The Great Depression and the Americas (1929 – 39) Objective 3.5: Consider the causes and effects of the Depression and how effectively they were dealt.

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Presentation transcript:

The Great Depression and the Americas (1929 – 39) Objective 3.5: Consider the causes and effects of the Depression and how effectively they were dealt with in the countries of Latin America, focusing on Argentina and Brazil

Warm-Up: Statistical Analysis Countries of South America Imports from USA Exports to USA Countries of Central America Imports from USA Exports to USA US trade with Latin American as a percentage of total Latin American trade *WHAT CONCLUSIONS CAN YOU DRAW FROM THE STATISTICS?*

Cartoon Analysis: American Foreign Policy in the 19 th and early 20 th Century Monroe Doctrine (1823)

Cartoon Analysis: American Foreign Policy in the 19 th and early 20 th Century Roosevelt Corollary (1904) AKA “Big Stick Diplomacy”

Cartoon Analysis: American Foreign Policy in the 19 th and early 20 th Century Dollar Diplomacy (1909)

Puerto Rico Cuba Philippines “Good Neighbor” Policy(1933) Cartoon Analysis: American Foreign Policy in the 19 th and early 20 th Century

Essay Analysis Professor Walter LaFeber argues that the United States developed a foreign policy which deliberately made Latin American / Caribbean nations its economic dependents from the early 19 th Century ◦Take notes to track his argument ◦Decide whether what points are logical and which do not seem fully supported

Big Question: How healthy were the economies of Latin American countries during the 1920s?

Economic developments in Latin America Relied heavily on the export of raw materials ◦Dependent on the production and sale of one product or monoculture—i.e. coffee in Brazil

Economic developments in Latin America Relied heavily on the USA and Western European countries, particularly Britain, for foreign trade and investment ◦Neo-Colonialism?

Reasons for dependence on foreign trade and investment Geographical factors made it difficult for Latin American countries to trade significantly with one another Maldistribution of income—can’t afford manufactured goods Competition with already industrialized nations to produce industrialized goods

Growth of US Investment As a result of World War I, Western European countries became less significant trading partners US investment in Latin America grew from $1.5 billion in 1924 to $3 billions by 1929 “Dollar Diplomacy”—interested in investment rather than trade

$ Political developments US Supported Dictatorships Venezuela, Paraguay, etc. $ US Supported Democracies Argentina, Brazil, etc. $ Communism?

The onset of the Depression in Latin America Various factors meant that the Great Depression would hit the countries of Latin America hard as they were not well equipped to deal with it… ◦Governments (including US-set democracies) were partial and tenuous ◦International demand for the primary products supplied by Latin America was largely in decline ◦Growth in foreign ownership and investment meant that profits from trade went outside the country

Warm-Up: Term Definition What do you think of when you hear/see the following word? ◦GLOBALIZATION  Why do you think that globalization could be controversial?

“Ten Basic Questions About Globalization" Read the question given to you Answer the question given to you ◦You may use the “cheat sheet” if necessary to help form your response Share your response (should only be sentence or two) with the class

“Ten Basic Questions About Globalization"

ISI Defined Import Substitution Industrialization ◦Trade and economic policy based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products

ISI in Latin America In Latin American countries where ISI was most successful, it was accompanied by changes in government ◦Old neocolonial governments were replaced by semi- democratic governments. Banks, utilities, and certain foreign-owned companies were nationalized or transferred ownership to local businesspeople.

Case Study: Brazil and Argentina The two case studies provided, focus on two large countries that were strongly affected by the Depression—not all countries were hit as hard, nor were all countries so large Questions to consider… ◦What type of government did this country have in place? ◦Was its economy dependent on one crop or diversified? ◦Did it have any industry? ◦Who were its main trading partners? ◦What sort of class structure did it have? ◦How hard was it hit by the Depression? ◦How did it get out of the Depression?

Brazil in the 1920s: Economic problems $$$ Concentration on primary products for exports Dominance of coffee Lack of industrial development Amount of national debt

Brazil in the 1920s: Political problems Growth of military & urban middle class involvement = modernization Growing opposition to political dominance by large landowners Catholic church concerned with social problems Dominated by populous provinces of Sao Paulo and Minas Gerais Low participation in elections

Vargas in Brazil Getúlio Vargas ◦President/Dictator from and ◦Established “Estado Novo”  ruled by decree  set up a special police force  abolished personal freedoms  introduced strict press censorship “The Estado Novo does not recognize the rights of the individual against the collective. Individuals do not have rights; they have duties. Rights belong to the collective!”

Brazil in the 1930s— Fighting the Depression Diversification Avoiding over- reliance on singular export of coffee Industrial GrowthFive-Year Plans Growth in oil and steel production

Argentina up to the 1920s: Economic developments —strongest economy in South America (annual growth averaged 6.3%) Absorbed 6 million immigrants from (mainly from Italy and Spain)

Argentina up to the 1920s: Political developments 1916—peaceful transition to full democracy with the election of Radical Party leader Hipólito Yrigoyen ◦attempts to win support of middle classes / urban working classes ◦reforms education system

Tragic Week (January 1919)

Argentina in the 1930s— Immediate Effects of Great Depression Budget deficit extremely high Yrigoyen cut public spending Supporters lost job

Argentina in the 1930s— “Infamous Decade” Concordancia: 1931 military coup— overthrows Yrigoyen National Democrats, Independent Socialists, Nationalists General Agustín Justo president from 1932 Growth of nationalism

Argentina in the 1930s— Fighting the Depression Diversification Avoiding over- reliance on singular export Industrial Growth Growth textile production Increasing Trade Roca-Runciman Agreements w/ Britain (1932) Eden-Malbrán Treaty w/ Britain (1936)

Quickwrite Using the summary diagram, write a response to the following prompt… Compare and contrast the economic policies undertaken by Argentina and Brazil during the Depression