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Economic Changes
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  • 1. Encomienda from the word encomendarwhich means to entrust or to assignresponsibility to a person.A certain area of land withits inhabitants wasassigned to a particularSpaniard who was giventhe responsibility to collecttribute and to utilize thepeople in government andchurch projects

2. Royalencomienda Belonged tothe kingEcclesiasticalencomienda Belonged tohe ChurchPrivateencomienda(ended in 17thcentury) Belonged to aprivateindividual 3. Became source of abuse and corruptionThe native who were unable to pay tributewere force to flee mountainsIf theres plenty of gold and money (reales)was scarce, the encomendero collectmoney and vice versa.If the harvest was bountiful, theencomendero collected the products 4. Filipinos were obliged to paytribute in full or installment basisto the Spanish government.Those who pay were personsabove 16 years and those belowsixty. 5. Kinds of taxesDirect Taxes tribute or taxincomeIndirect Taxes includes bandalaand the customtaxOther fees feesfrom not-so-commonproductslike wine,tobacco, betelnut, firecrackers,and opium 6. 1570 onwards Tax was 8 reales Anyone can paygold, blanket,textile materials,palay, etc.Later in 1789 8 rose to 15reales 7. Special tax (1635 19th century) realor rice called samboangan or donativo deZamboanga was imposed to suppress theMoro attacksVinta (1781-1851) to adequately preparethe vintas in defense of coastal areas fromMoro piratesTribute was replaced in 1884 by cedulapersonal 8. Purpose was to create projects for self-enrichmentwhich began in 1580Native Indios and mestizos from 16-60 years oldwere to work for 40 days a year and was reducedto 15 days a year in 1884.They worked in construction of buildings, mines,forests, ships as rowers.Exemption was through the payment of a falla (1 real every day for 40 days) 9. Conditionsset forforcedlaborFilipinos be drafted for work must be paidThey should not work in distant places where they couldreturn to their familiesDrafting of laborers should not coincide with planting andharvest seasonPhysically incapable should not be overworkedIt should only be resorted in cases of absolute necessityTheir number should be diminished as soon as laborersfrom other countries had volunteered to work 10. Led to decline of communities and agriculturalproduction suffered which resulted in starvationand death and separation of familiesIt was a source of corruptionNatives were also arbitrarily conscripted to servethe military 11. Traditional leaders were assigned toimplement tribute, polo, and bandalaIt brought a wide cleavage between thetraditional leaders and the people,politically and economically. 12. Galleon de Manila orNao de China was theonly vessel that linkedthe Philippines andthe Americas.It establishedmonopolyNatives suffered frommanning the galleonsas sailors and rowers 13. Only the privileged persons, such as high-rankingofficials of the State, the Church,and the crew of the galleons, were allowedto engage in tradeThe prosperity of the Spaniards in Maniladepended solely on the success of thevoyage to and from Mexico. 14. The poorconditions ofthe countrybecame aburden toSpain.To preventbankruptcy, theMexicangovernmentsent an annualsubsidyamounted toPhp250,000.00on average.But the moneyreceived wentonly to thepockets ofSpanishofficials,employees, andpriests in theform ofsalaries.It was stoppedin 1821 whenMexico becameindependent 15. EconomicSociety ofFriend oftheCountryFounded in 1781, it sought to an economic policy in thecolonyThe Kings decree gave Basco the right to establish asociety of selected persons who are capable enough toproduce useful ideasDivided into: factories and manufacturers; industry andpopular education; natural history; domestic and foreigncommerce; and, agricultural and rural economyRoyalCompanyof thePhilippinesEstablished in 1785, it aimed at promotingprogress of the Philippines and develop its naturalresourcesStarted to have a capital of 8 million pesos andgave many privileges to the country buteventually failed 16. Governor-General JoseBasco (1778-1789)started the monopoly ona number of products: Tobacco (1782) and wine,(1786) which adverselyaffected the Ilocanos 17. The cultivation and marketing of tobaccoswas put under the supervision and controlof the SpaniardsPayment for tobacco and other productswas usually in the form of promissory noteand should be exchanged at highdiscounts 18. Natives were victims of dishonesty andcheating of agents of the governmentMonopoly of bandala, which involved theforced sellinng of requisitioned productsmost especially palay, tobacco, andcoconut oil 19. The initial resistance and subsequentsubjugation of lowland communitiesThe opposition of the MorosThe successful avoidance of ethniccommunities 20. Lack of understanding of the natives madeit difficult for them to wage an effectiveresistance against the Spanish invadersEffectively controlled areas becamecenters of population.Outlying territories were free up to themiddle of 18th century 21. Arrival of Magellan (1521)Sultanatesystems inMindanaoplanned toextend inthe northDuring Legazpis timeStrongestoppositioncame inManilaruled byRajahSolimanThe raidsDeclaredjihadagainstforeigninvadersandconductedraids inVisayasSuccessful attemptsIn manycases, theSpaniardsweresuccessfulbut on ashot-termbases. 22. Some groups fled to upland areas andincreased though time who became knownlater as the cultural minorityThey were able to preserve their culture