Oligarchy dominated Latin America’s political structure from 1900 to 1939. At the height of the European industrialization, Latin America became Europe’s main provider for raw materials. Mexico, for instance, provided Europe and North America with hemp, copper, and zinc. By 1910, Latin America was being integrated ever more strongly into the world of capitalist economy, given the role of “peripheral producer” of primary goods and consumer of industrialized goods from the developed nations at the center of the system. Hence, Latin American countries produced raw material in exchange for European manufactured goods, further, embedded the pattern of economic control by foreign countries.

This pattern already established due to colonialism, continued, and Latin America became more dependent on foreign country’s economy for its prosperity. However, in the minds of many political leaders, this new economic order was reasonable and endorsed, as a result of the growing dominance of liberal ideology in most parts of Latin America. In fact, due to the new ideology, throughout this phase of free-trade, political parties were established. Many political liberals who favored less centralized state rule formed liberal parties, while the traditional agricultural interests and pro church conservatives formed conservative parties.
This period reveals democratization being adopted by the traditional elite social-class. In fact, between 1900 and 1939 oligarchic regimes were widely common, among Latin America about 40% of the time. Local elites further repressed the indigenous population and middle- class groups, by completely excluding them systematically from the national political life. Chile, for instance, although it had more than one oligarchic party, competition between upper-class factions was highly competitive, since literacy requirement limited votes. Further, elite’s domination of the political system, at the same time, replaced the dominance of the local caudillo. For example, iron fisted dictator Porfirio Diaz dominated Mexico’s politics. Though, by this time, the largest classes in most countries were the urban working class, which included formal and non formal actors. As these new classes were joined by new segments of the upper class tied to industrialization and commercialization and increased involvement of and foreign investor’s new political forces were mobilized in developing new political coalitions. These issues led the development of the Mexican revolution, the first great revolutionary movements of twentieth first century.

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During the period from 1900 to 1939, Latin America was primarily controlled by an oligarchic political structure. This was a result of the region's role as a main provider of raw materials for European industrialization. Countries like Mexico supplied hemp, copper, and zinc to Europe and North America.

Latin America became increasingly integrated into the global capitalist economy, with the region functioning as a peripheral producer of primary goods and a consumer of industrialized goods from developed nations. This economic relationship further reinforced the pattern of foreign control over Latin American countries.

The dominance of liberal ideology during this time period meant that many political leaders saw this economic order as reasonable and even endorsed it. As a result, political parties emerged. Liberal parties were formed by those who favored less centralized state rule, while conservative parties were formed by traditional agricultural interests and pro-church conservatives.

This period also witnessed the democratization of the traditional elite social class. Oligarchic regimes were common, representing about 40% of the time in Latin America between 1900 and 1939. These regimes actively repressed indigenous populations and excluded middle-class groups from national political life.

In countries like Chile, where multiple oligarchic parties existed, competition between upper-class factions was intense due to voting restrictions set by literacy requirements. The dominance of the elite in the political system replaced the rule of local caudillos (military or political leaders).

Interestingly, by this time, the largest social classes in most countries were the urban working class, which included both formal and informal actors. The growth of industrialization and commercialization also led to the emergence of new segments of the upper class tied to these developments. These changes in social structure and economic forces mobilized new political actors and led to the Mexican revolution, one of the first significant revolutionary movements of the 20th century.