The continent even to this day relies on this economic strategy because they don't have much of a consumer oriented economy or self sufficient economic bases. Another reason for the emphasis SA countries had on navies was due to the fact that the continent's economy was export/import oriented, so they needed navies to protect their economic interests, lest they became estranged & isolated from world markets. Remember SA is a huge continent and marching with the armies in land could get a bit expensive and time consuming. The reason for this is not so much the infrastructure along the coast (which was decent btw) but in those times it was cheaper and quicker to use the sea routes to move the armies.
Guys but even though the Pacific War had a big naval component (in fact, Peru's all time greatest war hero was Miguel Grau, an admiral who died at sea during the conflict), the Chileans (who had one of the biggest navies in the world, about the size of the USN) employed an strategy of marching from their country to cities in the north, capturing them and then getting on the transports and then repeated the city hopping cycle until they got all the way to Lima, Peru's capital and captured it.
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