Question

During the independence movements of many Latin American countries, many wealthy citizens moved back to Spain. Explain why this presented a problem for the new nations.

Answer 1

Answer:

This was a problem because the wealthy citizens of the new Latin American countries possessed much needed capital and skills to develop the new nations.

The rulers of the new nations needed these wealthy citizens to provide their capital and labor to start new development processes in agriculture, industry, infraestructure, and so on. When they moved back to Spain, these countries lost the opportunity to make use of this labor and this capital. This contributed indirectly, to the slow advancement of most Latin American nations.