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