Potosí mita
Why Nations Fail: The Origins of Power, Prosperity, and PovertyThe Potosí mita was a Spanish colonial labor draft that compelled Indigenous men from a vast Andean catchment area to work in the silver mines of Potosí. Built by Viceroy Francisco de Toledo from an Inca institution of rotational labor, it became one of the colonial period’s largest and most burdensome systems of exploitation, enriching the Spanish Crown while leaving a lasting imprint on the region’s economic geography.
Silver and the demand for labor
The system grew out of the discovery of silver at Potosí. In 1545, while searching for an Indigenous shrine in the Andes, Diego Gualpa was thrown to the ground by a sudden gust of wind; a cache of silver ore appeared before him. The Spanish named the immense mountain El Cerro Rico, “The Rich Hill.” The city that grew around it reached a population of 160,000 by 1650, larger than Lisbon or Venice at the time. Extracting silver on that scale required a vast supply of miners.
The Spanish initially organized Indigenous people into encomiendas, assigning one to each conquistador who had accompanied Pizarro. This institution organized and controlled labor in the early colonial period, but the growing demands of the mines called for another system. Appointed to address the labor shortage, Viceroy Francisco de Toledo arrived in Peru in 1569 and spent five years traveling through the territory and investigating its administration. He also commissioned a large survey of the adult population, preparing the ground for a more systematic labor draft.
From Inca rotation to colonial compulsion
Toledo first moved almost the entire Indigenous population into newly established towns called reducciones, or “reductions.” Concentrating people in these settlements made their labor easier for the Spanish Crown to mobilize. He then revived and adapted the Inca mita, a Quechua word meaning “a turn.” Under the Inca system, forced labor on plantations supplied food to temples, the aristocracy, and the army; in return, the Inca elite provided famine relief and security. Toledo redirected this rotational obligation toward colonial silver production.
The resulting Potosí mita was not merely a continuation of the earlier arrangement. Toledo defined a catchment area of about 200,000 square miles, extending from central Peru across much of what is now Bolivia. Within it, one-seventh of the male inhabitants were required to work in the Potosí mines. The designated territory overlapped the Inca empire’s heartland and included Cusco, its capital. A labor obligation once organized around the needs of Inca institutions had thus been reshaped to serve Spanish imperial extraction on a much broader and more onerous scale.
A wider regime of extraction
The mita operated alongside other measures that pressed Indigenous people into the colonial economy. Toledo consolidated the encomienda into an annual head tax: every adult man owed a fixed sum in silver. The tax encouraged people to seek wages and, by increasing the supply of labor, helped reduce wages for Spanish landowners. A system called repartimiento de mercancias compelled local people to buy goods at prices set by Spaniards. Toledo also introduced the trajin, which required Indigenous people to carry heavy loads—such as wine, coca leaves, and textiles—for Spanish business ventures, substituting human carriers for pack animals.
Together, these institutions made extraction a system rather than a single labor demand. Spanish authorities expropriated land, compelled work, imposed taxes, paid low wages, and forced the purchase of goods at high prices. The book presents the mita as one element in a wider colonial structure intended to hold Indigenous living standards near subsistence and transfer income beyond that level to Spaniards. The resulting wealth flowed to the Crown and enriched conquistadors and their descendants, while the system contributed to Latin America’s extreme inequality.
Endurance and legacy
The Potosí mita endured through the Spanish colonial period and was abolished only in 1825. Its legacy, the book argues, can still be traced in the contrasting circumstances of Calca and nearby Acomayo, two mountainous Peruvian provinces inhabited by Quechua-speaking descendants of the Incas. Their residents grow the same crops, but in Calca they sell produce in markets, while in Acomayo they largely grow food for subsistence. Acomayo is poorer, and its residents consume about one-third less than those in Calca.
The differences are visible in access as well as income. The road to Calca is surfaced; the road to Acomayo is in disrepair, and travel beyond Acomayo requires a horse or mule. The book identifies a major historical distinction between the provinces: Acomayo lay inside the Potosí mita’s catchment area, while Calca did not. It connects that inherited institutional geography to unequal development without treating the provinces’ present-day circumstances as identical in every respect.
The mita’s significance therefore lies both in its direct mobilization of miners and in the wider historical pattern it represents: colonial powers adapted existing institutions to extract labor and resources, and the resulting arrangements could continue to shape economic opportunity long after the original labor obligation ended.