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CRISIS, REALIGNMENT, AND THE DAWN OF THE POST-COLD WAR WORLD (1975-1991)

Developing population increased too much for economic resources to matcho Violence, poverty, social breakdown arose

Industrialized nationsworried about effects of unemployment, family breakdown, etc.

Post-WWII > growing social dislocation and inequalityo Emergence of new industrial powers in Asia and demise of Soviet Union and their allies

New challenges: world population growth, large scale migrationso Developing nations: populations grew the most

Worsened social, economic problems and political institutionso Industrialized nations: large arrival of immigrants

Anti-immigrant political movements, violent ethnic conflictPOSTCOLONIAL CRISES AND ASIAN ECONOMIC EXPANSION (1975-1989)

1975-1991: wars and revolutions spread death/destruction through least developed nationso

Caused by conflicts of ideology, nationalism, ethnicity, religion United States vs. Soviet avoided conflict but worked to gain strategic advantages

o Supplied arms to opposing forces Proxy warsconflicts in which the rival super powers financed and armed

competing factions or parties

Latin America, Middle East boosted by proxy wars Asian nations (i.e. Japan) rose to top ranks of leading industrial powers End of 1980s: Collapse of Soviet system and socialist economies

o Developed industrial nations opened up to former socialist markets Increase in world population and international migration

o Forest depletion, soil erosion, pollutiono Developed nations found it easy to adapt compared to developing nations

REVOLUTIONS, REPRESSION, AND DEMOCRATIC REFORM IN LATIN AMERICA

Post-Cuban Revolution: Fidel Castro tried to top the United States by changing economy styleo Led to conflict with U.S.o Cuban Revolution: first revolution in Western Hemisphere to nationalize foreign

investment, redistribute wealth of the elite, and forge an alliance with the Soviet Union

o Their efforts as a communist country energized revolutions throughout Latin Americao U.S. strategized to defeat communism in Latin America by finding allies in the area

Brazil: army overthrew democratic government in 1964 > dictatorshipo Labeled Brazilian Solutiono Suspended constitution, outlawed previous political parties, exiled former leaderso Death squadsformer illegal organizationstortured/killed thousands of citizenso New economic promoting industrialization through import substitution

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Countries followed after Brazilo Chile under Allendes rule (1970): socialist reforms

Allende was overthrown by General Pinochet, backed by U.S. Thousands of Chileans killed/imprisoned/etc. in the military uprising

General Pinochet reversed Allendes socialist reform programo Argentina (1976): dictatorship under Isabel Martinez de Peron

High inflation, terrorism, labor protests Military took control, suspended constitution Dirty War: seven years of fighting vs. terrorism

9,000 casualties, thousands of arrestso Nicaragua (1979) overthrew Somozas corrupt dictatorship

Sandinistas: alliance of revolutionaries and reformers that helped Nicaragua win Got political/financial support from Cuba Imitated command economies of Cuba/Soviet Union

1977-1980: U.S. president Jimmy Carter sought to find peace with Latin Americao

Renegotiated Panama Canal treatyo Failed in attempt to find common ground with Sandinistas

1981: Ronald Reagan became president, tossed out policy of conciliationo Wanted to reverse Nicaragua and prevent revolution in El Salvador

Congress resisted, fearing another Vietnam Reagan Administration: sought to reverse Nicaraguan Revolution

Contras (counterrevolutionaries) military force funded (il)legally byReagan Administration

1930s: El Salvadors Farabundo Marti National Liberation Front o U.S. spent a lot of money in military aid and training of their armyo E.S. military had common human rights abuse

Assassination of Catholic clergies (Oscar Romero) Collapse of Soviet Union and Sandinistas > dream for socialist E.S. faded Military dictatorships of Brazil/Chile/Argentina ended from 1983-1990

o 1982: Argentina attempted to take Falkland Islands from Great Britain, failed miserably Argentina eventually aided U.S. support of Contras

Hoping to prevent Great Britain from attacking them backo 1988: Pinochet was outvoted, civilian president elected for the first time in 18 yearso 1986-1990: Brazils gradual transition from dictatorship to civilian rule

End of 1980s: Oil import/export nations in Latin America were in bad shapeo 1982: Mexico announced inability to repay debts > world financial crisiso 1988: Latin American nations owed $400 billion+ to external lenders

Brazil: $113 billion 1991: Latin America was U.S. dominated

o 1983: U.S. military invasion of Caribbean Grenada to protect American studentso 1989: military overthrow of Panamas dictator (General Manuel Noriega)

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ISLAMIC REOVLUTIONS IN IRAN AND AFGHANISTAN

Militaries stayed out of Arab-Israel conflict and oil crises Crises between Iran/Afghanistan: expected Soviet military intervention

o Those two countries bordered Soviet territory

Iranian Revolution (1979): U.S. frustrationo Muhammad Pahlavi (shah) worked with CIA to retain throne during usurpation dangero Persuaded to equip Iranian army with American weaponryo Special treatment from U.S. + corruption/inefficiency = opposition and resentmento 1979: end of monarchy due to rebellion led by Shiitephilosopher Khomeini

Parliament, but also religious control of legislation and public behavior Elections, but monarchists, communists, and Anti-Islamic Republic barred Shiites got favored Measures taken to oppose Western style and culture

o U.S. embassy in Tehran seized by Iranian radicals Diplomats held hostage, Americans felt helpless and humiliated

o 1980: Saddam Husain from Iraq invaded Iran and toppled Islamic Republic Dictatorial rule, Arab nationalist philosophy and friendship with Soviet Union Iranians with American weapons vs. Iraqis with Soviet Weapons

Superpowers avoided the conflict U.S. sent covert arms hoping to get the hostages back

o Discovered covert in 1986 > U.S. openly against Iran 1988: cease-fire when U.S. backed Iraq

1978: Soviet Union sent army to support Afghanistan communist regime vs. religious guerillao Unwinnable war similar to Vietnam waro 1989: withdrew after being drained of resources

ASIAN TRANSFORMATION

Japan lacks minerals, but adapted well to economic oil shock in 1970 due to thiso Average income and economic growth increased rapidlyo Surpassed United States in 1986

Japanese industrial model differs from U.S.o Ownership of major industries = less concentrated > new industrial allianceso Six major keiretsu

firms in industry, commerce, construction + major bank = interlocking ownershipstructure

o Minor keiretsudominated by major corporations (i.e. Toyota) + the major supplierso Keiretsuhave close relations with government

Government aids with tariffs and import regulations 1970s-80s: success in exporting manufactured goods = huge trade surpluses with other nations 1990: Japans trade surplus with rest of the world was 2x amount compared to 1985 Expected to beat United States as worlds preeminent industrial economy

o Failed due to problems

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over-valuations of housing and stock markets trade imbalances increased monetary supply corruption due to government relationships undermined nations confidence

Other Asian countries imitated Japanese model (i.e. South Korea,)o Inexpensive labor + strong technical education + capital reserves bounce back from

Korean War in around a decadeo Developed heavy industries like shipbuildingo Consumer industries like automobiles and consumer electronics

Japanese investments helpedo Led by four main corporations (Hyundai, etc.)o 1980s: started to match Japanese economic growth

Asian Tigers:Taiwan, Hong Kong, Singapore, South Koreao Named due to their rapid economic growtho newly industrialized countries > rapid industrialization

Disciplined, hard-working labor forces Heavy investment in education

1980: SK had as many engineering grads as Germany + Britain +Sweden

Post Mao Zedongs death (1976): introduction of economic reform under Deng Xiaopingo Allowed individual initiativeo 1978: Sichuan province freed 6,000 firms to compete outside of government planning

Good resultso Began to allowed foreign investment for the first time since Communists (1949)o Majority still worked in state-owned enterprises, foreign companies were separated

Modern, international industry sector, government industry sectoro Land was not privatized but contracted for agriculture

1984: 93% of agricultural was privately owned > tripled agricultural outputo 1980-1983: Chinas per capita output more than doubledo Chinese Communist Party resisted serious political reform

Xiaopings reform helped China avoid issues that socialist Europe faced Tiananmen Square (1989):series of protests demanding more democracy and

end to inflation and corruption

Led by students recognizing democratic movement around the world Tiananmen Square: heart of Beijing Hundreds of thousands of protestors Government brought in tanks > hundreds-thousands of killings, arrests Communist Party still survived