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Central American crisis

Period of civil wars and revolutions in Central America, 1960s–1990s

  • 5 min read
  • 5 chapters

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Through Civil war, South America and Soviet Union

In the aftermath of the Second World War and continuing into the 1960s and 1970s, Latin America's economic landscape drastically changed. The United Kingdom and the United States both held political and economic interests in Latin America, whose economy developed based on external dependence. Rather than solely relying on agricultural exportation, this new system promoted internal development and relied on regional common markets, banking capital, interest rates, taxes, and growing capital at the expense of labor and the peasant class. The Central American Crisis was, in part, a reaction by the most marginalized members of Latin American society to unjust land tenure, labor coercion, and unequal political representation. Landed property had taken hold of the economic and political landscape of the region, giving large corporations much influence over the region and thrusting formerly self-sufficient farmers and lower-class workers into hardship.

Background

Since 1890s, the United States enjoyed a strong influence in the American continent due to the Monroe Doctrine that protects their interest in the region. In early 1960s, the aftermath of Cuban Revolution marked as a turning point for United States foreign policies. The fear of similar revolution could happen in Latin America and Soviet Union entanglement in the continent has pushed the United States into more proactive role in securing their interest in Latin America.

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