Life and Works of Jose Rizal

Module 2 The Nineteenth Century Philippine

Economy, Society, and the
Chinese Mestizos
Introduction
This module will look at how the Philippine economy changed in the nineteenth
century and how these changes influenced the culture in which Rizal grew up, matured,
and was eventually executed. It will begin by examining the massive economic growth
that began in the late eighteenth century as a result of a variety of circumstances. The
significance of a significant population, Chinese mestizos, in Philippine society and
economics will be discussed. These Chinese mestizos will be studied in the context of
the Philippines' growing socioeconomic stratification.

Learning Outcome:
Create a worksheet containing the changes and developments that were felt
in the 19th century Philippines.

Learning Objective:
Explain the important role of the Chinese mestizos and their ranks within the
changing Philippine economy and society.

Content Exploration

The Changing Landscape of Philippine Economy and Society

Many scholars regard the nineteenth
century in the Philippines as a period of
significant transformation. Huge economic,
political, social, and cultural currents were felt
throughout this time. Change, on the other hand,
had its beginnings in the previous century. By
the late eighteenth century, the Spanish
monarchy had shifted from the Habsburgs to the
Bourbons. Spain's colonial policies were re-
calibrated under the new government, which had an impact on the Philippines. Bourbon
policies and reforms were implemented with the intention of reviving the profitability of
colonies such as the Philippines. Jose de Basco y Vargas, the first governor-general to
visit the Philippines under the Bourbon mandate, arrived in the Philippines in 1778.

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 Life and Works of Jose Rizal

By the time Basco arrived, the Galleon Trade, the main economic institution
existing in the Philippines, was already a losing enterprise. As Spain sought ways to
salvage the dwindling economy of the empire, the global wave of industrialization became
a silver lining. As many imperial powers in Europe and the West were undergoing
industrialization, an increased demand for raw material presented an opportunity to look
into the agricultural potential of the Philippines. Thus, it was viewed that the transportation
of the economy towards being export-oriented, harnessing the agricultural products that
could be yielded from the archipelago, was the way to go.
Basco formed the Royal Philippine Company in 1785 to fund agricultural projects
and manage the new trade being established between the Philippines and Spain (and
Europe), as well as other Asian markets, in order to better enable the envisioned
reorientation of the economy. However, these adjustments were met with a lukewarm
response. Resistance came from a variety of sources, including the Catholic Church,
which was opposed to the planned labor realignments, and traders who were still clinging
to the Galleon Trade. It didn't help matters that the Royal Philippine Company was beset
by incompetence and corruption. As part of his reform push, Basco lifted a ban on
Chinese merchants, reviving internal trade; began the development of cash crop farms;
relaxed certain policies, allowing Manila to gradually open up to foreign markets; and
established the Tobacco Monopoly to maximize the production of this export good.
At the turn of the nineteenth century, global events
continued to have an impact on the Philippines. By 1810, the
Spanish empire had been shaken by the Mexican War of
Independence, which would eventually result in the loss of
valuable Latin American colonies. As a result, the Galleon
Trade came to an end. As the Philippine economy hung in
the balance, policies were re-evaluated, and Manila was
eventually opened to international trade in 1834, following
the closure of the Royal Philippine Company. As a result,
international merchants and traders began to arrive in Manila
and eventually settled there, taking over the job of funding
and assisting the country's booming agricultural cash crop,
export-oriented economy. Some of the most significant
investments were made by British and American entrepreneurs who established
merchant companies in Manila.
In the Philippines, rapid economic expansion began to flow through cash crops.
By the first part of the nineteenth century, cash crops such as tobacco, sugar, cotton,
indigo, abaca, and coffee accounted for the majority of the Philippines' exports.
As cash crops became the colony's primary source of wealth, the value of land
became even more apparent. Land ownership and management became a challenge
when the provinces began to cultivate income crops. Farmers were feeling the effects of
the economy, while hacenderos seized the opportunity. When a minor landowner, for

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 Life and Works of Jose Rizal

example, needed cash, he would enter into a pacto de retroventa, a sale agreement that
guaranteed he could buy the land back at the same price he sold it for. However, due to
the economy's ever-increasing demand and the sale's renewals, it became increasingly
difficult to buy back land, further burying the farmers in debt. They would eventually lose
their land and be forced to work as tenant farmers, or kasama. Aside from this method,
land acquisition was also done by land-grabbing. Inquilinos arose as the rising economy
necessitated better land management. They rented property and sublet it to smaller
farmers. These causes would cause a shift in the social stratification in the countryside,
which had previously been characterized by tensions and contestations.
The Chinese and Chinese Mestizos
The Chinese mestizos were one of the sectors that gained tremendously from the
shifting economy. Philippine natives have had trading links with the Chinese since pre-
colonial times. During the height of the Galleon Trade, Chinese products made up the
majority of the goods traded. The Spanish were distrustful of the Chinese as a result of
the flood of Chinese communities in the Philippines. These attitudes resulted in harsh
official measures toward the sangley, ranging from greater taxes to mobility restrictions
with the construction of a Chinese enclave (the Parian) to outright deportation programs.
The Chinese, on the other hand, proved to be "necessary outsiders" in the colonial
economy and society of the Philippines. Although the Spaniards were cautious of the
Chinese, they recognized the role they played in the economy's survival. The Chinese
invigorated the economy by loading products onto galleons and developing retail trade.
They were eventually absorbed into colonial society, resulting in intermarriages with
indios and the birth of Chinese mestizos. Throughout the Spanish colonial period,
Chinese mestizos played an important part in the economy. They influenced the evolving
economy in the nineteenth century by buying land, amassing fortune, and wielding power.
Impact on Life in the Colony
As previously said, economic developments triggered social, political, and cultural
changes. For example, the new economy required a more educated populace to meet
the growing demand for a more professionalized workforce to manage trading activities
in Manila and other major cities. This desire prompted the colonial government to issue
an order in 1836 requiring all towns to establish primary schools in order to teach the
inhabitants how to read and write. It eventually resulted in the passing of an education
decree mandating free primary education in 1863. Eventually, several schools arose in
the nineteenth century to meet the expanding demands of professionals. During this time,
schools such as the Ateneo Municipal were founded. The administration was also able to
increase bureaucratization and streamline colonial governance due to the complicated
structure of the expanding economy.
As Manila grew in importance as a trading center, it became a feasible option for
those seeking new possibilities or fleeing the deteriorating circumstances in the
farmlands. Internal migration has increased at an alarming rate, causing various issues.

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 Life and Works of Jose Rizal

For one thing, people flocked to trading hubs like Manila. Overcrowding leads to problems
with living quarters, sanitation, and public health, as well as a rise in crime. Two, people's
constant migration made tax collection even more difficult. One remedy implemented to
alleviate these worries was Governor-General Narciso Claveria's edict of 1849, which
encouraged colonists to adopt surnames. The colonial administration allocated surnames
to citizens using the catalogo de apellidos, and banned people from changing their names
at will. The colonial authority sought a better surveillance system by enacting policies
such as registration and ownership of a personal cedula bearing one's name and address.
The guardia civil was eventually established to aid in the better execution of policies. As
the emerging economy provided new opportunities for the colonial state, it also led the
state to become more regulated and assertive.

Renegotiating Social Stratification

The impact of the expanding economy on Philippine society was felt. As a result,
social interactions were redefined, and social stratification was renegotiated as a result
of changing dynamics. New lines were created with the following social strata as the
mestizo population grew:
Peninsular Pure-blooded Spaniard born in the Iberian
Peninsula (i.e., Spain)
Insular Pure-blooded Spaniard born in the
Philippines
Mestizo Born of mixed parentage, a mestizo can
be:
Spanish mestizo—one parent is Spanish,
the other is a native; or
Chinese mestizo—one parent is
Chinese, the other is native
Principalia Wealthy pure-blooded native supposedly
descended from the kadatoan class
Indio Pure-blooded native of the Philippines
Chino infiel Non-Catholic pure blooded Chinese

As the Spaniards' economic influence waned in the nineteenth century, they

reassert control based on race. This problem was exacerbated by the growing principalia
and mestizo populations, who recognized their critical role in society as economic movers
and facilitators. Throughout the century, the renegotiation continued as the mestizos and
principalia elite desired social respect that the pure-blooded Spaniards had continually
denied them.

These prosperous mestizos and principalia members continued to build economic

and cultural riches. They also took advantage of opportunities to pursue further education
not just in the Philippines but also in Europe. These actions increased their social
relevance because it was from these ranks that nationalist articulations would emerge.

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 Life and Works of Jose Rizal

Seeing Rizal’s Life in His Society

It is a commonly acknowledged notion in the
social sciences that we see an individual's life in the
context of his or her society, and society in the
context of an individual's existence. This is why the
19th century Philippines, as well as Rizal's society,
are explored as a prelude to studying the hero's life
and writings.
. Rizal's distinctive attribute was that he not
only had valuable information about his civilization, but he also had a quality of mind that
allowed him to use that information to think about what was going on in the world and
what might be going on within himself. Sociologists refer to this mental characteristic as
"sociological imagination."
People with this social imagination can see their personal lives and careers in the
context of greater historical dynamics. Those who have this quality of mind can locate
themselves in history to understand their own experiences, and they may recognize the
responses open to them by becoming aware of all the individuals who are in the same
situation as them.
People who cannot place their lives in the context of history are unlikely to know
how to respond successfully in a world where people's lives are intertwined and one
society's problems are part of broader global issues. Those with sociological imagination,
on the other hand, can see history in the context of the realities they are confronted with,
as well as the relationships between the two.

Try This!
Explain the important role of the Chinese mestizos and their ranks within the
changing Philippine economy and society.

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 Life and Works of Jose Rizal

Let’s Apply!
Create a worksheet containing the table illustrated below. Write the changes
and developments that were felt in the 19 th century Philippines. After listing
the changes, plot them within Rizal’s biography while citing events in his life.

Changes and Development Relations to Rizal’s Life

Economic

Political

Socio-
cultural

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 Life and Works of Jose Rizal

Reflective Analysis
What is the best learning that you gain in this module?

References
Mañebog, J., Paragas, R., Barrientos, M.O., & Francisco, R. (2018). Life and Works of
Rizal. Malabon City: Mutya Publishing House, Inc.
Obias, R., Mallari, A.A., Estella, J. (2018). The Life and Works of Jose Rizal. Quezon City:
C & E Publishing, Inc.

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