Latin America Politics - Assignment Example

Latin America politics Answer The Neoliberal economic model was implemented in the great majority of Latin American countries in the mid/late 1980s and advocated for economic liberalisation, free trade and reductions in government expenditure in order to foster the growth of private enterprise1. The Neoliberal economic model implement in most Latin American countries came to be greatly adopted due to increased foreign debt and debt crisis that faced most countries after excessive external borrowing in order to finance export-oriented trade and ensure import substitution. The Latin American countries manufacturing was inferior compared to European products thus the economic produce could not compete in favorably in the international markets with superior products from Europe. The prospects of widespread defaults created panics among the American and European lenders and thus international institutions such as World Bank and International Monetary Fund (IMF) advocated for the reduction in interest rates and favourable repayment procedures2. The lenders imposed strict conditions for continued borrowing such as structural adjustments to the national economies and thus Latin American countries has to move to Neoliberalism economic models in order to attract more loans from international financial institutions. The national governments were expected to control government costs and inflation through monetary restraint and fiscal reforms3. Latin American countries were also forced to cut services to public sector and stop subsidies to essential goods such as petroleum and wages were supposed to be cut down in order to control inflation in the national economies4. The basic premises of the Neoliberal economic model include the reduction in government spending and size through reducing government spending on social payments and reducing government jobs. The economic model entails fiscal and monetary reforms through reducing the interest rates so as to encourage private sector borrowing for investment purposes. Accordingly, Neoliberalism requires minimisation of government regulation in economic matters through fostering private sector participation and minimising government subsidies to industries. The model requires open economies that allow for foreign investments and free movement of capital. The model requires economic liberalisation through removal of tariff and non-tariff trade barriers that hinder free trade. Accordingly, the government-owned corporations and agencies must be privatised in order to create efficiency in the allocation of resources and encourage private sector participation in those industries5. Neoliberal economic model furthers free trade, direct foreign investments and reductions in government expenditure. The model furthers free trade and growth of the private sector through requiring the governments to implement fiscal and monetary reforms that aim at controlling inflation and government debt levels. The ultimate aim of the model is to spur economic growth through increased private sector investment, increased consumer spending and high employment in the economy due to growth of industries6. Some of the principal strengths of neoliberal economic model include the high efficiency in the allocation of resources across industries in the economy and reduction of prices due to competition in the free market. Neoliberalism reduces government spending thus reducing the foreign debts which in turn improves the foreign exchange rate in the international currency markets. Neoliberalism contributes to economic globalization through free movement of goods, services and capital and allows for technology transfer across nations. However, the economic model suffers some weaknesses that include social costs and inequitable economic development across the countries. The model eliminates the concept of ‘public good’ thus reducing the quality of life in the society since citizens are not capable of enjoying public amenities such as street lighting at cheaper prices7. Answer 2 Latin American countries such as Argentina and Brazil saw populist regimes that emerged in the 1930s andn1940s. The Great Depression ended the period of political stability in many Latin American countries due to the challenging economic conditions. The 1930s were characterised by imminent military coups and growth of conservative ideals. The first government of Juan Peron (1946-1955) in Argentina was considered a populist regime and some of the factors that contributed to the emergence of the regime include the decline in export revenues due to Great Depression and subsequent decline in the popularity of conservative rule. The discontent in the militaries, electoral frauds and rise of nationalist ideals created an opportunity for the militaries to oust the conservative regimes. Juan Peron was considered as skillful political figure and utilised his vice presidency position between 1944 to 1946 to create a labour and social welfare thus leading to his popularity among the state-controlled labor movement and military. The divided military and growing demands for democratization led to elections of 1946. The victory of Peron was boosted by the growing urban working class electorate due to industrialization, rural populations and residents of poorer provinces that supported his policies on income redistribution. Peron’s government consolidated state-dominated populist alliance through favoring military groups and industrialists producing for the domestic market8. Peron government maintained democratic ideals, division of powers, political party competition and consolidated power through semi-authoritarian practices such as restrictions on strikes, assembly and mass media manipulation. The regime restricted the participation servants and union leaders in political affairs and controlled the education system thus weakening the opposition9. The main factors that contributed to demise of Peron was the changes in international economic conditions, decline in agricultural production in Argentina, the balance-of-payments deficits, economic stagnation and inflation. The divisions in his regime made him reinforce his trend towards authoritarianism and increased repressive characteristics of his rule led to declaration of state of siege and internal war. Peron party took over the newspaper and confronted Catholic Church thus strengthening the opposition resolve to oust him out of power. The death of his wife and corruption allegations of 1952 undermined his popularity and a faction of military and Catholic Church supported the anti-Peronists forces that ultimately overthrew the regime in 1955. The new regimes aimed at reducing inflation, spurring industrialisation through attracting capital and technology and reducing the balance-of-payments deficits10. Getulio Vargas (1930-1945) populist regime dominated Brazil politics through addressing conflicting interests, catering for the differing military factions and ideological political parties. Vargas centralised Brazilian politics and replaced the elected governors with his appointed interventors. Vargas consolidated power through ensuring a new Constitution in 1934, thus ensuring the Congress elected him as President in 1934. However, the Constitution did not provide for reelection and Vargas used the Army to declare a New State and officiated his dictatorship. Vargas managed to consolidate power through banning political parties, establishing new constitution and centralizing the fiscal power. Labor courts were established to check industrial conflicts and strikes and strikes were considered to be against the public interest. Accordingly, his regime established minimum wage and Brazilian military established relations with US to fight dictatorship in Europe during World War II. However, the Brazilians pressured him to establish political parties in order to allow for elections. He established two parties; Social Democratic Party (PSD) that included landowners, industrialists and interventor and Brazilian Labor Party that was popular with urban poor workers. The Opposition established National Democratic Union (NDU) and Vargas was forced to resign in 1945 and Dutra elected President through a popular vote11. Answer 3 The Mexican revolution is one of the events that shaped the contemporary political, economic and social life of Mexico. The main cause of Mexican revolution was the dissatisfaction with Diaz regime. Diaz Regime was accused of abuse of power, regressive taxes and favoritism. The liberals wanted to attain local political autonomy through devolution of political power to the states and local municipals. The dissatisfaction led to galvanization of various sectors of population such as the liberals and radicals that promoted democratic ideals. The landowners and mine owners opposed the foreign dominance and control and the workers struggled to have decent working conditions and wages12. The peasants who had lost land through landowner takeovers heeded to prodemocracy forces calls to unite and overthrow the Porfirian government thus forcing Diaz in to exile. The groups that ended prevailing during Mexican revolution were the liberals, radicals and peasants who joined the Constitutionalists who aimed at making social reforms on land ownership and labor13. Mexican revolution triggered subsequent changes in power since Francisco Madero, the elected President was assassinated and Constitutionalist Army led by Carranza seized power. Some Constitutionalist Army leaders such as Zapata wanted national sovereignty and return to democracy, but the differing opinions led to constant infightings until Zapata was assassinated ion 1919. The constitutional congress led to several social reforms such as elimination of the Church-controlled education and replacement with state-controlled education. National control of natural resources and land was implemented and land was to be redistributed according to public interest. Labor rights and unions were outlined and electoral reforms provided for regular elections without any reelection. Cardenas, was elected President in 1934 and established the independent labor confederation, confederation of Mexican workers and conducted agrarian reforms that included distribution of land to individual peasants, and created state-owned petroleum company14. Mexican revolution led to death of about 10 percent of the population through violent confrontations by the differing factions of the revolutionary leadership. The revolution strengthened state control and created state ownership of natural resources and land. The revolution diminished the power and influence of the Church and European influence declined due to recognition of Mexican culture, history and ethnicity. The revolution stimulated progressive social movements and political parties that advocated for various reforms labor rights15. Most analysis tend to consider that the revolutionary process in Mexico was ultimately conservative in its outcomes. This analysis is true since the revolutionary process was violent and led to series of political instability that hindered economic growth in the country. The revolutionary process led to redistribution of land to individual peasants thus hindering large-scale agricultural production and limiting foreign exchange earnings for the country. The revolution led to recognition of labor organizations and expropriation of foreign oil companies. Mexico implemented a mixed economy that was partly state-owned and private-owned through the significant growth of Mexican business class. The labor unions and peasant organizations remained conservative and Mexican government suppressed any popular movements through the authoritarian state16. Bibliography: Frieden, J.. Debt, development, and democracy: modern political economy and Latin America, 1965-1985. New Jersey: Princeton University Press. 1991. Kingstone, P.r. The political economy of Latin America: reflections on Neoliberalism and development. .London: Taylor & Francis. 2011. Matejowsky, T. and Wood, D.C. Political economy, Neoliberalism, and the Prehistoric economies of Latin America. Bingley: Publishing Group. 2012. Read More