exerpt:
"Latin America’s colonial history -- Spain, Europe, the United States -- not only divided countries from one another, it also left a sharp internal division within the countries, every one, between a very wealthy small elite and a huge mass of impoverished people. The correlation to race is fairly close. Typically, the rich elite was white, European, westernized; and the poor mass of the population was indigenous, Indian, black, intermingled, and so on. It's a fairly close correlation, and it continues right to the present.
The white, mostly white, elites -- who ran the countries -- were not integrated with, had very few relations with, the other countries of the region. They were Western-oriented. You can see that in all sorts of ways. That's where the capital was exported. That's where the second homes were, where the children went to university, where their cultural connections were. And they had very little responsibility in their own societies. So there’s a very sharp division.
You can see the pattern in imports. Imports are overwhelmingly luxury goods. Development, such as it was, was mostly foreign. Latin America was much more open to foreign investment than, say, East Asia. It’s part of the reason for their radically different paths of development in the last couple of decades.