Latin America
In attempting to establish the current state of development in Latin
America,
historical chronology serves as the foundation necessary for a
comprehensively
logical position. Latin American development has evolved in
distinct phases,
which lead to the present day standings of the politics and
peoples throughout
the region. The culmination of distinct historical
attributes: conquest,
colonialism, mercantilism, captalism, industrialism,
and globalism, serve as the
developmental path from the past, to allow an
understanding of the current state
of development. In overview of this, as
perceived by Latin American governments,
the four primary areas of concern as
reported from the 1994, "Summit of the
Americas" held by heads of 34
countries, were as follows: (1) preserving and
strengthening the community of
democracies of the Americas, (2) free trade area
of the Americas (FTAA), (3)
eradicating poverty and discrimination in the
hemisphere, (4) education
(Americas Net). Each issue examined by members of the
summit involves aspects
of politics and economics. The desired changes in Latin
American society
can be shown connected to these two subject areas, as held by
authors
Skidmore and Smith, "From modernization theory we take the casual
premise
that economic transformations induce social changes which, in turn,
have
political consequences."(Skidmore and Smith, 10) The understanding
of
historical background, an awareness of current political goals, and
the
incorporation of modern political and social theory allow an
increasingly
accurate depiction of the state of development in Latin America
to be
constructed. Development, largely defined as bringing to a more
advanced or
effective state, stands often as the product of the successful
management and
collaboration of economic, social, and political areas. The
current state of
development should therefore gauge today’s level of success
in creating a more
advanced and effective state. In considering these
criteria, development in
Latin America may best be described as
progressively transitional, continually
improving, yet still lacking
stability and permanence in structure. This
apparent lack is causing
disfunctionalism of governmental bodies to be
successfully consistent in
altering the povertized sectors of society. The
ultimate pattern perpetuates
the social stratifications of Latin America, which
only continue to erode the
workings of development at large. To break such a
cycle, successful
structural functionalism under governments of stability and
permanence must
be achieved. Economics: Economics holds key importance in an
array of
political and social workings in all areas of the world. The factor
making
this sector a central component in successful development is that
economics
often serves as the catalyst between developmental areas. Even in
basic terms
as proposed in the modernization theory employed by authors Skidmore
and
Smith, economics alters the society, and this in turn will play a
crucial
factor in political outcomes, " Latin America has occupied an
essentially
subordinate or dependent position, pursuing economic paths that
have been
largely shaped by the industrial powers of Europe and the United
States. These
economic developments have brought about transitions in the
social order and
class structure, and these changes in turn have crucially
affected political
change."(Skidmore and Smith, 42) Keeping this in mind, one
applies this
background knowledge to the region of Latin America.
Historically, the markets
and economies of Latin America have functioned with
near absolute dependence on
the needs and conditions of foreign markets.
Largely, this economic relationship
is referred to as dependency theory. This
dependence was instilled from the
incipient colonization efforts of Spain and
Portugal, which operated on the
monarchial duty of mercantilism; all efforts
were done in honor of the mother
country alone. With the fall of colonialism
and the onset of independent
government, two major transitions occurred.
First, the newly independent
governments advanced peoples of European blood
and descent into the majority of
political positions and a new upper class
was established, "Given these new
economic incentives, landowners and
property owners were no longer content to
run subsistence operations on their
haciendas; instead they sought opportunities
and maximized profits" (S+S,
45); this would later affect economics, politics
and society as a whole.
Second, entry into a development period attempting a new
model of growth,
focused primarily upon the creation and balance of imports and
exports. The
outcomes of this period varied for different countries of Latin
America,
mainly dependent upon the resources found inside their borders and the
desire
of the outside world to invest within. Investment served as both the
promise
and poison of this period. With the Industrial Revolution altering
production
priorities around the world, less developed areas were sought to act
as a
production center of natural and raw materials, "Between 1870 and 1913
the
value of Britain’s investments in Latin America went from 85 million
pounds
sterling to 757 million pounds in 1913 – an increase of almost ninefold
in
four decades." (S+S, 43) The importance of this transition is found in
the
fact that investment in Latin America was made only to develop industry,
which
produced raw materials necessary to fuel the industrial revolution in
Europe and
the United States. The next phase of economic development was
spurred primarily
by the Great Depression, and two World Wars. What both of
these events
demonstrated was that if Latin America continued economic
dependence to such an
extreme upon foreign markets then internal unrest would
be felt by every
external, international unrest. For young markets and weak
governments, such an
outlook could not be considered. Thus, a major economic
trend developed under
the encompassing title of " primary product import
substitution," which in
response to these realizations encouraged the
creation and promotion of national
industry. To redirect market sectors
toward the production of finished products,
not merely raw materials, as
previously produced, " By producing industrial as
well as agricultural and
mineral goods, the Latin American economies would
become more integrated and
self-sufficient. And, as a result, they would be less
vulnerable to the kinds
of shocks brought on by the worldwide depression." (S+S,
53) The final
phase, following generalized periods of success and growth lead to
the
inevitable realization that the world market was becoming
exponentially
imbalanced. Impracticalities in the idea of Latin America
becoming a world
trading partner of finished goods soon showed themselves as
unemployment began
to rise from less demand on manual labor and wages failed
to rise with prices on
the world market of more highly industrialized
countries. Beyond wages however
was the more important loss of purchasing
power from their goods, "Over time,
the world market prices of Latin
America’s principal exports underwent a
steady decline in purchasing power."
(S+S, 56) For the same amount of products
used in the past, less capital
goods were being purchased. This marked the point
of entry for many countries
into failing economies and debt. Governments, in
desperation, were at a point
of decision, and the new answer came in the form
of, debt-lead growth and
corporatism. Simultaneously, there was an international
trend of opening
markets to practices of free trade. As governments
de-nationalized industry
and took on increased loans from the IMF and World
Bank, inflation ensued
throughout the economy, "Between 1970 and 1980 Latin
America increased
its external debt from $27 billion to $231 billion, with
annual debt-service
payments (interest plus amortization) of $18 billion." (S+S,
58) In
exchange for debt relief, the IMF imposed restrictions on Latin
American
economies, which were largely termed as "structural adjustments."
These
practices were being followed at first, yet the initial periods of time
proved
to burden primarily the lower classes and by-pass the elites, whose
prosperity
was secured outside of the country’s direct economy. The long-term
result of
economic reform has been the lowering of inflation, "Excluding
Brazil, average
inflation throughout the region dropped from 130 percent in
1989 to 14 percent
in 1994." (S+S, 60) Brazil Brazil did not heed the advice
of the IMF and did
not choose to undergo the stringent economic reforms of
the 1970’s and 80’s.
Although the generalized trend was a lowering of
deflation in the 1990’s,
Brazil fell short from that scenario and
inflation soared. As reported by
Skidmore and Smith, the rate of
inflation found in 1993 was 2490 percent
annually. In that same year a new
finance minister was named, Fernando Cardoso,
with his title came a $122
billion foreign debt. (My Brazil) In 1994, a new
anti-inflation program was
developed and this began to show results. Entitled,
the "Real Plan," its
stringent economic reforms lead to improvements,
"...consumer prices
increased by 2% in 1998 compared to more than 1,000% in
1994."(CIA World
Fact Book) After initial improvements, Brazil became a victim
of the 1998
world economic crisis, which began in Asia, spread to Russia and
from there
hit Brazil. Due to these pressures placed on the Brazilian currency,
interest
rates were hiked 50%, and according to the CIA, investment fled the
country,
"Approximately $30 billion in capital left the country in August
and
September."(CIA World Fact Book) After receiving $41.5 billion in
relief from
the IMF, Brazil entered a new phase of economic reform to
incorporate both a
devaluation of the currency and a free floating exchange
rate, "On 13 January
1999, Central Bank officials announced a one-time 8%
devaluation of the real,
and on 15 January 1999, the currency was declared to
be freely floating." The
immediate results from this are unable to be
realized at such an early stage,
yet companies are leaving neighboring
nations and heading for Brazil due to the
Brazilian devaluation, as
reported in a recent "Business Week" article, "
The 35% slide of the
Brazilian real against the Argentine peso is luring one
manufacturer after
another north to Brazil."(Business Week)The current
government under Cardoso
can only speculate the outcome for now. Cuba Cuba has
served as a classic
example of the problems and downfalls of a dependent market
system. The main
commodity produced worldwide by Cuba is sugar, and being a
primary product,
the price fluctuates internationally. Beyond traditional
factors that play
into the economy of Cuba, one had remained fairly consistent
over the last
two decades until 1992, when the collapse of the Soviet Union
ended any
allied funding toward Cuba, "By 1992 all Russian Economic and
military aid
was gone. Oil shipments fell 86 percent from 1989 to 1992, while
food imports
dropped 42 percent in almost the same period." (S+S, 291). And,
as reported
by the CIA, "Havana announced in 1995 that GDP declined by 35%
during
1989-93, the result of lost Soviet aid and domestic inefficiencies."
(CIA
World Fact Book) This was the ultimate and shattering example of how too
much
dependence upon any one market is unsound. This of course was only
in
addition to the struggles endured from the US embargo already in place.
Skidmore
and Smith goes on to report that in 1990, Cuba had a $6 billion
debt. At the end
of the decade little improvement has been found, as in 1998
export earnings were
reported to have declined by 22%. (CIA World Fact Book).
Most analysts speculate
that until Cuba is accepted into the capitalist West
and expands from primary
products, the cycle will only continue to fail.
Politics: An examination of
politics should logically follow economics, as
the two are intrinsically
influential upon one another, as presented earlier.
In considering economic
ramifications throughout Latin America, the prospects
of colonialism begin such
a view. Latin America is an interesting case study
due to the existence of
indigenous cultures in place throughout the region
who were exploited by
European settlers and have attempted to culminate
and blend as a single society
in the current day. The three primary
civilizations of note, Mayan, Aztec, and
Incan, were each overcome by the
conquistadors initially from both, Spain and
Portugal. Each region, being
carved as a vice royalty to a distantly respective
monarchy, bowed to the
pressures and duties of mercantilism. The colonies were
to serve the
motherland and the motherland alone. The workings of the
social
stratifications of Latin America begin as the European colonizers and
indigenous
peoples develop a class society founded on the premise of
dominance through
European ancestry. These class divisions were embodied
in three separate
categorical races: peninsulares, whites born in Spain;
criollos, whites born in
the new world; mestizos, the mixed Spanish and
Indian blood race, and the few
indigenous peoples that survived the plague of
disease brought on by the
Europeans. So began the complex social
stratifications embodied within every
facet of culture and politics. With the
defeat of the Spanish Armada,
symbolically the power of Spain was diminishing
and thus, the ambitions of the
colonies were increasing. Charles III was the
last in a succession of rulers,
which attempted to consolidate control over
the colonies. This was attempted by
both re-designing the administrative
system governing the colonies and allowing
free trade to occur from any of
the ports to Spain, as contained in, the
"Declaration of Free Trade." The
unsatisfied colonies were finally forced to
loose allegiance to the crown
when Napoleon removed King Ferdinand and placed
his brother upon the throne.
Many see this as the fateful move, which lead to
colonial independence,
"Without Napoleon’s interevention the Spanish
American colonies might all
have remained Spanish until well into the nineteenth
century, as did
Cuba."(S+S, 29) Napoleon’s action may not have caused the
rebellions alone,
yet they served as an impetus for change. This change came all
too often tin
the form of revolts and rebellions, yet slowly, the provinces
gained their
independence and a new era of struggling to establish legitimacy
and
stability in the established world order began. The economic troubles
of
these early governments had begun before the leaders had even fully
been
initiated into office and this economic frailty would follow these
governments
for decades to come. The militant warfare and fighting of the
nineteenth century
was due mainly to a combination of factors consisting of
social stratifications
and economic inadequacies. These inadequacies lead to
a period of military rule
throughout most of Latin America; some of this was
phased in and out as others
forms official dictatorships, with an iron grip
upon the people, Within a year
or so after the October 1929 stock market
crash in New York, army officers had
sought or taken power in Argentina,
Brazil, Chile, Peru, Guatemala, El Salvador,
and Honduras." (S+S, 52). As
economic troubles expanded, the role of the
military in government decreased,
"In this context of economic crisis, Latin
America turned way from
authoritarianism – and, in many cases, toward
democracy." (S+S, 60) Generally
the expanded middle class began demanding for
greater accountability within
the government. This trend increased throughout
the twentieth century and
today Latin America boasts an all time high in
democratically elected
governments, with the continued exclusion of Cuba, and
this period of
democracy may set the precedence for forms of government and
success in
fulfilling the desires of a people. Argentina The governmental
situation
within Argentina has been marked with considerable amounts of upheaval
and
violence, even when gauged by Latin American norms. Within the decade of
the
nineties much focus has been given to events in Argentina’s past,
primarily
concerns, which focus upon the Dirty War. As President of the
country, Menem had
begun a series of attempts to punish human rights
offenses, which had occurred
prior to his tenure. This action prompted mass
riots and several rebellions,
which posed serious threats and questions
toward the legitimacy of government.
Menem ceded pardons and the issue
gradually subsided, yet this serves to show
how actions and inactions of past
regimes affect the governments of today. The
continued power of military
influence upon government remains evident in
Argentina today. In 1994, as
held by Skidmore and Smith, the constitution was
reformed for proclaimed
reasons of efficiency and transparency, although some
viewed it as a maneuver
by which to prolong the rule of Menem. Menem was indeed
successful in
prolonging his term by winning the elections of May 1995. Under
Menem,
much of the Argentinian foreign policy mirrored that of the US,
"...
Menem adopted a foreign policy in line with the United States (the
foreign
minister, indeed, was reported to have quipped that Buenos Aires was
seeking"carnal relations with Washington)." (S+S, 113) In October of 1999
elections
were held once again, this time favoring candidate, Fernando de la
R?a
Bruno by receiving 48.5% of the popular vote over contender
Maldonado.
(Elections in Argentina) Chile Chile mirrors the haunting past of
Argentina, as
former criminal acts are now on the forefront of the modern
political agenda.
Only since the nineties has Chile consistently begun to
follow democratic
procedure. This procedure has of course, included
investigations of past human
rights abuses. The source of the conflict has
most often come down to a single
man, Pinochet. The role of the military in
the Chilean government is still
heavily felt in many sectors of government,
most notably the judiciary; thus the
struggle continues to design democracy
amidst military tradition, precedence,
and pressure. These pressures overall
are beast summed up by Skidmore and Smith,
"Chile’s newly restored
democracy also faced formidable obstacle: an
ever-alert army still headed by
an unrepentant Pinochet, a pro-military
judiciary, a rightist-dominated
Senate, sporadic terrorism from left and right,
and the explosive issue of
what to do about past human rights abuses – with
its potential to ignite
civilian-military conflict."(S+S,145) The presidential
election of 1993
brought victory to Eduardo Frei, the son of a former Chilean
President.
The economic security and growth felt throughout the Chilean economy
during
the nineties was a stabilizing effect upon government as well. The
elections
held in December and Jamuary of this year introduced candidate Escobar
to the
presidency (Elections in Chile). Escobar ran on a platform to
decrease
governmental intervention in economics and increase focus and
spending on public
works. This marks a notable transition from past military
rigidness faced by
businesses and industry. Poverty: Stemming from the
"dependencia theory,"
the source of poverty throughout Latin America might
possibly be postulated in
any number of manners. The fact remains that at
some point a world based totally
on agrarian and manual labor, was altered by
the industrial revolution. Latin
America was certainly chosen to be the
warehouse of supplies and materials, not
the boutique boasting finished
products. Once an economic cycle begins, it
becomes difficult to alter; many
years later, international powers have
faithfully held the same positions,
including Latin America. The fate of third
world is largely determined by a
lack of economic opportunity, which many might
contend is ultimately
inaccessible due to a lack of education. Mexico With a
population of 85
million people, Mexico boasts one of the largest citizenries,
yet also one of
the lower standards of living.(S+S, 4) Together, high numbers of
people, with
low standards of living, has made Mexico a country plagued with
poverty, and
with that, higher rates of crime. The mid nineties brought further
economic
crisis to Mexico as NAFTA had unpredictable effects on the Mexican
economy,
"Fearful of the overvaluation of the peso, investors withdrew more
than $10
billion from Mexico within a week." (S+S, 261) This of course led the
US
to create an emergency aid package, necessary to prevent default on
Mexican
debts. The ultimate concern has and continues to be the direct
connection
between market conditions and the welfare of people at large,
which only shows
grim results for now, "Between 1963 and 1981, according to
one study, the
proportion of Mexicans below the poverty line dropped from
77.5 to 48.5 percent;
but from 1982 to 1992, under the pro-market reforms, it
rose again to 66
percent. (S+S, 262) Haiti Considered to be the poorest
country in the Western
hemisphere, Haiti serves as the ultimate of lowered
living standards, " With a
population of about 6.7 million, Haiti has a per
capita income of approximately
$370. (S+S, 301) Originally colonized by the
French, Haitian slave labor from
Africa eventually took over government.
Following a political history of
violence and rebellion, Haiti still remains
on the outer edges of political
stability. Aid amounts given to Haiti are
high, yet the actual dispersion of
these funds is halted often if the
government shows signs of internal fracturing
or corruption. Here is a list
of aid currently being given to Haiti: United
States $458 million
European Union $467 million Canada $133 million France $121
million Germany
$76 million Japan $28 million Switzerland $20 million Holland
$12 million
Other $140 million Multilateral Inter-American Dev. Bank $761
million World
Bank (International Dev. Association) $377 million International
Monetary
Fund $131 million U.N. Dev. Program $38 million Other U.N. $50 million
$2.8
billion (Center for International Policy) Education: Education is able to
be
shown in direct correlation to one’s standard of living and thus,
this
becomes a central issue on both the political and social agendas of
Latin
America. The low budgets of Latin American governments often leave
public works,
including education, on the bottom rung of priorities. Money is
needed to
attempt to solve problems caused ultimately by a lack of education,
instead of
being spent on education itself, thus this creates a problem of a
self
perpetuating nature. Only in the twentieth century has this cycle of
poverty and
dependence been actively pursued by increasing the quality and
standards of
education, and political activism has been a central mode
through which such
changes might be made. Peru Peru is highlighted under
education to understand
the multi-facted uses of education in Latin America.
Far from traditional
educational institutions, agrarian education as well as
environmental education
has a far more valuable impact in these countries.
"Perumujer" is an NGO,
which spreads literacy throughout farming regions, yet
more importantly, adds
components of conservancy and ecological education
which not only allow the
Peruvians to farm more efficiently, yet bring
higher yields of food using
smaller land area. Many of the storms throughout
Latin America cause mudslides,
which kill thousands each year; most often
this is due to barren hillsides,
which have been inappropriately farmed.
Education in many countries focuses on
applicable and pertinent living skills
and this can make an impact with
unlimited benefits. Costa Rica This island
country is one general exception to
the trends of education in Latin America
and thus is used as an example of
possible success in the educational sector.
Over the last ten years, Costa Rica
has boasted a 93% literacy rating, far
above the averages held by many tropical
neighbors.(Info Costa Rica.com) This
exists as the most literate population in
Central America. In 1869 the
Costa Rican government, having generated large sums
of wealth from the coffee
industry made education mandatory and free. Then
having one the lower
literacy rates, one in ten could read and write; Costa Rica
sets an uplifting
trend that has developed over time. Not having a university
until 1940, Costa
Rica now proudly has four such places of study and continues
to devote more
money toward education annually. Students, under President
Figueres, are
now required to take English, tying Costa Rica more closely into
the new
economy and increasing success for tourism. (Info Costa Rica.com) In
an
analysis of the structures in place in the areas of economics, politics,
poverty
reduction, and education, one sees that the state of development in
Latin
America is not neglected for sure-sighted tactics are consistently
being
employed. The point of interest is that within all of these categories,
most
political stability has not fully developed until the onset of the final
decade
of the twentieth century. Development in Latin America is a priority
and
examples of successes are amply available, even in the midst of setbacks.
In
summation, the development of Latin America is progressively transitional.
With
time, continued effort, and constant pursuit of democratic principles,
the
development of Latin America will
succeed.
Bibliography
Elections in Argentina by Wilfried Dirksen,
2000 http://www.agora.stm.it/elections/election/argentina.htm
My Brazil
by Sergio Koreisha, 1997
http://darkwing.uoregon.edu/~sergiok/brasil.html
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Brazil, 2000
http://www.odci.gov/cia/publications/factbook/br.html#econ
CIA World Fact
Book: Cuba, 2000
http://www.odci.gov/cia/publications/factbook/cu.html
Business Week
(International Edition), January 17, 2000 "Adios, Argentina –
Companies
are Leaving for Brazil." Elections in Chile by Wilfried Dirksen,
2000
http://www.agora.stm.it/elections/election/chile.htm Center
for
International Policy; Haiti: Democrats vs. Democracy by Robert E.
White http://www.us.net/cip/democrac.htm
Peru Mujer: Peruvian Literacy
project http://www.literacyonline.org/explorer/peru_over.html
Info Costa
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http://www.infocostarica.com/education/general.html