History of Latin America - Early Twentieth Century and World Wars

Early 20th-Century U.S.-Latin American Relations (1900–1945) Introduction During the first half of the 20th century, the relationship between the United States and Latin America underwent dramatic transformations. The period began with aggressive American intervention in the hemisphere, continued through regional upheaval and economic crisis, and ended with cautious cooperation during World War II. Understanding this era requires examining both the motivations behind U.S. policy and the responses of Latin American nations to foreign influence. United States Interventionism and the "Big Stick" The Big Stick Doctrine and Expanded Interventionism President Theodore Roosevelt fundamentally reshaped U.S. policy toward Latin America by expanding the Monroe Doctrine into what became known as the "Big Stick Doctrine." The original Monroe Doctrine (1823) had warned European powers against colonizing the hemisphere. Roosevelt inverted this logic: he argued that the United States had the right to intervene in Latin American affairs to prevent instability that might invite European involvement. This doctrine represented a crucial shift from passive protection to active intervention. Roosevelt believed the U.S. had a responsibility—even a duty—to police the Western Hemisphere according to American interests and values. Specific Mechanisms of Control The United States formalized its interventionist rights through specific policies. The 1902 Platt Amendment gave the United States explicit legal permission to intervene in Cuban internal affairs whenever it deemed necessary. This amendment essentially made Cuba a protectorate rather than a truly independent nation. Perhaps most significantly, the United States orchestrated Panama's independence from Colombia in 1903, specifically to secure the right to build and control the Panama Canal. This was not a spontaneous independence movement—American naval forces prevented Colombian troops from suppressing the Panamanian rebellion, and the new Panamanian government immediately granted the U.S. canal construction rights. The "Banana Wars": Commercial Interests and Military Intervention Between 1900 and the early 1930s, the United States conducted numerous military interventions throughout Central America and the Caribbean. These interventions, collectively known as the "Banana Wars," were ostensibly justified by stability concerns but were fundamentally driven by American commercial interests. U.S. companies, particularly fruit companies and sugar producers, needed stable environments to extract resources and profits. When local governments seemed unable or unwilling to provide this stability, the United States sent marines. These interventions typically: Protected American investments and allowed resource extraction to continue Installed or propped up friendly governments Suppressed labor movements and nationalist uprisings that threatened American business interests The term "Banana Wars" itself reflects the underlying economic motive: American companies wanted to secure their control over Central America's most valuable export crops, and military force ensured they could do so. The Mexican Revolution: Upheaval and Constitutional Reform The Triggers and Key Leaders Mexico's experience differed from the smaller nations of Central America and the Caribbean, in part because its size and resources made external control more difficult. The Mexican Revolution (1910–1920) began when President Porfirio Díaz promised to step down after decades in power, then reversed course and ran for reelection. This betrayal sparked widespread uprisings led by Francisco I. Madero. What began as a political crisis evolved into a prolonged civil war involving multiple revolutionary factions with different visions for Mexico's future: Pancho Villa led forces in the north, often aligned with agrarian reform Emiliano Zapata led southern movements demanding land redistribution, famously articulating the slogan "Tierra y Libertad" (Land and Liberty) Venustiano Carranza represented a more moderate, nationalist faction based in central Mexico These leaders represented competing interests: different regions, different social classes, and different visions of what a post-revolutionary Mexico should look like. Constitutional and Institutional Outcomes From this chaos emerged the 1917 Mexican Constitution, which remains in effect today (though amended many times). This document established a liberal democratic framework, including: A single-term presidency (preventing the kind of extended rule that Díaz had maintained) Protections for workers and peasants Limits on church power Provisions for land redistribution However, the constitution was initially poorly enforced. The revolution's violence continued as different factions struggled for control. A series of assassinations and coups—Huerta (1913), Zapata (1919), Villa (1923), and Carranza (1920)—followed. Eventually, Álvaro Obregón consolidated power and brought relative stability to Mexico. Though the constitutional ideals would take decades to fully implement, the 1917 Constitution provided the legal framework for Mexico's subsequent development. The Mexican Revolution was significant not only for Mexico but for all of Latin America: it demonstrated that large-scale social upheaval could occur and that the United States, despite its interventionist tendencies, could not easily suppress a major regional power's internal affairs. The Great Depression and Import-Substitution Industrialization Economic Crisis and Strategic Response The Great Depression of the 1930s devastated Latin American economies. These nations had developed as exporters of raw materials—sugar, coffee, minerals, oil—to developed countries. When the global economy collapsed, demand for these products plummeted, and prices fell sharply. Latin American governments faced a choice: continue depending on commodity exports in hopes of eventual recovery, or pursue a new development strategy. Most chose the latter. Governments across the region adopted Import-Substitution Industrialization (ISI), a development strategy with several key components: Domestic manufacturing: Rather than importing manufactured goods, countries would develop their own industries to produce consumer goods and industrial products Self-sufficiency: ISI aimed to reduce economic dependence on foreign trade and foreign companies Protection: Governments used tariffs and import restrictions to shield domestic industries from foreign competition Social benefits: By creating industrial jobs and a growing middle class, ISI promised both economic growth and social stability ISI represented a fundamental shift in how Latin American leaders thought about their economies. Instead of accepting the international division of labor (where they provided raw materials and bought manufactured goods), they pursued a path toward national economic independence. The Good Neighbor Policy: Reversing Interventionism A New Approach When Franklin D. Roosevelt became U.S. President in 1933, he introduced the Good Neighbor Policy, which fundamentally reversed the interventionist approach of previous administrations. The policy rested on a simple principle: the United States would respect Latin American sovereignty and allow national governments to make their own decisions, even when those decisions harmed American economic interests. This was a dramatic change. For the first time, the United States explicitly allowed Latin American countries to nationalize American-owned companies—that is, seize them and place them under government control. Previously, any such action would likely trigger American military or diplomatic retaliation. The Mexican Oil Nationalization: A Test Case The most significant example of the Good Neighbor Policy in action was Mexico's oil nationalization. In 1938, Mexican President Lázaro Cárdenas seized the holdings of American oil companies operating in Mexico and created PEMEX (Petróleos Mexicanos), a state-owned enterprise to manage the nation's oil resources. Under the old interventionist framework, this would have been unthinkable—the United States almost certainly would have sent troops or imposed severe economic sanctions. Instead, under Roosevelt's Good Neighbor Policy, the U.S. accepted the nationalization. While American companies objected strenuously and tried to negotiate compensation, the fundamental sovereignty of Mexico was respected. Cárdenas also pursued aggressive land redistribution, breaking up large estates and returning land to peasants and indigenous communities. This fulfilled promises made during the Revolution and addressed the agrarian demands that leaders like Zapata had articulated. Symbolic Reversals The Good Neighbor Policy also reversed previous symbols of American dominance. Most notably, the Platt Amendment—the 1902 provision that had given the United States the explicit right to intervene in Cuban affairs—was repealed in 1934. Cuba was finally recognized as a truly independent nation (though American economic influence remained substantial). World War II and Regional Cooperation Strategic Alliance With the outbreak of World War II in Europe and Japan's expansion in the Pacific, the United States sought Latin American support. The Good Neighbor Policy had already improved relations, and most Latin American nations ultimately aligned with the United States against Nazi Germany and Imperial Japan. This wartime cooperation had several effects: Strengthened diplomatic ties: Military alliances and shared war efforts created deeper institutional connections between the U.S. and Latin American nations Economic integration: The U.S. purchased Latin American resources for war production, creating economic interdependence Enhanced strategic importance: Latin American nations recognized their geopolitical value to the United States, gaining some leverage in future negotiations World War II marked a moment when Latin American nations and the United States found common cause, moving away from the pattern of unilateral American intervention that had characterized the earlier decades of the century. Summary The first half of the 20th century witnessed a major transformation in U.S.-Latin American relations. It began with American military intervention, control mechanisms like the Platt Amendment, and policies explicitly designed to protect American commercial interests through force. The Mexican Revolution demonstrated the limits of American power in the face of large-scale internal upheaval. Economic crisis prompted Latin American nations to pursue independent development strategies through ISI. Finally, the Good Neighbor Policy signaled American acceptance of Latin American sovereignty and self-determination. By 1945, the hemisphere was positioned for new challenges and conflicts, but the era of unrestrained American interventionism had formally ended.