Lecture 1
Challenges of democracy and development
Democracy relatively stable in Latin America (despite unrest?)
From military coups to early terminations
US in LA
Early imperialism
Monroe doctrine 1823
War against Mexico 1848 (Texas territory dispute, Mexico lost a lot of its
territory)
Controlling central America 1910, USA investments
Characteristics:
Protection of economic interests
Anti-communism
Anti-European geopolitics
Military interventions
Cold War
Support for coups Guatemala 1954, Cuba 1961, Dom. Rep. 1965
Training La military 1960-80s, School of the Americas
Supporting authoritarian regimes, South and Central America, 1970s-
1980s
Characteristics
Protection of econ interests, anti-communism, hidden but wide
interference.
1990s-2000s
Free trade agreements (NAFTA, CAFTA, Chile, Peru, Colombia)
Plan for free trade agreements (FTAA) failed
Washington consensus
1
,Anti-drugs and migration policies (DEA, el muro)
After 9/11: anti-terrorism
Anti-terrorism. New security militarisation of drugs and migration
problems.
2020 covid crisis in LA
Why the most affected region? Most people in Brazil- big country- poor
reaction by Bolsonaro.
A lot of people couldn’t follow measures- clean water, etc.
Most health care facilities- privatised, not public access.
Work culture
Non reported death
Weak state capacity
State not being able to keep track
Pandemic came on top of yet another development crisis period- 2014-
2019 (economic decline, no economic growth) Rise in extreme poverty
and non-extreme poverty.
(ECLAC- for good sources data )
Start of 20th century
Preindustrial, semi colonial society and economy
Manufactures imported; raw commodities exported
Agriculture (coffee, rubber, sugar)
Mining
Early oil extraction (Mexico, Venezuela)
Liberal development model
Oligarchic state
Huge inequalities- economic, social, political
US influence (start of imperialism)
People unsatisfied with this system
2
,Mexico Revolution 1910-1920
Authoritarian rule by Diaz 1876-1910- open economy and modernisation
with social Darwinism and misery- inclusive development, social justice
Different social groups joining forces- poor peasants, workers, middle
class, upper class, liberals, socialists
1.3-2 million people died
Wake up call for the rest of the region 1929-1930
WWII
Cause and solution for underdevelopment- THEORIES
Modernization theory- internal cultural explanation (Iberian, indigenous,
slavery legacy) (too many groups, do not want to work, don’t know how
to, not European population)
Marxism- old northern theory (first capitalism, then revolution) versus LA
reality- a new man will create a developed socialist society (Che Guevara-
didn’t need capitalism first) Marxism needed a big WC, LA didn’t have
that) Dependency theory-internal political economical explanation, some
societies underdeveloped others- AG Frank)
LA structuralists, solution oriented, another development model)
Import substitution.
New development policies 1940-1960
Aims- independence, industrialisation, modern agriculture sector, national
control over strategic sectors. (Oil, mining)
Model- mixed economy, third way. Active role of state ISI and nationalism
Oil - Bolivia, Mexico, Venezuela, Brazil
Mining- Brazil, Bolivia, Peru, Chile.
Import tariff for manufactures
State support for national industries
Importance of new or nationalised state-owned companies.
3
, ISI practise
Theory
Import tariffs for manufacturers
State support for national industry
New state-owned companies
Practise
Growth of industry
Large and expensive state institutions and subsidies (expensive and slow
model)
National and foreign industrialists also benefit
GDP, jobs, salaries growth.
Corporatism- controlled inclusion of WC
Top-down labour unions based on class, still controlled by state
Often linked to populism
1940-70, Mexico until 1980s.
60-70s
Economic stagnation, ISI reaches its limits, oil crises, less demand for raw
materials
Populist leaders lose appeal
Social discontent over social problem, top-down populist leaders,
inequality, protest, and radicalization.
Cuban Revolution 1959
Broad social support because of US interference
Extreme inequality, no industrialisation
No democratisation, corruption, repression, elite politics behind
democracy facade.
Pushing out Batista
Castro 1953
4
Challenges of democracy and development
Democracy relatively stable in Latin America (despite unrest?)
From military coups to early terminations
US in LA
Early imperialism
Monroe doctrine 1823
War against Mexico 1848 (Texas territory dispute, Mexico lost a lot of its
territory)
Controlling central America 1910, USA investments
Characteristics:
Protection of economic interests
Anti-communism
Anti-European geopolitics
Military interventions
Cold War
Support for coups Guatemala 1954, Cuba 1961, Dom. Rep. 1965
Training La military 1960-80s, School of the Americas
Supporting authoritarian regimes, South and Central America, 1970s-
1980s
Characteristics
Protection of econ interests, anti-communism, hidden but wide
interference.
1990s-2000s
Free trade agreements (NAFTA, CAFTA, Chile, Peru, Colombia)
Plan for free trade agreements (FTAA) failed
Washington consensus
1
,Anti-drugs and migration policies (DEA, el muro)
After 9/11: anti-terrorism
Anti-terrorism. New security militarisation of drugs and migration
problems.
2020 covid crisis in LA
Why the most affected region? Most people in Brazil- big country- poor
reaction by Bolsonaro.
A lot of people couldn’t follow measures- clean water, etc.
Most health care facilities- privatised, not public access.
Work culture
Non reported death
Weak state capacity
State not being able to keep track
Pandemic came on top of yet another development crisis period- 2014-
2019 (economic decline, no economic growth) Rise in extreme poverty
and non-extreme poverty.
(ECLAC- for good sources data )
Start of 20th century
Preindustrial, semi colonial society and economy
Manufactures imported; raw commodities exported
Agriculture (coffee, rubber, sugar)
Mining
Early oil extraction (Mexico, Venezuela)
Liberal development model
Oligarchic state
Huge inequalities- economic, social, political
US influence (start of imperialism)
People unsatisfied with this system
2
,Mexico Revolution 1910-1920
Authoritarian rule by Diaz 1876-1910- open economy and modernisation
with social Darwinism and misery- inclusive development, social justice
Different social groups joining forces- poor peasants, workers, middle
class, upper class, liberals, socialists
1.3-2 million people died
Wake up call for the rest of the region 1929-1930
WWII
Cause and solution for underdevelopment- THEORIES
Modernization theory- internal cultural explanation (Iberian, indigenous,
slavery legacy) (too many groups, do not want to work, don’t know how
to, not European population)
Marxism- old northern theory (first capitalism, then revolution) versus LA
reality- a new man will create a developed socialist society (Che Guevara-
didn’t need capitalism first) Marxism needed a big WC, LA didn’t have
that) Dependency theory-internal political economical explanation, some
societies underdeveloped others- AG Frank)
LA structuralists, solution oriented, another development model)
Import substitution.
New development policies 1940-1960
Aims- independence, industrialisation, modern agriculture sector, national
control over strategic sectors. (Oil, mining)
Model- mixed economy, third way. Active role of state ISI and nationalism
Oil - Bolivia, Mexico, Venezuela, Brazil
Mining- Brazil, Bolivia, Peru, Chile.
Import tariff for manufactures
State support for national industries
Importance of new or nationalised state-owned companies.
3
, ISI practise
Theory
Import tariffs for manufacturers
State support for national industry
New state-owned companies
Practise
Growth of industry
Large and expensive state institutions and subsidies (expensive and slow
model)
National and foreign industrialists also benefit
GDP, jobs, salaries growth.
Corporatism- controlled inclusion of WC
Top-down labour unions based on class, still controlled by state
Often linked to populism
1940-70, Mexico until 1980s.
60-70s
Economic stagnation, ISI reaches its limits, oil crises, less demand for raw
materials
Populist leaders lose appeal
Social discontent over social problem, top-down populist leaders,
inequality, protest, and radicalization.
Cuban Revolution 1959
Broad social support because of US interference
Extreme inequality, no industrialisation
No democratisation, corruption, repression, elite politics behind
democracy facade.
Pushing out Batista
Castro 1953
4
