Martinez, Patrisha Pearl B.

BSN 3-4

The 19th century was a period of global change and innovation, with Spanish and
Americans seeing the rise of industrialization, democracy, and nationalism. In the Philippines, it
marked the "cash-crop economy," impacting indigenous communities as large portions of land
were dedicated to growing valuable crops like abaca fiber, coffee, sugar, and tobacco. Tax
collection challenges under Spanish rule, including corruption and resistance, were depicted in
Rizal's novels (Abueg, 2017). This era played a crucial role in shaping Philippine history through
economic shifts and cultural transformations.

The Philippines is a main exporter of those products due to its openness to international
trades and plentiful availability of those commodities. A money-based economy replaced
barter.As Jacinto (2014) noted, this shift from barter to a money-based economy led to the rise of
the middle class, with land and cash crops becoming primary sources of wealth. Technological
advancements like railroads, steamships, and improved communication networks connected the
Philippine islands, while literacy emerged as a powerful tool for decolonization. The Philippines
became one of the world's richest countries during this time due to its leading position in cash
crops production and modern technological infrastructure.

However, there are drawbacks to successes. The imbalance between business and
subsistence farming, the emergence of epidemics, the economic inequalities maintained by
means of colonial machinery, and the limited possibilities for Filipinos to participate in economic
activities on a fair basis have made the lower-income groups more prone to illnesses. With
individuals like Jose Rizal and other nationalist leaders arguing for changes to deal with these
financial issues as a part of their greater advocate for political and social change, these
discrepancies contributed to the rise of nationalism.

Several factors influence a country's economic growth. First, agriculture and natural
resources play a crucial role, as seen in the Philippines during the 19th century when cash crops
like sugar, tobacco, and abaca were major exports. This category also includes commercial real
estate and resources like oil, gas, coal, and metals (Ross, 2019). The second factor is labor, often
referred to as human resources. Labor consists of the people responsible for creating goods and
services, from start to finish, and the effort they contribute.The great of the team of workers
relies upon factors like capabilities, creative competencies, training, and education. A
well-skilled and trained workforce can produce high-quality output, while a shortage of skilled
labor can hinder economic growth. Surplus labor, on the other hand, has a relatively smaller
impact on economic growth (Nitisha, 2015). Moreover, Capital formation refers to the
production and acquisition of man-made products, expanding the availability of capital per
worker and increasing the capital/labor ratio. Contrary to common belief, capital isn't limited to
cash; it encompasses various assets. During economic booms, corporations can access capital for
spending, investments, and sustained profitability.

Last factor is entrepreneurship. Entrepreneurs, as visionaries and innovators, play a

pivotal function within the entire production system.They integrate all factors of production to
conceive, create, and deliver products or services. During Spanish colonial rule, the Philippines
participated in trade with other nations. This trade no longer only fostered the trade of goods but
also facilitated the sharing of thoughts and cultures. Furthermore, infrastructure improvement,
Martinez, Patrisha Pearl B.
BSN 3-4

especially the development of roads and ports, contributed to monetary increase by enhancing
transportation and connectivity in the archipelago.

Economic development in the Philippines had a mixed impact on society. While it

propelled progress, it also exacerbated social inequality, concentrating wealth and power in the
hands of a colonial elite, leaving the majority with limited benefits. This meant that a small
segment of society enjoyed the fruits of economic growth, while the majority faced challenges in
accessing its benefits. Trade and economic ties with other countries brought cultural exchanges,
turning the Philippines as a crossroads for trade, becoming a melting pot of cultures, influences,
and ideas. Lastly, as cash crop cultivation expanded, conflicts arose over who had the rightful
claim to the land and its benefits. These agrarian issues fueled social unrest and tensions within
Filipino society.

In reflecting on these aspects, I can infer that it is evident that economic growth at some
point of this era became a double-edged sword.While it brought prosperity and cultural
exchange, it also sowed the seeds of inequality and agrarian conflicts, shaping the multifaceted
and intricate history of the Philippines.

I would rate the economic developments during Rizal’s time as Satisfactory with both
positive and negative aspects contributing to this evaluation. On the positive side, the opening of
trade in the Philippines during this period marked a significant milestone in global economic
history. It played a crucial role in connecting continents, uniting the Americas, Europe, and Asia
through commercial ties. This development showcased the Philippines' role in the global
economy, contributing to international trade and cultural exchange..While there were significant
economic activities, there were also significant challenges, including social inequality and land
disputes. The economy was heavily dependent on cash crops and lacked diversification.
Moreover, the colonial government's policies often favored the Spanish elite over the Filipino
population. The Philippine Revolution within the 19th century and the country's struggle for
independence were made possible through economic relations with other international locations
and the improvement of education, which collectively performed an important role in the
eventual awakening of nationalism.

References:

Abueg, L. (2017). An Econometric History of Philippine Trade: 1810-1899 Preliminaries and Contextualization. In An
Econometric History (pp. 1810–1899). Retrieved from https://www.dlsu.edu.ph/wp-content/uploads/2019/03/9abueg-012517.pdf

Jacinto, P. (2014, May 18). 19th Century Philippines: A Blast from the Past. Retrieved from P.Jacinto website:
https://pjacintoblog.wordpress.com/portfolio/19th-century-philippines-a-blast-from-the-past/

Legarda, B. (2019). After the Galleons: Foreign Trade, Economic Change and Entrepreneurship in the Nineteenth-Century
Philippines. Retrieved from Eh.net website:
https://eh.net/book_reviews/after-the-galleons-foreign-trade-economic-change-and-entrepreneurship-in-the-nineteenth-century-ph
ilippines/

Nitisha. (2015, January 10). 5 Factors that Affect the Economic Growth of a Country. Retrieved from Economics Discussion
website: https://www.economicsdiscussion.net/economic-growth/5-factors-that-affect-the-economic-growth-of-a-country/4199

Ross, S. (2019). Why are the factors of production important to economic growth? Retrieved from Investopedia website:
https://www.investopedia.com/ask/answers/040715/why-are-factors-production-important-economic-growth.asp