ABSTRACT
This chapter focuses on the nature of the economic, political and social institutions established in the colonial Latin America and their heritage. It discusses the debates on the nature of the colonial regime. The chapter examines the major economic and political institutions of the colonial era. It evaluates the heritage of colonial institutions. It also examines the nature of the institutions and evaluates if they can be considered as mercantilist, feudal or capitalist. The chapter also discusses the different institutions established in the colonial era. Diverse views exist on the nature of the colonial regime. Governance is associated to the delivery of democracy, free markets and socio-economic equality. A debate exists in Latin America about the extent to which the institutions established during the colonial period have contributed to the achievement of those objectives. The conquest and colonization of America by Spain and Portugal is associated to mercantilism.
