Economic Policies of Spain:

Encomienda System
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Spanish that were able to help significantly in conquering and pacifying the lands were
rewarded with the encomienda system.
It refers to the rights given to the conquistadores by the king of Spain to rule a territory
including its residents.
It was not a form of land ownership but a system of controlling or administering a
territory.

Encommenderos the Spaniards who were given the right to rule a land or territory.
RIGHTS AND DUTIES OF THE ENCOMIENDERO:
1. Ensure that the residents are safe from enemies.
2. Maintain peace and order
3. Help missionaries with their duty in teaching Christianity
4. Collected taxes to his people within his territory
5. Enlisted men for the polo y servicio

All citzens between the ages of 19 60 years old paid an annual tax of eight reales or equivalent to
one peso.
The encommenderos abused their power over the people within their territory, especially when it
comes to collecting taxes. They forcefully took the properties of those who cannot pay their taxes
the value of those properties was much greater than the amount of tax due.
Tribute System
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It is a system of taxation in the Philippines.

Taxes were paid in cash or its equivalent value in goods such as: tobacco, rice, cotton,
fabric and poultry.
Taxes were used to build towers, forts, galleys and other defensive structures as part of
the Spanish efforts to strengthen security in the colony.

Under the administration of Governor General Pedro Bravo de Acuna, payment of tribute in
form of harvest was banned. He ordered instead the collection of ten reales from the people as
tribute.

During the term of Governor General Juan Nino de Tabora, payment in the form of money was
banned. He encouraged the people to improve their farming to increase their harvest, that will used
to pay the government.
OTHER FORMS OF TAXATION IMPOSED BY THE SPANIARDS IN THE PHILIPPINES:
1. Samboangan amounted to half reales which can also be paid in the form of rice equivalent to
this value; this tax was collected from the people of Zamboanga to suppress the Moros.
2. Vinta a kind of tax collected from the people residing along the coast of western Luzon as a
form of financial aid in defending against the threat of Muslim attacks.
3. Falua- similar to the vinta that was collected from the people in Camarines Sur, Cebu, Misamis
and neighboring provinces.

In 1884, the tribute system was replaced by cedula personal, a smale piece of paper that served as
identification of a resident of a province. Every individual aged 18 years old and above were
required to pay the cedula personal.

BANDALA SYSTEM
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The forced buying of the farmers harvest by the government.

There was a quota for the products to be sold to the government in each province. Towns of a
certain province contributed to reach the total quantity or value of harvest imposed to that
province.
The government usually paid promissory notes in exchange for the products. These pieces of
paper were usually not converted to its corresponding value because the government had no fund.
Because of this, the people lost their income and went bankrupt.

POLO y SERVICIO
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The policy of forced labor.

Under this policy, the Filipinos were required to participate in heavy work such as building
infrastructure, logging, and shipbuilding.
According to this policy, all men aging 16 60 years old were required to work for a period
of 40 days.

Polista polo worker, were paid one fourth real and rice per day.

A polista may be exempted from rendering services after paying the falla, or the equivalent
amount paid to be exempted from forced labor.