[Philippine corruption] Ferdinand Marcos and the Philippines The Political Economy of Authoritarianism #7/163

The town (pueblo) therefore was governed by the principalia with
the strong influence of the parish priest. Provinces, which are groups of towns or
municipalities, were in turn governed by alcaldes-mayores or governors. An alcalde
was the political and military chief, magistrate, and delegate of the treasury. The
position of alcalde was considered lucrative in the Spanish colonies and
appointments to "alcaldeships" were bought. The investment reaped many rewards
with the privilege of conducting and controlling business in the province. The
alcalde was also allotted a percentage of the tributes collected. Collecting more than
was required by law was a widespread practice because of increased bonuses. The
Spanish crown required alcaldes to post bonds and securities and to submit an inventory of their estates. The alcaldes were also subject to audit; in addition, they
might be required to pay fines for excesses, but their profits always exceeded their
investments, and none of the safeguards deterred corruption.24

By its very nature, colonialism adversely affects the colonized. Spanish
colonialism was no exception. Food became scarce because farmers were taken from
their farms to do forced labor such as building ships. The dependent and
unproductive population increased and, with it, the demand for food. Scarcities
produced increases in the prices of commodities." The transition to a monetized
economy was painful for the natives.

The Philippines functioned as an entrepot during the galleon trade when China
sold a vast array of commodities in exchange for silver and gold mined in the
Spanish colonies in America. Ships for that trade were built and maintained by
Filipinos. They were served by Filipino crews as well. Some speculators in the trade
even got their capital from profits accrued in the Philippines.26 The colonial
government established monopolies in which the kinds and quantities of crops to be
planted were dictated. The sale of crops was limited to the government or its agents,
and at their prescribed prices. Control was also imposed on processing and
storage.27 That control was called vandala, by which governors had monopolies of
trade within their jurisdiction. They bought goods from Manila with their capital
usually taken from loans, and then sold them to the natives. In turn, the latter sold
their products to the governor. The prices in both transactions were dictated by the
governor.28 Land accumulated in the hands of friar corporations and government
officials. With the introduction of ownership through written titles and legal
documents, the natives were cheated by those who controlled the bureaucracy.29
Government was rife with corruption. A government position became an opportunity
to exploit land, human energy, and labor, as well as to enjoy perquisites and
privileges.

During the middle of the eighteenth century, the transformation of the Philippine
economy began. No longer was economic activity focused on the galleon trade. The
accumulation of land, in the hands of friar corporations and Spaniards, brought
about the hacienda or plantation system. Large tracts of land were exploited for cash
crops such as tobacco, sugar, and abaca. The abandonment of rice lands for the
planting of other agricultural commodities for export earnings resulted in rice
shortages, so rice had to be imported from other Asian countries.

When the last of the Manila galleons sailed in 1813 and when the Real Compania
de Filipinas was abolished in 1834, more foreign ships and traders entered the
archipelago. Manila was opened as an international port together with Iloilo, Cebu,
and Sual. The British and the Americans became the Philippines' largest trading
partners. As in British India, imported textiles, which were cheaper, replaced the
locally woven cloth for consumption. By the end of the nineteenth century, a great
number of foreign fines were booming in the Philippines, processing and exporting
Philippine agricultural produce to the world; thus developed the popularity of Manila
paper, Manila hemp, and Philippine cigars.30

The economic transformation, as well as the establishment of direct links with
Europe through the opening of the Suez Canal in 1869, made possible the influx of European liberalism. The ripple effects of Spanish liberalism and reformism, a
latecomer compared to its European counterparts, influenced the Philippines. The
wealthy class of landowners and traders created by the economic boom gained
access to education. Enlightened ideas led to demands for reform, which were
considered subversive and revolutionary by conservative rulers. To the friars,
reformism was heresy and a threat to their dominance.

NATIONALISM AND REVOLUTION

Hundreds of revolts were staged against Spanish abuses throughout the 300 years
of Spanish rule;" however, the revolts were separate and local. The coming of
liberal ideas and the grievances resulting from racial discrimination coalesced with
the collective suffering and frustration brought about by colonialism.