This colonial labor system, implemented by the Spanish in the Americas, granted conquistadors tracts of land and the right to compel indigenous populations to provide labor or tribute. In exchange, the Spanish were theoretically obligated to protect and Christianize the native peoples under their control. A prominent example involved Spanish settlers in regions like Mexico and Peru extracting labor and resources from native communities.
The historical significance lies in its role as a primary driver of the exploitation of indigenous populations and the accumulation of wealth by the Spanish colonizers. It contributed significantly to the demographic decline of native communities due to disease, overwork, and displacement. It also established a rigid social hierarchy with the Spanish at the top and native peoples at the bottom, shaping the socio-economic landscape of colonial Latin America for centuries.