The Economic Situation Of Latin America

Chile is seen to be the quintessential model of liberal restructuring in Latin America in the late twentieth century. After the overthrow of the socialist regime of Salvador Allende in 1973, Chile’s government has implemented an authoritative economic restructuring program that replaced state intervention with market incentives and opened Chile to the global economy. This four-phase process transformed the economy from highly protective industrialized to an open free market economy based on agricultural exports. The process by which the Chilean economy was stabilized was termed “shock therapy.” Like other dramatic economic policy changes, the “therapy” caused the underlying social problems of

The loss of material and economic productivity in the war for Independence had long-lasting economic consequences on Mexico. It severely damaged agriculture, commerce, industry, and mining sectors. The most severe blow to the Mexican economy was the loss of capital; money either fled the country or was withdrawn from circulation . After the war, Mexico fell into 50 years of economic depression. The speedy rehabilitation of the mining sector would have aided national recovery greatly, but both financial and technical problems hindered its recovery until the 1880s. Because Mexico lagged behind the rest of the world for half a century, great economic advances were needed towards the turn of the century.

The new money that was obtained by rising foreign trade and investments fueled the whole system. Railways spanned the country, mines and export croups flourished. The cities acquired paved streets, electric light, trams and drains. Even though other Latin American countries also were stepping up and putting in these new improvements it was an especially big deal for Mexico because the money was going into the rich elite and it also bolstered the national government.

The South America has evolved as the one of the most dynamic region of the world so much development taking place. In 2005 Latin American economies managed to grow at average of 5.5% while inflation is in single digit which shows that it has created the economic prerequisites to deal with the aforementioned problems.

The Latin American countries have been subject to many changes ever since the American continent was discovered. These changes have mainly affected the economy, culture and power changes these countries have suffered throughout the years. According to Jon Charles Chasteen on his book “Born in Blood & Fire” During the twentieth century, there were three main events that changed the course of Latin American countries and their economies. These three events were, the emergence of nationalism, the end of World War II, and the Cuban revolution. However, in my point of view, the event that created more impact in Latin America and the future of these countries has been Cuban Revolution. It is not a secret that the Cuban Revolution created a big impact to the country’s future, unfortunately this revolution not only changed Cuba, but also the entire region of Latin America.

Some background facts about Mexico: The place of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century. The nation continues to make an impressive recovery. Ongoing economic and social concerns include low real wages, underemployment for a large segment of the population, inequitable income

Throughout the 1800s Latin America was trying to catch up with the rest of the Western world, progressing with increased exports, manufacturing, and industrialization. These advances did not stop the internal problems of most Latin nations. With these changes, as in the rest of the world, there was a growth in urban populations and in the middle class, adding another layer in the social structure; which in turn is just another group that will vie for power, and benefits from the government (180-90). This period is characterized with a large amount of wealth being concentrated in the hands of a few, which on paper shows great economic progress in the form of a GDP number, but there was still great wealth disparity. The switch, in Latin America, from conservatives in the early part of the 1800s, to liberals for the latter half, eventually turned to authoritarian governance; the democratic goals liberals set out to achieve were trashed for power and economic benefits, in keeping with previous generations (191).

Between the 1940’s and the 1970’s, Mexico’s economy had been flourishing. Their inflation was at a good range and their debt was low. With the discovery of petroleum, Mexico

The Americas, now known as Latin America, has gone through many changes in its history, from being conquered by Spain and Portugal, to the people fighting for its independence and finally, making a living as newly independent countries. From the years 1850 to the end of the 19th century, each region had influences, specifically those that dealt with the after effects colonial rule had on the land. Nations that made up Latin America began modifying different portions in their government in attempts to benefit the majority of the people. More or so, they accomplished this goal, each with their own challenges. Evidently, changes within the social, political and economic systems were focused on external factors.

The Mexican Revolution was one of the most convoluted and bloody battle, in which 900,000 people died. However, the revolution began in 20th November 1910 to put an end to the dictatorship of Porfirio Diaz Mori, it began due to the call to arms. The time when Porfirio was in charge of the whole country was known as, Porfiriato. In this time period, he increased the numbers of rurales, so he can benefit from them wisely by making them patrol highways and quells. “Porfirio Diaz also supported a country wide system of jefes politicos, or local political bosses, who were loyal to him. The jefes politicos used threats, promises, and bullying to make sure that the common people did what the government wanted them to do”. The economy of mexico took a great leap during the time period of Porfiriato, even with the help of the brilliant expert financial minister named Jose Yves Limantour, still Diaz don’t really consider the downfall of economy, but he recognizes it very well. “He also ordered a crackdown on smuggling, which cost Mexico huge sums in lost

Before the 60’s Mexico has experience a growth in their economy that was called the “Mexican miracle” because of the growth from 3% to 4% in just few time. However, after this period of growth, what followed was decades of debt. “In the late 1960s, Latin America

During the late 1800s, Latin America economy developed as the production of goods commenced. Latin American became “reintegrated into the world economy in the years after 1870, thanks to the rise in the demand for Latin America’s raw materials by the rapidly industrializing nations of Europe and the United States.” By the reintegration into the world of economy, Latin America started importing finished goods and exporting raw materials. All this was possible by the technology, capital and markets provided by industrialization nation.

Describe how Latin America, its history, culture, socio-political construction and backdrop enter into this chapter.

Latin America is important to the United States economy and politics, but why should we care about it? The United States has supported several authoritarian regimes that have swiped through Latin American countries. The United States’ main goal regarding Latin American politics is to fight and prevent communism from taking over the region. Additionally, Latin American countries contribute to the American economy through its numerous resources and exports.

La tierra mas hermosa. The most beautiful land. Latin America and the Caribbean maintain the humble beauty of many indigenous regions. The rugged mountains of Bolivia are scattered across graded lands. The Quechua people can be seen wearing richly decorated ponchos as they plant seeds for forming. Weathered volcanic lavas are stretched over the lands of Guatemala, and the heavily wooded forest trees can also be seen in the eastern slopes of the Andes. The azure blue oceans of Havana sparkle as the golden sun illuminates the sky. These humble lands have always been here; streams of people have flowed through these lands for centuries. It is only the globalización that is relatively new, and along with that comes the life one lives in these lands--pobreza y viviendo en el infierno [poverty and living in hell]. The impact of globalization in Latin America has caused a ripple in the lives of many individuals living in Latin America and the Caribbean. Although globalization is not a new concept, the process of globalization has drastically expanded and involved into social, political, and economic changes that weakens the sovereignty and power that helps create policies and reform government institutions.