Nationalist governments took over during the economic uncertainty of the Great Depression. These governments in Latin America shared many characteristics. They achieved power with the help of the middle class and working class. Many opposed the established oligarchies that influenced politics traditionally. They were authoritarian in nature.
They also wanted to pull away from economic dependency on the US and Europe. Decline in exports during the Great Depression forced Latin American countries to introduce import substitution industrialization where they tried to eliminate the dependence on foreign markets by manufacturing those products at home.
They also wanted to pull away from economic dependency on the US and Europe. Decline in exports during the Great Depression forced Latin American countries to introduce import substitution industrialization where they tried to eliminate the dependence on foreign markets by manufacturing those products at home.
Mexico
Mexico was not an authoritarian state like Brazil, Germany and the USSR but it was not truly democratic either. At the end of the Mexican Revolution (1911-1921) a party known as the Institutional Revolutionary Party (PRI) took over. Every six years party bosses would chose the party's presidential candidate who then elected in an election. Due to their corrupt practices, the PRI held uninterrupted power in the country for 71 years, from 1929 to 2000.
During PRI rule there was increased government intervention as a response to the economic uncertainty of the Great Depression. Latin American countries was economically dependent on the Global North. The government intervention began with Lazaro Cardenas from 1934 to 1940. Cardenas redistributed 44 million acres of land to landless peasants. After a worker's strike for better wages at foreign owned oil companies, Lazaro Cardenas seized control of the oil fields and the property of the oil companies. He then nationalized the oil industry in Mexico creating PEMEX. Eventually, Mexico did pay the companies for their lost property.
Brazil
In November 15 1889, the Brazilian army overthrew the emperor and set up a republic. The republic was controlled by a wealthy coffee growing landed elite. By 1900 three fourths of the world's coffee was grown in Brazil. The Great Depression destroyed the coffee industry. By 1929 many grew unhappy with the republic. In 1930, a military coup placed Getulio Vargas in power. By 1937, he became dictator under the pretext of a potential communist insurrection, beginning the eight-year long Estado Novo. Novo dictatorship. He banned political parties, used censorship and civil rights were restricted.
Getulio Vargas began to industrialize Brazil. Vargas established Brazil's steel and oil industries. Although Vargas’s government can best be described as right-leaning populist and it had gained power through a military coup, Vargas established constitutional provisions that were directly influenced by a socialist point-of-view. For example, he included laws that protected worker's rights in the Brazilian Constitution. He established an eight hour work day and a minimum wage. He made unions legal, established paid vacations, provided medical assistance to workers, and made child labor illegal, By 1945, Brazil was Latin America's main industrial power.
Many of his reforms were inefficient. The economic regulations Vargas imposed, however, were still being avoided by many as late as 1941. While it was impossible for the minimum wage laws to be ignored by large businesses or in large towns, the minimum rural salary of 1943 was, in many cases, simply not followed by employers. In fact, many social policies never extended to rural areas. Few workers actually joined unions and his state run social security system was inefficient. In 1945, the army forced Vargas to resign.
Getulio Vargas began to industrialize Brazil. Vargas established Brazil's steel and oil industries. Although Vargas’s government can best be described as right-leaning populist and it had gained power through a military coup, Vargas established constitutional provisions that were directly influenced by a socialist point-of-view. For example, he included laws that protected worker's rights in the Brazilian Constitution. He established an eight hour work day and a minimum wage. He made unions legal, established paid vacations, provided medical assistance to workers, and made child labor illegal, By 1945, Brazil was Latin America's main industrial power.
Many of his reforms were inefficient. The economic regulations Vargas imposed, however, were still being avoided by many as late as 1941. While it was impossible for the minimum wage laws to be ignored by large businesses or in large towns, the minimum rural salary of 1943 was, in many cases, simply not followed by employers. In fact, many social policies never extended to rural areas. Few workers actually joined unions and his state run social security system was inefficient. In 1945, the army forced Vargas to resign.