| Economic development in Latin America has | | | | Kennedy to put phase three into |
| been a matter of great debate since they | | | | motion.Modernization theorists persuaded |
| became independent. In the nineteenth | | | | Kennedy to help modernize Latin America in |
| century, Europe and the United States thought | | | | the belief that if they did so, the Latin |
| the reason why there was a lack of | | | | American countries would commit them to |
| development among Latin American countries | | | | capitalism and democracy, and not become |
| was because they were racially inferior and | | | | communistic. Promoting health care and |
| Catholic. In the twentieth century, the | | | | education was most important to President |
| reasons advanced was that they are backwards | | | | Kennedy because Castro was very successful in |
| and uneducated. Latin American countries | | | | implementing these two reforms in Cuba. The |
| assert their lack of development is not | | | | plan implemented in Latin America was very |
| because of the theories that first world | | | | similar to the Marshall Plan, which had been |
| countries put forth, but rather due to the | | | | used for European countries after World War |
| fact that those same countries have stolen | | | | II. The downfall to this phase was that in |
| much of their mineral wealth and agricultural | | | | Latin America they were not re-creating |
| products during the colonial period. Since | | | | democracy, but rather creating it which was |
| their independence, Latin American countries | | | | much more difficult.By 1968 this phase was |
| have went through four phases of economic | | | | failing and revolutions broke out again. From |
| development.Between 1821 and 1880, the first | | | | 1982 to the present, there has been a return |
| phase consisted of classic liberalism. This | | | | to nineteenth century liberalism, called |
| type of economy consisted of free trade, and | | | | neo-liberalism. This economic policy includes |
| opening the country to foreign investment. | | | | open markets, foreign investors, and |
| Many of the Latin American countries produced | | | | globalism, such as NAFTA. This is similar in |
| a mono-crop economy, which made them very | | | | many respects to the policies existing in the |
| vulnerable to fluctuations in foreign | | | | creation of the European Union, but does not |
| markets. Classic liberalism did create some | | | | include open borders between the United |
| economic growth in the form of railroads, | | | | States and Mexico. The probable reason for |
| telegraphs, port works, and financial | | | | keeping the borders closed is that illegal |
| institutions. However this type of growth | | | | immigrants will work for substantially less |
| benefited the wealthy only; it did nothing | | | | than they would if the borders were open. |
| for the lower classes. As a result of this | | | | Foreign investment in Latin American |
| economic instability, revolts occurred among | | | | countries also benefit the capitalists much |
| Latin American countries.The second phase of | | | | more than the people of the countries |
| economic development was import substitution | | | | themselves because the capitalists do not |
| industrialization (ISI). Foreign capitalists | | | | have the same requirements to provide job |
| were driven out of the countries. For | | | | benefits to those workers that they would |
| example, Mexico nationalized oil and | | | | have in the United States, such as workman's |
| railroads, thereby forcing out Standard Oil | | | | compensation, health insurance, and minimum |
| and Andrew Carnegie. Latin American countries | | | | wage standards.While I have not determined |
| closed their borders and instituted laws that | | | | yet if America should have open borders, I do |
| foreigners could not own the majority | | | | think that foreign investors should be |
| interest in businesses. The government began | | | | required to conduct business in Latin America |
| subsidizing Latin American businesses, but | | | | countries the same as they do in the United |
| this plan did not lead to economic | | | | States. By this I mean the people of those |
| prosperity. By 1959, the countries had | | | | countries should have the same work benefits |
| minimal development and bad economic | | | | prescribed by American law to their workers. |
| problems, such as inflation, poor quality | | | | By foreign investors neglecting this, they |
| goods at exorbitant prices, and agricultural | | | | are simply exploiting the workers for their |
| societies suffering due to the government | | | | own profits such as was seen in the United |
| subsidizing industries and not them. The | | | | States in the beginning of our |
| Cuban revolution caused many Latin American | | | | industrialization.Mary Arnold is an author on |
| countries to consider their own communist | | | | which is a site for Creative Writers. |
| revolution, which instigated President John | | | | |