Latin America – American Expansionism Last discussion in LA (Mexican Rev.) Pre WWI and “Manifest Destiny” US begins to expand throughout the Pacific, (Hawaii, Samoa) and this ultimately spreads south to LA – Spheres of Influence War of 1898 and Cuba Libre – Taking the Philippines Panama Canal Lake Gulf of Mexico Monroe Doctrine - Roosevelt Corollary (Teddy not FDR) 1904 US can intervene between LA & Europe, with European desires being upheld Post Mex. Rev. WWI & Great Depression slows American expansionism, but it doesn’t go away
Challenge to US Power - Mexico After being dominated by imperialist powers (primarily the US) Mexico decided to make changes What was Mexico’s role in WWI? As a result of a poorly constructed constitution large tracts of land (which had oil under its soil) was owned and operated by US companies 1917 Mexico forced out US companies, and made this retroactive, which meant, that millions of dollars were going to be lost by US companies US gov. fought back by holding a policy of non-recognition toward the Mexican gov. As a result the US boycotted Mexican oil, and attempted to start an international boycott. This failed because Germany, Italy, and Japan continued purchasing oil from Mexico At the onset of WWII, Mexico and US came to an agreement where Mexico retained control of her oil fields and in return sold oil to the US
US Maintains Control Good Neighbor Policy 1933 – Next level imperialism and use of Roosevelt Corollary “(US) has the right to intervene in the internal or external affairs of another” – FDR 1933 Many of the nations that were previously controlled by US (in a physical sense) had US troops removed However, the US still had the ability to intervene if needed 1936 FDR proposed and inter-American conference designed to protect the best interests of American (north & south) interests Over the course of the next few years (prior to WWII) the US was able to effectively create hemispheric solidarity US was concerned with the Axis purchasing resources from American nations Allied powers were coerced (by the US ) to begin purchasing goods from LA nations in order to curb LA nations desire to trade with Axis powers
US/LA Relations Improve The Great Depression led to improved relationships between the US and LA nations The US was unable to employ enough people in order to manufacture certain goods, LA nations step in to their own and begin a trade relationship with the US This is known as Import Substitution Industrialization (ISI) While trade was interrupted between the normal players (US/Europe) it had the opposite effect on LA nations LA nations stepped up and began to fill the “market niches left by vanishing imports”
Import Substitution Industrialization (ISI) The larger the market the more goods were sold Positive for a country like Mexico, not so much for a country like Bolivia Did not bring on a large industrial revolution for even the largest LA players Most goods were light goods – soap, matches, beer, biscuits, shoes, aspirin, and cheap cloth Consumable items Did not included heavy goods – cars, radios, refrigerators Long lasting non-consumable items LA nations did not have the steel or the equipment needed to go through a large industrial revolution until the late 1940s early 1950s
The good – The bad – ISI – The Good & The Bad strengthens the relationship between LA and US (among other nations) Development of independently (to an extent) functioning economies in LA The bad – Led to economic imperialism in certain countries Mexico allowed the US to aid with the nationalization of heavy industry Led to dictatorships and extreme nationalism in several countries Vargas in Brazil, essentially a fascist As a result a huge wage gap continued & continues to exist in LA nations Remember the legacy of colonial economics? Most of the dictators were propped up and protected by the US government
ISI - Nationalism and Economic Control LA governments nationalized industry and controlled their economies in multiple ways - Set wages & prices Manipulated exchange rates Passed labor laws Owned public works projects
LA During WWII ISI continued to be a large piece of LA economics Continued support of the US and allied powers Mexico, Brazil only two nations to send troops (only a few hundred) to Europe Some support of axis powers Central American nations, Cuba, and Argentina had Nazi spy networks operations We will cover post war LA in a couple of weeks