The start of Filipino nationalism (1760s–1820s) The term "Filipino" originally referred to the Spanish criollos of the Philippines . During their 333-year rule of the Philippines, the Spanish rulers referred the natives as indios. [5] Also during the colonial era, the Spaniards born in the Philippines, who were more known as insulares, criollos, or Creoles, were also called "Filipinos." Spanish-born Spaniards or mainland Spaniards residing in the Philippines were referred to as Peninsulares . Those of mixed ancestry were referred to as Mestizos . The Creoles, despite being regarded by the Peninsulares as inferior to them, had enjoyed various government and church positions, and composed the majority of the government bureaucracy. [6] The sense of national consciousness came from the Creoles, who now regard themselves as "Filipino". It was brought to its advent by three major factors: 1) economy, 2) education and 3) secularization of parishes. Economy The decline of Galleon trade between Manila and Acapulco was caused by the arrival of the ship Buen Consejo in 1765. The Buen Consejo took the shorter route [1] [clarification needed ] via Cape of Good Hope , a rocky headland on the Atlantic coast controlled by Portugal. The journey through the Cape of Good Hope takes three months from Spain to the Philippines, whereas the journey of the galleon trade takes five months. The event proved that Portugal was already past its prime in controlling the route via the Cape of Good Hope , which was already under Dutch control as early as 1652. Shorter journeys to and from Spain brought faster trade and quicker spread of ideas from Europe. [1] Also, the growing sense of economic insecurity in the later years of the 18th century led the Creoles to turn their attention to agricultural production. The Creoles gradually changed from a very government-dependent class into capital-driven entrepreneurs. Their turning of attention towards guilded soil caused the rise of the large private haciendas . Various government and church positions were transferred to the roles of the Peninsulares who were characterized mostly in the 19th century Philippine history as corrupt bureaucrats. During the 1780s, two institutions were established in order to enhance the economic capacity of the Philippines. These were the Economic Societies of Friends of the Country and the Royal Company of the Philippines. The former, introduced by Governor-General Jose Basco in 1780, was composed of leading men in business, industry and profession, the society was tasked to explore and exploit the natural resources of the archipelago. It offered local and foreign scholarships, besides training grants in agriculture and established an academy of design. It was also credited to the carabao ban of 1782, the formation of the silversmiths and gold beaters guild and the construction of the first papermill in the Philippines in 1825. The latter, created by Carlos III on March 10, 1785, was granted exclusive monopoly of bringing to Manila ; Chinese and Indian goods and shipping them directly to Spain via the Cape of Good Hope. It was stiffly objected by the Dutch and English who saw it as a direct attack on their trade of Asian goods. It was also vehemently opposed by the traders of the Galleon trade who saw it as competition. [7] Education During the administration of Governor-General Jose Raon , a royal order from Spain, which stated that every village or barrio must have a school and a teacher, was implemented. The implementation of the order expanded the reach of basic education during the Spanish era. Also, during the 18th century, modern agricultural tools made many people leave farming for pursuing academic and intellectual courses. After the arrival of Buen Consejo, the Philippines had more direct contact to Europe and the ideas circulating . Thus, the Philippines was influenced by the principles during the Age of Enlightenment and radical changes during the French Revolution . [1]