US Economic Imperialism in Latin America

1. US Economic Imperialism in Latin America Chapter 12 Section 3

2. Characteristics of 19th Century LA • Politically independent • Majority of population poor besides the landowners • Majority are illiterate • Cycle of poverty • Unequal distribution of land and its poor use combined to prevent social and economic development in Latin America

3. Political Instability Widespread • Army leaders that had gained fame and power continued to assert power : ruled as dictators, or caudillos • By 1830, nearly all countries of LA ruled by caudillos • Caudillos found little opposition. Upper classes supported them : they opposed giving power to the lower classes • No experience with democracy in LA, so dictatorship of the caudillo did not seem unusual. • Voting rights and political power restricted to relatively few members of upper and middle classes who owned property or could read.

4. Economy of Latin America • Depended upon exports • Sales were soaring • foreign nations benefited far more from increased trade with LA. LA imported Euro/NA manufactured goods so they had little reason to develop own manufacturing industries. • As long as LA remained unindustrialized, it could not play a leading role on the world stage. • LA used little export income on building roads, schools or hospitals. Instead, borrowed money at high interest rates to develop facilities for their export industries. • often could not pay back loans foreign lenders took over facilities it had funded foreigners gained control of many industries in LA, beginning a new age of economic imperialism

5. The United States and Latin America • LA and US feared that European countries would try to reconquer the new republic • 1823, President Monroe issued Monroe Doctrine: American continents are henceforth not to be considered as subjects for future colonization by any European powers. • Britain, LA’s largest trading partner, agreed to back the Monroe Doctrine w/ powerful navy

6. Spanish-American War • Cuba -fighting for independence from Spain 1868-1895 • US developed substantial business holdings in Cuba : economic stake in fate of the country • Spanish had forced many Cuban civilians into concentration camps. Americans objected to the Spanish brutality. • 1898 US joined Cuban war for independence to protect economic interests and protest Spain’s brutal treatment of Cuban civilians • Spanish gave up easily • 1901 Cuba became an independent nation in name. Cubans resented US intervention, military gov US had installed, and its preventing Cuba from becoming truly independent. • After defeat in Spanish-American War, Spain turned over the last of its colonies. Puerto Rico, Guam, and Philippines became US territories

7. US set sights on Panama Canal • US wanted canal across narrow section of Central America; Roosevelt (1901-1913), very enthusiastic about canal • Panama in 1903 was province of Colombia. Roosevelt offered country 10 mill plus a yearly payment for right to build a canal • When Colombian gov demanded more, US responded by encouraging revolution in Panama • Panamanians -trying to break away from Colombia for almost a century • With help from US navy, they won their country’s independence • Panama gave US a ten mile wide zone to build canal • finished 1914; LA has crossroads of world trade, and US controlled tollgate

8. Roosevelt Corollary, 1904 • US further expanded influence in LA in early 20thcentury • To protect economic interests, Roosevelt issued an extension, or corollary to Monroe Doctrine • Roosevelt corollary gave US right to be an international police power in Western Hemisphere • Used to justify American intervention in LA • Occupied countries for decades-Haiti, Nicaragua, Dominican Republic, Mexico, Cuba, Honduras, Guatemala, Costa Rica • LA countries protested but they were powerless to stop their giant neighbor to the north