This economic and social structure, prevalent in colonial Spanish America, revolved around large estates. These estates, often encompassing thousands of acres, were primarily dedicated to agricultural production or livestock ranching. The system typically involved a landowning elite controlling vast tracts of land and employing a large, often indigenous, workforce. An example might be a sprawling estate in Mexico dedicated to cultivating sugarcane or raising cattle, where the landowner held significant power over the lives of the laborers.
This structure was critical in shaping the social hierarchy and economic development of many Latin American countries. It provided a means of consolidating wealth and power within a small, privileged class. The benefits to the landowning class included access to cheap labor and the ability to control local resources. Historically, it solidified colonial power structures and contributed to significant social inequalities that persisted long after independence.
