3.

THE ECONOMY OF 19 TH CENTURY

PHILIPPINES & ITS DEVELOPMENT

Sir Neil
Welcome!
 • Pre-Hispanic Economy of the Philippines
• Pre-19th Century Economy of Colonial
Philippines & its Effects
• Galleon Trade
• Encomiendas
OVERVIEW • 19th Century Economy of Colonial
Philippines & its Effects
• Concepts such as Mercantilism,
Globalization, & Capitalism
 DI SCUSSION QUE ST I ON:

W H Y I S ST UDY I NG T H E E CONOMY DUR I NG T H I S T I ME

R E L E VANT TO R I Z AL ?
 WHY?

• Through studying the changing economic

Dynamics of Jose’s Rizal time, we can better
know the conditions that shaped his life and
thought
• Rizal was not a born as he was out of the
womb! He was shaped by and responded to
the world around him!
 PRE-HISPANIC ECONOMY

• Swidden Cultivation
• Slash & Burn
• Itinerant not settled
• Slave Raiding
• Slaves were the currency in precolonial times
• Too much land not enough bodies
• Trade
• Chinese Junks
• Other Pre-colonial Filipino People
• Rice based economy in more State-like settlements, Manila, and Butuan
 PRE-19 TH CENTURY SPANISH
COLONIAL ECONOMY

• Mercantilism
• An economic System where a State tries to maximize
its exports and minimize imports i.e. a balance of trade
• Usually through the accumulation (or loss) of gold or
silver
• To Maximize Exports States usually colonize holding to
access raw materials and labor
• To Minimize Imports States will Highly regulate trade
with other States or even other colonies
• The State highly controls the economy rather than
private Individuals
 P R E - 1 9 TH CE NT URY
SPANI SH
COL ONI AL
E CONOMY

• Galleon Trade
• Trade between Asia, Manila,
and Acapulco in Mexico
• In Manila, products from
around Asia (most notably
China) where traded for
Silver from Mexico, which
were also then traded to
Spain itself
 PRE-19 TH CENTURY SPANISH COLONIAL
ECONOMY

• Galleon Trade contd.

• Highly controlled by State, so colonies did not compete with Spain itself
• 2 Galleons per Year made the trip
• Govt decided who was allowed to Ship their products via Galleon through
Boletas
• Manila made revenue through various docking and trading fees
• Individuals made profit through trading monopolies & ship building
 PRE-19 TH CENTURY SPANISH
COLONIAL ECONOMY

• Encomienda System
• The Church was given agricultural land
holdings under Spanish crown.
• Church gained income through subleasing
schemes.
• Used as a way to maintain control of the
Islands and its Peoples against foreign powers
• Agricultural Exploitation not as severe and
various in New World countries due to PH
bigger reliance on the Galleon trade than on
agriculture
 P R E - 1 9 TH CE NT URY SPANI SH
COL ONI AL E CONOMY
CONT D.

• Effects of Galleon Trade

• Chinese Immigration as a consequence of trading and a need for
specialized labor
• Mostly from Fujian/ Hokkien places of China
• Also functioned as money-lenders
• Creation of a corrupt Minority Merchant Class
• Lack on Agricultural and Industrial Development
• Exploitative Polo y Servicio for ship building
• Mandatory 40 days of forced labor per year
• Cultural (tangible and Intangible) exchange with the West and
New World
• e.g. Maize, Nanay comes from Nahuatl
 GLOB ALIZATION

• Growing interconnectedness of
the World due to changes in
technology, the free-market, and
social/political organization.
• Scholars call this
Phenomenon of
“interconnectedness”
Globalization
• The free movement of goods,
peoples, and ideas between
Nations
• Galleon Trade was one of the
first instances of economic
globalization
 19 TH CENTURY
PHILIPPINE ECONOMY

• Changes due to domestic crises in Spain

• Napoleonic Wars in the Early 1800s had left Monarchs of Spain out of
power
• Allowed for a more liberal government to enter political power,
• privatized the Galleon Trade
• Not controlled by the State but individuals
• Free Trade between States & Colonies
• Confiscated the Church’s Landholding
• Put on sale for Private individuals
• Constant Crisis made Spain weak thus, political presence of the Spanish
Colonial Government, Relative to other Colonial Regimes at the Time
 DI SCUSSION QUE ST I ON:

W H AT DO YOU T H I NK W E R E T H E E FFE CTS OF T H E E CONOMI C

DE V E LOP MENT S OF T H E 1 9 TH CE NT URY P H I L I P P I NES?
 E FFE CT S OF 1 9 TH
CE NT URY
CH ANG ES

• Paved the Way for a more capitalist

economy
• Free Trade between nations and
peoples encouraged,
• Industries are controlled by private
individual capitalists not by the State
• Industry and Technology Developed
Rapidly,
• Capitalists from America and
England (Spain didn’t really have a
economic presence) invested in
Technologies, Transportation and
Infrastructure, now that
everything wasn’t controlled by
the State
 EFFECTS OF 19 TH CENTURY
CHANGES

• New social classes

• Chinese Mestizo
• Bought large tracks of land that had no tenants as well
as from the Church
• Rise of Educated Middle Class,
• Neither coming from Church or State
• Educated Abroad, and had increasing influence in
Philippine Society
QUESTIONS?
END!

Thank you!