In the context of AP World History, the term refers to large landed estates in Spanish America, developed primarily from the 17th century onward. These estates produced agricultural goods, such as wheat, grapes, and livestock, largely for local consumption and sometimes for export to Europe. The system involved a social hierarchy with a Spanish or Creole owner (hacendado) at the top and a large workforce of indigenous peoples, mestizos, and sometimes enslaved Africans, who were often bound to the land through debt or other forms of coercion.
The rise of these estates significantly shaped the economic and social structure of colonial Latin America. They provided a source of wealth and power for the elite, contributing to a highly stratified society. Furthermore, they replaced or modified existing indigenous systems of agriculture and land ownership, leading to significant cultural and demographic changes. The labor systems associated with these estates were a major factor in the exploitation and oppression of indigenous populations.