The Open Veins of Latin America by Eduardo Galeano
Centuries of exploitation shaped Latin America’s economy, society, and inequality.
The Open Veins of Latin America by Eduardo Galeano traces the history of Latin America’s exploitation, showing how colonialism, foreign intervention, and resource extraction shaped lasting inequality. He blends historical analysis with storytelling to reveal the economic and social forces behind the continent’s struggles. Through sharp critique, he connects past injustices to the challenges Latin America faces today.
Gold & Silver
- Colonization
- 1492: Spain completed Reconquista, expanded to the Americas
- Pope granted Spain and Portugal rights to exploit
- Conquistadors became governors, establishing colonies
- Extraction
- Civilizations destroyed; cities razed; systematic enslavement; sacred sites replaced
- Potosí (silver city) surpassed London and Rome in size
- 185,000kg gold & 16,000,000kg silver (3× European 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) 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 America vulnerable to price shifts
- Independence didn’t end dependency; feudal 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 (copper, petroleum)
- No matter tech advances, still need the materials
- Mining replaced plantations; profits still flow to foreigners
- Foreign powers maintain influence via loans, export control, and government intervention
- Costs of Mining
- Severe environmental damage; pollution harms local health
- Bolivia mining towns: 50% infant mortality, life expectancy = 35, loss of smell/taste
- US Control
- Dependence on a few exports allows US corporate manipulation
- Prices can be dropped to enforce compliance
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, built infrastructure without debt
- Britain funded Argentina, Brazil, Uruguay for war against Paraguay → mass casualties, forced economic dependence
- All left indebted to British banks
- Development
- US protectionism slowed imports, forcing local industry to develop
- Others chose laissez-faire, favoring exports over developing
- US built capacity, LATAM ended with resource-draining system
Contemporary Structure of Plunder
- US Replacing Europe
- Post-WWII: Europe rebuilding; US investment in LATAM 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
