EconIskul Ep. 1: Philippine Economy Through The Years

Summary

This historical overview explores the economic evolution of the Philippines from pre-colonial times through Spanish, American, and Japanese occupations. It delves into the impact of various colonial policies on agriculture, trade, and society, highlighting the transition from feudalism to free trade and the development of a market economy. The script examines the influence of external powers on the country's economic landscape, the struggle of Filipinos under different economic systems, and how these historical experiences have shaped the nation's current economic status.

Takeaways

• 📚 The Philippines experienced various economic stages, from hunting and gathering to modern economic activities, mirroring global economic progression.
• 🛶 Pre-colonial Filipinos had an active economic life centered on agriculture, with advanced fishing and shipbuilding skills allowing trade with other Southeast Asian civilizations.
• 🏰 The Spanish introduced the encomienda system, which granted lands to soldiers and created a feudal-like structure impacting land ownership and cultivation rights.
• 🚫 Spanish policies like the monopoly system and the bandala negatively affected native farmers by controlling production and pricing, leading to poverty and land dispossession.
• 🌐 The Manila-Acapulco galleon trade established the Philippines as a major market for Asian goods and introduced new world products to the region.
• 💼 The 19th century saw economic reforms and modernization efforts in the Philippines, including the establishment of an agricultural school and incentives for higher agricultural output.
• 📉 The end of the 19th century and the beginning of the 20th century brought about economic challenges due to the decline of the galleon trade and the shift towards direct trade with Spain.
• 🌟 The Philippines was technologically advanced for its time in Southeast Asia, with the first telegraph, railway, and telephone lines in the region by the early 1900s.
• 💵 The American era introduced free trade policies, leading to economic liberalization but also resulting in economic dependency and a one-sided trade relationship favoring the U.S.
• 🛑 The Japanese occupation during World War II imposed wartime economic policies that led to shortages, rationing, and black markets, severely impacting the Filipino economy.
• 🌱 Post-colonial Philippines has built upon its rich economic history and experiences, shaping its current economic landscape and benefiting from the choices and sacrifices of its ancestors.

Q & A

What were the main economic activities during the pre-colonial period in the Philippines?

The main economic activities during the pre-colonial period in the Philippines were centered on agriculture, fishing, and minor industries such as mat and basket weaving, mining, gold and iron smelting, ceramic making, hunting of edible bird's nest, ornament making, and tanning of animal skin for clothing and tools.

How did Filipinos trade with other Southeast Asian civilizations before the arrival of Western colonizers?

Filipinos traded with other Southeast Asian civilizations by building large seaward vessels, which allowed them to fish in waters beyond the archipelago's territory and trade goods with civilizations such as the Ming Dynasty of China, Indonesia's Majapahit, and Vietnam's Annamese and Champa empires.

What was the concept of land ownership like in pre-colonial Philippines?

In pre-colonial Philippines, there was no concept of private property. Filipinos possessed land through the ability to cultivate it, known as the 'use of rock rice.' If a person could continuously cultivate a piece of land, it became their possession and could be passed on to descendants.

What was the impact of Spanish colonization on the economic way of life of Filipinos?

The arrival of the Spaniards brought drastic changes to the economic way of life of Filipinos. They introduced the encomienda system, a form of Western feudalism, which affected land ownership and agricultural practices. Additionally, the Spanish implemented policies like the monopoly system and the bandala, which negatively impacted native farmers.

What were the effects of the monopoly system and the bandala on native Filipino farmers?

The monopoly system and the bandala forced native farmers to sell their produce to the government at set prices, which often did not cover their costs. This led to insufficient produce for personal consumption, heavy taxation, and the revocation of their right to cultivate land if they could not pay rent.

How did the Manila-Acapulco galleon trade influence the Philippines' economy during the Spanish colonial period?

The Manila-Acapulco galleon trade made the Philippines a major market for Asian goods popular in Mexico and Spain. It also introduced the Philippines to New World products and allowed for the establishment of trade expeditions, which benefited the Spanish government and some merchants.

What economic reforms were introduced by Governor General Jose Basco Vargas in the Philippines?

Governor General Jose Basco Vargas introduced economic reforms such as opening an agricultural school, providing scholarships for the study of dying arts, offering free training on cotton weaving, importing heavy machinery from Europe, and providing incentives to rice farmers to encourage higher agricultural output.

How did the American colonization impact the Philippines' economy?

American colonization introduced the concept of free trade, leading to the passage of laws like the Payne-Albright Act and the Underwood-Simmons Act, which allowed for the importation of American goods to the Philippines without tariffs and quotas. This led to economic liberalization but also resulted in the U.S. benefiting largely from the dismantling of trade barriers.

What were the economic policies during the Japanese occupation of the Philippines?

The Japanese occupation was characterized by economic policies focused on wartime needs, leading to shortages of consumer goods, high inflation rates, and rationing of prime commodities. The Japanese controlled the price of commodities and imposed new taxes to fund their war efforts.

How did Filipinos adapt to the economic challenges during the Japanese occupation?

Filipinos adapted by creating a niche or black market for ration goods, planting small parcels of plants with vegetables or fruit-bearing plants for food, and engaging in various practices to circumvent the economic restrictions imposed by the Japanese.

What are some of the long-term economic benefits the Philippines has gained from its historical experiences?

The Philippines has gained economic knowledge and experience from its historical experiences, which have been beneficial during its republic years and up to the present. The country has seen advancements in technology, financial institutions, and infrastructure, which have contributed to its current economic room.