1. Latin America: Regional & Global Issues November 16, 2009

2. Countries SMALL in Latin America – Small market to sell goods 1960s – 1970s – Countries combine common markets Make LARGER markets Organization of American States (OAS) – Largest organization – Promotes: Settle disputes through PEACE Discouraged foreign intervention (involvement) Promote economic development & democracy – Not always successful…countries don’t AGREE

3. NAFTA (North American Free Trade Agreement) – Mexico, U.S., & Canada agree to have NO TARIFFS (free trade) – Other Latin American countries waiting to see if Mexico benefits Global Issues – Debt Borrow heavily from other countries – Use $$$ to develop industry & build factories 1980s: Interest rates ROSE – World Economy slowed (no buying) » Latin American countries have trouble repaying loans – Threaten to default (stop paying loans) » Causes lending banks to fail (close) Banks lowered interest rates, extended repayment, cancelled debt in exchange for ownership » Low standard of living (poor)

4. Drug Trade – Drugs smuggled from Latin America to U.S. & Europe – Two main reasons: 1.Strong DEMAND in U.S. & Europe 2.Poverty in Latin America – Earn more $$$ growing drugs than other crops Drugs lead to violence & corruption – Drug lords bribe government – Murder anyone who opposes them

5. Environment – HIGH population + Development of land = Threat to Natural Resources Destroy – Rainforest (lumber/ land) – Overfish coastal waters – Air pollution from factories – Mining land

6. Review Sheet Answers TEST: THURSDAY

7. 1.Revolt (usually by military leaders) to overthrow the gov’t 2.Complete halt to trade with another country 3.Liberation theology 4.Land reform 5.Land (to farm on) 6.Illiteracy higher among men than women 7.VERY powerful 8.Lower food prices 9.Monroe Doctrine 10.Annexation of Texas

8. 11.Platt Amendment 12.Good Neighbor Policy 13.Alliance for Progress 14.Castro’s forces defeated the U.S. trained exiles 15.FDR encouraged rebels in Panama to declare their independence 16.COMMUNIST v. DEMOCRACY 17.Settle disputes with VIOLENCE 18.Stop paying loans (banks fail) 19.Plentiful crops 20.Canada, U.S., & Mexico

9. 21.Left – LOW on social scale (poor/ workers) – WANT change Example Communism – Redistribute land – Control industry (salary, hours, etc.) Right – RICH support – Preserve social order (classes) – Protect wealthy/ power

10. 22.Still need supplies (tools, seeds, knowledge to farm, etc.) 23.(1) Cuba turned communist (2) Control business (3) own EVERYTHING (4) U.S. embargo with Cuba (no trade) (5) Castro imprison/ exile opponents (6) Thousands leave (wealthy) 24.(1) U.S. supported anti-communist forces (2) Increased aid ($$$) 25.(1) DEMAND for drugs in U.S. & Europe (2) POVERTY in Latin America (make more $$$ growing drugs than crops)