Mexico and Brazil
Economic cost of the wars of independence
- Mexico’s war (1810–1821) caused heavy destruction to mines, ranches, and roads; silver output fell sharply and government revenues collapsed, producing chronic debt and fiscal instability in the 1820s.
- Brazil’s path to independence (1822) was negotiated rather than fought on a large scale, so infrastructure and export capacity remained mostly intact; the state still faced start-up costs, but war damages were far lower than in Mexico.
Definition
Infrastructure
The fundamental physical and organizational structures, such as transportation, communication, and energy systems, needed for a society’s economy to function effectively.
Establishment of new trade relations
- After independence, both countries shifted toward British finance and markets. Mexico struggled to revive mining and borrowed heavily from British lenders; Brazil deepened commodity exports first in sugar and then in coffee, supported by British shipping and credit.
- Tariff policy and treaties favored foreign merchants in the short term. Mexico’s weak fiscal base limited protective policies, while Brazil’s early opening of ports (from 1808) meant rapid insertion into Atlantic trade under British influence.
Definition
Tariff Policy
A government’s system of taxing imported or exported goods to protect domestic industries, raise revenue, or regulate trade.
