To what extent was the economic system of colonial Latin America superior to that of British North America?IntroductionTo what extent was the economic system of colonial Latin America superior to that of colonial Latin America British North America? This essay will demonstrate how the economic system of colonial Latin America was slightly superior to that of British North America during the 18th century, due to several factors. In particular, the abundance of natural resources and the amount of political organization have proven to be important influences. Narrative The economy of Spanish America was strengthened by the export of goods to European markets. However, this was not the only source of wealth for the Spanish empire. In 1545, the Potosi mines were discovered in Peru, containing immense wealth of silver (Gale 2). A system of cheap labor, known as the encomienda, helped retain these profits. At the beginning of the silver trade, Spain had a favorable trade balance, thanks to the exchange of silver for manufactured goods. Over time, this had become less profitable, resulting in insignificant monetary gains. However, the economic structure was not the only one driving the economy. The political structure of Spain, created by the Council of the Indies, created viceroyalties (or jurisdictions of the Spanish Empire), which depended on local audiencias, corrigidores, and cabildos (Gale 2). The main role of the viceroy was to carry out the instructions of the Habsburg monarchy. This monarchy led to the weakening of the Spanish Empire, due to corruption. By 1700, the Bourbons had replaced the Habsburgs, creating reforms that would increase the amount of trade. In particular, more ports were opened within the colonies, allowing for quicker avoidance of natural resources and war debts. Therefore, the Spanish Empire was only slightly superior to the British Empire. This provides a possible answer to how much stronger it was for the British Empire, using facts and analysis. Works Cited Brinkley, Alan. American History: A Survey. Thirteenth ed. New York: McGraw, 2009. Print. Keen, Benjamin and Keith Haynes. A history of Latin America. 9th ed. Belmont: Wadsworth Cengage Learning, 2013. Print.Kennedy, David M., and Thomas Andrew Bailey. The American spirit: the history of the United States as seen by contemporaries. 12th ed. Boston: Wadsworth Cengage Learning, 2010. Print."The Formation of Latin America, c. 1492-1800." Historical reference center. Gale Group, 2003. Web. November 4, 2013. .Wood, Gordon S. The Radicalism of the American Revolution. New York: A. A. Knopf, 1992. Print.