Government 1295 Lecture Notes - Lecture 3: Ethnic Cleansing, Dependency Theory, Making Money
18 Jun 2018
School
Department
Course
Professor
For$sectioning:$Alice$Xu$(alicexu@g.harvard.edu)
Dependency$theory$of$why$LA$is$different:$colonialism,$except$US$was$also$a$colony$
and$was$able$to$escape$periphery$and$establish$democracy
Problem$with$Spain$wasn't$culture$but$form$of$rule$(historical$institutionalist$
account$of$LA$problems)
•
"ENGLISH$PEOPLE$MOVING$TO$AMERICA$TO$ENRICH$THEMSELVES$IN$
AMERICA"
○
Less$intermarriage
§
Settlers$brought$families,$so$males$were$less$likely$to$seek$out$indigenous$
partners
○
!"#$%&#'%#()*%+&'%,-&%.()./)$#(*),!0#-+!)+!&&$!'+) &1#&)0#2!)
(!!*!*)&.)3'.4%*!)/.')&1!2+!$4!+)+.)&1!5)+&#'&!*)/#'2%("
○
Imported$structures$from$england
§
Because$settlers$intended$on$making$money$in$North$America$rather$than$
take$riches$back$home,$they$had$to$establish$institutions$like$property$
rights$and$the$building$of$institutions$of$self$government$-->$they$planned$
on$living$there$and$raising$families$so$they$cared$about$community,$
governance,$etc
○
Ethnic$cleansing:$physical$expulsion$of$indigenous$people$
from$what$would$become$the$United$States
□
So$through$the$decades$indigenous$people$in$the$region$were$
forced$from$European$settlements$-->$MASSIVE$!&1(%0)0$!#(+%("
§
Settlers$wanted$nothing$to$do$with$indigenous$people
○
AMERICA$WAS$A$SETTLER$COLONY$-->$BRITS$CAME$TO$SETTLE$AND$ESTABLISH$A$
LIFE$HERE,$NOT$TO$EXTRACT$RICHES$AND$SEND$THEM$TO$ENGLAND
•
For$the$most$part,$Americans$left$to$themselves$politically$and$
economically
○
No$big$colonial$bureaucracy,$no$big$British$military$presence
○
Americans$allowed$to$establish$own$state$legislatures$(allowed$to$govern$
themselves$even$under$colonial$rule)
○
British$regulated$colonial$trading$with$other$European$powers,$but$
generally$encouraged$free$trade
○
……$stimulated$production,$commerce,$and$eventually$/.+&!'!*)
6789:;<6=>6?=;6@7
○
British$rule$in$the$US
•
Early$19th$century$-- US$mainly$a$nation$of$small$farmers
§
Also$Native$Americans$and$slaves
§
Slaves$were$imported
§
Left$behind$relatively$egalitarian$ social$structure$(far$more$egalitarian$
than$anywhere$in$LA)
○
Bases$for$Capitalist$development
§
US$first$non-European$industrializers$in$the$world
○
#AB<6C=7:)D=8)=><B=8E)B:;=F>6:DB8)67:;6;9;6@7:)@G):B>GHI@JB<7=7CB
§
Independence$didn't$change$much$-- Americans$had$pretty$much$
been$governing$themselves$for$some$time
§
British$left$behind$functioning$state
○
Settler$Colonialism•
Maybe$spanish$colonialism$-->$culture
DISTRIBUTION$OF$LAND$$and$wealth$AMONG$WHITES$IN$AMERICA$WAS$FAR$MORE$
EGALITARIAN$THAN$ANYWHERE$IN$LA.$ALSO,$SLAVES$WERE$IMPORTED$-->$SLAVERY$
BECAME$THE$PRINCIPLE$LONG$TERM$SOURCE$OF$INEQUALITY$IN$THE$UNITED$STATES
2#%()".#$)K#+)&.)!L&'#0&)'%01!+)/.')&1!)+3#(%+1)+&#&!
○
0.$.(%#$%+2)/.')&1!)3-'3.+!)./)!L&'#0&%.()#(*)(.&)
+!&&$!2!(&
○
(.&)#),.&&.2)-3)3'.0!++)K1!'!)+!&&$!'+)+!!M!*)&.)2#M!)#)(!K)
$%/!)/.')&1!2)#(*)&1!%')/#2%$%!+N)%&)K#+)#)&.3)*.K()3'.0!++)
*%'!0&!*),5)#(*)/.')&1!)+3#(%+1)2.(#'015
○
Spanish$colonialism$was$primarily$mercantilist•
Capitalism$-- to$mine$as$much$gold$and$silver$as$possible$and$send$it$back$to$
Spain
•
Spanish$colonists$did$not$view$America$as$a$possible$home$or$place$for$
opportunity$-- just$a$place$where$they$could$exploit$the$gold/riches$available
•
Vast$majority$were$men$who$left$their$families$behind$in$Spain
○
INSTEAD$THEY$DID$THE$OPPOSITE,$THEY$STAYED$TOGETHER$NEAR$
THE$PORTS$AND$MINES
§
Not$the$same$push$to$settle$on$a$plot$of$land$and$build$a$farm
○
Early$colonizers$mainly$soldiers,$priests,$profiteers•
Property$distributed$from$top$down$by$the$crown
○
Spain's$mercantilist$approach$had$very$different$distribution•
Conquistadors$granted$use$plots$of$land$called$ HACIENDAS)which$granted$them$
control$over$indigenous$populations$who$were$forced$to$live$on$their$land
•
Quickly$became$biggest$land$owners$in$region
○
Members$of$the$Catholic$church$also$granted$huge$plots$of$land•
High$levels$of$concentrated$land$ownership$•
Few$people$were$dedicated$to$making$a$life$off$the$land
○
They$could$take$back$land$if$they$wanted$to
§
Property$rights$remained$a$prerogative$of$the$crown
○
Spaniards$home$was$Spain$-- they$didn't$care$about$building$long$term$
institutions$of$self-government$in$the$US
○
When$the$indigenous$people$were$plagued$by$disease,$they$brought$
in$Africans
§
Wanted$to$exploit$indigenous$people$not$exterminate$them
§
Spaniards$viewed$indigenous$people$around$to$exploit$their$labor
○
Spanish$colonists$approached$institution$building$differently•
Which$meant$that$Spanish$men$were$more$likely$to$search$for$
companionship$among$indigenous
○
Large$rise$of$Mestizos$-- mixed$Spanish/indigenous$groupings$of$people
○
Economically,$the$crown$monopolized$trade□
Sole$trading$partner$for$LA$was$Spain□
Spain$-- hands$on$ruling
§
Brits$-- hands$of$ruling
○
9:1$ratio$for$Spanish$men$to$female•
Under$Spanish$Rule$-- only$trading$partner$was$Spain,$no$free$trade•
Very$little$self-governance$in$LA$because$all$the$appointed$positions$were$
members$of$the$crown
○
Politically$Spanish$crown$ruled$a$centralized$bureaucracy•
State$institutions$remained$very$much$in$Spanish$hands$throughout$Spanish$
colonialism
•
Rather$than$small$farmers,$land$was$highly$concentrated
○
Capitalist$economies$had$to$be$built$from$scratch
○
#>:@)OB=P):;=;B:)HHQ):67CB)@RB<=;B8);D<@9ID)=)CB7;<=>)F9<B=9C<=CE)
○
Army,$judiciary,$taxes
§
Right$up$until$independence,$state$was$almost$entirely$in$State$hands
○
When$the$Spanish$left,$the$state$was$dismantled,$Spanish$packed$up$their$
nation$and$left
○
Spanish$colonialism$left$behind$a$very$unequal$nation$•
Spanish$America
Declined$by$90%
§
Mainly$due$to$disease$brought$over$which$decimated$indigenous$
population
○
Rise$to$Creoles$and$mestizos
§
Number$of$non-indigenous$people$increased
○
Demographic$of$Latin$America$changes$greatly$during$16th$and$17th$century•
Latin$American$Independence
When$Napoleon$overthrows$Spain,$it$results$in$LA$colonial$structures$breaking$down$
and$independence$movements$emerged$to$fill$vacuum
Simon$Bolivar$(venezuela)
○
Defeated$royalists$in$argentina$and$chile
§
Cesar$Martin$(argentina)
○
Few$rebel$leaders$fought$on$•
Ferdinand$regains$thrown$in$Spain,$most$independence$movements$in$LA$fizzle$out
Spain's$last$colonial$holdout$in$the$region•
Peru$
When$napoleon$occupied$Portugal,$the$royal$family$fled$to$brazil$and$the$ruler$
of$Portugal$named$himself$emperor$of$Brazil
•
Later$returned$to$portugal$as$king$and$left$his$son$in$charge$of$brazil•
1822$Don$Pedro$(son)$declares$independence$from$Dad$and$crowned$himself$
emperor
•
Brazil$was$Portuguese$Colony$so$it$followed$a$different$path
Highly$unequal,$white$creoles$dominated$most$of$the$land$and$wealth•
Blacks$and$indigenous$people$denied$basic$rights$and$owned$basically$nothing$
and$couldn't$hold$office
•
Coroners$of$power$were$only$open$to$Creoles$and$Mestizos•
Mexico$and$Venezuela$-- production$fell$by$75%$during$Independence$War•
Trade$with$spain$collapsed,$and$since$trade$was$monopolized$with$spain,$it's$
international$trade$was$completely$cut$off
•
1800-1850:$the$period$in$which$LA$fell$behind$due$to$collapsed$economies$with$
no$recovery
•
States$left$without$state$bureaucracies,$born$weak•
Independence$triggered$state$collapse$in$LA•
1840's$Mexican$state$was$so$weak$that$it$was$dragged$into$a$war$with$the$US$
and$lost$a$huge$portion$of$its$land
•
1850's$and$60's$Venezuela$had$no$standing$army•
After$independence$armies$were$strong$except$government$couldn’t$pay$or$
organize$them
•
Become$private$armies$led$by$former$independence$officers
○
Leaders$came$to$be$known$as$Caudillos
○
Most$LA$governments$were$too$weak$to$fight$or$destroy$Caudillo$armies
○
Caudillos$-- incentive$to$seize$power,$esp.$since$governments$were$so$easy$
to$topple
○
Few$of$these$Caudillos$were$able$to$hold$power
§
Led$to$a$series$of$wars$between$competing$Caudillo$armies
§
1820's$and$30's$many$countries$were$occupied$by$own$armed$forces
○
Liberation$armies$quickly$broke$up$into$smaller$armies,$or$militias•
Liberated$Latin$America$in$the$1820's
Died$in$1830's•
"America$is$ungovernable,$those$who$serve$the$revolution$plow$the$sea"•
Liberated$Venezuela,$Colombia,$and$Ecuador$from$Spanish$colonialism•
Simon$Bolivar
LA$HAS$LONG$BEEN$CHARACTERZIED$BY$INSITITUTIONAL$WEAKNESS,$THE$ROOT$OF$
THAT$INSITUTIONAL$WEAKNESS$LAY$IN$THIS$POST-INDEPENDENCE$PERIOD
+3#%(S+)*!3#'&-'!)/'.2)$#)$!/&)&1!)'!"%.()T+&#&!$!++T
Extreme$instability$during$a$nation's$finding$decades$lead$people$to$learn$not$take$
those$institutions$seriously$-- people$stop$investing$in$institutions$and$learn$how$to$
operate$and$survive$in$a$world$without$strong$institutions$or$clearly$defined$and$
stable$rule
Latin$America$exports$boom$during$second$half$of$19th$century•
Export$boom$triggered$by$European$industrialization•
However$brought$concentration$of$commercial$ landowners$that$displaced$
small$farmers
○
By$early$20th$century,$3-4%$of$the$population$controlled$70-80%$of$land$in$
most$LA$country$and$2/3$of$population$was$landless
○
Export$boom$generated$unprecedented$economic$boom•
Land$owners$began$translating$their$economic$power$into$political$power$and$
over$time$displaced$military$Caudillos$and$established$themselves$as$political$
figureheads
•
Classical$liberalism$championed$free$markets,$and$liberal$democracy$•
Liberals$-- championed$private$parties,$free$trade,$exports•
Conservatives$-- more$suspicious$of$free$markets$and$supporters$of$the$Catholic$
Church
•
Europeans$and$North$Americans$started$to$buy$goods$from$LA
Consolidation$of$oligarchical$rule•
El$Salvador$-- major$peasant$rebellion$resulted$in$military$killing$
thousands$of$peasants
§
Based$so$heavily$on$exports,$needed$to$keep$wages$low$and$benefits$
minimal$to$keep$prices$competitive$compared$to$other$markets
○
Economic:$Laissez-Faire$markets•
Based$on$export$of$raw$materials•
States$role$in$economy$-- provide$law$and$order,$rest$left$to$market•
Their$votes$were$either$bought$or$coerced
◊
0$%!(&!$%+2
◊
Even$when$peasants$gained$the$ability$to$vote,$they$
were$so$dependent$on$land$owners$they$would$support$
land$owners$party
®
Elections,$political$ parties,$all$constitutional$trappings$of$
democracy$!L0!3&)/.')#,%$%&5)&.)4.&!)U@7>E)VWX)@G)=89>;)
R@R9>=;6@7)C@9>8)J@;BY
□
Constitutions$and$the$rule$of$law$were$generally$respected
§
Constitutional:$Argentina,$Brazil,$0D6>B (stood$out$for$political$stability)
○
Elections$but$usually$ran$without$opposition□
Diaz$in$Mexico:$full$blown$dictator
§
Strong-man$Rule:$
○
Oligarchic$political$systems•
Late$19th,$early$20th$Century$in$LA
Economically$exclusionary:$export$led$model$benefitted$landowners$but$did$
little$ for$peasants/working$classes
•
Politically$exclusionary:$access$to$power$was$restricted$to$upper$class•
Socially$exclusionary•
Culturally$exclusionary•
Racially$exclusionary•
Oligarchic$Rule$was$exclusionary:$
Buenos$Aires$was$off-limits$to$the$poor
Class%Three%(1/31/17)
Tuesday,$ January$ 31,$2017
10:13$AM
For$sectioning:$Alice$Xu$(alicexu@g.harvard.edu)
Dependency$theory$of$why$LA$is$different:$colonialism,$except$US$was$also$a$colony$
and$was$able$to$escape$periphery$and$establish$democracy
Problem$with$Spain$wasn't$culture$but$form$of$rule$(historical$institutionalist$
account$of$LA$problems)
•
"ENGLISH$PEOPLE$MOVING$TO$AMERICA$TO$ENRICH$THEMSELVES$IN$
AMERICA"
○
Less$intermarriage
§
Settlers$brought$families,$so$males$were$less$likely$to$seek$out$indigenous$
partners
○
!"#$%&#'%#()*%+&'%,-&%.()./)$#(*),!0#-+!)+!&&$!'+) &1#&)0#2!)
(!!*!*)&.)3'.4%*!)/.')&1!2+!$4!+)+.)&1!5)+&#'&!*)/#'2%("
○
Imported$structures$from$england
§
Because$settlers$intended$on$making$money$in$North$America$rather$than$
take$riches$back$home,$they$had$to$establish$institutions$like$property$
rights$and$the$building$of$institutions$of$self$government$-->$they$planned$
on$living$there$and$raising$families$so$they$cared$about$community,$
governance,$etc
○
Ethnic$cleansing:$physical$expulsion$of$indigenous$people$
from$what$would$become$the$United$States
□
So$through$the$decades$indigenous$people$in$the$region$were$
forced$from$European$settlements$-->$MASSIVE$!&1(%0)0$!#(+%("
§
Settlers$wanted$nothing$to$do$with$indigenous$people
○
AMERICA$WAS$A$SETTLER$COLONY$-->$BRITS$CAME$TO$SETTLE$AND$ESTABLISH$A$
LIFE$HERE,$NOT$TO$EXTRACT$RICHES$AND$SEND$THEM$TO$ENGLAND
•
For$the$most$part,$Americans$left$to$themselves$politically$and$
economically
○
No$big$colonial$bureaucracy,$no$big$British$military$presence
○
Americans$allowed$to$establish$own$state$legislatures$(allowed$to$govern$
themselves$even$under$colonial$rule)
○
British$regulated$colonial$trading$with$other$European$powers,$but$
generally$encouraged$free$trade
○
……$stimulated$production,$commerce,$and$eventually$/.+&!'!*)
6789:;<6=>6?=;6@7
○
British$rule$in$the$US•
Early$19th$century$-- US$mainly$a$nation$of$small$farmers
§
Also$Native$Americans$and$slaves
§
Slaves$were$imported
§
Left$behind$relatively$egalitarian$ social$structure$(far$more$egalitarian$
than$anywhere$in$LA)
○
Bases$for$Capitalist$development
§
US$first$non-European$industrializers$in$the$world
○
#AB<6C=7:)D=8)=><B=8E)B:;=F>6:DB8)67:;6;9;6@7:)@G):B>GHI@JB<7=7CB
§
Independence$didn't$change$much$-- Americans$had$pretty$much$
been$governing$themselves$for$some$time
§
British$left$behind$functioning$state
○
Settler$Colonialism
•
Maybe$spanish$colonialism$-->$culture
DISTRIBUTION$OF$LAND$$and$wealth$AMONG$WHITES$IN$AMERICA$WAS$FAR$MORE$
EGALITARIAN$THAN$ANYWHERE$IN$LA.$ALSO,$SLAVES$WERE$IMPORTED$-->$SLAVERY$
BECAME$THE$PRINCIPLE$LONG$TERM$SOURCE$OF$INEQUALITY$IN$THE$UNITED$STATES
2#%()".#$)K#+)&.)!L&'#0&)'%01!+)/.')&1!)+3#(%+1)+&#&!
○
0.$.(%#$%+2)/.')&1!)3-'3.+!)./)!L&'#0&%.()#(*)(.&)
+!&&$!2!(&
○
(.&)#),.&&.2)-3)3'.0!++)K1!'!)+!&&$!'+)+!!M!*)&.)2#M!)#)(!K)
$%/!)/.')&1!2)#(*)&1!%')/#2%$%!+N)%&)K#+)#)&.3)*.K()3'.0!++)
*%'!0&!*),5)#(*)/.')&1!)+3#(%+1)2.(#'015
○
Spanish$colonialism$was$primarily$mercantilist
•
Capitalism$-- to$mine$as$much$gold$and$silver$as$possible$and$send$it$back$to$
Spain
•
Spanish$colonists$did$not$view$America$as$a$possible$home$or$place$for$
opportunity$-- just$a$place$where$they$could$exploit$the$gold/riches$available
•
Vast$majority$were$men$who$left$their$families$behind$in$Spain
○
INSTEAD$THEY$DID$THE$OPPOSITE,$THEY$STAYED$TOGETHER$NEAR$
THE$PORTS$AND$MINES
§
Not$the$same$push$to$settle$on$a$plot$of$land$and$build$a$farm
○
Early$colonizers$mainly$soldiers,$priests,$profiteers
•
Property$distributed$from$top$down$by$the$crown
○
Spain's$mercantilist$approach$had$very$different$distribution•
Conquistadors$granted$use$plots$of$land$called$ HACIENDAS)which$granted$them$
control$over$indigenous$populations$who$were$forced$to$live$on$their$land
•
Quickly$became$biggest$land$owners$in$region
○
Members$of$the$Catholic$church$also$granted$huge$plots$of$land•
High$levels$of$concentrated$land$ownership$•
Few$people$were$dedicated$to$making$a$life$off$the$land
○
They$could$take$back$land$if$they$wanted$to
§
Property$rights$remained$a$prerogative$of$the$crown
○
Spaniards$home$was$Spain$-- they$didn't$care$about$building$long$term$
institutions$of$self-government$in$the$US
○
When$the$indigenous$people$were$plagued$by$disease,$they$brought$
in$Africans
§
Wanted$to$exploit$indigenous$people$not$exterminate$them
§
Spaniards$viewed$indigenous$people$around$to$exploit$their$labor
○
Spanish$colonists$approached$institution$building$differently•
Which$meant$that$Spanish$men$were$more$likely$to$search$for$
companionship$among$indigenous
○
Large$rise$of$Mestizos$-- mixed$Spanish/indigenous$groupings$of$people
○
Economically,$the$crown$monopolized$trade□
Sole$trading$partner$for$LA$was$Spain□
Spain$-- hands$on$ruling
§
Brits$-- hands$of$ruling
○
9:1$ratio$for$Spanish$men$to$female•
Under$Spanish$Rule$-- only$trading$partner$was$Spain,$no$free$trade•
Very$little$self-governance$in$LA$because$all$the$appointed$positions$were$
members$of$the$crown
○
Politically$Spanish$crown$ruled$a$centralized$bureaucracy•
State$institutions$remained$very$much$in$Spanish$hands$throughout$Spanish$
colonialism
•
Rather$than$small$farmers,$land$was$highly$concentrated
○
Capitalist$economies$had$to$be$built$from$scratch
○
#>:@)OB=P):;=;B:)HHQ):67CB)@RB<=;B8);D<@9ID)=)CB7;<=>)F9<B=9C<=CE)
○
Army,$judiciary,$taxes
§
Right$up$until$independence,$state$was$almost$entirely$in$State$hands
○
When$the$Spanish$left,$the$state$was$dismantled,$Spanish$packed$up$their$
nation$and$left
○
Spanish$colonialism$left$behind$a$very$unequal$nation$•
Spanish$America
Declined$by$90%
§
Mainly$due$to$disease$brought$over$which$decimated$indigenous$
population
○
Rise$to$Creoles$and$mestizos
§
Number$of$non-indigenous$people$increased
○
Demographic$of$Latin$America$changes$greatly$during$16th$and$17th$century•
Latin$American$Independence
When$Napoleon$overthrows$Spain,$it$results$in$LA$colonial$structures$breaking$down$
and$independence$movements$emerged$to$fill$vacuum
Simon$Bolivar$(venezuela)
○
Defeated$royalists$in$argentina$and$chile
§
Cesar$Martin$(argentina)
○
Few$rebel$leaders$fought$on$•
Ferdinand$regains$thrown$in$Spain,$most$independence$movements$in$LA$fizzle$out
Spain's$last$colonial$holdout$in$the$region•
Peru$
When$napoleon$occupied$Portugal,$the$royal$family$fled$to$brazil$and$the$ruler$
of$Portugal$named$himself$emperor$of$Brazil
•
Later$returned$to$portugal$as$king$and$left$his$son$in$charge$of$brazil•
1822$Don$Pedro$(son)$declares$independence$from$Dad$and$crowned$himself$
emperor
•
Brazil$was$Portuguese$Colony$so$it$followed$a$different$path
Highly$unequal,$white$creoles$dominated$most$of$the$land$and$wealth•
Blacks$and$indigenous$people$denied$basic$rights$and$owned$basically$nothing$
and$couldn't$hold$office
•
Coroners$of$power$were$only$open$to$Creoles$and$Mestizos•
Mexico$and$Venezuela$-- production$fell$by$75%$during$Independence$War•
Trade$with$spain$collapsed,$and$since$trade$was$monopolized$with$spain,$it's$
international$trade$was$completely$cut$off
•
1800-1850:$the$period$in$which$LA$fell$behind$due$to$collapsed$economies$with$
no$recovery
•
States$left$without$state$bureaucracies,$born$weak•
Independence$triggered$state$collapse$in$LA•
1840's$Mexican$state$was$so$weak$that$it$was$dragged$into$a$war$with$the$US$
and$lost$a$huge$portion$of$its$land
•
1850's$and$60's$Venezuela$had$no$standing$army•
After$independence$armies$were$strong$except$government$couldn’t$pay$or$
organize$them
•
Become$private$armies$led$by$former$independence$officers
○
Leaders$came$to$be$known$as$Caudillos
○
Most$LA$governments$were$too$weak$to$fight$or$destroy$Caudillo$armies
○
Caudillos$-- incentive$to$seize$power,$esp.$since$governments$were$so$easy$
to$topple
○
Few$of$these$Caudillos$were$able$to$hold$power
§
Led$to$a$series$of$wars$between$competing$Caudillo$armies
§
1820's$and$30's$many$countries$were$occupied$by$own$armed$forces
○
Liberation$armies$quickly$broke$up$into$smaller$armies,$or$militias•
Liberated$Latin$America$in$the$1820's
Died$in$1830's•
"America$is$ungovernable,$those$who$serve$the$revolution$plow$the$sea"•
Liberated$Venezuela,$Colombia,$and$Ecuador$from$Spanish$colonialism•
Simon$Bolivar
LA$HAS$LONG$BEEN$CHARACTERZIED$BY$INSITITUTIONAL$WEAKNESS,$THE$ROOT$OF$
THAT$INSITUTIONAL$WEAKNESS$LAY$IN$THIS$POST-INDEPENDENCE$PERIOD
+3#%(S+)*!3#'&-'!)/'.2)$#)$!/&)&1!)'!"%.()T+&#&!$!++T
Extreme$instability$during$a$nation's$finding$decades$lead$people$to$learn$not$take$
those$institutions$seriously$-- people$stop$investing$in$institutions$and$learn$how$to$
operate$and$survive$in$a$world$without$strong$institutions$or$clearly$defined$and$
stable$rule
Latin$America$exports$boom$during$second$half$of$19th$century•
Export$boom$triggered$by$European$industrialization•
However$brought$concentration$of$commercial$ landowners$that$displaced$
small$farmers
○
By$early$20th$century,$3-4%$of$the$population$controlled$70-80%$of$land$in$
most$LA$country$and$2/3$of$population$was$landless
○
Export$boom$generated$unprecedented$economic$boom•
Land$owners$began$translating$their$economic$power$into$political$power$and$
over$time$displaced$military$Caudillos$and$established$themselves$as$political$
figureheads
•
Classical$liberalism$championed$free$markets,$and$liberal$democracy$•
Liberals$-- championed$private$parties,$free$trade,$exports•
Conservatives$-- more$suspicious$of$free$markets$and$supporters$of$the$Catholic$
Church
•
Europeans$and$North$Americans$started$to$buy$goods$from$LA
Consolidation$of$oligarchical$rule•
El$Salvador$-- major$peasant$rebellion$resulted$in$military$killing$
thousands$of$peasants
§
Based$so$heavily$on$exports,$needed$to$keep$wages$low$and$benefits$
minimal$to$keep$prices$competitive$compared$to$other$markets
○
Economic:$Laissez-Faire$markets•
Based$on$export$of$raw$materials•
States$role$in$economy$-- provide$law$and$order,$rest$left$to$market•
Their$votes$were$either$bought$or$coerced
◊
0$%!(&!$%+2
◊
Even$when$peasants$gained$the$ability$to$vote,$they$
were$so$dependent$on$land$owners$they$would$support$
land$owners$party
®
Elections,$political$ parties,$all$constitutional$trappings$of$
democracy$!L0!3&)/.')#,%$%&5)&.)4.&!)U@7>E)VWX)@G)=89>;)
R@R9>=;6@7)C@9>8)J@;BY
□
Constitutions$and$the$rule$of$law$were$generally$respected
§
Constitutional:$Argentina,$Brazil,$0D6>B (stood$out$for$political$stability)
○
Elections$but$usually$ran$without$opposition□
Diaz$in$Mexico:$full$blown$dictator
§
Strong-man$Rule:$
○
Oligarchic$political$systems•
Late$19th,$early$20th$Century$in$LA
Economically$exclusionary:$export$led$model$benefitted$landowners$but$did$
little$ for$peasants/working$classes
•
Politically$exclusionary:$access$to$power$was$restricted$to$upper$class•
Socially$exclusionary•
Culturally$exclusionary•
Racially$exclusionary•
Oligarchic$Rule$was$exclusionary:$
Buenos$Aires$was$off-limits$to$the$poor
Class%Three%(1/31/17)
Tuesday,$ January$ 31,$2017 10:13$AM
For$sectioning:$Alice$Xu$(alicexu@g.harvard.edu)
Dependency$theory$of$why$LA$is$different:$colonialism,$except$US$was$also$a$colony$
and$was$able$to$escape$periphery$and$establish$democracy
Problem$with$Spain$wasn't$culture$but$form$of$rule$(historical$institutionalist$
account$of$LA$problems)
•
"ENGLISH$PEOPLE$MOVING$TO$AMERICA$TO$ENRICH$THEMSELVES$IN$
AMERICA"
○
Less$intermarriage
§
Settlers$brought$families,$so$males$were$less$likely$to$seek$out$indigenous$
partners
○
!"#$%&#'%#()*%+&'%,-&%.()./)$#(*),!0#-+!)+!&&$!'+) &1#&)0#2!)
(!!*!*)&.)3'.4%*!)/.')&1!2+!$4!+)+.)&1!5)+&#'&!*)/#'2%("
○
Imported$structures$from$england
§
Because$settlers$intended$on$making$money$in$North$America$rather$than$
take$riches$back$home,$they$had$to$establish$institutions$like$property$
rights$and$the$building$of$institutions$of$self$government$-->$they$planned$
on$living$there$and$raising$families$so$they$cared$about$community,$
governance,$etc
○
Ethnic$cleansing:$physical$expulsion$of$indigenous$people$
from$what$would$become$the$United$States
□
So$through$the$decades$indigenous$people$in$the$region$were$
forced$from$European$settlements$-->$MASSIVE$!&1(%0)0$!#(+%("
§
Settlers$wanted$nothing$to$do$with$indigenous$people
○
AMERICA$WAS$A$SETTLER$COLONY$-->$BRITS$CAME$TO$SETTLE$AND$ESTABLISH$A$
LIFE$HERE,$NOT$TO$EXTRACT$RICHES$AND$SEND$THEM$TO$ENGLAND
•
For$the$most$part,$Americans$left$to$themselves$politically$and$
economically
○
No$big$colonial$bureaucracy,$no$big$British$military$presence
○
Americans$allowed$to$establish$own$state$legislatures$(allowed$to$govern$
themselves$even$under$colonial$rule)
○
British$regulated$colonial$trading$with$other$European$powers,$but$
generally$encouraged$free$trade
○
……$stimulated$production,$commerce,$and$eventually$/.+&!'!*)
6789:;<6=>6?=;6@7
○
British$rule$in$the$US•
Early$19th$century$-- US$mainly$a$nation$of$small$farmers
§
Also$Native$Americans$and$slaves
§
Slaves$were$imported
§
Left$behind$relatively$egalitarian$ social$structure$(far$more$egalitarian$
than$anywhere$in$LA)
○
Bases$for$Capitalist$development
§
US$first$non-European$industrializers$in$the$world
○
#AB<6C=7:)D=8)=><B=8E)B:;=F>6:DB8)67:;6;9;6@7:)@G):B>GHI@JB<7=7CB
§
Independence$didn't$change$much$-- Americans$had$pretty$much$
been$governing$themselves$for$some$time
§
British$left$behind$functioning$state
○
Settler$Colonialism•
Maybe$spanish$colonialism$-->$culture
DISTRIBUTION$OF$LAND$$and$wealth$AMONG$WHITES$IN$AMERICA$WAS$FAR$MORE$
EGALITARIAN$THAN$ANYWHERE$IN$LA.$ALSO,$SLAVES$WERE$IMPORTED$-->$SLAVERY$
BECAME$THE$PRINCIPLE$LONG$TERM$SOURCE$OF$INEQUALITY$IN$THE$UNITED$STATES
2#%()".#$)K#+)&.)!L&'#0&)'%01!+)/.')&1!)+3#(%+1)+&#&!
○
0.$.(%#$%+2)/.')&1!)3-'3.+!)./)!L&'#0&%.()#(*)(.&)
+!&&$!2!(&
○
(.&)#),.&&.2)-3)3'.0!++)K1!'!)+!&&$!'+)+!!M!*)&.)2#M!)#)(!K)
$%/!)/.')&1!2)#(*)&1!%')/#2%$%!+N)%&)K#+)#)&.3)*.K()3'.0!++)
*%'!0&!*),5)#(*)/.')&1!)+3#(%+1)2.(#'015
○
Spanish$colonialism$was$primarily$mercantilist•
Capitalism$-- to$mine$as$much$gold$and$silver$as$possible$and$send$it$back$to$
Spain
•
Spanish$colonists$did$not$view$America$as$a$possible$home$or$place$for$
opportunity$-- just$a$place$where$they$could$exploit$the$gold/riches$available
•
Vast$majority$were$men$who$left$their$families$behind$in$Spain
○
INSTEAD$THEY$DID$THE$OPPOSITE,$THEY$STAYED$TOGETHER$NEAR$
THE$PORTS$AND$MINES
§
Not$the$same$push$to$settle$on$a$plot$of$land$and$build$a$farm
○
Early$colonizers$mainly$soldiers,$priests,$profiteers•
Property$distributed$from$top$down$by$the$crown
○
Spain's$mercantilist$approach$had$very$different$distribution
•
Conquistadors$granted$use$plots$of$land$called$ HACIENDAS)which$granted$them$
control$over$indigenous$populations$who$were$forced$to$live$on$their$land
•
Quickly$became$biggest$land$owners$in$region
○
Members$of$the$Catholic$church$also$granted$huge$plots$of$land
•
High$levels$of$concentrated$land$ownership$
•
Few$people$were$dedicated$to$making$a$life$off$the$land
○
They$could$take$back$land$if$they$wanted$to
§
Property$rights$remained$a$prerogative$of$the$crown
○
Spaniards$home$was$Spain$-- they$didn't$care$about$building$long$term$
institutions$of$self-government$in$the$US
○
When$the$indigenous$people$were$plagued$by$disease,$they$brought$
in$Africans
§
Wanted$to$exploit$indigenous$people$not$exterminate$them
§
Spaniards$viewed$indigenous$people$around$to$exploit$their$labor
○
Spanish$colonists$approached$institution$building$differently
•
Which$meant$that$Spanish$men$were$more$likely$to$search$for$
companionship$among$indigenous
○
Large$rise$of$Mestizos$-- mixed$Spanish/indigenous$groupings$of$people
○
Economically,$the$crown$monopolized$trade
□
Sole$trading$partner$for$LA$was$Spain
□
Spain$-- hands$on$ruling
§
Brits$-- hands$of$ruling
○
9:1$ratio$for$Spanish$men$to$female
•
Under$Spanish$Rule$-- only$trading$partner$was$Spain,$no$free$trade
•
Very$little$self-governance$in$LA$because$all$the$appointed$positions$were$
members$of$the$crown
○
Politically$Spanish$crown$ruled$a$centralized$bureaucracy
•
State$institutions$remained$very$much$in$Spanish$hands$throughout$Spanish$
colonialism
•
Rather$than$small$farmers,$land$was$highly$concentrated
○
Capitalist$economies$had$to$be$built$from$scratch
○
#>:@)OB=P):;=;B:)HHQ):67CB)@RB<=;B8);D<@9ID)=)CB7;<=>)F9<B=9C<=CE)
○
Army,$judiciary,$taxes
§
Right$up$until$independence,$state$was$almost$entirely$in$State$hands
○
When$the$Spanish$left,$the$state$was$dismantled,$Spanish$packed$up$their$
nation$and$left
○
Spanish$colonialism$left$behind$a$very$unequal$nation$
•
Spanish$America
Declined$by$90%
§
Mainly$due$to$disease$brought$over$which$decimated$indigenous$
population
○
Rise$to$Creoles$and$mestizos
§
Number$of$non-indigenous$people$increased
○
Demographic$of$Latin$America$changes$greatly$during$16th$and$17th$century•
Latin$American$Independence
When$Napoleon$overthrows$Spain,$it$results$in$LA$colonial$structures$breaking$down$
and$independence$movements$emerged$to$fill$vacuum
Simon$Bolivar$(venezuela)
○
Defeated$royalists$in$argentina$and$chile
§
Cesar$Martin$(argentina)
○
Few$rebel$leaders$fought$on$•
Ferdinand$regains$thrown$in$Spain,$most$independence$movements$in$LA$fizzle$out
Spain's$last$colonial$holdout$in$the$region•
Peru$
When$napoleon$occupied$Portugal,$the$royal$family$fled$to$brazil$and$the$ruler$
of$Portugal$named$himself$emperor$of$Brazil
•
Later$returned$to$portugal$as$king$and$left$his$son$in$charge$of$brazil•
1822$Don$Pedro$(son)$declares$independence$from$Dad$and$crowned$himself$
emperor
•
Brazil$was$Portuguese$Colony$so$it$followed$a$different$path
Highly$unequal,$white$creoles$dominated$most$of$the$land$and$wealth•
Blacks$and$indigenous$people$denied$basic$rights$and$owned$basically$nothing$
and$couldn't$hold$office
•
Coroners$of$power$were$only$open$to$Creoles$and$Mestizos•
Mexico$and$Venezuela$-- production$fell$by$75%$during$Independence$War•
Trade$with$spain$collapsed,$and$since$trade$was$monopolized$with$spain,$it's$
international$trade$was$completely$cut$off
•
1800-1850:$the$period$in$which$LA$fell$behind$due$to$collapsed$economies$with$
no$recovery
•
States$left$without$state$bureaucracies,$born$weak•
Independence$triggered$state$collapse$in$LA•
1840's$Mexican$state$was$so$weak$that$it$was$dragged$into$a$war$with$the$US$
and$lost$a$huge$portion$of$its$land
•
1850's$and$60's$Venezuela$had$no$standing$army•
After$independence$armies$were$strong$except$government$couldn’t$pay$or$
organize$them
•
Become$private$armies$led$by$former$independence$officers
○
Leaders$came$to$be$known$as$Caudillos
○
Most$LA$governments$were$too$weak$to$fight$or$destroy$Caudillo$armies
○
Caudillos$-- incentive$to$seize$power,$esp.$since$governments$were$so$easy$
to$topple
○
Few$of$these$Caudillos$were$able$to$hold$power
§
Led$to$a$series$of$wars$between$competing$Caudillo$armies
§
1820's$and$30's$many$countries$were$occupied$by$own$armed$forces
○
Liberation$armies$quickly$broke$up$into$smaller$armies,$or$militias•
Liberated$Latin$America$in$the$1820's
Died$in$1830's•
"America$is$ungovernable,$those$who$serve$the$revolution$plow$the$sea"•
Liberated$Venezuela,$Colombia,$and$Ecuador$from$Spanish$colonialism•
Simon$Bolivar
LA$HAS$LONG$BEEN$CHARACTERZIED$BY$INSITITUTIONAL$WEAKNESS,$THE$ROOT$OF$
THAT$INSITUTIONAL$WEAKNESS$LAY$IN$THIS$POST-INDEPENDENCE$PERIOD
+3#%(S+)*!3#'&-'!)/'.2)$#)$!/&)&1!)'!"%.()T+&#&!$!++T
Extreme$instability$during$a$nation's$finding$decades$lead$people$to$learn$not$take$
those$institutions$seriously$-- people$stop$investing$in$institutions$and$learn$how$to$
operate$and$survive$in$a$world$without$strong$institutions$or$clearly$defined$and$
stable$rule
Latin$America$exports$boom$during$second$half$of$19th$century•
Export$boom$triggered$by$European$industrialization•
However$brought$concentration$of$commercial$ landowners$that$displaced$
small$farmers
○
By$early$20th$century,$3-4%$of$the$population$controlled$70-80%$of$land$in$
most$LA$country$and$2/3$of$population$was$landless
○
Export$boom$generated$unprecedented$economic$boom•
Land$owners$began$translating$their$economic$power$into$political$power$and$
over$time$displaced$military$Caudillos$and$established$themselves$as$political$
figureheads
•
Classical$liberalism$championed$free$markets,$and$liberal$democracy$•
Liberals$-- championed$private$parties,$free$trade,$exports•
Conservatives$-- more$suspicious$of$free$markets$and$supporters$of$the$Catholic$
Church
•
Europeans$and$North$Americans$started$to$buy$goods$from$LA
Consolidation$of$oligarchical$rule•
El$Salvador$-- major$peasant$rebellion$resulted$in$military$killing$
thousands$of$peasants
§
Based$so$heavily$on$exports,$needed$to$keep$wages$low$and$benefits$
minimal$to$keep$prices$competitive$compared$to$other$markets
○
Economic:$Laissez-Faire$markets•
Based$on$export$of$raw$materials•
States$role$in$economy$-- provide$law$and$order,$rest$left$to$market•
Their$votes$were$either$bought$or$coerced
◊
0$%!(&!$%+2
◊
Even$when$peasants$gained$the$ability$to$vote,$they$
were$so$dependent$on$land$owners$they$would$support$
land$owners$party
®
Elections,$political$ parties,$all$constitutional$trappings$of$
democracy$!L0!3&)/.')#,%$%&5)&.)4.&!)U@7>E)VWX)@G)=89>;)
R@R9>=;6@7)C@9>8)J@;BY
□
Constitutions$and$the$rule$of$law$were$generally$respected
§
Constitutional:$Argentina,$Brazil,$0D6>B (stood$out$for$political$stability)
○
Elections$but$usually$ran$without$opposition□
Diaz$in$Mexico:$full$blown$dictator
§
Strong-man$Rule:$
○
Oligarchic$political$systems•
Late$19th,$early$20th$Century$in$LA
Economically$exclusionary:$export$led$model$benefitted$landowners$but$did$
little$ for$peasants/working$classes
•
Politically$exclusionary:$access$to$power$was$restricted$to$upper$class•
Socially$exclusionary•
Culturally$exclusionary•
Racially$exclusionary•
Oligarchic$Rule$was$exclusionary:$
Buenos$Aires$was$off-limits$to$the$poor
Class%Three%(1/31/17)
Tuesday,$ January$ 31,$2017 10:13$AM
