The wars for independence had themselves resulted in a
staggering loss of population, property, and livestock. At
the same time, disputes arose between nations over their
precise boundaries.
Political Difficulties The n ew nations of Latin Amer-
ica established republican governments, but they had
had no experience in rulin g themselves. Due to the in-
securities prevalent after independence, strong leaders
known as caudillos came to power. National caudillos
were generally one of two types. One group, who sup-
ported the e lites, consisted of autocrats who controlled
(and often abused) state revenues, centralized power,
and kept th e new national st ates together. Sometimes
they were also modernizers who built roads and canals ,
ports, and schools. The se caudillos were usually sup-
ported by the Catholic church, the rural aristocracy, and
the army, which emerged from the wars of independence
as a powerful political force that ofte n mad e an d de-
posed governments. Many caudi llos, in fact, were former
army leaders.
In contrast, other caudillos were supported by the
masses, became extremely popular, and served as instru-
ments for radical change. Juan Manuel de Rosas, for ex-
ample, who led Argentina from 1829 to 1852, became very
popular by favoring Argentine interests against foreigners.
Economic Patterns Although political independence
brought economic independence, old patterns were
quickly reestablished. Instead of Spain and Portugal,
Great Britain now dominated the Latin American econ-
omy. Old trade patterns soon reemerged. Since Latin
America served as a source of raw materials and food-
stuffs for the industrializing nations of Europe and the
United States, exports---especially wheat, tobacco, wool,
sugar, coffee, and hides---to the North Atlantic countries
increased noticeably. At the same time, finished consumer
goods, especially textiles, were imported in increasing
quantities, causing a decline in industrial production in
Latin America.
Social Conditions A fundamental underly ing problem
for all of the new Latin American nations was the
persistent domination of societ y by the landed elites.
Large estates remained an impor tant aspect of Latin
America’s economic and social life. After independence,
the size of these estates expanded even more. By 1848,
the S
anchez Navarro family in Mexico owned seventeen
haciendas (plantations) covering 16 million acres.
Estates were often so large that they could not be
farmed efficiently. As one Latin American newspaper
put it, ‘‘ The huge fortunes have the unfor tunate ten-
dency to grow even larger, and their owners possess vast
tracts of land, which lie fallow and abandoned. Their
greed for land does not equal their abilit y to use it
intelligently and actively.’’
4
Land remained the basis of wealth, social prestige,
and political power throughout the nineteenth century.
The Latin American elites tended to identify with Eu-
ropean standards of progress, which worked to their
benefit, while the masses gained little. Landed elites ran
governments, controlled courts, and maintained the
system of debt peonage that provided large landowners
with a supply of cheap labor. These landowners made
enormous profits by concentrating on specialized crops
for expor t, such as coffee, while the masses, left w ithout
land to grow basic food crops, lived in dire poverty.
Tradition and Change in the Latin American
Economy and Society
After 1870, Latin America began to experience an era of
rapid economic growth based to a large extent on the
export of a few basic items, such as wheat and beef from
Argentina, coffee from Brazil, nitrates from Chile, coffee
and bananas from Central America, and sugar and silver
from Peru. These foodstuffs and raw materials were ex-
changed for finished goods---textiles, machines, and lux-
ury goods---from Europe and the United States. Despite
their economic growth, Latin American nations remained
economic colonies of Western nations.
Old patterns also still largely prevailed in society.
Rural elites dominated their estates and their workers.
Although slavery was abolished by 1888, former slaves
and their descendants were at the bottom of their society.
The Indians remained poverty-stricken.
One result of the new prosperity that came from
increased exports was growth in the middle sectors of
Latin American society---lawyers, merchants, shop-
keepers, businesspeople , schoolteachers, professors, bu-
reaucrats, and military officers. These middle sec tors,
which made up only 5 to 10 percent of the population,
depending on the country, were hardly large enough in
numbers to constitute a true middle class. Nevertheless,
after 1900, the middle sectors continued to expa nd.
They lived in the cities, so ught education and de cent
incomes, and increasingly saw the United States as the
model to emulate, especially in regard to industriali za-
tion and education.
As Latin American export economies boomed, the
working class expanded, which in turn led to the growth
of labor unions, especially after 1914. Radical unions often
advocated the use of the general strike as an instrument
for change. By and large, however, the governing elites
succeeded in stifling the political influence of the working
class by restricting workers’ right to vote.
LATIN AME RICA IN THE NINETEENTH AND EARLY TWENTIETH CENTURIES 495