Success of Latin American Governmental and Economic Policies from 1945 to Present Date

Evaluate the success of Latin American governmental and economic policies from 1945 to the present.

There were three governmental groups and two economic policies that had a significant role in the political and industrial success of Latin American nations.

Organization of American States was “formed in 1948 and was intended to eliminate unilateral action by one state in the internal or external affairs of another state, while encouraging regional cooperation to maintain peace. However, the organization was unable to control U.S. interference in Latin American political matters. The United States returned to a policy of independent action, when the government believed that Soviet politicians were attempting to use local Communists or drastic reformers for establishing governments that were aggressive to U.S. interests. (Duiker 181)

International Monetary Fund was a government organization which handled the financial system for foreign investors. In 2001, The Argentina government failed to pay the debt to the organization because the nation had been overwhelmed with low growth, rising emigration, and shrinking markets abroad. This problem caused an era of political chaos. By 2005, the debt to the IMF had been completely paid off. (Duiker 183)

Brazilian Social Democratic Party was a political party for social democrats which tried to control inflation and increase rapid industrialization. Fernando Cardoso was elected president in 1994 and introduced measures to privatize state run industries and to reform social security and the pension system. There was some economic prosperity in Brazil. In 2003, Cardoso was replaced in office because of economic problems, combined with allegations of official corruption and rising factionalism within the ruling party. (Duiker 183, 184)

Institutional Revolutionary Party focused on a balanced industrial program in Mexico during the 1950s and 1960s. Fifteen years of steady economic growth combined with low inflation and real gains in wages for many people made those years appear to be a golden age in Mexico’s economic development. However, Mexico had developed economic problems even though oil had been discovered. As the sale of oil abroad rose significantly, the government became increasingly dependent on oil reserves. When international oil prices dropped in the mid 1980s, Mexico was unable to make payments on its foreign debt, which had reached $80 billion in 1982. The government was forced to adopt new economic policies, including the sale of publicly owned companies to private parties. (Duiker 184)

North American Free Trade Agreement between United States, Canada, and Mexico was an economic policy which was more beneficial to the United States than to Mexico. Although NAFTA was highly controversial in the United States because of the fear that U.S. firms would move factories to Mexico, where labor costs are cheaper and environmental standards are less strict. (Duiker 184)

Even though there were some positive results made in Latin American, the economic policies and governmental groups overall experienced more negative outcomes.