MODULE: RIZALCRS – LIFE AND WORKS OF RIZAL

CHAPTER 2 – THE 19TH CENTURY PHILIPPINE ECONOMY,

SOCIETY, AND THE CHINES MESTIZOS.

A. Locate Rizal’s life in the Philippines within the wider context of the developments in
the nineteenth century;
B. Explain the important role of the Chinese mestizos and their ranks within the
changing Philippine economy and society.
C. Discuss the interplay of several factors that contributed to the changing landscape
of Philippine society and economy.

THE CHANGING LANDSCAPE OF PHILIPPINE ECONOMY AND SOCIETY

Scholars recognize the 19th century (January 1, 1801 – December 31, 1900) as a period
marked by significant transformations in the Philippines. This era witnessed profound shifts in
economic, political, social, and cultural landscapes. Towards the end of the 18th century, Spain
underwent a dynastic transition from the Habsburgs to the Bourbons, leading to a recalibration of
colonial policies that impacted the Philippines.
In an effort to revitalize the profitability of its colonies, including the Philippines, the Bourbon
administration implemented policies and reforms. Jose De Basco y Vargas, the first governor
general appointed to the Philippines under the Bourbon regime, assumed office in 1778.
Route of Galleon Trade

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Upon Basco's arrival, the Galleon Trade, which had been the cornerstone of the Philippine
economy, was already declining. Spain sought to address the empire's economic challenges by
capitalizing on the global trend of industrialization. The increasing demand for raw materials spurred
interest in exploring the agricultural potential of the Philippines. Consequently, there was a shift
towards an export-oriented economy, focusing on the archipelago's agricultural products.
Basco took steps to implement these changes by establishing the Royal Philippine Company
in 1785. This company aimed to finance agricultural ventures and oversee the new trade routes
between the Philippines, Spain, Europe, and other Asian markets. However, these reforms
encountered resistance from various quarters. The Catholic Church opposed the labor
adjustments proposed by the reforms, while traders clung to the traditional Galleon Trade.
Moreover, the Royal Philippine Company faced challenges of mismanagement and corruption.
Global events continued to affect the Philippines at the beginning of 19 th 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. Manila was opened to world trade by 1834.
While the Industrial Revolution marked a pivotal moment in history with the advent of steam
engines and machinery transforming manufacturing across various European cities. This revolution, a
hallmark of the 19th century, catapulted Europe from agrarian economies reliant on manual labor to
dynamic industrial powerhouses. Traders seized opportunities to become the first capitalists, while the
workforce comprised former farmers who migrated from rural areas and remote provinces of Europe.
This transformative era brought forth numerous impacts:
1. The opening of the Philippines to global commerce.
2. Increased involvement of foreigners in manufacturing and agriculture.
3. The Philippine economy experienced dynamism and equilibrium.
4. Emergence of a new influential and affluent Filipino middle class.
5. Encouragement for widespread participation in trade.
6. Promotion of migration and population growth.
These effects underscored the profound changes and advancements spurred by the Industrial
Revolution, reshaping economies and societies on a global scale.
As Manila emerged as a prominent trading center, it attracted migrants
seeking improved opportunities or fleeing worsening conditions in rural areas.
The rising internal migration rate raised several concerns, with people
congregating in trade hubs like Manila. This influx led to overcrowding, posing
challenges in housing, sanitation, public health, and an uptick in criminal
activity.
To address these issues, Governor-General Narciso Claveria issued a
decree in 1849 urging the adoption of surnames among the colony's
inhabitants. With the creation of a "catálogo de apellidos" (surname catalog),
the colonial government assigned surnames and prohibited individuals
from changing names arbitrarily.

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MODULE: RIZALCRS – LIFE AND WORKS OF RIZAL

Additionally, other policies, such as mandatory registration and possession of a "cedula

personal" (personal identification card) containing one's name and residence, were implemented to
enhance surveillance mechanisms by the colonial administration.
THE CHINESE, CHINES MESTIZOS, AND SOCIAL
STRATIFICATION
The sectors that greatly benefited from the changing
economy were the Chines and the Chinese mestizos. Since pre
colonial times, the natives of the Philippines had trade relations with
the Chines. During the Galleon Trade, it was also Chinese products
that comprised most the goods being traded.
Among these traders were mestizos, hailing from Spanish
and Chinese families, who established merchant houses in Manila.
Additionally, there were the ilustrados, belonging to the landed
upper class, who commanded respect in their hometowns or
pueblos but were deemed rebels, or filibusteros, by the friars.
Thanks to their fortunes, the ilustrados could afford to send their
children to Spain and Europe for further education, where they
attained degrees on par with Spaniards. Notably, issues of equality
CHINES and secularization were paramount during this period,
MESTIZOS fueling Jose Rizal's lifelong quest for equality.
The rise of Chinese and Chinese mestizos in the Philippines was fueled by the expanding
economy. Even before Spanish colonization, they held various roles like traders, craftsmen, and
household workers. This growth raised concerns among Spanish colonial rulers who feared their
potential to challenge Spanish authority. There were worries that the Chinese might prioritize loyalty to
the Indios (Christianized natives) over Spanish rule.
Nevertheless, despite these concerns, the Spanish acknowledged the vital role of the Chinese
in the economy. They formulated strategies to integrate the Chinese populace, encouraging
intermarriage with the Indios, resulting in the emergence of Chinese mestizos. These individuals
played crucial roles during the Spanish colonial era, acquiring land, accumulating wealth, and
wielding influence in society.
To acknowledged the population of industrious Chinese mestizos, the Spanish government
granted them privileges such as the right to marry at sixteen without parental consent, a
privilege denied to the Indios. This policy aimed to foster a demographic that would significantly
contribute to the colony's economic prosperity.
Also, during this period, significant advancements in transportation and communication
occurred with the construction of railways and steamships, providing safer, faster, and more
comfortable travel options. Bridges were also erected, further facilitating movement and trade. Of
particular note was the opening of the Suez Canal, championed by Ferdinand de Lesseps, a
Frenchman, on November 17, 1860. This canal provided a shorter route for global trade,
significantly reducing travel times. As a result, closer interactions between the Philippines and other
countries around the world ensued, fostering greater connectivity and exchange.
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MODULE: RIZALCRS – LIFE AND WORKS OF RIZAL

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, delineating the following social strata:
PENINSULAR Pure-blooded Spaniard born in the Iberian Peninsula (i.e., Spain)

INSULAR Pure-blooded Spaniard born in the Philippines

MESTIZO Born of mixed parentage, a mestizo can be:

Spanish mestizo – one parent is Spanish, the other is a native;
or Chinese mestizo – one parent is Chinese, the other is a
native

PRINCIPALIA Wealthy pure-blooded native supposedly descended from the kadatoan (the
domain/jurisdiction of the datu) class

INDIO Pure-blooed native of the Philippines

CHINO INFIEL Non-Catholic pure-blooded Chinese

As the Spaniards began to lose economic power in the 19th century, they sought to maintain
dominance based on their racial heritage. This issue led to complexities with the emerging principalia
and mestizo populations, who recognized their crucial role in society as key players and facilitators of
the economy. Throughout the century, the renegotiation of social status persisted, with mestizos and
the elite principalia demanding social recognition that pure-blooded Spaniards had long denied them.
Wealthy mestizos and members of the principalia continued to accumulate economic and
cultural capital. They also seized the opportunity to pursue higher education, not only within the
Philippines but also in Europe. These pursuits further elevated their significance in society, as it was
from these ranks that expressions of nationalism would eventually emerge.
 IMPACT ON EDUCATION
The economic, social, political and cultural developments drastically change. Thus, 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 towns to set up primary schools to
teach the population how to read and write.
It eventually led to the passage of an education decree in 1863 that mandated free primary
education. The 19th century also gave birth to many schools that addressed the growing demand
for more professionals. Schools like Ateneo Municipal (Ateneo de Manila University today) were
established during this time. The complex nature of the developing economy also allowed the
government to intensify bureaucratization and to streamline colonial governance.
Education was controlled by the friars. They taught students to fear God and obey them, while
also instilling a sense of inferiority, suggesting that Filipinos were only suited for manual labor.
Students were mainly tested on how well they could memorize without truly understanding what they
were learning. This led to Filipino students feeling inferior and reluctant to speak up.
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MODULE: RIZALCRS – LIFE AND WORKS OF RIZAL

By the late 19th century, the University of

Santo Tomas (established on April 28, 1611, it is
considered the first and oldest university in Asia)
was the only school offering various courses like
medicine, law, and philosophy, but initially, only
Spaniards and mestizos were allowed to enroll.
Eventually, Filipinos were admitted.
Around the same time, public schools for
Filipinos were established by decree, with one school
for boys and one for girls in each town. The teaching of
Spanish was emphasized, as it was required in all
schools. However, the friars opposed teaching Spanish
to Filipinos because they feared it might lead to the
Filipinos seeking independence.

Univ
ersity of Santo Tomas
 Despite this opposition, some schools like Ateneo, Letran, and UST continued using Spanish
as the main language of instruction. This gradually improved education in the Philippines during the
Spanish colonial period.

• Abinales, Patricio and Donna Amoroso. 2005. State and society in the Philippines. Pasig:
Anvil Publishing, Inc.
• Schumacher, John N. 2008. Rizal in the context of the 19th century, pp. 16-34.
Quezon City: Ateneo De Manila University Press.
• Wickberg, Edgar. 2000. The Philippine Chinese before 1850. In The Chinese in
Philippine life, 1850-1898, pp. 25-36 Quezon City: Ateneo de Manila University
Press

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