The Guano Industries in Peru and Chile for AP World History

Jan 26

2 min read

The guano industries in Peru and Chile are an illustrative example for the Global Economic Development topic in Unit 6 of AP World History. You could reference this example on your AP World History test.

birds and guano on a rock — 1859000020/Shutterstock

In the 19th century, the guano industries in Peru and Chile emerged as prime examples of export economies heavily reliant on trade with industrial imperial powers, yet characterized by an unfavorable trade balance. Guano, a valuable fertilizer derived from seabird excrement, became a sought-after commodity for agricultural use in Europe and North America due to its high nutrient content.

Peru and Chile possessed abundant reserves of guano-rich islands along their coastlines, which were exploited by European and North American companies, primarily British, under colonial and semi-colonial arrangements. The extraction and export of guano became a lucrative enterprise, with European powers dominating the global trade in this vital agricultural input.

Despite the significant quantities of guano exported to industrial imperial powers, the trade relationship was marked by an unfavorable trade balance for Peru and Chile. While these countries supplied raw guano to industrialized nations, they were compelled to import manufactured goods and technologies at high costs, resulting in a net outflow of wealth and resources.

The unfavorable trade balance had profound economic consequences for Peru and Chile, exacerbating dependency on industrial imperial powers and hindering domestic industrial development. The extraction of guano also had detrimental environmental impacts, as seabird populations dwindled and ecosystems were disrupted by intensive mining operations.

The guano industries in Peru and Chile exemplify the exploitative nature of colonial economic relationships, where colonies served as resource extraction zones for the benefit of industrial imperial powers. Despite the economic gains derived from guano exports, Peru and Chile faced economic subordination and environmental degradation, underscoring the enduring legacy of colonialism in shaping global economic structures and inequalities.