This document provides an overview of politics in Canada and Latin America in the first half of the 20th century. For Canada, it discusses the growth of French-Canadian nationalism, the impact of World Wars I and II on conscription and sovereignty, and Canada transitioning to full independence through the Statute of Westminster in 1931. For Latin America, it focuses on the Mexican Revolution from 1910-1920 which sought to reduce foreign control but ultimately saw landowners maintain power, as well as the industrial growth and increasing foreign investment across Latin America in the post-WWII era. Specific countries discussed include Mexico, Brazil, Argentina, and Cuba.
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Canadian and Latin American Politics in the Early 20th Century
1. IB History
Canadian and Latin American politics in the 1st
half of the 20th
Century
A. Canadian Politics in the 1st
½ of the 20th
century
a. French-Canadian nationalism
b. Impact of the world wars: conscription, nationalism, sovereignty
c. Regionalism and minorities
d. Relations with the US and Britain
e. The Commonwealth of Nations
B. Latin American politics in the 1st
half of the 20th
century
a. Mexico
b. Brazil
c. Argentina: Vargas, Peron
d. Cuba
CANADA
- Building a Modern Nation
o In 1812, there was no Canada, just 6 British provinces above the US. Eventually
they would unite and become modern day Canada.
o Lower Canada and Upper Canada wanted a strong government that would answer
more to the interests of the people than to the British government
Lower Canada, the French led a protest, feeling they were not adequately
represented in the province’s legislature.
Upper Canada wanted the government to stop changing laws that were
already passed by the legislature
• Both protests were put down, but their voices were heard by
Britain, who did not want to lose their provinces the way they lost
the colonies
o Queen Victoria sent Lord Durham to Canada, who prepared
a report arguing the more self government that was given,
the more loyal the citizens would be to Britain
o In 1864, provincial leaders and met to discuss the formation of a confederation, a
system where government is divided between the national government and
various provincial governments
o 1867 – Britain approved this idea with the passing of the British North America
Act, which also served as Canada’s constitution
Canada was set up as the Dominion of Canada and broken 4 provinces
with Ottawa as the capital
• Ontario
• Quebec
• Nova Scotia
• New Brunswick
o Canada sought to expand, but there were very few living west of the Great Lakes
2. In 1869, Manitoba was carved as a 5th
province
By 1871, British Columbia became the 6th
province
1873 – Prince Edward Island
Early 1900s, Alberta and Saskatchewan joined as well
o By 1914, Canada stretched from the Atlantic to the Pacific, in many ways free
Ottawa made most of the laws
Free trade with other countries
o However, when Britain went to war, the Canadians were obligated to do so, with
600K serving
The war would change the way Canada viewed its relation with Great
Britain
• 1918, they insisted on signing the Peace Treaty, not wanting
Britain acting for them
• 1922, Britain wanted to send Canadians to fight for them in Turkey
and the Canadians refused
• 1923, Canada signed a treaty with the US, taking charge of their
foreign relations
o In the early 1900s, the British Commonwealth was formed, with Canada being
part of it, but as time passed, many wanted to be free from Britain
o 1931, Britain passed the Statute of Westminster which would allow
Commonwealth nations to choose whether they wished to remain a
commonwealth
Canada chose its own government, therefore would need a new
constitution
• April 12, 1982, Queen Elizabeth II flew to Ottawa and signed a bill
that made the new constitution the law of the land
o Quebec was the only province that voted against the new
constitution, because most were descendents of French
settlers, and wanted their own language and rites since
1970s
• The new constitution made Canada a bilingual nation, so as to
appease the Quebecois, and required each province to make French
available in the courts and in schools
o Today, Canada has a federal system of government, each of Canada’s 10
provinces have their own government that they share with the central government
Canadian Parliament makes laws and sees they are carried out
• House of Commons
o Voters in each province elect members who serve for 5
years, with the party having the most seats being the
majority
o Majority party picks the Prime Minister
Sees that the nation’s laws are obeyed
• Senate
3. o 104 members are appointed by the governor-general, who
represents the British Monarchy
o Role is to study and publish the problems facing the nations
o
• Courts
o Judges are appointed for life, therefore they can make
rulings without worrying about losing their jobs
- The Maritime Provinces
o Newfoundland is the largest
1920s and 1930s business slowed, millions lost their jobs, the government
did not have enough money to run the nation and had to turn to Britain
• They once again became a British colony
When World War II broke out, Newfoundland became prosperous again
• Located along the main supply lines between North America and
Britain
o Airstrips were built so that planes could refuel and make
repairs
o Harbors were built to shelter strips
After the war they had to decide whether to be a province or not, and
voted to become Canada’s 10th
province
• Today, fishing is the main industry
• In the 1960s, large amounts of oil and natural gas were found,
causing the province to fight over ownership of the resources
o Today, Newfoundland shares the profits
o New Brunswick
Area makes plentiful use of timber, which is its major market
• Also fishing and farming, with lobsters being the most valuable
product
Today, jobs are hard to find and many have left the area
o Nova Scotia
Mostly fishing, the largest fish processing plant is located there
Poor soil makes farming difficult, but fir trees have become a major cash
crop
Halifax is the center of the shipbuilding industry
o Prince Edward Island
Agriculture dominates this area, with strawberries, blueberries, apples and
raspberries
- Quebec Province
o 80% today are French speaking, with a major influence of French culture, such as
buildings, homes and churches
Montreal is seen as the future
• Founded by Roman Catholic nuns and was well established under
the French when the British took over
Main financial district
4. o 1960s conflict broke out between the French and the English, threatening to split
the area into 2
The French wanted to maintain their heritage and culture, even though the
French ruled ended in 1763
• 1960, Jean Lesage led the ‘Quiet Revolution’ that led to the greater
protection of French-Canadian rights
• Separatists wanted Quebec to become their own nation, feeling
they were apart from the rest of Canada
o 1980 they voted on the decision, with a turnout of 60%
voting to remain unified
As a result, some still seek special recognition, such
as making French the only language of the area
Drafted the ‘Meech Lake Accord’ that would make
Quebec a “distinct cultural society.”
- Ontario Province
o Ottawa is the home of the Canadian Parliament
o Toronto is the hub of cultural and economic life
- The Western Provinces
o In 1914, oil was discovered beneath Alberta, bringing new wealth to the province
Edmonton and Calgary quickly grew into large cities
Today, the province produces 85% of Canada’s petroleum and 88% of
natural gas
- British Columbia
o In 1940s, gold was discovered in the northern mountains, making mining an
important industry
LATIN AMERICA
Some background about Latin America in the 1st
½ of the 20th
century
- 1910-1930
o The Mexican Revolution of 1910 was the 1st
major effort in Latin American
history to uproot the system of estates and curb foreign control of the area’s
natural resources.
o The constitution of 1917 spelled out the social content of the revolution, and the
period was marked by struggle between agrarian and bourgeois revolutionaries,
which the latter emerged victorious and would have the peasants still be
subservient
Despite the faux pas, the revolution gave way to art, literature and social
sciences, making Mexico a leading place in the cultural life of Latin
America
o World War I disrupted the import of goods needed, therefore diverted some labor
to producing manufactured goods in order to compensate
The postwar era encouraged an export economy once again
5. The US would be the leading source of foreign investments in the area,
with the government using armed intervention and economic pressure to
expand US control over the Caribbean
• By the end of the period, Latin American resentment forced policy
makers to revisit their strategy when dealing with Latin America
- 1945-1959
o the postwar era would have Latin America industrialize rather quickly, but when
1950 hit, this too would slow
foreign investors would shift their money to manufacturing, since the price
of raw materials was declining
• foreign companies had the technology, therefore they were able to
set up the manufacturing facilities in Latin America
o many small national companies were swallowed by foreign
ones
o foreign investors favored “mixed companies” with the
industry dominated by foreign investment and nationals
being like a junior partner
o Brazil and Argentina would see the largest gains in the industrial worlds, though
their governments were oligarchies, fearful of the change in government
Once these governments fell, that gave way to the conservatives
• Mexico too would instill a government that favored large land
owners and neglected the peasantry
o Cuba grew unrestful and there was the armed overthrow by Fidel Castro in July of
1953, and the rebel army would take over 1 January 1959
MEXICO
- Order and Progress
o Porfiro Diaz came into power in from 1876 to 1910 and though elections were
held, Diaz would decide who would run, who could vote, and how the votes
would be counted
Silenced any political opposition, ruling as a dictator
o Sought to bring progress to the nation, making business and industry grow
Expanded business, railroads and invited American and English oil
companies to come and look for oil
• Helped Mexico become one of the largest oil producers in the
world
All helped Mexico pay off debts from the war
• Other countries no longer saw Mexico as a weak nation to invade,
rather they marveled at their progress
The people paid a heavy price
• Foreigners became wealthy, the Mexicans became poorer
o Many salaries were cut in half
6. Campesinos, people who were employed by large land owners but had to
buy their own tools from the landowner’s stores, were a common
occurrence. Though they were not slaves, they could not find jobs until
their debts were paid off, essentially they were serfs (Russia)
• At times they would band together and demand changes, but Diaz
always sided with the land owners
o 1910, Mexico was ready for revolution - Mexicans cried, “Viva la Revolucion” or
“Long live the Revolution.”
On the eve of the presidential election, there were many peasant uprisings
and worker strikes became more frequent
Mexican Liberal Party journalist Ricardo Flores Magon intensified
conspiratorial activities and divisions in the oligarchy became more
apparent
• Diaz, who died in 1910 at the age of 80, contributed to all this
unrest in 1908 when announcing to an American journalist in an
interview, that Mexico was ready for a democracy and welcomed
the emergence of an opposition party
o Francisco Madero took him at his word, fearing that the
way things were, the poor being in their state, would lead to
social revolution
o He proclaimed in his book The Presidential Succession in
1910 that there was a need for democracy in order to
preserve social stability, that was threatened by the
absolutism of Diaz
Madero made clear that by democracy, he meant
control by the elite, because he felt the ignorant
masses should not take part in deciding who should
run for public office
o Madero was critical of Diaz
Genocidal Indian wars
Violent repression of strikes
o Proposed policy of modest concessions to peasants and
workers that would reduce mounting tensions and the
growth of radical ideas
Saw democracy as an instrument of social control
that would promote the development of capitalism
by granting limited political and social reforms with
a large stress on education
o By 1909 Madero began touring the country and making
speeches to promote his reform programs
o By 1910, and anti-re-electionist party formed and
announced Madero as its candidate, with Diaz refusing to
take Madero seriously
7. Soon his popularity alarmed him and he had
Madero arrested and charged with preparing an
armed insurrection
September announced that Diaz and his hand picked
VP Ramon Corral had been elected by an almost
unanimous vote
• After the election, Madero was no longer
dangerous in Diaz’s eyes and was released
• Madero was convinced that Diaz could not
be removed by peaceful means, as he had
tried before, resorted to armed struggle
• He fled to Texas and from there announced
the Plan of San Luis Potosi
o Called the recent elections null and
void and assumed the title of
provisional president and promised
to hold general free election as soon
as conditions permitted and turn
power over to the newly elected
president
o The plan made vague reference to
the land that was taken from peasants
but most articles dealt with political
reforms
o A revolution was allowed to form on
American soil with little interference
of the US government (what does
this suggest about the US)
o Diaz felt that American investments
in Mexico were threatening
economic independence and openly
supported British investment over
American
o The revolution began at a shaky start when Madero crossed back into Mexico
with only 25% of his supporters waiting for him, therefore he returned to Texas
o It soon gathered momentum with 2 peasant revolts responding to his call
Chihuahua – peons and small farmers were suffering under the rule of the
Terrazas-Creel clan, masters of a land empire
Began under the guidance of Pancho Villa who had a reputation of taking
from the rich and giving to the poor
• By the end of 1910 guerilla armies had seized control of most of
the state from federal troops
In Morelos, Indian communities had waged a continuous struggle against
the encroaching sugar haciendas
8. • Here Amelio Zapata, attracted by the promise of land reform,
proclaimed loyalty to Madero
• In May of 1911 the rebels won 2 victories
o Zapatistas captured Cuatla, an important railway center
o In the north, Pancho Villa captured Ciudad Juarez
• Diaz decided to reach an agreement with Madero instead of having
the capital captured by rebels
o Madero signed the Treaty of Ciudad Juarez on May 21st
,
which provided for the removal of Diaz but left in tact the
all existing institutions
Completely silent on social change
o May 25th
, the aged dictator left presidency and headed for Europe, Francisco Leon
de la Barra, Mexican Ambassador to the US assumed the interim presidency
he was close to the old regime and little changed, he had no sympathy for
the revolution
• the aristocracy was still trying to hold onto its allies and regain
power
• the Diaz bureaucracy remained in tact
• social conditions remained unchanged and the provisional
government sought a return to the status quo
o efforts were made to disband the revolutionary troops and
de la Barra sent in troops to incite hostility against the
Zapatistas, who began confiscating large amounts of land
and giving it to the poor
Madero was unable to do much and more hostility
erupted toward the anarchist who couldn’t do much
for Mexico
11 October 1911, Madero and his running mate were elected anyway
- Madero’s Presidency: Inadequacy and Revolt
o Though he assumed the presidency, there was no apparent solution in sight for
Mexico’s problems
He sought to give the masses the illusion of power and participation in
political life but vested all decisions in land on the elite
He did allow workers to organize trade unions and to strike but his answer
to the agrarian problem was inadequate
• Would purchase land from large land owners to distribute among
landless peasants
o He was, in fact, against taking the land from the haciendas
because he felt the only way for Mexican agriculture to
modernize lay in large landowners
This caused a split with his most faithful supporter,
Zapata
o Zapata announced his own program in November of 1911 – Plan of Ayala, saying
that land owned by the elite would be returned to the poor
9. This soon spread to other states in Central and Southern Mexico
o Madero’s failure on agrarian reform lost him the trust and support of the
revolutionary peasantry
o The elite dreamed of return of the Paradise of Don Porfirio, when the peasants
and Indians knew their place, and counterrevolutionaries took their place after
Madero took office in 1911
Many small revolutions were successful and Madero faced more and more
danger, and he lost the support of the US
• American capitalism increased there and they regained their former
dominant position
• American Ambassador Henry Lane Wilson became increasingly
hostile to Madero and by February 1912 there were 100K troops
stationed along the border, with Wilson making threats to intervene
if American life and property were not protected
o Preparations for a coup d’etat were underway with General Huerta the leader
The American Ambassador was secretly negotiating with Huerta and
Wilson sent Madero a protest against the conduct of military operations in
Mexico City because it threatened American life and property
• America sent in troops but Madero said he would rather die than
allow foreign intervention
- Huerta’s Dictatorship
o 18 February, Huerta’s troops entered the palace and arrested the president, VP and
other members of government
o A dispute of who should lead the new government was settled by Wilson’s
meditation
It was decided that Huerta would lead and Diaz would resume as soon as
an election could be held
Congress was intimidated and recognized Huerta as a provisional
president
The question remained of what to do with Madero; Huerta said to do what
is best for the country. His wife begged that he be protected but Wilson
refused, and Madero was killed when being transferred from the National
Palace to the Penitentiary
o Huerta’s seizure of power was an attempt to set back the clock to the old
aristocracy and restore the personal dictatorship of Diaz
Huerta sent Felix Diaz to Japan on a diplomatic mission and prepared for
his own election by arresting 110 congressmen and dissolved both houses
• Installed a new congress packed with his own military followers
• Results of the election were obviously falsified that Huerta’s
congress, with his approval, nullified it and put off a new election
until a future date, with Huerta as the provisional president
o Huerta hoped to quell reactionary character as long as
possible and invited some seriously interested in reform to
his cabinet, but any reforms were turned down
10. Many ministers were dismissed or quit and then
were replaced by military men
The regime turned more to a terrorist nature
- Opposition: Zapata and Villa
o Huerta anticipated a quick victory over the peasant revolutionaries but seriously
miscalculated
Campaigns against the Zapatistas failed to achieve decisive victories
• Zapata himself led a struggle in Guerrero, the south, forcing Huerta
to commit a significant portion of his troops to the insurrection,
therefore allowing the revolutionaries to gain strength in the north
o Between this and his strategy he was able to win several
quick victories
Pancho Villa was able to assert control over Chihuahua
• Imposed a revolutionary new order on the state capital
• Employed his soldiers as a civil militia and administrative staff to
restore normal life
o Army was put to work in an electric plant, railways,
telephone system, waterworks and flour mills, once owned
by the wealthy Terrazas family
o Ordered a reduction in meat prices, distributed $, clothing
and other goods to the poor
Established some 50 new schools in the city
o His land reforms were not as radical as Zapata’s which
called for being distributed right away, instead Villa said
they should remain under state control until a complete
victory was won by the revolutionaries
His thought was that revenues generated would
finance the revolutionary struggle
- Intervention by the US
o By the beginning of 1914 Huerta’s revolt seemed inevitable but Wilson’s
succession of Taft refused to recognize Huerta’s regime
Justified this with the logic that the US would not recognize any
government that came to power illegally
Also felt that Huerta’s regime could not provide the stability needed for
American interests in Mexico
Wilson employed an embargo on arms shipments when it was thought that
things were not safe but after assured they were, the embargo was lifted
Wilson also intervened when word got out about German arms being sent
to Mexico in 1914, they were greeted with fire from American ships
• 27 April 1914, an American flag was raised over Veracruz with a
wave of Yankee sentiment pumping through the city
• Wilson hoped to gain some control, instead the action was
denounced and his evacuation demanded
11. A convention was called in which Argentina, Brazil and Chile would help
mediate the dispute between the US and Mexico
• Wilson hoped to ease tensions as well as eliminate Huerta and
establish a new provisional Mexican government that he could
control
o The bait was not taken, and mediation was refused,
informing the US that it would settle its own problems
without interference from any source
The fall of Huerta was imminent
• The northern states were at the hands of Pancho Villa
o The fall of Huerta dashed any hopes of US continuing its
armed intervention, but Wilson delayed the evacuation of
Veracruz as long as possible
Was warned of “fatal consequences”
American troops finally evacuated Veracruz on 23
November 1914
o Fighting among the Victors
A complete victory looked as if it were in sight, fighting arose among the
Constitutionalist camp, between mostly Carranza and Villa as they were
jealous of each other
Each saw things differently when it came to the plight of the peasants and
neither trusted the other
Zapata was another problem, as he was seeing things in his own right,
having waged war against Huerta independently
• A meeting was held in 1914 to settle the conflict with Carranza and
Villa, along with the presence of Zapata
• Carranza refused the terms and would not retreat, and the armies of
both Villa and Zapata would eventually force him out
o 4 December Zapata and Villa held their 1st
meeting and
came to an agreement
• The cities were still controlled by peasant armies and Villa feared
siding with the radicals because that would alienate the US
o Final defeat would mean unity and full recognition from
the US
o By 1916, relation between the US and Mexico deteriorated quickly partially
because the Mexican authorities wanted to regulate the operations of foreign oil
companies
Villa mistakenly thought Carranza (who was now president) had bought
the US recognition by agreeing to plan to convert Mexico into a US
protectorate.
• Villa raided Columbus New Mexico, therefore Wilson sent in
General John Pershing to pursue Villa into Mexico
12. • Carranza denounced the invasion and demanded the withdrawal of
American troops, and prepared to go to war
o The US invasion, they thought it would be easy, proved a
disaster, Wilson ended up liquidating his pursuit of Mexico,
as he realized it would need at least 1 million men
- The Constitution of 1917
o By fall of 1916, Carranza issued a call for the election deputies to frame a new
constitution and prepare the way for his election as president (technically he was
only acting now)
The draft called for radical agrarian reform
• This was not accepted by the majority of the deputies
o the radicals called for a change in peasantry and labor
o they also did not want religious organizations (churches)
controlling schools
• Article 123 was the most important, dealing with rights of labor
o The finished product called for an 8 hour work day
o Abolished the tienda de raya (company store and debt
servitude)
o Right for workers to organize, bargain collectively and
strike
Was the most advanced labor code in the world at
the time
• This became the most progressive
constitution at the time
• 31 January the work was complete and by March a presidential
election was held
o 1 May, Carranza was formally installed as president, the 1st
legally elected since Madero
- Carranza’s presidency
o The remaining years of his presidency made a sharp swing to the right, where he
made it clear he had no intention of enacting the reforms mentioned in the
constitution
A small amount of land was distributed to the villages
Haciendas were returned to their former owners and others were given to
his favorite generals
Corruption existed on a massive scale
• Working class suffered repression, as Carranza no longer need
their help
o Wages were cut by inflation
o Strikers were arrested
o Free education was ignored, there were fewer children in
school than ever before
• He only kept Mexico neutral in WWI
• Continuously battled the Zapatista movement
13. His term was legally over in 1920, but had no intention of relinquishing
power
• He could not run again because the constitution had a rule against
it, but he hand picked his successor
• Against him Obregon was supported by the Labor party
o It was clear that Carranza was going to fix an election,
therefore a small revolt took place, where Carranza fled and
took 5 million pesos with him from the national treasury
In November of 1920, Alvaro Obregon assumed the presidency
• The population had declined since 1910 by 1 million
- Reconstruction: The Rule of the Millionaire Socialists – Obregon and Reform
o Along with Obergon came a group of northern generals and politicians who began
reconstruction politically, economically and socially
The masses had been radicalized by the revolution
o The men in power tried to mask how small the changes they were employing
actually were
Exiles were allowed to return to Mexico
Power was held by a ruling class of wealthy generals
Elections remained farce
The president was a dictator with labor and peasants obedient clienteles of
the presidency
• Some land was distributed to the pueblos to keep at bay peasant
discontent
o Even after the land was received, it was improbable that
they could do anything with it, for the government failed to
provide seeds, utensils and training
Peasants had to rely on lands from loan sharks
o 320 million acres remained in private hands while 3 million
was distributed to the masses
Labor was encouraged to organize as this was important to the bulwark off
his regime
• this was the only labor organization and was sponsored and
protected by the government
- Fast forward to the rule of Cardenas
o The Mexican Revolution resumed under his rule
Land distribution was on a massive scale
Efforts to improve the quality of rural life
Labor was encouraged to replace the old corrupt militant leadership
Closed down illegal gambling houses, most owned by the wealthy
Set an example by slashing his salary in ½
Made himself available to the workers and the Native Americans
The labor movement was revitalized
• Workers struck for higher wages and better conditions
14. • Power of the generals was weakened by a policy of raising wages
and improving the morale of the rank and file as well as
distribution of weapons to the peasants
- Cardenas’s Growing Moderation and the election of 1940
o Education made progress under Cardenas
o He showed concern for the plight of the Indians, as he himself was a Tarascan
Indian
Created the Departmiento se Asuntos Indigenas to serve and protect Indian
interests
o Radical support grew during the last days of Cardenas’s presidency
He was criticized for seeming to Communist
• Caving under pressure he slowed the pace of land distribution and
started to show favor to the entrepreneurial class
o On the eve of the presidential election, Right-Wingers campaigned in favor of
General Juan A. Almazan, a revolutionary who was now a wealthy industrialist
He was defeated by General Manuel Avila Camancho, a man who was
generally conservative – he won with 99% of the vote
• Almazan fled to Texas
Argentina: The Failure of Democracy
For 30 years, Argentina had an explosive economy and by the 1st
decade of the 20th
century, they could boast that they were the largest grain exporter and had a meat export that was
the rival of many. They had a railroad network that rivaled the US and Britain, as well as one of
the most beautiful cultural capitals of the world. It seemed as if democracy was in reach, as the
passage of the Saenz Pena in 1912 provided for universal suffrage and the secret ballot, as well
as the landed oligarchy recognizing the aspirations of other classes.
All of this was an illusion; the next 70 years would be marked with runaway inflation,
military coups, disorder and repression. At the heart of this was the reliance on foreign capital,
which placed the country at the mercy of foreign events and decisions.
- The Export Economy
o Development of Argentina was due to 3 factors
Appearance of a large market in Europe for its products
Inflow of millions of immigrants that were a cheap source of labor
Influx of large amounts of foreign capital which went to construct
railroads, cultivate more land and establish more food processing plants
• As a result, Argentina was vulnerable to fluctuations of the
international market/finance conditions
15. • Argentines generally imported more than they exported, a fact
made worse by the falling price of raw materials and the rise in
manufactured goods
• By 1929, foreigners controlled about 30-40% of the country’s
fixed investments
o While it helped fuel the economy, there was also the
problem of high interest rates and debt, with a substantial
portion of government revenues going to pay debt
• Every sector of Argentina relied on exports
• The rich were growing richer, and the poor were getting poorer
o the greatest treasure was land, but very few owned any
o less than 5% of the population garnered 70% of the income
derived from agriculture
• the government did not want to have to tax the elite to raise funds,
therefore they printed more $, which resulted in inflation
- Argentine Society
o Divided into 3 classes
Upper – gained wealth through capitalizing on the export economy
• Were large landowners, the wealthiest being cattle fatteners who
provided for the domestic as well as the international economy
• Inner circle was composed of roughly 400 families that were allied
through business and social clubs
• Controlling the land meant controlling the politics as well
• The military and church also reflected the views of the elite
Middle
• Arose as the nation became more urban
• Heavily concentrated on bureaucracy professions that depended on
the export economy
• They would eventually attach themselves to the Radical party
• Because many were foreign born, they were eventually
disenfranchised
Lower
• Workers
o Most lived in Buenos Aires and labored in small factories
o Many were employed by the railroads and tramways as
well
o Socialist Party claimed to represent the workers but its
leaders were mostly middle class
• Urban marginal
- The Military
16. o In the 1st
decade the military went professional as well as became a national
institution
Seniority and merit became requirements of promotion, with a school to
train officers in modern warfare
A conscription bill was added as well, expanding the size of the armed
forces
• Because of this, the middle class was replacing the oligarchy in the
ranks of the military
• Established a level of pride and independence
• Demanded better weapons and pay from the government
• By 1916, favored power transfer from oligarchy to Radical Party
- The Radical Era: 1916-1930 – The Rise of the Radical Party
o The 1st
attempt to overthrow the oligarchy in 1905 failed but the Radical Party
gained followers, many from university educated sons of immigrants
o Power of the group rested on 2 pillars
Local organization in urban areas which acted to meet the needs of the
middle class
Leader Hipolito Yrigoyen
• Played the dual role of titular head of the Radical Party
o Great mediator who managed to reconcile the conflicting
interests of the middle class and large land owners
o Managed to project an austere democratic image that made
him the party’s charismatic leader
o The party presented itself as a national party, spanning all classes that Argentine
society had not formally done
o From 1912 to 1916, the Conservatives failed to construct the broad based national
political party they had hoped would raise as a result of the passage of the Saenz
Pena Law
There were regional differences that made the party difficult to unite
o The Socialist Party failed to become a party of national scope
Support came from working class, but the leaders were middle class, and
authority was kept centralized
They also had a tendency to bicker, which led to its split, and could never
really expand their influence past Buenos Aires
- The 1st
Radical Government: Yrigoyen, 1916-1922
o This period was marked between the delicate relationship between the Radicals
and the conservative landowner elite
The elite controlled the military and major agricultural lobbying groups
and had close contacts with the powerful foreign business interests
o Yrigoyen walked a tightrope between the middle class and the oligarchy
He could not push too hard or fast, as the oligarchy would overthrow him
The operating mechanism was conservative, and in exchange the oligarchy
allowed expansion to the bureaucratic positions to the middle class
• Overall the radicals did not have control of the government
17. • They won the presidential election but not congress until 1922
o It was impossible to meet the conflicting demands of the
middle class and the elite, and became worse when the
laborers wanted reform and better pay
o Much of labor agitation was directed towards foreign
companies, making things even more difficult
From 1913 to 1917, Argentina experienced a depression and the prospect
of war dried up investments
By 1917 to 1921, Argentina prospered as a result of an export boom
• Job opportunities were expanded in government but the oligarchy
opposed this
• Congress proposed a modest income tax on exports, but this too
was defeated
Yrigoyen tried to make some improvements to the working class but was
met with defeat because he feared antagonizing the working class
- The Second Radical Government: Alevar, 1922-1928
o Radicals won a second term with Yrigoyen’s hand picked successor winning 48%
of the vote, however, trouble mounted among the party, and eventually ended up
with a split between the middle class and elite supporters
- Yrigoyen’s 2nd
term: 1928-1930
o Won with 57% of the vote but his political situation was greatly weakened
because organization had deteriorated
In some cases, local bosses had become gangsters
o He moved to eliminate opposition and stepped up intervention in the provinces to
assure majority in the Senate
o By 1929, the Depression hit Argentina and the Radical support suffered a blow
Exports dropped by 40%
Foreign investment stopped
Unemployment was widespread
• Any efforts to spark recovery only resulted in inflation
• The government incurred a huge deficit which it tried to mask by
borrowing
o Found itself in the position of competing for increasingly
scarce credit resources with the landed elite who also
needed money
o Government interference with the military undercut the
position that it was a powerful institution
o Yrigoyen was overthrown by the military on 6 September
1930
- The “Infamous Decade,” 1930-1943: The Conservative Restoration
o This coup marked the end of Argentina’s try at democracy and the entrance of the
military into the nation’s politics
The period was marked by harsh repression and corruption and came to be
known as the “infamous decade”
18. o Lieutenant General Jose F. Uriburu who led the overthrow became the head of the
coalition composed of diverse elements
Traditional conservatives
Right-wing nationalist-fascists
Left Progressive Democrats
Independent Socialists
Socialists
• All agreed to the end of Yrigoyen but that was about it
• The loose alliance soon fell apart and the military was divided
o Some wanted a model of the old Italian State
o Others wanted a return to the pre-1916 conditions
o Uriburu conducted a campaign of brutal repression against his opponents
By 1931 he felt that all threats were taken care of and called election in
1931
• The Yrigoyen Radicals won a quick victory and Uriburu annulled
the elections and scrambled to find allies, finding a partner in the
Anti-Personalist Wings of the Radicals
o Collaboration called for an election with running mate but
Uriburu refused to permit ex-President Alvear on the ticket
He took his party with him
- The Peron Era, 1943-1955: Peron’s Rise to power
o During the 1930s the officer corps of the armed forces developed an ardent
nationalism that saw the solution for Argentina’s problems in industrialization and
technical modernization
The underlying cause of this was the desire to create armed forces that
could control the Greater South American Bloc
Industrialization was also necessary to end Argentina’s neo-colonial status
and free it from dependence of foreign markets
Had a pro-German attitude because of the training received from the
German military but also because of the belief that the US and UK
conspired to keep Argentina a rural economic colony
• They had no desire to enter the war on Germany’s side, but instead
to remain neutral
Military wanted to speed up industrialization and technical modernization
even though they feared the social changes that this might unleash, such as
a revolution from the working class
• Military launched an offensive against organized labor, with the
government taking over unions, suppressing the press and jailing
opposition leaders
o All threatened to destroy the industrialization program
The military was saved from Colonel Juan Peron
o Peron was heavily influenced by the German and Italian dictators and quickly
rose in the ranks of the Argentine Army
Eventually he became the secretary of labor and welfare
19. • His genius lay in the recognition of the organized and unorganized
working class as well as the need to broaden the social base of the
nationalist revolution
• Became the patron of the urban proletariat
o Workers were encouraged to organize and bargain in
negotiations,
As a result, wages rose and national income grew
This helped increase purchasing power and the
process of industrialization
o Created a state system of pension and health benefits with employers contributing
to pension, insurance and other benefits, until Peron’s fall
However, unions lost their independence and became part of the state
controlled apparatus in Peron’s hands
Peron was strengthening his position within the military, eventually
forcing the president to resign and being replaced by General Farrell
• Some were discontented with the pro-labor attitude and called for
the end of a military rule, especially after the end of the war in ‘45
• Peron’s foes staged a coup and he was imprisoned
o This quickly fell apart as they were not organized and
Peron’s followers quickly mobilized
o Workers took over the city with no opposition from the
armed forces and Peron was released
He retired from the army and government posts and
campaigned for the 1946 elections
He cast himself as the role of a democrat ready to
abide by the result of a free election
Created a labor party to mobilize the working class
whose national elements were the national industrial
bourgeoisie and the army
- Postwar Economics
o The boom allowed Peron to keep his coalition together
There was a surplus that allowed for exports to pay off debts, therefore
made funds available for industrialization
Between 1945 and 1948, real wages for industrial workers went up 20%
and personal consumption rose
Industrialists were able to keep profits and benefited from increase
domestic consumption
Won support of the middle class through government patronage
Kept the military happy by committing to industrialization and national
self sufficiency, and gave them generous salaries and the latest equipment
for modern warfare
o One of greatest assets was his beautiful wife, Eva Peron, “Evita” who acted as a
liaison for the working class
20. Headed huge charitable network that dispensed tremendous $ and
patronage
When she died at the age of 32, Juan moved to have her canonized, and
his popularity suffered as well after her death
• She had strongly advocated universal suffrage which was granted
in 1947
o As a result, Juan had quite a female following
o After 1948, the economic picture changed and Argentina entered a period of
recession
It was seen that Argentina would face long term difficulties
• Production fell as did the per capita income and real wages
o It was said that the amount of Argentina’s gains during the war were exaggerated
During the war, Argentina had to extend credit to enable Europe to buy its
products, which meant in reality there was not as much capital for the
government to spend
He was criticized for not putting enough $ into public works which were
greatly needed
• Many of Peron’s actions were meant to eliminate undue foreign
influence in Argentina’s economy, such as nationalizing the
Central Bank, which was formerly foreign controlled
o In reality, Peron solved none of Argentina’s long term economic problems
Transportation was inadequate and obsolete
Scarce electric power
Not enough fuel production
Industry remained limited
Foreign industries, such as meatpacking and sugar refining were not
nationalized
- Peron’s downfall
o After his re-election, he formulated a new plan that would reverse his old
Tried to expand agricultural production by paying higher prices to farmers
for their produce and buying capital equipment for this sector
Froze wages, hoping it would slow domestic consumption
• Workers did not suffer but industrialists wanted deregulation so
they could push down wages
He actively solicited foreign investment allowing for the US to drill for oil
in Argentina
Aviation was converted to auto production
More $ were printed as well
o By 1954, there was some stabilization of the economy, but he alienated his
coalition of workers
o He began attacking the church and took over newspapers, as well as intimidating
political opposition
He alienated the industrialists because of refusal to deregulate, therefore
he was left with little support
21. His wife’s death meant the end of his ambassador to the workers
o He was not overthrown by the military because for a decade he had been skillfully
balancing, dividing and bribing them
Most senior officers owed him their rank and the army provided for
industrial means, therefore was a great way to strike it rich
• For the army though, the final straw was the concession to
foreigners drilling for oil
o In 1955, he fled into exile
Brazil
- Economic Impact of WWI
o Exports from Brazil declined and the government came to the rescue of the
planters with a price maintenance program
o Soon the Allies needed sugar, beans and other staples, which led to a boom
o Brazil was trading with the Allies and in turn, Germany torpedoed a number of
Brazilian merchant ships
Brazil declared war on Germany
Major contribution to Allied war effort continued to be the supply of
goods but they also helped England in patrolling the south Atlantic
o War weakened British capitalism there and led America to challenge the British
financial and commercial pre-eminence in Brazil
o Brazil was able to double its production during the war as well as the number of
enterprises
In turn, the working classes and the bourgeoisie was strengthened
• Strikes became more frequent and gripped the nation in 1917
• Demanded a wage increase of 30%, and 8 hr day, improved
working conditions and release of political prisoners
o The city of San Paulo was brought to a standstill
Owners granted higher wages but overall most
workers did not permanently improve
- Political Unrest
o Transforming society fell to the rapidly growing bourgeoisie, especially the
middle class which began to voice unrest with the corrupt rural oligarchies
o By the early 1920s, there arose a many faceted movement for the renovation of
Brazilian culture and society
There was no common program though and there was little actually done
o 3 unrelated events of 1922 show the diversity of the unrest at the time
February – intellectuals of San Paulo want to commemorate Brazilian
independence, and wanted to stress the need to develop indigenous
Brazilian culture
March – the Brazilian Communist Party was found
July – the junior officers rose to prevent the president from taking office
• Government forces crushed the revolt but insurgents left their mark
when they refused to surrender and fought till death
22. o This signaled power of the bourgeoisie from the oligarchy,
but since the political system was closed, there was a need
for an armed struggle
o President Bernardes (1922-1926) – took office during a time of growing political
turmoil
Industry was suffering from overproduction and falling prices
He added to his unpopularity by armed intervention, severe repression and
punishing strikers
• In 1924, there was another military revolt led by junior officers
who called for a curb on executive power but made no reference to
economic or social reform
o The working class supported this but it was rejected by the
elite
o Rebels held the city for 22 days before evacuating under
pressure of troops
The revolt spread to other states
Though Bernardes had survived his 2nd
military crisis, he was continually
plagued by economic problems, with coffee being paramount
• He turned over some of the centralization of coffee production to
the state, which took control of exporting
• The system seemed to work, but now they were in rival with
Columbia, another chief exporter of coffee
- Vargas and the Bourgeois Revolution: 1930-1954
o The liberal revolution of 1930 represented a victory for the bourgeoisie who
favored industrialization and modernization of Brazil’s political, economic and
social institutions
Victory was gained with allies whose interests had to be taken into
account – the entire group was led by Getulio Vargas
• He feared radical social change and favored the elite
• The sidelines were the working class and though they were
necessary for industrialization, they threatened the existence of
Brazilian capitalism
o Vargas would attempt to take control of foreign capital
interests after Brazil emerged from the great Depression
- Vargas’s economic and political measures
o Had to find a way out of the economic crisis
Restricted planting
Burned excess coffee
Diversified agriculture with production of cotton, which helped their
exports until 1940 with the outbreak of the war
Key was in import substitution through industrialization and though the
Great Depression did not create Brazilian industrialization, it did create
the conditions needed for it
23. o Because Brazil was no longer importing goods due to fall in exports, they had to
find a way to produce what they normally would import
o Industry was encouraged in several ways
Exchange controls
Import quotas
Tax incentives
Lowered duties on import machinery
Long term loans with low interests
• As a result, industrial production doubled between 1931 and 1936
o While the US was still in a depression in 1933, Brazil’s
national income was rising, showing it no longer needed to
rely on external influences but internal ones
o Meanwhile, Vargas was pursuing a left wing political course
Tenants encouraged Vargas to remain in power indefinitely
The Paulistas were calling for reform and election
• Vargas thought he was compromising by replacing an
oligarchichal leader with a civilian and setting a date for a
constituent assembly
• This angered the Paulistas who launched a counterrevolutionary
revolt
o Lack of support caused this to fall apart quickly
o Vargas did not seek to punish his opponents, instead he
made new concessions
Pardoned 50% of bank debts
o February 1932, Vargas promulgated a secret ballot, and lowered the voting age to
18, as well as extended the right to vote to working women
Vote was still denied to illiterates, who were the majority of the
population
• President would now serve 4 years but could not run a 2nd
term
• The Chamber of Deputies would have 50 members elected from
different classes as well as 250 members from different areas of
populations
• Government was now responsible for economic development
• Workers would be organized into unions under strict government
control
o Minimum wages were fixed
o Right to strike
o 8 hour work days
o Social security that provided for pensions
In exchange, labor unions became agencies
controlled by the Ministry of Labor
Workers had no voice in drafting labor legislation
Police repressed strikes that were not approved by
the government
24. - Vargas as a dictator
o Since the left was repressed, this led the way for Vargas to become dictator
o He could not succeed himself in the 1938 elections, so he allowed candidates to
come and then carefully staged a coup to interfere with the states
By December 2nd
of that year, all political parties were abolished
• The new regime copied both constitutional forms of fascist
regimes as well as repressive tactics such censorship
o Soon prisons were filled with workers, teachers and
military officers and other suspected of subversion
Brazil became friendly with Germany and Italy, and many feared it was
moving into the fascist orbit
• Between 1933 and 1938, Germany became the chief market for
Brazilian cotton
o Vargas was not looking to shake hands with the Fascists, he
was a practical man who wanted an outlet for Brazilian
goods along with a stronger bargaining power with the US
o Though repressive, it continued with the struggle against
neo-colonialism and economic independence
o Government rejected laissez-faire and announced a 5 year
plan that included expansion of heavy industry and creating
new sources of hydroelectric power
o Within 20 years Brazil had tripled its plants and workers in
them, with some serving the domestic market exclusively
o World War II helped in that mass amounts of food was exported to support
troops, but other countries could not pay, therefore it was Brazil who was now
extending the credit
o Vargas allowed the US to lease their Air Bases, even before it entered the war
Brazil entered the war in 1942 when German submarines sunk a number
of Brazilian merchantmen
Ironically, Brazil, a fascist regime, would be fighting fascism! As the
defeat of the Axis drew near, the country was calling for a change in
political climate
- A Military Coup
o Vargas announced he would not run for reelection and moved to the left of
economic policy
He organized expropriation of any organization that was harmful to
national interest
This was aimed to keep the cost of living down but inspired alarm among
foreign and domestic circles
o In October of 1945, General Goes Monteiro staged a coup and forced Vargas to
resign, entrusting the government to chief justice Jose Linhares
o The coup insured that Brazil would return to a Parliamentary system, and the
newly elected president framed a new constitution that retained the federal and
executive system created by Vargas
25. though Vargas had relations with the Soviet Union for practical reasons,
the newly elected Dutra severed those ties
Dutra pursued the laissez faire policy, which favored the old style of elitist
ownership
The reserved built during the war by Vargas were distributed on consumer
goods and luxury items
Foreign capital flowed into Brazil, thereby hurting the hopes of economic
independence
- Vargas’s Return to power
o Vargas assured neutrality of the armed forces and ran again for president
Concentrated on the need to accelerate industrialization
Vargas easily defeated his 2 opponents because the country was discontent
with the former president
Eisenhower administration decided that the Vargas government had not
created proper climate for private investments and terminated the joint
US-Brazilian Economic Commission
Vargas sought to appease by leaving the distribution of oil in private hands
but it took 2 years before the bill was passed in order to allow that
His labor policy as well was faced with problems and therefore drew the
lines even more between Vargas and his enemies
• Vargas was bitterly attacked by the press and radio
• People moved to assassinate Vargas’s enemy, Lacerda but failed,
and the investigation led to a revelation of a large scaled corruption
of the presidential staff
• Many demanded Vargas’s resignation, and instead he committed
suicide
CUBA
Cuba had long been a hot spot and still is today, but let’s pick up right after the Spanish
American War
- The Politics of Corruption: 1902-1953 – Instability and Intervention – 1902-1924
o The Spanish-American War left Cuba under the protection of the US which would
ultimately stunt its growth so to speak
o At the end of 1901, Tomas Estrada Palma was elected the 1st
president of Cuba,
an exile who began his presidency with considerable popularity
However, his presidency would produce only scandals
o The 1904 elections to Congress were fraudulent and marked by some violence
o In 1905 he won reelection but only because the opposition boycotted the election
In 1906, there was a revolt against Palma, and he had to call in the US
army for intervention because he was unable to quell the rebellion
• Taft sent in the army and appointed Charles Magoon to reside over
the provisional government
o His solution was to divide patronage among contending
Cuban groups
26. o Cuba’s corruption now had the blessing to the US
• The provisional government attempted to create a standing army to
prevent the overthrow of another government
o Cuba’s resistance to American occupation virtually
disappeared
o 1908 – 2 parties contested for the election
Conservative – made up of former followers of Estrada
Liberal Party – who had rebelled in 1906
• No ideological differences, only who would enjoy the spoils
Liberals won with Jose Miguel Gomez and the US withdrew on 1 April
1909
• A few highlights of his presidency were reinstating the lottery and
legalizing cockfighting
o 1912 and 1916 saw the election of Conservative General Mario Menocal who was
just as corrupt as the rest, and managed to accumulate a fortune of 40$ million
while in office
There was another revolt in 1917 to protest his reelection but that was put
down because the US did not want to disrupt sugar production
• US troops occupied and did not leave until 1923
o Overall, Cuba’s corrupt politics would last until 1924, with one leader after
another, exploiting the government system
- Mochado – 1925-1933
o Mochado would come to office in 1925, and had similar economic interests as the
US
Embarked on a program of public works
Attempted to product the small and medium sugar producers against price
declines
Encouraged diversified agriculture
Tried to institute the merit system for public offices
Established new commercial schools as well
Even attempted to reform the prostitutes of Havana
• There were signs of tyranny though
o Political assassinations were alarmingly high
o Strikes were broken by police shootings
o Routinely opposition was disposed of to the sharks in the
Havana Harbor
o He won re-election in 1928 (if you could call it that)
Maintained an iron grip on Cuba until the depression hit in 1930
Students at Havana University would stage a demonstration that led to
hundreds of teachers being fired almost closing the University
o By 1933 the US government had become concerned by the spreading violence
which threatened US economic interests
FDR sent Sumner Welles to meditate, but Mochado would not
compromise
27. After a bus driver’s strike ended in massive bloodshed, Mochado fled to
exile 12 August 1933
- The Revolution of 1933
o For 3 weeks an interim government struggled to end the violence
o 4 September, army sergeants, one being Fulgencio Batista, overthrew the govt.
and students quickly allied with them to form the junta
Organized the government backing into 2 components
• Noncommissioned officers – interested in defending their newly
dominant position
• Student Directory – wanted genuine reforms but had no idea how
to achieve them
o Many decrees were issued
8 hr work day
Labor department
End to importation of cheap labor from other islands of the Caribbean
More access for lower income families to universities
Redistribution of land to peasants
Women vote
• The left was upset saying that the reforms were not enough and the
right said it was too much
• The government was not recognized by the US because of refusal
of payment of loans
• When reporting to FDR, deliberate misinterpretations were relayed
and Welles aligned himself with Batista
o Eventually Welles was recalled but he had undermined the
position of the provisional government
- The Era of Batista: 1933-1944
o The island was ruled by puppet presidents from 1934-1940 and an elected from
1940-1944
Batista was popular among the masses and mildly redistributed lands
By 1937 he openly supported Communism
- The Autentico Interlude, 1944-1952
o At the end of 1939 and into 1940, Batista allowed the election of an assembly and
the drafting of a constitution
Produced was a liberal document for the protection of labor and right of
property
o He won the election in 1940 but allowed honest elections to take place in 1944
because he believed that a president should not succeed himself
Garu won and the period was marked by violence and corruption
- The Return of Batista – 1952-1959
o Batista ruled Cuba for the 2nd
time, until he was overthrown by Castro in 1959
The 2nd
time around was more difficult than the 1st
, as was seen elsewhere
in Latin America
28. Several groups opposed Batista, including those who plotted with Castro
from their havens in Florida
• Part of Cuba’s weakness was due to its reliance of a single crop,
sugar
• Cuba’s economy and often political situation would rest on its
reliance on sugar, and depending on the world demand, Cuba’s
economy lied in the hands of the world
During the 1920s, the sugar industry entered a period of stagnation which
lasted until Castro in 1959, proving that Cuba was vulnerable to political
conditions of the US
The Depression saw a sharp drop in the price of sugar, less and 1 cent per
pound in 1933, with many mills closing and people out of work
• 1937, there was a meeting in London to decide where and how to
divvy sugar production, it was decided that Cuba would get 29% of
the US business
World War II would bring a boom as well as the latter 40s as part of the
European Recovery Act, however, by the time of the Korean War, the
price would fall again because other places, like the Philippines, were
producing sugar and the market flooded
Cuba’s stagnant economy would lay the foundation for the Revolution