The Open Veins of Latin America by Eduardo Galeano

The Open Veins of Latin America by Eduardo Galeano examines five centuries of economic exploitation in the region. Galeano traces how Latin America’s wealth – from oil and minerals to food and labor – has flowed to foreign powers, leaving local populations impoverished and dependent. 

The book explores the historical and systemic forces that have perpetuated inequality, showing how both external and internal pressures have shaped the continent’s struggles.

Poverty as a Consequence of the Land’s Wealth

Gold & Silver

• Colonization
  • 1492: Spain completed Reconquista, expanded to the Americas
  • Pope granted Spain and Portugal rights to exploit
  • Conquistadors became governors, establishing colonies for extraction
• Extraction
  • Civilizations destroyed; cities razed; systematic enslavement; sacred sites replaced
  • Potosí (silver city) surpassed London and Rome in size
  • 185,000 kg gold and 16,000,000 kg silver extracted (3× Europe’s reserves)
• Economic Impact
  • Most wealth went to foreign creditors, not Spain/Portugal
  • Remaining funds spent on goods/churches, not development
  • Spain declined economically; boosted European capitalism instead
• Long-Term Consequences
  • Indigenous societies and landscapes devastated
  • ~90% of native populations killed
  • African slavery increased; 10 million Africans forced to Brazil
  • Enduring poverty, ecological damage, and deep inequality

Cash Crops

• Cash crops (sugarcane, cocoa, cotton, coffee, rubber) drove European commerce
• Impact
  • All land used for cash crops → food had to be imported
  • Wealth flowed out of Latin America
  • Forests cleared and burned; soil fertility declined
  • Land became unable to sustain local food production
  • Widespread poverty and food insecurity
• Dependency on Global Markets
  • Reliance on 1-2 cash crops made countries vulnerable to price shifts
  • Independence didn’t end dependency; feudal-like systems persisted
  • Foreign powers intervened militarily to protect economic interests
  • US seized Panama, forced labor in Haiti, supported dictators in Nicaragua, bombed cities in Guatemala, annexed half of Mexico

Minerals & Invisible Power

• Economic Control
  • US relies heavily on Latin American minerals (zinc, copper, petroleum, aluminum)
  • No matter tech advances, still need the materials
  • Mining replaced plantations; profits still flow to foreign corporations
  • Foreign powers maintain influence via loans, export control, and government intervention
• Costs of Mining
  • Severe environmental damage; air and soil pollution harm local health
  • Bolivia mining towns: 50% infant mortality, life expectancy = 35, loss of smell/taste
• US Control
  • Dependence on a few exports (oil, bananas) allows US corporate manipulation
  • Prices can be dropped to enforce compliance

Development is a Voyage with more Shipwrecks than Navigators

Premature Death

• Post-Independence
  • Reduced regulations; wealth flowed directly to foreign nations
  • Latin America couldn’t compete with British manufacturing prices → local development not prioritized → became reliant on imports
  • Rising local industries (e.g., Mexico’s textiles) suppressed
• Paraguay’s Attempt
  • Paraguay pursued self-sufficiency, building infrastructure without foreign debt
  • Britain funded Argentina, Brazil, Uruguay for war against Paraguay → mass casualties, forced economic dependence
  • All left indebted to British banks
• Development
  • US protectionism discouraged imports, forcing local industry to develop
  • Latin America embraced laissez-faire, favoring exports over local development
  • US fostered internal capacity, Latin America ended with resource-draining system

Contemporary Structure of Plunder

• US Replacing Europe
  • Post-WWII: Europe rebuilding; US investment in Latin America surged
  • US corporations enjoy privileges, low taxes, profit repatriation
  • Wealth flows out of Latin America → minimal local development
• Financial Exploitation
  • 1960s banking boom: Latin American savings redirected to US
  • Foreign aid conditional on US contracts; other trade restricted
  • Loans benefit US more than local economies, perpetuating debt
• Global Inequality
  • Latin America supplies raw materials; US tariffs block local manufacturing
  • Regional inequality: urban areas prosper, rural areas stagnate