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Chapter Photo. Chapter Transparency. The United States prevented Communist Takeovers in Guatemala in 1954, Bolivia in 1956, and Chile in 1973. Section 1 DYK. I. Economic and Political Developments (pages 650–653).

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section 1 dyk
The United States prevented Communist Takeovers in Guatemala in 1954, Bolivia in 1956, and Chile in 1973.Section 1 DYK
section 1 dln 1
I. Economic and Political Developments (pages 650–653)
  • A. Although Latin American economies had become more self-sufficient during the Great Depression, they remained fragile. They were too reliant on the world prices for raw goods, and were especially dependent on American business investment.
Section 1 DLN-1
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I. Economic and Political Developments (pages 650–653)
  • B. American business investment in Latin America led to much U.S. intervention into Latin American political and social affairs. For example, the United Fruit Company, based in Boston, acted as a “state within a state” in Guatemala. When the Guatemalan president Jacobo Arbenz seized some of United Fruit’s property, the company convinced the U.S. government to help conservative forces in Guatemala overthrow Arbenz.
Section 1 DLN-2
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I. Economic and Political Developments (pages 650–653)
  • C. In 1948, the Organization of American States was formed. The OAS emphasized the need for Latin American independence.

D. The OAS did not lead to the end of U.S. intervention in Latin America. This was mainly due to the fear of communism during the Cold War era. The U.S. kept a close watch on radical movements in Latin America and provided massive amounts of military aid to anti-communist regimes friendly to U.S. business interests, even if it meant backing dictators.

Section 1 DLN-3
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I. Economic and Political Developments (pages 650–653)
  • E. Radical social and political movements appealed to many in Latin America because of the weak economies, which led to unstable governments. Dictators were able to take power during times of worker unrest because they had the support of the military and conservative elites.
Section 1 DLN-5
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I. Economic and Political Developments (pages 650–653)
  • F. Dictatorial regimes often encouraged multinational corporationsto invest in Latin America, increasing their nations dependence on industrialized nations.

G. In the 1970s, Latin American countries began borrowing money from other nations. As the debt grew, economies crumbled, and soon many nations could not even pay the interest on their loans. This drove them to international organizations like the World Bank, who would loan the money only if certain reforms were made.

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I. Economic and Political Developments (pages 650–653)
  • H. Recurring economic crisis led to the demand for democracy because some military leaders did not want to deal with the debt problem, and because people recognized that a dictator could not create a strong state without popular support. The new democracies face tough challenges with not only the economies, but also with the strong drug trade in Latin America.
Section 1 DLN-7
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II. Latin American Society (pages 653–654)
  • A. Rapid population growth caused by a high birthrate exacerbated Latin America’s economic problems. In 1950, the Latin American population was roughly 165 million. By the mid-1980s, it had grown to 400 million.

B. By 2000, 50 cities in Latin America and the Caribbean had more than a million people, many of whom are recent arrivals who live in slums or shantytowns.

Section 1 DLN-10
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II. Latin American Society (pages 653–654)
  • C. Many Latin American cities are huge. Mexico City, the world’s largest, has more than 18 million inhabitants (as compared to 8 million in New York City). Megacitiessuch as Mexico City and Rio de Janeiro have grown so fast that housing, water supplies, and schools cannot keep up. As a result, many residents live in favelas, or squatter settlements lacking in basic infrastructure.

D. Latin American societies are marked by an enormous gap between rich and poor.

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III. Latin American Culture (pages 654–655)
  • A. Latin American writers and artists have been granted a high public status because they can express the hopes of the people and their criticisms of government.
Section 1 DLN-14
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III. Latin American Culture (pages 654–655)
  • B. In literature, Latin Americans developed magic realism, a merging of realistic events with dreamlike or fantastic backgrounds. The novel One Hundred Years of Solitude by Gabriel García Márquezis one of the foremost examples of a work written in this style. In 1982, Márquez was awarded the Nobel Prize for literature.

Nobel Prize-winning author Gabriel García Márquez

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III. Latin American Culture (pages 654–655)
  • C. In art, abstract forms dominated. In architecture, Bauhaus and Modernist styles were seen. Brasília, Brazil, designed mostly by Brazilian architect Oscar Neimeyer, reflects this modern aesthetic.
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I. The Mexican Way (pages 659–670)
  • A. Mexico differs from many other Latin American countries in that it has a relatively stable democratic government and is more industrialized. Yet, they are too dependent on foreign loans. Also, most Mexicans are poor, leading to large amounts of legal and illegal immigration to the United States.
Section 2 DLN-1
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I. The Mexican Way (pages 659–670)
  • B. For most of the twentieth century, the official political party in Mexico was the Institutional Revolutionary Party, or PRI. This was the party of the Mexican Revolution of 1911. By the 1960s, students began to challenge the PRI’s monopoly, leading to reforms including the formation of new political parties. In 2000, Vicente Fox defeated the PRI candidate in the presidential election. So far, Fox has been unable to make the changes he promised, but he has initiated talks with President Bush concerning immigration.
Section 2 DLN-2
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II. The Cuban Revolution (pages 660–661)
  • A. In the 1950s, an opposition movement arose in Cuba. Led by Fidel Castro, its aim was to overthrow dictator Fulgencio Batista. Castro’s revolutionaries gained control of Havana in 1959. Many Cubans who disagreed with Castro fled to the United States.
Section 2 DLN-4
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II. The Cuban Revolution (pages 660–661)
  • B. Relations between the United States and Cuba quickly deteriorated as Castro began to receive aid from the Soviet Union and arms from Eastern Europe. In October 1960, the United States declared a trade embargo prohibiting trade with Cuba. In January 1961 the United States broke diplomatic relations with Cuba.
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II. The Cuban Revolution (pages 660–661)
  • C. In April 1961, U.S. president John F. Kennedy supported an attempt to overthrow Castro’s government. The attempt failed. The Soviets then placed missiles in Cuba, leading to the Cuban missile crisis.

D. The Cuban economy relied on Soviet aid and the purchase of Cuban sugar by Soviet bloc countries. When the Soviet Union collapsed, Cuba lost its support. Cuba’s economy has continued to decline.

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III. Upheaval in Central America (pages 661–662)
  • A. The economies of Central American countries rely on the export of bananas, coffee, and cotton. Prices for these goods have varied over time, causing economic crises.

B. The gap between the rich and the poor in Central America causes instability.

C. The fear of the spread of communism in the region caused the United States to support repressive regimes.

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III. Upheaval in Central America (pages 661–662)
  • D. In the late 1970s and 1980s, El Salvador had a bitter civil war. During Ronald Reagan’s presidency, the United States gave military aid to the Salvadoran army to defeat the Marxist-led guerrillas. Finally, in 1992, a peace settlement ended the war.
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III. Upheaval in Central America (pages 661–662)
  • E. In 1937, the Somoza family gained and kept control of Nicaragua until 1979. The United States supported this repressive regime. In 1979, the United States refused to support the regime any longer. Marxist guerrilla forces, known as Sandinistas, gained control of Nicaragua. The contras, a group opposed to the Sandinistas, tried to overthrow the government. The Reagan and Bush administrations supported the contras. In 1990, the Sandinistas agreed to free elections.
Section 2 DLN-10
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III. Upheaval in Central America (pages 661–662)
  • F. In 1903, the United States helped Panama gain independence from Colombia. In return, the United States gained control of the Panama Canal and great influence over the government and economy of Panama. After 1968, military leaders controlled power in Panama. In 1989, the United States sent troops to Panama to arrest its military leader, Manuel Noriega, who was later sent to prison in the United States for drug trafficking. In 1999, the Panama Canal was turned over to Panama as outlined in a 1977 treaty.
Section 2 DLN-11
section 3 dyk
Brazil is the largest country in South America in area and in population. About three-fourths of Brazil’s population lives in urban areas. Brasília, Brazil’s capital, is an example of large-scale city planning. Brazilians wanted their capital to be located inland to help settle the country’s undeveloped interior. Construction of Brasília began in 1956. In 1960, Brazil’s capital moved from the coastal city of Rio de Janeiro to Brasília.Section 3 DYK
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I. Brazil, the Colossus of Latin America (page 664)
  • A. After World War II, Brazil’s democratically elected governments were unable to solve the country’s severe economic problems. In 1964, the military seized control of Brazil. The military reduced government interference in the economy and stressed free market forces. Brazil’s economy grew dramatically.
Section 3 DLN-1
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I. Brazil, the Colossus of Latin America (page 664)
  • B. The gap between the rich and the poor of Brazil widened. The inflation rate grew to 100 percent a year. The military regime was replaced by a return to democracy in 1985. A massive foreign debt, severe inflation, and a lack of social unity faced the new democratic government.

C. In the 1990s, a series of democratically elected presidents led to some stability in Brazil’s economy.

Section 3 DLN-2
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II. Argentina and Chile (pages 664–666)
  • A. For years, Argentina was ruled by a powerful oligarchy. In 1943 a group of military officers overthrew the oligarchy. Juan Perón used his position as labor secretary in the military government to win over the working class. He encouraged them to join labor unions, and he increased job benefits.
Section 3 DLN-4
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II. Argentina and Chile (pages 664–666)
  • B. Juan Perón was elected president of Argentina in 1946. To please his main supporters—labor and the working middle class—Perón increased industrialization. He worked to rid Argentina of foreign investors. His regime was authoritarian.

C. Perón died in 1974. A new military regime took power in 1976. To divert people’s attention from economic problems, the regime invaded the Falkland Islands but was defeated by Great Britain.

Section 3 DLN-5
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II. Argentina and Chile (pages 664–666)
  • D. In 1983, Raúl Alfonsín was elected president of Argentina and worked to restore democratic practices. In 1989, Carlos Saúl Menem won the presidential election. The peaceful transfer of power gave rise to hope for democracy in Argentina.

E. In 1970, Marxist Salvador Allende was elected president of Chile. He increased the wages of industrial workers and nationalized the largest domestic-owned corporations.

Section 3 DLN-6
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II. Argentina and Chile (pages 664–666)
  • F. Nationalization of the copper industry angered American owners of the copper companies and the American government.

G. In 1973, fearful of Allende’s growing support, the Chilean army led by General Augusto Pinochet, overthrew Allende’s government. The military set up a dictatorship with Pinochet as its leader. Pinochet’s government was one of the most brutal in Chile’s history.

H. In 1989, free elections led to the defeat of Pinochet and to a more democratic system.

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III. Colombia and Peru (pages 666–667)
  • A. The history of Peru’s government is one of instability. The economy has a history of extreme ups and downs.

B. In 1968, General Juan Velasco Alvarado took over Peru’s government. He seized about 75 percent of the nation’s large landed estates and put ownership of the land into the hands of peasant cooperatives—farm organizations owned by and operated for the peasants’ benefits.

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III. Colombia and Peru (pages 666–667)
  • C. In 1975, Peruvian military leaders removed Alvarado from power. In 1980, the military returned Peru to civilian rule. The new government had problems with the Shining Path, a group of radical guerrillas with ties to Communist China who killed missionaries, mayors, priests, and peasants. They wanted to rid Peru of all authority and create a classless society.
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III. Colombia and Peru (pages 666–667)
  • D. In June 2001, Alejandro Toledo became Peru’s first freely elected president of Native American descent.

E. A conservative elite led by the owners of coffee plantations has dominated Colombia’s democratic political system.

F. After World War II, Marxist guerrilla groups began to organize Colombian peasants. The government killed more than two hundred thousand peasants by the mid-1960s. Violence continued through the 1980s and 1990s.

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III. Colombia and Peru (pages 666–667)
  • G. Poor peasants turned to coca leaves, used to make cocaine, as a cash crop. The drug trade increased under powerful cartels. The United States and Colombian governments have waged an aggressive war on drugs.

H. High unemployment continues to stifle economic growth. In 2002, Alvaro Uribe won a landslide presidential victory and has taken a hard line against guerrilla rebels.

Section 3 DLN-12
chapter summary
Chapter Summary
  • Several Latin American countries have moved from conflict to cooperation.
Chapter Summary
section focus 1
a slum area with high-rise apartments or hotels in the background

Answers will vary. It may be suggested that they are planning to build a shanty or hut with them.

There are extremes of wealth and poverty.

Section Focus 1
section focus 2
they disagreed with Castro

it drove them closer

it was heavily dependent on aid from the Soviet Union

Section Focus 2
section focus 3
It is the inauguration of Brazil’s president.

Brazil will be transformed into a sovereign, dignified nation.

The president refers to treating all citizens with justice and compassion.

Section Focus 3