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From the 1930s to the 1960s, Latin America underwent…
abrupt and sometimes painful transitions of modernization. Global events intruded more forcefully than ever, especially in the form of the Great Depression (1929–1939), World War II (1939–1945), and the Cold War (1947–1989)
In the 1930s, Latin American nations…
found themselves unable to sell all their traditional exports while remaining dependent on the import of basic necessities. The loss of export earnings caused critical shortages of imports that provoked an increase in domestic manufacturing, that eventually led to a new economic nationalism throughout the region
The Depression decade became…
a watershed in most countries in the hemisphere when urbanization and industrialization transformed communities and lives. In countries like Chile and Mexico, discontent among mining and factory workers over their lack of rights spilled over into labor actions, and rural workers across the region irritated against the authority of large landowners.
This obviously threatened the power of traditional elites; thus, dictatorship became even more frequent in the 1930 s, probably as a response to these tumultuous events and adjustments to the inability of the liberal oligarchies to manage them. One by one, governments fell to military or strongman regimes in the 1930s
Some leaders, influenced by…
communism, fascism, and Nazism, began to experiment with radical forms of leadership.
Even the U.S. government, alleged proponent of democracy often gave its blessings to dictators who could maintain the peace and protect U.S. interests. Where the military did not rule overtly, it wielded great influence from behind the scenes
World order deteriorated in the late 1930 s…
and collapsed into all-out war. From Asia to Europe, Africa to America, conflict swept the world into a vortex of destruction and death.
Most of Latin America experienced shortages of basic imported goods (consumer and machinery), intelligence breaches, political challenges, and even armed clashes
Impact of the Great Depression
Many coups and attempted coups erupted in Latin America during the 1930s. At first, they were largely provoked by the economic crisis of
1929—the same crisis that triggered the Great Depression.
In 1930 alone, six civilian governments were overthrown by their respective militaries. Soon more fell or simply collapsed from stagnation and ineffectiveness. The achievements of the populists and democrats during the first decades of the century evaporated like smoke
Across the globe, the Depression created a…
sense of crisis, peril, and doom.
In Latin America, many lost faith in republicanism, as the liberals who
dominated the governments seemed too inept, self-interested, or corrupt to deal effectively with the unfolding crises.
This crisis of political legitimacy led many to support the growing role of the military in public life, believing it could restore order amid chaos and collapse
As the U.S. and Europe retreated to deal with their own crises…
the Great Depression sparked a new sense of nationalism in Latin America, as well as a spirit of defensiveness and the determination to protect what each nation had.
In country after country, writers, politicians, middle-class professionals, and economic elites dwelt on the need to create strength within their borders. They pledged to develop stronger governments, effective militaries, robust and independent economies, and more loyal citizens
The Welfare State
The concept of the welfare state emerged in the 20 th century as a
response to the economic and social challenges posed by industrialization,
urbanization, and economic inequality, with Keynesian economic principles playing a significant role in its development.
John Maynard Keynes
was a British economist who made significant contributions to the field
of macroeconomics and is widely regarded as one of the most influential economists of the 20 th century.
His ideas and theories played a central role in shaping economic
policies, particularly during the Great Depression and in the post-
World War II period
Some key points about John Maynard Keynes include
Keynes advocated for government intervention in the economy, particularly through fiscal policy. In times of economic downturn.
He suggested that the government should increase public spending and reduce taxes to stimulate demand and boost employment
Keynes' ideas were influential in the development of the welfare state and the establishment of social safety nets to protect citizens from economic insecurity
Key characteristics of a welfare state typically include:
Social Safety Nets: Welfare states provide various forms of social safety nets, including unemployment benefits, healthcare, old-age pensions, and disability benefits. These programs are designed to assist individuals and families in times of need.
Universal Access: Many welfare state programs are intended to be accessible to all citizens, regardless of income, to ensure that basic needs are met, and economic inequalities are reduced.
Healthcare: In a welfare state, access to healthcare is often provided as a fundamental right. The government may fund or provide healthcare services to citizens
Key characteristics of a welfare state typically include (part 2):
Education: Educational services, including public schools and
sometimes higher education, are typically funded, and administered by the government in welfare states.
Labor Protections: Welfare states often establish labor
protections, including minimum wage laws, workplace safety regulations, and workers' rights, to ensure fair working conditions.
Progressive Taxation: To fund these programs, welfare states often have progressive taxation systems where the wealthy pay a higher proportion of their income in taxes
Economic Nationalism and Social Reform
Along with the new nationalism came new economic ideas designed to
foster independence or better insulate Latin America from the shock waves of international depression.
In the larger countries especially, bureaucrats and intellectuals began
to favor long-term industrialization as a solution to the cyclical booms
and busts to which their economies were subjected in the global arena
Primary products faced prolonged…
market crises and had to be subsidized.
Prices were notoriously unstable, with exports subject to restrictions by importing countries.
Each downturn in economic fortunes caused widespread unemployment and suffering in Latin America.
Moreover, the loss of export earnings hurt public coffers, which relied heavily on trade taxes, and caused critical shortages of imports that
crippled domestic life
The solution, according to many, was to…
diversify and strengthen the economies by promoting domestic manufacturing (ISI). Argentina, Brazil, Chile, and Mexico were especially interested in this possibility.
They, along with many other countries around the world, joined in the general debt moratorium of 1932 and considered the possibilities of getting out of the international market altogether
autarky
This strategy, called…
“autarky” (economic self-sufficiency) was a more elaborate form of protectionism that had always been present in one form or another in
international trade.
None actually sought full autarky, but with nationalist economic policies they began to reverse the effects of the Great Depression, gain some independence from global markets, and accelerate the transition from agricultural to industrial economies
New international deals not requiring…
hard currency could revive trade; for example, Brazil exchanged coffee for German machinery without cash payments. In addition, high tariffs were part of a general plan to develop industries and broaden domestic markets.
Multiyear plans would set production targets and direct public and private investment to national priorities. In addition, government and industry groups deployed mass propaganda campaigns to promote pride in
domestically produced goods
The words…
“Hecho en México,” “Indústria Brasileira,” and “Producto Argentino” began to appear on goods and in advertising. Economic nationalism became a major feature of Latin America from the 1930s through the 1970s.
Until the widespread suffering of the Great Depression struck…
labor management relations had been left to the market, with very little
involvement by government except when force was needed to suppress a strike or demonstration.
This contributed to a variety of glaring social problems: strikes, the
proliferation of slums, periodic crises of unemployment, abandonment of laborers injured on the job or too old to work, child labor, and hostility toward the elites
The 1930s saw far more actual…
legislation passed and real institutions created to deal
with labor and social problems.
Labor codes became common, governments stepped in to
mediate industrial conflict, social security systems were
set up, public education expanded rapidly, and new
programs began to provide food and medicine to the destitute.
The social question was transformed from a charitable concern for the poor into a commitment by progressive governments
Race and Nationalism
When elites in Latin America took up the “social question” in the 1930s, they faced challenges distinct from those of their counterparts in Europe. The debate over race took on renewed vigor as elites struggled to define more inclusive nations. In Mexico they invented the “raza cósmica,” which united all Mexicans within a single nation.
In Brazil, where slavery had played such a prominent and divisive role in its recent history, race was particularly central to the social question. Like most other Latin Americans, white Brazilians held deeply racist views of human society, and during the early twentieth century promoted education and immigration as a path toward whitening.
But Brazil was also a country where…
beginning in the 1920s, modernist artists and writers began to celebrate tropical and African themes in their work.
Similarly, Brazilian intellectual and writer Gilberto Freyre invented a new racial past for his people.
Freyre objected to the widespread denigration of nonwhites. He sensed that Brazil had inherited a unique society, one that its ancestors had forged in the tropical plantations
From his (Freyre) studies he devised an account of…
Brazil’s past, which he published as The Masters and the Slaves. The book became an immediate best seller and was followed by sequels in the 1940s and 1950s.
In this work, Freyre singlehandedly rewrote his nation’s past and constructed a new self-image for Brazil.
His most innovative ideas had to do with racial mixing.
Brazil became, then, a crucible for blending these populations and cultures into a new people especially fit for life in tropical America.
The blending, both physical and cultural, took…
place largely in the plantation big house, where members of all races commingled.
All of the children, regardless of race and class, played together in the big house and learned from their African and Afro-descendant nannies
Food recipes, children’s games and stories, home medicine, folklore, and all other aspects of daily life became fused into a peculiarly Brazilian synthesis.
Meanwhile, according to Freyre, familial relations among all in the big house ameliorated the harsh aspects of slavery and plantation
production.
The upshot was the racially mixed and culturally blended Brazilians
The Myth of Racial Democracy
Educated Brazilians applauded Freyre’s theories
and disseminated them in schoolbooks, magazine articles, poetry, and
newspapers.
His views on race relations became a virtual consensus by the
1950s, allowing Brazilians to acknowledge their complicated racial past
while ignoring its basis in exploitation and the continued injustices faced by Brazil’s black majority
Conclusions and Issues
The 1930s proved to be a complex, troubled, and dangerous time in Latin America. The Great Depression created severe hardships and
suffering for the masses, and it bankrupted many governments. Partly
as a result, rival parties and groups sought power, provoking a series of
revolts and coups in the region
The unrestrictive economic policies that…
had prevailed before 1929 had left governments open to indebtedness and financial shocks, and many wealthy families faced ruin. Disenchantment with the old liberal order led Latin American leaders and intellectuals to turn inward in search of national preservation
They sought strength in their own people and traditions…
and they offered protection for native industry. At the same time, some
of the radical experiments of the era, like communism in the USSR,
fascism in Italy, and Nazism in Germany, appealed to young
people. Radical movements arose and competed with the traditional
parties, sometimes leading to violent clashes
In most cases, the wealthy…
elite managed to retain control over their countries’ governments. Many governments sought to soften the harsh effects of the Depression with enlightened social policies, like retirement benefits and free health
care
Their response to labor assertiveness tended to be…
stiffer: they used police to beat down strikers and created government-
sanctioned unions that could be controlled from the top down. Most
countries abandoned democratic procedures, if they existed, and
relied on autocratic regimes and controlled elections to maintain stability
In some areas, outright dictatorships emerged in the…
1930s, sometimes with the blessing of the U.S. government, which had decided no longer to station military forces in the region (excepting in Panama, Puerto Rico, and Cuba). The leaders of these regimes became the classic dictators, portrayed in movies and novels about Latin America.
Although not representative of the region as a whole, they do form a
coherent group of leaders who reflected an important phase in circum-Caribbean leadership during the era of the Good Neighbor policy
