4.2 U.S. Economic and Military Interventions

U.S. economic and military interventions in Latin America from 1880-1930 shaped the region's politics and economies. The U.S. used various strategies like Dollar Diplomacy and Gunboat Diplomacy to protect its interests and expand influence.

These interventions often supported U.S. corporate interests, creating "banana republics" in Central America. The United Fruit Company's power in these countries exemplified the complex relationship between U.S. businesses and Latin American governments.

U.S. Foreign Policy Doctrines

Economic and Military Strategies

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• Dollar Diplomacy aimed to promote U.S. economic interests abroad by encouraging investment of U.S. capital in foreign countries, particularly in Latin America and East Asia (China)
• Gunboat Diplomacy involved the use or threat of naval force to pressure foreign governments to act in ways favorable to U.S. interests
  • Demonstrated U.S. willingness to use military power to protect its economic and political interests overseas
• Big Stick Policy, associated with President Theodore Roosevelt, combined military force with diplomatic negotiations to assert U.S. dominance in the Western Hemisphere

Roosevelt Corollary

• Roosevelt Corollary to the Monroe Doctrine asserted the U.S. right to intervene in Latin American countries to maintain economic and political stability
  • Justified U.S. intervention in countries that were unable to pay their international debts or were experiencing chronic instability
• Expanded the scope of the Monroe Doctrine, which had previously focused on preventing European colonization in the Americas, to include U.S. intervention in the domestic affairs of Latin American nations

U.S. Corporate Interests

Banana Republics

• Banana Republics referred to Central American countries (Honduras, Guatemala) whose economies were dominated by U.S. fruit companies and whose governments were often influenced by these companies
• Term highlighted the economic and political power wielded by U.S. corporations in these countries and the resulting lack of autonomy and self-determination for the local populations

United Fruit Company

• United Fruit Company (UFC) was a prominent U.S. corporation that controlled vast tracts of land in Central America for banana production
  • Owned and operated plantations, railroads, and ports, effectively controlling the economic infrastructure of several countries
• UFC's influence extended to the political sphere, as it often intervened in local politics to protect its interests and maintain favorable business conditions

U.S. Military Interventions

Central America and the Caribbean

• Nicaraguan Occupation (1912-1933) began with U.S. military support for the conservative government against a liberal rebellion and evolved into a prolonged U.S. presence to protect American economic interests and maintain political stability
• Haitian Occupation (1915-1934) was justified by the U.S. as necessary to restore order after a period of political instability and protect American business interests
  • U.S. took control of Haiti's finances, rewrote its constitution, and established a Haitian military under U.S. control
• Dominican Republic Intervention (1916-1924) was a U.S. military occupation in response to political instability and to protect American economic interests, particularly sugar plantations

Mexican Revolution

• Mexican Revolution (1910-1920) was a complex civil war that involved various factions fighting for political, economic, and social reforms
• U.S. intervened militarily in the conflict on several occasions, including the occupation of Veracruz in 1914 and the Pancho Villa Expedition in 1916-1917
  • Interventions were driven by concerns over the safety of American citizens and property in Mexico, as well as the potential spread of revolutionary ideologies