By Tim Craddock
The Profligate Colonial by Lisandro E. Claudio is an erudite and deeply analytical work, offering a meticulous account of colonial policy and economic history in the Philippines. Claudio’s study is particularly valuable for scholars and specialists, especially those interested in the economic development of the Philippines before and after independence. While the book is rich in archival detail and critical insight, it is not a straightforward read—its prose and approach cater more to academics, economists, and dedicated students of history, rather than to the casual or general reader.
The specialised language and analysis make it a challenging text, best appreciated by readers with prior knowledge of economic history or colonial studies. General readers may find the book demanding, and it serves more as a reference work than an accessible, narrative-driven account.
Critical Themes: Economic “Fetishism” and Colonial Mindsets
The Profligate Colonial shines in its exploration of the prevailing “fetishism” of the US authorities in seeing austerity as the “answer” to managing the Philippine economy, both during the colonial era, and after independence. This is unpacked by Claudio in examining how racist and colonial stereotypes shaped policy.
The book lays bare the persistent idea – rooted in both prejudice and an almost theological belief in the gold standard and austerity as the basis for managing a post colonial economy, and keeping it in thrall to its pre-colonial master – that native populations were incapable of governing their economies responsibly, according to the standards imposed by former colonial powers.
Claudio’s scrutiny of colonial authorities—figures like US officials Leonard Wood and William Forbes—exposes the cynical racism, and indifference to the impact of an austerity-based economic model. There was an absence of through as to how to develop the Philippine economy for growth – e.g. through infrastructure investment and upgrading industrial production capacity. The impression was that the people just did not matter; as long as the purity of orthodox economics was maintained, the the consequences were irrelevant.
There were the frequent tropes about post-colonial governments being riddled with corruption and incapable of responsible economic policy. Now, corruption there certainly was, and Claudio details the intricacies of corruption in the Philippine National Bank under its first Filipino president, Venacio Concepcion during the period of colonial rule in the 1920s.
But it was not corruption which caused crisis; it was then underlying continuity of an austerity, gold-standard based approach to managing the economy. It was this which impacted growth potential, production capacity, and the development of skills and technical knowledge required to enable the transition the Philippines to being a modern mixed-economy.
The embedment of such economic orthodoxy was reflected in the Philippines celebrating its first national “austerity day” in January 1958 – it was a celebration of thrift. It sought to combine contradicting aims; encouraging Filipinos to “tighten their belts”, and also achieve maximum production – basically, work more and harder for less. Sound familiar in terms of modern economic discourse?
The disregard for genuine development and well-being in the Philippines, in favour of policies serving Western interests, is a thread Claudio traces with unsparing clarity. Such analysis resonates with ongoing questions about how economic growth is understood and managed in the global south, and the enduring legacy of colonialism across their economies, (where the focus on extracting economic rent through countries’ mineral and other resources remains to the fore – witness the recent US “agreement” with the democratic republic of Congo in relation to security and the extraction of rare minerals).
Strength as a Reference Work
For those engaged in research or advanced study, The Profligate Colonial is an excellent reference. Its detailed treatment of Philippine economic history and its examination of the transition to independence and subsequent economic development will be invaluable for academics and specialists. But those seeking a more general overview or a narrative history might find the book’s approach less accommodating.
Given its academic focus, I would suggest “The Profligate Colonial” as a reference work for the general reader, rather than reading it cover to cover. But for those interested in a broader and more accessible introduction to the history and context of US colonialism in the Philippines, I recommend “Enduring Empire: US Statecraft and Race-Making in the Philippines” by Katrina Quisumbing King. King’s work offers a narrative more suited to readers seeking clarity and engagement in the wider context of colonial history.
“The Profligate Colonial” is an important work; it is a significant, specialist contribution to the literature on colonial and economic history. Its incisive analysis and exhaustive research make it an important resource for academics and economists, although its challenging nature may limit its appeal for the generalist. Nevertheless, for those who want to understand more deeply the legacy – an impact – of colonial economic thought, Claudio’s work provides an essential—if demanding—source of insight.
Lisandro E. Claudio’s Rigorous Contribution to the study of Philippine Economic History
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