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John Charles ChasteenA modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
“The breakup of the Soviet Union left the United States, the world champion of capitalism, as the one remaining military superpower” (329). Plus, the other large communist nation, China, liberalized its economy along capitalist lines. As a result, neoliberalism swept through Latin America. Neoliberalism, however, differs little to earlier ideas of liberalism, and everything neoliberals recommended as change had already been done before 1930. To fuel economic growth, Latin American governments borrowed money from foreign banks. Debt mushroomed in the 1980s.
Nevertheless, Latin America was viewed by foreign investors as a positive place for investment; therefore, many debts were rolled over into long-term bonds, making it possible for governments to make payments. Social spending was consequently reduced, but hyper-inflation was also halted. In 1994, the North American Free Trade Agreement (NAFTA) was created, and one year later Brazil, Argentina, Paraguay, and Uruguay created their own free-trade zone, MERCOSUR.
New industry arrived in many countries with mixed results. Maquiladoras in Mexico use cheap labor to assemble products for markets in the US, for example. Chile became the prime example of post-Cold War success. Most Chileans benefited from neoliberal reforms, though the wealth distribution remained very unbalanced. The middle-class prospered throughout Latin America, but the poor received little benefit from reforms. Support and enthusiasm for neoliberalism began to wane by the year 2000.
Following the events of 9/11, the subsequent War on Terrorism, and the recession in 2008, a move toward the left began in Latin America. An example thereof was the presidency of Hugo Chavez in Venezuela. Chavez supported the poorer citizens in exchange for patronage. He was charismatic and used governmental authority to defeat his internal enemies. His sudden death in 2013 exposed weaknesses in his government and left the country deeply divided.
The violent characteristic of Latin America during the Cold War vanished nearly everywhere except Columbia, which continued to fight against leftist paramilitary groups and drug cartels. However, peace talks between the government and the FARC were carried out between 2012-2015.
A group called the Zapatistas consisting of Indigenous rebels who opposed Mexico’s entrance into NAFTA arose in 1994. There arose a rebel group in Peru called the Shining Path in the 1980s, but after the capture of its leader in 1992, it disappeared. Post-Cold War insurgencies never gained the strength they did earlier.
The 1990s to the present witnessed the emergence of cultural politics. There was a rise in indigeneity and Indigenous grievances. Racial politics emerged, questioning mestizaje rhetoric. Protestantism gained influence, weakening the power of the Catholic Church in Latin America. Ecological concerns gained prominence, most notably the condition of the Amazonian rainforest. Immigration of Latin Americans to the US increased substantially and has become an important political topic in the US.
As a direct consequence of the fall of the Soviet Union, communism as a viable alternative to capitalism lost strength in Latin America. US economic supremacy and the flailing economies of communist nations convinced many that there was no alternative to capitalism. Thus, governments and people embraced capitalism and applied it as best as possible. Neoliberals began gaining influence in an effort to model their economies on the US example. Neoliberalism was not relegated to only foreign nations playing catch-up, however. Neoliberalism also gained influence in the US. Neoliberalism simply means new liberalism, though it differs very little from liberal ideas of the 19th century and even less so with those of the 1930s. Then as now, a central argument of liberalism is the establishment of a free world market with little governmental regulation, privatization, and a reduction in government spending. Since the new millennium, however, the promises and goals of neoliberalism emerged just as problematic and difficult to obtain as they were nearly a century ago. Too few benefited and too many suffered. An example are the maquiladoras in Mexico.
A maquiladora is most often a duty-free and tariff-free factory that assembles parts to form finished products ready for the market. It employs cheap labor, many of whom are women, and offers little to no benefits. Many liken them to sweatshops and wage slavery. Maquiladoras are not new to the post-Cold War economy, as they began in 1964. However, the fall of communism and the rise of globalization (and therefore NAFTA) increased the demand for cheaply made goods. Thus, the number of maquiladoras in Mexico rose dramatically to the point that in 2006 they were responsible to 45% of Mexico’s exports.
The dreams of neoliberals in the 1990s began faltering in the early 2000s. In 2001, Argentina, which had followed the economic guidelines recommended by the International Monetary Fund and was one of the more robust economies in Latin America, imploded. The result was widespread riots in Buenos Aires, Rosario, and other large cities. The government collapsed. The president resigned, and political and economic chaos ensued. Recovery was slow. Neoliberalism was on the decline, and governments began shifting toward the left. Capitalism was viewed as something powerful and dangerous that needed tempering. In 2002, Brazil elected Luiz Inácio da Silva. Da Silva was a former metalworker and union leader. His government was nationalistic in identity and sought to improve conditions for the most indigent citizens. Hugo Chavez of Venezuela had won the presidency in 1999. His form of nationalist government was even more social in practice that da Silva’s. He called himself a Bolivarian, styling his political ideology after that of Simón Bolívar’s.
However, he also styled himself as a Marxist, and Marx was critical of Bolívar. Regardless, Chavez’s political goals were expansion of educational opportunities in Venezuela, civilian-military unity, Latin American integration (he had introduced the idea of re-creating Gran Columbia), and national sovereignty, which meant in essence not allowing the US to dictate policy in Latin America. Chile elected a socialist president, Michelle Bachelet in 2006. Her platform focused on education and tax reform. Under her leadership, the Chilean economy grew slowly, but steadily.
Most guerilla warfare activities that were so rampant in Latin America during the Cold War ceased. Columbia’s struggles, however, continued. The FARC continued to define itself as a Marxist revolutionary group; however, in 2000 it added Bolivarian rhetoric and imagery in an attempt to garner more support. In 2002, Columbia elected Álvaro Uribe, a hardline politician bent on defeating the FARC once and for all. Any semblance of peace talks broke down during his presidency. Though he did not annihilate the FARC, the military did retake a lot of territory controlled by the revolutionaries. In 2012 there was a new president and the FARC softened. They announced they would no longer use kidnappings for ransom and released 10 soldiers and police officers held captive. Furthermore, the Columbian government and FARC leaders resumed peace talks. The Zapatistas in Mexico that arose in 1994 consisted predominantly of Indigenous people seeking land reform and a general reformation of Mexican democracy.
Large numbers of Latin American immigrants have entered the US legally and illegally. Immigration has become a key issue in US politics in the new millennium. The cause is violence and instability in many Latin America nations, especially those in Central America like Guatemala, Honduras, and El Salvador. In 2014 and 2015, large numbers of unescorted adolescents entered the US across the Mexican border. They were fleeing wide scale violence perpetrated by gangs from their areas. The largest group of immigrants are Mexicans seeking economic opportunities denied them in Mexico. The reasons are myriad, but the trend is increasing. In 2016, 1.18 million Latin Americans legally immigrated to the US. The number of illegal immigrants is not known, but the population of Hispanic immigrants living in the US in 2016 was over 57 million: “In a conflictive world of large uncertainties, the transformations created by rapid immigration produce fearful reactions; and political opportunists of various stripes exploit those fears” (350).
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