Latin America: A backward sub-continent dominated by American capital

LATIN America is in an explosive stage of development. Within the next few years great events will take place in that part of the world which will either take it forward in a struggle against imperialism or throw its people back into apathy and hopelessness for a generation.

Latin America is made up of 20 countries, only three of which have a population of more than 20 million people. Five have less than 2 million.

This artificial division of a continent is the heritage of Spanish and Portuguese colonialism. It helps to hold back development and leave the separate states prostrate before American domination, from which only Cuba has so far, in any way, disentangled itself.

Peasants

These countries remain predominantly backward producers of primary products. The peasants form the majority of the population —a population which is increasing more rapidly than in any other part of the world.

Foreign — mostly American -capital has developed those parts of the economy which produce commodities for sale in the world market.

Following this a local class of capitalists has emerged which is partly subordinate to foreign capital yet chafes under its domination. Even sectors such as retail trade and distribution are now being brought under the big corporations of the United States.

Consolations

Of the total population-220 million—about 150 million are illiterate. The mass of the people live in abject poverty and may have given up all hope of improvement, surrendering themselves to the consolations of cheap drugs, alcohol and religious fervour.

With industrial and commercial activity expanding in the cities, millions are flocking from the countryside into the slums and shanty towns, which spring up side-by-side with the skyscrapers, luxury hotels and night clubs.

Poverty is scattered throughout the countryside and concentrated in the poor quarters of the towns.

In Latin America there are not only the most degrading examples of humanity but, in contrast, some of the richest men in the world.

Corruption is rife in both politics and business. Some of the smaller states are controlled by the big American concerns like the notorious United Fruit Company and are no more than ast plantations serving the nited States market for tropical uit.

Throughout the continent foreign capital plunders the natural resources with the help of corrupt local politicians.

The Latin American countries have one thing in common— their dependence upon the sale of one or two main exports in the world market. Foreign trade is dominated by the United States, and some European countries, including Britain and West Germany.

Alliance

Commodity prices have been on the decline in recent years. As a result the much-vaunted United States aid, including that offered by the Alliance For Progress, has not prevented wages from falling in South America.

At the same time. big profits are being made by the United States corporations, enabling them to extend their control over the richest sectors of the economy.

Behind a facade of concern for development, welfare and inter-American unity, the United States government policy is really designed to protect investments and profits.

Since these countries are all formally independent, the United States government operates through various methods of indirect control. It finds support from the most amenable sections of the ruling class, however oppressive.

However, where the people have overthrown an oppressive government, the US may shift its support to reformist governments if they should prove docile enough.

This was the outcome Bolivian revolution.

Commenting on this a recent historian of Latin America writes that American diplomats became convinced that if the social revolution failed through lack of finances - which appeared likely at that time-it would be followed by chaos and communism.

'Aid' So, to the astonishment of the MNR (revolutionary movement) and others, the Us government launched an extensive programme of economic aid.* Bolivia thus became a client state of the US imperialism.

In some cases the United States supports bloody control and corrupt dictators, in others it backs reformist leaders and movements.

A major factor in * Pendle—'A History of Latin America', pp. 210-211. port has been military aid. In Latin America the army plays a vital role in internal politics.

The military chiefs, who are kept supplied with US cast-off arms, assisted in training by US advisors and military schools and given dollar subsidies, are the inspired directors of counterrevolution.

When reformists go too far, as in Brazil recently, the military, with United States approval, goes in to avert trouble® Subsidies At the same time US secret police and intelligence men honeycomb the continent with the same purpose in view. Lavish subsidies gush out for newspapers, magazines, broadcasting stations and churches.

Much is at stake for United States capitalism in Latin America. So far, however, efforts to stabilise the situation have had little success.

In all parts of South America an economic crisis is building up. Even where industrialisation has taken place it has been limited in its effects and has been accompanied by a worsening of social conditions fol large numbers of people.

The social systems of these countries are in decay. The ruling class are corrupt and discredited. Millions are looking for a new solution.

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