SHELF 9780435183127 HISTORY PAPER 3 THE COLD WAR AND THE AMERICAS (1945-1981) STUDENT 60p

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Key concept: Significance Overview What was the impact of containment on Latin America? This section aims to examine the influence of some of the eady events of the Cold War and the repercussions of President Truman's policy of containment on Latin America. It will also assess the impact of the Cold War on inter-American relations. Finally, it will analyse the effects of the Cold War on Latin American societies and culture. Nzlap of Latin America and the Caribbean. Scale n America before the Cold War Throughout the 18th and 19th century, European nations, such as Great Britain and Spain, had significant political and economic influence on Latin America. However,
with the start of the 20th century, the United States' influence in Latin American affairs increased. As Europe focused on fighting the First world war, trade between the uS and Latin America expanded considerably. New financial opportunities for US capital in Latin American mines (for example, in Peru and Chile), oil industries (such as in Mexico) and agrarian projects (Cuba and Guatemala among others) emerged. In the inter-war period, many Latin American governments adopted import substitution industrialization policies (ISI) aimed at diversifiring and modernizing their national economies. Theywanted to become more than producers and exporters of raw materials, as this made them more vulnerable to international economic crises. The ISI policies aimed to develop national industries to increase self-sufficiency. The development of new industries in the first half of the 20th century contributed to the expansion of cities and the emergence of new social classes: the industrial bourgeoisie and the urban working class. such social developments had a profound impact on the politics of each nation as these new actors demanded greater participation and founded political parties which challenged the existing elites. As a result, populist leaders (such as Per6n in Argentina) came to power, both before and after the Second world war, claiming to represent these new urban sectors. They supported nationalist measures and attacked foreign interests and the traditional elites. The lSl policies expected to develop and strengthen local industries wlth the use of government subsidies and protectionist policies. Some countries in the region adopted lSl after suffering shortages of imported goods from Europe during the First World War. Others only implemented lSl in the early 1 930s, as a response to the effects of the Great Depression on their economies. During the Second World War, the United States offered Latin America economic and technical assistance to increase the production of materials necessaryfor the war efforts in these countries. The region was of particular importance as it was the only major raw material supplier not directly affected by the war. Many Latin American countries received US investments which enabled them to continue with their programmes of modernization and industrialization, while providing the United States with minerals and oil. Other Latin American industries, such as the textile industry, developed during the war as theylacked competition from developed countries. At a diplomatic level, Latin American countries reacted very differently to the entry of the US into the Second world war. while Brazil, for example, provided the united States with naval bases in the north-east and contributed with troops, Argentina was determined to remain neutral. In pairs, choose one Latin American country and research its developments between 1900 and -<strong>1945</strong>. 1n doing so, attempt to answer some of the following questions: l. What were the main economic activities? 2. What governments ruled the country in the period? 3. Which were the major social and political challenges at the time? 4. What diplomatic and military actions did the country of your choice take during the Second World War? In order to explore the impact of President Truman's foreign policy on Latin America, it is important that you consider the events you have studied earlier in this section. After the war, the United States became an undisputed economic and political power in the world. However, Soviet expansionism was perceived by the United States as a serious and immediate threat. In previous sections of this chapter, you have studied the policy of containment and related events in European countries such as Greece and Germany. Because of the magnitude of these challenges in Europe, uS policies at the start of the Cold War did not focus on Latin America. 29
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SHELF 9780435183127 HISTORY PAPER 3 THE COLD WAR AND THE AMERICAS (1945-1981) STUDENT 60p

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