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Economic life under spain
Economic life under Spain
By: Michelle Ann Ramel and James Prae
Slow development under Spain
• The slow progress was due to the lack of Spain in
• Their interest was in Catholicism and their dream of
having an empire in Asia.
• Spaniards did not really know how to make money
• While we were a colony of Spain, the Filipinos did
not really share in the wealth of the nation.
Economic Changes made by Spain.
New way of land ownership
Polo or forced labor
Abolition of slavery
Galleon Trade and annual
subsidy from Mexico
• Introduction of new plants and
Introduction of new industries
Economic society and royal company
Opening of the Philippines to world
trade and foreign investments
• Rise of banks
• Improvement on transport and
• Prizes and international exhibitions
New way of
Spaniards introduced the idea
that the person and his family
could own a land.
• The residence tax during the
• One Peso per year
• Single person should pay
• In cash or in good.
• 1884-tribute was replaced by
• People in the Philippines were
very unhappy with these taxes
because the Spanish officials
cheated and oppressed them
• Today, Filipinos of 18 years
and above still pay the cedulla
in their local town or city. In
exchange, they are given a
• Money from the tribute upon a
certain conquered territory.
• Given by the king to a Spanish
conquiscator (colonizer) as a
reward for his services.
• Owner of the encomienda.
• Encomiendas can keep the tribute for himself
instead of giving it to the government.
• 1951-267 encomiendas in the Philippines.
• Due to abuses, it was abolished in 16th
Polo or forced labor
• 16-60 years old male Filipinos were forced to work for the government for
a few weeks a year 40 days
• 1884- Reduced to 15 days
• Polistas- forced labourers
• Polistas worked for various public works.
• Polistas could get out of work by paying a sum of money or hiring
somebody else to do his polo
• Filipinos did not like polo
Abolition of Slavery
• 16th century- Spanish
missionaries protested to the
King about keeping of slaves
in the Philippines.
• 1589- royal decree was made
• Abolish slavery in our country
• Philippines were ahead of
other countries in giving
freedom to slaves.
• United States did not ban
slavery ban slavery until 1833.
and Subsidy from
Named after the sailing ship
which sailed once a year
from Manila to Acapulco
Profitable business for
Spanish Merchants and
corrupt government who ran
1815- It ended when Mexico
revolted against Spaniards.
Cannot afford to pay for its expenses
(salaries and public works) and
always-needed money to keep on
running, so the king sent financial aid
to manila very often.
• Financial aid
• From the Mexican viceroy because Spain ruled us
through Mexico until the early 19th century.
• ₱250.00- the average amount of subsidy
• It ended on 1810 after the Mexican evolution.
Introduction of new plants and animals
• Among these new plants were corn, cacao, beans,
achuete, maguey, peanuts, Chico, and papayas
• New animals included sheep, cattle, goats, horses,
pigeons, swans, carabaos, ducks, geese, and better
breeds of chickens and roosters.
Better methods of farming: cattle ranching,
making candle and soap.
The construction of stone houses, building of
roads, bridges, and dams.
The weaving of mats and hats.
They grow large amount of sugar, hemp,
coconut, and tobacco.
Become the pillars of the Philippines.
Economic Society and Royal Company
Economic society of friends of the Philippines
Royal company of the Philippines
• Existed only during Spanish era.
• 1781 founded by Governor General Basco.
• Governor General Basco helped develop
Philippine agri-cultural the most.
• Sent the first shipment of indigo (dye) to
• Brought special birds from china to fight
the locusts that destroyed crops.
• Gave special prizes to planters and
• Imported seeds and machinery from
United States to help farmers.
• 1809 economic society stopped operating
• 1785, king Charles III
• Took advantage of the trade and shipping
• Owned by king, foreign banks, private
citizens in Spain, Mexico, Cuba, the
Philippines and other Spanish colonies
• It is badly manage so it was closed down
Two interesting economic organization
• 1789- First scientific survey of the Philippines was done by the
Spaniards under the command of the captain Alijandro
• Two ships sailed around the archipelago and explored the coasts
• Antonio Pineda a botanist went with the expedition they studied
the Philippine plants.
• From this expedition came this first modern shipping chart of
the map of the Philippines.
Opening doors to the world trade and foreign
• In 1834, Spain officially opened the Philippines to the world trade.
• It means that the goods from the Philippines could be shipped out to any of the
• And goods from other country could enter the Philippines directly.
• Before Spanish banned the other foreigners from living in the provinces or having
businesses in the Philippines.
• They did not apply to Chinese settlers, but it covered other white men.
“A dollar earned by the foreigner was taken from the pocket a of a Spaniard”
• 19th century foreign businessman were allowed to do business in manila and
other places in the country.
• American and European traders came and opened new business in the
• In 1859,15 foreign companies in manila.
• Seven British, two French, two Swiss one German.
• Nicolas Coney Plymorth England.
• First foreign merchant to live in Visayas.
• 1855 he arrived in Iloilo.
• He became a rich businessman.
• He developed Philippine sugar industry.
First bank was introduced to the Philippines by the Spaniards
Obras Pias (good works) System
Interest was use for charitable works
Francisco Rodriguez (1830)
He founded the first Filipino Quarke (protestant) who lived in the
Bank of the Philippine Islands (BPI).
Oldest existing bank in the Philippines.
It started in 1851 as Banko Español
1862- Monte de Piedad Saving Bank
Rise of banks
• 1891- British build the first
• Manila to Dagupan
• Feb. 1, 1859 First postage
• 1854- First monthly mail
• From Manila to Hong kong
• 1783- First telegraph
• 1890- First telephone
Prizes and Exhibitions
• Upper class
• Middle class
• Lower class
• During the Spanish times the
Philippines joined many
international exhibitions or fairs
• Philippine finest products
• And Art works
• There was no great development during the reign of Spain
• Spaniards mostly benefited from the wealth of the country, while rich
Filipinos copied their arrogant snobbish and aristocratic ways.
• There was development in the land ownership, abolition of history, new
plants and animals, new industries, new trade and companies, new
banks, better roads and bridges, modern electricity, railways and ships,
the new middle class, and prizes and exhibitions.
• However, oppression caused the Filipinos unhappy and led into revolt
and revolution later on.
Have A nice Day, Brothers and Sisters!!!