Broadly speaking, historians have considered the development of British business on the west coast of South America in the 19th and 20th centuries with a strong focus on Chile and Peru and in the light of two different historiographical approaches: debate over the organization of British business overseas and controversies over informal imperialism and dependency. Initially, the most visible examples of British business influence were merchants who arrived at the time of independence in the early 19th century, although from the middle of the century there was also significant investment in government bonds (sovereign debt). After the War of the Pacific (1879–1883), “freestanding companies” and investment groups, often organized by commercial houses handling Latin American exports, became the main vehicle for British capital flows. The activities of merchants and other suppliers of business services, such as shipping firms, banks, and insurance companies, together with the development of freestanding companies in railways and resource extraction after the War of the Pacific, certainly accelerated the incorporation of Peru and Chile into the expanding global economy. While it is difficult to find concrete examples of direct intervention by British firms in local politics, the growth of foreign business did set constraints on the autonomy of Latin American governments, which became dependent on the direct and indirect income from commodity exports. However, it also provided opportunities for local politicians and business elites, especially in the 1880s and the decade before the First World War when London financial institutions were seeking new openings for direct investment overseas. During the interwar period, British business influence began to fade as merchants and banks ran into greater difficulties, and US participation in the west coast economies, especially in resource extraction (mining and oil), grew. Although some major British multinational firms did invest in industry in Peru and Chile following the Second World War, little British business remained in the region after the 1970s.
