Latin America: Problems and Promise - Comprehensive Study Notes

1. Colonial Legacies

• **Spanish and Portuguese Rule (1492

–1820s):**
- Established extractive economies, focusing on commodities like silver in Mexico and Peru, and sugar in Brazil and the Caribbean.
- The encomienda and hacienda systems led to significant land concentration in the hands of colonial elites.
- Instituted rigid racial hierarchies: Europeans occupied the top, while Indigenous peoples and Africans were relegated to the bottom.

• Impact on Development:

  • Created entrenched long-lasting inequality and a dependency on commodity exports.

  • Political institutions were designed primarily to serve the interests of colonial elites, not the majority population.

2. Independence and Nation-Building (Early 19^{th} Century)

• Creole Elites: Descendants of Europeans born in the Americas, these groups spearheaded the independence revolutions.

• Outcome: Achieved political independence, but the underlying social and economic structures largely retained their colonial characteristics.

• Marginalization: Indigenous and Afro-descendant populations continued to face marginalization and exclusion.

3. Economic Patterns After Independence

• Export Economies:

  • Latin American economies became heavily reliant on the export of raw materials and agricultural products such as coffee, sugar, copper, silver, nitrates, beef, and wheat.

  • Integration into the global economy primarily served to reinforce economic dependency on world markets.

• Boom-and-Bust Cycles:

  • Volatility in commodity prices drove economic instability.

  • Examples include the guano boom in Peru and the rubber boom in Brazil, which led to temporary prosperity followed by economic decline.

• Foreign Influence:

  • Britain was the dominant foreign investor in the 19^{th} century, financing infrastructure like railroads, banking, and mining operations.

  • British influence was later supplanted by the United States, particularly after the 1898 Spanish-American War.

4. Political Instability

• Caudillismo: Characterized by personalist, authoritarian rule exercised by local strongmen known as caudillos.

  • This led to frequent coups, weak state institutions, and significant regional fragmentation.

  • Notable examples include Santa Anna in Mexico and Juan Manuel de Rosas in Argentina.

• Liberal vs. Conservative Conflicts:

  • Liberals advocated for policies such as free trade, secularization of society, and land reform.

  • Conservatives typically defended the privileges of the Catholic Church, maintained social hierarchies, and protected the interests of landed elites.

5. Social Structure and Inequality

• Land Concentration:

  • Large estates, known as latifundia, formed the dominant feature of rural life.

  • Peasants and Indigenous communities were frequently dispossessed of their communal lands.

• Race and Class:

  • Social mobility was severely restricted, and a concept of racial and class hierarchies remained deeply ingrained and influential in society.