Chapter 12, Section 5 From Past to Present

Slaves building a street in Rio de Janeiro Dictators are rulers with complete power. Many of the new Latin American countries were ruled by caudillos who ignored the democratic constitutions that had been established. Life changed very little for the ordinary people. There were still slaves and people had little opportunity for better life. Slaves building a street in Rio de Janeiro dictators

To export is to send products from one country to be sold in another. Before independence, Latin American colonies exported farm products, minerals, and other resources to Spain and Portugal. After independence, the new nations were free to trade with other countries. To import is to bring products into one country from another. After independence, they still imported manufactured goods from Spain and Portugal, as well as other countries. export and import

Companies soon became interested in Latin America’s resources. They began to buy large farms, mines, and other land The U.S. wanted to build a canal across the Isthmus of Panama that would benefit trade. Colombia refused so President Theodore Roosevelt backed a revolt by the people of Panama. Once Panama was independent in 1903, it allowed the U.S. to build the Panama Canal in 1904, completing it in 1914. Panama Canal

As owner of the Panama Canal, the U. S As owner of the Panama Canal, the U.S. had even more interest in Latin America. 1904: Roosevelt clamed that the U.S. had a right to keep law and order there. The Canal Zone was an area 5 miles on each side of the canal controlled by the US. Foreign debt is money owed by one country to another country. Roosevelt also said the U.S. could force Latin America to pay their foreign debt. For the next 20 years, the U.S. intervened in Latin America. foreign debt

As demands for reform continued in the 1960s and 1970s, military regimes seized power in many Latin American countries. A regime is a particular administration or government that ruled harshly, censored the press, outlaws political parties, and imprisoned – or even killed – those who opposed them. By the 1980s some of the regimes were replaced by elected governments but problems still remained. regime

In the 1980s many Latin American product prices fell as the oil prices were going up. Therefore, they were having to spend more money, but they were making less. They borrowed money from wealthy countries to make up the difference. Mexico also suffered during this time and began to rely more on its oil exports. More oil was produced than needed so in 1982, Mexico found that it could not repay its debt.

The World Bank and the International Monetary Fund Two international systems, The World Bank and the International Monetary Fund lent Mexico money- but there were strict conditions. Mexico had to cut back on programs that helped the poor Other Latin American countries had to borrow under these conditions as well. They had to allow more foreign ownership of businesses and farms In Argentina, debt, unemployment, and other economic problems caused riots. 2000- the president of Argentina was forced to resign The World Bank and the International Monetary Fund

NAFTA Recently, Latin American countries have tried to improve their economies by joining trade organizations. 1994- The North American Free Trade Agreement (NAFTA) made trade easier among Mexico, the United States, and Canada. NAFTA