United States-Latin American relations
Encyclopedia
During the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

 era, the United States feared the spread of communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

 and, in some cases, overthrew democratically elected governments perceived at the time as becoming left-wing
Left-wing politics
In politics, Left, left-wing and leftist generally refer to support for social change to create a more egalitarian society...

 or unfriendly to U.S. interests. Examples include the 1954 Guatemalan coup d'état, the 1973 Chilean coup d'état and the support of the Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...

n Contras
Contras
The contras is a label given to the various rebel groups opposing Nicaragua's FSLN Sandinista Junta of National Reconstruction government following the July 1979 overthrow of Anastasio Somoza Debayle's dictatorship...

. The '70s and '80s saw a shift of power towards corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

s, and a polarization of the political election systems of many of the Latin American nations. Recently, several left-wing parties have gained power through elections and have not been attacked. In particular Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...

 has been critical of U.S. foreign policy. Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...

, Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...

, and Ecuador
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...

 currently have governments sometimes seen as aligned with Venezuela. Left-wing governments in nations such as Brazil, Paraguay
Paraguay
Paraguay , officially the Republic of Paraguay , is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the...

, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

, and Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...

 are more centrist. The right-wing governments in Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

 and Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...

 have closer relations with the U.S..

19th century to World War I

The 1823 Monroe Doctrine
Monroe Doctrine
The Monroe Doctrine is a policy of the United States introduced on December 2, 1823. It stated that further efforts by European nations to colonize land or interfere with states in North or South America would be viewed as acts of aggression requiring U.S. intervention...

, which began the United States' policy of isolationism
Isolationism
Isolationism is the policy or doctrine of isolating one's country from the affairs of other nations by declining to enter into alliances, foreign economic commitments, international agreements, etc., seeking to devote the entire efforts of one's country to its own advancement and remain at peace by...

, deemed it necessary for the United States to refrain from entering into European affairs but to protect Western hemisphere nations from foreign military intervention. The Monroe Doctrine maintained the autonomy of Latin American nations, thereby allowing the United States to impose its economic policies at will.

US Secretary of State James G. Blaine
James G. Blaine
James Gillespie Blaine was a U.S. Representative, Speaker of the United States House of Representatives, U.S. Senator from Maine, two-time Secretary of State...

 created the Big Brother policy in the 1880s, aiming to rally Latin American nations behind US leadership and to open Latin American markets to U.S. traders. Blaine served as United States Secretary of State
United States Secretary of State
The United States Secretary of State is the head of the United States Department of State, concerned with foreign affairs. The Secretary is a member of the Cabinet and the highest-ranking cabinet secretary both in line of succession and order of precedence...

 in 1881 in the cabinet of President James Garfield
James Garfield
James Abram Garfield served as the 20th President of the United States, after completing nine consecutive terms in the U.S. House of Representatives. Garfield's accomplishments as President included a controversial resurgence of Presidential authority above Senatorial courtesy in executive...

 and again from 1889 to 1892 in the cabinet of President Benjamin Harrison
Benjamin Harrison
Benjamin Harrison was the 23rd President of the United States . Harrison, a grandson of President William Henry Harrison, was born in North Bend, Ohio, and moved to Indianapolis, Indiana at age 21, eventually becoming a prominent politician there...

. As part of the policy, Blaine arranged for and lead as the first president the First International Conference of American States in 1889. A few years later, the Spanish–American War in 1898 provoked the end of the Spanish Empire
Spanish Empire
The Spanish Empire comprised territories and colonies administered directly by Spain in Europe, in America, Africa, Asia and Oceania. It originated during the Age of Exploration and was therefore one of the first global empires. At the time of Habsburgs, Spain reached the peak of its world power....

 in the Caribbean and the Pacific, with the 1898 Treaty of Paris
Treaty of Paris (1898)
The Treaty of Paris of 1898 was signed on December 10, 1898, at the end of the Spanish-American War, and came into effect on April 11, 1899, when the ratifications were exchanged....

 giving the US control over the former Spanish colonies of Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...

, the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

 and Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...

, and control over the process of independence of Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...

, which was completed in 1902.

The Panama Canal

Theodore Roosevelt
Theodore Roosevelt
Theodore "Teddy" Roosevelt was the 26th President of the United States . He is noted for his exuberant personality, range of interests and achievements, and his leadership of the Progressive Movement, as well as his "cowboy" persona and robust masculinity...

, who became President of the United States in 1901, believed that a U.S.-controlled canal across Central America was a vital strategic interest to the United States. This idea gained wide impetus following the destruction of the battleship , in Cuba, on February 15, 1898. The , a battleship stationed in San Francisco, was dispatched to take her place, but the voyage—around Cape Horn
Cape Horn
Cape Horn is the southernmost headland of the Tierra del Fuego archipelago of southern Chile, and is located on the small Hornos Island...

—took 67 days. Although she was in time to join in the Battle of Santiago Bay, the voyage would have taken just three weeks via Panama.

Roosevelt was able to reverse a previous decision by the Walker Commission in favour of a Nicaragua Canal
Nicaragua Canal
The Inter-Oceanic Nicaragua Canal was a proposed waterway through Nicaragua to connect the Caribbean Sea and Atlantic Ocean with the Pacific Ocean...

, and pushed through the acquisition of the French Panama Canal
History of the Panama Canal
The history of the Panama Canal goes back almost to the earliest explorers of the Americas. The narrow land bridge between North and South America offers a unique opportunity to create a water passage between the Atlantic and Pacific oceans...

 effort. Panama was then part of Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...

, so Roosevelt opened negotiations with the Colombians to obtain the necessary permission. In early 1903 the Hay-Herran Treaty
Hay-Herran Treaty
The Hay–Herran Treaty was a treaty signed on January 22, 1903 between United States Secretary of State John M. Hay of the United States and Dr. Tomás Herrán of Colombia...

 was signed by both nations, but the Colombian Senate failed to ratify the treaty.

In a controversial move, Roosevelt implied to Panamanian rebels that if they revolted, the U.S. Navy would assist their cause for independence. Panama proceeded to proclaim its independence on November 3, 1903, and the in local waters impeded any interference from Colombia (see gunboat diplomacy
Gunboat diplomacy
In international politics, gunboat diplomacy refers to the pursuit of foreign policy objectives with the aid of conspicuous displays of military power — implying or constituting a direct threat of warfare, should terms not be agreeable to the superior force....

).
The victorious Panamanians returned the favor to Roosevelt by allowing the United States control of the Panama Canal Zone
Panama Canal Zone
The Panama Canal Zone was a unorganized U.S. territory located within the Republic of Panama, consisting of the Panama Canal and an area generally extending 5 miles on each side of the centerline, but excluding Panama City and Colón, which otherwise would have been partly within the limits of...

 on February 23, 1904, for US$10 million (as provided in the Hay-Bunau-Varilla Treaty, signed on November 18, 1903).

The Roosevelt Corollary and Dollar Diplomacy

The U.S. president then formulated the Roosevelt Corollary to the Monroe Doctrine, in 1904, which asserted the right of the United States to intervene in Latin American nations' affairs. In its altered state, the Monroe Doctrine would now consider Latin America as an agency for expanding U.S. commercial interests in the region, along with its original stated purpose of keeping European hegemony from the hemisphere. In addition, the corollary proclaimed the explicit right of the United States to intervene in Latin American conflicts exercising an international police power.

When the Venezuelan government under Cipriano Castro
Cipriano Castro
José Cipriano Castro Ruiz was a high ranking member of the Venezuelan military, politician and the President of Venezuela from 1899 to 1908...

 was no longer able to placate the demands of European bankers in 1902, naval forces from Great Britain, Italy, and Germany erected a blockade along the Venezuelan coast and even fired upon coastal fortifications.

During the presidency of Juan Vicente Gómez
Juan Vicente Gómez
Juan Vicente Gómez Chacón was a military general and de facto ruler of Venezuela from 1908 until his death in 1935. He was president on three occasions during this time, and ruled as an unelected military strongman for the rest of the era.-Early years:Gómez was a barely literate cattle herder and...

, petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

 was discovered under Lake Maracaibo
Lake Maracaibo
Lake Maracaibo is a large brackish bay in Venezuela at . It is connected to the Gulf of Venezuela by Tablazo Strait at the northern end, and fed by numerous rivers, the largest being the Catatumbo. It is commonly considered a lake rather than a bay or lagoon, and at 13,210 km² it would be the...

. Gómez managed to deflate Venezuela's staggering debt by granting concessions to foreign oil companies, which won him the support of the United States and the European powers. The growth of the domestic oil industry strengthened the economic ties between the U.S. and Venezuela.

Banana Wars

At the end of the 19th century and the beginning of the 20th century, the US carried on several military interventions in what became known as the Banana Wars. The term arose from the connections between the interventions and the preservation of US commercial interests, starting with the United Fruit corporation, which had significant financial stakes in production of banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....

s, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...

, sugar cane, and various other agricultural products throughout the Caribbean, Central America and the northern portions of South America.

North-Americans advocating imperialism
Imperialism
Imperialism, as defined by Dictionary of Human Geography, is "the creation and/or maintenance of an unequal economic, cultural, and territorial relationships, usually between states and often in the form of an empire, based on domination and subordination." The imperialism of the last 500 years,...

 in the pre–World War I era often argued that these conflicts helped central and South Americans by aiding in stability. Some imperialists argued that these limited interventions did not serve US interests sufficiently and argued for expanded actions in the region. Anti-imperialists argued that these actions were a first step down a slippery slope towards US colonialism
Colonialism
Colonialism is the establishment, maintenance, acquisition and expansion of colonies in one territory by people from another territory. It is a process whereby the metropole claims sovereignty over the colony and the social structure, government, and economics of the colony are changed by...

 in the region.

Some modern observers have argued that if World War I had not lessened American enthusiasm for international activity these interventions might have led to the formation of an expanded U.S. colonial empire, with Central American states either annexed into Statehood like Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...

 or becoming American territories, like the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...

 and Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...

. This view is, however, heavily disputed, especially as, after a decrease in activity during and after World War I, the U.S. government intervened again in the 1920s while again stating that it was without colonial ambitions. The Banana Wars ended with the 1933 Good Neighbor Policy
Good Neighbor policy
The Good Neighbor policy was the foreign policy of the administration of United States President Franklin Roosevelt toward the countries of Latin America. Its main principle was that of non-intervention and non-interference in the domestic affairs of Latin America...

 of President Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...

; no American colonies had been created.

The countries involved in the Banana Wars include:
  • Cuba
    History of Cuba
    The known history of Cuba, the largest of the Caribbean islands, predates Christopher Columbus' sighting of the island during his first voyage of discovery on 27 October 1492...

     – Sometimes not counted among the banana wars, as the Platt Amendment
    Platt Amendment
    The Platt Amendment of 1901 was a rider appended to the Army Appropriations Act presented to the U.S. Senate by Connecticut Republican Senator Orville H. Platt replacing the earlier Teller Amendment. Approved on May 22, 1903, it stipulated the conditions for the withdrawal of United States troops...

     granted the United States the right to militarly intervene on any occasion in which Cuba's independence was threatened
  • US Occupation of the Dominican Republic
  • Honduras
    History of Honduras
    Honduras was already occupied by many indigenous peoples when the Spanish arrived in the 16th century. The western-central part of Honduras was inhabited by the Lencas, the central north coast by the Tol, the area east of Trujillo by the Pech and the Miskito and Sumo...

  • Haiti
    Haiti
    Haiti , officially the Republic of Haiti , is a Caribbean country. It occupies the western, smaller portion of the island of Hispaniola, in the Greater Antillean archipelago, which it shares with the Dominican Republic. Ayiti was the indigenous Taíno or Amerindian name for the island...

     (see United States occupation of Haiti (1915–1934))
  • United States involvement in the Mexican Revolution
    United States involvement in the Mexican Revolution
    The United States involvement in the Mexican Revolution was varied. The United States relationship with Mexico has often been turbulent. For both economic and political reasons, the American government generally supported those who occupied the seats of power, whether they held that power...

  • Nicaragua (see United States occupation of Nicaragua)
  • Panama


Though many other countries in the region may have been influenced or dominated by American banana or other companies, there is no history of U.S. military intervention during this period in those countries.

1930s–1940s

The Good Neighbor policy
Good Neighbor policy
The Good Neighbor policy was the foreign policy of the administration of United States President Franklin Roosevelt toward the countries of Latin America. Its main principle was that of non-intervention and non-interference in the domestic affairs of Latin America...

was the foreign policy
Foreign policy
A country's foreign policy, also called the foreign relations policy, consists of self-interest strategies chosen by the state to safeguard its national interests and to achieve its goals within international relations milieu. The approaches are strategically employed to interact with other countries...

 of the administration of United States President Franklin Roosevelt toward the countries of Latin America. The United States wished to have good relations with its neighbors, especially at a time when conflicts were beginning to rise once again, and this policy was more or less intended to garner Latin American support. Giving up unpopular military intervention, the United States shifted to other methods to maintain its influence in Latin America: Pan-Americanism
Pan-Americanism
-History:The struggle for independence after 1810 by the Latin American nations evoked a sense of unity, especially in South America where, under Simón Bolívar in the north and José de San Martín in the south, there were cooperative efforts. Francisco Morazán briefly headed a Federal Republic of...

, support for strong local leaders, the training of national guards, economic and cultural penetration, Export-Import Bank loans, financial supervision, and political subversion. The Good Neighbor Policy meant that the United States would keep its eye on Latin America in a more peaceful tone. On March 4, 1933, Roosevelt stated during his inaugural address that: "In the field of world policy I would dedicate this nation to the policy of the good neighbor--the neighbor who resolutely respects himself and, because he does so, respects the rights of others." This position was affirmed by Cordell Hull
Cordell Hull
Cordell Hull was an American politician from the U.S. state of Tennessee. He is best known as the longest-serving Secretary of State, holding the position for 11 years in the administration of President Franklin Delano Roosevelt during much of World War II...

, Roosevelt's Secretary of State at a conference of American states in Montevideo
Montevideo
Montevideo is the largest city, the capital, and the chief port of Uruguay. The settlement was established in 1726 by Bruno Mauricio de Zabala, as a strategic move amidst a Spanish-Portuguese dispute over the platine region, and as a counter to the Portuguese colony at Colonia del Sacramento...

 in December 1933. Hull said: "No country has the right to intervene in the internal or external affairs of another" (LaFeber, 376). This is apparent when in December of the same year Roosevelt again gave verbal evidence of a shift in U.S. policy in the region when he stated: "The definite policy of the United States from now on is one opposed to armed intervention."

Expulsion of Germans from Latin America to the U.S. during World War II

After the United States declared war on Germany, the Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...

 drafted a list of Germans in fifteen Latin American countries it suspected of subversive activities and demanded their eviction to the U.S. for detention. In response, several countries expelled a total of 4,058 Germans to the U.S. Some 10% to 15% of them were Nazi party members, including some dozen recruiters for the Nazi's overseas arm and eight people suspected of espionage. Also among them were 81 Jewish Germans who had only recently fled persecution in Nazi Germany. The bulk were ordinary Germans, who were residents in these states for years or decades. Some were expelled because corrupt Latin American officials took the opportunity to seize their property, or ordinary Latin Americans were after the financial reward that U.S. intelligence paid informants. Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

, Brazil, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

 and Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

 did not participate in the U.S. expulsion program.

1940s–1960s: the Cold War and the "hemispheric defense" doctrine

Officially started in 1947 with the Truman doctrine
Truman Doctrine
The Truman Doctrine was a policy set forth by U.S. President Harry S Truman in a speech on March 12, 1947 stating that the U.S. would support Greece and Turkey with economic and military aid to prevent their falling into the Soviet sphere...

 theorizing the "containment
Containment
Containment was a United States policy using military, economic, and diplomatic strategies to stall the spread of communism, enhance America’s security and influence abroad, and prevent a "domino effect". A component of the Cold War, this policy was a response to a series of moves by the Soviet...

" policy, the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

 had important consequences in Latin America, considered by the United States to be a full part of the Western Bloc, called "free world
Free World
The Free World is a Cold War-era term often used to describe states not under the rule of the Soviet Union, its Eastern European allies, China, Vietnam, Cuba, and other communist nations. The term often referred to states such as the United States, Canada, and Western European states such as the...

", in contrast with the Eastern Bloc
Eastern bloc
The term Eastern Bloc or Communist Bloc refers to the former communist states of Eastern and Central Europe, generally the Soviet Union and the countries of the Warsaw Pact...

, a division born with the end of World War II and the Yalta Conference
Yalta Conference
The Yalta Conference, sometimes called the Crimea Conference and codenamed the Argonaut Conference, held February 4–11, 1945, was the wartime meeting of the heads of government of the United States, the United Kingdom, and the Soviet Union, represented by President Franklin D...

 (February 1945). It "must be the policy of the United States", Truman declared, "to support free peoples who are resisting attempted subjugation by armed minorities or outside pressures." Truman rallied North-Americans to spend $400 million to intervene in the civil war in Greece
Greek Civil War
The Greek Civil War was fought from 1946 to 1949 between the Greek governmental army, backed by the United Kingdom and United States, and the Democratic Army of Greece , the military branch of the Greek Communist Party , backed by Bulgaria, Yugoslavia and Albania...

, while the Central Intelligence Agency
Central Intelligence Agency
The Central Intelligence Agency is a civilian intelligence agency of the United States government. It is an executive agency and reports directly to the Director of National Intelligence, responsible for providing national security intelligence assessment to senior United States policymakers...

 (CIA) (created by the National Security Act of 1947
National Security Act of 1947
The National Security Act of 1947 was signed by United States President Harry S. Truman on July 26, 1947, and realigned and reorganized the U.S. Armed Forces, foreign policy, and Intelligence Community apparatus in the aftermath of World War II...

) intervention in this country was its first act of birth. By aiding Greece, Truman set a precedent for U.S. aid to regimes, no matter how repressive and corrupt, that request help to fight communists. Washington began to sign a series of defense treaties with countries all over the world, including the North Atlantic Treaty
North Atlantic Treaty
The North Atlantic Treaty is the treaty that brought NATO into existence, signed in Washington, D.C. on 4 April 1949. The original twelve nations that signed it and thus became the founding members of NATO were:...

 of 1949 which created NATO, and the ANZUS
ANZUS
The Australia, New Zealand, United States Security Treaty is the military alliance which binds Australia and New Zealand and, separately, Australia and the United States to cooperate on defence matters in the Pacific Ocean area, though today the treaty is understood to relate to attacks...

 in 1951 with Australia and New Zealand. Moscow response to NATO and to the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 in Europe included the creation of the COMECON
Comecon
The Council for Mutual Economic Assistance , 1949–1991, was an economic organisation under hegemony of Soviet Union comprising the countries of the Eastern Bloc along with a number of communist states elsewhere in the world...

 economic treaty and the Warsaw Pact
Warsaw Pact
The Warsaw Treaty Organization of Friendship, Cooperation, and Mutual Assistance , or more commonly referred to as the Warsaw Pact, was a mutual defense treaty subscribed to by eight communist states in Eastern Europe...

 defense alliance, gathering Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...

 countries which had fallen under its sphere of influence
Sphere of influence
In the field of international relations, a sphere of influence is a spatial region or conceptual division over which a state or organization has significant cultural, economic, military or political influence....

. After the Berlin Blockade
Berlin Blockade
The Berlin Blockade was one of the first major international crises of the Cold War and the first resulting in casualties. During the multinational occupation of post-World War II Germany, the Soviet Union blocked the Western Allies' railway and road access to the sectors of Berlin under Allied...

 by the Soviet Union, the Korean War
Korean War
The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...

 (1950–53) was one of the first conflicts of the Cold War, while the US would succeed France in the counter-revolutionary war against Viet-minh in Indochina.

In Latin America itself, the US defense treaty was the Inter-American Treaty of Reciprocal Assistance
Inter-American Treaty of Reciprocal Assistance
The Inter-American Treaty of Reciprocal Assistance was an agreement signed on 1947 in Rio de Janeiro among many countries of the Americas...

 (aka Rio Treaty or TIAR) of 1947, known as the "hemispheric defense" treaty. It was the formalization of the Act of Chapultepec
Chapultepec
Chapultepec Park, more commonly called the "Bosque de Chapultepec" in Mexico City, is the largest city park in Latin America, measuring in total just over 686 hectares. Centered on a rock formation called Chapultepec Hill, one of the park's main functions is to be an ecological space in the vast...

, adopted at the Inter-American Conference on the Problems of War and Peace in 1945 in Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...

. The US had maintained a hemispheric defense policy under the Monroe Doctrine
Monroe Doctrine
The Monroe Doctrine is a policy of the United States introduced on December 2, 1823. It stated that further efforts by European nations to colonize land or interfere with states in North or South America would be viewed as acts of aggression requiring U.S. intervention...

, and during the 1930s had been alarmed by Axis
Axis Powers
The Axis powers , also known as the Axis alliance, Axis nations, Axis countries, or just the Axis, was an alignment of great powers during the mid-20th century that fought World War II against the Allies. It began in 1936 with treaties of friendship between Germany and Italy and between Germany and...

 overtures toward military cooperation with Latin American governments, in particular apparent strategic threats against the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...

. During the war, Washington had been able to secure Allied
Allies of World War II
The Allies of World War II were the countries that opposed the Axis powers during the Second World War . Former Axis states contributing to the Allied victory are not considered Allied states...

 support from all individual governments except Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...

, which remained neutral, and wished to make those commitments permanent. With the exceptions of Trinidad and Tobago
Trinidad and Tobago
Trinidad and Tobago officially the Republic of Trinidad and Tobago is an archipelagic state in the southern Caribbean, lying just off the coast of northeastern Venezuela and south of Grenada in the Lesser Antilles...

 (1967), Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...

 (1981), and the Bahamas (1982), no countries that became independent after 1947 have joined the treaty. The next year, the Organization of American States
Organization of American States
The Organization of American States is a regional international organization, headquartered in Washington, D.C., United States...

 was created in April 1948, during the Ninth International Conference of American States held in Bogotá
Bogotá
Bogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...

 and led by U.S. Secretary of State George Marshall
George Marshall
George Catlett Marshall was an American military leader, Chief of Staff of the Army, Secretary of State, and the third Secretary of Defense...

. Members states pledge to fight communism
Anti-communism
Anti-communism is opposition to communism. Organized anti-communism developed in reaction to the rise of communism, especially after the 1917 October Revolution in Russia and the beginning of the Cold War in 1947.-Objections to communist theory:...

 in the Americas. 21 American countries signed the Charter of the Organization of American States
Charter of the Organization of American States
The Charter of the Organization of the American States is a Pan-American treaty that sets out the creation of the Organization of American States. It was signed at the Ninth International Conference of American States of 30 April 1948, held in Bogotá, Colombia...

 on 30 April 1948.

Operation PBSUCCESS
Operation PBSUCCESS
The 1954 Guatemalan coup d'état was a covert operation organized by the United States Central Intelligence Agency to overthrow Jacobo Árbenz Guzmán, the democratically-elected President of Guatemala....

 which overthrew the democratically-elected President of Guatemala
President of Guatemala
The title of President of Guatemala has been the usual title of the leader of Guatemala since 1839, when that title was assumed by Mariano Rivera Paz...

, Jacobo Arbenz Guzmán
Jacobo Arbenz Guzmán
Colonel Jacobo Árbenz Guzmán was a Guatemalan military officer and politician who served as Defense Minister of Guatemala from 1944–1951, and as President of Guatemala from 1951 to 1954....

 in 1954 was to be one of the first in a long series of US intervention in Latin America during the Cold War. It immediately followed the overthrow of Mossadegh
Operation Ajax
The 1953 Iranian coup d'état was the overthrow of the democratically elected government of Iranian Prime Minister Mohammad Mosaddegh on 19 August 1953, orchestrated by the intelligence agencies of the United Kingdom and the United States under the name TPAJAX Project...

 in Iran (1953).

1960s: the Cuban Revolution and the U.S. response

The 1959 Cuban Revolution
Cuban Revolution
The Cuban Revolution was an armed revolt by Fidel Castro's 26th of July Movement against the regime of Cuban dictator Fulgencio Batista between 1953 and 1959. Batista was finally ousted on 1 January 1959, and was replaced by a revolutionary government led by Castro...

 headed by Fidel Castro
Fidel Castro
Fidel Alejandro Castro Ruz is a Cuban revolutionary and politician, having held the position of Prime Minister of Cuba from 1959 to 1976, and then President from 1976 to 2008. He also served as the First Secretary of the Communist Party of Cuba from the party's foundation in 1961 until 2011...

 was one of the first defeats of the US foreign policy in Latin America. Cuba became in 1961 a member of the newly created Non-Aligned Movement
Non-Aligned Movement
The Non-Aligned Movement is a group of states considering themselves not aligned formally with or against any major power bloc. As of 2011, the movement had 120 members and 17 observer countries...

, which succeeded to the 1955 Bandung Conference. After the implementation of several economic reforms, including complete nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

s, by Cuba's government, US trade restrictions on Cuba increased. The U.S. stopped buying Cuban sugar, on which Cuba's economy depended the most, and refused to supply its former trading partner with much needed oil, creating a devastating effect on the island's economy. In March 1960, tensions increased when the freighter La Coubre
La Coubre explosion
The freighter La Coubre exploded at 3:10 p.m. on 4 March 1960, while it was being unloaded in Havana harbor, Cuba. This 4,310-ton French vessel was carrying 76 tons of Belgian munitions from the port of Antwerp. Unloading explosive ordnance directly onto the dock was against port regulations...

 exploded in Havana harbor, killing over 75 people. Fidel Castro blamed the United States and compared the incident to the 1898 sinking of the , which had precipated the Spanish-American War
Spanish-American War
The Spanish–American War was a conflict in 1898 between Spain and the United States, effectively the result of American intervention in the ongoing Cuban War of Independence...

, though admitting he could provide no evidence for his accusation. That same month, President Dwight D. Eisenhower
Dwight D. Eisenhower
Dwight David "Ike" Eisenhower was the 34th President of the United States, from 1953 until 1961. He was a five-star general in the United States Army...

 authorized the CIA to organize, train, and equip Cuban refugees as a guerrilla force to overthrow Castro, which would lead to the 1961 Bay of Pigs invasion
Bay of Pigs Invasion
The Bay of Pigs Invasion was an unsuccessful action by a CIA-trained force of Cuban exiles to invade southern Cuba, with support and encouragement from the US government, in an attempt to overthrow the Cuban government of Fidel Castro. The invasion was launched in April 1961, less than three months...

.

Each time the Cuban government nationalized American properties, the American government took countermeasures, resulting in the prohibition of all exports to Cuba on October 19, 1960. Consequently, Cuba began to consolidate trade relations with the Soviet Union
Cuban-Soviet relations
After the establishment of diplomatic ties with the Soviet Union after the Cuban revolution of 1959, Cuba became increasingly dependent on Soviet markets and military aid becoming an ally of the Soviet Union during the Cold War...

, leading the US to break off all remaining official diplomatic relations. Later that year, U.S. diplomats Edwin L. Sweet and Wiliam G. Friedman were arrested and expelled from the island having been charged with "encouraging terrorist acts, granting asylum, financing subversive publications and smuggling weapons". The U.S. began the formulation of new plans aimed at destabilizing the Cuban government, collectively known as "The Cuban Project" (aka Operation Mongoose). This was to be a co-ordinated program of political, psychological, and military sabotage, involving intelligence operations as well as assassination attempts on key political leaders. The Cuban project also proposed false flag
False flag
False flag operations are covert operations designed to deceive the public in such a way that the operations appear as though they are being carried out by other entities. The name is derived from the military concept of flying false colors; that is flying the flag of a country other than one's own...

 attacks, known as Operation Northwoods
Operation Northwoods
Operation Northwoods was a series of false-flag proposals that originated within the United States government in 1962. The proposals called for the Central Intelligence Agency , or other operatives, to commit acts of terrorism in U.S. cities and elsewhere...

. A U.S. Senate Select Intelligence Committee
United States Senate Select Committee on Intelligence
The United States Senate Select Committee on Intelligence is dedicated to overseeing the United States Intelligence Community—the agencies and bureaus of the federal government of the United States who provide information and analysis for leaders of the executive and legislative branches. The...

 report later confirmed over eight attempted plots to kill Castro between 1960 and 1965, as well as additional plans against other Cuban leaders.
Beside this aggressive policy towards Cuba, President John F. Kennedy
John F. Kennedy
John Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963....

 tried to implement in 1961 the Alliance for Progress
Alliance for Progress
The Alliance for Progress initiated by U.S. President John F. Kennedy in 1961 aimed to establish economic cooperation between the U.S. and South America.-Origin and goals:...

, an economic aid program which proved to be too shy. In the same time, the U.S. suspended economic and/or broke off diplomatic relations with several dictatorships between 1961 and JFK's assassination in 1963, including Argentina, the Dominican Republic, Ecuador, Guatemala, Honduras, and Peru. But these suspensions were imposed only temporarily, for periods of only three weeks to six months. However, the US finally decided it best to train Latin American militaries in counter-insurgency
Counter-insurgency
A counter-insurgency or counterinsurgency involves actions taken by the recognized government of a nation to contain or quell an insurgency taken up against it...

 tactics at the School of the Americas. In effect, the Alliance for Progress included U.S. programs of military and police assistance to counter Communism, including Plan LASO in Colombia.

The nuclear arms race
Nuclear arms race
The nuclear arms race was a competition for supremacy in nuclear warfare between the United States, the Soviet Union, and their respective allies during the Cold War...

 brought the two superpowers to the brink of nuclear war. In 1962, President John F. Kennedy responded to the installation of nuclear missiles in Cuba with a naval blockade—a show of force that brought the world close to nuclear war. The Cuban Missile Crisis
Cuban Missile Crisis
The Cuban Missile Crisis was a confrontation among the Soviet Union, Cuba and the United States in October 1962, during the Cold War...

 showed that neither superpower was ready to use nuclear weapons for fear of the other's retaliation, and thus of mutually assured destruction. The aftermath of the Cuban Missile Crisis led to the first efforts at nuclear disarmament and improving relations. (Palmowski)

By 1964, under President Johnson, the program to discriminate against dictatorial regimes ceased. In March 1964 the US approved a military coup in Brazil, overthrowing left-wing president João Goulart
João Goulart
João Belchior Marques Goulart was a Brazilian politician and the 24th President of Brazil until a military coup d'état deposed him on April 1, 1964. He is considered to have been the last left-wing President of the country until Luiz Inácio Lula da Silva took office in 2003.-Name:João Goulart is...

, and was prepared to help if called upon under Operation Brother Sam. The next year, the US dispatched 24,000 troops to the Dominican Republic to stop a possible left-wing take over under Operation Power Pack
Operation Power Pack
The second United States occupation of the Dominican Republic began when the United States Marines Corps entered Santo Domingo on April 28, 1965. They were later joined by most of the United States Army's 82nd Airborne Division and its parent XVIIIth Airborne Corps...

.

Through the Office of Public Safety
Office of Public Safety
The Office of Public Safety was a US government agency, established in 1957 by US President Dwight D. Eisenhower to train police forces of US allies. It was officially part of USAID , and was close to the Central Intelligence Agency . Police-training teams were sent to South Vietnam, Iran, Taiwan,...

 (OPS), an organization dependent of the USAID and close to the CIA, the US assisted Latin American security forces, training them in interrogation methods, riot control, and sending them equipment. Dan Mitrione
Dan Mitrione
Daniel A. Mitrione was an Italian-born American police officer, Federal Bureau of Investigation agent and a United States government advisor for the Central Intelligence Agency in Latin America.- Career :...

, in Uruguay, became infamous for his systemic use of torture.

1970s: the era of the juntas

Following the 1959 Cuban Revolution
Cuban Revolution
The Cuban Revolution was an armed revolt by Fidel Castro's 26th of July Movement against the regime of Cuban dictator Fulgencio Batista between 1953 and 1959. Batista was finally ousted on 1 January 1959, and was replaced by a revolutionary government led by Castro...

 and the local implementation in several countries of Che Guevara
Che Guevara
Ernesto "Che" Guevara , commonly known as el Che or simply Che, was an Argentine Marxist revolutionary, physician, author, intellectual, guerrilla leader, diplomat and military theorist...

's foco theory, the US waged a war in South America against the "Communist subversives
Subversion (politics)
Subversion refers to an attempt to transform the established social order, its structures of power, authority, and hierarchy; examples of such structures include the State. In this context, a "subversive" is sometimes called a "traitor" with respect to the government in-power. A subversive is...

", leading to support in Chile
United States intervention in Chile
The United States intervention in Chilean politics started during the War of Chilean Independence. The influence of the United States of America in both the economic and the political arenas of Chile has gradually increased over the almost two centuries since, and continues to be...

 of the right-wing, which would culminate with Augusto Pinochet
Augusto Pinochet
Augusto José Ramón Pinochet Ugarte, more commonly known as Augusto Pinochet , was a Chilean army general and dictator who assumed power in a coup d'état on 11 September 1973...

's coup in 1973 in Chile against democratically-elected Salvador Allende
Salvador Allende
Salvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....

. In a few years, all of South America was covered by similar military dictatorships, called juntas. In Paraguay
History of Paraguay
The history of Paraguay is poorly documented, as almost no archaeological research has been done and little is known of Paraguay's pre-Columbian history. What is certain is that the eastern part of the country was occupied by Guaraní peoples for at least 1,000 years before the Spanish colonization...

, Alfredo Stroessner
Alfredo Stroessner
Alfredo Stroessner Matiauda, whose name is also spelled Strössner or Strößner , was a Paraguayan military officer and dictator from 1954 to 1989...

 was in power since 1954; in Brazil
History of Brazil
The history of Brazil begins with the arrival of the first indigenous peoples, thousands of years ago by crossing the Bering land bridge into Alaska and then moving south....

, left-wing President João Goulart
João Goulart
João Belchior Marques Goulart was a Brazilian politician and the 24th President of Brazil until a military coup d'état deposed him on April 1, 1964. He is considered to have been the last left-wing President of the country until Luiz Inácio Lula da Silva took office in 2003.-Name:João Goulart is...

 was overthrown by a military coup in 1964; in Bolivia
History of Bolivia
This is the history of Bolivia. See also the history of Latin America and the history of the Americas.Bolivia is a landlocked country in South America...

, General Hugo Banzer
Hugo Banzer
Hugo Banzer Suárez was a politician, military general, dictator and President of Bolivia. He held the Bolivian presidency twice: from August 22, 1971 to July 21, 1978, as a dictator; and then again from August 6, 1997 to August 7, 2001, as constitutional President.-Military and ideological...

 overthrew leftist General Juan José Torres
Juan José Torres
Juan José Torres González was a Bolivian socialist politician and military leader. He served as President of Bolivia from October 7, 1970 to August 21, 1971. He was popularly known as "J.J."...

 in 1971; in Uruguay
History of Uruguay
This is about the history of Uruguay.-Pre-Columbian times and colonization:The only documented inhabitants of Uruguay before European colonization of the area were the Charrua, a small tribe driven south by the Guaraní of Paraguay...

, considered the "Switzerland" of South America, Juan María Bordaberry
Juan María Bordaberry
Juan María Bordaberry Arocena was a Uruguayan politician and cattle rancher, who first served as President from 1972 until 1976, including as a dictator from 1973 until his ouster in a 1976 coup...

 seized power in the June 27, 1973 coup. In Peru
History of Peru
The history of Peru spans several millennia, extending back through several stages of cultural development in the mountain region and the coastal desert....

, leftist General Velasco Alvarado in power since 1968 planned to use the recently empowered Peruvian military to overwhelm Chilean armed forces in a planned invasion of Pinochetist Chile. A "Dirty War
Dirty War
The Dirty War was a period of state-sponsored violence in Argentina from 1976 until 1983. Victims of the violence included several thousand left-wing activists, including trade unionists, students, journalists, Marxists, Peronist guerrillas and alleged sympathizers, either proved or suspected...

" was waged all over the continent, culminating with Operation Condor
Operation Condor
Operation Condor , was a campaign of political repression involving assassination and intelligence operations officially implemented in 1975 by the right-wing dictatorships of the Southern Cone of South America...

, an agreement between security services of the Southern Cone
Southern Cone
Southern Cone is a geographic region composed of the southernmost areas of South America, south of the Tropic of Capricorn. Although geographically this includes part of Southern and Southeast of Brazil, in terms of political geography the Southern cone has traditionally comprised Argentina,...

 and other South American countries to repress and assassinate political opponents. Militaries also took power in Argentina
History of Argentina
The history of Argentina is divided by historians into four main parts: the pre-Columbian time, or early history , the colonial period , the independence wars and the early post-colonial period of the nation and the history of modern Argentina .The beginning of prehistory in the present territory of...

 in 1976, and then supported the 1980 "Cocaine Coup
Luis García Meza Tejada
Luis García Meza Tejada is a former Bolivian dictator. A native of La Paz, he was a career military officer who rose to the rank of general during the reign of dictator Hugo Banzer...

" of Luis García Meza Tejada
Luis García Meza Tejada
Luis García Meza Tejada is a former Bolivian dictator. A native of La Paz, he was a career military officer who rose to the rank of general during the reign of dictator Hugo Banzer...

 in Bolivia, before training the Contras
Contras
The contras is a label given to the various rebel groups opposing Nicaragua's FSLN Sandinista Junta of National Reconstruction government following the July 1979 overthrow of Anastasio Somoza Debayle's dictatorship...

 in Nicaragua where the Sandinista National Liberation Front
Sandinista National Liberation Front
The Sandinista National Liberation Front is a socialist political party in Nicaragua. Its members are called Sandinistas in both English and Spanish...

, headed by Daniel Ortega
Daniel Ortega
José Daniel Ortega Saavedra is a Nicaraguan politician and revolutionary, currently serving as the 83rd President of Nicaragua, a position that he has held since 2007. He previously served as the 79th President, between 1985 and 1990, and for much of his life, has been a leader in the Sandinista...

, had taken power in 1979, as well as militaries in Guatemala
Guatemalan Civil War
The Guatemalan Civil War ran from 1960-1996. The thirty-six-year civil war began as a grassroots, popular response to the rightist and military usurpation of civil government , and the President's disrespect for the human and civil rights of the majority of the population...

 and in El Salvador
History of El Salvador
The history of El Salvador has been a history of struggle against conquistadors, empires, dictatorships and world powers to be free. El Salvador was one of the regions that resisted the Spanish invasion led by Pedro de Alvarado who had to fight Atlantica and retreat several times back to Guatemala...

. In the frame of Operation Charly
Operation Charly
Operation Charly , according to journalist María Seoane, was the alleged code-name of a right-wing covert operation to extend the illegal methods of repression used in the so-called "Dirty War" in Argentina to Central America...

, supported by the US, the Argentine military exported state terror tactics to Central America, where the "dirty war" was waged until well in the 1990s, making hundreds of thousands "disappeared
Forced disappearance
In international human rights law, a forced disappearance occurs when a person is secretly abducted or imprisoned by a state or political organization or by a third party with the authorization, support, or acquiescence of a state or political organization, followed by a refusal to acknowledge the...

."

Placing their own actions within the US doctrine of "National Security
National security
National security is the requirement to maintain the survival of the state through the use of economic, diplomacy, power projection and political power. The concept developed mostly in the United States of America after World War II...

" against "internal subversion", the authoritarian regimes who had crushed left-wing opposition began a transition to neoliberal economic policies. Chile thus became one of the laboratory of shock therapy
Shock therapy (economics)
In economics, shock therapy refers to the sudden release of price and currency controls, withdrawal of state subsidies, and immediate trade liberalization within a country, usually also including large scale privatization of previously public owned assets....

, under the supervision of the Chicago boys
Chicago Boys
The Chicago Boys were a group of young Chilean economists most of whom trained at the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at the Catholic University of Chile...

 influenced by Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...

's monetarism
Monetarism
Monetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...

.

With the election of President Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...

 in 1977, the US moderated for a short time support to authoritarian regimes in Latin America. It was during this year that the Inter-American Court of Human Rights
Inter-American Court of Human Rights
The Inter-American Court of Human Rights is an autonomous judicial institution based in the city of San José, Costa Rica. Together with the Inter-American Commission on Human Rights, it makes up the human rights protection system of the Organization of American States , which serves to uphold and...

, an agency of the OAS, was created. At the same time, voices in North America began to denounce Pinochet's violation of human rights, in particular after the 1976 assassination of former Chilean minister Orlando Letelier
Orlando Letelier
Marcos Orlando Letelier del Solar was a Chilean economist, Socialist politician and diplomat during the presidency of Socialist President Salvador Allende...

 in Washington, D.C..

1980s–1990s: democratization and the Washington Consensus

The inauguration of Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....

 in 1981 meant a renewed support for right-wing authoritarian regimes in Latin America. In the 1980s, the situation progressively evolved in the world as in South America, despite a renewal of the Cold War from 1979 to 1985, the year during which Mikhail Gorbachev
Mikhail Gorbachev
Mikhail Sergeyevich Gorbachev is a former Soviet statesman, having served as General Secretary of the Communist Party of the Soviet Union from 1985 until 1991, and as the last head of state of the USSR, having served from 1988 until its dissolution in 1991...

 replaced Konstantin Chernenko
Konstantin Chernenko
Konstantin Ustinovich Chernenko was a Soviet politician and the fifth General Secretary of the Communist Party of the Soviet Union. He led the Soviet Union from 13 February 1984 until his death thirteen months later, on 10 March 1985...

 as leader of the USSR, and began to implement the glasnost
Glasnost
Glasnost was the policy of maximal publicity, openness, and transparency in the activities of all government institutions in the Soviet Union, together with freedom of information, introduced by Mikhail Gorbachev in the second half of the 1980s...

 and the perestroika
Perestroika
Perestroika was a political movement within the Communist Party of the Soviet Union during 1980s, widely associated with the Soviet leader Mikhail Gorbachev...

 democratic-inspired reforms. South America saw various states returning progressively to democracy. This democratization of South America found a symbol in the OAS's adoption of Resolution 1080 in 1991, which requires the Secretary General to convene the Permanent Council
Permanent Council of the Organization of American States
The Permanent Council is one of the two main political bodies of the Organization of American States, the other being the General Assembly.The Permanent Council is established under Chapter XII of the OAS Charter. It is composed of ambassadors appointed by the member states , and it meets regularly...

 within ten days of a coup d'état
Coup d'état
A coup d'état state, literally: strike/blow of state)—also known as a coup, putsch, and overthrow—is the sudden, extrajudicial deposition of a government, usually by a small group of the existing state establishment—typically the military—to replace the deposed government with another body; either...

 in any member country. However, in the same time, Washington started to aggressively pursue the "War on Drugs
War on Drugs
The War on Drugs is a campaign of prohibition and foreign military aid and military intervention being undertaken by the United States government, with the assistance of participating countries, intended to both define and reduce the illegal drug trade...

", which included the invasion of Panama
United States invasion of Panama
The United States Invasion of Panama, code-named Operation Just Cause, was the invasion of Panama by the United States in December 1989. It occurred during the administration of U.S. President George H. W...

 in 1989 to overthrow Manuel Noriega
Manuel Noriega
Manuel Antonio Noriega Moreno is a Panamanian politician and soldier. He was military dictator of Panama from 1983 to 1989.The 1989 invasion of Panama by the United States removed him from power; he was captured, detained as a prisoner of war, and flown to the United States. Noriega was tried on...

, who had been a long-time ally of the US and had even worked for the CIA before his reign as leader of the country. The "War on Drugs" was later expanded through Plan Colombia
Plan Colombia
The term Plan Colombia is most often used to refer to U.S. legislation aimed at curbing drug smuggling and combating a left-wing insurgency by supporting different activities in Colombia....

 in the late 1990s.

Reagan's support of British Prime Minister Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...

 during the 1982 Falklands War
Falklands War
The Falklands War , also called the Falklands Conflict or Falklands Crisis, was fought in 1982 between Argentina and the United Kingdom over the disputed Falkland Islands and South Georgia and the South Sandwich Islands...

 against the military junta
National Reorganization Process
The National Reorganization Process was the name used by its leaders for the military government that ruled Argentina from 1976 to 1983. In Argentina it is often known simply as la última junta militar or la última dictadura , because several of them existed throughout its history.The Argentine...

 in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

 also led to a change of relations between Washington and Buenos Aires which had been actively helping Reagan when the Argentine intelligence service was training and arming the Nicaraguan Contras
Contras
The contras is a label given to the various rebel groups opposing Nicaragua's FSLN Sandinista Junta of National Reconstruction government following the July 1979 overthrow of Anastasio Somoza Debayle's dictatorship...

 against the Sandinista
Sandinista National Liberation Front
The Sandinista National Liberation Front is a socialist political party in Nicaragua. Its members are called Sandinistas in both English and Spanish...

 government (Operation Charly
Operation Charly
Operation Charly , according to journalist María Seoane, was the alleged code-name of a right-wing covert operation to extend the illegal methods of repression used in the so-called "Dirty War" in Argentina to Central America...

). The 601 Intelligence Battalion
Batallón de Inteligencia 601
The Batallón de Inteligencia 601 was a special military intelligence service of the Argentine Army whose structure was set up in the late 1970s, active in the Dirty War and Operation Condor, and disbanded in 2000...

, for example, trained Contras at Lepaterique
Lepaterique
Lepaterique is a municipality in the Honduran department of Francisco Morazán.A military base located in Lepaterique was used during the 1980s by the Contras and by the Argentine 601 Intelligence Battalion, which was involved in Operation Condor....

 base, in Honduras, under the supervision of US ambassador John Negroponte
John Negroponte
John Dimitri Negroponte is an American diplomat. He is currently a research fellow and lecturer in international affairs at Yale University's Jackson Institute for Global Affairs...

. While the US were fighting against Nicaragua, leading to the 1986 Nicaragua v. United States case before the International Court of Justice
International Court of Justice
The International Court of Justice is the primary judicial organ of the United Nations. It is based in the Peace Palace in The Hague, Netherlands...

, Washington, D.C. supported authoritarian regimes in Guatemala and Salvador. The support to General Ríos Montt
Efraín Ríos Montt
José Efraín Ríos Montt is a former de facto President of Guatemala, dictator, army general, and former president of Congress. In the 2003 presidential elections, he unsuccessfully ran as the candidate of the ruling Guatemalan Republican Front .Huehuetenango-born Ríos Montt remains one of the most...

 during the Guatemalan Civil War
Guatemalan Civil War
The Guatemalan Civil War ran from 1960-1996. The thirty-six-year civil war began as a grassroots, popular response to the rightist and military usurpation of civil government , and the President's disrespect for the human and civil rights of the majority of the population...

 and the alliance with José Napoleón Duarte
José Napoleón Duarte
José Napoleón Duarte Fuentes was a Salvadoran political figure who, from March 3, 1980, to 1982, led the civil-military Revolutionary Government Junta that took power in a 1979 coup d'état...

 during the Salvadoran Civil War were legitimized by the Reagan administration as full part of the Cold War, although other allies strongly criticized this assistance to dictatorships (i.e., the French Socialist Party's 110 Propositions).

In fact, many Latin American countries view the 1982 conflict as a clear example of how the so called Hemispheric relations works.
A deep weakening of hemispheric relations occurred due to the American support given, without mediation, to the United Kingdom during the Falklands war in 1982. Some argue this definitively turned the TIAR into a dead letter. In 2001, the United States invoked the Rio Treaty after the September 11 attacks
September 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...

 but Latin American democracies did not join the War on Terror
War on Terror
The War on Terror is a term commonly applied to an international military campaign led by the United States and the United Kingdom with the support of other North Atlantic Treaty Organisation as well as non-NATO countries...

. (Furthermore, Mexico withdrew from the treaty in 2001 citing the Falklands example.)

On the economic plane, hardly affected by the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...

, Mexico refusal in 1983 to pay the interest of its debt led to the Latin American debt crisis
Latin American debt crisis
The Latin American debt crisis was a financial crisis that occurred in the early 1980s , often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.-Origins:In the 1960s and 1970s many...

 and subsequently to a shift from the Import substitution industrialization (ISI) policies followed by most countries to export-oriented industrialization
Export-oriented industrialization
Export-oriented Industrialization sometimes called export substitution industrialization or export led industrialization is a trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage...

, which was encouraged by the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

 (IMF), the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 and the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

 (WTO). While globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 was making its effects felt in the whole world, the 1990s were dominated by the Washington Consensus
Washington Consensus
The term Washington Consensus was coined in 1989 by the economist John Williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the "standard" reform package promoted for crisis-wracked developing countries...

, which imposed a series of neo-liberal economic reforms in Latin America. The First Summit of the Americas, held in Miami in 1994, resolved to establish a Free Trade Area of the Americas
Free Trade Area of the Americas
The Free Trade Area of the Americas , , ) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas but Cuba. In the last round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal...

 (ALCA, Área de Libre Comercio de las Américas) by 2005. The ALCA was supposed to be the generalization of the North American Free Trade Agreement
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...

 between Canada, the US and Mexico, which came into force in 1994. Opposition to both NAFTA and ALCA was symbolized during this time by the Zapatista Army of National Liberation
Zapatista Army of National Liberation
The Zapatista Army of National Liberation is a revolutionary leftist group based in Chiapas, the southernmost state of Mexico....

 insurrection, headed by Subcomandante Marcos
Subcomandante Marcos
Subcomandante Marcos is the spokesperson for the Zapatista Army of National Liberation , a Mexican rebel movement. In January 1994, he led an army of Mayan farmers into the eastern parts of the Mexican state of Chiapas protesting against the Mexican government's treatment of indigenous...

, which became active on the day that NAFTA went into force (January 1, 1994) and declared itself to be in explicit opposition to the ideology of globalization or neoliberalism, which NAFTA symbolized.

2000s: democratic socialism

The political context evolved again in the 2000s, with the election in several South American countries of socialist governments. This "pink tide" thus saw the successive elections of Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...

 in Venezuela (1998)
Venezuelan presidential election, 1998
In the Venezuelan presidential election of 1998, Hugo Chávez was elected to his first term as President of Venezuela with the largest percentage of the popular vote in four decades...

, Lula
Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva , known popularly as Lula, served as the 35th President of Brazil from 2003 to 2010.A founding member of the Workers' Party , he ran for President three times unsuccessfully, first in the 1989 election. Lula achieved victory in the 2002 election, and was inaugurated as...

 in Brazil (2002)
Brazilian general election, 2002
Lula's Worker's Party won the most seats in the Parliamentary elections, though failed to gain an outright majority as they won only 91 of the 513 seats.-Results:...

, Néstor Kirchner
Néstor Kirchner
Néstor Carlos Kirchner was an Argentine politician who served as the 54th President of Argentina from 25 May 2003 until 10 December 2007. Previously, he was Governor of Santa Cruz Province since 10 December 1991. He briefly served as Secretary General of the Union of South American Nations ...

 in Argentina (2003)
Argentine general election, 2003
Argentina held presidential and parliamentary elections on Sunday, April 27, 2003. Turnout was 78.2% and the results were as follows:-Argentine Congress:-Background:...

, Tabaré Vázquez
Tabaré Vázquez
Tabaré Ramón Vázquez Rosas is a former President of Uruguay. A physician by training, he is a member of the leftist Frente Amplo coalition . Vázquez was elected president on October 31, 2004, took office on March 1, 2005, and relinquished the office on March 1, 2010...

 in Uruguay (2004), Evo Morales
Evo Morales
Juan Evo Morales Ayma , popularly known as Evo , is a Bolivian politician and activist, currently serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party and the cocalero trade union...

 in Bolivia (2005)
Bolivian presidential election, 2005
The 2005 Bolivian presidential election was held on December 18, 2005. The two main candidates were Evo Morales of the Movement Towards Socialism Party, and Jorge Quiroga, leader of the Democratic and Social Power Party and former head of the Acción Democrática Nacionalista Party. Felipe Quispe,...

(re-elected with 64.22% of the vote in Bolivian general election, 2009
Bolivian general election, 2009
The Bolivian general election, 2009 was held on 6 December, 2009, following a constitutional referendum held on 25 January 2009. Voters elected:*President and Vice President of the Republic.*130 members of the Chamber of Deputies.*36 members of the Senate....

), Michelle Bachelet
Michelle Bachelet
Verónica Michelle Bachelet Jeria is a Social Democrat politician who was President of Chile from 11 March 2006 to 11 March 2010. She was the first woman president of her country...

 in Chile (2006), Daniel Ortega
Daniel Ortega
José Daniel Ortega Saavedra is a Nicaraguan politician and revolutionary, currently serving as the 83rd President of Nicaragua, a position that he has held since 2007. He previously served as the 79th President, between 1985 and 1990, and for much of his life, has been a leader in the Sandinista...

 in Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...

 (2006), Rafael Correa
Rafael Correa
Rafael Vicente Correa Delgado born is the President of the Republic of Ecuador and was the president pro tempore of the Union of South American Nations. An economist educated in Ecuador, Belgium and the United States, he was elected President in late 2006 and took office in January 2007...

 in Ecuador
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...

 (2007), Fernando Lugo
Fernando Lugo
Fernando Armindo Lugo Méndez is the current President of Paraguay and a former Roman Catholic bishop of the Diocese of San Pedro.-Early life:...

 in Paraguay
Paraguay
Paraguay , officially the Republic of Paraguay , is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the...

 (August 15, 2008), José Mujica
José Mujica
José Alberto "Pepe" Mujica Cordano is a Uruguayan politician and former guerrilla fighter, a member of the Broad Front and current President of Uruguay....

 in Uruguayan general election, 2009
Uruguayan general election, 2009
General elections for President and Parliament took place in Uruguay on 25 October and 29 November 2009. In parliamentary election results, the Broad Front emerged the winner, electing 16 senators and 50 deputies, while the National Party elected 9 senators and 30 deputies, the Colorado Party 5...

, and most recently Ollanta Humala
Ollanta Humala
Ollanta Moisés Humala Tasso is a Peruvian politician and the President of Peru. Humala, who previously served as an army officer, lost the presidential election in 2006 but won the 2011 presidential election in a run-off vote...

 in Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....

 (June 5, 2011). Although these leaders vary in their policies and attitude towards both Washington, D.C. and neoliberalism, while the states they govern also have different agendas and long-term historic tendencies, which can lead to rivalry and open contempt between themselves, they seem to have agreed on refusing the ALCA
Free Trade Area of the Americas
The Free Trade Area of the Americas , , ) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas but Cuba. In the last round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal...

 and on following a regional integration without the United States' overseeing the process. In particular, Chávez and Morales seem more disposed to ally together, while Kirchner and Lula, who has been criticized by the left-wing in Brazil, including by the Movimento dos Sem Terra
Landless Workers' Movement
Landless Workers' Movement is a social movement in Brazil; it is the second largest social movement in Latin America with an estimated 1.5 million landless members in 23 out of Brazil's 26 states. The MST states it carries out land reform in a country it sees as mired by unjust land distribution...

 (MST) landless peasants movement (who, however, did call to vote for him on his second term ), are seen as more centered. The state of Bolivia also has seen some friction with Brazil, while Chile has historically followed its own policy, distinct from other South American countries and closer to the United States. Thus, Nouriel Roubini
Nouriel Roubini
Nouriel Roubini is an American economist. He claims to have predicted both the collapse of the United States housing market and the worldwide recession which started in 2008. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics, an economic...

, professor of economics at New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...

, declared in a May 2006 interview:
"On one side, you have a number of administrations that are committed to moderate economic reform. On the other, you've had something of a backlash against the Washington Consensus [a set of liberal economic policies that Washington-based institutions urged Latin American countries to follow, including privatization, trade liberalization and fiscal discipline] and some emergence of populist leade"


In the same way, although a leader such as Chávez verbally attacked the George W. Bush administration
George W. Bush administration
The presidency of George W. Bush began on January 20, 2001, when he was inaugurated as the 43rd President of the United States of America. The oldest son of former president George H. W. Bush, George W...

 as much as the latter attacked him, and claims to be following a "democratic socialist" "Bolivarian Revolution
Bolivarian Revolution
The “Bolivarian Revolution” refers to a leftist social movement and political process in Venezuela led by Venezuelan president Hugo Chávez, the founder of the Fifth Republic Movement...

", the geo-political context
Geopolitics
Geopolitics, from Greek Γη and Πολιτική in broad terms, is a theory that describes the relation between politics and territory whether on local or international scale....

 has changed a lot since the 1970s. Larry Birns
Larry Birns
Larry Birns is the director of the Council on Hemispheric Affairs, a liberal, not-for-profit organization monitoring human rights and political developments in Latin America. Birns grew up in New York City and graduated from Columbia University, eventually doing postgraduate work in the social...

, director of the Council on Hemispheric Affairs
Council on Hemispheric Affairs
The Council on Hemispheric Affairs is a Washington, D.C.-based non-governmental organization founded in 1975. In its own words, it was established to "promote the common interests of the [Western] hemisphere, raise the visibility of regional affairs and increase the importance of the...

, thus stated:
"La Paz
La Paz
Nuestra Señora de La Paz is the administrative capital of Bolivia, as well as the departmental capital of the La Paz Department, and the second largest city in the country after Santa Cruz de la Sierra...

 has found itself at the economic and political nexus of the pink tide, linked by ideology to Caracas
Caracas
Caracas , officially Santiago de León de Caracas, is the capital and largest city of Venezuela; natives or residents are known as Caraquenians in English . It is located in the northern part of the country, following the contours of the narrow Caracas Valley on the Venezuelan coastal mountain range...

, but economically bound to Brasilia
Brasília
Brasília is the capital city of Brazil. The name is commonly spelled Brasilia in English. The city and its District are located in the Central-West region of the country, along a plateau known as Planalto Central. It has a population of about 2,557,000 as of the 2008 IBGE estimate, making it the...

 and Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...

. One thing that Morales knew, however, was that he couldn’t repudiate his campaign pledges to the electorate or deprive Bolivia of the revenue that is so urgently needed.

One sign of the US setback in the region has been the OEA 2005 Secretary General election. For the first time in the OEA's history, Washington's candidate was refused by the majority of countries, after two stale-mate between José Miguel Insulza
José Miguel Insulza
José Miguel Insulza Salinas is a Chilean politician and statesman. He is currently the Secretary General of the Organization of American States. He is nicknamed El Panzer, for his tank-like drive and reputation due to his ability to take political heat with little apparent damage...

, member of the Socialist Party of Chile
Socialist Party of Chile
The Socialist Party of Chile is a political party, that is part of the center-left Coalition of Parties for Democracy coalition. Its historical leader was the late President of Chile Salvador Allende Gossens, who was deposed by General Pinochet in 1973...

 (PS) and former Interior Minister of the latter country, and Luis Ernesto Derbez
Luis Ernesto Derbez
Luis Ernesto Derbez Bautista is a Mexican politician and current rector of the Universidad de Las Américas.Upon assuming power in December 2000, President Vicente Fox chose him to serve as his Secretary of Economy...

, member of the conservative National Action Party
National Action Party (Mexico)
The National Action Party , is one of the three main political parties in Mexico. The party's political platform is generally considered Centre-Right in the Mexican political spectrum. Since 2000, the President of Mexico has been a member of this party; both houses have PAN pluralities, but the...

 (PAN) and former Foreign Minister of Mexico. Derbez was explicitly supported by the US, Canada, Mexico, Belize, Saint Vincent and the Grenadines, Bolivia (then presided by Carlos Mesa
Carlos Mesa
Carlos Diego Mesa Gisbert is a Bolivian politician, historian and President of Bolivia from October 17, 2003 until his resignation on June 6, 2005....

), Costa Rica, El Salvador, Honduras and Nicaragua, while Chilean minister José Insulza was supported by all the Southern Cone
Southern Cone
Southern Cone is a geographic region composed of the southernmost areas of South America, south of the Tropic of Capricorn. Although geographically this includes part of Southern and Southeast of Brazil, in terms of political geography the Southern cone has traditionally comprised Argentina,...

 countries, as well as Brazil, Ecuador, Venezuela and the Dominican Republic. José Insulza was finally elected at the third turn, and took office on May 26, 2005.

Free trade and others regional integration

While the ALCA
Free Trade Area of the Americas
The Free Trade Area of the Americas , , ) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas but Cuba. In the last round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal...

 was abandoned after the 2005 Mar del Plata Summit of the Americas
Mar del Plata Summit of the Americas
The 4th Summit of the Americas was held at Mar del Plata, about southeast of Buenos Aires in Argentina, on November 4-5, 2005.This summit gathered together the leaders of all the countries of the American continent, except Cuba. Major security arrangements and massive popular protests against the...

, which saw protests against the venue of US President George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...

, including Argentine piquetero
Piquetero
A piquetero is a member of a political faction whose primary modus operandi is based in the piquete. The piquete is an action by which a group of people blocks a road or street with the purpose of demonstrating and calling attention over a particular issue or demand...

s, free trade agreements were not abandoned. Regional economic integration under the sign of neoliberalism continued: under the Bush administration
George W. Bush administration
The presidency of George W. Bush began on January 20, 2001, when he was inaugurated as the 43rd President of the United States of America. The oldest son of former president George H. W. Bush, George W...

, the United States, which had signed two free-trade agreements with Latin American countries, signed eight further agreements, reaching a total of ten such bilateral agreements (including the United States-Chile Free Trade Agreement in 2003, the Colombia Trade Promotion Agreement
Colombia Trade Promotion Agreement
The United States-Colombia Trade Promotion Agreement , is a bilateral free trade agreement between the United States and Colombia. Sometimes called the Colombia Free Trade Agreement, it was signed on November 22, 2006, by Deputy U.S...

 in 2006, etc.). Three others, including the Peru-United States Free Trade Agreement
Peru-United States Free Trade Agreement
The United States – Peru Trade Promotion Agreement is a bilateral free trade agreement, whose objectives are eliminating obstacles to trade, consolidating access to goods and services and fostering private investment in and between the United States and Peru...

 signed in 2006, are waiting for ratification by the US Congress.

The Cuzco Declaration, signed a few weeks before at the Third South American Summit, announced the foundation of the Union of South American Nations (Unasul-Unasur) grouping Mercosul countries and the Andean Community and which as the aim of eliminating tariffs for non-sensitive products by 2014 and sensitive products by 2019. On the other hand, the CAFTA-DR free-trade agreement (Dominican Republic–Central America Free Trade Agreement) was ratified by all countries except Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....

. The president of the latter country, Óscar Arias
Óscar Arias
Óscar Arias Sánchez is a Costa Rican politician who was President of Costa Rica from 2006 to 2010. He previously served as President from 1986 to 1990 and received the Nobel Peace Prize in 1987 for his efforts to end civil wars then raging in several other Central American countries.He is also a...

, member of the National Liberation Party and elected in February 2006, has pronounced himself in favor of the agreement. Canada, which also has a free-trade agreement with Costa Rica, has also been negotiating such an agreement with Central American country, named Canada Central American Free Trade Agreement
Canada Central American Free Trade Agreement
The Canada Central American Free Trade Agreement is a proposed free trade agreement between Canada and the Central American states of Guatemala, El Salvador, Honduras, and Nicaragua, collectively referred to as the CA4. Canada already has a bilateral FTA with Costa Rica.The U.S...

.

On the other hand, Chile, which has long followed a policy differing from that of its neighbours, has signed the Trans-Pacific Strategic Economic Partnership
Trans-Pacific Strategic Economic Partnership
The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider...

 (aka P4 free-trade agreement) with Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...

, New Zealand and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

. The P4 came into force in May 2006. All signatory countries are member of the Asia-Pacific Economic Cooperation
Asia-Pacific Economic Cooperation
Asia-Pacific Economic Cooperation is a forum for 21 Pacific Rim countries that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region...

 (APEC) forum. The United States will be joining the group as well.

Bilateral investment treaties

Apart from binational free-trade agreements, the US has also signed a number of bilateral investment treaties (BIT)
Bilateral Investment Treaty
A bilateral investment treaty is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state. This type of investment is called foreign direct investment . BITs are established through trade pacts...

 with Latin American countries, establishing the conditions of foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...

. These treaties include "fair and equitable treatment", protection from expropriation
Expropriation
Expropriation is the politically motivated and forceful confiscation and redistribution of private property outside the common law. Unlike eminent domain or laws regulating the foreign investment, expropriation takes place outside the common law and may be used to denote an armed robbery by...

, free transfer of means and full protection and security. Critics point out that US negotiators can control the pace, content and direction of bilateral negotiations with individual countries more easily than they can with larger negotiating frameworks.

In case of a disagreement between a multinational firm and a state over some kind of investment made in a Latin American country, the firm may depose a lawsuit before the ICSID
International Centre for Settlement of Investment Disputes
The International Centre for Settlement of Investment Disputes , an institution of the World Bank Group based in Washington, D.C., was established in 1966 pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States...

 (International Center for the Resolution of Investment Disputes), which is an international court depending on the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

. Such a lawsuit was deposed by the US-based multinational firm Bechtel
Bechtel
Bechtel Corporation is the largest engineering company in the United States, ranking as the 5th-largest privately owned company in the U.S...

 following its expulsion from Bolivia during the Cochabamba protests of 2000. Local population had demonstrated against the privatization of the water company, requested by the World Bank, after poor management of the water by Bechtel. Thereafter, Bechtel requested $50 millions from the Bolivian state in reparation. However, the firm finally decided to drop the case in 2006 after an international protest campaign.

Such BIT were passed between the US and numerous countries (the given date is not of signature but of entrance in force of the treaty): Argentina (1994), Bolivia (2001), Ecuador (1997), Grenada (1989), Honduras (2001), Jamaica (1997), Panama (1991, amended in 2001), Trinidad and Tobago (1996). Others where signed but not ratified: El Salvador (1999), Haiti (1983 – one of the earliest, preceded by Panama), Nicaragua (1995).

The ALBA

In reply to the ALCA, Chavez initiated the Bolivarian Alliance for the Americas (ALBA). Venezuela, Cuba and Bolivia signed the TCP (or People's Trade Agreement), while Venezuela, a main productor of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 and of petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

 (it is member of the OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...

) has signed treaties with Argentina, Brazil and Nicaragua, where Daniel Ortega
Daniel Ortega
José Daniel Ortega Saavedra is a Nicaraguan politician and revolutionary, currently serving as the 83rd President of Nicaragua, a position that he has held since 2007. He previously served as the 79th President, between 1985 and 1990, and for much of his life, has been a leader in the Sandinista...

, former leader of the Sandinistas, was elected in 2006
Nicaraguan general election, 2006
Nicaragua held a general election on 5 November 2006. The country's voters went to the polls to elect a new President of the Republic and 90 members of the National Assembly, all of whom will serve five-year terms...

 – Ortega, however, cut down his anti-imperialist and socialist discourse, and is hotly controversial; both on the right-wing and on the left-wing. Chávez also implemented the Petrocaribe
Petrocaribe
Petrocaribe S. A. is a Caribbean oil alliance with Venezuela to purchase oil on conditions of preferential payment. The alliance was launched in June 2005. The payment system allows for a few nations to buy oil on market value but only a certain amount is needed up front; the remainder can be paid...

 alliance, signed by 12 of the 15 members of the Caribbean Community
Caribbean Community
The Caribbean Community is an organisation of 15 Caribbean nations and dependencies. CARICOM's main purposes are to promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policy...

 in 2005. When Hurricane Katrina
Hurricane Katrina
Hurricane Katrina of the 2005 Atlantic hurricane season was a powerful Atlantic hurricane. It is the costliest natural disaster, as well as one of the five deadliest hurricanes, in the history of the United States. Among recorded Atlantic hurricanes, it was the sixth strongest overall...

 ravaged Florida and Louisiana, Chávez, who called the "North American Empire" a "paper tiger
Paper tiger
Paper tiger is a literal English translation of the Chinese phrase zhǐlǎohǔ , meaning something that seems as threatening as a tiger, but is really harmless. This Chinese colloquialism is similar to the English phrase "its bark is worse than its bite"....

", even ironically proposed to provide "oil-for-the-poor" to North-Americans after Hurricane Katrina
Hurricane Katrina
Hurricane Katrina of the 2005 Atlantic hurricane season was a powerful Atlantic hurricane. It is the costliest natural disaster, as well as one of the five deadliest hurricanes, in the history of the United States. Among recorded Atlantic hurricanes, it was the sixth strongest overall...

 the same year, through Citgo
Citgo
CITGO Petroleum Corporation is a United States-incorporated, Venezuela-owned refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. The company is owned by PDV America, Inc., an indirect wholly owned subsidiary of Petróleos de...

, a subsidiary of PDVSA the state-owned Venezuelan petroleum company, which has 14,000 gas stations and owns eight oil refineries in the US.

Another rift with the ALBA and the U.S. occurred when the former rejected claims of U.S. intervention in the December 9, 2008 Nicaraguan elections. A strong ALBA communiqué
Communique
A communiqué is a brief report or statement released by a public agency.Communiqué may also refer to:* Communiqué , a rock band* Communiqué , 1979* Communiqué , 1987...

 said: "We strongly reject the U.S. intervention in the internal issues of Nicaragua and we reaffirm that past elections are of exclusive competence of the Nicaraguan People and their institutions." Alba said in the communique published by the Venezuelan Foreign Ministry. President Daniel Ortega, as well as the FSLN, have given examples of democracy, when contending at elections during the 1980s and peacefully giving the government to there successors."

The U.S. military coalition in Iraq

In June 2003, some 1,200 troops from Dominican Republic
Dominican Republic
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...

, El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...

, Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...

, and Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...

 joined forces along with Spaniard forces (1,300 troops) to form the Plus Ultra Brigade
Plus Ultra Brigade
The Plus Ultra Brigade, or Brigada Hispanoamericana, was a military contingent of mixed personnel from Spain , the Dominican Republic, El Salvador, Honduras, and Nicaragua , which was commissioned to support coalition troops in the Iraq War. The deployment started in July 2003...

 in Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

. The Brigade was dissolved on April 2004 following the retirement of Spain from Iraq, and all Latin American nations, except El Salvador, withdrew their troops.

In September 2005, it was revealed that Triple Canopy, Inc.
Triple Canopy, Inc.
Triple Canopy, Inc., is a private company that provides integrated security, mission support and risk management services to corporate, government and non-profit clients. The firm was founded in May 2003 by U.S. Army Special Forces veterans, including former Delta Force personnel...

, a private military company
Private military company
A private military company or provides military and security services. These combatants are commonly known as mercenaries, though modern-day PMCs refer to their staff as security contractors, private military contractors or private security contractors, and refer to themselves as private military...

 present in Iraq, was training Latin American mercenaries in Lepaterique
Lepaterique
Lepaterique is a municipality in the Honduran department of Francisco Morazán.A military base located in Lepaterique was used during the 1980s by the Contras and by the Argentine 601 Intelligence Battalion, which was involved in Operation Condor....

 in Honduras. Lepaterique was a former training base for the Contras
Contras
The contras is a label given to the various rebel groups opposing Nicaragua's FSLN Sandinista Junta of National Reconstruction government following the July 1979 overthrow of Anastasio Somoza Debayle's dictatorship...

. 105 Chilean mercenaries were deported
Deportation
Deportation means the expulsion of a person or group of people from a place or country. Today it often refers to the expulsion of foreign nationals whereas the expulsion of nationals is called banishment, exile, or penal transportation...

 from the country. According to La Tribuna
La Tribuna
La Tribuna is a Honduran newspaper owned by ex-President Carlos Roberto Flores.-History:La Tribuna was founded on 9 December 1976 by lawyer, writer and journalist Oscar Armando Flores Midence. Subsequently Oscar's son, Carlos Roberto Flores, became president, chief executive officer, and publisher...

 Honduran newspaper, in one day in November, Your Solutions shipped 108 Hondurans, 88 Chileans and 16 Nicaraguans to Iraq. Approximatively 700 Peruvians, 250 Chileans and 320 Hondurans work in Baghdad's Green Zone for Triple Canopy, paid half price in comparison to North-American employees. The news also attracted attention in Chile, when it became known that retired military Marina Óscar Aspe worked for Triple Canopy. The latter had taken part to the assassination of Marcelo Barrios Andrade, a 21 years-old member of the FPMR, who is on the list of victims of the Rettig Report
Rettig Report
The Rettig Report, officially The National Commission for Truth and Reconciliation Report, is a 1991 report by a commission designated by then President Patricio Aylwin encompassing human rights abuses resulting in death or disappearance that occurred in Chile during the years of military rule...

 – while Marina Óscar Aspe is on the list of the 2001 Comisión Ética contra la Tortura (2001 Ethical Commission Against Torture). Triple Canopy also has a subsidiary in Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....

.

In July 2007, salvadoran president Antonio Saca
Antonio Saca
Elías Antonio Saca González is a Salvadoran politician and was the President of El Salvador. He was elected President in 2004 to serve a five-year term that ended in 2009....

 reduced the number of deployed troops in Iraq from 380, to 280 soldiers. Four salvadoran soldiers died in different situations since deployment in 2003, but on the bright side, more than 200 projects aimed to rebuild Iraq were completed.

Bolivia's nationalization of natural resources

The struggle for natural resources and the US defense of its commercial interests has not ceased a single instant since the zenith period of the Banana republic
Banana republic
In political science, the pejorative term Banana Republic denotes a politically unstable country dependent upon limited primary productions , which is ruled by a plutocracy, a small, self-elected, wealthy group who exploit the country by means of a politico-economic oligarchy...

s supported by the US. But the general context has changed a lot, and each country's approach has much evolved. Thus, the Bolivian Gas War
Bolivian Gas War
The Bolivian gas conflict was a social confrontation in Bolivia centering on the exploitation of the country's vast natural gas reserves. The expression can be extended to refer to the general conflict in Bolivia over the exploitation of gas resources, thus including the 2005 protests and the...

 in 2003–04 was sparked after projects by the Pacific LNG consortium to export natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 – Bolivia possessing the second largest natural gas reserves in South America after Venezuela – to California (Baja California
Baja California
Baja California officially Estado Libre y Soberano de Baja California is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is both the northernmost and westernmost state of Mexico. Before becoming a state in 1953, the area was known as the North...

 and US California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

) via Chile, resented in Bolivia since the War of the Pacific
War of the Pacific
The War of the Pacific took place in western South America from 1879 through 1883. Chile fought against Bolivia and Peru. Despite cooperation among the three nations in the war against Spain, disputes soon arose over the mineral-rich Peruvian provinces of Tarapaca, Tacna, and Arica, and the...

 (1879–1884) which deprived it of an access to the Pacific Ocean. The ALCA was also opposed during the demonstrations, headed by the Bolivian Workers' Center
Bolivian Workers' Center
The Bolivian Workers' Center is the chief trade union federation in Bolivia. It was founded in 1952 following the national revolution that brought the Revolutionary Nationalist Movement to power. The most important affiliate of the COB was the Union Federation of Bolivian Mine Workers...

 and Felipe Quispe
Felipe Quispe
Felipe Quispe Huanca "El Mallku" is an ethnic Aymara Bolivian political leader. He heads the Pachakuti Indigenous Movement and has also been general secretary of the United Union Confederation of Working Peasants of Bolivia...

's Indigenous Pachakuti Movement
Indigenous Pachakuti Movement
The Pachakuti Indigenous Movement is a left-wing indigenist political party in Bolivia founded in november 2000....

 (MIP). The US also opposed Chávez, quickly recognizing the government of Pedro Carmona
Pedro Carmona
Pedro Francisco Carmona Estanga is a former Venezuelan trade organization leader who was briefly declared President of Venezuela during an abortive 2002 military coup against Hugo Chávez. He occupied the office of President from April 12 to April 13...

 during the 2002 coup attempt
Venezuelan coup attempt of 2002
The Venezuelan coup attempt of 2002 was a failed coup d'état on 11 April 2002 that saw President Hugo Chávez ousted from office for 47 hours, being restored by a combination of military force and mass demonstration of popular support...

 which briefly overthrew him.

A proof of the new geopolitical context can be seen in Evo Morales
Evo Morales
Juan Evo Morales Ayma , popularly known as Evo , is a Bolivian politician and activist, currently serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party and the cocalero trade union...

' announcement, in concordance with his electoral promises, of the nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 of gas reserves, the second highest in South America after Venezuela. First of all, he carefully warned that they would not take the form of expropriation
Expropriation
Expropriation is the politically motivated and forceful confiscation and redistribution of private property outside the common law. Unlike eminent domain or laws regulating the foreign investment, expropriation takes place outside the common law and may be used to denote an armed robbery by...

s or confiscation
Confiscation
Confiscation, from the Latin confiscatio 'joining to the fiscus, i.e. transfer to the treasury' is a legal seizure without compensation by a government or other public authority...

s, maybe fearing a violent response. The nationalizations, which, according to Vice President Álvaro García
Álvaro García Linera
Álvaro Marcelo García Linera is a Bolivian politician who has been Vice President of Bolivia since 2006.-Biography:He was born in Cochabamba and graduated from San Agustín High School. Then, he studied at the National Autonomous University of Mexico in Mexico City and became a mathematician...

 are supposed to make the government's energy-related revenue jump to $780 million in the following year, expanding nearly sixfold from 2002, led to criticisms from Brazil, which Petrobras
Petrobras
Petróleo Brasileiro or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in Latin America by market capitalization and revenue, and the largest company headquartered in the Southern Hemisphere by market...

 company is one of the largest foreign investors in Bolivia, controlling 14% of the country's gas reserves. Bolivia is one of the poorest country in South America, and was heavily affected by protests in the 1980s-90s, largely due to the shock therapy
Shock therapy (economics)
In economics, shock therapy refers to the sudden release of price and currency controls, withdrawal of state subsidies, and immediate trade liberalization within a country, usually also including large scale privatization of previously public owned assets....

 enforced by previous governments, and also by resentment concerning the coca eradication
Coca eradication
Coca eradication is a controversial strategy strongly promoted by the United States government starting in 1961 as part of its "War on Drugs" to eliminate the cultivation of coca, a plant whose leaves are not only traditionally used by indigenous cultures but also, in modern society, in the...

 program – coca
Coca
Coca, Erythroxylum coca, is a plant in the family Erythroxylaceae, native to western South America. The plant plays a significant role in many traditional Andean cultures...

 is a traditional plant for the Native Quechua and Aymara people, who use it for therapeutical (against altitude sickness
Altitude sickness
Altitude sickness—also known as acute mountain sickness , altitude illness, hypobaropathy, or soroche—is a pathological effect of high altitude on humans, caused by acute exposure to low partial pressure of oxygen at high altitude...

) and cultural purposes. Thus, Brazil's Energy Minister, Silas Rondeau
Silas Rondeau
Silas Rondeau is a Brazilian politician, and a member of Brazilian Democratic Movement Party . He formerly served as Minister of Mines and Energy in Brazil President Lula's cabinet.-Allegations and resignation:...

, reacted to Morales' announcement by condemning the move as "unfriendly." According to Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...

, "Bolivia's actions echo what Venezuelan President Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...

, possibly Morales' biggest ally, did in the world's fifth-largest oil exporter with forced contract migrations and retroactive tax hikes – conditions that major oil companies largely agreed to accept." The Bolivian gas company YPFB
YPFB
Yacimientos Petrolíferos Fiscales Bolivianos is the state-owned petrol company of Bolivia.-History:YPFB was created in 1936 as a state-owned and run petrol company. During the first presidency of Gonzalo Sánchez de Lozada, capitalized oil companies were formed from YPFB properties under the...

, privatized by former President Gonzalo Sanchez de Losada, was to pay foreign companies for their services, offering about 50 percent of the value of production, although the decree indicated that companies exploiting the country's two largest gas fields would get just 18 percent. After initially hostile reactions, Repsol "expressed its willingness to cooperate with the Bolivian government, while Petrobras
Petrobras
Petróleo Brasileiro or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in Latin America by market capitalization and revenue, and the largest company headquartered in the Southern Hemisphere by market...

 retreated its call to cancel new investment in Bolivia. However, still according to Larry Birns
Larry Birns
Larry Birns is the director of the Council on Hemispheric Affairs, a liberal, not-for-profit organization monitoring human rights and political developments in Latin America. Birns grew up in New York City and graduated from Columbia University, eventually doing postgraduate work in the social...

, "The nationalization's high media profile could force the [US] State Department to take a tough approach to the region, even to the point of mobilizing the CIA and the U.S. military, but it is more likely to work its way by undermining the all-important chink in the armor – the Latin American armed forces."

See also


Binational relationships

  • Brazil – United States relations
  • Chile – United States relations
  • Colombia – United States relations
  • Cuba – United States relations
  • Ecuador – United States relations
  • Mexico – United States relations
  • United States – Venezuela relations

Further reading

  • Mellander, Gustavo A.; Nelly Maldonado Mellander (1999). Charles Edward Magoon: The Panama Years. Río Piedras, Puerto Rico: Editorial Plaza Mayor. ISBN 1563281554. OCLC 42970390.
  • Mellander, Gustavo A. (1971). The United States in Panamanian Politics: The Intriguing Formative Years. Danville, Ill.: Interstate Publishers. OCLC 138568.
  • When States Kill: Latin America, the U.S., and Technologies of Terror, ed. by Cecilia Menjivar and Nestor Rodriguez, University of Texas Press, 2005
  • Rodríguez Hernández, Saúl, La influencia de los Estados Unidos en el Ejército Colombiano, 1951–1959, Medellín, La Carreta, 2006, ISBN 958-97811-3-6.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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