Quezon's Commonwealth: Overture to Economic Dependence PDF

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Quezon’s Commonwealth: Overture to Economic Dependence Luis Zuriel P. Domingo1 Lecturer, Department of History and Philosophy, University of the Philippines Baguio MA Candidate, The Graduate School, University of Santo Tomas I am more than grateful to be part of the webinar series of the University ...

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Quezon’s Commonwealth: Overture to Economic Dependence Luis Zuriel P. Domingo1 Lecturer, Department of History and Philosophy, University of the Philippines Baguio MA Candidate, The Graduate School, University of Santo Tomas

I am more than grateful to be part of the webinar series of the University of Santo Tomas Department of History under the helm of Assoc. Prof. Dr. Archie B. Resos. The lineup of speakers of this webinar series ranged from well-known historians to seasoned faculty members from top universities in the Philippines. So, it is indeed a privilege to be invited and be given the opportunity of my home department–as an undergraduate and now a graduate student–in España, Manila to join you today. And, of course, thank you also to the organizing committee headed by Asst. Prof. Dr. Jeric Albela. My lecture this morning focuses on Manuel L. Quezon, first president of the Philippine Commonwealth, and his maneuvering of the country’s path toward economic independence. This topic is a condensed version of a preliminary chapter I produced for my master’s thesis. More to its premise of economic history, in my study, I also incorporated a historical examination of Quezon’s intellectual history in this particular period; his autocratic leadership, duly supported by the Filipino elite, that affected the preparedness of the Philippines for economic independence. I would like to recognize the various literature that helped me in shaping my assertions and providing the spot-on context in understanding Quezon and his intellectual history: the works of Sol Gwekoh (1948), Carlos Quirino (1971), Theodore Friend (1978), Aruna Gopinath (1987), Alfred McCoy (1988), Michael Onorato (1989) and most recently Veronica Alporha (2021). In my investigation, however, I discovered that it is essential to discuss Quezon’s political role of maintaining state power and influence over the Filipino elite through kleptocratic politics in relation to his conduct of Philippine affairs and how this led to such negligence of the worsening social problems and wasted an opportunity for economic independence, but I will only focus on the overview of his economic maneuvering. In essence, the Commonwealth Period under Quezon served as a backgrounder to the subsequent post-colonial politics under a modern principalia-class and to palpable economic reliance on foreign control of the economy, which is evident up to the present conduct of Philippine national and local politics. Note: The author omitted the rest of the talking points as these are part of the author’s unpublished MA thesis manuscript. You can access the recorded lecture at: https://youtu.be/zaWLSV0ftLY.

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This paper was submitted to the 12th International Convention of Asia Scholars, Kyoto, Japan on 24-28 August 2021. The face-to-face conference, however, was cancelled and held virtually. The author cancelled plans to present online. This paper is research offshoots of the Chapter 2 of the author’s MA thesis, “The Ratification of Parity Rights and the Resurgence of Nationalism against Foreign Control of Economy, 1946-1974.” On 23 January 2022, Department Chair of UST History Department Assoc. Prof. Archie B. Resos, Ph.D. through Asst. Prof. Emmanuel Jeric Albela, Ph.D. requested the author if he could present this paper in a webinar sponsored by the said department. In that regard, this paper was condensed to fit the webinar and the general audience.

Photo credit: Free Press (9 August 1930)

Quezon’s Commonwealth: Overture to Economic Dependence Luis Zuriel P. Domingo (@domingozuriel) University of the Philippines Baguio, University of Santo Tomas Manila 12th Webinar of UST Department of History, 31 January 2022

“[And] I hereby declare that I recognize and accept the supreme authority of the United States of America in the Philippines and will maintain […] will pay an allegiance thereto…” Oath of Office of President Quezon, November 15, 1935 (Official Gazette)

Photo credit: Presidential Museum and Library

The principal problem of the Philippine Commonwealth is economic.

Photo credit: University of Michigan Library Special Collections

“The principal problem which must be solved by the new government will be economic, and the future—success or failure—of the Commonwealth will be determined very largely by this factor.” Leon Bower, “The Philippine Commonwealth,” Social Science 12, No. 4 (October 1937): 449.

“[No] amount of miseducation and misinformation can conceal the objective reality of economic exploitation that is the fundamental motive for colonization.” Renato Constantino, The Philippines: A Past Revisited (Quezon City: Tala Publishing Services, 1975): 347.

Photo credit: Life Magazine, 1902. Water curing by U.S. Army troops in the Philippines.

Photo credit: Minneapolis Journal Printing Company.

Photo credit: Puck Magazine, 1901.

Senator Kenneth McKellar, a Democrat who had voted for the Philippine independence bills and part of the Congressional visit, reported that while the Filipinos wanted independence, he saw a possibility of an “economic collapse unless they were accorded indefinitely dutyfree trade privileges with the United States.” Garel Grunder and William Livezey, The Philippines and the United States (Norman: University of Oklahoma Press): 225.

Photo credit: Encyclopædia Britannica, Inc.

Commonwealth Act No. 2 An Act creating the National Economic Council

Commonwealth Act No. 2 (Official Gazette)

Photo credit: Library of Congress

Despite acceptable economic and financial performance of the Philippines from 1935 to 1938, Paul V. McNutt, US Commissioner, suggested that both parties should set in motion a ‘realistic re-examination’ of long-term interest, eager to solidify the United States influence in the Philippine Is. He was pointing out a policy “favoring a permanent political and economic relationship,” with hopes that “the enduring welfare and safety of both countries should be paramount consideration.” “Quezon Abandons Independence Cry; Agrees to McNutt's Suggestion That Philippine Question Should Be Reexamined,” The New York Times, March 16, 1938.

Washington: American investments “are of vital importance in Philippine economy.” In 1938, the Americans still controlled 44% of public services ranging from transportation, communications, water, and gas. Therefore, Filipino capital is still in competition but also at a disadvantage against its American counterpart. US Congress ensured that American interests needed to be secured at their end in granting the Filipinos their independence. The idea of industrialization remained an open question for the Commonwealth government. Catherine Porter, “The Philippines as an American Investment,” Far Eastern Survey 9, no. 19 (1940): 220.

Economic Nationalism during Commonwealth Quezon’s idea of economic nationalism, therefore, is built on protection. Protectionism, not measured on “protective tariffs, differential transportation charges, bounties on exports, ship subsidies, discouragement of foreign enterprises and denationalization of capital, and import quotas,” rather a “protectionism within limits” an “increased vocational efficiency of the people.” Aruna Gopinath, “President Manuel Quezon and Economic Protectionism, 1935-41,” Philippine Studies 34, no. 2 (1986): 144-145.

Photo from Presidential Museum and Library

Promoting economic adjustment From four state-owned enterprises in 1935, fourteen businesses were created under the supervision of the government ranging from railroad, cement, textile, canning companies by 1940. Steve MacIsaac, “The Struggle for Economic Development in the Philippine Commonwealth, 1935-1940,” Philippine Studies 50, no. 2 (2002): 141.

Photo credit: Underwood & Underwood Collection and Archives

“A dip into the future would make us realize with the pang of premonition, the grave and deplorable consequences resulting from such acts to our national honor, sovereignty, the control of our sources of wealth, and our territorial integrity.” Claro M. Recto, “Address delivered before the University of Manila, March 24, 1936.”

Photo credit: National Library of the Philippines

Quezon and other Philippine leaders indeed patronized the idea of economic nationalism. The establishment of the National Economic Council under Commonwealth Act No. 2; the promotion of local products; establishment of the SOEs; and his famous Social Justice program. But there were many barriers for adjustments and to achieve independence. Economic power, reliant on commerce and trade, is achievable only with the idea of political independence.

Photo credit: Museum of History and Industry PEMCO Webster & Stevens Coll

Photo credit: The Herald on October 1937.

End of presentation © Luis Zuriel P. Domingo, 2022...