How did Latin American economies become more connected to world markets after 1850?

After 1850, Latin American economies underwent a profound transformation, shifting from protectionist policies toward a model of export-led growth integrated into the global market. This integration was driven by several key factors:1

• Liberalization: By the 1860s and 1870s, governments abandoned protectionist barriers in favor of free-trade liberalism, welcoming manufactured imports from Europe and the United States while focusing on the export of primary goods.1
• Foreign Investment: Massive injections of foreign capital, particularly from Britain, funded critical infrastructure such as railroads, streetcar systems, and electric networks, which were essential for transporting bulk commodities like coffee, sugar, and beef to ports.1
• Technological Innovation: The adoption of new technologies—including steamships, telegraph lines, refrigeration, and advanced mining equipment—increased production efficiency and linked Latin American regions directly to international markets.1
• Specialization: Countries increasingly focused on specific primary products, such as nitrates and copper in Chile or sugar in Cuba, though this reliance on monoculture made them vulnerable to global price fluctuations.1

While this "new order" fostered growth and urbanization, it also created significant social inequality and economic dependency.12