Figure 1.--This AI crearion illustrates a 19th century Mexican campesino peasant farmer family during the Spanish colonial era. It illistrats a land-owning peasant family with a small holding. In Mexico the trm for a small holding was 'Ma href="/country/other/mex/pho/mex-pho.html">rancho. In nirthern Mexico, the holdings were lrger and often focused on live stock. (It was the oeigin of the American term ranch.) Larger holdings were estancias or haciendas. There were land-owning peasant farmers like this in colonial Mexico and other Spanish American colonies. The tragedy for the future of the region was that there were not very many of them. Only about 5-10 percent of the land was in the hands of the people who actually worked it. Click on the imade here to see a hacienda scene. Most of the land was owned by a small number of very rich famlies who establish huge haciends worked by a landless peasantry. This inequatable social stucture was at the heart of the Mexican Revolution which erupted sith unprecedented violence (1910). And it is the primary reason that English North America developed so differenly. There was widespreas land ownership before the American Revolution (1776-83). Comgress immediately after independence ensacted the Northwest Ordinance (1787) which rserved the Western land for family plots. At the time America only extended to the Mississippli River, but it would mean essentialy that an entire continent was turned over to land-owning farmers and provided for the creation of a public school system for their children. No other great powet hasever adopted such a system. et alone sevote an ebtire cintinent to it. The result would the creation of a superpower that would promote both political and economic freedom and destroy the brutal, oppressive totalitarian regimes of the 20th century.

The Americas were not empty when Columbus arrived (1492). but the diseases introduced within a century would depopulate large areas. And the civilizations that existed did not have the technology of resisting the European invasion. The Europeans had been fighting each other for centuries, often major wars over small provinces like Alsace, Bosnia, Lombardy, Sicily, or. Silesia. Suddenly two huge continents were discovered with vast resources. The result of the colonization effort cold impact the European balance of power. Four countries made a major effort: England, France, Portugal, and Spain. The initial colonization effort was primarily made by Spain (16th-17th centuries). Other countries expanded colonization efforts. The French who claimed large areas lost most of their lightly settled claims as a result of the British victory in the French and Indian War (1754-63). With only a few small exceptions, independence movements n the colonies created in dependent republics (1783-1824). This opened up English/ British control of North America. Somehow Portugal managed to obtain possession of half of South America--Brazil. Spain lost interest in the Spanish Main (Caribbean), but built an empire on the mainland with the other half of South America and Central America where gold was found. The Spanish held claim to large areas of North America, but did not settle the area north of Mexico. The impact of English, Portuguese, and Spanish rule in the Americas was drastically different. And much of the difference resulted from the culture these counties enplaned during the colonial era. Most of the area gained independence (1783-1824). The polices pursued by the various independent republics are important (actually not dissimilar), but it is the nature of the colonial culture that led to a massive imbalance that we see today--especially the Encomienda and Repartimiento. The British in North America created a super power which largely determined the outcome of the 20th century in which the great totalitarian powers were defeated by liberal democracies led by the United States. The former Portuguese and Spanish colonies (Latin America) essentially sat out the World Wars in which the future of the world was determined. And during the Cold War, much of the population favored Soviet Communism. In addition, the United States has generated technologies that have remade the modern world. Latin America has created weak economies producing with low living standards and little in the way of new technologies and with large numbers of people desiring to emigrate to El Norte. Latin America had not generated a single world-class university.

European Colonizationm

The Americas were not empty when Columbus arrived (1492). but the diseases introduced within a century would depopulate large areas. And the civilizations that existed did not have the technology of resisting the European invasion. The Europeans had been fighting each other for centuries, often major wars over small provinces like Alsace, Bosnia, Lombardy, Sicily, or. Silesia. Suddenly two huge continents were discovered with vast resources. The result of the colonization effort cold impact the European balance of power. Four countries made a major effort: England, France, Portugal, and Spain. The initial colonization effort was primarily made by Spain (16th-17th centuries). Other countries expanded colonization efforts. The French who claimed large areas lost most of their lightly settled claims as a result of the British victory in the French and Indian War (1754-63). With only a few small exceptions, independence movements in the colonies created in dependent republics (1783-1824). This opened up English/ British control of North America. Somehow Portugal managed to obtain possession of half of South America--Brazil. Spain lost interest in the Spanish Main (Caribbean), but built an empire on the mainland with the other half of South America and Central America where gold was found. The Spanish held claim to large areas of North America, but did not settle the area north of Mexico. The impact of English, Portuguese, and Spanish rule in the Americas was drastically different. And much of the difference resulted from the culture these counties enplaned during the colonial era. Most of the area gained independence (1783-1824). The polices pursued by the various independent republics are important (actually not dissimilar), but it is the nature of the colonial culture that led to a massive imbalance that we see today--especially the Encomienda and Repartimiento.

Spain

The initial colonization effort was primarily made by Spain (16th-17th centuries). Other counties failed to establish permanent colonies, all in North America beyond Spanish control. Spain lost interest in the Spanish Main (Caribbean), but built an empire on the mainland with the other half of South America and Central America where gold was found. The Spanish held claim to large areas of North America from Chile north to Mexico. They did not settle the area north of modern Mexico, in part because of the resistance of Native American tribes like he Comanche. Spanish control of the mainland was at first driven by gold and silver. Huge gold hordes resulted from the fall of the major pre-Colombian Indo-American indian empires. Rival European countries were cut off from this, except when they began raiding Spanish treasure fleets carry the bullion and other riches back to Spain. Gold was a limited part of the bullion fell. here were important silver mines in Mexico, but then the Spanish found a mountain of virtually pure silver--Cero Rico at Potosí in Upper Peru (1545). Much of which would be used to fund the European wars of religion (17th century) and Manila Galleon Trade. The Crown was afraid that the Conquistadores might declare independence, but managed to retain tight control Jews and Protestants were kept out. Spain attempted to recreate Spanish society in its colonies, converting the Amer-indio population into medieval landless serfs (campesinos). The land was granted to a small number of Spanish families through the Encomienda and Repartimiento. Governing he colonies was conducted by officials appointed by the crown. here were no locally elected officials. The Crown tended to be wary of Criollos, preferring Peninsulares. Law were declared to make sure that the colonies were restricted to agricultural and mining activities, Manufacturing was restricted to Spain. Education as in Spain was very weak with high levels of literacy. Because Spain had little interest in the Caribbean, other European powers began founding colonies there. And Spain did not participate in the Ma href="/act/work/slave/am/sa-csi.html">sugar bonanza that turned small Caribbean islands into the most valuable possessions (18th century).

France

Other countries expanded colonization efforts. The French claimed large areas of North America including Canada, the Ohio and Mississippi Basin. The Ohio Basin claims conflicted with the English claims. Fir st met bu colonial militia Col. George Washington. The French claims were, however, not followed by significan settlement. France lost most of their lightly settled claims as a result of the British victory in the French and Indian War (1754-63). The French gave up Canada and Louisiana (land west of the Mississippi) in order to retain their Caribbean sugar islands. This opened up English/ British control of North America. Spain lost interest in the Spanish Main (Caribbean), but built an empire on the mainland with the other half of South America and Central America where gold was found. France established several colonies in the Caribbean. The most important was St. Dominique (modern Haiti). It was by far the most valuable Caribbean sugar colony. It was lost during the French Revolution when the slaves revolted (1791). Napoleon tried to reconquer it, but the French army was devastated by tropical diseases. The Spanish held claim to large areas of North America, but did not settle the area north of Mexico. They would briefly hold Louisiana until Napoleon seized it back before selling it to the Americans (1803).

England/Britain

England founded 13 colonies along the Atlantic coast of North America as well as colonies in the Caribbean which became important sugar producers. The British had basically the same intentions as the Spanish. They wanted gold and intended to implant the existing English social structure. This did no go well. English indentured servants in Virginia simply went west after her term of indenture was filled often before then. This was beyond the land grants to nobles like Lord Fairfax. In Massachusetts things went even worse. Religious dissescenters sneaked out of Plymouth and set up a colony King James had not authorized . And the colonies did something that the Crown had also not intended. They established legislatures -- small versions of the West Minister Parliament. Even worse for the Crown, the Civil War broke out in England (1642-51). This mean that the Crown concern with the colonies ended for a decade. The Commonwealth that followed also had little interest in the colonies (1649-60). Basically the colonies were left alone to establish themselves. During the Restoration the primary concern became domestic politics and the Protestant succession, finally settled by the Glorious Revolution (1688). By the time that he Georgian Succession took hold and the Crown became more interested the colonies, the tradition of local legislatures in each colony and participation in Government had taken hold. Something the Spanish Crown had diligently suppressed. There were other major differences. First, the idea of individual land ownership rather than large landed estates was well established. And because of the Protestant foundation, literacy and the beginning of public education was also part of he social structure of the English colonies. The Crown and Parliament attempted to restrict manufacturing, but in part because of the colonial legislatures with far less impact laying to the foundation for the American Industrial Revolution. The leakage of technology from England was important from an early point. The defeat of France in the French and Indian War, opened up English/British control of North America. But it would the English colonists that would benefit, not the British crown. The American after 1783 would take those advantages to new heights: 10 local participation in government, 2) small-scale family land ownership, and 3) public education.

Independent Republics (1806-24)

The Latin American Wars of Independence began after the political winds of the American and French Revolution began to spread over the Coninent. And The Napoleonic take over of Spain weakened that country's ability to maintain its empire. With only a few small exceptions, independence movements in the colonies created independent republics (1806-24). The major exception was Brazil. The Liberal Revolution of 1820 in Portugal caused King John VI to return to Lisbon to maintain the monarchy. John decided to leave his son Pedro as prince regent in Brazil. Prince Pedro declared independence, but as an imperial monarchy (1822). Prince Pedro of Braganza (who would be Emperor Pedro I). The declaration became known as the Cry of Ipiranga, enacted atthe Ipiranga brook in São Paulo. There was some resistance in the northern provinces, but the Portuguese forces surrendered (1823). This was the official separation of what would be the Empire of Brazil from the United Kingdom of Portugal, Brazil, and the Algarves. There were political tensions and a popular desire to maintain the country's autonomy after the royal family returned home to Lisbon. Brazil remained the only monarchy in the Americas for decades. A republic was finally declared (1889). This of course is a major exception given that Brazil is half of South America in area and population. The indepebden republics formed from the Spanish Empire all acted to end slaveryy, but developed programs to improve the material position of theslave, but more importantly because the idio-peasantry was a nuch larger percentage of the population, did not to provide land to the peaantry to improve their material condition. This would finally explode with the Mexican Revolution (1910), the first of the great revolutions of the 20th century. Cuba was the last Spanish colony to achieve independence (1898), as a ewesult of the vSpamish-American War. The polices pursued by the various independent republics are important (actually not dissimilar), but it is the nature of the colonial culture that led to a massive imbalance that we see today--especially the Encomienda and Repartimiento.

The Differences

The British in North America created a super power which largely determined the outcome of the 20th century in which the great totalitarian powers were defeated by liberal democracies led by the United States. The former Portuguese and Spanish colonies (Latin America) essentially sat out the World Wars in which the future of the world was determined. And during the Cold War, much of the population favored Soviet Communism. In addition, the United States has generated technologies that have remade the modern world. Latin America has created weak economies producing with low living standards and little in the way of new technologies and with large numbers of people desiring to emigrate to El Norte. Latin America had not generated a single world-class university. We don't see Nobel Prize winners in thecsciences while the UnitedStates dominated the dield, but un poersonal lives the to differences in personal income is glaring. The UnitedStates percapital income is about $94,000. Uruguay has a per capita income of $27,600. The other Latin American countries are $20,000 or much lower, in several cases half of that of Uryguay. (A few small Caribbean islands have per capita income higher than Uruguay.) 【IMF】 And the sutuation is not improving. First vecause ofvthe turmoilmandvlack nof the rule of low in tghe region (19th century). And then the coysive impavr of sicialit policies. Today Mexico is making peigress, but the future of the region is in doiubr. Before World War II, some of the Latin Anerican countries had economies stronger than Asian countries/colonies. Today because of Aian Tiger economies, several Asian counries have income levels aproaching or exceeding Europen levels. And there are no Tiger Economies in Latin America. The result is that millions of Latin Ameeicans want nothing more than to reach to El Norte as we saw when President Biden opened the border (2021).

Causes of the Differences

Many factors explain this dichotomy. But one factor that stands out among all others is land ownership patterns. Several Spanish readers tell us that this is incorrect because the Encomienda was only in place for a short period (1503-12), but was not reversed was the land ownership patterns set in motion by the Encomienda. We note strong objection to this thesis from Spanish readers who insist that the regional problems were primarily due to he various independent republics that appeared in the early-19th century. Thus was patently false. Notice how many of the same issues appear in metropolitan Spain and Portugal leading to the Iberian countries becoming European backwaters over the same period. We also note that the Marxist influence in American universities want to blame the differences on exploitative policies of the United States. During the 1970s-90s i worked with the National Oceanographic and Atmospheric Administration (NOAA) and assigned to following fishing industries in Latin America. During that period, I hired graduate students from the various universities in Washington, D.C.as in While interviewing the students pursuing Latin American studies one of the questions I always asked was why Latin America was not as prosperous as North America. A very high percentage of the responses was 'American exploitation'. Now these were very bright and well educated young people. Yest they cane up with an answer that had no basis in reality. First of all these differences was manifest before the United States was industrialized. We see that in the Mexican-American War (1846-48. And we note the differences in countries throughout Latin America. Second, the differences are very similar throughout the region. Which suggests that their common colonial experience was a factor. Third, the United States did not exist until 1783. And United States had a small economy with almost no impact on other countries, including Latin America. This did not begin to change until after the Civil War (1861-65). Any study of Latin America shows no sudden adverse change dating to the rise of the United States. Fourth, the Latin America problems are very similar in the various countries. This includes counties that had some contact with the United Sates as well as those that had virtually no impact. Fifth, common historical problems in the region include a landless peasantry, limited public education, tendency toward, caudillismo, single commodity economies, and corruption. These are all problems unrelated to American influence. Surely Mexico is the country most impacted by he United States. Yet Mexican history, economy, and society follows the general Latin American pattern rather than showing any special path, despite the Mexican complaint commonly attributed to President Potfirio Díaz--"Pobre México, tan lejos de Dios y tan cerca de Estados Unidos." Actually, today Mexico is perhaps the most successful Latin America country, primarily because of its growing connection with he United States.

Sources

International Monetary Fund (IMF). We have used IMF data, but other sources such as the World Bank and United Nations provide comparable data. See the Wiki Per Capita Income page for actual country data. Note the diffeebce is also apparaent, but not quite so glaring, using PPP data, a system invented by European econmnists to try to hide the accelerating decline of European welfare ecomomies.

Created: 6:23 AM 9/7/2026
Last updated: 7:01 PM 9/11/2026