TLDR;
This video discusses the economic context of the 19th-century Philippines, focusing on the transition from the Galleon Trade to an export-oriented agricultural economy and the impact of Spanish taxation policies. It examines the contributions of Dr. Benito Legarda's study on the colonial economy and Carl Flen's research on taxation. The lecture covers the end of the Galleon Trade, the rise of agricultural exports, the opening of ports, and the social and regional impacts of these economic shifts, including wealth concentration and inequalities.
- The end of the Galleon Trade and the rise of agricultural exports.
- The opening of ports and the influx of foreign merchants.
- Taxation policies and their impact on the Philippine economy.
- Social and regional inequalities resulting from economic changes.
Introduction [0:02]
The lecture introduces the economic, political, and social context of the 19th-century Philippines to provide a foundation for understanding Rizal's novels and personal life. It references Dr. Benito Legarda's study, "The 19th Century Philippines: A Colonial Economy," which examines the economic aspect of the Philippines and its contribution to the country's colonial status. The study questions Spain's economic dominance during its colonization of the Philippines.
The End of the Galleon Trade [2:11]
The Galleon Trade began in 1565, marking the start of Spain's colonization of the Philippines. The Spanish closed ports previously open to China, Japan, and India, focusing trade exclusively with Spain and Mexico. The Philippines exported agricultural products and raw materials such as mangoes, tamarind, rice, carabao, Chinese teas, indigo, and abaca. They also exported cultural items like fireworks shows and local beverages like tuba or lambanog. In return, Mexico sent potatoes, guava, avocado, papaya, pineapple, cattle, and horses. Although the Galleon Trade ended in 1815, the Philippines had to open new horizons for its economic activities, focusing on large-scale agricultural exports.
Rise of Agricultural Exports [7:33]
After the Galleon Trade, the Philippines focused on exporting agricultural products. Key exports included abaca (used for strong ropes), sugar cane (processed into sugar), tobacco (for cigarettes), coffee, and coconut/copra (for soap and cooking oil). Abaca came from the Bicol region, Samar, and Leyte, and was exported to Great Britain, the United States, and France. Sugar came from Negros, Iloilo, Batangas, and Pampanga, and was exported to Great Britain, the United States, and Spain. Tobacco came from Isabela, Cagayan Province, and the Ilocos River region, with Spain enforcing tobacco planting. Coffee was mainly produced in Batangas and Cavite, and coconut/copra came from coastal Luzon, Visayas, and northern Mindanao.
Opening of Ports and Foreign Influence [12:33]
The opening of ports in 1834 stimulated the export of agricultural products and foreign merchant activity. The British, Americans, Germans, and Australians dominated shipping, financing, and export-import operations. The British and Americans dominated agricultural product exports and imported/exported muskets. The Germans imported pharmaceutical products, while the Australians imported live products like cattle. Spanish merchants acted as mediators between foreigners and farmers. Americans and Britons established textile, cotton, and cigarette companies in Tondo, Manila, due to its proximity to the ports.
Spanish Economic Policies [15:20]
To strengthen the Philippine economy, the Spanish government implemented policies such as the Tobacco Monopoly in 1782, proposed by Governor-General Jose Basco. This policy converted rice fields into tobacco fields, which led to negative reactions from farmers in Nueva Ecija due to lack of knowledge, high taxes, and being overworked and underpaid. The bandala system involved Spanish officials buying agricultural products from Filipinos at low prices and selling them to foreigners at high prices. Tariff reforms lowered tariffs for foreigners, promoting trade, while local entrepreneurship grew, especially among Chinese mestizos.
Social and Regional Impact [19:34]
The concentration of wealth in port cities led to regional inequalities, with Manila and Cebu experiencing vibrant economic activity while mountainous or remote areas stagnated. The expansion of labor systems, such as tenancy, did not alleviate rural poverty as farmers' profits were minimal. The opening of the Suez Canal in 1869 shortened travel times to Europe, facilitating global trade. Despite Spain's colonization, Great Britain, the United States, and China became the Philippines' main trading partners. The UK dominated in textiles, the US in abaca and sugar, and China in textiles and ceramics. The Philippines became tied to the British-dominated global trade network.
Taxation in the Philippines [28:20]
Carl Flen's study examines taxation in the Philippines under Spanish colonization, noting that while the taxation schemes were logically organized, the administration was problematic due to corruption. Taxes levied included direct taxes (tribute), indirect taxes (customs), state monopolies (gambling, cigarettes, tobacco, opium), documents/lotteries, and public domains. Filipinos paid a 5% tax, but farmers were often exempt due to the prevalence of fryer lands owned by the church and wealthy Spaniards. Taxes often went to officials and friars rather than benefiting the people.
Taxation Issues and Monopolies [34:28]
Additional fees were charged for services like notarizing documents or playing the lottery. In 1847, a monopoly on opium was established, with the Spanish traders constructing opium dens instead of banning its use. Cockfighting was regulated and taxed by the government. Taxes were also imposed on forestry products and land sales. Despite the logical organization of taxation, corruption, favoritism, and local abuses were prevalent. Tax collectors, often barangay chiefs, shared in the taxes, and there was an agricultural bias due to fryer lands and reliance on agricultural exports. Wealth was concentrated in areas with ports, leading to regional inequalities.