Differential Effects of American Destabilization Policy in Chile in the 1970s and Cuba in the 1990s
Just three years after taking office in 1970, Chile’s military removed the leftist President Salvador Allende from power. In Cuba, nearly forty years after his ascension to power in 1959, Fidel Castro continues to control a communist regime. In Chile in the early 1970s and in Cuba in the early 1990s, the United States exasperated severe economic crises. In addition, the United States attempted to foster political opposition to create ‘coup climates’ to overthrow both leaders. The similarities in these histories end there. Chile’s open, democratic political system allowed the U.S. to polarize the nation, paving the way for Pinochet’s
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businesses created two thirds of the $1.6 in foreign investment, and two U.S. copper corporations alone controlled 80 percent of the Chilean copper industry. Under their destabilization strategy, the U.S. undertook economic measures designed to make the Chilean economy “scream.” The Nixon administration sought to terminate and reduce financing for U.S. exports and guarantees for corporate investment, lobby private investors to curb economic interests, bring “maximum feasible influence on the multilateral banks to cut their lending to Chile,” terminate bilateral economic aid programs, and dump U.S. copper holdings onto the international market, and lower prices. In addition to implementing direct economic measures, the Nixon administration also used its influence to affect the policies of international economic players. For example, “US officials worked behind the scenes to assure” that the World Bank denied 21 million livestock improvement credit and future loans to Chile. The U.S. also blocked negotiations, and putting pressure against Chile in the Paris Club debt negotiations regarding the $1 billion debt that the Frei government had run up in U.S. banks. In sum, these policies were effective. In 1970, loans to Chile were cut from $46 million to $2 million by the IDB, $31 million to $0 by thy World Bank, $110 million to $3 million in bilateral U.S. assistance by the AID, and $280 million to $0 by the Export-Import bank.
This significant
While the Cold War does not mark a significant distinction from US involvement in Latin America pre-Cold War, the inclusion of ideology in US foreign policy decisions did mark a change in attitudes and focus. While US policy can be described as rational to a certain point, the Cuban dilemma caused an irrational fear in US foreign policy makers to avoid a second-Cuba. The fear of a “second Cuba” can be seen in the various interventions by the US in Latin America during this period.
Castro’s involvement with the foreign and domestic politics during the early Cold War period greatly influenced the outcome of the Cuban Revolution. Without the actions taken by foreign powers like the United States and Russia, some events on the domestic front may have had very different results. It is important to understand how every nation’s foreign policies can influence more than just one other nation, and this was especially true for Cuba. It was this mix and chain of events which produced the communist Cuba that we are familiar with today.
In the United States, Nixon was in power and Nixon told his main advisor, Henry Kissinger that he wanted Allende out of power. Kissinger thought of only one way to get Allende out of power and it was to begin with the uprise of the Chilean military. Kissinger sent a cable to the CIA agents in Chile stating that the agents were to continue with their work on investigating the military coup. However, the twist was that the CIA agents was not necessary in Chile and three years later, the people of Chile are revolting against their leader. Allende nationalized copper and other industries, which froze prices and raised wages to try to stop the inflation but unfortunately, that only raised inflation more. With Allende’s reform in play, the CIA ran propaganda against Allende.
When Fidel Castro took over Cuba by means of a revolution, he quickly established his government as the first openly Communist government in the western hemisphere. He petitioned the Soviet Union for aid, which was cheerfully given him. These events went against our current policies, as well as the Monroe Doctrine, which established us as the police force of the western hemisphere. Ninety miles away from the greatest bastion of Capitalism was now residing its greatest foe. This tense situation was brought to a boiling point by the arrival of
Throughout the course of history, several authoritarian leaders have risen to power and maintained their acquired power through physical, violent means. Two authoritarian leaders that have transformed their acquired power into dictatorial rights are Fidel Castro of Cuba and Augusto Pinochet of Chile. Interestingly, Castro and Pinochet differed in their ideals about the ideal structure of governments. While Castro advocated for a socialist, Marxist, anti-imperialist Cuba, Pinochet favored a anti-Marxist, anti-socialist, capitalist Chile. Despite their differing ideals, both shared several similarities in their efforts to establish and maintain their power. Both individuals rose to power in a similar manner: a sort of coup d’état. Both individuals maintained power through positive and negative means. Castro and Pinochet introduced several economic reforms that mostly benefited the people of Cuba and Chile. While these economic reforms allowed for the financial freedom of many Cubans and Chileans, the dictatorial rulers politically repressed the residents of Cuba and Chile. While many historians believe that Castro and Pinochet greatly differed due to their opposing beliefs, both dictators share multiple similarities in the ways that they rose to power, negatively maintained power, and positively
This Extended Essay will examine how American domestic politics during the Nixon Administration influenced the role of the U.S and more specifically the C.I.A in their role in the Chilean coup of 1973. Throughout this paper connections will be drawn between various corporations which had a significant stake in Chile’s industry and economy before the coup occurred and their subsequent relationships with different members of the Nixon Administration or those in places of power such as the director of the C.I.A. This paper will document just how much was at stake for various companies, and what they stood to gain or lose from a significant regime change. Furthermore, just how the C.I.A and these American corporations waged an economic war on Chile’s economy will be examined. In addition, this paper will provide an analysis on just who stood to gain the most from a regime change, the American people winning a war against communism, or the multinational corporations whose businesses in Chile could be potentially nationalized. This paper will also examine the interdepartamental differences and rifts inside the Nixon Administration itself, and help clarify whether or not these differences were based upon an ideological difference or because of their roles in rival corporations. Overall this paper will provide a broad look at just how much these large multinational corporations had an affect upon the Nixon Administration, and how much an ideological sense of responsibility was
One of the most speculative experiences of conquest and dictatorship in the history of Latin America has been the socialist and dictatorial regimes in Chile. Chile has gone through multiple times of dictatorship, lead by the military, and also had lapses of a socialist government. The film “Machuca” by Andres Wood provided an insight of the series of social events in Chile in 1973, ranging from inter personal experiences to political issues and the Chilean nation. “Two dictators, Salvador Allende and Augusto Pinochet, both brought tremendous suffering upon the Chilean people -- one through his socialist policies and nationalization of
Pinochet was put into power . This is a perfect example of how the US foreign policy replaced genuine democracy with dictatorship for their own benefit, and again, supposedly in the name of National Security. Latin America was a victim of US foreign policy and corporate greed.
Cuba and the United States of America have completely opposite economies. Cuba’s economy is based on the few natural resources that the country owns while the economic system in The United States is capitalist and can be recognized for its noticeable development in agriculture, energy, and other resources that keep the country expanding and provides jobs as well as a good quality of life for its residents. On the other hand, Cuba’s economy, is predominantly poor, to the point where a very huge percent of its population suffers from
With Pinochet’s rejection of communist thinking he was able to obtain the backing of the United States which was a key difference in his ability to come to power in his country. This in comparison with Castro and the hard hand that the United States used to try to make crush Castro’s reign in Cuba. The United States was not happy that Chile had elected a well-known socialist into presidency and
The United States and the Soviet Union competed against each other during the Cold War in the second half of the 20th Century like a chess game, with the world as their chessboard and countries as pawns in their game. For the Russians, a critical part of the chessboard was Cuba and Latin America. The Russians believed that if they could align themselves with countries in the western hemisphere, America’s “backyard”, it would help the Soviet Union counter the strong political influence and military presence America had in Europe, which made the Russians feel threatened. The Soviet Union tried to align itself politically, militarily, and economically with as many Latin American countries as it could. In
However, the revolution, led by Fidel Castro, brought hope for those who supported the fight against the repressive government in the island, but it also brought a red signal of danger and fear of Cold War to other countries in America, especially for United States. Even though the revolutionary Fidel Castro was friend with the Soviet Union, Cuba never played a big role outside of the island. Nevertheless, United State anti-communism policy encouraged a violent anti-revolutionary reaction that spreader all over Latin America in the 60’s and 70’s.
This report will investigate and consider the significance of the 1973 Chilean genocide. It will also discuss the causes and consequences of General Augusto Pinochet's rise to power. The causes are Chile's economic troubles, the divide between left and right wing Chileans and America's support of his ideas. The consequences are the brutality and mass murder of part of a nation, the termination and end of democracy in Chile and failing to bring Pinochet to justice for what he caused. In 1973 democratically elected president and leader of Chile Salvador Allende was overthrown by the military under orders from General Augusto Pinochet. The General believed that the president was the cause of an economic breakdown America agreed with the views of General Augusto Pinochet and gave secret support to his group and also ended trade with the remaining Chile government to show their agreement. General Augusto Pinochet used these reasons in an attempt to justify his reconstruction of Chile and the overwhelming negative impact it had on the nation and its people.
To abandon the imperialistic idea that the United States of America used to justify its presence in Chile and ultimately regain its sovereignty as the leader, Salvador Allende, had to reconstruct a new Chilean identity that abandoned the national notion that Chile did “not possess a culture of their own” or wasn’t “literate” enough, to govern itself (Rivera 25). Inspired by Marxism, Allende led a socialist movement that would reshape the Chilean economy through the nationalization of major industries, as well as redistribute income through tax and land reform. Salvador Allende his rapid socialist movement became an ideological battle between socialism and capitalism. Due to Chile’s proximity to the USA, Chile had become a threat to American
In 1940 to 1944, communist Fulgencio Batista withheld power as the president of Cuba and then from 1952 to 1959, United States backed dictator until fleeing Cuba because of Fidel Castro’s 26th of July Movement. Socialist Fidel Castro governed the Republic of Cuba as Prime Minister from 1959 to 1976 and then as President from 1976 to 2008. Fidel Castro’s intent was to provide Cuba with an honest democratic government by diminishing the corrupt way in which the country was run, the large role the United States played in the running of Cuba as well as the poor treatment & the living conditions of the lower class.