28-3: U.S. Economic Imperialism in Latin
America
Latin America After Independence
Effects of Independence No unity
Feuds among leaders Geographic barriers
More poverty
Political instability
Social hierarchy continues
Conservative / Liberal Divide Conservatives favor social order Liberals want land reform
Dependence of foreign nations for capital and for economic investments
Latin America can’t unifyDisunity
Failure of Bolivar’s dreamMany newly independent countries struggle with
civil wars
By 1830s, geographic factors (mountains, the Amazon, etc.) plus cultural differences defeated attempts at unificationGran ColombiaUnited Provinces of Central America
Cycle of Poverty“Rich get richer, poor get poorer”Rich get richer:
Landowners bought land seized by new government, got wealthier
Unequal distribution of land
Peonage: use of laborers bound in servitude because of debtLarge landowners paid workers in vouchers (for
the landowners store)Prices higher than vouchersWorkers go into debt; debt is passed down
Political InstabilityCaudillos
Dictators who were popular generals held powerSupported by upper classesRule by bribery, patronage, and forceBy 1830, nearly all countries ruled by caudillos
Little opposition to caudillos
Democracy was not part of colonial heritage
ECONOMIES GROW UNDER FOREIGN
INFLUENCE
Economic DevelopmentColonies were only allowed to trade with
“mother countries” (Mexico trades with Spain, etc.)
Great Britain and U.S. become key post-colonial trading partners
Old Products and New Markets
Trade continued to be more exports than imports
Increase in exports Steamships, railroads, refrigeration, meat, and
produce
Industry did not develop on big scale
Outside Investment and Interference
Investment not made to help people Not building roads, schools, or hospitals
Loans were made by wealthy nationsHigh interest rates!
DebtUnable to pay loansDrain on Latin American economyForeigners gained control over much of Latin
American economy
United States and Latin America
U.S. Dominate Affairs in Americas
1823 Monroe Doctrine
US takes Texas and Mexican cession (28.4)
U.S. gains independence for Cuba
Roosevelt Corollary
U.S. sent troops to Cuba, Haiti, Mexico, Honduras, Nicaragua
U.S. built Panama Canal
Monroe Doctrine (1823) Europeans not allowed to
colonize in the Americas
Great Britain supports this policy
European colonization in western hemisphere = attack on U.S.
How does the Monroe Doctrine look in practice?
Example: Cuba
CubaCuba tried to get independence from Spain
war from 1868-78
José Martí Cuban writer who was exiled for calls for
independenceDied in battle in Cuba 1895
Spanish-American WarU.S. intervene (backed by Monroe Doctrine)
4 month war
U.S. and Cuba vs. Spain
U.S. defeated Spain in 1898
Cuba became independent…
BUT was ruled by a dictator who was installed by U.S.
U.S. gains: Puerto Rico, Guam, and the Philippines from Spain
Spanish-American War
A man a plan a canal Panama
Panama CanalCanal would cut the
13,000 mile trip in half
Attempted by the French in 1880s, but they fail
Theodore Roosevelt President from 1901-
1909
Offers Colombia $$ to build canal; Colombia wants more
Supports Panama’s revolution for independence from Colombia (won in 1903)
In exchange for support, Panama gives U.S. strip of land to build canal
U.S. Motives for Building Canal?
MONEY (economic interest)
POWER (strategic interest)
Building the Canal Built by U.S. over 10
years
Cost $380 million
Opened in 1914
Labor force averaged 40,000 men
Massive machines
Workers dug up more than 200 million cubic yards of earth
Problems in Building the Canal
Mosquitoes – yellow fever, malaria Combated with nets
and spraying Rats – bubonic plague Heat Flooding Many deaths Frequent landslides Culebra Cut
9-mile long stretch through Panama continental divide
Difficult to get through
Canal Facts 51-mile trip through canal takes 8-10 hours
Canal handles over 13,000 ships a year from 70 nations carrying 192 million short tons of cargo
Panama took control of canal on 12/31/99
Roosevelt Corollary U.S. needs to protect
economic interest in Latin America
Roosevelt declares that U.S. would be international police power in western hemisphere
“Walk softly and carry a big stick”
How does the Roosevelt Corollary differ from the
Monroe Doctrine?Monroe Doctrine – meant to discourage European intervention in
Latin America
Roosevelt Corollary – authorizes U.S. intervention without any European involvement
Increasing U.S. PowerThe “Colossus of the
North”United States sent troops to several nations in
the early 1900sU.S. forces entered Haiti, the Dominican Republic,
Nicaragua, and Cuba to restore civil orderU.S. took control of finances in those countries –
need to prevent financial chaos
Use Roosevelt Corollary to become more involved in Latin American affairs
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