Latin America

PowerPoint Notes

Economies of Latin America Traditionally a source of raw materials for and a consumer of industrialized nations’ products (colonies)

By 60’s still having economic problems Instability in the government with military leaders taking over

Population increases

Military Leaders’ Rule

No political parties Economies returned to heavy reliance on industrialized nations

Encouraged multinational corps. to come into Latin America (created more dependence) Cheap labor Did not improve standard of living

1970’s

Many tried to help themselves by borrowing money from other nations National debt grew tremendously The Latin American countries’ economies began to crumble

Governments began reform to try to help Many felt the gov took too much control over too many industries

Claimed trying to industrialize too quickly

Peasants encouraged to grow food for domestic consumption, not export

People encouraged to buy Latin American made goods, not imports

1980’s: A trend toward democracy begins Some military leaders refused to deal with economic problems

By mid-90’s several democratic governments had been established = all shaky

Latin American Society Economic problems made worse by population growth Rapid rise in cities Many lived in slums/shantytowns Gap between rich and poor was enormous

International drug trade brought many problems Bolivia, Peru, and Colombia especially big producers of cocaine and marijuana

United States and Latin America

Have played large role since late 1800’s Protect US interests and help friendly govs

MEXICO

Institutional Revolutionary Party (PRI) dominated – official political party

Stability in government for 70 years

Late 70’s – OIL! Government became more dependent on oil revenues

Mid-80’s world oil prices dropped and Mexico couldn’t pay it’s foreign debt Privatization allowed (selling of gov owned firms)

Many became unhappy with government because of debt and rising unemployment PRI candidate for president defeated in 2000 (1st time)

CUBA 1950’s: Castro overthrew Batista’s government Received aid from Soviet Union Strained relations with USA

October 1960: US trade embargo January 1961: US severed all diplomatic relations with Cuba

April 1961 JFK supported Bay of Pigs Invasion (failed)

1962: Cuban Missile Crisis (Castro realized couldn’t rely on Soviets) – harbored nuclear weapons

Central America

7 countries Costa Rica, Nicaragua, Honduras, El Salvador, Panama, Belize, and Guatemala

Depend on export of coffee, bananas, and cotton Changing prices of these goods leads to economic problems

NICARAGUA Somoza family in charge since 1937 for 42 yrs (corrupt)

Pres. Carter refused to support the gov in 1979 Marxist guerrilla forces (Sandinista National Liberation Front) gained virtual control

Opposed by the contras who tried to overthrow the government

Reagan and Bush administrations worried about Sandinistas and their support by Soviet Union, so supported the contras

1990: Sandinistas agreed to free elections and lost

2001: lost again, but remain one of strongest parties

PANAMA 1903 broke away from Colombia with US help US got to build Panama Canal in return

After 1968, military leaders of Panama’s National Guard in control Manuel Noriega became very involved in the drug trade

President Bush ordered US troops to go arrest him in 1998

Noriega sent to prison in US for drug trafficking

1999: Panama Canal turned over to Panama, not US anymore

South America

Argentina Brazil Chile Peru Colombia And others

ARGENTINA

2nd largest country in South America

Ruled by oligarchy depending on wheat and raising cattle

Military officers overthrew gov during WWII Juan Perón became very popular with people because of his support and reform efforts for workers

Perón elected president in 1946

1976 military took over again

BRAZIL

Military control began in 1964

Started new economic policy Initially had “economic miracle” and fast growth

Rapid growth led to extremely high inflation rates (100% a yr)

1985: democracy returned Faced many problems

High Inflation Rate!!

90’s some stability was restored to economy

New found economic growth = OIL

Venezuela

OIL!!! Member of OPEC

CHILE 1970: Salvador Allende (Marxist) became

president Tried to create socialist society Not popular with everyone

1973 General Pinochet tried to overthrow the government

Allende died Military government set up

Pinochet’s government was brutal Abuses of human rights

1989 free election held Pinochet defeated Move toward more democratic system

PERU Marked by instability Depended on sale of products (many ups and downs in economy)

Large population that is poor 1968 military take over by Gen. Juan Velasco Alvarado

Many changes in leadership June 2001 Alejandro Toledo became 1st freely elected president of Native American decent

COLOMBIA

Long democratic system dominated by owners of coffee plantations

Violence began after WWII and continued into 90’s peasants tried to organize against the elite rulers

Colombian Economy Peasants turned to a cash crop-coca leaves (used to make cocaine)

Drug trade increased # of drug lords increased

Drug cartels used bribes and violence to dominate the market

Colombia became major supplier of international drug market

Pablo Escobar

Notorious drug lord in Colombia

Violence has increased between drug cartels and the government

Government used aerial eradication program to try to wipe out the fields Without much success

USA funded anti-drug program 2003 sent in special forces to support it

Colombian economy remains weak High unemployment Civil War

New president elected in 2002 has promised to crack down on rebel groups