Objective: Explain how various economic factors contributed to the development of the global economy.
Learning Goals:
I can explain the growth of economic imperialism used by European & U.S. states and businesses in Asia and Latin America.
I can describe the economic advantage of merchants and companies in the U.S. and Europe as they exploited commodities from less imperialized countries/colonies.
I can explain the growth of economic imperialism used by European & U.S. states and businesses in Asia and Latin America.
I can describe the economic advantage of merchants and companies in the U.S. and Europe as they exploited commodities from less imperialized countries/colonies.
Reading Questions:
- As Latin America began to focus on exporting raw materials to industrialized countries, who was the main beneficiary in Latin America?
- What were the effects on workers, and the economy of focusing on only exporting cash crops?
- What were the political consequences of Economic imperialism in Latin America?
- Explain how the Panama Canal created an advantage for the United States and a disadvantage for Latin America?
- Explain the economic and political effects of Imperialism on Hawaii.
Expansion Abroad
Two trends were emerging in the middle to late 18th Century. The first was a stabilizing of states like Mexico, Peru, Argentina and Brazil that had recently come out of their independence movements. The second trend was the rise of the United States as a world power. Both of those trends would coincide to create a new world order of economic dependence on Europe and the US by Oceana and Latin America leading to riches for a few US investors and a few Latin American Elite. However, poverty was the result for the majority of the populations in Pacific Islands and Latin America.
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Exporting raw materials
Latin American Countries began to focus on exporting raw materials for industrialized nations. The biggest beneficiaries were rich landowning elite. Mexico continued to produce silver. Chile provided copper for the growing electricity grid and Guano for fertilizer. Beef was produced in Argentina. Cuba provided sugar while Guatemala provided bananas. All the mean while all Latin American Countries imported manufactured goods. Many focused on single cash crop exports. That was done at the expense of raising food for themselves. This type of land use is called monoculture because you don't have agricultural diversity. Latin American economies became dependent on American and European consumers.
Latin American Countries began to focus on exporting raw materials for industrialized nations. The biggest beneficiaries were rich landowning elite. Mexico continued to produce silver. Chile provided copper for the growing electricity grid and Guano for fertilizer. Beef was produced in Argentina. Cuba provided sugar while Guatemala provided bananas. All the mean while all Latin American Countries imported manufactured goods. Many focused on single cash crop exports. That was done at the expense of raising food for themselves. This type of land use is called monoculture because you don't have agricultural diversity. Latin American economies became dependent on American and European consumers.
Latin America - export boom
Foreign Investments
Along with the interest in raw materials came foreign investments. Europeans invested 10 billion in Latin America from 1850 to 1930. The British built the Puerto Madera to help them export and import in Argentina. Both the British and Americans owned significant amounts of the oil. By 1922 Huasteca petroleum owned or leased 1,223,780 acres, and El Aguila 1,890,286 acres of land respectively. That land had been communal or public land that president Porfirio Diaz allowed foreigners to buy at a fraction of the price it was worth.
By 1940, the American United Fruit Company owned 42% of Guatemala's land. Even though there was no direct US military intervention, the economic intervention created by the vast banana empire of the United Fruit Company was still able to completely consume the population of a country to the point that the national military was forced to commit one of the bloodiest massacres in the country's history. On November 12, 1928, thousands of workers on United Fruit plantations began a strike near the city of Santa Marta, Colombia. They protested for shorter work weeks, better living conditions, compensation for work accidents, etc.. Local police was dispatched to deal with the protestors, resulting in a massacre of up to 3000 dead (Caro).
Many of these foreign investors were not only taking advantage of land deals but also looking for cheap labor. Few labor regulations allowed foreign companies to exploit the workers.
Along with the interest in raw materials came foreign investments. Europeans invested 10 billion in Latin America from 1850 to 1930. The British built the Puerto Madera to help them export and import in Argentina. Both the British and Americans owned significant amounts of the oil. By 1922 Huasteca petroleum owned or leased 1,223,780 acres, and El Aguila 1,890,286 acres of land respectively. That land had been communal or public land that president Porfirio Diaz allowed foreigners to buy at a fraction of the price it was worth.
By 1940, the American United Fruit Company owned 42% of Guatemala's land. Even though there was no direct US military intervention, the economic intervention created by the vast banana empire of the United Fruit Company was still able to completely consume the population of a country to the point that the national military was forced to commit one of the bloodiest massacres in the country's history. On November 12, 1928, thousands of workers on United Fruit plantations began a strike near the city of Santa Marta, Colombia. They protested for shorter work weeks, better living conditions, compensation for work accidents, etc.. Local police was dispatched to deal with the protestors, resulting in a massacre of up to 3000 dead (Caro).
Many of these foreign investors were not only taking advantage of land deals but also looking for cheap labor. Few labor regulations allowed foreign companies to exploit the workers.
Dictatorships and US intervention
One of the reasons the economic environment of foreign investment increased was the many dictatorships in Latin America. Authoritarian governments interested in order and stability took power. They would make sure foreign investors saw favorable conditions especially cheap labor. For example, Mexican dictator Porfirio Diaz invited the Texas Rangers to suppress a strike at Cananea in 1906. Similarly, Chilean authorities slaughtered 1000 men women and children that were protesting the working conditions at the mines in Iquique in 1907 on what would be called the Santa Maria School Massacre. Many of these Latin American dictators preferred to have foreign investment at the cost of their workers lives. That is because Latin American industrialization was largely due to investment from Europeans and Americans.
Dictatorships also had the backing of the United States. Ever since President James Monroe announced the Monroe Doctrine that made the US the protector of the hemisphere in the early 19th century, the United States has involved itself in the daily affairs of nations across Latin America, most of the time for the benefit of North American business interests or to support right-leaning forces against leftist leaders. The term Banana Republics refers to countries with strong central governments under the influence of foreign countries and foreign businesses like the United Fruit Company.
There were 103 US interventions in the affairs of other countries between 1798 and 1895. A sampling from the list, with the exact description given by the State Department:
1852-53 -- Argentina -- Marines were landed and maintained in Buenos Aires to protect American interests during a revolution. 1853 -- Nicaragua -- to protect American lives and interests during political disturbances. 1853-54 -- Japan -- The "Opening of Japan" and the Perry Expedition. [The State Department does not give more details, but this involved the use of warships to force Japan to open its ports to the United States] 1853-54 -- Ryukyu and Bonin Islands -- Commodore Perry on three visits before going to Japan and while waiting for a reply from Japan made a naval demonstration, landing marines twice, and secured a coaling concession from the ruler of Naha on Okinawa. He also demonstrated in the Bonin Islands. All to secure facilities for commerce. 1854 -- Nicaragua -- San Juan del Norte [Greytown was destroyed to avenge an insult to the American Minister to Nicaragua.] 1855 -- Uruguay -- U.S. and European naval forces landed to protect American interests during an attempted revolution in Montevideo. 1859 -- China -- For the protection of American interests in Shanghai. 1860 -- Angola, Portuguese West Africa -- To protect American lives and property at Kissembo when the natives became troublesome. 1893 -- Hawaii -- Ostensibly to protect American lives and property; actually to promote a provisional government under Sanford B. Dole This action was disavowed by the United States. 1894 -- Nicaragua -- To protect American interests at Bluefields following a revolution. |
The Panama Canal
The Panama Canal was yet another example of economic imperialism. called Gran Colombia. The Colombians did not want to hand over control to the Americans. In 1903, Teddy Roosevelt, president of the US, encouraged some rich Panamanians to start a Revolution and declare the region independent. The coup took less than 24 hours and no one was killed. Just to make sure it happened, Roosevelt sent some US battleships with orders to shoot down any efforts from the Colombians to keep their territory. The US built the Canal and kept control until in 2000. The Canal was finished in 1914 and connected the Pacific and Atlantic oceans giving the US control over both oceans.
follow this link for a brief history of the canal
follow this link for a brief history of the canal
Hawaii - Ultra brief history
Hawaii was a monarchy but American imperial intervention led it to become a US state. Fifteen hundred years ago. Polynesians arrive in Hawaii creating a vibrant culture. By 1810 King Kamehameha I unites all the islands. By 1820 American missionaries arrive and convert a lot of the native Hawaiians. In 1835 American sugar planters arrive also. Disease kills many of the native Hawaiians. By the 1840's, native population had declined 84%.The sugar plantation owners import Chinese and Japanese workers.
Sugar planters could freely export their sugar until in 1890 the US placed a tariff on foreign sugar. In January 1893, a revolutionary “Committee of Safety,” organized by Sanford Dole and American missionaries with the help of US marines, staged a coup against Queen Liliuokalani with the tacit support of the United States. On February 1, Minister John Stevens recognized Dole's new government on his own authority and proclaimed Hawaii a U.S. protectorate. In 1898 Hawaii is annexed into the United States. |
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