Economic Policies
The Spaniards implemented economic policies that were meant to utilize the human as well as natural
resources of the country. Instead of developing the local economy, these policies only exploited the Filipinos
and gave opportunities for the Spaniards to make money from the colony.
Encomienda System
* A reward to loyal Spaniards who helped in the conquest and the
establishment of settlements in the Philippines.
* The man who received this favor was called encomendero.
* He was given the right to collect tributes or taxes from the inhabitants
of the area assigned to him.
* The inhabitants of the encomienda suffered from this system since the
encomendero could freely decide what taxes should be collected for a
particular year.
Tributes
* Payment and tributes of taxes symbolized one’s
recognition of the authority of the king of Spain.
* Tribute payment was replaced by another form
of tax which was the cedula personal.
* All men from 19-60 years old had to carry cedilla
otherwise they will be punished.
Polo y Servicio
Abuses in encomiendas
Bandala System
* Bandala was the compulsory sale of products to the
government.
* The colonial government assigned annual quota to
provinces for certain products.
* Sometimes the Spanish colonial government would
only pay minimal amount for the products.
* The colonial government would then sell the same
products to the people at much higher prices.
* A form of forced labor.
* All men from 16-60 years old had to render service for 40 days in one year.
* This was eventually reduced to 15 days in one year.
* Those who did not want to render polo had to pay a tax. Howerver, only a few
could afford to pay the tax.
Galleon Trade
* Lasted from 1565 to 1815.
Polistas rendering service
* Also known as Manila-Acapulco trade
* The role of the Filipinos was in the construction of galleons.
* Products coming from China were brought to Manila then shipped to
Acapulco, Mexico.
Spanish Galleon
* Galleons from Manila carried Asian goods, mostly Chinese products such
as silk, jade, ornaments, porcelain, jars, bowls, plates, needles, colored glasses,
and gongs.