ion pounds in 1913; by the end of that time period British investors owned about two-thirds of the total foreign investment in Latin America. The downside of this foreign investment was that foreign interests controlled key sectors of Latin economies (Skidmore, 1984, pp. 47-48).
Most Latin American countries obtained their independence during the 19th Century; the strongest influences during this period of nation-building were those of the American revolutionary/constitutional period and the French Enlightenment. Independence, however, only meant that power passed from the colonial governors to the large landowners. Leaders in the new countries consisted of individuals who attracted support through personal magnetism rather than through any civic-minded ideas, as in the United States or western Europe (Harris & Alba, 1974, pp. 22-25). Eventually, political parties grew up around personalities. This personalism has persisted up to the present time; as a result, the kind of democracy practiced in Latin America has always seemed alien to observers in the United States (Gillen, 1966, pp. 26-27). In addition, a tradition of paternalism carried over from colonial times, with authority figures exercising power in a fashion which distrusted the abilities of citizens under them (Harris & Alba, 1966, pp. 102-103).
In the late 19th Century, Latin American elites adhered to the principles of economic liberalism, or western style capitalism. They viewed the future economic prosperity of their countries as dependent upon the export-import relationship which had developed between their countries and the industrialized world; they also personally benefitted from this relationship since they owned the land which was producing these export products. Because they had such an enormous stake in the economic future of their countries, they used their economic power to gain political power. In countries such as Argentina and Chile, the economic...