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EconomicEconomic

ModernizationModernization 1880 to 19201880 to 1920

LAH 2020LAH 2020

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Economic and IndustrialEconomic and Industrialtransformationtransformation

Important transformations taking place in theworld economy

Europe and USA industrial nations Population grew dramatically Prices of primary export products were high Manufactured imports from Europe were lower in

price Latin American nations, in terms of trade,

benefited from the industrialization of Europe

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COST DEPENDENCYCOST DEPENDENCY

dependent on foreigners (nations) for manufactured goods.

Difficult for the Latin American nations didnot go through the slow and progressiveadvance in science and technologyneeded toward mechanized productionthat Great Britain, France, Germany, andthe US experienced

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Mexican manufacturingMexican manufacturing

Success story in industrialization achieved inMexico mills for spinning and weaving cottonnear Puebla, state of Veracruz

Why? Large size of buying population amarket

Presence of skilled artisans (initial work force)

Available start-up capital from the Government An investment bank Banco de Avo was set up

in 1830s to provide funds for textile manufacture

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Expansion of Latin AmericanExpansion of Latin Americanexportsexports

Increased demand in raw materials Metals examples: copper and tin 1900 Oil reserves found, Gulf coast of Mexico Rubber boom years (late 1890s) wild rubber

trees in Amazon region Brazil, Peru Henequen sisal in the Yucatan

Bananas Ecuador and Central America

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Exports from LAExports from LA

Demand rose for traditional products from LatinAmerica eve of the First War

Argentina and Uruguay exported hides andmeats

Uruguay leading export product was wool Argentina grains; maize and wheat

Paraguay yerba mate (internal market in SouthAmerica)

Ecuador cacao

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Changes in LAChanges in LA

Rise in the population of the region. Export boom contributed to the national wealth

not large enough to bring dramatic.

Improvements in living standards to all. Land tended to be concentrated in large estates

haciendas or latifundios

Railroad construction built to save costs of moving crops (final products) to the ports, wheredistance made it more expensive for transport

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Labor patternsLabor patterns

Labor was scarce in most countries Slavery persisted in two countries Brazil

and Cuba Chinese brought to work in RR in Costa

Rica and Peru

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European immigration to LAHEuropean immigration to LAH

Large European population came (late 19thcentury and early 20th century)

Between 1871 and 1915 about 2.5 millionEuropeans came

Argentina 80% from Italy and Spain Argentina, Brazil and Uruguay national policy

to attract Europeans to emigrate Financial aid offered as an incentive to move Objective not only to enlarge the labor force but

to raise the level of national culture Europeperceived as the source of true civilization

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POSITIVISMPOSITIVISM

Theory of social engineering bygovernment

Europeans perceived as advanced interms of progress

Thus European immigration a shortcut tomodernization and development

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