Before the arrival of the Spanish conquistadores there existed a thriving community on the banks of the Pasig River know as Maynilad. It wa named after the nilad plant whose star-shaped flowers clustered in abundance along the low-lying river banks.
The lord of this kingdom was Raha Sulayman. Sulayman held his court on the south side of the river while his uncle, Lakandula, ruled on the north side. Over time the Spaniards became set on conquering this community. Finally, in the savage Battle of Bangkusay, the conquistadors overtook the natives with awesome firepower. Sulayman was killed.
Knowing this new land’s strategic position as both trading center and military outpost, Miguel Lopez de Legaspi, the leader of the Spanish expedition, declared Manila the capital of the new colonies won by Spain.
Manila was declared the capital on June 24, 1571. The King of Spain awarded the city a coat of arms and extravagantly named Manila: "The Noble and Ever Loyal City". Manila eventually became a replica of a European medieval city. There were churches, palaces and city halls built in the Spanish baroque style. Work began on building a wall around the city to keep the pirates and Moros at bay. After 150 years of working on this wall, the result was an astounding eight foot-thick, three mile-long wall, complete with two forts and a bastion. There were also 370 guns in place, manned by a force of 5,000 men and 10,000 reserves. This walled city became known as Intramuros.
Beautiful as it was, Intramuros stood as a perfect illustration of the discrimination at that time against the natives called Indios. Although it was built by Indio workers and Chinese artisans, Intramuros was meant only for the clergy and the Spanish nobility. The natives could not enter except to work as servants. Outside the walls, in the arabales or suburbs, lived the Jndios, the Chinese and other foreigners. The diversity of trade and culture in the suburbs made it alive and interesting. Tondo, Binondo, Sta. Cruz and Quiapo bustled with commerce. These places were home to the merchants, carpenters, blacksmiths, carriage makers, masons and other artisans.
Over the centuries, the Spanish rule was occasionally threatened by attacks from the sea and by internal uprisings. The Chinese, Dutch, and British all tried to lay siege on Manila but were unsuccessful. But the 1880's saw the birth of a reform movement led by Marcelo H. Del Pilar, Lopez Jaena and Jose Rizal (the national hero). This reform movement ultimately led to a revolution and by 1898, the days of the Castilian rule were numbered. The most lasting legacy of the Spanish rule was the Catholic religion which makes the Philippines the only Christian nation in Asia.
But as soon as the Spaniards left, the Americans took over. 1902 was the beginning of the American era, a period characterized by the expansion of public education, advances in health care and the introduction of democratic government. The outbreak of war in the Pacific in 1941 disrupted American rule. Manila was declared an open city and the Americans withdrew their defenses. For three years, Manila was occupied by the Japanese imperial forces. Life at that time was made difficult by strict Japanese military rule. When the American troops entered Manila to liberate it, they had to bomb the city to dislodge the tenacious Japanese. Manila was devastated.
On July 4, 1946, a year after the end of the war, the Philippine flag was hoisted signaling the recognition of Philippine independence.
Sources
http://www.sino.net/philippines-tourist-guides/
http://www.cia.gov/cia/publications/factbook/geos/rp.html
http://www.gov.ph/aboutphil/general.asp