Chapter 12 Section 3

 Politically independent  Majority of population poor besides the landowners  Majority are illiterate  Cycle of poverty  Unequal distribution of land and its poor use combined to prevent social and economic development in Latin America

 Army leaders that had gained fame and power continued to assert power : ruled as dictators, or caudillos  By 1830, nearly all countries of LA ruled by caudillos  Caudillos found little opposition. Upper classes supported them : they opposed giving power to the lower classes  No experience with democracy in LA, so dictatorship of the caudillo did not seem unusual.  Voting rights and political power restricted to relatively few members of upper and middle classes who owned property or could read.

 Depended upon exports  Sales were soaring ◦ foreign nations benefited far more from increased trade with LA. LA imported Euro/NA manufactured goods so they had little reason to develop own manufacturing industries.  As long as LA remained unindustrialized, it could not play a leading role on the world stage.  LA used little export income on building roads, schools or hospitals. Instead, borrowed money at high interest rates to develop facilities for their export industries. ◦ often could not pay back loans  foreign lenders took over facilities it had funded  foreigners gained control of many industries in LA, beginning a new age of economic imperialism

 LA and US feared that European countries would try to reconquer the new republic  1823, President Monroe issued Monroe Doctrine: American continents are henceforth not to be considered as subjects for future colonization by any European powers.  Britain, LA’s largest trading partner, agreed to back the Monroe Doctrine w/ powerful navy

 Cuba -fighting for independence from Spain  US developed substantial business holdings in Cuba : economic stake in fate of the country  Spanish had forced many Cuban civilians into concentration camps. Americans objected to the Spanish brutality.  1898 US joined Cuban war for independence to protect economic interests and protest Spain’s brutal treatment of Cuban civilians  Spanish gave up easily  1901 Cuba became an independent nation in name. Cubans resented US intervention, military gov US had installed, and its preventing Cuba from becoming truly independent.  After defeat in Spanish-American War, Spain turned over the last of its colonies. Puerto Rico, Guam, and Philippines became US territories

 US wanted canal across narrow section of Central America; Roosevelt ( ), very enthusiastic about canal  Panama in 1903 was province of Colombia. Roosevelt offered country 10 mill plus a yearly payment for right to build a canal ◦ When Colombian gov demanded more, US responded by encouraging revolution in Panama  Panamanians -trying to break away from Colombia for almost a century  With help from US navy, they won their country’s independence  Panama gave US a ten mile wide zone to build canal  finished 1914; LA has crossroads of world trade, and US controlled tollgate

 US further expanded influence in LA in early 20 th century  To protect economic interests, Roosevelt issued an extension, or corollary to Monroe Doctrine  Roosevelt corollary gave US right to be an international police power in Western Hemisphere  Used to justify American intervention in LA  Occupied countries for decades-Haiti, Nicaragua, Dominican Republic, Mexico, Cuba, Honduras, Guatemala, Costa Rica  LA countries protested but they were powerless to stop their giant neighbor to the north