Under Spanish rule, the Philippines experienced slow economic development due to Spain's focus on Catholicism and expanding its empire elsewhere. While the Spanish introduced land ownership, abolished slavery, and established new industries, crops, and trade networks, much of the wealth generated benefited Spain and corrupt officials. The Spanish also imposed taxation and labor systems like encomiendas, tributes, and polo that oppressed Filipinos. However, in the 19th century Spain opened the country to foreign trade and investment and introduced improvements in transportation, communication, and banking that began developing the economy but also led to unrest and revolution among Filipinos.

1. Economic life under Spain Presentation Transcript
 Economic life under Spain By: Michelle Ann Ramel and James Prae Liclican
 Slow development under Spain •
 The slow progress was due to the lack of Spain in practical matters. Economic life Under
Spain • Their interest was in Catholicism and their dream of having an empire in Asia. •
Spaniards did not really know how to make money grow. • 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
 Encomienda system Tribute
 Polo or forced labor Abolition of slavery
 Galleon Trade and annual subsidy from Mexico •
 Introduction of new plants and animals •
 Introduction of new industries
 Economic society and royal company Specific survey Opening of the Philippines to
world trade and foreign investments • Rise of banks • Improvement on transport and
communication • Prizes and international exhibitions • • • •
 New way of land Ownership Spaniards introduced the idea that the person and his family
could own a land.
 Tribute • The residence tax during the Spanish times • One Peso per year • Single person
should pay one-half peso. • In cash or in good. • 1884-tribute was replaced by cedulla tax
• 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 “residence
certificate”.
 • Money from the tribute upon a certain conquered territory. Encomienda • 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 century. Encomiendas
 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.
 Galleon Trade and Subsidy from Mexico
 Galleon Trade and Subsidy from Mexico • Named after the sailing ship which sailed once
a year from Manila to Acapulco Mexico. • Profitable business for Spanish Merchants and
corrupt government who ran it. • 1815- It ended when Mexico revolted against Spaniards.

2.  Cannot afford to pay for its expenses Spanish colonial Government (salaries and public
works) and always-needed money to keep on running, so the king sent financial aid to
manila very often.
 Royal subsidy • 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.
 • Introduction of New industries 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 Europe. • Brought special
birds from china to fight the locusts that destroyed crops. • Gave special prizes to planters
and investors. • 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 industries. • 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 on 1834 Two interesting economic organization
 • 1789- First scientific survey of the Philippines was done by the Spaniards under the
command of the captain Alijandro Malaspena. • 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. Scientific survey
 Opening doors to the world trade and foreign investment • 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 countries abroad. • 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 Philippines. • 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 England Bank of the

3. 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
 Improvements of Transportation and Communications. (19th Century) • 1891- British
build the first railroad • Manila to Dagupan • Feb. 1, 1859 First postage stamp • 1854-
First monthly mail • From Manila to Hong kong • 1783- First telegraph • 1890- First
telephone
 Social classes Prizes and Exhibitions • Upper class • Middle class • Lower class • During
the Spanish times the Philippines joined many international exhibitions or fairs abroad •
Philippine finest products • Hemp • Cigars • Embroideries • 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. Historical Values
 Thanks for Listening!!! Faith Shines!!! Have A nice Day, Brothers and Sisters!!!