1. 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

3. 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

4. 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

5. 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”

6. 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

7. 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

8. 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

9. 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