After 1840, Britain established free trade. Latin America exported goods to Britain & their value grew. The increased revenue from these trades allowed Latin America to renegotiate and again service the loans from their independence era.
British & other European markets grew rapidly. British firms offered Latin America credit, insurance, transportation for goods once in country, & marketing facilities.
The formation of strong national political structures proved more difficult than Latin America or Britain had expected.
British Influenceon Latin American
Eventually, liberalism had a profound affect on Latin America and its economy; i.e., opening markets, freeing land & labor from colonial restrictions, abolishing slavery, reducing the power of the Catholic church.
Gradually more powerful national states were constructed. However, in Mexico a liberal constitution caused a civil war.
Financial connections with Europe enabled Latin America to take care of their military and begin public works.
However, the standard of living in rural areas tended to deteriorate. European immigrants were preferred for jobs and as tenants.
Latin American Wars
The provincials relied on the gauchos to form their armies. In the 1820s, Juan Manuel Rosas dominated the provincial army.
Rosas maintained a balance of power through shifting alliances of the caudillos. He worked for the upper class, seduced the lower class, and killed or imprisoned the middle class. Rosas was elected governor of Buenos Aires in 1829.
In 1837, Rosas joined Chile in the war against Peru-Bolivia confederations. Rosas eventually had to withdraw.
Latin American Wars
Simone Boliva, an aristocrat wanted freedom and unity for Latin America. He liberated Columbia and Venezuela.
Boliva believed sovreignty belonged to the people. The people turned on him. On his deathbed he prophesied that America could not be governed.
San Martin led an army over the Andes to free Chile & Peru. In 1821, Peru declared independence. He believed the nation should not be governed by the military.
Benito Juarez, an Indian, became President o Mexico. Aided by France, the conservatives waged war against him.