The transformation of the Philippine economy

into a raw material market for Europe

unconsciously increase their contract with the
intellectual tradition of the West. The
improvement of transportation and
communication facilities are required by
increased foreign trade also brought the
Filipinos closer, and made the realize their
common predicament.
When the Spain opened the Philippine ports in
1834 to free trade, commercialization of
Philippine agriculture and economic expansion
greatly benefited the principal in the country.
They were able to send their children to schools
and even to educational institutions in Spain,
there upon giving them exposure to libertarian
ideals.
 The educational reforms in 1863 dramatically
improved the standards of education in the
primarily level. With the implementation of the new
educational system, qualified Filipinos were able to
pursue higher education.
 Young men from prosperous Chinese mestizo and
native families were able to take up law, medicine,
and pharmacy. They were able to see the repressive
colonial policies of Spain after being enlightened
with liberal ideas, thus giving birth to a new breed
of Filipinos – the ilustrados (enlightened ones).
 The ilustrados got the chance to manifest their
political will when Carlos Maria de la Torre became
governor general in 1869. This benevolent governor
was able to show his liberal disposition in
administering the government after he invoked
reforms in the government like the revocation of press
censorship and the abolition of flogging as a form of
punishment. He even lived simply within his means.
Governor de la Torre as a result, inspired the Filipino
middle class to sustain their campaign for reforms in
the country.
 The Manila-Acapulco Galleon Trade was a
government-owned business. This was an annual trade
between Manila and Acapulco, a Spanish colony in the
New World. Trading ships came from Asian countries
such as China, Japan and other nearby countries.
Through the galleon trade, Manila’s location served as
the trade center in Asia. Most traders who engaged in
the galleon trade borrowed money from a company
called obras Pias, the earliest banking institution in the
country and paying a bolete served as a ticket entitling
a person to ship goods to Mexico.
 The voyage of a galleon trade was considered as
historic event. A galleon usually sailed in July or
August with atleast 200 days or six and one half
months to reach Acapulco. The long trip costs many
lives. The people abroad died of hunger and thirst
because of the cold and bad weather. The trade was
prosperous, causing an increase in the revenues. It
neglected, however, the development of the colony’s
local industries which affected the indios since
agriculture was their main source of income. The
benefits of the galleon trade, however, were
experienced by few people.
 Governor Jose Basco y Vargas was remembered for
his role in establishing government monopolies. His
economic program covered the three aspects:
agriculture, commerce, and trade. The main program
are the Sociedades Economicas de Amigos del Pais,
tobacco monopoly, and Real Compañia de Filipinas.
The Sociedades Economicas de Amigos del
Pais (Economic Societies of the Friends of the
Country)
 This was maugurated by Gov. Basco in Manila on
May 6, 1781. Ciriaco Gonzales Carvajal was its first
president. It encouraged research studies to
improved farming methods and granted gold medals
and certificates of memberships to those who
presented the most outstanding papers. It distributed
free information to farmers through pamphelts on
agricultural systems followed in other countries
Tobacco Monopoly
 Governor Basco established the tobacco monopoly
on March 1, 1872 to increase the revenues of the
government. Tobacco was grown in the areas of Ilocos,
Nueva Ecija, Cagayan Valley and Marinduque. Each
family was requires to produce a certain number of
plants to be sold to the government. No one is allowed
to keep a few leaves for personal use. The tobacco
leaves were brought to government factories in Manila
to be made into cigarettes and cigars and sold to the
public at government-fixed prices.
 The government also had monopolies in other
product such as wine and liquor, gunpowder,
playing cards, and buyo (anise). These monopolies
gave the government monetary gains but, at the
same time, developed the tobacco industry.
Eventually, the Philippines became the largest
tobacco-producing country in Asia.
 Unfavourable effects among the Filipinos:
 They continued to live in poverty as a result of
unfair practices and farmers were often cheated by
Spanish officials.
 The officials issued only written promises of payment
which were never paid.
 In order to recover from their losses, many farmers
produced more than what was required and sold the
excess in the bank market.
 The abuses and corruption practices made by the
officials led to the abolition of the monopoly in 1882 by
Governor Primo de Rivera.
The Real Compañia de Filipinas ( Royal Company
of the Philippines)
 It was established in 1785.
 Objective of the company
 To improve the foreign trade of the colony
 Develop the natural resources of the Philippines by
encouraging industry, manufacturing, and agriculture.
 The King of Spain granted the Royal Company special
privileges such as exclusive control of the trade
between Philippines and Spain. Philippine goods
entering the Spain were admitted tax-free. The company
also allowed to trade directly with Asian countries. Due
to mismanagement and non-cooperation of Manila
traders, the Royal Company failed in its objectives.
 As a result of the failure, it was abolished in 1834.
However, this became the reason of the opening of the
Philippines to world trade, particularly with countries in
Europe. Eventually, the agriculture industry developed,
especially in the production of sugar, indigo, and spices
(Agoncillo et al, 2010).
 Economic development during the 19th century was
further aided by the constructed of roads and
bridges and the introduction of new means of
communication. Many of roads and bridges were
constructed during the administration of Governor-
General Pascual Enrile (1830-1835).
 The first lighthouse called Farola was built at the
mouth of Pasig River in 1846.
 The first railroad in the country, the Manila-Dagupan
Railways, was constructed by a British company and
inaugurated on November 24, 1892. The first street car
pulled by horses was introduced in Manila in 1893.
Electrification of Manila followed in 1895.
 Improvement in communication was realized with the
establishment of a regular postal service in 1837, a
monthly mail service between Hong Kong and Manila
in 1854, use of the telegraph in 1873, and installation of
the telephone in Manila in 1890. A steamship line
between Manila and Spain opened in 1873.
 The presence of banks in the country is an indicator of a
country’s economic progress. The first group of
businessman which loaned money in Manila formed an
organization called the Obras Pias. This lending agency
was run by missionaries. The profits from this venture
were used for charity.
 The first Filipino bank was inaugurated in 1830 and
owned by Francisco Rodriguez. It was called Rodriguez
Bank, in honor of its founder. The first Spanish bank
was founded in 1851 by Governor Antonio Urbiztondo.
Called the El Banco Español Filipino, it exists today
under the name of Bank of the Philippine Islands
(Agoncillo et al, 2010)
 The school in the Philippines during the Spanish
colonial period were not co-educational; the girls
were serarated from the boys. There were three
levels of education namely: primary, secondary snd
collegiate run by the parish priest serving as their
teacher. The students were taught the three Rs –
reading, writing, and arithmetic. Moreover, The
higher levels of education were not offered to
natives, then called indios. Instead they remained as
farmers and fisherman.
 The school for the secondary level for boys was called
colegio, that required five years of study. The principal
colegios in Manila were Colegio de San Ignacio,
founded in 1596.; Colegio de San Jose, founded in
1601; and Escuela Pia presently known as Ateneo de
Manila, founded in 1859 by the Jesuits. On the other
hand, there were two colegios founded by Dominican
friars , namely Colegio de Santo Tomas, founded in
1611 and the Colegio de San Juan de Letran, founded
in 1620.
 The school for secondary education odf girls was
called beaterio. These were the Santa Potenceiana,
founded in 1589 and later on merged with another
school, forming what is now Santa Isabel College;
Santa Catalina, founded in 1596; and Santa Rosa
founded in 1750; Santa Rita founded in 1740. Usually
the bearerio was opened for the children of
Spaniards, Spanish mestizos and Chinese mestizo.
The principal subjects were taught reading, writing,
arithmetic, sewing, and singing in a choir.
 EDUCATIONAL TRANSFORMATION
 -the schools during Spanish colonial period  Santa Rita(1740)
was co-educational
 -3 levels of education was primary,
secondary and collegiate
 -run by parish priest as their teacher
 COLEGIO-Schools for secondary education
for boys. Requires 5 years of study
 Colegio De San Ignacio(1596)
 Colegio De San Jose(1601)
 Escuela Pia(1859)
 Colegio De Santo Tomas(1611)
 Colegio De San Juan De Letran(1620)
 BEATERIO-Schools for secondary level for
girls
 Santa Potenciana(1859)
 Santa Catalina(1596)
 Santa Rosa(1750)
 UNIVERSITY-Highest level of education
 San Ignacio(1623-1768)- -closed down due
to expulsion of Jesuits
 San Felipe (1717)- closed due to small
number of students
 Unibersidad De Santo Tomas
 For almost 300 years of Spanish settlement,
there was no systematic government
supervision of school
 Criticisms against the system were
overemphasis on the religious methods,
obsolete teaching method, poor classroom
facilities and the absence of teaching
materials.
 Knowledge was measured in terms of the
ability of the students to memorize without
understanding.