Latin America Section 3 Preview Main Idea / Reading Focus Return of Democracy Faces of History:...

Latin America Section 3

Preview

• Main Idea / Reading Focus

• Return of Democracy

• Faces of History: Violeta Chamorro

• Democracy in Mexico

• Quick Facts: Mexico Then Mexico Now

• Market Reforms

• Map: Poverty in Latin America

• Visual Study Guide / Quick Facts

• Video: The Impact of NAFTA

Democratic and Economic Reforms


Reading Focus

• How did democracy return to Latin America?

• How has democracy in Mexico changed in recent years?

• What have been the results of market reforms in Latin America?

Main Idea

In the 1980s, repressive regimes in Latin America fell, and more moderate elected leaders brought some measure of political and economic progress.

Democratic and Economic Reforms


After decades, dictatorships across Latin America started falling in the 1980s and 1990s. Moderate civilian politicians put an end to military rule, and began a series of political and economic reforms.

• Landless poor streamed into cities, searched for work

• “Brazilian miracle” miracle for military, landowners, wealthy business people only

Peasants

• Dictatorships did not bring stability

• Death squads, civil rights repressed, mysterious disappearances, torture, killings

• People began to demand change

No Security

Return of Democracy

• Many failed to achieve social, economic reforms

• Poverty, malnutrition, infant mortality remained high

Failures of Dictatorships


Voting Rights

• Pro-democracy groups called for countries to restore voting rights, allow political opposition

• Military leaders relaxed restrictions, integrated limited freedoms

• Given a chance to vote, people did

• Voted out military, voted in new civilian governments

A Peaceful Transition

• Despite history of violence, return of democracy fairly peaceful

• Combination of internal, external forces applied pressure for reform

• International lenders demanded changes in way countries governed as a condition for receiving loans


Return of Democracy

New civilian governments • Democracy returned in Brazil, early 1970s • Argentina returned to democracy after Falklands War,

1982• Central American countries

– Returned to relative calm 1980s, 1990s– Elected moderate governments like that of Violeta Chamorro in

Nicaragua

• Chile – Enjoyed more economic success than most of region– Pinochet regime fell, 1990


Identify Cause and Effect

What factors brought about the return of democracy in Latin America?

Answer(s): severe social and economic problems; new requirements for reform from IMF and other leaders in order to obtain loans; pro-democracy groups


Mexico’s path to democracy was very different from other countries in the region.

• Mexico never a dictatorship, but not very democratic either

• Institutional Revolutionary Party, PRI

– Ruled Mexico with little opposition for more than 70 years

– Controlled congress

– Won every presidential election

One-Party Rule• Political victories achieved

through fraud, force, bribery

• Still economy remained strong

• Industry grew for many years

• Industry became dominated by foreign companies

• Companies’ profits increased, less money stayed in Mexico

• Foreign debt grew; poverty, inequality remained

PRI Politics

Democracy in Mexico


• 1980s, world oil prices fell, caused Mexico’s oil revenues to be cut in half

• High inflation, unemployment caused severe economic decline

• 1985, earthquake destroyed parts of Mexico City, created more problems for government, economy

Other Crises

• Worsening economic conditions, frustration with political corruption, crises blamed on PRI

• Police, military fired on peaceful student protestors, 1968; hundreds dead, wounded

• Government tried to cover up extent of tragedy

Demands for Reform

Democracy in Mexico


• Peasant uprising occurred in Mexican state of Chiapas

• Government devalued Mexican currency, shook public’s confidence

• More Mexicans faced new hardships in their lives

• Something had to change

1994

• 1992, Mexico, U.S., Canada signed North American Free Trade Agreement

• NAFTA eliminated tariffs on trade between the countries

• Designed to improve economies, but Mexicans feared effects of increased competition from foreign imports

1992

Democracy in Mexico


A New Era• 1997, opposition parties won seats in congress

• 2000, voters ended 71 years of PRI rule

• Elected conservative PAN party member Vicente Fox president

2006• Strained U.S.-Mexico relations on reform of immigration laws, border security

• Mexico maintained commitment to democracy with 2006 elections

• Conservative PAN party member Felipe Calderón won extremely close race

Challenges• Had to create functioning government, stable economy

• Worked to end Chiapas uprising, end corruption, improve relations with U.S.

• Made progress on most goals

Democracy in Mexico


Find the Main Idea

In what way was Mexico not very democratic until 2000?

Answer(s): One party ruled the government for over 70 years.


Economic Changes

• Shift to democracy from Mexico to Argentina brought economic changes

• Western banks pressured countries into reform measures

Reforms

• Sell government services to private enterprise

• Return inefficient government-controlled businesses to private ownership

Reforms

• Drastically cut government spending

• End some government subsidies of businesses

Reforms

• Strengthen regional trade agreements, establish new ones

• Measures intended to reduce inflation, expand imports

Market Reforms


Mixed Results• Many countries experienced economic growth, stability, others suffered• Brazil’s inflation fell from quadruple digits to less than 7 percent by 2006• Chile’s reforms cut poverty rate in half between 1990 and 2003• Business owners celebrated economic changes• Bankers, international lenders loaned billions for increased economic

development in Latin America

• Other parts of Latin America struggled

• Exports from region remained sluggish

• Countries dependent on single commodities

Struggles Continued• Many reform measures caused

hardships in some countries• Argentina experienced deep

recession in 2001, 2002• Could not pay multi-billion-dollar

debt• President devalued currency

Hardships

Results of Market Reforms


Argentina’s currency devalued• Banks failed, unemployment rate reached more than 20 percent

• Even many middle-class struggled to buy basic necessities

• Economy stabilized by end of 2003

Supporters • Supporters of market reforms say reforms have not gone far enough

• Key elements of reform, laws to protect property rights, business contracts, have not been made; political corruption still affects Latin American business

No positive effects• Even where market reforms benefited national economies, many people did

not feel positive effects

• Poverty still widespread in Latin America, gap between rich and poor wider

Results of Market Reforms


Dissatisfaction with economic problems and government’s inability to solve them has led to more political and economic shifts in the region.

• Venezuelans elected Hugo Chávez president, 1998

• Set out to eliminate poverty• To do so rejected certain

aspects of capitalism• Limited success, problems

remain• Critics concerned he has

turned toward dictatorship

Venezuela Populist• Evo Morales elected Bolivian

president, 2005• Nationalized gas industry,

supported coca farmers• Brazil elected Luiz Inácio Lula

da Silva, 2002• Former union leader,

sympathetic to poor• Managed to balance interests

of social reformers, businesses

Bolivia and Brazil

Reactions to Market Reforms


Make Generalizations

How have people in Latin America reacted to market reforms in recent years?

Answer(s): by electing leftist-leaning governments or those who are sympathetic to the plight of the poor


Video

The Impact of NAFTA

Click above to play the video.

Latin America Section 3 Preview Main Idea / Reading Focus Return of Democracy Faces of History:...

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