Historical Influences on the
Philippines’ Economic and
Political Landscape: A Case
Analysis
Student: Brokeshield C. Sabanillo
Professor: Dr. John Wayne V. Jacinto
ASIAN STUDIES SS 110
September 25, 2024
Name: Brokeshield C. Sabanillo Course/Year Level: BSED-SOCIAL STUDIES 2
Professor/Instructor: Dr. John Wayne V. Jacinto
Historical Influences on the Philippines’ Economic and Political Landscape: A Case Analysis
Introduction
The Philippines, an archipelagic nation in Southeast Asia, has a rich history shaped by
diverse cultural influences and natural beauty. Since gaining independence in 1946, it has
evolved into a vibrant democracy, known for its resilient people, unique heritage, and
rapidly growing economy. Despite facing various challenges, the country is celebrated
for its stunning landscapes, rich biodiversity, and strategic position in the Pacific that has
shaped its role in regional and global affairs. This case analysis explores the historical
factors that have shaped the economic and political conditions of the Philippines. From
the Spanish colonial period through the American occupation and the post-independence
era, these influences have significantly affected the country’s development trajectory.
Analysis (Historical Background)
Historical events have significantly contributed to the Philippines’ economic development
and political stability, influencing its transition from a colonial society to a democratic nation.
Pre-Spanish Era: Before Spanish colonization, the Philippines was home to various
indigenous communities organized into barangays, each led by a datu. These communities
engaged in subsistence agriculture, fishing, and trade with neighboring regions, including China
and Southeast Asia. The arrival of Islam in the 15 th century established a socio-political
framework through the formation of sultanates, particularly in Mindanao and Sulu. This pre-
colonial era laid the groundwork for complex social structures and trade networks that would
interact with European powers in subsequent centuries.
Spanish Colonial Period (1565–1898): The Spanish established a centralized governance
system that prioritized resource extraction over development. The encomienda system allowed
Spanish encomenderos to collect tribute from local populations, leading to widespread abuses
and neglect. Spanish land policies created significant social inequalities, as the Church and
colonial elites amassed large tracts of land while many Filipinos remained landless. The
introduction of Catholicism had profound cultural implications, transforming religious practices
and societal norms. The emergence of a local educated elite, or ilustrados, began to challenge
Spanish authority, sowing the seeds of nationalism and reform movements that would gain
momentum in the 19th century.
American Colonial Period (1898–1946): Following the Spanish-American War, the
Philippines came under American control, marking a new phase in its political and economic
development. The U.S. introduced significant educational reforms, establishing a public school
system that promoted English literacy and technical training. Infrastructure development was
prioritized, with roads, ports, and communication networks built to facilitate American economic
interests. However, this period also created a dependency on the United States, as the Philippines
became an exporter of agricultural products and raw materials while experiencing limited
industrial growth. The passage of the Jones Act in 1916 affirmed American intentions to grant
independence, though real autonomy remained elusive.
Japanese Occupation (1942–1945): The Japanese invasion during World War II marked a
brutal occupation that severely disrupted the Philippine economy. The Japanese administration
exploited local resources for their war effort, leading to widespread suffering, food shortages,
and forced labor. The occupation galvanized nationalist sentiments, prompting the formation of
resistance movements that sought to overthrow foreign control. The devastation wrought by the
war underscored the urgent need for reconstruction and self-determination, shaping the post-war
political landscape.
Post-Independence Period (1946 onward): The Philippines officially gained independence
from the United States on July 4, 1946, yet faced numerous challenges as a newly sovereign
nation. Political instability characterized the immediate years following independence, with
corruption, poverty, and economic challenges persisting. The rise of the Ferdinand Marcos
regime in the 1960s introduced martial law, leading to widespread human rights abuses,
curtailment of civil liberties, and increased foreign debt, which stifled long-term economic
growth and stability. This tumultuous era highlighted the complexities of post-colonial
governance and the ongoing struggle for democracy.
People Power Revolution (1986): The People Power Revolution, also known as the EDSA
Revolution, marked a pivotal moment in Philippine history, restoring democracy after years of
authoritarian rule under Marcos. This largely peaceful uprising showcased the power of civil
society, uniting diverse groups against the regime. Following the revolution, political reforms
were implemented, although the emergence of political dynasties and ongoing corruption
continued to challenge the democratic landscape. The revolution inspired movements for reform
in other countries and reinforced the importance of citizen activism in shaping governance.
Economic Reforms and Globalization: The 1990s ushered in a wave of economic liberalization
that transformed the Philippine economy, particularly with the growth of the services sector,
including the business process outsourcing (BPO) industry. Overseas Filipino workers (OFWs)
became a critical component of the economy, with remittances providing essential support for
families and contributing to national economic stability. However, this reliance on remittances
also underscored a lack of sufficient local employment opportunities, presenting ongoing
challenges for sustainable economic development and self-sufficiency in the post-colonial
Philippines.
Findings
The history of the Philippines reveals a persistent struggle against exploitation that dates back to
colonial times. For centuries, colonizers extracted the country’s rich resources, leaving Filipinos
with deep-seated poverty and inequality. Despite achieving independence and establishing a
democracy, the impacts of colonialism continue to hinder true economic growth and political
stability. Today, the Filipino people grapple with the consequences of this historical exploitation
as they strive for genuine prosperity.
This historical context has profoundly shaped the current economic and political landscape,
creating a complex web of challenges. Political opportunity structures across the country
significantly influence how politicians interact with businesses. In regions like Luzon,
characterized by a vibrant economy, political dynasties often behave as “stationary bandits,”
sharing some economic gains within a broader network. Conversely, in areas with instability and
rich natural resources, these politicians tend to act like “roving bandits,” focusing on wealth
extraction without investing in sustainable development.
The impact of political dynasties on governance is concerning. Research indicates that dynasties
often lead to misgovernance, as shown by studies from Dal Bó et al. (2009), Rossi (2014), and
Labonne et al. (2017), which reveal their self-perpetuation in Congress. This lack of political
competition diminishes incentives for effective governance, resulting in lower legislative
productivity and hindering local economic growth (Ali, 2016; Tusalem and Pe-Aguirre, 2013).
While political dynasties may secure more congressional funding for their jurisdictions, Tusalem
and Pe-Aguirre (2013) found that these regions often experience high crime rates, poor
governance, and inadequate investment in essential services like health and infrastructure.
Additionally, dynasties may expand government as a strategy to enhance their control and wealth
through patronage. Although this may seem beneficial in the short term for specific areas, it
ultimately leads to larger, less efficient governments that stifle overall economic development.
Interestingly, the effects of political dynasties vary by region. Mendoza et al. (2016) found that
while dynasties exacerbate poverty in non-Luzon provinces, the better-developed institutions in
Luzon mitigate some of these negative effects. The concentration of political and economic
power among elites plays a crucial role in these disparities.
Recommendations
The historical trajectory of governance shows that a balanced approach, combining
democratic reforms with economic diversification, is essential for building resilient communities.
Democratic governance fosters civic engagement and trust, allowing citizens to actively
participate in decision-making. Economic diversification protects against vulnerabilities linked to
reliance on a single industry, creating a more stable environment. Investing in education is
crucial, as it equips individuals with skills to adapt and innovate, enabling them to contribute to
their communities. Infrastructure development—such as reliable transportation and
communication—enhances connectivity and quality of life, promoting economic growth.
Supporting local industries empowers communities, ensuring profits stay within and fostering
self-sufficiency. In essence, prioritizing investments in education, infrastructure, and local
businesses lays the groundwork for sustainable development. This holistic strategy not only
addresses current challenges but also builds a thriving society for future generations,
emphasizing the value of every individual’s contribution.
Conclusion
Ultimately, the history of the Philippines shows a story of strength and resilience. From its early
days before colonization to the fight for independence and democracy, the Filipino people have
faced many challenges. Even after gaining freedom, issues like exploitation and powerful
political families have made it hard to achieve real economic growth and stability. Today, it’s
clear that a balanced approach is needed. Combining democratic reforms with a diverse economy
can empower communities and help them become self-sufficient. By focusing on education,
improving infrastructure, and supporting local businesses, the Philippines can create a fairer
future. These efforts will not only tackle current problems but also support a thriving society
where every Filipino can contribute to and enjoy a better tomorrow.
References
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Cullinane, M. , Borlaza, . Gregorio C. and Hernandez, . Carolina G. (2024, September 27).
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