Class22

News of the South: 

News of the South

Latin American – US Relations: 

Latin American – US Relations 1947 Rio Pact – leads to OAS Cold War Post WWII – alphabet soup OAS – Organization of American States 1948 in Bogota Regional cooperation with non-intervention Has been voice of anti-imperialism

ECLA: 

ECLA Economic Commission for Latin America UN agency 1948 Raul Prébish – Argentina economist Look at economic problems on a continental basis Colleagues could compare issues Prébisch – ECLA thesis

Prébisch – ECLA Thesis: 

Prébisch – ECLA Thesis Dependency theory Export-orientation led to “bad development” and doomed to the periphery Solution International commodity agreements Industrialize Protectionism Import substitution

Import Substitution: 

Import Substitution Strategy to promote local businesses (usually small scale) that produce goods which are usually imported Keeps money in the country Better path towards sustainability Export-based Larger corporations Less local control

Kennedy Plan: 

Kennedy Plan 1961 – Alliance for Progress Economic development with social reform Countries submitted detail plans for funding Try to develop the middle Counter insurgency No more Cubas Much more military aid

Alliance for Progress: 

Alliance for Progress Difficult proposition Elected governments develop economy at same time instituting social reforms Chile – Frei couldn’t accomplish land reform; it fell to the more radical Allende Brazil – Janio Quadros (1961) tried and fell to military; no social reform Venezuela more successful based on oil $ Colombia to be a showcase but little land reform Conflict between promoting democracy and preventing Cubas Failed policy by 1970

1970’s: 

1970’s 1973 – OPEC price hike Big jump in a basic commodity Loans from private banks – they had the oil money to loan Tried to increase exports to pay loans – Prébisch out Late 1970’s credit extravaganza Banks had money = plentiful loans Easy credit High interest

Decade of Crisis: 

Decade of Crisis 1982 – The party’s over Mexico can’t pay back, Brazil follows Borrowed to pay back loans 5 – 6% of GDP to service loans IMF enforced austerity Latin American GDP fell 8.3% per capita Hit the poorest the worst

Recent History: 

Recent History Last 12 years Democratic politics Market economics reign supreme Passing of Cold War US Bush debt relief plan ends decade of crisis Bush and end of civil wars NAFTA & FTAA 1994 first hemispheric meeting since 1967

Problems: 

Problems Financial crises 1995 & 1998 Growth down by 40% Unemployment soared Renewed doubts about ability to compete Democratic setbacks – Not Mexico Peru implodes – Fujimori Colombia downward spiral Venezuela - Chavez

Neo-Liberalism: 

Neo-Liberalism NAFTA – starts under Bush I US, Canada, and Mexico Promises to expand Languished under fears in US and Latin America Most recent history of Growing external debt Export specialization Unequal exchange rates Lower purchasing power Domestic markets insufficient to overcome “bad development”

FTAA: 

FTAA Free Trade Area of the Americas Languished under Clinton Possibly resurrected under Bush II Brazil flexing muscles Dependent on Fast Track Deals can be made by executive Congress votes on entire package No amendments

Vocabulary: 

Vocabulary

History 230-M: 

History 230-M