1. Latin America
PowerPoint Notes

2. Economies of Latin America
Traditionally a source of raw materials for and a consumer of industrialized nations’ products (colonies)
By 60’s still having economic problems
Instability in the government with military leaders taking over
Population increases

3. Military Leaders’ Rule
No political parties
Economies returned to heavy reliance on industrialized nations
Encouraged multinational corps. to come into Latin America (created more dependence)
Cheap labor
Did not improve standard of living

4. 1970’s
Many tried to help themselves by borrowing money from other nations
National debt grew tremendously
The Latin American countries’ economies began to crumble

5. Governments began reform to try to help
Many felt the gov took too much control over too many industries
Claimed trying to industrialize too quickly
Peasants encouraged to grow food for domestic consumption, not export
People encouraged to buy Latin American made goods, not imports

6. 1980’s: A trend toward democracy begins
Some military leaders refused to deal with economic problems
By mid-90’s several democratic governments had been established = all shaky

7. Latin American Society
Economic problems made worse by population growth
Rapid rise in cities
Many lived in slums/shantytowns
Gap between rich and poor was enormous
International drug trade brought many problems
Bolivia, Peru, and Colombia especially big producers of cocaine and marijuana

8. United States and Latin America
Have played large role since late 1800’s
Protect US interests and help friendly govs

9. MEXICO
Institutional Revolutionary Party (PRI) dominated – official political party
Stability in government for 70 years

10. Late 70’s – OIL! Government became more dependent on oil revenues
Mid-80’s world oil prices dropped and Mexico couldn’t pay it’s foreign debt
Privatization allowed (selling of gov owned firms)
Many became unhappy with government because of debt and rising unemployment
PRI candidate for president defeated in 2000 (1st time)

11. CUBA 1950’s: Castro overthrew Batista’s government
Received aid from Soviet Union
Strained relations with USA
October 1960: US trade embargo
January 1961: US severed all diplomatic relations with Cuba
April 1961 JFK supported Bay of Pigs Invasion (failed)
1962: Cuban Missile Crisis (Castro realized couldn’t rely on Soviets) – harbored nuclear weapons

12. Central America 7 countries
Costa Rica, Nicaragua, Honduras, El Salvador, Panama, Belize, and Guatemala
Depend on export of coffee, bananas, and cotton
Changing prices of these goods leads to economic problems

13. NICARAGUA Somoza family in charge since 1937 for 42 yrs (corrupt)
Pres. Carter refused to support the gov in 1979
Marxist guerrilla forces (Sandinista National Liberation Front) gained virtual control
Opposed by the contras who tried to overthrow the government
Reagan and Bush administrations worried about Sandinistas and their support by Soviet Union, so supported the contras
1990: Sandinistas agreed to free elections and lost
2001: lost again, but remain one of strongest parties

14. PANAMA 1903 broke away from Colombia with US help
US got to build Panama Canal in return
After 1968, military leaders of Panama’s National Guard in control
Manuel Noriega became very involved in the drug trade
President Bush ordered US troops to go arrest him in 1998
Noriega sent to prison in US for drug trafficking
1999: Panama Canal turned over to Panama, not US anymore

15. South America
Argentina
Brazil
Chile
Peru
Colombia
And others

16. ARGENTINA 2nd largest country in South America
Ruled by oligarchy depending on wheat and raising cattle
Military officers overthrew gov during WWII
Juan Perón became very popular with people because of his support and reform efforts for workers

17. Perón elected president in 1946
1976 military took over again

18. BRAZIL Military control began in 1964 Started new economic policy
Initially had “economic miracle” and fast growth
Rapid growth led to extremely high inflation rates (100% a yr)

19. 90’s some stability was restored to economy
1985: democracy returned
Faced many problems
High Inflation Rate!!
90’s some stability was restored to economy
New found economic growth = OIL

20. Venezuela
OIL!!!
Member of OPEC

21. CHILE 1970: Salvador Allende (Marxist) became president
Tried to create socialist society
Not popular with everyone
1973 General Pinochet tried to overthrow the government
Allende died
Military government set up
Pinochet’s government was brutal
Abuses of human rights
1989 free election held
Pinochet defeated
Move toward more democratic system

22. PERU Marked by instability
Depended on sale of products (many ups and downs in economy)
Large population that is poor
1968 military take over by Gen. Juan Velasco Alvarado
Many changes in leadership
June 2001 Alejandro Toledo became 1st freely elected president of Native American decent

23. COLOMBIA
Long democratic system dominated by owners of coffee plantations
Violence began after WWII and continued into 90’s
peasants tried to organize against the elite rulers

24. Colombian Economy
Peasants turned to a cash crop-coca leaves (used to make cocaine)
Drug trade increased
# of drug lords increased
Drug cartels used bribes and violence to dominate the market
Colombia became major supplier of international drug market

25. Pablo Escobar
Notorious drug lord in Colombia

26. Violence has increased between drug cartels and the government
Government used aerial eradication program to try to wipe out the fields
Without much success
USA funded anti-drug program
2003 sent in special forces to support it

27. Colombian economy remains weak
High unemployment
Civil War
New president elected in 2002 has promised to crack down on rebel groups