THE UNITED STATES IN LATIN AMERICAEconomic and Social Trends in 20th Century Latin America, and the U.S. Response

Even After Independence

• Latin American nations depended heavily on foreign nations•On becoming independent, they very often had very little money• The best way to gain money was through exports

Export Economies

• Are great in earning cash in the short term• Latin American nations sold Europe and the U.S. the same sugar, coffee, and other exports they had before, and it raised quick cash for the new nations

In the Long Term, However

•Economies based too much on exports have difficulties• If all you’re doing is growing things to ship to other nations, you aren’t building your own roads or schools any other portion of infrastructure

So, to Get Those Things

• Latin American nations had to import from Europe and the U.S.• The value of those imports was almost always more than the exports, so Latin American nations were constantly struggling with debt

In Addition. . .

•While they were independent, much of their land was either owned or controlled by foreign interests• In the 20th century, most of it was owned or operated by U.S. businesses

So From Independence On

• Latin American nations tended to be poor, have little infrastructure, and a huge gap between a few very wealthy people and a mass of people living in poverty

That Income Gap

• Was an economic issue that became a major social issue• Some groups, most notably the church, began to take it on• This became known as Liberation Theology—the belief that the church should be active in the struggle for economic and social equality

In the 20th Century

•Many Latin American nations began to try to address their poverty•Often, the United States was looked at the biggest reason that Latin America was poor

Why the United States?• By the 20th Century, the U.S. was the primary importer of Latin American goods• A number of American corporations owned land in Latin American nations or operated there• Dole (Agricultural Goods such as pineapple, bananas,

etc.)• Chevron (Oil)• Merck and Pfizer (Pharmaceutical)• Monsanto (Agricultural Research / Genetically Modified

Seeds)• Alcoa (Aluminum)

• In many cases, it was believed that U.S. companies were working with the U.S. Government in order to keep Latin America poor

20th Century Revolutions

•Have largely been about giving more land to poor farmers, and increasing production at home in order to boost infrastructure•Often, this has gone along with plans to remove U.S.-backed interests

Cuba

• By the 1950’s, Cuba was one of the most-developed countries in Latin America• It was owned by a very few wealthy Cubans, and had large amounts of American investment• The U.S. repeatedly backed dictators who would maintain that system

In 1952

• The U.S.-approved dictator was Fulgencio Batista• The U.S. supported him because he approved of U.S. business, and was a harsh anti-communist

Enter Fidel Castro

• A young lawyer, Castro was arrested in 1953 for attacking a Cuban army barracks•He was released, and two years later he started a guerrilla war against Batista• In 1959, Batista fled the country, and Castro came to power

Aided by Ernesto “Che” Guevara

•Che Guevara was a Marxist revolutionary•He was instrumental in Cuba’s revolution•He also helped spark a wave of Communist uprisings throughout Latin America

Castro’s Policies•Were designed to end Cuba’s reliance on the U.S.•He nationalized private property and gave land to poor farmers•He launched an education program that basically wiped out illiteracy in under a year•He created a system of free, nationwide health care•He kicked out American businessmen (as well as the mafia) and put Cuba in control of its own destiny

To Do This, However . . .•He gave his own government massive power•He ended freedom of the press, and allowed government censorship•He created a spy network to make sure that Cuba’s citizens were doing what they were supposed to do•He allied Cuba with the Soviet Union•He continually forbade his people basic civil liberties

Still, Castro Endured

•He is still alive, although he turned over his Presidential powers to his son in 2011•He led Cuba for over 50 years• In the same period, the U.S. had 10 different Presidents

In Guatemala

• In 1952, free elections held in Guatemala brought Jacobo Arbenz to power as President• Arbenz had run on a platform of land re-distribution, and once in power he began to seize foreign-owned land and give it to peasants

The United Fruit Company

•Was an American interest that owned large amounts of land in Guatemala for plantations (major product was Chiquita Bananas)• They were one of Arbenz’ favorite targets, and had land seized by his decrees

In Response

• The United Fruit Company began to lobby the U.S. Congress, saying that Arbenz was a Communist (he wasn’t)• The CIA led a coup that overthrew the Arbenz government• The new dictator gave the United Fruit Company all its land back

The Guatemalan Civil War

• After Arbenz, the U.S. propped up a host of dictators in Guatemala• This led to a civil war which began in the 1970’s• A peace accord was not signed until 1996

In El Salvador

•Civil War began due to the assassination of Archbishop Oscar Romero•Romero was a powerful church leader in favor of Liberation Theology

Romero’s Murder

• Sparked a guerrilla war as peasants fought against the government•Many of the weapons given to the guerrillas were supplied by the Soviet Union, so the U.S. backed the Salvadoran government

The “Death Squads”

• Armed with U.S. weapons and technology, the Salvadoran army began roaming through villages, killing anyone suspected of being a guerrilla• Thousands fled the country to escape the violence

Fighting Continued Through the 1980’s

• But beginning in 1989, the Soviet Union collapsed• Support for the guerrillas dried up, and by this time the U.S. had begun to curtail aid to the government• As a result, the two sides made peace in the 1990’s

In Chile

• Salvador Allende was elected President in 1970• A Socialist, Allende spent huge amounts on housing, education, and health care•He also nationalized businesses, including some that were U.S. backed

The CIA Again Intervened

• The American intelligence agency began training and supplying Allende’s opposition, hoping they would overthrow the government• They did• They bombed the Presidential palace (in planes given by the U.S.), killing Allende and 3,000 others

Enter Augusto Pinochet

• Pinochet came to power after Allende• He had been commander-in-chief of the military under Allende, but had been approached by the CIA• Once in power, he reversed Allende’s decisions and gave land back to the U.S. companies

Under Pinochet

• The economy did improve, largely due to U.S. investment•But he also arrested and executed at least 100,000 that were opposed to him, and censored the press in order to keep order