ECONOMIC INSTITUTIONS IN THE PHILIPPINES UNDER SPAIN

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description

-a guide to better understanding of the economic transition of the Philippines under Imperial Spain

Transcript of ECONOMIC INSTITUTIONS IN THE PHILIPPINES UNDER SPAIN

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http://taxation5.blogspot.com/2008/11/vi-history-of-taxation.html

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1571 – 8 reales1589 – 10 reales1851 – 12 reales

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The government required each province to meet the quota of commodities assigned to it.

The farmers of southern and central Luzon suffered from this form of taxation

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An annual subsidy that came from duties collected on goods from Philippines which were exported in Mexico

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FORCED LABOR

- instituted in 1580- men between the ages of 16 and 60 were required to render services for 40 days in the labor pool or polo- the laborers were called polistas- 1/4 real a day plus rice to each polista- reform decree of 1884 reduced the number of days

required to 15 days

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Conditions- it should be used only for necessary public

works and constructions intended to improve the community- workers were to be paid in full for their work

- alcaldes mayor should consider the physical condition of each laborer, that is, the weak should not be overworked

- laborers should not be sent to work in distant lands

- giving of service should be timed so as not to interfere with the planting or harvest seasons

http://ezinearticles.com/?The-Forced-Labor-and-Tribute-of-the-Filipinos-During-Spanish-Period&id=5620267

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The Filipinos were no better than slaves- no certainty in receiving their daily

allowances- made to work beyond conditions- exemption through falla- resulted to “white collar job” mentality

of Filipinos

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Basco’s Economic Reforms - came about during the period of

“enlightened despotism” in Europe (1757-1800)

- Governor General Jose Basco y Vargas instituted reforms intended to free the economy from its dependence on Chinese and Mexican trade.

  - “Economic Society of Friends of the

Country” was established in 1781  - also brought about the establishment of

the Tobacco Monopoly 1781-1782  http://www.philippine-history.org/galleon-trade.htm   http://www.britannica.com/EBchecked/topic/931000/enlightened-despotism   http://countrystudies.us/philippines/5.htm   http://theurbanhistorian.tumblr.com/post/8628183863/economic-society-of-the-friends-of-the-country-and-the

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Tobacco Monopoly

- established by Basco in 1781-1782 and lasted until 1881

- tobacco industry was placed under government control

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Advantages- Philippines became self-sufficient- considerable profit to the government- placed large hitherto undeveloped

lands under large-scale cultivation Disadvantages

- insurmountable economic difficulties to Filipinos

- food production declined- government agents abusing their

authority- bad habits among Filipino farmers

http://www.philippine-history.org/galleon-trade.htm

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- Encomienda, from the word~ Encomendar [to entrust]

- A revenue getting Hispanic Institution introduced to the Philippines via Mexico

- A feudal institution to REWARD deserving generals and conquerors during the Reconquista

FEUDAL LORDS = ENCOMIENDEROS- A GRANT TO A MERITORIOUS SPANIARD

TO EXERCISE CONTROL OVER A SPECIFIC PLACE INCLUDING ITS INHABITANTS

- Teodoro Agoncillo, History of the Filipino People

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encomienda (ānkōmyān`dä) [Span. encomendar=to entrust], system of tributory labor established in Spanish America. Developed as a means of securing an adequate and cheap labor supply, the encomienda was first used over the conquered Moors of Spain. Transplanted to the New World, it gave the conquistador control over the native populations by requiring them to pay tribute from their lands, which were "granted" to deserving subjects of the Spanish crown. -http://encyclopedia2.thefreedictionary.com/Encomienda+system

Purpose of Encomienda:1.To organize the colony2.To indoctrinate the natives

Teach Catholic doctrines

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Kinds of Encomienda1] Royal or Crown- land reserves for the crown

and included principal towns and ports, like Bagumbayan [Luneta], Malabon, Navotas, Santa Ana

2] Private- were granted to the individuals who were either Kigs’s Proteges or men who served with merit during Conquest,like, Sampalok, Pandakan, Batangas at Bataan

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ENCOMENDERO authorized to collect Tribute of 8 reales yearly in cash or in kind from all 19- 60 years old Filipino Males of Private Encomiendas.> ¼ of the total collection went to the encomendero, another portion the priests and the remaining to the government.

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GALLEON TRADE

What IS A GaLLEON TRADE?

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*also known :Manila-Acapulco Trade(Spanish: Galeones de Manila-Acapulco(Tagalog: Kalakalang Galyon ng Maynila at Acapulco)

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*Trading between Manila in Spanish East Indies (present day-Philippines), and Acapulco, New Spain (present-day Mexico).

*A trade monopoly of the Spanish government of the importation and exportation of various products in the country that lasted for more than 250 years . (1565-1815)

*The only chief source of official as well as individual income in the colony.

http://www.philippine-history.org/galleon-trade.htm

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The Manila-Acapulco galleon trade began when

Andrés de Urdaneta, sailing in convoy under Miguel López de Legazpi, discovered a return route from Cavite City to Mexico in 1565.a well-known circumnavigator before his stint as an Augustinian priest, the galleons, (one galleon at a time) plied the trans-pacific from the Philippines to Mexico.it would take four months of sailing from Manila (which actually landed first in Cebu) to Acapulco, New Spain (present-day Mexico). http://en.wikipedia.org/wiki/Manila_galleons

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The Manila-Acapulco trade route started in 1568 and Spanish treasure fleets (white) and its eastwards rivals , the Portuguese India Armadas routes of 1498-1640 (blue). http://oh-wheezers.blogspot.com/2010/10/manila-acapulco-galleon-trade.html#axzz22BrJZ2wL

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*The Galleon trade had funds called Obras Pias ( “pious works – foundations which invest their money in trade and devotes the profit to charitable works ) which were donated by rich people for charity.

- CLERGY – heaviest investor in the galleon trade .

*obras pias was controlled by the friars

*Some friars borrowed money from the funds and most often, the money was Never returned.

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• The Manila Galleon was the single biggest piece of evidence attesting to the importance of the Philippines to Spain then. Manila became a trading and transshipment port for Spain where men and merchandise could be picked up and transported to Acapulco, Mexico.

• Asian countries such as China, Japan, India, Siam, Moluccas brought their products to Manila to be sold to Spanish traders who exported them to Mexico, where they were sold at high profit.

• However , in the late 16th century, SPAIN closed the colony to foreign commerce and allowed only 2 countries : CHINA and MEXICO .

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RESTRICTIONS imposed by spain (1593)*Galleon traders were allowed only one

port of entry in Mexico – ACAPULCO – ;*Only two ships each year to trade , 1

incoming and another outgoing ;*Galleon traders were allowed no more than P250 000 worth of exports from manila and no more than P500 000 worth of imports from Mexico .

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Silver bullion minted coins

porcelains

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*In the book, After the Galleons, Benito Legarda sites that during the galleon trade, 99% of goods arriving the Philippines were Mexican silver headed for China. In those times, a piece of gold in China was equivalent to 6 to 8 pieces of silver, while in Europe, a piece of gold was equivalent to 13 pieces of silver. The chinese could only sell their commodities on a wholesale basisto a government appointed committee , which in turn distributed the commodities to retail merchants in the colony .

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*Exports to acapulco consisted mainly of chinese and other Oriental goods brought by the chinese merchants ; only a negligible portion of these exports were truly philippine products. about 90% of bulk of items leaving the Philippines were Chinese origin, and only 10% was sourced from the Philippines such as gold, pearls and plants.

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NEGATIVE AND POSITIVE EFFECTS OF GALLEON TRADE

• NEGATIVE EFFECTS-The economy of Philippines slowed down-The basic agricultural production were set aside due to the prioritization of its commercial aspect like abaca and tobacco-The Spaniards forgot that it was not only the galleon trade were the source of income of the government -, many people died as since the boat sank a couple of times because of an overload in goods like gold and silver.

http://wiki.answers.com/Q/What_are_the_effects_of_the_Manila_Galleon_Trade

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*POSITIVE EFFFECTS -They were able to prolonged the

colony of Spain ( for spain ) -It was the main source of income for

both the government and the church leadership -It maintained the natural resources

of the country -It opened the doors to the westerned

countries for the conceptualization and adaptation of the modern technologies

-It manifested a cultural exchange for the Filipinos and foreigners

-Obras Pias http://wiki.answers.com/Q/

What_are_the_effects_of_the_Manila_Galleon_Trade

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End of the Galleon trade*Revolution in Mexico

*Constant attacks by pirates in the Pacific

*The galleon trade stopped when Mexico declared independence from

Spain*Because it was always raided and

sinking, the King of Spain had to abolish the Galleon trade

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ROYAL ECONOMIC SOCIETY OF FRIENDS OF THE COUNTRY

– principles of enlightenment– Pedro Rodriguez de Campomanes : economic development through agriculture and industry.

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Governor general Jose Basco y Vargas– arrived in 1781– 1781 : Real Sociedad Economica de Amigos del Pais

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– Jose Basco y Vargas as president– businessmen, inventors, excelled in the sciences, liberal arts and engineering.– Self- sufficient , self-reliance– cash rewards to plant cash crops

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MAGTANIM AY DI BIRO.

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Governor general Simon Salazar de Anda– encourage the establishment of an economic society– little improvement– kingdom of Hyder Ali of Mysore– Ramon Ysasi and Miguel Antonio GomezSource: Basques in the Philippines by Marciano R. de Borja

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LEGACYform of socializationshared issues publiclyways to improve agriculture, industry and other fields were discussed in public

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Royal Company of the Philippines(Real Compana de Filipinas)

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March 10, 1785 King Charles III Governor General Jose Basco y Vargas

To reorient the entire commercial system of the Philippines

Charter: 25 Years Capital Stock: P 8 000 000

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The Monopoly of trade between Spain and the Philippines

The exemption from taxes of tobacco shipments

Privilege to use the flag of the Spanish Royal Navy on its vessels

Abolition of the old restrictions prohibiting the exportation of Asian goods to Spain SPAIN

Privilege to buy guns and ammunition from government factories

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1792 They began to lose money

1803Charles IV succeededGranted additional privilegesCharter: Extended by 15 years Capital Stock: P 12 000 000

September 6, 1834The Company was abolished because of bankruptcy.

 REFERENCE: Philippinealmanac.com

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Infrastructure, Telecommunications and Public Utilities Development

The Ferrocarril de Manila [120 mi. up to Dagupan]

The only railway line in the Archipelago

Constructed using mainly Filipino Labor and operated regularly before the outbreak of the Philippine Revolution in 1896.

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Compañia de los Tranvias de Filipinos

Established in Manila, 1885 by Jacobo Zobel Zangroniz and Adolfo Bayo

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Tranvia de vapor [steam-powered]

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Calesa and Carretela

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Puente Colgante- 1st Suspension bridge now Quezon Bridge

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Thank You for Listening