Foreign Predominance Among Overseas Traders in Nineteenth-Century Latin America

Abstract

Writing of nineteenth-century Peru, historian Jorge Basadre observed, “To discuss the commercial life of the country is to discuss the role of the foreigner.” Historian Francisco Calderón similarly stated that during the late nineteenth century, “it may be affirmed that various foreign houses with great capital generally dominated Mexican overseas commerce.” A visitor to nineteenth-century Brazil remarked of Rio de Janeiro's foreign trading houses, “these large firms are the main prop of Brazilian commerce; almost every shopkeeper in the country is, more or less directly, dependent on them.” Nor were Peru, Mexico, and Brazil atypical. In almost every Latin American nation, foreigners dominated international trade during the nineteenth century. As the above authorities imply, this domination was not only economic but numerical: the majority of overseas traders in most Latin American nations were aliens (only Colombia constituted a clear-cut exception). Foreign numerical domination among overseas traders may have had a profound effect on Latin American development.