Latin America in the 20th Century

Major Political and Economic Changes in Latin America (1920s-1930s)

Economic Development

• Initial Prosperity: The 1920s began with signs of prosperity in Latin America but soon faced repercussions from the global economic crisis of the 1930s.
• Dominant Sectors: Key agricultural products included beef, wheat, sugar, coffee, and fruits, dominating the economies.
• Oil Industry Growth: Mexico emerged as a leading oil exporter, with significant oil discoveries also in Venezuela, Peru, Bolivia, and Colombia.
• Mining Industry Expansion: Rapid growth in copper mining (Chile, Peru), tin (Bolivia), and bauxite (Guiana) owned mainly by British and American firms.
• Electrification and Industrialization: Expansion of electric power, largely financed by foreign investors, facilitated industrialization. Countries began producing textiles, construction materials, machinery, automobiles, with oil refining and food processing becoming more significant.
• Post-WWII Heavy Industrialization: Major industrialization in the region expected to occur after WWII.

Changes in Society

• Urbanization: Industrialization led to urban growth, with cities like Mexico City, Rio de Janeiro, Sao Paulo, and Buenos Aires surpassing 1 million residents by 1935.

• Transportation and Utilities Development: Infrastructure expanded to support burgeoning populations and industries.

• Labor and Immigration: Need for labor resulted in increased European immigration (particularly in Argentina, Brazil, and Chile) since the late 1800s.

• Labor Movements: Surge in labor union activity during the 1920s; unions, often socialist or anarchist, relied on strikes to advocate for workers' rights.

  • Government Response: Many Latin American governments responded violently to strikes, with some outlawing unions entirely.

• Emergence of the Middle Class: Growth in professions, government services, commerce, and education facilitated the rise of a middle class, increasing its potential political power.

Political Changes

• Political Upheaval: Significant political changes in early 1900s, characterized by new political parties emerging backed by the middle class in various countries (e.g., Chile, Argentina, Peru).
• Single-Party Systems: Mexico transitioned to a single-party system post-revolution to maintain stability amid factionalism.
• Erasure of Democracy: Democracy remained elusive, but urban political movements gained traction as industrialization progressed and workers' interests were recognized by middle-class politicians.
• Government Instability: Elections often did not lead to stable power transfers, with coups and forced overthrows common.

The Great Depression

• Market Crashes: By the late 1920s, the prices of key agricultural exports fell sharply, hitting Chile’s nitrate market hard.
• Economic Downturn: The global depression exacerbated declines in export prices, pushing Latin American nations further into economic distress and disrupting import capacities.
• Rising Unemployment and Worker Unrest: Economic struggles led to widespread unemployment and labor unrest as living conditions deteriorated.

Authoritarian Regimes

• Military Coups: The economic crisis in the 1930s sparked political upheaval; many governments were overthrown, with exceptions being Uruguay and Mexico.

• Military Control: New military leaders often limited the political power of traditional landowners and societal elites, while also suppressing labor and social movements.

  • Example: General Anastasio Somoza in Nicaragua and General Rafael Trujillo in the Dominican Republic established authoritarian control.

• Varied Responses to Movements: Some regimes reacted violently (e.g., El Salvador’s army massacre of peasants), while others adopted more conciliatory measures by recognizing loyal labor unions and granting reforms for the populace.

US Relations with Latin America

• Good Neighbor Policy: Franklin D. Roosevelt aimed to improve relations by stressing cooperation and non-interference during the 1930s.
  • Non-Intervention Pledge: US promised at the Pan American Conference to refrain from meddling in Latin American affairs.
• Cuban Reform Crisis: Following the overthrow of Cuban dictator Gerardo Machado, Roosevelt's administration did not immediately recognize the new socialist government, showcasing complexities in US-Latin American relations.

Economic Nationalism and Nationalization

• Shift Towards Self-Sufficiency: Governments adopted economic nationalism in response to the Great Depression, promoting local industry for self-sufficiency.
  • Brazil's Success: The Vargas regime exemplified this by increasing local production of consumer goods.
• Nationalization Example in Mexico: In 1938, President Lazaro Cardenas nationalized the oil industry following labor disputes, marking a significant step toward economic independence for Mexico.

Cultural Influence

• Diego Rivera: Prominent Mexican muralist whose works were influenced by Marxist ideas and indigenous culture, illustrating political and social themes in his art.

Summary of Review Questions

• Analyze economic changes in Latin America post-World War I.
• Discuss the rise of authoritarian regimes in the region during the 1930s.
• Explain the evolving relationship between Latin America and the United States during this period.