Question

1.

a) Why did Latin America fall behind the US and Canada in economic development?

b) What evidence is provided by Engerman and Sokoloff thesis

c) According to Coatsworth, why is income inequality the wrong reason for explaining lack of growth in Latin America?

d) According to Coatsworth, what how was land distributed in Latin America?

e) What alternative explanation does Coatsworth give for Latin America’s falling behind in economic development?

2. a) When did Cuba increase the number of slaves brought to the country?

b) What was the main industry employing slaves in Cuba? Why did this industry expand from 1780 to 1850?

c) According to Fraginals, Klein and Engerma, why were 56% of slaves born in African in the sampled plantations (1856-1863)?

d) When did Cuba abolish Slavery? Why was Cuba one of the last countries in Latin America to abolish slavery?

3. a) What is the formula for terms of trade?

b) How did the Spanish restrict trade to and from Latin America?

c) How did trade restrictions affect the terms of trade in Latin America?

d) When did Spain stop restrictions of trade in Latin America?

Answer 1

1a) As per the hypothesis of all economic historians, it cna be noted that the initial colonial condition fo Latin America led to the failure of it. The radicaly different evolution led to a inequal gap of wealth, human capital, development of classes, political power with institutional desig and poor performance ins inudstry, trade and agriculture due to slavery led it to fall behind United States and Canada in economic development. it is futher more illutrated in the reversal fortune theory.

(b) The extend of inequality in the economics has evidences as how the opportunities were shared among the nation. Where places there were extreme inequality, the intitutions took advantage and limited the acess of the population to them so they could maintain their elite status at the cost of societal development. full economic potential was not being realised and a class of proletariat and burgeoise developed eventually. Government policies, land ownership and investments patterns were more in favor of the elite .

(c) Inequality is a wrong reason because political threats came from European settlers and they enslaved Africans and burdened the ingenious farmers. only few public goods were products so there was no access to education and noo infrastructure. the settlers were the reason as they demanded more power and privileges and lower taxes. there was no criminal jurisdiction or militarues and this helped the settlers to be elite and create the inequality. so inequality was a fallout but not a reason.

(d) There was abundance of land and income inequality. productivity on land was very low and elites dominated the colonial administration, controlled policy making and shaped institutions as and how they wanted it to be

(e)only few public goods were products so there was no access to education and noo infrastructure. the settlers were the reason as they demanded more power and privileges and lower taxes. there was no criminal jurisdiction or militarues and this helped the settlers to be elite and create the inequality.

2 a) Slavery in Cuba was related with the sugar planatation as it wa svery beneficial for the planters and as the british colonist expanded the plantation system, more slaves were impored and abput 4000 africans were imported as labour slaves.

(b) The main industry employing was the sugarcane plantatio industry which expanded it as it was profitable for the slave owners after the Haitaian Revoluion and they were subjected to strict supervision under the harshest of the conditions.

(c) Slavery was abolished in the mid 19th century when the Haiti retreated from the sugar market ad then residents chose to focus on subsistence farming . the british pressure made cuba abolish slavery.