United States Economic and Foreign Policies Towards Latin America Essay Example for Free

get together States scotch and Foreign Policies Towards Latin the States Essayjoined States and Latin the States need each new(prenominal) by the virtue of sharing common boundary so the spl stopping pointor of the stinting policies which favor these countries for mutual benefit. Latin the States is one of the unite State merc tip overise market, for prototype in 1992 export exceeded $ 100 trillion to this region . According to Fryer 1993, Latin the Statesn stinting association with joined States resulted to negative effect. Latin the States eternal debts in 1992 was approximately $330 billion get together States lending institution getting the largest amount of monthly servicing of this debt about 2 pct . This resulted to Latin the Statesn contributing to deficit in the coupled State budget consequently the importance of better economical and external policy for mutual benefit . Latin America out-of-pocket to it geographical position to join States is inextricabl y dependent on the United States miserliness and on the other hand United States rescue benefit a lot from trade. After accusation of neglect of Latin America, United States authorities have changed tune time of mothy war perception that Latin America was a threat to an crucial economic partner .United States and Latin America have been having historical imbalances economically and in foreign policies. Overtime, policies to change this trend have been put in place due to identification that these countries are important to United States equally like northern partners (Vasquez). This means, policies favoring healthy relationship designed by United States would help in ensuring these countries enjoy mutual benefit. To Latin American, Economic and foreign policies are important since they are dependent of the United States economy.If the economic well being of United States is affected for example by recession this duplicates to their economies. Relationship of most government fro m south and United States economic policies has been unhealthy characterized by inverse to various policies. In the history, Latin countries foreign policies have been designed in opposition to the United States policies . This is due to United States authorities trying to interfere and meddling with the internal affair of these countries.A good example to this is the influence which Russia was able to influence most of the Latin Government to adopt communism policies against United States capitalist economy policies. According to Rabe 1988, Latin Americans in history have bitter to various United States policies mostly economic and foreign. A good example to this argument is the episode which transpired to Vice President Nixon being stoned in May 1958 in his tour to South America in attempt to smug confidence on foreign and economic policies .This was under leadership of Eisenhower and his foreign and economic policies of anti-communism. In 50s and 60s, Southern economy was ontog enesis in a sluggish manner since price of produce from these countries continued to decay yet United State imported 70 percent of their produce . United States showed no inte anticipate in stabilize prices making Latin American countries to suffer economically. This made the socialism ideology to take centre branch in the policies of most of Latin American country protesting against U. S economic and foreign policies.This resulted to counter policies by United States against the communism and economic sanction which harmed economic status of southern countries. This trend continued to the rimed war period until fall of Soviet Union and it communism policies. Current foreign and economic policies toward Latin America have been designed to amend bitter past relationship and forge for healthy foreign and economic policies for mutual benefit. There has been a major progress since the collapse of the Berlin wall in 1989, hence falls of Soviet union resulting to change of various admi nistrative policies in South America.From 1990, Latin America has experienced major changes which include giving way to democratic governance, adoption of free market economy model, regulating on protectionism policies, giving way to privatization and adjusting on their trade regime. This gave way to future relationship of United States which was initially forged by former President George Bush, under Enterprise for the Americas Initiative umbrella. This was marking end to U. S. cold-blooded war policies which were obstacle to social, political and economic progress in Latin America countries .United States foreign policies employed to third world countries since cold war period are confrontation or engagement. Allies of U. S. have been subjected to engagement policy which meant that, they would get economic and military support. On the other hand, they were expect to adopt an environment favorable to United States policies . On the Latin America, United State has been persuading L atin American countries toward the policy of engagement without a major success hence subjecting these countries to U. S foreign policy of confrontation. insurance policy of confrontation was employed to countries against U.S policies of capitalism and interests. United States use it economic, military as well as political mighty to convert countries to support their interests during cold war period. This policy was employed to Latin America although in most instances it failed . Turn around of the U. S relationship with Latin America has resulted to Latin countries comprehend American economic policies. For example Mexico has been in fore front of Latin America region in ditching inefficient protectionism polices, adopting privatization, debt reduction and foreign investment all which are under United States economic policies for south.United States economic policies have shown major effect in Mexico with North American Free Trade treaty (NAFTA) helping this country to economic reformation. Mexico approval by NAFT is a major test for post cold war relationship among Latin American countries and success of failure having a direct impact to rest of the Southerners . United States economic policies on free trade advised to be employed in Latin America and in operation in Mexico does not automatic translates to a well-distributed economic growth overnight.Also, it does not convert ailing economies as it is purported to be. Latin American economy is comprised of very little wealthy line of people consisting of ruling elite. Their middle categories of people consist of very few individuals with the majority of the population musical accompaniment in poverty like any other third world countries . United States trying to duplicating its economic policies to Latin America may be misplaced due to the fact that if wealth distribution complex body part is different from that of third world countries.This gets us to quagmire of whether the economic policies advance d(a) by Unites States to Latin America can reduce current economic loss . Some scholars have for argued that the policy of laissez faire capitalism results to bulky gap between poor and rich in the community, questioning rationality of employing it in Latin America . There is a contradiction of capitalism and socialist theory not able to give the office solve to the eradication of poverty in the third world countries economies. Communism tried to employed stem of supporting every one towards equality by ignored the human fundamental drive i.e. inducement system which have been key to economic growth under capitalism economic policies . On the other hand, capitalism policies and liberalization of the economy which a key economic policies advanced by U. S. to Latin America may fail. For example opening up market by Australian Authority resulted to loss of avocation and fall of production welkin resulting to increased imports against export. This gets to the question whether th is may duplicate to the economies of Latin America countries since encase of western capitalism contains it own contradiction.Various studies indicate that unregulated markets lead to economic exploitation and injustice which may be experience in Latin American after adopting U. S. economic policies. If the economic policies advanced by United States to Latin America fail, bitter rivalry which has been in existence before the cold war might escalate again and blame game of United States sabotaging Latin America economy may be renewed . To ensure United States economic and foreign policies succeed on Latin America, policies geared toward bridging the economic diversity within this region are important.This is because some countries have adopted the United States economic policies while others are about or implementing them. For example Mexico and Chile economic policy instruction execution has lead to economic growth . On the other hand countries like Argentina are not yet stable e conomically stable. Argentina recorded economic deterioration in 2000 and 2001. For Latin America to benefit from United States economic and foreign policies there should be a defined categorization match to economic differences since necessarily may be different .Economic policies to nurture growth of private sector and improve productiveness are of great importance. These policies lead to enhanced economic growth, a right answer to poverty eradication in Southern hemisphere. United state economic and foreign policies should put vehemence on productivity through partnering with institution like Inter-American Development Bank (IDB) and other financial partners . This exit be inconsistent with President Bush policies i. e. investing in people, ruling justly and opening doors for economic freedom.Meaning that a major emphasis on development of human capital through improving education system and employment of new technologies for high productivity. Ruling justly help attaining o f increased productivity as corruption and protection of contracts may attract private investment which is key to increased productivity. Therefore, United States economic policies should focus on the area of productivity and apply it categorically according to economic needs of different Latin American countries. Bibliography Feldstein, Martin S. (1988) The United States in the World EconomyNational Bureau of Economic Research. ISBN 0226240789, 9780226240787 University of Chicago Press. Fryer Wesley A. (1993) Defining and Refocusing US policy Toward Latin America. Retrieved on 17th November 2008 from http//www. wesfryer. com/uslapolicy. html. Garcia, Enrique 2005 powder magazine article The Quest for Development in Latin America Rabe Stephen G. (1988) Eisenhower and Latin America The Foreign Policy of Anticommunism. ISBN 0807842044, 9780807842041 UNC Press Krueger, Anne O. 1993 Economic Policies at Cross-purposes The United States and Developing Countries.ISBN 0815750536, 9780815 75053 6Brookings Institution Press Mishkin Frederic S. and Savastano Miguel A. 2002 Monetary Policy Strategies for emerge Market Countries Lessons from Latin America Journal article Comparative Economic Studies Paulo Sotero (2005) Democracy in Latin America Alive but Not Well Magazine article Foreign Policy Taylor canful B. 2002 United States Economic Policy Toward Latin America and the Role of the International Financial Institutions. Retrieve on 17th November 2008 from http//www. stanford. edu/johntayl/taylorspeeches/United%20States%20Ec