Imperialism vs. Colonialism in Peru’s Economic History

Since the start of this course I’ve been wondering about the difference between the Inca’s expansion and conquest of other native groups, and the Spanish conquest of the Incas. During one class in Cusco, we entertained a brief discussion about the distinction between imperialism and colonialism. In José Carlos Mariátegui’s essay, “Outline of the Economic Revolution,” he dives into the complex history of Peru’s economy and may allude to some of the distinguishing factors. As I read his work, it became clear how the different conquests—Incan and Spanish—and their lasting effects have shaped Peru’s social and economic fabric.

The Inca Empire was a powerhouse of strategic organization and control. They conquered many different indigenous cultures, creating a vast and centralized empire. The Incas built extensive roads and advanced agricultural systems, which helped distribute resources and unify their territory. Their society was hierarchical, with a strong sense of communal living (primitive communism?). The ayllu system, based on reciprocal practices, ensured that everyone had what they needed. However, the Inca rule wasn’t without its downsides. Those who resisted were likely wiped out and tribes that submitted were often moved around, and their leaders were replaced with Inca officials to keep control. This centralization created a highly organized but rigid society where people had little chance for upward social mobility.

The Spanish conquest, on the other hand, turned everything upside down. They dismantled the Inca’s organized system and set up their own, focusing on extracting wealth, mainly gold and silver. The Spanish introduction of the encomienda system forced indigenous people to work for Spanish landowners, creating a feudal society. Also, a new social order based on race emerged, with the Spanish and their descendants at the top and indigenous people at the bottom. The economy became all about extraction and export, with little thought given to local development.

Further, the discovery of guano and nitrates in the 19th century Peru brought another big change. These materials were in high demand for agriculture and industry in Europe. However, much like during the Spanish rule, the wealth generated from guano and nitrates mostly benefited foreign interests and a small local elite. This boom created a new capitalist class in Peru, linked closely to the old aristocracy. The economy became dependent on these exports, and while some people got very rich, the majority of Peruvians saw little benefit.

When comparing the impacts of the Inca and Spanish conquests both greatly changed Peru’s society and economy, but in different ways. The Incas created a centralized, communal society, while the Spanish broke it apart and exploited its resources. The guano and nitrate boom continued this trend of extraction but also introduced capitalist elements, yet still favored foreign investors and local elites over the broader population. While each period left its mark, there seem to be clear distinctions between them. The Inca period was about unity and community, the Spanish period about exploitation and fragmentation, and the guano and nitrate era about economic dependency and inequality. Understanding these historical shifts helps us see why Peru is the way it is today.

Questions: Is there a distinction between imperial expansion and colonizing other nations? Does the economic impact have anything to do with it? Does the ‘race’ factor play an important role?