The term denotes a socioeconomic structure prevalent in colonial Spanish America and, to a lesser extent, the Philippines. It refers to large landed estates developed primarily for agricultural production. These estates were characterized by a hierarchical social structure, with a wealthy landowner at the apex and a dependent labor force, often composed of indigenous populations or mestizos, providing the workforce. For example, vast tracts of land were used for cattle ranching or cultivation of crops like wheat or sugar, the profits of which accrued largely to the owner.
The establishment and perpetuation of this system played a significant role in shaping the social, economic, and political landscapes of the regions where it took root. It facilitated the concentration of wealth and power within a small elite, while simultaneously creating a system of labor exploitation that often left the indigenous population marginalized and impoverished. Its existence highlights the complex power dynamics and social stratification that characterized colonial societies and influenced subsequent development patterns.
