tem of colonialism is such that it contributes strongly to the few becoming rich while the many become poor. This is because colonists tend to exploit the resources of both labor and land for their own gain. In the Philippines, for example, the colonial legacy "brought commercial success to only a small elite of absentee landowners and foreign immigrants who resided in Manila and the larger towns" (Wickham 114). At the same time, the majority of the Philippines' population "formed an impoverished group of small-holder, tenant, and landless farmers" (114). During the early period of Spanish rule, the Philippines began to experience a great deal of economic growth which was stimulated by foreign trade. However, only the colonial rulers benefitted from this economic growth. Thus, it has been noted that "trade flourished for those in power" (Hahn 21). This unequal distribution of wealth in the Philippines was compounded by the economic and social structure of the country which was developed under Spanish imperialism. In this regard, it has been noted that the peasant farmers of the Philippines, who formed the majority of the population, were generally under the direct rule of a local boss, or "cacique." The cacique was known as the "rich man of the village," and he "owned everything in the way of land, and farmed it out, taking part of every crop--and a good part, too, so that the tao [peasant farmer] was virtually a peon" (138).
A similar situation developed in Central America during its own period of Spanish rulership. As in the case of the Philippines, the nations of Central America experienced an increase in trade with the other nations of the world. However, again, only the elite class in Central America benefitted from this development in trade. The overall income from exports during that time was not strong enough to give wealth to everyone. As a result, the ruling class took advantage of the situation and an economic...