The Development of British Interests in Chile's Norte Chico in the Early Nineteenth Century

Abstract

By 1820, much of Spanish South America had achieved independence, and Spain was on the defensive in those areas where her flag still flew. Amongst the countries that gained their independence in this period was Chile, which after the battle of Maipú in April 1818, faced no further threats to its existence from Spain. For many of the new nations, the period immediately after independence was one of political instability, shading into civil war, and Chile was no exception. However, in comparison with many of its neighbors, the period of instability was short, and the physical destruction not great.

The Chilean Economy during the 1810–1830s and its Entry into the World Economy

“…The economic relationship between South America and the world was above all a commercial one. We do not dismiss the significance of foreign investment, but it remains the case that the integration of Chile into the international economy occurred without receiving large amounts of capital from abroad (Mayo, ).…”

“…It is evident from this data that the United States became an important partner for Chile. Other authors have assumed that Britain was overwhelmingly the primary receiver of Chilean exports at this stage (Cavieres, ; Mayo, ). In turn, copper bars, which were extensively exported by Chile, were frequently sent to the United States (FO 16/5, 22 December 1826).…”

“…As a consequence of the lack of banking facilities, commercial interest rates were 25–35 percent per annum. These high rates had a detrimental impact upon investment, entrepreneurship and trade (Bauer, : 187–189; Mayo, : 380–382). Likewise, exporters to Chile received credit from European merchants (Llorca‐Jaña, ).…”

“…Furthermore, British miners and merchants remained strong in the copper industry for years to come. Moreover, 1836 saw the establishment of the Copiapo Mining Company, based on the contacts previously made by the earlier companies, and which became one of the most successful British enterprises in Chile (Mayo, ).…”

Grounding Geographies of Economic Globalisation: Globalised Spaces in Chile's Non‐traditional Export Sector, 1980–2005

“…Although the process of globalisation is not new to Chile, since it has been closely linked to the international economy since the colonial period, the current wave – since the early 1980s – has revealed a strong tendency to diversify the export‐oriented economy towards new products and away from nitrates and copper that have dominated Chilean trade since the mid‐nineteenth century, with a strong presence of foreign‐owned firms and merchant houses, for example, Huth, Gibbs and Balfour Williamson (see Barton 2000; Mayo 2001; Collier & Sater 2004). This sector is commonly known as the non‐traditional agricultural exports (NTAX) sector given the importance of fruits and wines, also forestry products (Barham et al 1992; Murray 2002); the inclusion of salmon exports leads to a further definition (that leaves the forestry sector to one side): non‐traditional food exports (NTFX).…”