The s became one of the imperialist powers in Asia when it took the Philippines from Spain in 1898. The government of Spain encouraged Spaniards to colonize the Philippines through the encomienda system (see “Indigenous Population Loss and Economic Exploitation” in Chapter 16): Spaniards who had served the Crown were rewarded with grants giving them the exclusive right to control public affairs and collect taxes in a specific locality of the Philippines. A local Filipino elite also developed, aided by the Spanish introduction of private ownership of land. Manila developed into an important entrepôt in the galleon trade between Mexico and China, and this trade also attracted a large Chinese community, which handled much of the trade within the Philippines.

In the late nineteenth century wealthy Filipinos began to send their sons to study abroad, and a movement to press Spain for reforms emerged among those who had been abroad. When the Spanish cracked down on critics, a rebellion erupted in 1896. (See “Individuals in Society: José Rizal.”)

In 1898 war between Spain and the United States broke out in Cuba (see “The Spanish-American War” in Chapter 27), and in May the American naval officer Commodore George Dewey sailed into Manila Bay and sank the Spanish fleet anchored there. Dewey called on the Filipino rebels to help defeat the Spanish forces, but when the rebels declared independence, the U.S. government refused to recognize them. U.S. forces fought the Filipino rebels, and by the end of the insurrection in 1902 the war had cost the lives of five thousand Americans and about two hundred thousand Filipinos. In the following years the United States introduced a form of colonial rule that included public works and economic development projects, improved education and medicine, and, in 1907, an elected legislative assembly.