Class Notes -- Week 2 Latin America 28-3

1. 28-3: U.S. Economic Imperialism in Latin America

2. Latin America After Independence

3. Effects of Independence No unity Feuds among leaders Geographic barriers More poverty Political instability Social hierarchy continues Conservative / Liberal Divide Conservatives favor social order Liberals want land reform Dependence of foreign nations for capital and for economic investments

4. Latin America can’t unify Disunity Failure of Bolivar’s dream Many newly independent countries struggle with civil wars By 1830s, geographic factors (mountains, the Amazon, etc.) plus cultural differences defeated attempts at unification Gran Colombia United Provinces of Central America

5. Cycle of Poverty“Rich get richer, poor get poorer” Rich get richer: Landowners bought land seized by new government, got wealthier Unequal distribution of land Peonage: use of laborers bound in servitude because of debt Large landowners paid workers in vouchers (for the landowners store) Prices higher than vouchers Workers go into debt; debt is passed down

6. Political Instability Caudillos Dictators who were popular generals held power Supported by upper classes Rule by bribery, patronage, and force By 1830, nearly all countries ruled by caudillos Little opposition to caudillos Democracy was not part of colonial heritage

7. ECONOMIES GROW UNDER FOREIGN INFLUENCE

8. Economic Development Colonies were only allowed to trade with “mother countries” (Mexico trades with Spain, etc.) Great Britain and U.S. become key post-colonial trading partners

9. Old Products and New Markets Trade continued to be more exports than imports Increase in exports Steamships, railroads, refrigeration, meat, and produce Industry did not develop on big scale

10. Outside Investment and Interference Investment not made to help people Not building roads, schools, or hospitals Loans were made by wealthy nations High interest rates! Debt Unable to pay loans Drain on Latin American economy Foreigners gained control over much of Latin American economy

11. United States and Latin America

12. U.S. Dominate Affairs in Americas 1823 Monroe Doctrine US takes Texas and Mexican cession (28.4) U.S. gains independence for Cuba Roosevelt Corollary U.S. sent troops to Cuba, Haiti, Mexico, Honduras, Nicaragua U.S. built Panama Canal

13. Monroe Doctrine (1823) Europeans not allowed to colonize in the Americas Great Britain supports this policy European colonization in western hemisphere = attack on U.S.

14. How does the Monroe Doctrine look in practice?Example: Cuba

15. Cuba Cuba tried to get independence from Spain  war from 1868-78 José Martí Cuban writer who was exiled for calls for independence Died in battle in Cuba 1895

16. Spanish-American War U.S. intervene (backed by Monroe Doctrine) 4 month war U.S. and Cuba vs. Spain U.S. defeated Spain in 1898 Cuba became independent… BUT was ruled by a dictator who was installed by U.S. U.S. gains: Puerto Rico, Guam, and the Philippines from Spain

17. Spanish-American War

18. A man a plan a canal Panama

19. Panama Canal Canal would cut the 13,000 mile trip in half Attempted by the French in 1880s, but they fail

20. Theodore Roosevelt President from 1901-1909 Offers Colombia $$ to build canal; Colombia wants more Supports Panama’s revolution for independence from Colombia (won in 1903) In exchange for support, Panama gives U.S. strip of land to build canal

21. U.S. Motives for Building Canal? MONEY (economic interest) POWER (strategic interest)

22. Building the Canal Built by U.S. over 10 years Cost $380 million Opened in 1914 Labor force averaged 40,000 men Massive machines Workers dug up more than 200 million cubic yards of earth

23. Problems in Building the Canal Mosquitoes – yellow fever, malaria Combated with nets and spraying Rats – bubonic plague Heat Flooding Many deaths Frequent landslides Culebra Cut 9-mile long stretch through Panama continental divide Difficult to get through

24. Canal Facts 51-mile trip through canal takes 8-10 hours Canal handles over 13,000 ships a year from 70 nations carrying 192 million short tons of cargo Panama took control of canal on 12/31/99

25. Roosevelt Corollary U.S. needs to protect economic interest in Latin America Roosevelt declares that U.S. would be international police power in western hemisphere “Walk softly and carry a big stick”

26. How does the Roosevelt Corollary differ from the Monroe Doctrine? Monroe Doctrine – meant to discourage European intervention in Latin America Roosevelt Corollary – authorizes U.S. intervention without any European involvement

28. Increasing U.S. PowerThe “Colossus of the North” United States sent troops to several nations in the early 1900s U.S. forces entered Haiti, the Dominican Republic, Nicaragua, and Cuba to restore civil order U.S. took control of finances in those countries – need to prevent financial chaos Use Roosevelt Corollary to become more involved in Latin American affairs