Stephen G. Rabe
On March 13, 1961, President John F. Kennedy announced the Alliance for Progress, an economic assistance program to promote political democracy, economic growth, and social justice in Latin America. The United States and Latin American nations formally agreed to the alliance at a conference held in August 1961, at Punta del Este, Uruguay. U.S. delegates promised that Latin America would receive over twenty billion dollars in public and private capital from the United States and international lending authorities during the 1960s. The money would arrive in the form of grants, loans, and direct private investments. When combined with an expected eighty billion dollars in internal investment, this new money was projected to stimulate an economic growth rate of not less than 2.5 percent a year. This economic growth would facilitate significant improvements in employment, and in rates of infant mortality, life expectancy, and literacy rates. In agreeing to the alliance, Latin American leaders pledged to work for equality and social justice by promoting agrarian reform and progressive income taxes.
The Kennedy administration developed this so-called Marshall Plan for Latin America because it judged the region susceptible to social revolution and communism. Fidel Castro had transformed the Cuban Revolution into a strident anti-American movement and had allied his nation with the Soviet Union. U.S. officials feared that the lower classes of Latin America, mired in poverty and injustice, might follow similarly radical leaders.
Alliance programs delivered outside capital to the region, but the Alliance for Progress failed to transform Latin America. During the 1960s, Latin American economies performed poorly, usually falling below the 2.5 percent target. The region witnessed few improvements in health, education, or welfare. Latin American societies remained unfair and authoritarian. Sixteen extra-constitutional changes of government repeatedly unsettled the region.
The Alliance for Progress fell short of its goals for several reasons. Latin America had formidable obstacles to change: elites resisted land reform, equitable tax systems, and social programs; new credits often brought greater indebtedness rather than growth; and the Marshall Plan experience served as a poor guide to solving the problems of a region that was far different from Western Europe. The United States also acted ambiguously, calling for democratic progress and social justice, but worried that Communists would take advantage of the instability caused by progressive change. Further, Washington provided wholehearted support only to those Latin American governments and organizations that pursued fervent anticommunist policies.
Throughout the 1980s, Central America was wracked by conflict. El Salvador faced a guerrilla insurgency, Guatemala’s long conflict festered, and Nicaragua faced a continually escalating U.S.-led proxy war that used fighters, loosely referred to as the Contras, to wage war on the Nicaraguan government through cross-border raids that implicated Costa Rica and Honduras in persistent violations of sovereignty. The Treaty of Esquipulas, spearheaded by Costa Rican President Oscar Arias Sanchez, ended these conflicts and brought stability to the region.
The Treaty of Esquipulas stands as one of the most significant and understudied peace agreements of the late Cold War. These accords ran counter to the will of the more powerful United States, which throughout the 1980s had sought to use military force as the key to achieving regime change in Nicaragua. The United States policy of supporting guerrillas that waged a war of regime change in Nicaragua fanned the flames of conflict and destabilized the region. Esquipulas undermined this destructive policy. For the first time, the small nations of Central America, so long considered the imperial servants of the United States, thwarted an aggressive U.S. military policy. Through intense diplomatic meetings, and in the wake of the controversy that developed from the Iran–Contra scandal, President Arias of Costa Rica succeeded in creating a peace agreement for Central Americans and authored by Central Americans. The Esquipulas accords were a blanket repudiation of the near decade-long Contra war policy of the United States. Central America created diplomatic unity and facilitated a successful opposition to the military policy of its more powerful neighbor. This agreement was a great triumph of peace and diplomacy created in the face of what seemed like overwhelming odds.
Stephen W. Campbell
The Transatlantic Financial Crisis of 1837 produced a global depression that lasted until the mid-1840s. Falling cotton prices, a collapsing land bubble, and fiscal and monetary policies pursued by individual actors and financial institutions in the United States and Great Britain were all responsible. A comprehensive understanding of the panic must take into account the global movements of gold and silver that linked Mexico, China, the United States, and Great Britain in complex networks of credit and debt. In the United States, businesses, banks, and individuals declared bankruptcy; states defaulted on their debts; commodity prices dropped; credit instruments lost their value; and unemployment rose amid a general atmosphere of pessimism and an erosion of confidence. The severity of the panic prompted politicians and financial theorists to reevaluate their ideological assumptions regarding the proper role of governmental regulation in an economy. In a larger sense, the panic demonstrated how the expansion of slavery in the United States, British imperialism, financial speculation, and recurring cycles of boom and bust were emerging as defining features of modern capitalism.
Stephen J. C. Andes
Vatican foreign relations with Latin America comprise both bilateral diplomatic negotiations with states and the Holy See’s spiritual leadership of national Catholic Churches in the region. Apostolic nuncios—papal diplomatic representatives—are the principal intermediaries of Vatican foreign relations. Since the early 19th century, Vatican diplomacy has been the purview of the Papal Secretariat of State, the “foreign relations” branch of the Roman curia.
The beginning of modern Vatican foreign relations with Latin America should be dated to the Napoleonic wars in Europe and the movements for home rule in Spain’s colonies. From 1810–1820, the papacy stood unwavering in its defense of Spanish absolutist claims to the peninsula and to its colonies. Latin American Independence shattered Spanish Royal Patronage and left a legacy of regalism in the region, with which the ultramontane papacy of the 19th century would contend. The professionalization of the Vatican diplomatic corps (1889–1914) conformed papal diplomacy to the norms of the international state system, incrementally increasing the political and spiritual legitimacy of the Holy See after its loss of temporal power to the Italian state, sparking the so-called “Roman Question” (1870–1929).
During the interwar period, Vatican policy centered on concordats and Catholic Action, evincing both a pragmatic approach to diplomacy and a highly regimented and non-party political model of lay activism. Mexico’s Cristero Rebellion (1926–1929) represented the most strident conflict in the period, where Rome’s concordat/Catholic Action policy neither negotiated a durable modus vivendi nor managed to pacify radical lay Catholics until the 1940s. During the pontificate of Pius XII (1939–1958), a strident anti-communism marked the policy of the Holy See, aligning the Catholic Church in Latin America with conservatives and authoritarian leaders. After the Second Vatican Council (1962–1965), the policy of Ostpolitik guided diplomats towards rapprochement with communist and revolutionary states such as Cuba and Nicaragua.
The end of the Cold War temporized the relationship between progressive sectors in the Latin American Church, which had been influenced by Liberation Theology, and the Vatican under John Paul II (1978–2005). A “New Evangelization” campaign was heralded by Pope Benedict XVI (2005–2013). Argentine Jesuit and Cardinal Jorge Mario Bergoglio crafted many of the seminal documents for the New Evangelization. Bergoglio, elected Pope Francis in 2013, emphasized the socio-economic and the spiritual aspects of Vatican policy, bring issues of poverty, economic inequality, and justice to center stage, fostering a diplomacy of piccoli passi (small steps) and brokering improved relations between the United States and Cuba.