Latin America 1900-1950

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IA Samples
• In groups of 4 or 5 read the
sample.
• Come to a consensus as to
what grade each student
should receive for each
section based on the rubric
and add the marks
together.
• Come up with a list of
strengths and weaknesses
of the paper.
Group Roles
•
•
•
•
Moderator
Reporter
Recorder
Time keeper
Latin America 1900-1950
Background
IB Objectives
• Latin America’s responses
to the Depression: either
Vargas or the
Concordancia in
Argentina; Import
Substitution Industrialization
(ISI) or any relevant case
study of a Latin American
country
Lecture Outline
I.
Latin America 1900-1950
A. Industrialization
B. Effects of WWI
C. Effects of
Industrialization
D. Populist leaders
E. Great Depression
F. Effects of WWII
Key Terms
• Populism
• Import Substitution
Industrialization (ISI)
Foreign Intervention
• U.S. and Europe continued
to dominate the economy
of Latin America with the
U.S. gradually replacing
Britain as the primary
economic and political
power in the region.
Industrialization
• Reinforced the 19th century
trend towards urbanization,
the decline of small family
farms and craftsmen, and
the growth of the
urbanized middle and
unskilled working classes.
• Was limited to light
consumer goods
Effects of WWI
• WWI seriously disrupted the
traditional import-export
markets of Latin America.
As a result, some local
capital and labor were
diverted from agriculture to
manufacturing in an effort
to supply missing goods.
Role of the military
• Industrialization decreased
the power of the landed
elite so they often turned
to the military to preserve
their interests.
• Most military officers were
of the middle class but
their primary concerns
were social order and
strengthening the nation.
Role of the military
• The army’s support would
be thrown to either the
traditional oligarchy or to
the new urban nationalists
depending on the officers’
perception of which of the
two groups could secure
order and progress.
Populist Leaders
• To gain political power the new
urbanized upper and middle
classes were forced to join with
other alienated groups.
• These populist groups typically
pursued programs that
included limited agrarian
reform, greater social
expenditures, tariffs,
industrialization, and expansion
of rights.
Populist leaders
• Often used nationalism
and a resentment of the
U.S. as political tools to
attack the traditional
import-export power
structure.
• In the hacienda and
foreign businesses populist
politicians has highly visible
enemies.
The Great Depression
• Convinced Latin American
nationalists that exporting raw
materials and importing
finished goods put Latin
America at a permanent
economic disadvantage.
• After the Depression
nationalists argued that the
development of a
manufacturing base would
make their economies more
self-sustaining and stable.
Effects of WWII
• Increased demand for
Latin American goods
which allowed Latin
American countries to pay
off their debts and
accumulate capital for
investment in
industrialization.
ISI
• Industrialization by
substituting domestically
produced products for
imports.
• State placed protective
tariffs on the imports it
planned to replace.
• Protected industries were
given low interest loans
and guaranteed prices.
Effects of ISI
• Massive expansion of state’s
involvement in the economy
• Dramatic increase in a
country’s budget.
• High prices on locally
produced goods
• Sluggish industrial output
• Mounting foreign debts
• Persistent inflation
Effects of ISI
• Increased urbanization;
During the 1950s the urban
population of Latin America
grew at an annual rate of
4.5%, while rural areas only
grew at a rate of 1.5%. By
1960 about 46% of Latin
America’s population lived
in urban areas.
• Decrease in farm
production
BBF 250-256
• Populism
• Getulio Vargas
• Juan Peron
Born in Blood and Fire p.217-229
•
•
•
•
Nationalism
Jose Battle y Ordonez
Hipolito Yrigoyen
Import Substitution
Industrialization
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