SOCIAL STUDIES

EVOLUTION OF THE PHILIPPINE ECONOMY

Pre-colonial Period

- traded via barter system

- slavery was practiced
- chieftains had absolute power
- economy was related to feudal system
- economy was predominantly traditional agriculture and home-based industries
- had laws and government (datus, sultans, rajahs are the highest in the political
system)
- the country was divided into autonomous economic political units known as
“barangays”
- established relationships with neighboring nations/barangays through peace
treaty “blood compact”

The Sultanate in Mindanao

➔ a group of Islamic Barangays who arrived in the Philippines during the late 14th century

The Main methods of Farming

● Kaingin - slash and burn

● Tillage System - cultivation of land using carabao drawn plows and harrows

Ifugao rice terraces

➔ living testimony of the ancient Filipinos sense of creativity and industry

Fishing

➔ main source of food and means of livelihood

Filipinos are:

● skilled shipbuilders
● good wine makers

wines: tuba (palm tree), basi (sugar cane), lambanog (coconut tree)
Spanish Colonial Period

- church and state combined powers to ensure that those reforms were instituted
throughout Spain’s reign
- philippine real was the currency
- filipinos were required to pay tributo

Encomienda system

➔ a legal system by which the spanish crown attempted to define the status of the
indigenous population

Polo y Servicios

➔ a forced labor upon males between 16-60 years old to work for the government for 40
days in a year to build infrastructures
➔ wealthy filipinos can pay fallas to be exempted

★ Falla is an exemption fee

Bandala

➔ form of direct taxes that the spaniards implemented in which the natives were coerced to
sell their products to the government at very low prices

Cedula Personal

➔ used as community residence tax and surveillance

Galleon Trade

● also known as Manila-Acapulco Trade

● established in 1565
● lasted for 250 years
● you pay boleta to be able to participate

★ Boleta is a ticked you give to participate in the trade

● consisted of 2 ships that sailed each year, one leaving the port of Manila and the other
one port of Mexico
● 500,000 pesos worth of goods, spending 120 days at sea
American Period

- american government implemented reforms that restructured the society

- americans introduced democracy
- they established public schools and trained philippines for self-government
- philippine economy was market oriented
- new industries were developed such as: commercial, shipping, transportation,
telecommunication, trade and commerce

Treaty of Paris 1898

➔ between the US and kingdom of Spain

➔ signed in paris, December 10, 1898
➔ a proclamation
➔ granting americans access to philippine resources

Payne-Aldrich Tariff 1909

➔ American exports to the Philippines were free of tariffs and quotas, while Philippine
exports of sugar and tobacco to us were subjected to quotas and tariffs.

★ Quotas are quantitative limits to the amount of commodities a country could

export to another country
★ Tariffs are taxes

Underwood-Simmons Act 1913

➔ removed quotas and tariffs on philippine export to us

➔ prevented products with 20% raw materials from the philippines to enter the us market

Tydings Mcduffie Law 1934

➔ it granted the philippines an independence after a ten year transition period under the
commonwealth government
➔ the president of the commonwealth was Manuel Quezon.

Japanese Period

- japanese imperial ruled filipinos by terror

- the country was on a command economy
- transportations were confiscated, factories were closed down and destroyed
- people are unemployed
- the acute shortage of supply of commodities created a hyperinflation
- mickey mouse money lost its value, prices were beyond the reach of ordinary people
 ★ Mickey mouse money is money issued by the japanese which they overproduced
leading to the value of the money to deflate

- country was under jose laurel

- laurel encouraged filipinos to plant every vacant lot with fast growing crops
- kangkong was planted everywhere and it became the people’s favorite

The National Food Production Campaign Office

➔ created to address the worsening food problem

The Economic Planning board

➔ formed to supervise the procurement of Prime commodities

Bigasang Bayan and National Distribution Corporation

➔ organized to ensure that rice and other goods were equitably distributed.

TWILIGHT DAYS OF COMMONWEALTH

On Feb 2, 1945, the Philippines was liberated from Japan. MacArthur proclaimed the liberation
on July 4, 1945.

Estimation of the destruction during WW2

-582,500,000 Damage to industries

-798,767,595 Domestic assets lost

-35% remaining livestock

-40% agricultural lost

The Last two presidents, Sergio Osmena and Manuel Roxas, knew too well that the Philippine
economy could not solve the economic problem so they asked for the assistance of the US.
Making them pass the Bell Trade Act

★ Bell Trade Act is the law that resumed the free trade relation between the Philippines
and US.

The Philippine Civil Affairs Unit

➔ created by the US army to distribute food and rationed goods based on the number of
persons per family.
SUMMARIZATION:
ECONOMIC POLICIES OF PH PRESIDENTS

Postcolonial Period

- filipinos regained their independence on july 4,1916

- third philippine republic was inaugurated
- manuel roxas became the first president