1 - Latin American Economic Development

Summary

The expression “Latin America,” whose origin goes back to the mid-nineteenth century, at first had little more than geographical significance – it referred to all those independent countries south of the Río Grande in which a language derived from Latin (i.e., Spanish, Portuguese, and French) was predominantly spoken. In this original meaning, the only characteristics common to the countries of Latin America were their location in the Western Hemisphere and the origins of their language. In many respects the differences between the countries were considered to be as important – if not more so – as what they shared.

These differences – whether of size, population, ethnicity, natural resources, climate, or level of development – are still very important, but it has also become clear that the republics are held together by much more than geography and language. The shared colonial experience, as divisions above all of the Spanish or Portuguese empires, was crucial in shaping the economic and political destinies of the new republics after independence. The pattern of development in the nineteenth century, based on the export of natural resources to the industrialized countries, reinforced this sense of a shared past.