Economic-Changes-for-HIS21

Definition: An encomienda was a favor granted by the King of Spain to a colonizer, which allowed them to collect tributes or taxes from the inhabitants of a designated area.
Roles of the Encomendero:
- Maintain peace and order
- Assist missionaries in spreading Christianity
- Look after the welfare of the local population

Determining Factors: A. Size based on the population and land value B. Limited to 300 natives and a land value of 2,000 Php C. Effective for only two generations
Types of Encomienda:
1. Royal Encomienda
2. Ecclesiastical Encomienda
3. Private Encomienda
Abolition: The encomienda system was abolished at the end of the 17th century.

Objective: The Spanish colonial system aimed to prevent the exploitation of natives through The Laws of Indies.
Conditions for Forced Labor: A. Filipinos were to be paid for their work B. Laborers could be sent far away from families C. Labor not to conflict with planting/harvesting seasons D. Physically incapable men should not be overworked E. Forced labor should only be for absolute necessity F. Labor drafts reduced when enough volunteers from other countries emerged

While theoretically protecting Filipinos, in practice: A. Laborers were often not paid B. Families were separated C. Laborers had to provide their own food D. Overwork led to high mortality rates E. Exemption fees (falla) were prohibitively high
Term: Laborers were referred to as "polista."

Purpose: To finance the colony's administration including the construction of key infrastructure.
Affected Demographics: Tribute was required from men aged 16 to 60, beginning in 1570.
Changes Over Time:
- Increased in 1589, with part going to the Church (sanctorum).
- Abolished in 1884, replaced by cedula personal (residence certificate).

Overview: In addition to tribute, various taxes were imposed:
1. Diezmos prediales: 1/10th of agricultural produce.
2. Donativo de Zamboanga: Tax for Jolo conquest introduced in 1635.
3. Vinta: Tax for coastal defense against Muslim pirates in Luzon and the Visayas.

Exploration Points:
1. Definition of boleta.
2. Products involved in the trade.
3. Restrictions on galleon trade between Manila and Acapulco.
4. Trade routes utilized.
5. Complaints from participants.
6. Personalities permitted to join.
7. Reasons for the decline of the galleon trade.

Definition: Charitable works funded by donations used for community welfare, including caring for the elderly and managing government hospitals.
Financial Aspects: Funds were also loaned to merchants involved in the galleon trade. Interest rates varied by country.
Downfall: Eventually went bankrupt due to misuse of funds.

Context: The Philippines became economically burdensome to Spain leading to the Mexican government sending an annual subsidy (SITUADO) averaging 250,000 Php.
Mismanagement: Much of this subsidy disappeared into the pockets of Spanish officials rather than benefiting Filipinos.
End of Subsidy: Ceased after Mexican independence in 1821.

Founding: Established by Governor Basco in 1781 to implement economic policies in the colony per royal decree.
Funding: Received annual funding of 960 Php from prominent traders in Manila.
Focus Areas:
- Factories and manufactories
- Industry and education
- Natural history
- Domestic/foreign commerce
- Agriculture and rural economy

Notable Outcome: Exportation of indigo to Europe began in 1784.
Additional Contributions:
- Founded an Academy of Drawings in 1824.
- Offered scholarships for dyeing arts.
- Established an agricultural school in 1861 for training farmers.

With guidance from the society:
- Economic discussions among officials, traders, and merchants.
- Distribution of pamphlets on various crops.
- Importation of agricultural tools from the US.
- Introduction of advanced farming methods.

Recommendation: Governor Jose Basco Y Vargas proposed a tobacco monopoly to increase revenue.

Provisions:
1. Cultivation restricted to selected provinces.
2. Contraband sales banned.
3. Government monopolized purchase, inspection, and manufacturing of tobacco products.
4. Restrictions on non-governmental tobacco exports/imports.

Positive Impact:
- Significant increase in government revenue; net profit of 500,000 Php in 1808.
- Record profit of 3,500,000 Php in the planting year 1880-1881.
- Development of agriculture in tobacco-growing provinces.

Issues Faced:
- Abuses by officials regulated the industry.
- Farmers often seized land due to quotas set.
- Poor compensation for crops.
- Farmers were unable to afford government-produced cigars.
Termination: The monopoly was ultimately abolished in 1881.

Formation: Established in 1785 with a capital of 8,000,000 Php, aiming to enhance foreign trade and natural resource development.
Investment Guidelines: 4% of profits directed toward agricultural pursuits.

Causes of Failure:
1. Lack of cooperation from Spanish merchants.
2. Indirect commercial relationship with other countries increased costs.
3. Poor management focused on inconsequential activities.
4. Competition from foreign vessels.
Dissolution: The company was abolished in 1834.

Governance Issues:
1. Spanish officials were often incompetent and lazy.
2. Internal conflicts among Spanish colonial officials hindered effective governance.