GEC 9: The Life and Works of Rizal

Chapter: 2 Week: 3

THE 19TH CENTURY PHILIPPINES AS RIZAL’S CONTEXT

Objectives:
At the end of this activity, the student should be able to:
 Locate Rizal’s life in the Philippines within the wider context of the developments in the
nineteenth century.
 Explain the important role of the Chinese Mestizos and their ranks within the changing
Philippine economy and society; and
 Discuss the interplay of several factors that contributed to the changing landscape of
Philippine society and economy.
Discussion:
The Changing Landscape of Philippine Economy and Society
Many scholars consider the nineteenth century as an era of profound change in the
Philippines. During this period, vast economic, political, social, and cultural currents were felt.
Change, however had its initial ripples in the previous century. By the late eighteenth century,
the monarchy in Spain experienced a dynastic shift from the Habsburgs to the Bourbons. Under
the new leadership, Spain recalibrated colonial policies that would have an effect on the
Philippines. With the goal of invigorating the profitability of the colonies like the Philippines.
Bourbon policies and reforms were carried out. The first governor-general to the Philippines
under the Bourbon mandate was Jose de Basco y Vargas who arrived in the Philippines in 1778.
By the time Basco arrived, the Galleon Trade, the main economic institution existing in
the Philippines, was already a losing enterprise. As Spain sought ways to salvage the dwindling
economy of the empire. As many imperial powers in Europe and the West were undergoing
industrialization, an increased demand for raw materials presented an opportunity to look into the
agricultural potential of the Philippines Thus, it was viewed that the transformation of the
economy towards being export oriented, harnessing the agricultural products that could be
yielded from the archipelago, was the way to go
To better facilitate the envisioned reorientation of the economy, Basco established the
Royal Philippine Company in 1785 to finance agricultural projects and manage the new trade
being established between the Philippines and Spain (and Europe) as well as other Asian
markets. These changes, however, were met with lukewarm reception. Resistance also came
from various sectors like the Catholic Church that was not receptive of the labor realignments
entailed by the planned reforms, and traders that were still holding on the Galleon Trade. It also
did not help that the Royal Philippine Company was fraught with issues of mismanagement and
corruption. As Basco pushed for the reforms, he lifted a ban on Chinese merchants that
reinvigorated internal trade; initialized the development of cash crop farms; relaxed certain
policies that allowed the gradual opening of Manila to foreign markets; and established the
Tobacco Monopoly to maximize the production of this export good.
Global events continued to affect the Philippines at the beginning of the nineteenth
century. By 1810, the Mexican War of Independence rattled the Spanish empire, as it would
eventually lead to the loss of the precious Latin American colonies. With this came the eventual
end of the Galleon Trade which became a concern in the Philippines. As the Philippine economy
hung in the balance, policies were recalibrated and with the eventual closing of the Royal
Philippine Company, Manila was opened to world trade by 1834. As a result, foreign merchants
and traders came and eventually resided in Manila and took over the role of financing and
facilitating the burgeoning agricultural cash crop, export-oriented, economy. Some of the major
investments came from British and American traders that set up merchant houses in Manila.

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 The rapid development of the economy began to flow in the Philippines through cash
crops. By the first half of the nineteenth century, majority of the exports of the Philippines came
from cash crops like tobacco, sugar, cotton, indigo, abaca, and coffee.
The importance of land became more evident as cash crops became the major source of
revenue in the colony. As the provinces shifted to cultivating cash crops, land ownership and
management began to be a concern. The farmers felt the pressure of the economy while the
hacienderos grabbed the opportunity. For example, when a small landowner needed capital and
money, he would engage in a pact de retroventa, an agreement of sale guaranteeing that he could
buy the land back at the same price at which it was sold. However, it became difficult to buy
back land given the continuously increasing demand of the economy and the renewal of the sale,
which further buried the farmers to indebtedness. Eventually, they would forfeit the land and
would be forced to become tenant farmers, or kasama. Aside from this mode, land acquisition
also came in the forms of land grabbing. As the growing economy required better management
of lands, inquilinous emerged, renting land to sublet it to smaller farmers. These factors would
bring change to the social stratification in the country side that, as the next chapter will show did
not continue without tensions and contestations.
The Chinese and Chinese Mestizos
The sectors that greatly benefited from the changing economy were the Chinese and the
Chinese mestizos. Since precolonial times, the natives of the Philippines had trade relations with
the Chinese. During the height of the Galleon Trade, it was also Chinese products that comprised
most the goods being traded. The influx of Chinese settlements in the Philippines made the
Spaniards suspicious of the Chinese. These feelings led to stringent state policies towards the
sangley ranging from higher taxes, the restriction of movement with the establishment of the
Chinese enclave (the Parian), to actual policies of expulsion.
The Chinese. However, proved to be “necessary outsiders” in Philippine colonial
economy and society. Although the Spaniards were wary of the Chinese, they realized the
importance that the latter played in sustaining the economy. From the goods loaded on the
galleons to the development of retail trade, the Chinese enlivened the economy. Eventually and
gradually, they became integrated into colonial society, giving rise to intermarriages with Indios
that gave birth to Chinese mestizos. The Chinese mestizos assumed an important role in the
economy all throughout the Spanish colonial period. They influenced the changing economy in
the nineteenth century b purchasing land accumulating wealth and influence.
Impact on Life in the Colony
The economic development, as mentioned, precipitated social, political, and cultural
developments as well. For example, the new economy demanded a more literate population to
address the rising need for a more professionalized workforce to man the trading activities in
Manila and other centers. This demand compelled the issuance of the colonial government order
in 1836 that required all tons to set up primary schools to teach the population how to read and
write. It eventually led to the passage of an education. Eventually, the nineteenth century also
gave birth too many schools that addressed the growing demand for more professionals. Schools
like Ateneo Municipal were established during this time. The complex nature of the developing
economy also allowed the government to intensify bureaucratization and to streamline colonial
governance.
As Manila became a trading center, it became a viable destination for people seeking
better opportunities or those wanting to escape the worsening conditions in the farmlands. The
increased rate of internal migration raised several concerns. One, people flocked the centers of
trade like Manila. Overcrowding implied issues in living quarters, sanitation and public health,
and increase in criminality. Two, the continuous movement of people make tax collection extra
difficult. In order to migrate these concerns, one measure implemented was the 1849 decree of
Governor-General Narciso Claveria that urged the people in the colony to adopt surnames. With
the catalogo de appellidos drawn up, the colonial surnames. To people and forbade changing

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names at will. Together with more policies like the registration and possession of a cedula
personal bearing one’s name and residence, the colonial government sought to have a better
surveillance mechanism. To help carry out policies better, the guardian civil eventually
established. As the new economy afforded the colonial state new opportunities it also prompted
the state to be more regulatory and to assert its authority.
Renegotiating Social Stratification
The Philippine society felt the impact of the developing economy. As a result, social
relations underwent redefinitions and the changing dynamics brought about a renegotiation of
social stratification. With the growing relevance of the mestizo population, new lines were drawn
with the following social strata:
Peninsulares - Pure-blooded Spaniards born in the Iberian Peninsula (i.e, Spain)
Insulares – Pure-blooded Spaniards born in the Philippines
Mestizo – Born of mixed parentage, as mestizo can be:
1. Spanish Mestizo – one parent is Spanish, the other is a native; or
2. Chinese Mestizo – one parent is Chinese, the other is
a native
Principalia – Wealthy pure blooded native supposedly descended from the kadatoan
class
Indio – Pure – blooded native of the Philippines
Chino infiel – Non-Catholic pure blooded Chinese

As the Spaniards lost economic power in the nineteenth century, they asserted dominance
by virtue of their race. This issue brought complications with the rising principalia and mestizo
population who realized their indispensable position in society as movers and facilitators of the
economy. The renegotiation continued throughout the century as the mestizos and the principalia
elite eventually demanded social recognition that the pure-blooded Spaniards had consistently
denied them.
These wealthy mestizos and members of the principlia continued to amass economic and
cultural capital. They also availed themselves of the opportunity to obtain higher degrees of
education not only in the Philippines but also in Europe. These activities augmented their
relevance in society as it was from these ranks that articulations of nationalism would emerge.

Reference:
Wani-Obias et. al., (2018) The Life and Works of Rizal. Quezon City. C&E Publishing, Inc.

1st AY. 2021-2022