Latin America and North America: Differential Development--Failure in Latin America

Latin America indigenous populatiom
Figure 1.--Historians believe that something like 95 percent of the pre-Colombian Native American population perished within little more than a year of Columbus's arrival in the New World. The Spanish were brutal, but the major killer was microscopic germs that neither the Spanish or the natives knew about. In fact no one would know about germs for nearly four more centuries. The Spanish would continue to exploit the Native Amerucans into the modern times. This meant ght a substantial part bof the population of many countries were outside the country's siociry, economy, culture, nd modern life. Many did not even speak Spanish. Here we see a woman weaving with a back strap loom Guatemals was one of the countries with a large native American population. It is just an example of the failure of Latin American countries to develop and use its human capital.

The question is why have Latin Americans not made the transition to modern industrial socities as have North Americans, Europeans, and now some Asian countries. There were problems from the very beginning after the wars f ndeoendence (1810s-20s). Unlike North America, there was no experience with self government during the long colonial era (16th-18th centuries). The colonies were ruled from Toledo/Madrid or Lisbon by Spanish/Portuhuese officials appointed by the Crown. Out of fear of losing cintrol, criollos were rarely appointed. The countries in the regin began to fail long before the United Sates was a country of any importance. There has been a notable lack of self interspection from Latin Amrican authors. The dominant theme for many years was a Marxist interpretation, that capitalist Europe and North America have exploited Latin American people and prevented development. An it was not just promoted by Soviet propaganda, but we see it being put forward by the predominately left-wing professors in Ametican universities. This has been a popular theme as Latin Americans could avoid responsibility for their failure. Even a minimal assessjent of the historical record, however, refutes Marist explanations. Argentina which came the closest to developing a modern economy after World War II clearly failed because of the populist policies of Colonel Juan Peron and not evil foreign capitalists. And Cuba which separated itself from ties with the United States did not as a result prosper, but rather became the poorest country in the hemisphere. Not only does the Marrxist interpretaion of merican exploitation not work, but socialism itself has been shown to be a flawed economic system. Just looking at how China failed until it turned to capitalism shows how badly socialism has failed and the power of capitlism to generate wealth and growth. The Asian Tigers, India, and other countries have repeated this process. The problem is that socialism has been widely acceoted theoughout Laton America. Nothing could demonstrate this more thn the gact that thain opposition prtties in Venezuela are socialist parties. But even non-Marxist authors in Latin America have not shown great interspection. One would have thought that former Mexican President from the free market PAN Party would be an expert on this subject. But in his book, Revolution of Hope, he not only denies Mexico's failure, but attributes it primarily to corruption. While we do not dismiss this as factor, it is a very simplistic view of a very complex problem. Another factor is the legal system. Both anada and the United States have benefitted from English common law, a legal system hich gve rise to modenity--both economic (capitalism) and politicl (democracy) freedom. A major problem is that throughout the colonial era, large segments of the populatiin were repressed, both Natuve Americans and the ethnic African population, but even today the countries in the region are not investing in their human capital. None of the countries have educational systems on a part with North America and Europe. Some countries in the region have limited naturl resources, but even those thar have important resources have not been suucessful. Venezuela has one of the largest oil reserves in the world. How a country with huge oil resources can fail in a mind numbing question. Another major problen has been economic and political instability. After the wars of indeopendence, Latin Aericaan countries became notorious for revolutions, coups, and short-lived governments. In various countries there were either depotic caudillos or systems in which was an unuual occurence or an elected opresudent to serve out his term of office.

Spanish Colonial Policy


Conquistadores

The Spanish and Portuguese Conquistadores came to the New World seeking conquest and gold so they could return home rich men. The Spanish debated the humanity of Native Americans, but eventually concluded they were men and thus wrong to enslave. When the gold run out, wealth lay in land. But the land had no value wihout workers. The Spanish solution was the encomienda, esentually a fedudal fiefdom. And the native Americans became medieval serfs tied to the land. The Conquistadiores did not want to do the hard work of farming, they saw manual labor as demeaninhg, but they wanted the wealth created by their Native American huasipungeros. Comoares this to the pilgtom founders of New Enland. They were willing to do the farming. There goal was to create a new pure society where they could persue their religiin unmolested by the established church. And they saw physical labor not as demeaning, but a part of Giod's plan.

Experience at Governing

There were problems from the very beginning after the wars of indeoendence (1810s-20s). Unlike North America, there was no experience with self government during the long colonial era (16th-18th centuries). The colonies were ruled from Toledo/Madrid or Lisbon by Spanish/Portuhuese officials appointed by the Crown. Out of fear of losing control, criollos were rarely appointed.

Inquisition


United States Exploitation

The countries in the regin began to fail long before the United Sates was a country of any importance. There has been a notable lack of self interspection from Latin Amrican authors. The dominant theme for many years was a Marxist interpretation, that capitalist Europe and North America have exploited Latin American people and prevented development. An it was not just promoted by Soviet propaganda, but we see it being put forward by the predominately left-wing professors in Ametican universities. This has been a popular theme as Latin Americans could avoid responsibility for their failure. Even a minimal assessjent of the historical record, however, refutes Marist explanations. Argentina which came the closest to developing a modern economy after World War II clearly failed because of the populist policies of Colonel Juan Peron and not evil foreign capitalists. And Cuba which separated itself from ties with the United States did not as a result prosper, but rather became the poorest country in the hemisphere.

Socialism

Not only does the Marrxist interpretaion of American exploitation not work, but socialism itself has been shown to be a flawed economic system. Just looking at how China failed until it turned to capitalism shows how badly socialism has failed and the power of capitlism to generate wealth and growth. The Asian Tigers, India, and other countries have repeated this process. The problem is that socialism has been widely acceoted theoughout Laton America. Nothing could demonstrate this more thn the gact that thain opposition prtties in Venezuela are socialist parties.

No Support for Capitalism

But even non-Marxist authors in Latin America have not shown great interspection. One would have thought that former Mexican President from the free market PAN Party would be an expert on this subject. But in his book, Revolution of Hope, he not only denies Mexico's failure, but attributes it primarily to corruption. While we do not dismiss this as factor, it is a very simplistic view of a very complex problem. And it is notable ghat Fox does not make the case for capitalis, We are not saying that Fox is stupid and dies not undertabd the importanbce of capitalism. He understands that the Mexican electorate does not believe in capitalism. They do believe in socialism. So he has to stress the coruption angle because voters do believe that politicians are corupt. There has never been anything like the American Tea Party in Mexico or anywhere else in Latin America.

Corruption


English Common Law

Another factor is the legal system. Both Canada and the United States have benefitted from English common law, a legal system hich gave rise to modenity--both economic (capitalism) and politicl (democracy) freedom.

Ethnic Repression

A major problem is that throughout the colonial era, large segments of the populatiin were repressed, both Native Americans and the ethnic African population. THis did not nd with independence.

Developing Human Capital

Even today the countries in the region are not investing in their human capital. None of the countries have educational systems on a part with North America and Europe.

Resources

Some countries in the region have limited naturl resources, but even those thar have important resources have not been successful. Venezuela has one of the largest oil reserves in the world. How a country with huge oil resources can fail in a mind numbing question. Latin Americans tend to put a greater emphasis on resourcs than nany other countries. One is tempted to attribute this to the Conquistador origins, but we suspect this is more of a socilist mentality, concinced that capitalist countries are determined to exploit natural resources. As a result, modern Bolivia is boy developing its valuable lithium resource. They do not have the technical ability ti do so and are unwilling to negotiate an arrangement with the foreign companies tht have the capacity. There seems to be a general unawarness that a country's most important resource is its human capital. Countries like Hong Kong, Israel, Japan, Korea (South), the Netherlands, Singapore, Taiwan, and other countries to develop very prosperous countru=ies with little or no natural resources.

Instability

Another major problen has been economic and political instability. After the wars of independence, Latin Aericaan countries became notorious for revolutions, coups, and short-lived governments. In various countries there were either despotic caudillos or systems in which was an unuual occurence or an elected opresudent to serve out his term of office.

Sources

Fox, Vicente. Revolution of Hope (2007).









CIH






Navigate the Children in History Website:
[Return to the Main Latin American/North American history page]
[Return to the Main national Latin American history page]
[Return to the Main national history page]
[Return to the Main history page]
[About Us]
[Introduction] [Biographies] [Chronology] [Climatology] [Clothing] [Disease and Health] [Economics] [Freedom] [Geography] [History] [Human Nature] [Ideology] [Law]
[Nationalism] [Presidents] [Religion] [Royalty] [Science] [Social Class]
[Bibliographies] [Contributions] [FAQs] [Glossaries] [Images] [Links] [Registration] [Tools]
[Children in History Home]





Created: 10:07 PM 10/1/2018
Last updated: 10:07 PM 10/1/2018