In 1540 a small number of Spaniards founded the city of Arequipa in southwestern Peru. These colonists, later immigrants, and their descendants devoted considerable energy to exploiting the surrounding area. At first, like many other Spaniards in the Americas, they relied primarily on Indian producers; by the late 1500s they had acquired land and established small farms and estates. This, the first study to examine the agrarian history of a region in South America from the mid-sixteenth through late-seventeenth century, demonstrates that colonials exploited the countryside as capitalists. They ran their rural enterprises as efficiently as possible, expanded their sources of credit and labor, tapped widespread markets, and lobbied strenuously to influence the royal government. The reasons for such behavior have seldom been explored beyond the colonists' evident need to sustain themselves and their dependents. ?Arequipa's case suggests another fundamental cause of capitalist behavior in...

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