A Historical Perspective on Philippine Economy

Pre-Spanish Period

• Barangays– Balangay– Datu

• Land Ownership– Thru inheritance and occupationEx: Rice Terraces in Benguet

Spanish Period

Galleon Trade

Economic Society of

Friends of the Country

Royal Company of

the Philippines

Tobacco Monopoly

Ecomienda System

Agricultural Progress

Galleon Trade

• Trade between Manila and Acapulco

Economic Society of Friends of the Country• Governor Jose Basco y Vargas

founded ESFC– Focused on the economic development

of the country

Royal Company of the Philippines• Established to boost the Philippines

economy through trade and development of agriculture and industrial sector.

• Opened trade between Philippines and European-regions

Tobacco Monopoly

• Tobacco monopoly is established to obtain big revenues.

• Selected provinces are required to plant tobaccos:– Nueva Ecija– Marinduque– Cagayan Valley– Ilocos Sur– Ilocos Norte

• Encouraged smoking and smuggling.

Encomienda System

• Encomienda – piece of land given to loyal servants of the King of Spain.

• Encomiendero – Usually Spanish soldier who managed encomienda.

• Abused by Spanish officials which resulted to issuance of a royal decree by the King of Spain to stop all the abuses of the encomienderos.

• Ended in 19th century.

Agricultural Progress

• Governor Basco focused on the economic development of the country; he was often described as the most economically-minded Spanish governor general.

• Implemented different economic programs and reforms.Ex: Building roads and bridges for transportation and introducing silk thru planting of mulberry trees.

American Period

• Land Ownership– Torrens System - Torrens title is a system of land

title where a register of land holdings maintained by the state guarantees an indefeasible title to those included in the register. Land ownership is transferred through registration of title instead of using deeds. 

– Homestead Act - The Homestead Acts were several United States federal laws that gave an applicant ownership of land, typically called a "homestead", at little or no cost.

• Farmers are allowed to own at least 24 ha. of public lands for their own family.

American Period

• Free Trade– Concerned with exchange of goods and services without

trade barriers like tariffs and quotas.– Tariff – tax levied on imported goods.– Quotas – Limitation on the quantity of exported and

imported goods.

• Payne-Aldrich Act of 1909– US products were allowed to enter the Philippines without

tariffs and quotas.

• Underwood-Simmons Act of 1913– Tariffs and quotas were abolished but Philippine products

contains 20% foreign raw materials were not allowed to enter US.

American Period

• Tydings-McDuffie Law of 1934

FREE TRADE

Improvement of

Transportation

Development of

Industries

Increase in Production

Expansion of

Commerce

Too much concentration on the development of products that

yield higher income

Colonial Mentality

was developed

Other markets

were neglected

Agricultural development

• American’s introduced 6 majors crops:– Rice – Coconut– Palay– Corn– Abaca– Sugar

• Irrigation systems• Pesticides• Fertilizers• Modern techniques and Technologies in Farming

Industrial Progress

• Machineries and Technology industries like Mining, Forestry and Fishery increase in production.

• Cigar and Cigarette factories were established.

Economic Policies of the Philippine Republic Presidents

Manuel A. Roxas (1946 – 1948)

• Rehabilitation and reconstruction in all aspects:– Environmentally, Emotionally, Economically and

Culturally.

• Bell Trade Act - The Bell Trade Act' of 1946, also known as the Philippine Trade Act, was an act passed by the United States Congress specifying the economic conditions governing the independence of the Philippines from the United States.

• War Damage Act - liability in respect of damage to, or destruction of, property caused by acts lawfully done during, or in contemplation of the outbreak of, a war in which it is engaged.

Elpidio Quirino (1948 – 1953)

• Created the Agricultural Credit Cooperative Financing Administration (ACCFA)– To facilitate the financial help extended

to the farmers.

• Reported the activities of the government through radio broadcast.

Ramon Magsaysay (1954 – 1957 )

• Known as the “Man of the Masses”• Constructed Bridges, Roads and Irrigation.• Solve the problems on land through Land

Reformed Act of 1955. Gave emphasis on the welfare of the poor farmers who desired to own agricultural land.

• Established National Resettlement and Rehabilitation act (NARRA) to gave land to some farmers.

• Establish (FACOMA) Farmers Cooperative Marketing Association to organized the farmers

Carlos P. Garcia ( 1957 – 1961 )

• Objective is to free our economy from foreign intervention and control.

• Gave priority to Filipino industries in the distribution of resources which supported the Retail Nationalization Act.

• Gives recognition to the outstanding contribution of Filipino artists, scientists, musicians, historians and inventors.

Diosdado Macapagal ( 1961 – 1965 )

• Lifted the control on foreign currencies and allowed the importation of goods which resulted to devaluation.

• Signed the Agricultural Land Reform Code which abolished the Kasama System tilling the land.

• Established the Land Bank of the Philippines

Ferdinand E. Marcos ( 1965 – 1986 )

• Implemented a number of economic programs that helps the country to enjoy the period of economic growth from the mid-1970’s until the early 1980’s.

• Land reform was introduced under PD Nos. 2 and 27.

• Kilusang Kabuhayan at Kaunlaran (KKK) – aimed to promote economic development of the Barangay’s by encouraging Barangay residents to engage in their own livelihood projects.

Corazon C. Aquino (1986 -1992 )

• Started to organize and reform the Politics, the Economy, the Justice System and the Economic status of our people.

• Privatization – selling of Government Corporations to private sectors.

• Comprehensive Agrarian Reform Program (CARP) – Emphasize the economic conditions of the farmers.

• Approved the Value-Added Tax ( VAT )