Latin America around 1850: societies, economies, policies

Données clés
Faculté	Lettres
Département	Département d’histoire générale
Professeur(s)	Aline Helg^[1]^[2]^[3]^[4]^[5]^[6]^[7]
Cours	The United States and Latin America: late 18th and 20th centuries

Lectures

We will see the contrasts between Latin America and the United States. These contrasts are growing in the mid-nineteenth century because of the strong differences that exist between these regions and during their independence processes, on the other hand, there are differences within these two great blocs.

In Latin America, economic liberalism is developing which benefits a tiny minority, but which makes the vast majority increasingly poor, landless, exploited and precarious.

In the United States, it is also the reign of economic liberalism while the gap between rich and poor is growing, it is also the gap between the North which is industrializing and modernizing in part thanks to the arrival of immigrants while the South called the "cotton king" produces cotton by a large number of slaves which will lead to the Civil War called "civil war" in the United States.

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1825 - 1850: instability and adjustment

The Wars of Independence in Latin America were a series of conflicts that occurred in the early 19th century, between 1810 and 1825, with the goal of gaining independence from Spanish and Portuguese colonial rule. These wars were led by figures such as Simon Bolivar in Venezuela and Jose de San Martin in Argentina. After gaining independence, the newly formed countries faced a period of instability and adjustment, between 1825 and 1850, as they established new governments and systems of governance. In the case of Brazil, it became an empire under Pedro I in 1822, however, slavery still remained a significant institution without any major political changes. For the former continental colonies of Spain, independence meant a significant political and social upheaval. The colonies had been under Spanish rule for centuries and were deeply ingrained with Spanish culture, laws, and institutions. With independence, the colonies had to create new political systems and governance structures, often with little guidance or experience. Additionally, the newly independent countries had to navigate issues such as land ownership, economic development, and relations with their former colonizers. The process of establishing new governments and societies was often complex and tumultuous, leading to a period of instability and adjustment in the years following independence.

The new nations that gained independence from Spain rejected the supreme authority of the King of Spain, who had been seen as a protective figure and had justified his rule through Catholic tradition and religion. With independence, the new nations established the principle of constitutional authority, where the supreme power is vested in a written document, a constitution, that governs the country. However, this posed several challenges, as the population of these nations was largely illiterate, making it difficult for them to understand or identify with the constitution. Additionally, the constitutions were often inspired by those of the United States and France, which may not have been fully applicable or relevant to the local context, causing difficulties in their implementation. This added to the instability and adjustment period that the new nations went through after gaining independence.

After gaining independence, there was a significant continuity in terms of the economic structure of these new nations, as land ownership remained the main source of wealth, status, and power. However, with the change in political power, acquiring land became a key goal for the new leaders and elites, as it was seen as a way to gain and maintain political power. The lands of the Spaniards who had left the continent after independence were considered "national domain" and were open for acquisition, as were the lands of indigenous communities, who were no longer protected by the colonial government. Additionally, many peasants who worked the land did not have title to the land they worked, making them vulnerable to land grabbing. This led to a concentration of land ownership in the hands of a few powerful individuals and groups, often at the expense of the majority of the population.

The type of constitution adopted by a new nation can be a contentious issue and can lead to disagreements and even civil war. The constitution is the supreme authority that governs a country and it lays out the framework for the country's political system, institutions and the rights and responsibilities of its citizens. Disagreements over the type of constitution can arise when different groups in society have different visions and ideas about how the country should be governed and what rights and freedoms should be protected. For example, some groups may want a more centralized government with a strong executive branch, while others may prefer a more decentralized system with more power given to the states or regions. These differences in opinion can lead to political divisions and conflicts, and in some cases, can lead to civil war if they are not resolved through peaceful means.

To fully understand the challenges facing these new nations after gaining independence, it is important to consider the context in which they emerged. The economies and businesses of these countries were partially destroyed by the wars of independence, leaving them in a state of economic uncertainty. The Creole elites, who had traditionally held power under colonial rule, had little experience in government, making it difficult to establish effective and efficient governance structures. The state as an organization was understaffed, underfunded and had to advocate for taxes and taxation to generate revenue. Furthermore, the law enforcement and security institutions were weak and had yet to be built, which made it hard to maintain order and protect citizens. All these factors contributed to the instability and adjustment period that these new nations went through after gaining independence, and made it difficult for them to effectively govern and develop their countries..

In the aftermath of the wars of independence, the strongest institution in many of these new nations was often the army. These armies were often formed during the heat of battle, and were not professionally trained, which made them less effective in maintaining peace and stability. Furthermore, in the context of the post-war economic crisis, the army remained the main channel for social mobility, as it was one of the few institutions that offered opportunities for advancement and economic stability. This led to a situation where the military played a significant role in politics and governance, and often became involved in internal conflicts, coups and political struggles. This further contributed to the instability and adjustment period that these new nations went through after gaining independence.

After gaining independence, many of the new nations in Latin America went through a period where politics and the state were dominated by caudillos, or strongmen leaders. These leaders were often from the independence armies, and had been able to gain control of land and resources during the war. They exercised power at the regional and national level through the control of the military and a network of clientelism at the local and regional level. They also often relied on the use of brutal force to maintain power, resulting in a lack of democratic governance and stability. This period, known as the "Age of the Caudillos" lasted for several decades and it is characterized by a lack of political stability, civil wars, coups, and repression of political opposition. It is considered as one of the most challenging period in the history of these new nations.

The local equivalent of the caudillo in many Latin American countries is the cacique, a term that refers to a local powerful figure, often a large landowner, who exerts significant control over a certain region or community. The cacique typically has a network of dependents, including peasants, sharecroppers, bonded labourers, and sometimes even small municipal officials, whom he can mobilize and protect. These individuals are often beholden to the cacique for their livelihood and protection, and the cacique, in turn, uses this power and influence to maintain control over the region and its resources. The cacique system is often seen as a continuation of the traditional colonial system, where a small elite class exerts power and control over the majority of the population. This also contributed to the lack of democratic governance and stability in these new nations.

Many of the caudillos in Latin America were of mestizo or mixed heritage, or were self-taught cowboys, who had risen to power through their military and political skills. Examples include Jose Antonio Páez in Venezuela, who ruled from 1830 to the 1850s, Juan Manuel de Rosas in Argentina, who dominated from 1829 to 1832 and from 1835 to 1852. Benito Suarez in Mexico, who held power in large parts of Mexico in the mid-19th century, was also of mixed heritage. These leaders, despite their lack of formal education, were able to gain and maintain power through a combination of military strength, political acumen, and charisma. However, their rule was often characterized by authoritarianism, repression of political opposition, and lack of democratic governance, which contributed to the instability and challenges faced by these new nations.

Jose Antonio Paez.
Juan Manuel de Rosas.
Benito Juarez.

The caudillos, even if they were of modest origins, did not intend to change the existing social structure, as they benefited from it. They maintained a system of socio-racial hierarchy where the elite continued to be white and Creole while the working classes were primarily mestizo, although there were exceptions. However, with the rise of these leaders, a few men who were able to move up the ranks in the army or in the regional administration, which was previously impossible under colonial rule. This was due to the fact that the caudillos, despite their authoritarianism and lack of democratic governance, created opportunities for upward mobility for some individuals from the lower social classes, primarily through the military. This led to a change in the traditional hierarchy that was based on caste and blood purity, and it became a socio-racial hierarchy, where individuals from different social backgrounds could rise to positions of power.

After gaining independence, the new nations adopted constitutions and republican laws, which in principle, did not limit the position of individuals according to their caste and blood purity, as it was under colonial rule. This was a significant change, as it opened up opportunities for individuals from different social backgrounds to rise to positions of power and influence, and it also challenged the traditional hierarchy based on caste and blood purity. However, in practice, racial ancestry continued to be a significant factor in determining social status and opportunities, and it was difficult for people of lower social backgrounds, particularly those of indigenous or African descent, to access political power and economic opportunities. This led to a persistence of socio-racial hierarchy, where the elite class continued to be white and Creole, while the working classes were primarily mestizo, and people of indigenous and African descent were underrepresented in political and economic power.

The caudillos, who were the dominant political figures during this period, led interest groups and sought to gain control of the state through different institutions. They also sought to acquire more land by competing with each other through elections or through civil wars. These civil wars, however, were often limited to small areas, and the death toll was not as high as in other conflicts. This was because these civil wars were often fought between different caudillos and their followers, rather than between different classes or groups in society. The caudillos also usually had the support of local communities, who relied on them for protection and livelihood, which further limited the scale of the conflicts. However, despite the limited scope and impact of these civil wars, they contributed to the instability and challenges faced by these new nations in their efforts to establish effective governance and development.

During the period of caudillo rule, the various interest groups and factions gradually evolved into political parties, taking on the names of "conservatives" and "liberals". However, there were few economic and ideological differences between these groups, as the Conservative and Liberal elites both lived off of agriculture, trade, customs revenue, and politics. These elites agreed on the need to have republican regimes, rather than monarchies, as republics were seen as more modern and progressive form of government, and it was in line with the trend in Europe, which was overwhelmingly under monarchical control at that time. However, despite their agreement on the form of government, these political parties often engaged in power struggles and conflicts, which contributed to the instability and challenges faced by these new nations.

The fundamental ideological difference between conservatives and liberals concerns social control, specifically the way in which the elites planned to control the society of color, which was located in a vast territory with a weak state presence. The conservatives generally advocated for maintaining the existing social hierarchy and traditional power structures,.They generally believed that the Catholic Church should continue to play a role in social control, similar to how it did during colonial times, by maintaining a monopoly on religion and control of education. The liberals, on the other hand, advocated for a more modern model of separation of church and state, and the secularization of society, in order to create a new system of social control. This could be achieved through institutions such as the police, professional organizations, and a more advanced and widespread system of education. This idea of the liberals was to create a more secular and progressive society, where the church would have less power over the people and the state would have more control over the society

The conflicts of the 1825s and 1850s between conservatives and liberals, while not devastating in terms of loss of life, affected only a small portion of the population of each country, but they slowed down production and trade. These civil wars required countries to maintain large, expensive armies, which put a strain on the economy. Additionally, the raw materials and agricultural sectors, which were the mainstay of the economy, were slow to recover, further hindering the development of an export economy. This led to a lack of economic growth and development, which further contributed to the challenges faced by these new nations in their efforts to establish effective governance and stability.

On the other hand, as the population was very impoverished, they resisted the raising of taxes, making it difficult for new administrations to collect taxes efficiently. Furthermore, the new administrations lacked enough civil servants and resources to effectively collect taxes. The main sector taxed was trade, and as a result, many countries had to resort to taking out loans from foreign powers, particularly the British, to finance their government and military expenses. This led to Latin America, including countries like Haiti, entering into a cycle of debt and foreign control of their economy, as these loans had to be repaid with interest, and the debt burden hindered economic development. This further contributed to the challenges faced by these new nations in their efforts to establish effective governance and stability.

1850 - 1870: the liberal era

The period from 1850 to 1870 is often referred to as the "liberal era" in Latin America, during which time many countries underwent significant political and economic changes. The liberal movements that had emerged during the caudillo period gained momentum, and many countries underwent a process of liberalization, characterized by the implementation of more progressive reforms, such as greater political participation, freedom of the press, and increased economic freedom. The liberals sought to create a more secular and progressive society, where the church would have less power over the people and the state would have more control over the society. The state's role in the economy was reduced and the private sector was encouraged to develop. This period was marked by a number of civil wars, coups, and political struggles, but it also led to a more stable and progressive society in the long run.

Generation born after independence

As the caudillo era came to an end, a new generation of leaders emerged, born after independence and educated outside of colonial and Church control. This generation of leaders had a more modern and progressive perspective and they were more willing to implement more liberal policies. With their leadership, the exports of several Latin American countries, particularly Brazil, increased. This new generation of leaders also played a significant role in pushing for more progressive and liberal reforms such as greater political participation, freedom of the press, and increased economic freedom. They also sought to create a more secular and progressive society, where the church would have less power over the people and the state would have more control over the society. The state's role in the economy was reduced and the private sector was encouraged to develop. This period marked a transition from the caudillo era to a more stable and progressive society.

The period from 1850 to 1870 marked a time of increased economic growth and development in Latin America, due in large part to the growing demand for raw materials and tropical agricultural products in Europe as a result of the industrialization of Europe. Europe needed increasing amounts of cocoa, sugar, wheat, fertilizers for its agriculture, wool for its textile industry, and metals for the production of tools and machinery. This created new opportunities for Latin American countries to export these products, which led to increased economic growth and development. This period also saw an increase in foreign investment in Latin America, as European countries sought to secure access to these valuable resources. This foreign investment led to the development of infrastructure and industry in Latin America, further boosting economic growth and development.

To meet this growing demand for raw materials and tropical agricultural products, more administrative governments in Latin America began to invest in the infrastructure necessary to export these goods in large quantities. For example, Peru began exporting guano as fertilizer, Brazil exported coffee, Venezuela exported cocoa, Mexico exported minerals, and Caribbean countries exported sugar. This increased export activity led to economic growth and development and opened up new avenues of enrichment and social mobility beyond the military. This period marked the beginning of the "liberal era" in Latin America, characterized by more progressive policies and greater economic freedom, which helped to spur economic growth and development. As a result of these changes, more people had access to economic opportunities and social mobility, which contributed to a more stable and progressive society.

Liberals in power

The year 1848 is marked by a revolution in Europe, known as the "spring of peoples," which saw the overthrow of monarchies and the rise of liberal movements across the continent. The 1848 revolution in France led to the overthrow of the July Monarchy and the abolition of slavery in the last French colonies in America, such as Guadeloupe, Martinique, and Guyana. Similarly, England had abolished slavery in 1838. These events had a significant impact on Latin America, as the abolition of slavery in Europe led to increased pressure on the countries in Latin America to do the same. This contributed to the decline of the caudillo era, which relied heavily on the labor of enslaved people and made way for a new generation of leaders who were more willing to implement more progressive policies. Additionally, the liberal movements that emerged in Europe during this period also influenced the rise of liberal movements in Latin America, which contributed to the liberalization of society and economy.

The political upheavals of 1848 in Europe had a significant impact on Latin America as well, as the liberal movements that emerged during this time also influenced the rise of liberal movements in Latin America. This led to the liberalization of society and economy and almost everywhere, liberals took power, through elections or coups d'état. Artisans formed clubs to mobilize against slavery, and the ideology of the new men in power was liberalism. This helped to pave the way for a more progressive and liberal society and economy, where slavery was abolished and more people had access to economic opportunities and social mobility. This period marked the transition from the caudillo era to a more stable and progressive society.

During this liberal era, the ideology of liberalism not only influenced economic policies, but also thought, religion, and movement. This led to a series of progressive reforms. Almost all the nations that became independent abolished slavery between 1851 and 1854, in many countries thousands of slaves were freed without receiving any compensation. However, in some places, slavery persisted longer, for example in Bolivia and Paraguay it lasted until the 1830s, in the Caribbean it lasted until 1873 in Puerto Rico, and in Cuba until 1886. In Brazil, slavery was abolished in 1888. This abolition of slavery was a significant step towards a more progressive and liberal society and economy, where more people had access to economic opportunities and social mobility.

The new constitutions that were implemented during the liberal era were almost all liberal in nature and they guarantee the separation between the Catholic Church and the State. This separation of Church and State was a key aspect of liberalism, as it helped to create a more secular and progressive society. However, Brazil was an exception to this trend as it was still an empire and maintained a close relationship between the Church and the State. In most of the countries, the State seized the property of the Catholic Church and religious congregations as part of the liberalization process and this further reduced the power of the Church over the society and the state.

During the liberal era, suffrage became more democratic, and many countries lifted the requirements to own property or know how to read and write in order to be able to vote. For example, in Colombia in 1853, and in Mexico in 1857, universal suffrage was adopted for men, and everyone was decreed a citizen. Additionally, titles of nobility were abolished as part of the liberalization process. These changes helped to create a more democratic and inclusive society, where more people had a say in the political process. The introduction of universal suffrage for men was a significant step towards greater political participation and representation for all citizens.

The increase in exports

During the liberal era, the governments applied the principles of economic liberalism, which emphasizes the role of the private sector in driving economic growth and development. This led to the increase in exports, as the private sector was encouraged to develop and export raw materials and agricultural products to meet the growing demand in Europe. However, these policies also had negative consequences, as the state often put public resources at the service of the private sector, which often resulted in the diversion of resources from the needs of the vast majority of the population. This led to increased inequality as the benefits of economic growth were not widely shared among the population. The economic policies of the liberal era, while helping to spur economic growth and development, also had negative consequences for the majority of the population, particularly the working class and indigenous communities.

Governments say that we must export more, and the government will do everything it can to ensure the best possible conditions for entrepreneurs and exporters:

fertile land provided to large contractors.
government loans were passed to develop transport, not to facilitate communication between people, but to export better.
abundant labour force subjected by the army, the police and new laws.

The government stimulates economic liberalism by subsidizing it with public money while ensuring the protection of the state.

The three essential conditions

The control of the earth

Governments seek to put the most productive land in the hands of entrepreneurs who are committed to investing in and maximizing the value of that land. This is how governments sell their remaining land from the Spanish crown, selling it without taking into account the people who live on it, but who have no private title to it.

For example, the Lerdo Law in Mexico in 1858 attacked the property of the Catholic Church under the guise of being a law against collective ownership, this kind of law can be used to dispossess Amerindian communities of their communal lands in the name of private property.

What is happening is that there are often huge transfers of land holdings to the benefit of Creole landowners, foreign companies and a few immigrants. This process leaves Indian landowners and a host of peasants of all races and colours who will provide labour and help to form a docile, abundant and cheap labour force.

Modernization of transport

Until then, transportation was done by trails on mules or men. Very few rivers are navigable, which will complicate things a lot. Around 1850, many Liberal governments signed large contracts, usually with British companies, to build roads, railways and canals, but also to build seaports.

In the process, the states went even further into debt. It should be noted that these communications networks are only aimed at exporting tropical and mining products more quickly, not at creating a communications system that would integrate the different regions of the same nation, let alone allowing travel from one Latin American nation to another. Most of the border regions are areas where there is practically no colonization, there are still Indian populations that live with no ties to the State.

The existence of an abundant, docile, flexible and cheap labour force

Former slaves do not receive any help from the state to integrate, in Peru slave owners are compensated for the loss of their "human property". Governments will enact anti-vagrancy laws that allow vagrants to be sentenced to forced labour or forcibly conscripted into armies.

Those who have been dispossessed of the lands that sustain them, such as small farmers without title deeds and Indians, will be added as available labour. These men become sharecroppers who have to pay the owners a share of their harvest or become peons, that is to say, agricultural workers who are enslaved to the haciendas and large plantations by systematic indebtedness; this is called "peonage for debt"; basically, they are obliged to buy the few goods they do not produce at the hacienda store with tokens that are taken from the advance salary, of course, their purchases are worth more than the meagre salary they are paid, forcing them to remain attached to the hacienda.

In order to create this abundant workforce, even before the end of slavery Peru and Cuba turned to Asia to bring in coolies, that is to say workers from India or China used to pick guano, but also in the sugar cane plantations. There will be a total of 100,000 Chinese imported to pick guano and sugar in Peru and 150,000 for the sugar plantations in Cuba; like African slaves, they are underfed, beaten and whipped often to death.

In spite of liberalism there is a continuation of forced labour which becomes multiform with archaic forms with the slavery that persists in Brazil and Cuba, but also more modern forms with the peonage for debt and the committed workers of Asia.

With the increase in exports, there is an increase in imports. Almost everywhere, tools, instruments, weapons, machinery and sometimes even textiles and everyday consumer goods are imported from industrialized countries, mainly from England.

This has a heavy effect on local craftsmanship, because Latin American craftsmen have techniques that date back to the colonial era producing for a very small domestic market towards the local, unable to compete with factories, especially in England, which export thanks to an underpaid proletariat, even if transport costs greatly increase the price of the goods purchased. Wages in Europe are so low and production so massive that even with transport costs, European products are more competitive.

Domestic industry hardly grows at all and liberal governments do not seek to protect it from foreign competition.

Why the choice of economic liberalism?

There is the often justified belief that imported manufactured goods are of better quality and because many countries live on customs revenues, i.e. import and export taxes, protectionism would have limited these taxes.

With imports from Europe come traders, often English, who have a great influence on the host country, because in addition to being traders they are active in transport, insurance and financial loans. The richest, most powerful and most influential of them are also the advisors of their country of origin, so they have the means to put pressure on the countries and governments of Latin American countries.

Domestic industry develops little, because the structure of society remains very unequal with a small elite at the top and a large mass of workers at the bottom with no purchasing power; without an increase in consumers there is no development of industry.

The profound cause is ideology, the belief of the elites in the freedom of trade, a dogma that arrived in Latin America with the philosophy of the Enlightenment and the adherence of the great leaders of independence to the principle of political and economic liberalism.

To the dogma of liberalism is added the fact that the elites manage to maintain a system of values and a socio-racial hierarchy through liberalism that ensures control of land and labour ownership while remaining in power.

Attempts to resist

The exploited majority tries to resist through revolts that are generally subdued in blood; more generally, it is in discretion that they revolt by sabotaging production or by fleeing after accumulating debt.

It must be remembered that these working classes are fragmented by geography, weakened because community structures have been broken, on the other hand it is very difficult to mobilize when there is a coexistence of several forms of work. All this often leads to forced displacement, impoverishment, many families are broken up, making more and more single mothers who are heads of families and work in the domestic economy of the cities or large towns, while fathers become migrant or seasonal workers, thus making the situation of their children precarious.

Conclusion

Around 1850, private property, and therefore the rich and the strongest, triumphed, even though the constitutions proclaimed the ideals of equality and freedom. The liberalism of the years 1850 to 1870 is in fact the era of freedom for the powerful and the era of democratic illusion for the majority of the population.

Annexes

References

[1] Aline Helg - UNIGE

[2] Aline Helg - Academia.edu

[3] Aline Helg - Wikipedia

[4] Aline Helg - Afrocubaweb.com

[5] Aline Helg - Researchgate.net

[6] Aline Helg - Cairn.info

[7] Aline Helg - Google Scholar

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