Latifundismo in Latin America

Latifundismo is a key concept that allows us to understand the current problems of the agrarian structure in the region. Latifundismo had impacts that lasted over time and that today continue to influence countries’ agrarian system, being one of the main causes of the region's underdevelopment and the very unequal distribution of land. Since the Spanish conquest and development of colonies, possession of land has been linked to the notions of power and wealth[1].

The Spanish colonies established in Latin America were characterized by the implementation of a system of political and economic domination. In particular, the Spanish colonial order created an agrarian system based on the encomienda. The caste system that favored the conquistadors, religious orders and officials of the Spanish Crown gave them, among other things, the right to occupy land and force the indigenous people (who are located at the bottom of the colony's social pyramid) to work on the latifundia in exchange for evangelization. Depending on the country, the latifundia has different names: in Mexico, it is known as “hacienda”; in Chile, Argentina and Uruguay, as “estancia” and in Guatemala and Cuba, as “finca”.

Haciendas are large agricultural properties held by a landowner, also known as  "Caudillo" who has economic and political power over indigenous employees and African slaves. In haciendas, cotton, sugar and coffee were grown, among other types of crops. The life in these haciendas was based on forced labor and the "mita", the mandatory tax that indigenous people paid for working time. The hacienda was like a closed society within the colony. Inside there were shops to buy everything: alcohol, clothing, weapons, food... The workers had their houses inside and you could also find a church. Each latifundia had its own currency that could only be used within it since trade was prohibited between the haciendas. Cultures were mostly for export, particularly to large metropolises. Latifundismo is a pre capitalist model due to its main orientation to export. Many times, workers were not paid in money but in products that could be found in the latifundia. The situation of the employees was close to slavery.

Faced with those enormous agricultural holdings, the "minifundio", that is, plots of land generally of low yield belonging to small local producers, could not compete with the haciendas. Peasants could not find the economic stimulus that could help them progress and compete with huge farms. For the peasant who exploits it, the smallholding is synonymous with hunger and poverty.

Even with the wave of independence in the region, the situation did not change much, on the contrary, instead of belonging to the conquerors, many lands were granted to the Criollos (creoles) who had helped win wars of independence. The Spanish oligarchies were replaced by Creole oligarchies and elites. Later, in the first half of the 20th century, most Latin American agrarian systems were based on latifundismo. The reforms that were implemented at this time by the different governments did not drive true structural changes.

It is clear today that the agrarian structure of most Latin American countries was inherited from latifundismo. However, it is no longer large landowners who control lands but rather large agribusiness companies, banks or multinational companies. The market does not encourage owners to maximize productivity and increase investment. The owners are not subject to market pressure since they almost have a monopoly. According to a report carried out in 2017 by the NGO OXFAM[2] and quoted by the UN and FAO, the 1% of Latin American landowners concentrate more than half of the agricultural land. 

[1] Raúl Alegrett, “Evolution and trends of agrarian reforms in Latin America”, Food and Agriculture Organization of the United Nations, 1988, https://www.fao.org/4/j0415t/j0415t0b.htm. 

[2] Arantxa Guereña, “Outcasts: land, power and inequality in Latin America” (Oxfam International, 2016), https://www.oxfam.org/es/informes/desterrados-tierra-poder-y-desigualdad-en-america-latina.

Bibliography: 

Alegrett, Raúl. “Evolution and trends of agrarian reforms in Latin America.” Food and Agriculture Organization of the United Nations, 1988. https://www.fao.org/4/j0415t/j0415t0b.htm.

Carlson, Chris. “Agrarian Structure and Underdevelopment in Latin America: Bringing the Latifundio ‘Back In’”. Latin American Research Review 54, no. 3 (September 2019): 678–93. https://doi.org/10.25222/larr.860.

Chonchol, Jacques. Agrarian Systems in Latin America: From Pre-Hispanic Farmers to Conservative Modernization. Agrarian Systems in Latin America: From Pre-Hispanic Farmers to Conservative Modernization. Works and memoirs. Paris: Éditions de l’IHEAL, 1995. https://books.openedition.org/iheal/3107.

Dabène, Olivier, Frédéric Louault, and Aurélie Boissière. “Colonial Latin America”. Atlas, 2022, 10–11. https://shs.cairn.info/atlas-de-l-amerique-latine-polarisation-politique-et-crises--9782746763128-page-10.

Guereña, Arantxa. “Banished: land, power and inequality in Latin America.” Oxfam International, 2016. https://www.oxfam.org/es/informes/desterrados-tierra-poder-y-desigualdad-en-america-latina.