28-3: U.S. Economic Imperialism in Latin

America

Latin America After Independence

Effects of Independence No unity

Feuds among leaders Geographic barriers

More poverty

Political instability

Social hierarchy continues

Conservative / Liberal Divide Conservatives favor social order Liberals want land reform

Dependence of foreign nations for capital and for economic investments

Latin America can’t unifyDisunity

Failure of Bolivar’s dreamMany newly independent countries struggle with

civil wars

By 1830s, geographic factors (mountains, the Amazon, etc.) plus cultural differences defeated attempts at unificationGran ColombiaUnited Provinces of Central America

Cycle of Poverty“Rich get richer, poor get poorer”Rich get richer:

Landowners bought land seized by new government, got wealthier

Unequal distribution of land

Peonage: use of laborers bound in servitude because of debtLarge landowners paid workers in vouchers (for

the landowners store)Prices higher than vouchersWorkers go into debt; debt is passed down

Political InstabilityCaudillos

Dictators who were popular generals held powerSupported by upper classesRule by bribery, patronage, and forceBy 1830, nearly all countries ruled by caudillos

Little opposition to caudillos

Democracy was not part of colonial heritage

ECONOMIES GROW UNDER FOREIGN

INFLUENCE

Economic DevelopmentColonies were only allowed to trade with

“mother countries” (Mexico trades with Spain, etc.)

Great Britain and U.S. become key post-colonial trading partners

Old Products and New Markets

Trade continued to be more exports than imports

Increase in exports Steamships, railroads, refrigeration, meat, and

produce

Industry did not develop on big scale

Outside Investment and Interference

Investment not made to help people Not building roads, schools, or hospitals

Loans were made by wealthy nationsHigh interest rates!

DebtUnable to pay loansDrain on Latin American economyForeigners gained control over much of Latin

American economy

United States and Latin America

U.S. Dominate Affairs in Americas

1823 Monroe Doctrine

US takes Texas and Mexican cession (28.4)

U.S. gains independence for Cuba

Roosevelt Corollary

U.S. sent troops to Cuba, Haiti, Mexico, Honduras, Nicaragua

U.S. built Panama Canal

Monroe Doctrine (1823) Europeans not allowed to

colonize in the Americas

Great Britain supports this policy

European colonization in western hemisphere = attack on U.S.

How does the Monroe Doctrine look in practice?

Example: Cuba

CubaCuba tried to get independence from Spain

war from 1868-78

José Martí Cuban writer who was exiled for calls for

independenceDied in battle in Cuba 1895

Spanish-American WarU.S. intervene (backed by Monroe Doctrine)

4 month war

U.S. and Cuba vs. Spain

U.S. defeated Spain in 1898

Cuba became independent…

BUT was ruled by a dictator who was installed by U.S.

U.S. gains: Puerto Rico, Guam, and the Philippines from Spain

Spanish-American War

A man a plan a canal Panama

Panama CanalCanal would cut the

13,000 mile trip in half

Attempted by the French in 1880s, but they fail

Theodore Roosevelt President from 1901-

1909

Offers Colombia $$ to build canal; Colombia wants more

Supports Panama’s revolution for independence from Colombia (won in 1903)

In exchange for support, Panama gives U.S. strip of land to build canal

U.S. Motives for Building Canal?

MONEY (economic interest)

POWER (strategic interest)

Building the Canal Built by U.S. over 10

years

Cost $380 million

Opened in 1914

Labor force averaged 40,000 men

Massive machines

Workers dug up more than 200 million cubic yards of earth

Problems in Building the Canal

Mosquitoes – yellow fever, malaria Combated with nets

and spraying Rats – bubonic plague Heat Flooding Many deaths Frequent landslides Culebra Cut

9-mile long stretch through Panama continental divide

Difficult to get through

Canal Facts 51-mile trip through canal takes 8-10 hours

Canal handles over 13,000 ships a year from 70 nations carrying 192 million short tons of cargo

Panama took control of canal on 12/31/99

Roosevelt Corollary U.S. needs to protect

economic interest in Latin America

Roosevelt declares that U.S. would be international police power in western hemisphere

“Walk softly and carry a big stick”

How does the Roosevelt Corollary differ from the

Monroe Doctrine?Monroe Doctrine – meant to discourage European intervention in

Latin America

Roosevelt Corollary – authorizes U.S. intervention without any European involvement

Increasing U.S. PowerThe “Colossus of the

North”United States sent troops to several nations in

the early 1900sU.S. forces entered Haiti, the Dominican Republic,

Nicaragua, and Cuba to restore civil orderU.S. took control of finances in those countries –

need to prevent financial chaos

Use Roosevelt Corollary to become more involved in Latin American affairs