CHAPTER 34: Latin America Since 1945

Facing New Challenges

A. The Perils of the Postwar Era

1. Political instability, social unrest plagued much of Latin America

2. Latin America faces many concerns:

a. Socioeconomic disparities, widespread poverty, illiteracy, poor health care

b. Inefficient farming; rural migration to cities, growth of shantytowns

c. Rapid population growth

3. Latin America has dealt with several economic challenges

a. Inadequate consumer markets to sustain large-scale manufacturing

b. Dependence on fluctuating world market prices of commodities (i.e., coffee)

4. Illicit drug trade has plagued several countries

a. Leads to lawlessness as guerilla groups and drug cartels gain power

b. Bribery, corruption undermined police, army, judges, politicians

c. Small farmers used drug production to supplement income

B. The Yankee Factor

1. American economic involvement in Latin America remains massive

2. Organization of American States (OAS)

a. U.S. pressured them to abolish local communist parties, break ties with USSR

3. Bilateral defense pacts with U.S. brought closer ties among armies

4. U.S. assisted in overthrowing governments considered dangerous to U.S. interests

5. John F. Kennedy initiated Alliance for Progress, 1961

a. To improve quality of life, strengthen democratic institutions in Latin America

6. U.S. Senate approved treaty to return Panama Canal Zone to Panama

Mexico and Central America

A. Mexico and Central America

1. Mexico, with population of 100 million, is largest Spanish-speaking country in world

a. 14th largest country, 11th largest economy

2. Partido Revolucionaro Institucional (Institutional Revolutionary Party) (PRI)

a. Dominated Mexican politics, tended to favor middle-class, urbanized citizens

b. President of Mexico could select successor, party officials

c. U.S. helped Mexico recover from debt crisis

3. Mexico, U.S., Canada joined North American Free Trade Association (NAFTA), 1994

a. Expanded Mexican exports to U.S.; attracted American investors

4. PRI discredited since 1994

a. PRI candidate assassinated; President Salinas’ brother implicated

5. Vincente Fox Quesada, of Alliance for Change, won election, 2000

a. First time PRI lost national election

b. Promised reforms to improve economy, end corruption

6. Nicaragua carried out socialist revolution in 1980s

a. Popular uprising overthrew Samosa family who ruled 1937-1979

b. Government was uneasy coalition of business interests and guerrillas called Sandinista National Liberation Front

c. Daniel Ortega won 1984 election; began socialist policies

d. U.S. under Reagan imposed embargo; supported counter-revolutionary Contras

7. El Salvador endured bloody civil war in 1970s, 1980s

a. Napoleon Duarte won election, but was denied presidency

b. Military took on leftist guerrillas of Farabunde Marti National Liberation Front (FMLN)

c. Peace agreement in 1991 ended upheaval; right-of-center National Republican Party in power

d. Massive migration of Salvadoreans to U.S. during civil war; they remit over one billion dollars to families each year

Nations of the Carribean

A. The Caribbean

1. British West Indies well-prepared for independence, but have limited resources

a. Weak economies, with few agricultural, mineral exports to U.S., Canada

b. Tourism helps economy

2. Jamaica

a. Gained independence in 1962

b. More diversified economy produces sugar, citrus, bauxite, tourism

c. Unemployment rate high

3. Cuba’s modern history dominated by Revolution, 1958-59

a. Pre-1959 economy dependent on sugar exports to U.S., tourism, U.S. investments

b. After several years of guerrilla war Fulgencio Batista fled, January 1, 1959

c. Fidel Castro took over Cuba, proclaimed himself a Communist, began anti-American campaign

d. John F. Kennedy supported Cuban exiles’ attempt of ill-fated Bay of Pigs invasion

e. Castro established close ties with USSR, led to Cuban Missile Crisis, 1962

f. Castro built up Communist Party, jailed opponents, seized American property,nationalized businesses

g. U.S. imposed trade embargo on Cuba

h. Cuban engaged in interventionist activities in Angola, Mozambique, Ethiopia

4. Haiti, one of world’s poorest countries, governed by military rulers, dictators

a. François “Papa Doc” Duvalier seized power, 1957; used secret police (Tontons Macoutes) to terrorize

b. Son, Jean-Claude “Baby Doc” Duvalier took over, 1971; forced to flee, 1986

c. Political upheavals followed election of Jean-Bertrand Aristide, 1991

d. René Prévert succeeded Aristide in 1996 then Aristide won election in 2000; opposition parties boycotted it

South America

A. Military vs. Civilian Rule

1. Brazil, world’s fifth largest country

a. Dependent on plantation economy (coffee, bananas, cacao, pepper, palm oil) until recently

b. President Juscelino Kubitshek (1953-1961) emphasized Brazil’s potential for global power; began developing interior; moved capital to Brasília

c. Joâo Goulart (1961-1964), populist, alienated landowners, army officers

d. Military ousted Goulart, dominated government (1964-1974), suppressed guerrilla movement, spurred economic growth

e. Brazil borrowed heavily to finance economic growth; fell into debt by 1980; inflation reached 2500% by 1997

f. Fernando Cardoso, president since 1994, linked Brazilian currency (real) to U.S. dollar to combat economic woes, though deficits, debt still high

2. Argentina dominated by civilian-military rivalries

a. Juan Peron (1946-1955), ruled as dictator, popular with urban workers, developed industry at expense of rural areas, ousted by military

b. Evita Peron, Peron’s popular second wife, former actress, died at 33, in 1952

c. Military officers ran government (1955-73); Juan Peron returned from exile in Spain; elected president, 1973-1974

d. Peron’s third wife Isabel succeeded him, 1974-1976; ousted by military

e. Military controlled government (1976-1983), stifled dissent, 10,000-20,000 people “disappeared”

f. Military junta invaded Falkland Islands (Malvinas); British launched Falkland Islands War, easily defeated Argentine army in 70 days, 1982

g. Carlos Menem, elected in 1989, first transition of government without military involvement; granted pardons to former members of military junta

3. Peru and Columbia

a. guerilla warfare, economical problems and drugs combine for difficult times

b. Alberto Fujimori able to overcome Shining Path and send Peru in right direction economically

c. Columbian drug problems more severe, cartels clash with US government and maintained control

5. Chile sustained healthy, democratic system with political parties after 1945

a. Salvador Allende, Communist-Socialist, elected president in three-party contest with 36% of vote, 1970

b. Military, with support of CIA, besieged presidential palace; Allende committed suicide, 1973

c. General Auguste Pinochet ruled as authoritarian: dissolved Congress, suspended constitution, banned political parties, suppressed opposition

d. Plebiscites endorsed Pinochet until Chile voted against military rule, 1988

e. Patiricio Aylwin, moderate, tried to investigate human rights violations, while satisfying military

f. Commission for Truth and Reconciliation implicated Pinochet in killings, but did not put him on trial