How did the conquest affect the economies of Mexico and Peru?

The conquests drastically transformed the economies of Mexico and Peru, introducing European economic systems and exploiting local resources.

The Spanish conquest had a profound impact on the economies of Mexico and Peru. Prior to the arrival of the Spanish, both regions had complex economies based on agriculture, trade, and tribute. However, the conquest led to the imposition of a European economic system, which was fundamentally different from the indigenous systems. The Spanish introduced the encomienda system, a form of feudalism where the Spanish were granted land and the indigenous people living on it, who were then forced to work for the Spanish in return for protection and Christianisation.

In Mexico, the Spanish exploited the rich silver mines, particularly in Zacatecas and Guanajuato, transforming the economy into one heavily reliant on mining. The silver was shipped to Spain, fuelling its Golden Age and contributing to global trade. The indigenous people were forced to work in these mines under harsh conditions, leading to a significant decline in the population. Agriculture also changed, with the Spanish introducing new crops such as wheat and sugar cane, and establishing haciendas - large estates worked by indigenous labour.

In Peru, the economy was similarly transformed. The Inca had an economy based on agriculture and a complex system of state-controlled labour called the mita. The Spanish took control of the existing mines and discovered new ones, such as the massive silver mine at Potosí. The mita system was adapted to serve the Spanish needs, forcing indigenous people to work in the mines. The extraction of silver became the backbone of the Peruvian economy, with Potosí becoming one of the largest and richest cities in the world.

In both Mexico and Peru, the Spanish conquest led to a shift from a diverse economy to one focused on the extraction of resources for export. This had long-term impacts, creating economies that were vulnerable to fluctuations in global commodity prices. The exploitation of the indigenous population and the disruption of their economic systems also had profound social and cultural impacts, the effects of which are still felt today.