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Reverse colonization works. You just have to be patient and hope no one actually notices what's going on.
After a while, all academia will convince their own country that they actually have no cores anyway and will tell the native inhabitants (IE European-Americans) to "go home."
You seriously can't lose.
You can pass some kind of law that forbids even speaking about it in negative terms and that's when you swoop in for the kill.
I'm only speculating since I haven't played any American nations yet, only Kongo, which I would imagine would sort of have a likewise starting position. It might also be a good to wait for "conquest of paradise" for more interesting gameplay before the westeners come. Although I have no idea if the expansion affect will the central- and south American nations at all.
It's a giant hill to climb. You need to pick one of those three things above and try to work on fixing them as quickly as possible; usually, the tech group is the only one that you really have to work for, since a religion change is tricky and the government change will come with time and be less devastating and take much less planning and scheming than the westernization.
It will be interesting to see how the new expansion changes this; Paradox has always favored the Europeans and made it so that the natives never really had a chance. Now, with the random Americas in the expansion, I have no idea what playing natives will be like. It could be very interesting or even further unplayable without mods.
Historically, that is really what is accurate anyway, which is why they take that position, but I still believe that if you can fight your way to an equal position you should have an equal chance. There's so much malus and sabotage in play, you can't even really do that, for natives or sub-saharans.
I hate to be the one to tell you this but they never stood a chance in the first place.
It's like complaining that in HoI3, the Netherlands dont' stand a chance to crush the Wehrmacht. Well, they didn't.
Can't go up, does not mean impossible, westernizing an luck is the key.
Why does it "suck" exactly?
I played a few different games as different nations to get a feel of the game, but every time I would start a new game, I would keep looking over to Inca with an ambitious eye.
Finally I just took a deep breathe and took the plunge.
The Incans are a very difficult country to play, as previously noted, but I've found a decently successful way to play them and survive to endgame. I could go into fine details, but I'll keep it to the bullet points for conciseness' sake.
1. The best way to survive the "purges" from the European nations is to limit the ability of the European nations to colonize South America in the first place. Take the Exploration Idea Group as early as possible (since you don't have a solid reason to build your military with no apparent threats) and get to quickly colonizing the coasts of South America ASAP.
2. Don't play around with the "natives." If there are natives in a province that you intend to colonize, have your army move in and wipe them out. Yes, you lose out on the extra manpower they give you after you colonize, but it's so minute that it's not really worth the trouble.
3. Get rid of Terra Incognita ASAP. You want to colonize, but can't see what's right next to you? Send in an army headed by a conquistador and start clearing up the map. Bullet 2 applies here, too.
4. Unless you're really good at managing your colonization and really lucky with your random events, the European nations (Portugal, Castile, etc.) are going to colonize the North-East coast of South America. This is good and bad. Bad because they may or may not take offense at your presence immediately. Good because their presence will allow you to Westernize (something imperative to surviving to endgame). If you've managed to secure a good bit of the coast lines, you can then "seal" your borders, as well as all of the uncolonized areas you (should) have been ignoring until that point, by colonizing the provinces inwards towards the Amazon wasteland from the coast as soon as you catch sight of a European nation.
5. Once the Europeans show up, consolidate what you've got, colonize the interior provinces of your borders and wait for them to meet up borders with you. If you've been using your conquistadors to scout all of the coasts, you'll see them before they see you. DO NOT go up and meet borders with them. Start to save up as many power points as you can (preferably between 800-1000 Administrative Power, if nothing else) and get ready to Westernize.
6. As anyone that's ever tried to Westernize can tell you, it's a stone-cold pain in the butt. The way to survive it in the face of the European "purges" is to have the Administrative Power saved up prior to begininning the process. Pause the game, start to Westernize, then boost your stability as far as you can. Not sure if it was a glitch or just how the latest patch was, but after Westernizing began, I still had all of my power points to use. That allowed me to jump tech levels at Western costs with the points I'd saved up for my South American tech costs.
7. Diplomacize your butt off. When the Europeans show up, send a diplomat over to each nation and start improving your relations. The friendlier they are to you, the less likely they are to attack you.
8. Here's the trickiest part; the religious conversion. If you have a bunch of provinces (you should if you've been following my "guide"), when the state religion changes from Animist to Catholic, you're going to have to deal with nationwide revolt chances. Boosting your stability before the religion change will help offset them, but you're going to have to take other measures. While your missionaries are hard at work converting your provinces to the new religion, you're going to receive a ton of pop-ups for religious and nationalist turmoil. They're going to come often, but not so often that you won't be able to handle it with careful management.
Check to see how much the process is gaining each month. If it's around 20 per month, you're doing fine. Even if you have to give up 100 or 200 Westernizing points so that you don't lose a stability point, prestige or legitimacy, that's fine. You can make it back up in 5-10 months, making it not a very bad setback. Avoid losing stability over anything else. if you start having rebels pop up everywhere, you're done for.
9. If you've managed to survive the Westernization process, you've pretty much done as much as you can for the game. Tech up as much as you can and, if you've managed to position yourself near Panama, you can even make your way up into Central America to take out or vassalize the Aztecs with your shiny new Western units.
On my second playthrough, using this "guide," I managed to block out England and Castile from ever setting foot on South America and only had to deal with Portugal whom I, after Westerizing, managed to get into an alliance with.
Try it out yourself and feel free to shoot me a message or reply if you have questions or comments.
TL;DR version:
1.Colonize the coasts quickly.
2.Kill the natives.
3.Conquistadors FTW
4.Seal borders.
5.Consolidate when you spot Europe.
6.Stabilize and Westernize.
7.Make nice with Europe.
8.Convert quickly.
9.Un-hermitize and go forth.
Better?
In my playthrough the Inti religion spread throughout the world!