The history of Manila begins long before the arrival of Europeans. On its site flourished the Tagalog settlement-principality of Maynila, which was an important trade hub in the region. It is believed that the name comes from the words "may-nilad", meaning "place where nilad grows" — a type of mangrove plant that grew abundantly along the banks of the Pasig River. This settlement maintained active trade ties with merchants from China and other Asian states.
The modern city was officially founded on June 24, 1571, by the Spanish conquistador Miguel López de Legazpi. The Spaniards conquered and rebuilt the existing settlement, establishing the new capital of the Spanish East Indies on its site, which became a stronghold of their influence in Asia.
Three main factors contributed to the rapid growth and rise of Manila:
- Geographical Location: Its location in the natural harbor of Manila Bay and at the mouth of the navigable Pasig River made the city an ideal port and a strategic point for controlling the archipelago.
- Trade: For 250 years, Manila was the central hub of the trans-Pacific Manila Galleon trade, which operated between Asia and Acapulco in Mexico. This route connected Asia with the Americas and Europe, allowing the exchange of Asian goods, such as silk and spices, for silver from the New World.
- Political Power: Becoming the colonial capital, Manila transformed into Spain's main administrative, military, and religious center in the region. The heart of the city became the powerful stone fort Intramuros ("within the walls"), which protected the Spanish population and government institutions.
Early Manila was a true melting pot where Malay, Chinese, and Spanish cultures met. The Spaniards brought Catholicism to the islands, which quickly became the dominant religion and a key part of Filipino identity. Numerous churches, monasteries, and schools were built, and the city itself became an important educational center in Asia with the founding of the University of Santo Tomas in 1611.
The city's economy was almost entirely focused on the lucrative galleon trade, which contributed to the formation of a wealthy merchant class. Bustling commercial districts emerged outside the walls of Intramuros, the most famous of which became Binondo — the world's oldest Chinatown, which remains an important commercial center to this day.