVID-19 Pandemic?
According to a study conducted by IPrice Group (2020) from April to May, the biggest
reason why the Philippines restored the barter system is to grab items that are essential in their
daily lives. From food items and groceries to baby care products and gardening essentials, people
always rely to malls and supermarkets for everything that they need. Due to the closure of
business establishments, including malls, Filipinos are having a difficult time in finding ways to
have their essentials in stock. Decluttering items and having the need to socialize with the
community were the other reasons why Filipinos trade.
Bartering items to conserve cash is also one of the reasons why Filipinos revived this old
culture. In a news article published by Gail Momblan of Philippine News Agency (2020), it is
said that the restoration of barter system helped the people from Iloilo to express the
“Bayanihan” spirit in a unique way. Through exchanging their items, they get what they need
without spending cash. The cashless exchange helped the Ilonggos to keep the damages of
COVID-19 Pandemic under control. Additionally, it shows a great fusion of rural and urban
products as there were some Ilonggos who exchange fruits to gadgets.
Siargao, an island that heavily relies on tourism as their source of income, also revived the
barter trade system to assist its residents towards recovery as the tourism industry is severely
affected due to hard lockdowns and strict health protocols implemented by IATF. To some
extent, only those who finished the 14-day quarantine will be allowed to participate in barter
trade. The use of cash is strictly prohibited. (Catoto, 2020)
Rachel Lerman, an author in “The Washington Post”, interviewed Jim Stodder, an economist,
and a professor in Boston University. He said that bartering occurs particularly during a crisis
and the side effect or the response of the people from the challenges brought by the crisis. With
the global pandemic causing the people to continuously lose their jobs, an efficient way to
acquire their needs when people have limitations in purchasing power is to barter items that are
no use to them in exchange of something they needed. Moreover, those who participate in the
online barter community say that it keeps them out of crowded shops such as supermarkets and
hardware. Therefore, lessening the transmission of the virus.
In support with Jim Stodder’s statement, Tomky (2020) revealed that there was an increase in
public posts on Facebook mentioning the words “barter” and “trade” by the month of March and
April 2020, the months when lockdowns are imposed. The increase is said to be at 250%,
proving that the system of barter has been restored in response to the people’s need to survive. A
203% increase in Google searches for the word “barter trade” was also seen in April and May
2020. (Reuters, 2020)
A good reason to barter is to extend help to others. Maria Tonette Marticio of Manila
Bulletin (2020) wrote a news article about the online barter communities existing in Leyte. As
Tacloban lost about 251,000 workers due to shuttered businesses, Leytenos resorted to bartering
to restore the economic activities and to share blessings to financially unstable families without
spending cash. The Vice-Mayor of Tacloban, Jerry Yaokasin himself, is a participant of online
barter community. According to him, barter creates an avenue for people to help others who lost
their source of income. He referred to the items being traded as “welcome relief”. He also added
that through bartering, people get to know more of themselves as a community and that it also
provides emotional support for everyone.
To further validate the possible reasons why Caviteños are reviving the barter trade system,
the researcher conducted an online survey in Cavite Barter Community. Wherein, 100
respondents were chosen through random sampling. All the respondents are currently residing in
Cavite and participating in the private group created via Facebook. The questions in survey form
are aligned with the literatures cited above and is personally administered by the researcher
through Google Form. The researcher used a dichotomous response and calculated the results
through the Percentage formula. Wherein:
f
%= ×100
N
Where: % = Percent, f = frequency, and N = number of cases
 Figure 1. Respondents’ Age
The Figure 1 shows the population of the respondents per age bracket. As illustrated
above, most of the respondents are in the age bracket of 18-29 with a total of 58 respondents
followed by 30-39 accumulating 23 respondents. Participants that fall in the bracket 40-49
ranked 3rd with a total of 9 respondents while the 13-17 ranked 4th with only 6 respondents.
Lastly, 2 respondents are in the bracket 50-59 and 2 did not answer.

Figure 2. Number of Respondents per City/Municipality in Cavite

The Figure 2 represents the number of respondents per city and municipality in Cavite.
Most of the participants are residing in General Trias with a total of 49 respondents. Tanza
ranked as 2nd with a total of 17 respondents. Bacoor and Imus both garnered 9 respondents while
Dasmarinas have 6. There were 5 participants from Cavite City and 3 from Kawit. Lastly, both
Silang and Trece both have 1 respondent.
 Figure 3. Respondents’ Gender
The Figure 3 shows the data of respondents based on gender. Most of the participants are
female with 81% of the sample population while male respondents are 19%.
QUESTIONS YES NO
1. Are you aware that
Barter Trade is 78% 22%
happening even before
the Spaniards arrived?
Table 1. Results of Question No. 1
Table 1 reveals that 78% of the respondents are aware that barter trade is happening even
before the arrival of the Spanish forces while 22% of them are not aware of it.
2. Do you engage in
Barter Trading to
acquire essential 47% 53%
items? (foods, baby
products, gardening
essentials etc.)
Table 2. Results of Question No. 2
Table 2 exhibits that 47% of the respondents engage in barter trading to acquire essential
items while 53% of disagreed on this matter.
3. Do you engage in
Barter Trading to 26% 74%
conserve cash?
Table 3. Results of Question No. 3
Table 3 shows that only 26% of the respondents are engaging in barter trading to
conserve cash. 74% of the respondents said “No”.
4. Do you engage in
Barter Trading to 83% 17%
 declutter (dispose)
unnecessary items?
Table 4. Results of Question No. 4
Table 4 interprets the number of respondents who joined the Cavite Barter Community
to declutter items. 83% said “Yes” while 17% said “No”.
5. Do you engage in
Barter Trading
because you lost your 21% 79%
job due to COVID-19?
Table 5. Results of Question No. 5
Table 5 explains that 21% lost their job due to COVID-19, a reason to join the barter
community. 79% of the respondents said “No”.
6. Do you engage in
Barter Trading to help 95% 5%
others?
Table 6. Results of Question No. 6
Table 6 shows that 95% of the respondents think that Barter Trading is helping others.
Only 5% disagreed with this statement.
7. Do you feel emotional
support from the 82% 18%
people you are trading
with?
Table 7. Results of Question No. 7
Table 7 reveals the percentage of respondents who feel emotional support from the
people they are bartering with. 82% said “Yes” while 18% said “No”.
8. Do you engage
yourself in barter trade
not just to exchange 79% 21%
items but also, to
socialize with others?
Table 8. Results of Question No. 8
Table 8 elucidates that 79% of the respondents engage in barter trading to socialize with
others. On the other hand, 21% said “No”.
9. Do you engage in
barter trading to keep 58% 42%
yourself out of
crowded shops?
Table 9. Results of Question No. 9
Table 9 shows that 58% of the respondents barter trade to avoid crowded shops. 42% of
them said “No”.
10. Do you engage in
 barter trading to
express the Bayanihan 95% 5%
Spirit in a unique
way?
Table 10. Results of Question No. 10
Table 10 explains that 95% of the respondents agree that barter trade is a unique way to
express “Bayanihan”. Only 5% said “No” with this statement.
III. Analysis
With the demographics of the survey, most of the respondents came from the age bracket of
18-29. Although social media such as Facebook, Twitter and Instagram are sometimes
complicated to use, especially for 30-39, 40-49 and 50-59 years old, there were still a good
number of respondents in the survey for these age brackets. Indeed, the Philippines is the Social
Media Capital of the World. The demographics based on gender also revealed that most of the
respondents are female. It is not surprising as the population of males and females in the
Philippines are almost equal so either of the two could dominate the charts when it comes to
social media users. It is also very evident that General Trias participate a lot in online barter
community as they took the greatest number of respondents who participated in the survey. More
importantly, most of the participants are aware of the Pre-Hispanic era and the history of barter
trade in the Philippines, showing 78% “Yes” and 22% “No”.
Upon analyzing the articles, studies, and the survey above, the researcher found out that the
reasons why Filipinos revived the barter system vary from place to place. The results of the
survey revealed that not all Caviteños have the same reason as those from other parts of the
Philippines. Contrary to the situation of Siargao and the article from Rachel Lerman, the
respondents disagreed that Caviteños partake in barter trade due to job loss. What was also
declared by the IPrice group as the main reason was also not applicable as the survey reflected
that people from Cavite are uncertain that they engage in barter trade to acquire essential items.
Rather, most of the respondents partake in barter trade to dispose items that are no longer useful
in the household. Most of the respondents also disagreed that conserving cash was one of the
reasons why they joined the online barter community. While some of the results of the survey
and the literatures are conflicting, there are still statements that the Caviteños agreed on to.
Questions number 4, 6, 7, 8 and 10 showed positive results from the respondents. It would mean
that most of the articles are proven to be true as per the results of the survey. If the reasons were
to be ranked, numbers 6 and 10 will tie at first, accumulating 95% “Yes”. It would mean that the
main reasons why the respondents are participating in barter trade are to help others and to
express the “Bayanihan” spirit in a unique way. Decluttering unnecessary items would be next
with 83% “Yes” while providing and receiving emotional support is only behind with 82%
“Yes”. “To socialize with others” is up next with 79% “Yes” and “To keep yourself out from
crowded shops” with 58% “Yes”. The response in question number 4 showed uncertainty as it
received 47% “Yes” and 53% “No”. The two least reasons are “to conserve cash and “job loss”
with 26% and 21%, respectively.
IV. Recommendation
Make barter trade a way to help others and yourself and to promote one’s skills. Those
of us who have homes know that from time to time, we encounter problems with our household
appliances, from minor damages to major ones. The initial solution would be to buy new
appliances or to contact a repairman with fee to fix everything. The researcher recommends
bartering not just goods but also, services. Bartering services in an even trade is a solution to
saving money especially if your budget is tight. Having someone repair your electric fan in
exchange for your services just like cleaning their home or even repairing another appliance to
your specialty, not only can help you save money but also helps promote your skills as a person
for future references.
Use barter to restore economic activities and improve businesses. Many small business
owners all over the country have found themselves with extra inventory after anticipating a
strong year in sales for 2020 and steady growth in the Philippine economy. When the pandemic
lockdowns took effect in March of 2020, many business owners found themselves having to
close or temporarily limit their business in response to the nationwide lockdowns. This created a
problem upon how their products and supplemental inventory could be sold. Instead of having
the inventory getting wasted in storage, business owners could barter with themselves to help
ease their costs and losses. Not only it restores the economic activities, but it is also a great way
to exemplify the spirit of Filipino “Bayanihan” in helping one another especially in times of
hardships brought upon by the COVID-19 pandemic. Both businesses save from spending
money on items that they do not have by bartering with other business owners for what they do
have. Additionally, it encourages quality products from businesses since the bartered goods will
be immediately consumed and other businesses would have feedbacks on each other to further
improve their products.
Keep an eye on the barter trade system. On a larger scale, some economists have argued
that the barter system does not stimulate the economy the same way when currencies and credit
cards boost economic confidence. Consumers spending money and using debit and credit cards is
a major way economist measure how successful the economy is performing. A simple way to
formulate how to measure the success of the barter system comparing to traditional buying and
selling products is for each person who participates in the barter system to declare the value of
their item and report each barter transaction. Any government agency such as the Bureau of
Internal Revenue would not necessarily have the ability to tax a transaction but would have the
resources to keep track on the value of items being bartered. These statistics would strictly be
kept only for the government to track how well the economy is performing even with the barter
system. There is a big difference if people are only bartering small scale items like clothes
compared to if people are bartering larger and more valuable items such as vehicles. If people
could at least declare the value of each item being bartered, the government can keep track on
how well the economy is doing based on the barter activity and the estimated value that is
reported.
V. Conclusion
Since it is known that the Philippines is a hotspot and even the social media capital of the
world, Filipinos have become innovative to find good use of the social media platforms. Usually,
Facebook groups are created to interact and engage with people who share similar interests such
as in the fields of entertainment and sports. The Caviteños had taken it a step forward to use the
group platform for advertising their own items specifically for barter. In this sense, it is a lot
safer for a barter to occur since there is no cash or credit cards involved to where someone on
either end of the deal may lose money on a fake or faulty transaction. In general, Caviteños are
always practicing the Bayanihan spirit which also translates to honest and fair bartering.
Bayanihan expresses a sense of community and responsibility to take care of one another
especially in times of trouble such as the COVID-19 pandemic. Some have argued that Filipinos
have lost that spirit of being one with the community and have even been on the side of
forgetting the friendly and accommodating culture that Filipinos are extremely known for around
the world. Since we know that local and even national government officials are aware of the re-
emergence of the barter system, there can be regulations on online bartering that can benefit the
people who participate in barter but also a way to promote Bayanihan throughout the country
especially during the pandemic. There are also so many opportunities for economic growth for
local and national benefit. If some people were worried about the barter system not having an
impact on keeping the local economy alive, based on the data received and the attitudes of the
people who participate in the barter system, there is a chance for both the barter system and
traditional buying and selling in having a way to coexist with each other for the betterment and
potential growth of the Philippine economy.
VI. Way Ahead
Without the normalcy that we had before the pandemic, it will really be difficult to return to
the ways of the past. Though there are already vaccines that are qualified and now ready for
vaccination, it would still be very difficult to distribute it to the whole world. This proves that we
may be experiencing lockdowns and quarantines for a longer extended period and proving that
the barter system may be in even more use as the 2021 year arrives. Since all the activities are
limited due to social distancing orders, barter system could be used as an alternative to acquire
goods and services, especially now that technology has become quite a necessity since everyone
is working from home and having online classes. Eventually, cash and credit card transactions
will become the normal form of acquiring the goods and services that people need. Since the
COVID-19 pandemic has greatly affected the number of jobs and the number of stable incomes
throughout the Philippines, the future may see many more people participating in an online
barter community. If the government can monitor and safely implement guidelines for the future
of the barter system in the Philippines, it can become a normal way of life. Someday we may
even see a newly renowned international trade unit with countries all over the world bartering
goods to stimulate their own people and the economy they strive in.

VII. References
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Bangko Sentral ng Pilipinas. (n. d.). History of Philippine Money. Retrieved from:
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lippineMoney.aspx
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https://www.mindanews.com/top-stories/2020/04/siargao-folk-revive-barter-system/

iPrice Group. (2020). "I-barter mo na!" - The Resurgence of Bartering in the Philippines.
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in-this-time-of-covid-19/
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