 PHILIPPINE ECONOMIC DEVELOPMENT  THE COLONIAL RULE HE REPUBLIC:

National Economy

Economic Freedom Price is based on Supply and Demand Free choice of Investment Free competition

Our economy has not improved much in terms of the interest of the masses, because of our colonial and primitive agricultural economy. Foreigners control our economy from production to marketing. Our agricultural outputs are not even sufficient to feed our growing population. Hence grinding poverty has not left us. Such situation has been aggravated by our population explosion.

Determinants of Economic Growth Knowledge Skills Value

The Philippine became slave of three colonial master: Spain, United States and Japan. For more than three centuries we were under Spanish rule, and about half a century under the American Regime. The Chinese dominated the retail trade business even during the Spanish time.

The Chinese clustered around Intramuros - which literally means “city within the walls” – the Spanish colonial capital. Tondo, Binondo and Sta. Cruz were inhabited by the Chinese. The only economic contributions of the Spanish rule were encomiendas, galleon trade and tobacco monopoly.

Under the American Regime, many Filipinos thought that the coming of the Americans was great blessing. At that time, the tremendous growth of factories in the United States created big problems. To solve these problems, the United States colonized new territories like the Philippines.

This gave the American businessman the right to exploit natural resources, to operate public utilities and other business, and enjoy the pre-war free trade agreement. The Philippines government accepted the Bell Trade Act in exchange for war damage payment.

When the Philippine economy plunged into its lowest level, the United States agreed to impose import foreign exchange control. Clearly, this reduced U.S exports to the Philippines. The import control program of the Philippine government provided Filipino Entrepreneurs opportunities to put up their own enterprises. There was no foreign compitition.

Introduce the first Filipino Policy. It granted the Filipinos preferential treatment in the Philippine Economy. He abolished the import and foreign exchange control. In exchange, the Philippine government received more than 500 dollar loan from United States.

Enumerate the three determinants of economic growth Illustrate the three major sector of economy

Knowledge Skills Values

National Economy

Give the meaning of the ff; Human resources Unemployment Poverty