Preview

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Democratic and Economic Reforms

• Preview
• Main Idea / Reading Focus
• Return of Democracy
• Faces of History Violeta Chamorro
• Democracy in Mexico
• Quick Facts Mexico Then Mexico Now
• Market Reforms
• Map Poverty in Latin America
• Visual Study Guide / Quick Facts
• Video The Impact of NAFTA

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Democratic and Economic Reforms
Main Idea In the 1980s, repressive regimes in
Latin America fell, and more moderate elected
leaders brought some measure of political and
economic progress.

• Reading Focus
• How did democracy return to Latin America?
• How has democracy in Mexico changed in recent
  years?
• What have been the results of market reforms in
  Latin America?

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Return of Democracy
After decades, dictatorships across Latin America
started falling in the 1980s and 1990s. Moderate
civilian politicians put an end to military rule,
and began a series of political and economic
reforms.
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• A Peaceful Transition
• Despite history of violence, return of democracy
  fairly peaceful
• Combination of internal, external forces applied
  pressure for reform
• International lenders demanded changes in way
  countries governed as a condition for receiving
  loans

• Voting Rights
• Pro-democracy groups called for countries to
  restore voting rights, allow political opposition
• Military leaders relaxed restrictions, integrated
  limited freedoms
• Given a chance to vote, people did
• Voted out military, voted in new civilian
  governments

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Return of Democracy

• New civilian governments
• Democracy returned in Brazil, early 1970s
• Argentina returned to democracy after Falklands
  War, 1982
• Central American countries
• Returned to relative calm 1980s, 1990s
• Elected moderate governments like that of Violeta
  Chamorro in Nicaragua
• Chile
• Enjoyed more economic success than most of region
• Pinochet regime fell, 1990

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Identify Cause and Effect What factors brought
about the return of democracy in Latin America?
Answer(s) severe social and economic problems
new requirements for reform from IMF and other
leaders in order to obtain loans pro-democracy
groups
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Democracy in Mexico
Mexicos path to democracy was very different
from other countries in the region.
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Democracy in Mexico
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Democracy in Mexico
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Democracy in Mexico

• A New Era
• 1997, opposition parties won seats in congress
• 2000, voters ended 71 years of PRI rule
• Elected conservative PAN party member Vicente Fox
  president

• Challenges
• Had to create functioning government, stable
  economy
• Worked to end Chiapas uprising, end corruption,
  improve relations with U.S.
• Made progress on most goals

• 2006
• Strained U.S.-Mexico relations on reform of
  immigration laws, border security
• Mexico maintained commitment to democracy with
  2006 elections
• Conservative PAN party member Felipe Calderón won
  extremely close race

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Find the Main Idea In what way was Mexico not
very democratic until 2000?
Answer(s) One party ruled the government for
over 70 years.
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Market Reforms

• Economic Changes
• Shift to democracy from Mexico to Argentina
  brought economic changes
• Western banks pressured countries into reform
  measures

• Reforms
• Drastically cut government spending
• End some government subsidies of businesses

• Reforms
• Sell government services to private enterprise
• Return inefficient government-controlled
  businesses to private ownership

• Reforms
• Strengthen regional trade agreements, establish
  new ones
• Measures intended to reduce inflation, expand
  imports

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Results of Market Reforms

• Mixed Results
• Many countries experienced economic growth,
  stability, others suffered
• Brazils inflation fell from quadruple digits to
  less than 7 percent by 2006
• Chiles reforms cut poverty rate in half between
  1990 and 2003
• Business owners celebrated economic changes
• Bankers, international lenders loaned billions
  for increased economic development in Latin
  America

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Results of Market Reforms

• Argentinas currency devalued
• Banks failed, unemployment rate reached more than
  20 percent
• Even many middle-class struggled to buy basic
  necessities
• Economy stabilized by end of 2003

• No positive effects
• Even where market reforms benefited national
  economies, many people did not feel positive
  effects
• Poverty still widespread in Latin America, gap
  between rich and poor wider

• Supporters
• Supporters of market reforms say reforms have not
  gone far enough
• Key elements of reform, laws to protect property
  rights, business contracts, have not been made
  political corruption still affects Latin American
  business

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Reactions to Market Reforms
Dissatisfaction with economic problems and
governments inability to solve them has led to
more political and economic shifts in the region.
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Make Generalizations How have people in Latin
America reacted to market reforms in recent
years?
Answer(s) by electing leftist-leaning
governments or those who are sympathetic to the
plight of the poor
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VideoThe Impact of NAFTA
Click above to play the video.