AUA Why Nations Fail - Daron Acemoglu | Page 389

themselves Liberals, after the worldwide movement of that name. What liberalism means has changed over time. But in the nineteenth century in the United States and Europe, it was similar to what is today called libertarianism, and it stood for freedom of individuals, limited government, and free trade. Things worked a little differently in Guatemala. Led initially by Miguel GarcĂ­a Granados, and after 1873 by Justo Rufino Barrios, the Guatemalan Liberals were, for the most part, not new men with liberal ideals. By and large, the same families remained in charge. They maintained extractive political institutions and implemented a huge reorganization of the economy to exploit coffee. They did abolish the Consulado in 1871, but economic circumstances had changed. The focus of extractive economic institutions would now be the production and export of coffee. Coffee production needed land and labor. To create land for coffee farms, the Liberals pushed throu