Dollar Diplomacy In Latin America

Economics becomes a large factor in the American imperialism; but more specifically that expansion in foreign markets is a vital part in the growth of America. As historian Charles Beard puts it, “[it] is indispensable to the prosperity of American business. Modern diplomacy is

The United States established diplomatic relations with the Dominican in 1884 following its independence from Spain. They are not run by a dictatorship, but through a democracy. They have a Representative Democracy government, which means that all eligible citizens vote on representatives to pass laws for them. The government has about 61% control over the economy down there. Their form of government is a lot like the United States. They have three branches (executive, legislative and judicial) of government and the court is in charge of actions against the President, designated members of his cabinet, and members of Congress.

During Roosevelt’s time in office, he strengthened the United States’ ties to countries around the world. T.R. was a foreign-policy activist. He involved himself in the relations between the Dominican Republic and the European nations that the country owed money to. The president was afraid that European powers would start to collect their money by using force and Roosevelt didn’t want that to happen in Latin America. He asserted the United States’ power in the Western hemisphere by creating what is known as the ‘Roosevelt Corollary’ in 1904. This corollary states that “although the United States had not territorial ambitions in this hemisphere, cases of “chronic wrongdoing” on the part of a Latin American country that might invite occupation by a European

The United States has influenced many nations in the world throughout history. Some of the ways the U.S. has been able to dominate poor countries are with military action and corporate activities that allowed the United States to influence their governments. Since the United States extends its power with the previously mentioned methods, it is recognized as an imperialist nation. The United States has specifically demonstrated imperialistic forces in Latin America. The effects that the United States’ imperialism had on Latin American economies and politics were negative since it brought violence and caused the poor to struggle even more. When the United Sates government did not like policies that Latin American presidents were creating, they would take military actions to force American ideologies into Latin American countries’ governments by installing puppets into their governments. Generally, these countries would have flourished economically without the United States, but since the U.S. became involved with the countries’ policies, their economies have weakened because the U.S. wants the benefits of controlling countries’ resources without being responsible for the people who reside there. This pattern of the United States’ imperialistic behavior has been demonstrated many times in Latin America.

During the twentieth century the United States of America became involved with three major conflicts that resulted in the nation shifting from a regional power into a global power. Through these conflicts the United States grew territorially, economically and industrially. Foreign policies were altered to allow the United States to gain ground on the world stage and to make their mark on the world. Through careful analysis of primary sources and scholarly document s it is clear to see that the United States involvement in the Spanish American war was the first step for the United States to grow on the world stage. The American victory in the war led to the acquisition of island territories and expanded economic and military capabilities in the both the western and eastern hemisphere as well as an increased involvement in Asia. World War I ended with American democratic ideals to be spread all across Europe. Led by President Woodrow Wilson, the United States led a one sided foreign policy that used intervention, peace treaties and military intervention to endorse international order. Despite a limited role in the war President Wilson was able to outline the Treaty of Versailles and the League of Nations and both of their presences can be found today.

Numerous motivating factors contributed to US overseas imperialism, but the fundamental underlying cause was the fact that powerful men within the US government, military and business strata craved power, expansion, wealth, and most of all, world dominance. It began subtly, as prominent businessmen like Rockefeller and J. P. Morgan began to realize that US consumership alone would not sufficiently sustain the growing industries, volume of production and produce generated within the US. In order to achieve the expansion and exponential growth of wealth they aspired to, a larger market was needed; a market capable of absorbing the abundant surplus. The solution, they believed, was expansion into foreign markets around the world.

Always present was the U.S. involvement in Foreign Affairs. Wilson’s missionary diplomacy was meant to teach Latin American countries about democracy, constitutionalism, and the process of a government based upon a system of laws. Instead of providing long-term stability, the result was lengthy occupations of the counties by American military forces. World War 1 was a time when the presidents

US interventionism in Latin America started a long time ago with the Monroe Doctrine, in 1823. A policy which stated that any intervention by external power for example from Europe is the Americas is a hostile act against the US. In simpler words, America is for the Americas. From the 1900’s till the beginning of the Cold War, the United States started the military intervention mostly in the Caribbean and Central American regions. This has started a long history of the United States intervening on Latin America issues.

American attitudes towards Latin America can be summed up as an extension of larger global directives, and the exclusion of foreign powers in the region. This was highlighted especially during the Cold War as US involvement was essentially in competition with the USSR. Latin America was therefore a mere pawn in the larger context of US-Soviet competition for global dominance. The actions and methods used are also characterized by the lack of an international authority, or an atmosphere of inter-state anarchy, which shaped their calculations in the endeavor to increase their influence over Latin America. When one analyzes the situation, it seems only rational that the United States treated its southern neighbors so, due to the geographical

The economy was expanding and the US became more interested in the well being of surrounding economies. The Dominican Republic was in debt to various European nations at this time. They were having problems paying their debts and chose to stop paying them. In response to this issue, President Theodore Roosevelt formulated an extension to the Monroe Doctrine. The Roosevelt Corollary, as it became to be known, gave the US the power to intervene with European powers coming west in an attempt to collect debts.2 The fear was that Europe, in an attempt to collect debts, would occupy and control the country in debt. With the Panama Canal on the scope, this would hinder economic stimulus in the US. President Roosevelt’s beliefs are best captured in the Corollary when he stated:

The United States and the Soviet Union competed against each other during the Cold War in the second half of the 20th Century like a chess game, with the world as their chessboard and countries as pawns in their game. For the Russians, a critical part of the chessboard was Cuba and Latin America. The Russians believed that if they could align themselves with countries in the western hemisphere, America’s “backyard”, it would help the Soviet Union counter the strong political influence and military presence America had in Europe, which made the Russians feel threatened. The Soviet Union tried to align itself politically, militarily, and economically with as many Latin American countries as it could. In

They use this clout to achieve their goals in the Dominican Republic. The Dominican Republic was in severe debt with European nations at the time. The United States goal was to payback the Europeans using the Dominican’s custom-houses (Loomis 4). These custom-houses were important economically to the Dominican Republic. The Dominican Republic received one hundred million dollars from the custom-houses since its independence (Loomis 2). The United States used its clout and convinced the President to give the United States the custom-houses receipts and the supervision of public expenditure (Loomis 4). Instead of using the money to benefit the poor people of the Dominican Republic. The United States used the customs to pay back the debt to the already powerful nations in Europe. These interests and goals fueled the United States actions in the Dominican Republic. The United States supported and protected the very unpopular President Morales who was engaged in arm conflicts with rebels. The United States supported Morales because to the United States considered Morales to be an intelligent, well-being and honest man (Loomis 3). Also, Morales fought the rebels who attacked the properties of American Citizens. Morales was the one who agree to give the United States control of the Custom houses so he could try to maintain peace in the interior of the country (Loomis 4).

At the start of the 19th century, just a few years prior to the end of the Spanish-American War, Latin America was left with a poor economy and in debt. The United States believed that they could help Latin America, while helping themselves out at the same time. The “Dollar Diplomacy” was introduced in 1904 by the United Sates and went into place in 1909. It was used mostly during presidency William Howard Taft’s from 1910 to 1913

Generally, the US foreign policy concerning Latin America was of course for the US' own benefit. If the person in power was trying to nationalize their country's economy, the US accused them of communism and proceeded to push them out, unofficially, under the pretext of national security.

Galeano portrays this moment in Latin American history as the instant U.S investors took control over the industries. He details the dangers they went through when producing one item to export for the benefit of foreigners, and how they later imported the processed goods from those same foreign countries, injecting money only overseas. The fact that Latin America needed imports to survive initiated the imperial link the U.S has upon it. As stated by Galeano, “The growing dependence on foreign supplies produces the growing identification of the interest of U.S. capitalists operating in Latin America with U.S. national security”11, bluntly showing the relationship between the United States and Latin America. “With petroleum, as with coffee or meat, rich countries profit more from the work of consuming it than do poor countries from the work of producing it”12. Because profit was not being retained in the Latin American countries, nationalization of the industries became of importance. The United States offered intervention in order to protect everyone’s interests with the proposal of free trade, but this was no more than another manipulation to continue having power over Latin America and its resources: “Latin America’s big ports, through which the wealth of its soil and subsoil passed en route to distant centers of power, were being built as instruments of the conquest and domination of the countries to which they belonged, and as conduits