Economy of the Philippines

Philippines is a very rich country. There are different crops that we have in our Country. We are also have different kind of marine life and Beaches in our Country.The arrival of the Spanish changes our economy and the way people made a living. These are economic changes by Spain.
 - Encomienda System
 - Obras Pias
 - Galleon Trade
 - Polo Y Servicio
 - Tobacco Monopoly

Encomienda Sytem

 It is a labor system that was employed by the Spanish crown during the Spanish colonization. The native inhabitants in a given geographic region were entrusted to an encomendero or trustee as a reward for his service to the Spanish Crown. The encomendero had specific responsibilities such as, to protect and to educate the natives in reading, writing and Catholic doctrines. The encomendero should also give gold, products like chicken, corn and wheat in return of the land ownership.

Galleon Trade

Galleon was a ship trade from Manila, Philippine to Acapulco, Mexico. It was a very profitable for the Spanish merchants but the government find it as a source of corruption. The galleon trade was a government-owned business. Royal official supervised this operation. The person who has a "boleta" is allowed to engage in the galleon trade. A "boleta" was a ticket that entitles a person to ship goods to Mexico.
        Traders who do not have enough money to buy a "boleta" will borrow money from Spanish friars. The money that the traders borrowed from the friars came from the donation to the church known as " Obras Pias".

Effects of the Galleon Trade

The galleon trade had good and bad effect to the economy of our country. Its good effects were: (a) it increases the government’s revenue; (b) it conserves natural resources for the future; and (c) it developed good relationship between countries. While it bad effects were: (a) it only shares benefits to few people; (b) neglect the development of rural areas.

Obras Pias

It was a charitable foundation during the Spanish period. Several religious orders and rich businessmen where the interest was used for charitable works. Donors had specified that the funds are to be used for charitable, religious and educational purposes. This was a donation given to the church which should be used in religious purposes only. The Obras Pias stimulates trade in the country during 18th century. The first Spanish bank was founded in 1851 by Governor Antonio Urbiztondo. It still exists today under the name of the "Bank of the Philippine Islands".

Polo Y Servicio

It is a sysytem of force labor. It is a 40 days of men ranging from 16 to 60 years of age who were obligated to give personal services to community projects. If someone wants to be exempted in laboring he should pay the "Falla" (corruption of the Spanish Falta, meaning "absence").

Tobacco Monopoly

        This is an economic program in which tobacco production in the Philippines was under total control of the government. tobacco planting became compulsory to the point that some crops were abandoned. Only tobacco is allowed to be raised in selected land areas. It was in demand in Europe because they have a very cold wheater. Governor Basco established the tobacco monopoly on March 1, 1782 to increase the revenue of the Government. Each family was required to produce a certain number of plants to be sold to the Government.
        The tobacco monopoly is a success in increasing  the finance of  the government. It also developed the tobacco industry. Our country became the largest tobacco- producing in Asia. It also provided jobs to many Filipino.
        However, the tobacco monopoly has bad effects to the farmers. They continued to live in poverty because of unfair practicee. Officials always issued written promises of Payment but it was never redeemed by the farmes.