Latin American Government and the Great Depression

1. Latin American Government and the Great Depression By: Haley Coppedge, Kaitlyn Jacob, Ashtyn Coates, and Bailey Smith

2. Why is Latin America so important? • America was closely tied to Latin America because of the policies like the Big Sister Policy • They relied heavily on our economy so when our economy crashed, theirs did also

3. Getulio Vargas • Supporter of the Facist Movement in Brazil • Tried to imitate the Italian government • Played on this idea through propaganda • Implemented import substitution methods through industrialization to improve the local economy

4. Import Substitution Industrialization • A trade and economic policy based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products • Focuses on protecting the “infant” industries so that they may be able to compete with imported goods and help make the economy more self sufficient

5. Argentina and the role of the Concordancia • Concordancia: coalition that General Uriburu created • Composed of conservative aristocrats, the church and the military • Used corrupt practices and won control of the national government • Uriburu was oppressive and wanted to eliminate social oppositions

6. Concordancia and the Depression • wanted to save Argentina from the crisis • Abandoning free trade • Conservative economic policies • Great Britain was Argentina’s main foreign market • Protected through a currency exchange system • import substitution industries using foreign investment • U.S. started business firms in Argentina and the foreign investment from import substitution industries played a huge role and was 50% of the total Argentinian capital investment

7. Chile • One of the countries hit the hardest by the Great Depression • Chile used agriculture as their refuge from the crisis. • The exports from their agriculture are still used in Chile today as an industry

8. Brazil • Brazil’s exchange rate plummeted • Due to Vargas and his implementation of import substitution methods, the Brazilian economy was no longer dependent on outside factors

9. Mexico • Affected Mexican immigrants • Food shortages • Job crisis • Biggest threat: deportation • The unemployment sparked a hostility towards Mexican workers and the U.S. gave them free train rides to Mexico. • Some U.S. citizens were sent away for any suspicion of being Mexican