In the United States, once the land had been taken from its original inhabitants, much of it was sold or given away to small landholders; by contrast, in Latin America the Old World culture of powerful landowners and serfs was imposed, which led to inequality. On top of this, the European settlers introduced another geographical problem that to this day holds many countries back from developing their full potential: they stayed near the coasts, especially (as we saw in Africa) in regions where the interior was infested by mosquitoes and disease. Most of the countries’ biggest cities, often the capitals, were therefore near the coasts, and all roads from the interior were developed to connect to the capitals but not to one another.
In some cases, for example in Peru and Argentina, the metropolitan area of the capital city contains more than 30 percent of the country’s population.
[…]
Mexico is growing into a regional power, but it will always have the desert wastelands in its north, its mountains to the east and west, and its jungles in the south, all physically limiting its economic growth. Brazil has made its appearance on the world stage, but its internal regions will remain isolated from one another; and Argentina and Chile, despite their wealth of natural resources, will still be far farther away from New York and Washington than are Paris and London.
[…]
Their total population (including the Caribbean) is 600 million people, and yet their combined GDP is equivalent to that of France and the UK, which together comprise 120 million people.
[…]
At its widest point, west to east, from Brazil across to Peru, it is 3,200 miles. On the western side is the Pacific, on the other the Gulf of Mexico, the Caribbean Sea, and the Atlantic. None of the coastlines have many natural deep harbors, thus limiting trade.
Central America is hill country with deep valleys, and at its narrowest point is only 120 miles across. Then, running parallel to the Pacific, for 4,500 miles, is the longest continuous mountain chain in the world—the Andes. They are snow-capped along their entire length and mostly impassable, thus cutting off many regions in the west of the continent from the east. The highest point in the Western Hemisphere is here—the 22,843-foot Aconcagua Mountain—and the waters tumbling down from the mountain range are a source of hydroelectric power for the Andean nations of Chile, Peru, Ecuador, Colombia, and Venezuela. Finally, the land descends, forests and glaciers appear, we are into the Chilean archipelago, and then—land’s end. The eastern side of Latin America is dominated by Brazil and the Amazon River, the second longest in the world after the Nile.
[…]
The relative flatland east of the Andes and temperate climate of the lower third of South America, known as the Southern Cone, are in stark contrast to the mountains and jungle farther north and enable agricultural and construction costs to be reduced, thus making them some of the most profitable regions on the entire continent—whereas Brazil, as we shall see, even has difficulty moving goods around its own domestic market.
[…]
In the nineteenth century, many of the newly independent countries broke apart, either through civil conflict or cross-border wars, but by the end of that century the borders of the various states were mostly set. The three richest nations—Brazil, Argentina, and Chile—then set off on a ruinously expensive naval arms race, which held back the development of all three.
[…]
Particularly bitter is the relationship between Bolivia and Chile, which dates back to the 1879 War of the Pacific in which Bolivia lost a large chunk of its territory, including 250 miles of coastline, and has been landlocked ever since. It has never recovered from this blow, which partially explains why it is among the poorest Latin American countries. This in turn has exacerbated the severe divide between the mostly European lowlands population and the mostly indigenous peoples of the highlands.
[…]
Despite the fact that Bolivia has the third-largest reserves of natural gas in South America it will not sell any to Chile, which is in need of a reliable supplier. Two Bolivian presidents who toyed with the idea were thrown out of office and the current president, Evo Morales, has a “gas to Chile” policy consisting of a “gas for coastline” deal, which is dismissed by Chile despite its need for energy. National pride and geographical need on both sides trump diplomatic compromise.
[…]
Guatemala claims Belize as part of its sovereign territory but, unlike Bolivia, is unwilling to push the issue. Chile and Argentina argue over the Beagle Channel water route, Venezuela claims half of Guiana, and Ecuador has historical claims on Peru.
[…]
In its far north, Mexico has a two-thousand-mile-long border with the United States, almost all of which is desert. The land here is so harsh that most of it is uninhabited.
[…]
All Mexicans know that before the 1846–48 war with the United States the land that is now Texas, California, New Mexico, and Arizona was part of Mexico. The conflict led to half of Mexico’s territory being ceded to the United States. However, there is no serious political movement to regain the region and no pressing border dispute between the two countries. Throughout most of the twentieth century they squabbled over a small piece of land after the Rio Grande changed course in the 1850s, but in 1967 both sides agreed the area was legally part of Mexico.
[…]
Mexico’s major mountain ranges, the Sierra Madres, dominate the west and east of the country and between them is a plateau. In the south, in the Valley of Mexico, is the capital—Mexico City—one of the world’s megacapital cities with a population of around 20 million people.
On the western slopes of the highlands and in the valleys the soil is poor, and the rivers of limited assistance in moving goods to market. On the eastern slopes the land is more fertile, but the rugged terrain still prevents Mexico from developing as it would like. To the south lie the borders with Belize and Guatemala.
[…]
The cartels responded by creating a land route—up through Central America and Mexico, and into the American Southwest. This in turn led the Mexican drug gangs to get in on the action by facilitating the routes and manufacturing their own produce. The route partially follows the Pan-American Highway, which runs south to north up the continent. Originally designed to move goods in each direction to a variety of countries, it is now also used to move drugs north to the United States. The multibillion-dollar business sparked local turf wars, with the winners using their new power and money to infiltrate and corrupt the Mexican police and military and get inside the political and business elites.
[…]
Central America has little going for it by way of geography but for one thing. It is thin. So far, the only country to gain advantage from this has been Panama, but with the arrival of new money from China that may be about to change.
[…]
In 1914, the newly built, fifty-mile-long, American-controlled Panama Canal opened, thus saving ships an eight-thousand-mile journey from the Atlantic to the Pacific Ocean and leading to economic growth in the canal region. Since 1999, the canal has been controlled by Panama, but is regarded as a neutral international waterway that is safeguarded by the US and Panama navies. And therein, for the Chinese, lies a problem.
[…]
The Panama Canal may well be a neutral passageway, but at the end of the day, passage through it is dependent on American goodwill. So, why not build your own canal up the road in Nicaragua? After all, what’s $50 billion to a growing superpower?
[…]
In the fall of 2016 the project was not going well. Mr. Wang lost an estimated 85 percent of his fortune in the Chinese stock market crash of September 2015. Most construction work was delayed, but all sides insisted the project would succeed.
[…]
Beijing now sells or donates arms to Uruguay, Colombia, Chile, Mexico, and Peru, and offers them military exchanges. It is trying to build a military relationship with Venezuela, which it hopes will outlast the Bolivarian revolution if and when it collapses. The arms supplies to Latin America are relatively small-scale but complement China’s efforts at soft power. Its sole hospital ship, Peace Ark, visited the region in 2011. It is only a three-hundred-bed vessel, dwarfed by the American one-thousand-bed version that also visits, but it was a signal of intent and a reminder that China increasingly “gets” soft power.