ReviewWhat area did the United States of America claim as a sphere of influence?

What areas does this include?

What is a sphere of influence?

Anything south of the USA in the Western Hemisphere: Mexico, Central and South America

All of Latin America

An area of exclusive trading rights

Imperialism in Latin America

Remember

Latin America had won independence from Spain, France and other European nations throughout the 1700s and 1800s

Leaders like Bolivar, L’ouverture and Hidalgo led their people to independence

Even though they were independent there was little change in society in Latin America, with the encomienda system roughly still in place.

Post Revolution Latin America

Though Simon Bolivar tried to create a united Latin America, such as Gran Columbia, it failed due to regionalism and disputes among leaders.

Throughout the late 1800s and 1900s nearly 20 nations will appear in Latin America

Colonial LegacyThe Europeans had ruled so completely the Latin Americans had severe obstacles:

-No experience with self rule

-Racial system remained but the Creoleswere now on top

-Economy based on large haciendas; large plantations run like a Feudal manor

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X

CaudillosThe governments were weak and lacked support. Instead local strongmen created armies to overthrow government. They would then assume the role of dictator and harshly deal with opponents.

Despite independence, power remained in the hands of a privileged few.

Economic LegacyThe Europeans had instituted strict mercantilist policies in the American Colonies. The colonists had to send raw materials to Europe and buy the manufactured goods sent back.

They were not allowed to trade with other countries OR create their own industry

Economies of Dependence

Economies of dependence occur when less developed nations export raw materials and commodities to industrial nations, then import manufactured goods, capital and technical know-how.

Example: American Colonies owned by the British

Economies of DependenceAfter independence the Latin Americans opened up to foreign traders such as America and Britain. However, the trade terms were completely controlled by the foreigners; they set the prices and rules.

However, because the Latin Americans had no industry and lacked other trading arrangements, they had to accept the terms.

Given this set up, do you believe the Latin American’s economies prospered? Why or why not?

Slow Economic Growth

The economy grew VERY slowly.

The economy was slow growing for 2 reasons:-Foreign exploitation

-The social elite became very wealthy but the $$ didn’t “trickle down” to the lower classes.

-with no money, there is no demand

Despite slow economic growth for the Latin Americans, the foreign investors did build infrastructure (roads, bridges, etc) to transport raw materials and finished goods.

Mexican War 1845Many Mexicans were unhappy with the Mexican government and wanted to break away. In Northeast Mexico, American settlers and Mexican reformists declared independence from Mexico.

In 1845 the United States agreed to annex Texas (take it into the states)

The Mexicans viewed this as an act of war, and the Mexican War began.

American won and Mexico had to relinquish (give up) its Northern territories, nearly 50% of its total land.

La ReformaEra of reform led by Benito Juarez:

-Military stripped of political power

-Church forced to sell lands to peasants

-Mestizos enter political life

-Separate Church and State

-United Mexico under one government

Order and Progress

When Juarez dies, Porfirio Diaz assumes control of the government and names himself emperor.

He uses the slogan “order and Peach” to gain support.

In office he strengthens the military, police and central government

Improved economic situation by building railroads, improving foreign trade, and increasing industry

All opposition is crushed

PeonageDespite reforms made by Juarez and Diaz, the economic situation of the mestizos and mulattoes remained dismal.

The system of peonage was introduced to keep the people in slave like conditions:

-a worker borrowed money from future wages, then had to work off the debt

-paid low wages-high cost of living-never taught how to read and write

** the people could not escape the system**

Colossus of the NorthIn 1820 the Spanish wanted to recolonize parts of Latin America. The British opposed this because they didn’t want to lose their trading partner. Britain asked America to join them in declaring “no more colonization in Latin America”.

Instead, president James Monroe issues the Monroe Doctrine:“The American continents are henceforth not to be considered as subjects for future colonization by any European powers.”

Monroe claimed it was to keep Latin America safe and free from European interference.

Basically the US said they would take care of the Western Hemisphere, and the European powers needed to stay out. Wanted to guarantee freedom for all of the Western hemisphere

Roosevelt CorollaryTeddy Roosevelt added to the Monroe Doctrine, claiming the US would be the international police power of the Western Hemisphere.

Allowed for American intervention in the Dominican Republic, Cuba, Haiti, Mexico, Honduras, Nicaragua, Panama and many more

The Americans would intervene in these countries to safe guard the investments of American businesses in Latin America.

Panama Canal opened 1914

The US wanted a canal to connect the Atlantic and Pacific oceans to speed up trade and military movements.

The ideal location was in Panama. However, Panama was controlled by Columbia, who refused to sell the land to the US.

When Panama declared independence the US supported them financially and militarily. When Panama won they leased the land for the canal to the US.

Why is Panama the ideal location?

Impact of ImperialismImperialism caused drastic changes across the world. Economic changes include

-Emergence of Global economy-Money economy-Modernization-Dependency

Global EconomyWestern industrialized nations send machine made goods, technology and investment capital around the world. The world mostly shifts from local traditional economies world wide trade markets

Before After

People grow their own food

Goods are produced by hand

Food can be transported around the world

Goods are machine made, cheaper and better quality

Money EconomyThe bartering system is replaced with the money system. Goods and services must be paid in money currency, not trades.

To earn money workers had to work long hours for little pay. In many cases women were sent to work for money, while the men stayed home to farm.

Are we a money economy or barter economy? What is the difference?

Dependency Mass produced goods flooded into foreign markets, making traditional self-sufficient communities dependent on the industrial powers. The industrial powers bought raw materials and sold goods.

Many colonists choose or are forced to grow cash crops leading to famines in traditional societies.

ModernizationMany of the things we take for granted occurred during the new Imperialist age:

-Modern banking system-New technologies and machines-Communication systems-Transportation systems

Cultural Impacts-Europeans convinced of their superiority and duty to civilize the world:

“The more of the world we inhabit the better it is for the human race… If there be a God, I think what he would like me to do is to paint as much of the map of Africa British red as possible.”

-Westernized=modernized

-medicine spreads: vaccines and hygiene save millions of lives

-Christianity spreads around the world, especially into areas without strong religious convictions.

-Most controlled nations create a blended culture: mix of western and traditional

Impact on the WestThe Columbian Exchange sped up providing more food and goods for people around the world

Political tensions arise as western powers compete over foreign areas

Nationalism causes tensions in nations put together by the Europeans (Africa)

The building tensions and rise of nationalism will lead to WWI