Following the Wars of Inpederrndence, the new nations of South America were created out of the old Spanish Empire. The new leaders, however, found that the practice of government on a day-to-day bases was not as exciting as the Age Of Enlightenment or the fight for Independence forecast. Idealism did not match reality.

Government had to be created with written constitutions, shared political power, bureaucratic systems, law courts and a means of taxation. What gradually emerged, with trial and error, was a republican form of government with an elected president. The government in turn was highly centralized with very restrictive suffrage [vote]. The debate was always between federalism or republican government vs. constitutional monarchy. Political parties emerged, being either Liberal or Conservative. The setting up of a new country was a difficult task.

Economically the countries quickly adopted free trade and capitalism. Industrialization was next to follow. The key word was “modernization”. Foreign investment flowed in, be it from Britain, Germany, France or the United States. Foreign money was invested in all realms of the state from in the infrastructure [bridges, roads, etc.] to financial institutions. This also led to huge national debts. With foreign capital came the importation of material goods from Europe and America. At the same time, South American countries had to produce goods for export, such as fruit, cocoa, sugar, beef, or copper and nitrates. In this rush to modernize, the economy had to become independent after hundreds of years of being under the protection of Spain or Portugal and the mercantile system.

The only trouble with the new economy was the effect on the poor or the masses. They were left behind while the landowners and industrialists became wealthy. A huge gap would be created between the rich and poor, creating an unequal distribution of wealth. Another by-product of this rush to modernize was the dependence on foreign capital, creating a dependent or reflex economy. This new found independence actually led to dependence on the United States.

Modernization also led to the growth of positivism and Social Darwinism. Positivism is a 19th century ideology that originated in France. It was founded by Auguste Comte (1798-1857), a French philosopher and sociologist. Positivism affirmed the inevitability of social innovation and progress. According to Comte, progress was attainable through the acceptance of scientific social laws codified by positivism.

In the rush to industrialize and modernize, a new society had to be created without Spain or Portugal. Important was the gradual growth of the “folk culture” of the “folk societies”. “Folk Culture” was a common way of life shared by ordinary people (not elite or wealthy). It was based on common language, heritage, beliefs, and means of facing daily life. It instilled a feeling of unity, loyalty and tradition within the folk. They formed self-sufficient folk societies with a well-defined moral order. In time, each new country had to develop its own customs, traditions and conventions. Each country had to define what it was to be both an American or a Chilean etc. The concept of nativism would slowly emerge.

Over the next one hundred years, individual countries emerged with their own unique culture; however, they had common characteristics:

  1. Republican governments with strong executives
  2. High degree of centralization within a federal system
  3. Restrictive suffrage
  4. Presence of a strong military
  5. Endorses capitalism and socialism
  6. Unequal distribution of wealth
  7. Government for the economic elite at the expense of the poor