Lesson 4: Economic Policies ● To Support the armed forces

● To fund Church missions

Other taxes were used for wars against the

During Spanish colonial rule in the Moros and pirates
Philippines, several economic policies
significantly affected the lives of the natives. Cedula Personal
Among these were the Tributo, Vandala,
Polo Y Servicios, establishment of the Residents 18 and above were required to
Galleon Trade, and Monopolization of the buy a tax certificate (cedula). This served as
production of goods. proof that they were registered taxpayers.

Tributo Vandala

The Tributo was a tax that Filipinos had It was an economic policy during the Spanish
to pay to the Spanish government. Every colonial period in the Philippines that forced
adult Filipino man between the ages of Filipinos to sell their products to the
18 and 50 had to pay this tax, except for
government at low prices. Under this
some people like the elderly and children.
The tax was collected by local leaders system, local farmers and producers had to
called encomenderos. sell their goods, like rice and other crops,
directly to the colonial authorities. This
The Spanish government needed the limited their ability to trade freely and earn
money from the Tributo to pay for things at fair prices. This policy was designed to
like keeping control of the colony. The ensure that the Spanish colonial government
money also came from taxes on the
could control the supply of goods and
Galleon Trade. Over time, many colonial
subjects in the Philippines became angry generate revenue, but it often led to hardship
about having to pay the Tributo and this for the local population. Many Filipinos
helped lead to a desire for independence resented the Vandala because it made it
from Spain. difficult for them to make a living and
contributed to poverty. Overall, the Vandala
The government collected tributo (tribute) system was one of the many ways the
for the administration of the country. Spanish exploited the resources of the
Payment was either in money or in kind. Philippines for their benefit.

Tributo goes to: ● Forced sale of local products like rice,

hemp, sugar to the government
● Building of Bridges
● Maintenance and construction of
Government Buildings and churches

1
Polo Y Servicios The galleon trade had significant detrimental
effects on the economy of the Philippines
● Men aged 16 to 60 were required to during the Spanish colonial period. This trade
render service for public works and route connected Manila to Acapulco,
military expeditions for 40 days. Mexico, allowing for the exchange of silver
from Latin America for luxury goods from
It was a forced labor system implemented Asia, particularly China. While the trade
during the Spanish colonial period in the brought wealth to Spain and some local
Philippines that required Filipino men aged elites, it also caused economic problems for
16 to 60 to work on public projects and the native Filipino population.
military expeditions for up to 40 days each
year. This system aimed to provide labor for The Galleon Trade primarily focused on
important infrastructure projects like importing Chinese goods, which meant that
building roads, bridges, churches, and local industries were neglected. native
government buildings, as well as for military Filipinos were often forced to work in low-
needs. The men who were called polistas had paying jobs or as laborers for the galleons,
no choice but to participate, and those who and many struggled to make a living. The
refused faced fines or imprisonment. emphasis on exporting silver and importing
luxury items led to a lack of investment in
This policy caused significant hardship for local agriculture and manufacturing, which
many families, as it took away the men who slowed economic growth.
were needed to farm and support their
households, leading to food shortages and There were also plenty of risks involved in
poverty. the participation of stakeholders in the
Galleon Trade. When galleons were lost at
The Polo y Servicio system was deeply sea or captured by pirates, the entire colony
resented by the Filipino population and faced economic depression, showing just
contributed to various rebellions against how dependent the Philippines had become
Spanish rule, as many people felt exploited on this trade.
and oppressed by the demands placed on
them. This forced labor system was The galleon trade created an economy that
abolished in 1898 when the Philippines favored foreign and colonial interests and left
gained independence from Spain. many native Filipinos in poverty, making it
difficult for the country to develop its own
Galleon Trade industries and utilize it resources

Exclusive external trade between Manila and End of the Galleon Trade
Acapulco from 1565-1815

2
Unstable political conditions and the opening history. The Metropolitan Museum of Art.
of the Suez Canal led to the end of the
http://www.metmuseum.o
Galleon Trade in 1815.
rg/toah/hd/mgtr/hd_mgtr.htm
Tobacco Monopoly

The Spanish colonial government had Pelzer, K. J. (1974). The Spanish Tobacco
exclusive control of the planting, production,
Monopoly in the Philippines, 1782-1883 and
and manufacturing of tobacco.
the Dutch Forced Cultivation System in
The Tobacco Monopoly was established on
Indonesia, 1834-1870. Archipel, 8, 147-153.
March 1, 1782, by Governor General Jose
Basco in the Philippines. This meant that the Molave, A. T., Pedrajas, T. P., & Belen, W. P.
Spanish government had complete control
(2017). Philippine History: A Quest for
over growing, producing, and manufacturing
tobacco. As a result, local farmers had to sell Freedom, Identity, and Progress. Quezon
their tobacco to the government at low
City: Phoenix Publishing House, Inc.
prices, which made it hard for them to earn
a decent living. Many Filipinos became
unhappy with the strict rules and high taxes,
leading to protests and desires to abolish the
monopoly

Supplementary materials:

Xiao Time: Kalakalang Galyon o Galleon

Trade

https://www.youtube.com/watch?v=8_ik78uj

IbE

Sources:

Hecht, J. (2003). The Manila galleon trade

(1565–1815). In Heilbrunn timeline of art