Individual action and the ‘encomienda’ system

The essential features of what was to become the social structure of the Latin American countries originated in the Spanish conquest itself and in the institutions established by the Spaniards and Portuguese to create an economic base which would consolidate their conquest of the new lands.

The circumstances attending the lengthy process of Spain's reconquest of her territory from the Moors permitted the creation of a highly centralised state, although the different regions of the Peninsula retained markedly feudal characteristics. Compared with other regions of Europe, commercial capitalism had made a belated appearance in the Iberian Peninsula. In Portugal the development of commercial capitalism was intimately bound up with the monarchy from the very beginning.1 By basing its strength on commercial activities and becoming the promoter of a grand commercial design, the Portuguese monarchy achieved autonomous development within the Peninsula. However, placing commercial activities under the aegis of the State led to a centralism not very different from that of Spain.

Adventurous spirits from all over Europe had been attracted to Spain by the war against the Moors and, at the time of the discovery of America, which coincided with the end of the Reconquest, Spain had large numbers of men able and ready to embark on military adventures likely to bring them handsome rewards.2 The conquest of the American lands was organised along the same lines and guided by the same principles as the long struggle to reconquer the homeland from the Moors.