PH’s Economic Development History

by Bill Patrick Familara (2013)

Long before the arrival of the Spaniards in the Philippine archipelago, the natives have already a socio-political and economic system. Tribes are trading to each other and the foreign relations have been established as free trade is already being done with the neighboring kingdoms and empires like China, Indochina and people from Malay Archipelago. This is in the form of a barter system. In Barter system, people do not use notes and/ or currency to exchange goods and services. What they do is exchanging a good that has the same value to other. For example, I will trade my carabao to you in exchange of 15 sacks of rice. This kind of economic system have been used until the late 1600 when the Kingdom of Spain finally took control on the Philippine Archipelago but limited to the Kingdom of Sulu that was reigned until 1962.
When the Kingdom of Spain successfully took over the archipelago, they established an economic system that brought progress and growth to the colony’s economy. The Manila- Acapulco Galleon Trade opened new opportunities to the Indios to acquire new knowledge and skills. This Galleon trade last until 1815 when the Mexican War of Independence put a permanent stop to the galleon trade route. This marked the first time trade truly became global, wherein Asian goods /BILL PATRICK FAMILARA (c)/ were sold to Latin America. It's the first instance in human history when all trade-routes across the planet interlinked, arguably making Manila the world's first Global City and the Manila Galleon route the prototype for global trade.

During the time of the galleon trade, Manila was exclusively trading its goods to Acapulco and limited to the rest of the world. When the Kingdom of Spain was defeated by the British Kingdom, Manila opens its trade to the world market. Thus, the exchange of goods and services expands to the rest of the world. That we could see Manila as the only progressive city in Las Islas Filipinas for the reason that the existence of Hacienda system is being observed and the monopoly of a certain product like Tobacco, Corn and Sugar cane are the only products being produced in the large part of the Filipina Archipelago. This kind of system hinders to the economic development of the provinces.

After the Treaty of Paris, The Republica de Filipinas fall under the control of the United States and successfully established new and modern economic system, adapting what is being used in European and American countries. United States flooded the Filipino Market by their products. They redressed the Philippines from a medieval like society into Americanized one. They introduced more diverse and free trade but limited to the United States market.

After World War 2, The Philippines finally got its independence to the United States. But this time, the capital city was fully devastated by the war. The economy of the newly recognized country had collapsed. And the role of the government is to re-established to fundamental pillars of the economy.
In Marcos time, The Philippines was considered as one of the most progressive country in terms of economy next to Japan. The Bagong Lipunan trend was introduced and said “Ang Pilipinas ay Muling Dadakila”. He established strong foreign economic relations to the far eastern or West Asian countries. Thus, strong foreign direct investments were put in the country’s economy. Series of building new infrastructures like bridges, roads, convention centers, trains helped allot especially on the issue of unemployment when thousands of Filipinos were employed that time.

After what they so-called successful peaceful revolution, Cory Aquino was proclaimed as the new president of the republic. On her time, the economy of the country was freeze. Series of insurgences occurred that resulted to the collapsed of the basic economic foundations of the country. That time, the whole archipelago undergone on a dark age like period.

Nowadays, after the former president Gloria Macapagal Aroyo successfully rebuild and re-established the fundamentals of the Philippine economy. The current presedent is in easy term on facilitating and keeping this track into a good way.

(sorry for grammatical errors)

The Philippine Story

30,000 years ago the first people arrived in the Philippines by land bridges. These are the Negritos, years passed races such as Arabic and Chinese followed. Small kingdoms has formed starting the 900 AD. Some of those are the kingdom of Zabag, Tawalisi Kingdom and the Kingdom of Tondo.

The next 1000 years began the leadership of the Rajah that lasted from 1000 to 1521. Some of the Rajanate Kingdom recorded on history is the Rajanate of Seludong. Upon the arrival of the Spanish conquistadores became Manila and Namayan Rajanate and its capital is Maysapan now in Santa Ana, and the Rajanato of Butuan .

In the Visayas region was the leadership of Datus that is known to have first had code of the Act more popular The Kodego of Kalantiao or Code of Kalantiao.

While in Mindanao, the Islam religion scattered easily and the establishments of the Sultanate Kingdoms. These are the Sultanate of Sulu which is capital is Jolo that reigned from 1400's until 1917, and the Sultanate of Maguindanao, its capital is the Marawi that reined from 1500's to 1800's.

But in 1521 when the Spanish arrived in the Philippines led by Ferdinand Magellan the first Holy Mass was celebrated on March 31.1521 on the island of Mazaua. The expedition of Spain was not ended after the fall of Magellan. Four more expedition was set sail to the Philippines, these are LOAISA (1525), Cabot (1526), ​​Saavedra (1527), Villalobos (1542), and Legaspi (1564). In 1543, Ruy Lopez de Villalobos conquered the Islands and named it Las Islas Felipinas under the name of King Philip II of Spain. They established the first school and University, Place of worship, Bridge, and buildings. People who is native in the colony is called Indio, or in English, Idiot.

In 1565, Indias Orientales Españolas was established and became the capital is Cebu from 1565 to 1571 and moved to Manila in 1571 until 1898.

In 1762 to 1764 after the weakening of the kingdom of Spain, large area of the colony was taken by the British Empire. That was in the Seven Years War, ended the war because of the Treaty of Paris and after a year, Britain surrendered Manila and other part of the Colony to Spain.

Revolution started in 1896 with the formation of La Liga Filipina and the Kataas-taasang, Kagalang-galangang Katipunan ng̃ mg̃á Anak ng̃ Bayan also known as KKK that was led by Andrés Bonifacio, Ladislao Diwa, Teodoro Plata, Darilyo Valino, Rayalpapa Guia and Dano Belica, all of them are members of La Liga that was established by Jose Rizal.

When the revolution succeeded, the first Philippine Republic was established in 1899 and by 1901 Americans came to take over the Philippines because Spain sold the Philippines to America at a cost of 20 million Dollars by the Treaty of Paris. Year 1899 also at the outbreak of the war of Filipinos and Americans ended in 1902.

1934 has also established the Commonwealth of the Philippines (Mancomunidad de las Filipinas) and also dissolved in 1946 after World War II.

In December 8, 1941 ten hours after the attack on Pearl Harbor in Hawaii, Japanese invaded the Philippines and became the State Puppet of Japan. And in September 2, 1945, Philippines were again under the United States.

The Third Republic was established in 1946 that lasted until 1965 also. When Marcos was elected in the position as president the economy was deteriorated and series of protest and violence spreads all over the country. As an answer to his problem, he declared Martial Law, and the beginning of the 4th Republic of the Philippines to take turn until 1986.

After the fall of the regime of Marcos, Corazon Aquino was elected as the new president of the Philippines after the first EDSA Revolution. In her time was the start of the 5^th Republic.