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This essay is a work in progress.
This is a long, complicated history.
In the "Latin American" context, the thing I think can be a misunderstanding when studying Marxism is that we use the term nation instead of ethnicity. It is confusing because nationalism and national identity in the sense that is commonly used in Latin America is not the same as what Marxists are talking about when they say nation. Actually, certain anti-indigenous biased Latino Marxists have failed to notice this distinction. Can anyone truly say "Mexico" is a nation? Of course not. It is a prisonhouse of nations.
Marxists decrying anti-indigeneity are saying a lot of the same things but with different words than Liberals, only that we're not coming from a literal perspective about it. Principled Marxists would label these types of nationalism (Latino nationalism, Mexican nationalism, Hindu nationalism, Great Russian nationalism) reactionary bourgeois nationalisms. So you can really see how entities such as the American imperialists and their agencies have a vested interest in Latinidad and anti-indigenous chauvinism in "Latin America".
I had a suspicion that the reason that "Latin America" has not achieved socialism (with the exception of Cuba) is because socialism will not be achieved as "Latin America". Latinos will be there, but Latinos will not be in the forefront. Indigenous people will be in the forefront. Latino nationalism has nothing to stand on, and is mainly aggravated by Yankee aggression. Until indigenous people rise to the forefront of the revolution, then it's only ever going be a social democracy at best that is achieved: pink waves and right wing reactions, back and forth, back and forth. Until "Latin America" faces its colonial legacy.
Because Latinidad and Mestizaje and all that nonsense inherently privileges the Latinos/Mestizos and Spanish people and hispanohablantes, it's always going to be about these people having all the wealth and capital, so socialism is impossible in those conditions. For indigenous peoples, Latinidad is destined to be bourgeois. Fascists know this, and that is why the Hispanistas exist.
Mexicanidad (Mexican nationalism) is Latinidad (Latino nationalism) for Mexico. Chicanismo (Chicano nationalism) is Mexicanidad (Mexican nationalism) in the United States. Many Latinos engage in cultural appropriation of Indigenous and Black peoples for entertainment and as part of a "Latino" identity, Chicanos are no different except they want a restoration of the borders before the Treaty of Guadalupe was enacted. This Yankee imperialism is their sole moral high ground, but excuses them not for the indigenous erasure they engage in. By the way, criticism of Latinidad and any of its cousins is usually met with reactions that we are siding with the Yankee imperialists. See how the sides get played?
Indigenous peoples of the US and Canada have not always been the most discerning when it comes to comprehension of other cultures in the global south, and Latinidad is an example that hits close to home, geographically. For all the geographical closeness we have with each other, the incomprehension stays. Latinidad has infiltrated northern native cultural spaces for many years. All representation of "indigenous" cultures south of the Mexican-US border is, without fail, Latino appropriated culture. Sometimes, I feel like no one cares. All that is shown is "Aztec/Mexica" aesthetics, and maybe some "Inca". And even in the most remote reservations, there are pow wow gatherings with "Aztec/Mexica danza" included in the event, sometimes even advertised on the flyer.
Chicanos also bring a certain racialization specific to US natives and the US perspective on race in general, which is obsessed with blood fractions or "blood quantum". They think that since they have the blood quantum, then that is enough to excuse them from anything. But that is not how belonging to an indigenous community works. And nowhere in the world is a nation based on race or blood, did you ever see Stalin mention that in his five characteristics of a nation? Of course not. Stalin makes it clear that the cultural connection is a significant aspect of the national question.
Related: Anti-Blackness New Age Frida Kahlo and Diego Rivera, Mexicanidad in the 1950s Flirtation with fascism Who funds this? The damage caused to culturally connected native peoples