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AP World Latin America

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AP World Latin America - Page Text Content

S: WHAP

BC: THE END

FC: Welcome to Latin America

1: ~Organization of American States (OAS) *Purposes: Sought to Strengthen democracy in the regions -Defends Human Rights -Promoted sustainable development ~The OAS was started by the U.S. to ensure no communism was spread into Latin America *Tension grew between the U.S. and the USSR during the Cold War that kept the U.S. Busy trying to find ways to contain and stop the spread of communism.

2: ~The OAS only had 21 members when it began *Today, 35 independent countries have become members ~Although the U.S. influences the OAS they act independently of the U.S.

3: ~The ISI needed capital, so once again they turned to the US to help them with loans and investments *Latin America was closely watched during the cold war to see what side they would choose | ~Latin America was looking to Industrialize after the Great Depression and World War II ~Import Substitution Industrialization (ISI) was created to help them become less reliant~It only had 21 members at it's start

4: ~Latin America had several problems with ISI and dictators *ISI money went to maintaining power. -States released ~political & military positions - export/import licenses - subsidies for political backing -Interest groups form - Businessmen - Trade unions - Industrialists *Lower class suffers b/c lack of organization*

5: ~Until the 1950's, Using ISI funds to manage power was successful *Inflation and unemployment were much higher than ever before ~Latin American could not stabilize their inflation without sacrificing social welfare and this cause the people to go into political and social unrest

6: ~ In 1950, Leftist Colonel Jacob Arbenz Guzman is elected president of Guatemala. ~ Guzman was set on redistributing land so that 2% of the population would no longer control 74% of the farm land. *The government passed a law stating that all land over 223 acres was to be expropriated to the government and distributed to the landless, in 1952

7: ~ United fruit, an American company, who owned 550,000 acres to grow bananas forced the U.S. government involvement in the 1952 law. *A settlement was agreed to, the Guatemalan government offered $600,000 for the expropriated to avoid taxes.

8: ~ Eisenhower approves a CIA plan to over throw Arbenz in 1953 | ~ In May of 1954 Czech arms land in Guatemala which imposes on the arms embargo. * The importation of the arms was used as the perfect time for Operation-Success -The Coup d'etat against Arbenz

9: ~ Operation-Success was successful, Arbenz was overthrown by right-wing Guatemalan insurgents by the CIA ~ A Successor was hand picked by the US *1952 law revoked and land was returned to owners.

10: ~ It was the belief of Castro and other Marxists that true independence could only be gained by a removal of undue foreign political and economic influence. | ~Armed forces were the control of Real Power *The armed forced sought nationalism and order so their support was granted to any government that best fit this criteria

11: ~ It was in 1961 that JFK countered the appeal of Castro and his politics *This counter program would relieve poverty and social inequalities (Communism) and replace with democracy and economic development - $20 million was placed for this program, with a 10- year period | ~ The program however did not succeed due to the assassination of JFK and the Vietnam war ~ Most Latin American countries did not come close to meeting the creteria set by the US for a loan. - the OAS disbanded the alliance created for the committee in 1973

12: ~ Catholic influence still had major influences on the affairs of countries, even though independent nations separated from church and state around the 19th century revolution. | ~ During the 1950's, a period of industrialization and urbanization, the church had to compete with communists for support. So they supported a democratic, socially responsible form of capitalism that guaranteed rights to workers and promoted agrarian reform.

13: ~ Many countries found their happy median with Christian Democratic Parties that slip that methods of right-wing death squads (preserving the Status Quo) and communist guerrillas trying to overthrow the government. ~The church increased its duties to social justice of it's people, while it continued to criticize capitalism for its inequalities.

14: ~ The church began to protect individual human rights, while attempting to protect people for the communist guerrillas and the conservative authoritarian regimes *Law and authority were broken down, which allowed the church to be a conscience for the decency of the societies. | ~ In the 1970's, the church moved away from direct political action and in July 1980, John Paul II forbid clergy from political office.

15: ~ The Organization of the Petroleum Exporting Countries (OPEC), used to give loans to Latin American countries, were flushing US and European banks with deposits. * Leaders of Latin America were eager to apply for loans | ~ Latin American countries could only support industrialization through hard currency loans. Leading countries such as Brasil owing $87.5 billion and Argentina $43.6 billion. With an overall debt of $315 billion.

16: ~The ISI program priced domestic products out of the world market, 300% above world price. * Latin American economies had very low income commodities (bananas, flowers, wheat, cattle, sugar, coffee, cotton, oranges, timber and minerals) along with an insufficient industrial sector that consumed expensive imports of technology.

17: ~ Economic condition exacerbated by capital flight as investors started seeking other investment opportunities. * Worldwide recession cuts off all flow of capital in Latin America in the late 1970's and early 1980's

18: ~ In 1980-1984 the overall growth of Latin American dropped 9% ~ In the 1980's collectively, higher interest rates cause the debt to increase by 9% each year and the World Bank, IMF, and the US made several attempts to correct the debt but all failed. | ~Factors of a true pluralistic democracy present: large and influential urban middle class, urban entrepreneurs, professionals, industrialists, and working class.

19: ~ By 2003 all Latin American Countries (except Cuba) adopted some type of electoral government system. *Spain and Portugal transitioned from dictatorships to functioning democracies*

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