1. Latin America Section 3 Preview Main Idea / Reading Focus Return of Democracy Faces of History: Violeta Chamorro Democracy in Mexico Quick Facts: Mexico Then Mexico Now Market Reforms Map: Poverty in Latin America Visual Study Guide / Quick Facts Video: The Impact of NAFTA Democratic and Economic Reforms

2. Latin America Section 3 Reading Focus How did democracy return to Latin America? How has democracy in Mexico changed in recent years? What have been the results of market reforms in Latin America? Main Idea In the 1980s, repressive regimes in Latin America fell, and more moderate elected leaders brought some measure of political and economic progress. Democratic and Economic Reforms

3. Latin America Section 3 After decades, dictatorships across Latin America started falling in the 1980s and 1990s. Moderate civilian politicians put an end to military rule, and began a series of political and economic reforms. Landless poor streamed into cities, searched for work “Brazilian miracle” miracle for military, landowners, wealthy business people only Peasants Dictatorships did not bring stability Death squads, civil rights repressed, mysterious disappearances, torture, killings People began to demand change No Security Return of Democracy Many failed to achieve social, economic reforms Poverty, malnutrition, infant mortality remained high Failures of Dictatorships

4. Latin America Section 3 Voting Rights Pro-democracy groups called for countries to restore voting rights, allow political opposition Military leaders relaxed restrictions, integrated limited freedoms Given a chance to vote, people did Voted out military, voted in new civilian governments A Peaceful Transition Despite history of violence, return of democracy fairly peaceful Combination of internal, external forces applied pressure for reform International lenders demanded changes in way countries governed as a condition for receiving loans

5. Latin America Section 3 Return of Democracy New civilian governments Democracy returned in Brazil, early 1970s Argentina returned to democracy after Falklands War, 1982 Central American countries –Returned to relative calm 1980s, 1990s –Elected moderate governments like that of Violeta Chamorro in Nicaragua Chile –Enjoyed more economic success than most of region –Pinochet regime fell, 1990

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7. Latin America Section 3 Identify Cause and Effect What factors brought about the return of democracy in Latin America? Answer(s): severe social and economic problems; new requirements for reform from IMF and other leaders in order to obtain loans; pro- democracy groups

8. Latin America Section 3 Mexico’s path to democracy was very different from other countries in the region. Mexico never a dictatorship, but not very democratic either Institutional Revolutionary Party, PRI –Ruled Mexico with little opposition for more than 70 years –Controlled congress –Won every presidential election One-Party Rule Political victories achieved through fraud, force, bribery Still economy remained strong Industry grew for many years Industry became dominated by foreign companies Companies’ profits increased, less money stayed in Mexico Foreign debt grew; poverty, inequality remained PRI Politics Democracy in Mexico

9. Latin America Section 3 1980s, world oil prices fell, caused Mexico’s oil revenues to be cut in half High inflation, unemployment caused severe economic decline 1985, earthquake destroyed parts of Mexico City, created more problems for government, economy Other Crises Worsening economic conditions, frustration with political corruption, crises blamed on PRI Police, military fired on peaceful student protestors, 1968; hundreds dead, wounded Government tried to cover up extent of tragedy Demands for Reform Democracy in Mexico

10. Latin America Section 3 Peasant uprising occurred in Mexican state of Chiapas Government devalued Mexican currency, shook public’s confidence More Mexicans faced new hardships in their lives Something had to change 1994 1992, Mexico, U.S., Canada signed North American Free Trade Agreement NAFTA eliminated tariffs on trade between the countries Designed to improve economies, but Mexicans feared effects of increased competition from foreign imports 1992 Democracy in Mexico

11. Latin America Section 3 A New Era 1997, opposition parties won seats in congress 2000, voters ended 71 years of PRI rule Elected conservative PAN party member Vicente Fox president 2006 Strained U.S.-Mexico relations on reform of immigration laws, border security Mexico maintained commitment to democracy with 2006 elections Conservative PAN party member Felipe Calderón won extremely close race Challenges Had to create functioning government, stable economy Worked to end Chiapas uprising, end corruption, improve relations with U.S. Made progress on most goals Democracy in Mexico

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13. Latin America Section 3 Find the Main Idea In what way was Mexico not very democratic until 2000? Answer(s): One party ruled the government for over 70 years.

14. Latin America Section 3 Economic Changes Shift to democracy from Mexico to Argentina brought economic changes Western banks pressured countries into reform measures Reforms Sell government services to private enterprise Return inefficient government- controlled businesses to private ownership Reforms Drastically cut government spending End some government subsidies of businesses Reforms Strengthen regional trade agreements, establish new ones Measures intended to reduce inflation, expand imports Market Reforms

15. Latin America Section 3 Mixed Results Many countries experienced economic growth, stability, others suffered Brazil’s inflation fell from quadruple digits to less than 7 percent by 2006 Chile’s reforms cut poverty rate in half between 1990 and 2003 Business owners celebrated economic changes Bankers, international lenders loaned billions for increased economic development in Latin America Other parts of Latin America struggled Exports from region remained sluggish Countries dependent on single commodities Struggles Continued Many reform measures caused hardships in some countries Argentina experienced deep recession in 2001, 2002 Could not pay multi-billion-dollar debt President devalued currency Hardships Results of Market Reforms

16. Latin America Section 3 Argentina’s currency devalued Banks failed, unemployment rate reached more than 20 percent Even many middle-class struggled to buy basic necessities Economy stabilized by end of 2003 Supporters Supporters of market reforms say reforms have not gone far enough Key elements of reform, laws to protect property rights, business contracts, have not been made; political corruption still affects Latin American business No positive effects Even where market reforms benefited national economies, many people did not feel positive effects Poverty still widespread in Latin America, gap between rich and poor wider Results of Market Reforms

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18. Latin America Section 3 Dissatisfaction with economic problems and government’s inability to solve them has led to more political and economic shifts in the region. Venezuelans elected Hugo Chávez president, 1998 Set out to eliminate poverty To do so rejected certain aspects of capitalism Limited success, problems remain Critics concerned he has turned toward dictatorship Venezuela Populist Evo Morales elected Bolivian president, 2005 Nationalized gas industry, supported coca farmers Brazil elected Luiz Inácio Lula da Silva, 2002 Former union leader, sympathetic to poor Managed to balance interests of social reformers, businesses Bolivia and Brazil Reactions to Market Reforms

19. Latin America Section 3 Make Generalizations How have people in Latin America reacted to market reforms in recent years? Answer(s): by electing leftist-leaning governments or those who are sympathetic to the plight of the poor

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21. Latin America Section 3 Video The Impact of NAFTA Click above to play the video.