South America’s Governments and Economies
Modern Brazil
Today Brazil is a democratic republic in which people elect a president and other leaders. In Brazil, voting iscompulsory. This means that citizens have no choice in deciding whether or not to vote. People from ages 18 to 70 are required by law to vote.
Because Brazil has a high number of well-supported political parties, coalition governments are common. A coalition government is one in which several political parties cooperate to do the work of government. In 2003 a democratically elected president replaced another democratically elected president for the first time in more than 40 years. In 2010 voters elected DilmaVanaRousseff as the thirty-sixth president of Brazil. She is the first woman president in the country’s history.
Watch the video in chapter 8 lesson 3
How does president Luis Inacio da Silva describe himself?
What does Elke Batista say about president Luis da Silva?
What did Luis Inacio da Silva improve for his people?
Tropical North of South America
What challenges do the countries of the Tropical North face?
Many people who live in the Tropical North are poor, although natural resources in the region are plentiful. For generations, those resources have mostly benefited only a wealthy few. This situation has created tensions within and between countries.
Trade Relations
Many South American leaders believe that one way to strengthen their countries’ economies is to expand trade. In 2008 the countries in the Tropical North joined with the rest of South America to form the Union of South American Nations (UNASUR). One of the organization’s goals is endingtariffs—taxes on imported goods—on trade between member nations. Another goal is adopting a uniform currency, similar to the euro.
A Northern Neighbor
Another challenge is improving the region’s relationship with the United States. The relationship has sometimes been rocky in the past, as when the United States helped Panama gain independence from Colombia in the early 1900s. Relations between the United States and Colombia have improved greatly. The United States and the Colombian government are working together to stop the flow of illegal drugs.
Challenges in Venezuela
In 1998 Venezuelans elected Hugo Chavez, a former military leader, as president. Chavez frequently criticized the United States and became friendly with anti-U.S. governments in Cuba and Iran.
After his election, Chavez promised to use Venezuela’s oil income to improve conditions for the country’s poor. Among other actions that angered U.S. leaders, in 2009 he seized control of U.S. companies that were developing oil resources in Venezuela. His strong rule split Venezuela into opposing groups. Working-class people supported Chavez, but middle-class and wealthy Venezuelans opposed his policies.
Struggles in Colombia and Ecuador
Colombia has undergone a long and bitter struggle between the country’s government and a Colombian organization called the Revolutionary Armed Forces of Colombia (FARC). One of FARC’s goals is to curtail the role of foreign governments and businesses in Colombia’s affairs. Another goal is to provide help and support for the nation’s poor farmers. FARC is funded through various means, including the production and sale of illegal drugs.
In Ecuador, indigenous peoples protested for rights and blamed President Rafael Correa for not keeping his promises. Correa had promised to rewrite Ecuador’s constitution. Among other things, he pledged to extend the rights of the people. Disappointed when Correa did not act, indigenous peoples organized to win rights for access to land, basic services, and political representation.
Watch the video in chapter 9 lesson 2
What did President Hugo Chavez promise the poor people of Venezuela?
History of the Regionin the Modern Era
What challenges did the countries of the region face in the late 1800s and 1900s?
The Andean and midlatitude countries continued to face challenges during the late 1800s and 1900s. With military backing, dictators seized power, and they ignored democratic constitutions. Economies were still dependent on outside powers.
Economic Challenges
The countries of the region faced economic challenges. Among the challenges were developing and controlling resources, building roads and railroads, and establishing trade links. Before independence, the countries of the region depended economically on Spain and Brazil. After independence, the economies of the region remained tied to countries outside South America.
Rapidly industrializing countries in Europe exploited the region for its raw materials. Wealthy landowners, cattle grazers, and mining operators refused to surrender their ties to European investors. Beginning in the early 1900s, large U.S. and Europeanmultinationalfirms—companies that do business in several countries—started mining and smelting operations in the region. As the economies expanded, profits grew for wealthy landowners and multinational companies. But many workers and farmers and their families remained mired in poverty.
Political Instability
Economic woes led to calls for reform. Political leaders promised changes for the better. In 1946 Argentinians elected General Juan Perón as the nation’s president. Perón and his wife, Eva, were popular with the people. The new government enacted economic reforms to benefit the working people. However, the Perón government limited free speech, censored the press, and added to the country’s debt. After Perón was overthrown in 1955, the military government ruled Argentina.The new government moved to put an end to unrest. The rulers imprisoned thousands of people without trial. Some were tortured or killed. Others simply “disappeared.” Argentina was also troubled by conflict over the Falkland Islands. Argentina and Great Britain both claimed the Falklands. After a brief war in 1982, Argentina was defeated, and the Falklands remain a British territory
Chile
Significant changes were also taking place in the country of Chile. In the presidential election of 1970, Chileans elected a socialist candidate named Salvador Allende. Allende took action to redistribute wealth and land. The government took over Chile’s copper industry and banking system. Allende’s economic reforms were popular with workers but angered the upper classes. In 1973 Chilean military officers staged acoup, an illegal seizure of power, and killed Allende. A military dictatorship, headed by General Augusto Pinochet, ruled Chile for the next 16 years.
Movements for Change
In recent years, democracies have replaced dictatorships. Yet the countries in the region are still struggling to end corruption in government, shrink the gap between rich and poor, provide jobs, and protect human rights.
Voters also have elected new leaders. In 2005 Bolivians elected Evo Morales, the country’s first indigenous president. Morales introduced a new constitution and land reforms, brought industries under government ownership, and moved to limit U.S. corporate involvement in the country’s politics. In 2006 Chileans elected the country’s first female president, Michelle Bachelet. A year later, Cristina Fernández de Kirchner became Argentina’s first elected female president. Both female leaders started efforts to improve human rights and equal opportunity.
Ongoing IssuesHow are economic and environmental issues affecting the region?
The population growth rate in the Andean and midlatitude countries is generally not high. However, population is growing enough in some places to add to today’s challenges of earning a living.
Earning a Living
It is difficult to build strong economies in the Andean region largely because of the rugged terrain. Many countries rely heavily on agriculture, which is limited and difficult in the mountains. About one-third of Peruvians, for example, are farmers. They grow potatoes, coffee, and corn on terraces built into the mountain slopes. Farms in the valleys along the coast produce sugarcane, asparagus, mangoes, and many other crops.
Mining and fishing are other important economic activities in Peru. Mines in the mountains produce silver, zinc, copper, and other minerals. Peru also produces oil and natural gas. The country’s coastal waters are rich fishing grounds. Much of the fish catch is ground into fishmeal for animal feed and fertilizer.
Save
Management of natural resources presents many important issues and challenges. An example is conflict between countries over gas reserves. Bolivia has the second-largest reserve of natural gas in Latin America. Bolivia is landlocked. So, to export the gas, it must move through Peru or Chile.
In 2003 the Bolivian government proposed moving the natural gas through Chile, because it would be cheaper than an alternate plan to go through Peru. The Bolivian people turned out in huge numbers to protest. In Bolivia, suspicion and anger against Chile are widespread. These feelings date back to the Pacific War of the early 1880s, when Chile took over Bolivia’s former coastal lands.
As the economies in the region develop, the primary economic activities of agriculture, mining, and fishing remain important. Other activities have become important as well. About 20 percent of the workers in the region are employed in the secondary, or manufacturing, sector. They work in factories making products. About 65 percent find jobs in the tertiary, or services, sector. They work in a wide variety of occupations, ranging from transportation and retail sales to banking and education.
Transportation and Trade
This region has many geographic and regional barriers. The Andes limit construction of roads and railroads. Yet highways do link large cities. The Pan-American Highway, for example, runs from Argentina to Panama, then continues northward after a break in the highway. A trans-Andean highway connects cities in Chile and Argentina. Peru and Brazil are building the Transoceanic Highway. Parts of it opened in 2012. Eventually, this road will link Amazon River ports in Brazil with Peruvian ports on the Pacific Ocean. Unlike other countries, Argentina has an effective railway system.
Trade also connects countries. In 1991 a trade agreement, known as MERCOSUR, was signed by Argentina, Paraguay, Uruguay, and Brazil. In 2011 MERCOSUR merged into a new organization—the Union of South American Nations (UNASUR). The Union set up an economic and political zone modeled after the European Union (EU). Its goals are to foster free trade and closer political unity.
Addressing Challenges
Looking toward the future, the Andean and midlatitude countries must address many challenges. Environmental issues are among the most important. Air and water pollution is a major problem, especially in the shantytowns of urban areas, where the lack of sewage systems and garbage collection increases disease.
Disputed borders have presented challenges for years. For example, Bolivia and Paraguay long disputed rights to a region thought to be rich in oil. In 1998 Peru and Ecuador finally settled a territorial dispute after years of tensions marked by episodes of armed conflict. Border wars use up resources of people, money, time, and brainpower that could be used to address economic development and environmental concerns.
Watch the video chapter 10 lesson 3
What natural resource has become valuable due to what new technology?