The document provides an overview of Britain's economic interests in Latin America from the late 18th century to the early 20th century. It discusses how Britain gained control over silver mines and promoted its influence through trade agreements following the Latin American wars for independence. It then describes how Britain's economic influence in the region peaked between 1870-1914 but declined with the rise of the US and outbreak of WWI. The document also summarizes the political and economic instability that many Latin American countries experienced in the late 19th century as they transitioned from rule by military leaders to more civilian governments.

1. Linda Marshall Spring 2011 HIST 141 - Dr. Arguello Online 31296 Modern Latin America

2. Britain’s future trade seemed assured with the close of the Latin American wars of independence and consent of commercial treaty negotiations Britain saw this as opportunity to promote its influence against rivals, advance foreign trade, and gain control over the silver mines of Peru and Mexico Trading privileges were negotiated in Brazil by the British government in return for its support for the Portuguese royal family during the Napoleonic Wars Almost all the new governments defaulted on the loans they had contracted in London, with the mining companies failing, and the saturation of markets in Latin America bringing ruin to merchants Instituting the system of 'free trade’, Latin America's exports began to grow in value and permitted governments to start to renegotiate the loans of the independence era The Growth and Decline of British Interests in Latin America

3. Britain's economic interests in Latin America reached its peak between 1870 and 1914 WWI allowed the US to gain ground in Latin America at the expense of the European powers - also transforming Britain from a substantial international creditor into a debtor Independence in Latin America brought immense disparities in wealth, income and social status and as a result many of the region's inhabitants developed complex networks of internal trade and migration Many of the “new republics” were under the rule of the caudillos A serious shortage of money caused political instability for most governments The Growth and Decline of British Interests in Latin America

4. Political struggles brought varying levels of instability with countries like Mexico, Peru, and Bolivia being examples of the extreme, and Brazil and Chile being more stabilized Gradually more powerful national states were constructed, passing from military caudillos to civilian presidents Governments acquired resources to pay their debts through expansion of trade and growing credit in London and European financial centers Despite their outward constitutionalism the political systems of Latin America in the late nineteenth century tended to be relatively closed and undemocratic The Growth and Decline of British Interests in Latin America

5. Commercial and landowning elite saw significant , economic growth, while in many rural areas standards of living for the majority deteriorated Cities grew rapidly during the export boom consisting of a growing middle class and working class population which threatened the oligarchy During WWI problems arising from the liberal model of development based on foreign trade and capital began to become more intense In Argentina, the Concordancia kept conservative politicians in power through fraudulent elections until the overthrow of President Castillo in a military coup In Brazil Getulio Vargas led a successful revolt and instituted a regime that began a period of authoritarian rule In Mexico the election of Lazaro Cardenas brought some stability - he enacted agrarian reform, empowered workers and peasants, and nationalized railways and oil companies The Growth and Decline of British Interests in Latin America

6. NAFTA was supposed to propel Mexico into the first world but has led to stronger dependence on the US There are four Mexicos: A northern region, central Mexico, the isthmus region, and the “New Maya” region Up to half of the Mexican population lives in poverty Demographic and cultural blending is taking place between the US and Mexico with Latin America spreading north faster that “American Values” are spreading south Central America hopes to take advantage of its geography to become a corridor of intercontinental globalization Central America has fragile social security systems, high poverty and unemployment, and may be the true security threat in the hemisphere Mexico: The Umbilical Chord

7. Oil development propelled Venezuela into the first world in the 1950’s but the neglect of its agricultural economy caused it to be unstable Hugo Chavez manipulates the people because they don’t realize that the state and its resources ultimately belong to them Chavez has destroyed the professional class and uses government appointments to help maintain his position and power To manipulate the US, oil is redirected to China while Chavez threatens to cut off supplies to the US From Hugo Chavez South American leaders have gained a sense that they must work more closely to become a prosperous second-world continent Venezuela: Bolivar’s Revenge

8. Colombia represents the possibility that South America can connect to the world through the Pan-American Highway Colombia is a divided society complicated by three political powers vying for control: the government and its army, drug-traffickers, and paramilitary groups Colombia has evolved from a state of poverty to legal and economic modernity Colombia appears to be succeeding in reversing the damage of its recent drug boom with urban populations frequently collaborating to turn in drug traffickers Greater exports could provide a livelihood for many displaced people and farmers The US could help look after its sole ally in South America with a trade agreement and outsourcing manufacturing to Colombia Colombia: The Andean Balkans?

9. Brazil takes up half of the South American continent and borders every country except Chile and Ecuador Brazil formed a G-20 coalition alongside China, South Africa, and India and has imposed reciprocal visa requirements on Americans Brazil and China have struck a “strategic alliance” proving complementary to the second world countries Brazil had the highest rate of gun deaths in the world in 2003 Brazil provides food, cash transfers, education credits and power generators in an attempt to reduce poverty in its third world zones Their innovative energy strategy complements their development strategy - they are the largest producer and exporter of ethanol Brazil: The Southern Pole

10. Jose Clemente Orozco was born November 23, 1883 in Zapotlin el Grande, Jalisco, Mexico Orozco was a Mexican social realist painter, specializing in murals He led the Mexican Muralism movement with Diego Rivera, though he was more of a realist than Rivera From 1927 to 1934, he lived in the US and painted murals in New York City, Darmouth College in New Hampshire, and in Clairemont, California Orozco illustrated The Pearl , by John Steinbeck He was a pioneer in the public arts movement of the 1930s and 40s He completed his last fresco less than a month before he died in his sleep of heart failure at the age of 65 Jose Clemente Orozco Mexico

11. Jorge Luis Borges was an Argentine writer who specialized in short stories, poems and essays and was considered one of the most important writers of his generation He was born in Buenos Aires on August 24, 1899, to middle-class parents Jorge’s family moved to Switzerland in 1914, and then traveled through Europe where he was exposed to groundbreaking writers and literary movements While in Madrid, Borges participated in the founding of Ultraism and when he returned to Buenos Aires in 1921 he brought his avant-garde ideas with him By the 1960s he was world famous and had works translated into several different languages He was made Director of the National Library in Argentina which was his dream appointment His political differences with Argentine leader, Juan Peron, sent him back to Switzerland where he continued to write until his death in 1986 Jorge Luis Borges Argentina