The Great Depression Depression & the New Deal – Chapter 25.
The Great Depression and the Americas (1929 – 39) Objective 3.5: Consider the causes and effects...
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Transcript of The Great Depression and the Americas (1929 – 39) Objective 3.5: Consider the causes and effects...
The Great Depression and the Americas (1929 – 39)
Objective 3.5: Consider the causes and effects of the Depression and how effectively they were dealt with in the
countries of Latin America, focusing on Argentina and Brazil
Warm-Up: Statistical Analysis
Countries of South America 1913 1918 1927
Imports from USA 16.2 25.9 26.8
Exports to USA 16.8 54.8 25.2
Countries of Central America
1913 1918 1927
Imports from USA 53.2 75.0 62.9
Exports to USA 71.5 73.4 58.4
US trade with Latin American as a percentage of total Latin American trade
*WHAT CONCLUSIONS CAN YOU DRAW FROM THE STATISTICS?*
Cartoon Analysis: American Foreign Policy in the 19th and early 20th Century
Monroe Doctrine (1823)
Cartoon Analysis: American Foreign Policy in the 19th and early 20th Century
Roosevelt Corollary (1904) AKA “Big Stick Diplomacy”
Cartoon Analysis: American Foreign Policy in the 19th and early 20th Century
Dollar Diplomacy (1909)
Puerto Rico
Cuba
Philippines
“Good Neighbor” Policy(1933)
Cartoon Analysis: American Foreign Policy in the 19th and early 20th Century
Essay Analysis
Professor Walter LaFeber argues that the United States developed a foreign policy which deliberately made Latin American / Caribbean nations its economic dependents from the early 19th Century
◦Take notes to track his argument◦Decide whether what points are logical and
which do not seem fully supported
Big Question: How healthy were the economies of Latin American countries during the 1920s?
Economic developments in Latin America
Relied heavily on the export of raw materials◦Dependent on the
production and sale of one product or monoculture—i.e. coffee in Brazil
Economic developments in Latin America
Relied heavily on the USA and Western European countries, particularly Britain, for foreign trade and investment◦Neo-Colonialism?
Reasons for dependence on foreign trade and investment
Geographical factors made it difficult for Latin American countries to trade significantly with one another
Maldistribution of income—can’t afford manufactured goods
Competition with already industrialized nations to produce industrialized goods
Growth of US Investment
As a result of World War I, Western European countries became less significant trading partners
US investment in Latin America grew from $1.5 billion in 1924 to $3 billions by 1929
“Dollar Diplomacy”—interested in investment rather than trade
$
Political developments
US Supported Dictatorships
Venezuela, Paraguay, etc. $
US Supported Democracies
Argentina, Brazil, etc. $
Communism?
The onset of the Depression in Latin America
Various factors meant that the Great Depression would hit the countries of Latin America hard as they were not well equipped to deal with it…◦Governments (including US-set democracies)
were partial and tenuous◦International demand for the primary products
supplied by Latin America was largely in decline◦Growth in foreign ownership and investment
meant that profits from trade went outside the country
Warm-Up: Term Definition
What do you think of when you hear/see the following word?
◦GLOBALIZATION
Why do you think that globalization could be controversial?
“Ten Basic Questions About Globalization"
Read the question given to youAnswer the question given to you
◦You may use the “cheat sheet” if necessary to help form your response
Share your response (should only be sentence or two) with the class
“Ten Basic Questions About Globalization"
ISI DefinedImport Substitution Industrialization
◦ Trade and economic policy based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products
ISI in Latin AmericaIn Latin American countries where ISI was most
successful, it was accompanied by changes in government◦ Old neocolonial governments were replaced by semi-
democratic governments.
Banks, utilities, and certain foreign-owned companies were nationalized or transferred ownership to local businesspeople.
Case Study: Brazil and Argentina
The two case studies provided, focus on two large countries that were strongly affected by the Depression—not all countries were hit as hard, nor were all countries so large
Questions to consider…◦ What type of government did
this country have in place?◦ Was its economy dependent
on one crop or diversified?◦ Did it have any industry?◦ Who were its main trading
partners?◦ What sort of class structure
did it have?◦ How hard was it hit by the
Depression?◦ How did it get out of the
Depression?
Brazil in the 1920s:Economic problems
$$$
Concentration on primary products for
exports
Dominance of coffee
Lack of industrial development
Amount of national debt
Brazil in the 1920s:Political problems
Growth of military & urban middle
class involvement = modernization
Growing opposition to political
dominance by large landowners
Catholic church concerned with social problems
Dominated by populous provinces
of Sao Paulo and Minas Gerais
Low participation in elections
Vargas in BrazilGetúlio Vargas
◦ President/Dictator from 1930-45 and 1951-54
◦ Established “Estado Novo” ruled by decree set up a special police
force abolished personal
freedoms introduced strict press
censorship
“The Estado Novo does not recognize the rights of the individual against
the collective. Individuals do not have rights; they have duties.
Rights belong to the collective!”
Brazil in the 1930s—Fighting the Depression
Diversification Avoiding over-
reliance on singular export of coffee
Industrial Growth
Five-Year Plans
Growth in oil and steel production
Argentina up to the 1920s:Economic developments
1860-1930—strongest economy in South America (annual growth averaged 6.3%)
Absorbed 6 million immigrants from 1870-1914 (mainly from Italy and Spain)
Argentina up to the 1920s:Political developments
1916—peaceful transition to full democracy with the election of Radical Party leader Hipólito Yrigoyen ◦attempts to win support of middle classes /
urban working classes◦reforms education system
Tragic Week (January 1919)
Argentina in the 1930s—Immediate Effects of Great Depression
Budget deficit extremely high
Yrigoyen cut public
spending
Supporters lost job
Argentina in the 1930s—“Infamous Decade”
Concordancia: 1931 military coup—overthrows Yrigoyen
National Democrats, Independent
Socialists, Nationalists
General Agustín Justo
president from 1932
Growth of nationalism
Argentina in the 1930s—Fighting the Depression
Diversification Avoiding over-reliance on
singular export
Industrial Growth Growth textile
production
Increasing TradeRoca-Runciman Agreements w/ Britain (1932)
Eden-Malbrán Treaty w/ Britain
(1936)
Quickwrite
Using the summary diagram, write a response to the following prompt…
Compare and contrast the economic policies undertaken by Argentina and Brazil during the Depression