The partitioning of the New World would have a profound effect on American history. The Spanish crown in particular was generous in doling out land grants to those who had curried favor with the crown. Most of those in power in Spain had little idea as to the exact size of the grants they were giving out nor to the quality of the land being given; basically, this was a way to give something of value that cost the Crown little or nothing. In many cases, the land had not yet been settled, so what was being given only belonged to Spain in theory.
As Latin America moved forward and won its independence from Spain, the vast majority of the land remained in the hands of a few rich and powerful families. It’s been said that 90% of the land was in the hands of 10% of the people; I’m not sure those percentages have research to support them, but they give us an idea of the situation. Over time, these powerful families would write the constitutions and laws, giving themselves the political power they needed to retain their holdings.
This simple fact had a decisive impact on the socio-political structure of Latin America. Those in power had little interest in reform. Those who called for reform were ignored, exiled, imprisoned or killed. In the 20th century, the situation was even simpler. All the elites had to do was label any reform movement as communism, and Big Brother from the North would swoop in and quash any attempts at change.
Throughout modern history, much land in Latin America has been unused or underused due to the disproportionate distribution of land. Many reforms have been attempted and some have been successful. But there’s still a lot that needs to be done to undo centuries-old injustices in this area.