Great Depression in Latin America
Encyclopedia
The Great Depression which followed the US stock market crash of 1929
badly affected the countries of Latin America
. Before the global Great Depression
of the 1930s, links between the United States
economy and Latin America
n economies had been established through US investment
in Latin America and Latin American exports to the US. As a result, Latin Americans felt heavy reverberations when the US market crashed in 1929. Chile
, Peru
, and Bolivia
were, according to a League of Nations
report, the countries worst-hit by the Great Depression. The rise of fascism also became apparent in Latin American countries in the 1930s due to the Great Depression. In particular, Getúlio Vargas
of Brazil
was a staunch supporter of the fascist movement and imitated the Italian government. Fascist governments were the result of a desire for nationalism, which rulers like Vargas played on through propaganda.
The Great Depression also lead to the beginning of the industrialization process in Brazil, as the country needed an economic alternative to the highly devalued coffee
, Brazil's main commodity
at the time. The Vargas
government started to purchase and burn coffee from the farmers, in order to avoid their complete bankruptcy.
Wall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
badly affected the countries of Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
. Before the global Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
of the 1930s, links between the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economy and Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
n economies had been established through US investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
in Latin America and Latin American exports to the US. As a result, Latin Americans felt heavy reverberations when the US market crashed in 1929. 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...
, 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....
, and 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...
were, according to a League of Nations
League of Nations
The League of Nations was an intergovernmental organization founded as a result of the Paris Peace Conference that ended the First World War. It was the first permanent international organization whose principal mission was to maintain world peace...
report, the countries worst-hit by the Great Depression. The rise of fascism also became apparent in Latin American countries in the 1930s due to the Great Depression. In particular, Getúlio Vargas
Getúlio Vargas
Getúlio Dornelles Vargas served as President of Brazil, first as dictator, from 1930 to 1945, and in a democratically elected term from 1951 until his suicide in 1954. Vargas led Brazil for 18 years, the most for any President, and second in Brazilian history to Emperor Pedro II...
of Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
was a staunch supporter of the fascist movement and imitated the Italian government. Fascist governments were the result of a desire for nationalism, which rulers like Vargas played on through propaganda.
The Great Depression also lead to the beginning of the industrialization process in Brazil, as the country needed an economic alternative to the highly devalued coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, Brazil's main commodity
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
at the time. The Vargas
Getúlio Vargas
Getúlio Dornelles Vargas served as President of Brazil, first as dictator, from 1930 to 1945, and in a democratically elected term from 1951 until his suicide in 1954. Vargas led Brazil for 18 years, the most for any President, and second in Brazilian history to Emperor Pedro II...
government started to purchase and burn coffee from the farmers, in order to avoid their complete bankruptcy.