Category: South America

Dependency Theory in 21st Century China and Latin America

Published August 28, 2022 by Amy Weitzman

As China increases its foothold in Latin America, observers question whether China’s involvement is for better or worse. Dependency theory is one way of answering those questions. While the oppression identified in dependency theory is typically associated with the US and Europe, China is a rising global power. The Belt and Road Initiative (BRI) is China’s new method of investing in the economies of the oppressed.

The BRI is a Chinese development initiative to establish infrastructure and stronger trade relations in countries that need it. China invests in developing countries to build roads, bridges, and ports, among other infrastructure. World Bank studies project it may create economic growth as far as lifting 32 million people out of poverty. However, it is also a way for China to insert itself into the economies of developing countries. As China builds infrastructure in developing countries, they impose debt upon them that is increasingly hard to pay due to COVID-19. As countries struggle to pay their debts, they also give up their land. Consequently, critics see this as an example of neocolonialism and debt-trap diplomacy .The BRI began with Africa and Western Asia in 2013. Now, 20 countries in Latin America and the Caribbean are members. Most recently, Argentina joined China’s BRI in early 2022. As a result, China is now Latin America’s second largest trading partner, following the US. As Latin America is already an export-based economy, it is easy for China to profit from its resources and cheap labor. Furthermore, it provides China with a market for its booming financial technology companies as well as support for unification with Taiwan. China has seen benefits but the consequences for Latin America are debated. Skeptics point to infrastructure that has created environmental concerns, crossed borders and created conflict, and projects that remain unfinished due to unpaid debt. For example, Argentina faced significant backlash and lawsuits for allowing Chinese dam construction. Construction continued despite the damage to indigenous ancestral lands and the threat of driving wildlife to extinction. For those who believe that Latin America will suffer negative consequences, dependency theory may frame their perspective.

Dependency theory has historically pointed to Latin America as dependent on its oppressors to survive. It argues that an exploitative trade dynamic is the cause of the limited development of Latin America. Latin American economies are primarily export-based due to their cheap labor and an abundance of natural resources. They export to developed countries, particularly the US, which turn their natural resources into finished goods. Latin America is then required to purchase finished goods at the high prices set by developed countries. Due to the low earnings from exports and high costs of imports, Latin America lacks the income to develop its own economy. As a result, it is dependent on the US for the goods that sustain its economy at the cost of cheap labor. The same theory applies to China, where Latin America recently expanded its exports.

A fundamental contributor to dependency theory was Eduardo Galeano. In his most famous work, Open Veins of Latin America, he argues that Europe and the US are responsible for the economic inferiority of Latin America. For example, he argues that the American slave trade funded European development at the cost of Latin American development. The slave trade produced innovation and economic gains that set the stage for the industrial revolution in Europe. However, it had a human cost that is seen today. According to dependency theory, unpaid labor in poor conditions is the modern day slavery. Latin America must rely on conditions that are affordable rather than modernizing. Consequently, development is limited and exploitation continues. This demonstrates the remaining effects of historical power dynamics.

Although Galeano spells out the broad dynamic of oppressor and oppressed in Open Veins, it was written in 1971 before China’s sphere of influence was outspread. Open Veins describes how the world is divided into oppressor and oppressed, or developed and developing. Following Galeano’s reasoning, if Latin America is the oppressed, it necessitates that China is the oppressor. Furthermore, he explains that historical exploitation remains today. Therefore, if Latin America is already weak due to exploitation, he might argue that it would make easy prey for China. China can easily take advantage of an economy that is already export-based and fueled by cheap labor. The BRI supports Chinese development as China imports natural resources, cultivated affordably with cheap labor, in order to produce factories and financial technology. China also gains allies in its conflict with Taiwan. Eight Latin American countries have changed to support Chinese unification. Due to the dichotomy between oppressor and oppressed, Galeano would likely argue that China’s development comes at the expense of Latin America.

On the other hand, critics of dependency theory may support the BRI. One example is Guide to the Perfect Latin American Idiot by Plinio Apuleyo Mendoza, Alvaro Vargas Llosa, and Carlos Alberto Montaner. The Guide is a bitter refutation of dependency theory and Eduardo Galeano’s ideas. It ridicules dependency theorists for criticizing the US both when it provides foreign aid and when it does not. It argues that it is unfair to blame debt traps for economic inferiority when Latin America would not be able to sustain itself without foreign investments. The authors additionally point out that Galeano makes the same argument in favor of foreign investments. In Open Veins, Galeano “wonders if those who made us paralytic might offer us a wheelchair?” He therefore argues in favor of financial compensation from oppressors. The Guide concludes that if even Galeano himself would expect foreign aid, it is unfair to criticize when it is received. Moreover, the Guide attacks Galeano’s idea that the world is divided into only oppressor and oppressed. In its view, it is impossible to determine that foreign investment can only benefit one group at the expense of another. Henceforth, the Guide may argue that the BRI can benefit both Latin America and China. Its support for foreign aid suggests support for the BRI.

China’s rise in the global market demonstrates the continued relevance of dependency theory. Critics of dependency theory often argue that the success of former colonies such as India makes it irrelevant. However, it is indeed helpful in interpreting global power shifts for the present and future.

WORKS CITED

Mendoza, Plinio Apuleyo, Carlos Alberto Montaner, and Alvaro Vargas Llosa. Guide to the Perfect Latin American Idiot. Lanham, Md.: Madison Books, 2001.

Galeano, & Belfrage, C. (1997). Open Veins of Latin America: Five Centuries of the Pillage of a Continent (25th anniversary ed.). Monthly Review Press.

Zhang, Pepe. “Belt and Road in Latin America: A Regional Game Changer?” Atlantic Council, October 9, 2019. https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/belt-and-road-in-latin-america-a-regional-game-changer/.

Roy, Diana. “China’s Growing Influence in Latin America.” Council on Foreign Relations, April 12, 2022. https://www.cfr.org/backgrounder/china-influence-latin-america-argentina-brazil-venezuela-security-energy-bri.

Business. “Argentina: Santa Cruz River Hydroelectric Complex – Business & Human Rights Resource Centre.” Business & Human Rights Resource Centre, 2022. https://www.business-humanrights.org/en/latest-news/argentina-santa-cruz-river-hydroelectric-complex/.

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Magda Portal

Published August 19, 2022 by Amy Weitzman

Magda PORTAL (1900–1989) was a Peruvian socialist poet and leader of the Aprista social democratic party (APRA). She contributed to the Peruvian literary movement of the early 1900s, which advocated for indigenismo, anti-imperialism, women’s rights, and property rights. The movement was inspired by other liberation movements, such as the Mexican Revolution (1910–1920) and Argentina’s University Reform Movement (1918). Her poetry incorporates romanticism with overtly socialist messages. Additionally, she wrote extensively about her own experiences, particularly exclusion from male-dominated politics.

Portal is notable as a founder of APRA, one of the oldest political parties in Latin America. With her influence, it became the first Peruvian political party to recruit women. However, she abandoned it when it shifted to the ideological center. She wrote her only novel, La Trampa, to represent her negative experiences with the party before joining Peru’s Communist Party. Although she is renowned for being a woman in leftist spheres, her writings on other issues are significant. One example of her socialist poetry is “Proletarian Song.” Its vivid imagery of manual labor expresses the necessity of class reform. Her poetry often advocated for indigenous people’s integration into the state and society as well. Furthermore, she valued unity. Her correspondence reveals her desire for Latin American unity against the imperialist United States. She saw the Mexican Revolution as the model that all Latin American countries should follow, in order to not only protect individual rights domestically, but also create ideological unity across the region.

FURTHER READING

Portal, Magda. “Magda Portal Papers,” November 29, 1913. University of Texas Libraries.

Weaver, Kathleen. Peruvian Rebel: The World of Magda Portal, with a Selection of Her Poems. Illustrated edition. University Park (Pa.): Penn State University Press, 2011.

Portal, Magda, and Daniel R. Reedy. Hope and the Sea by Magda Portal. Translated by Kathleen Weaver. Dulzorada, 2021.

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Graciliano Ramos

Published July 26, 2022 by Amy Weitzman

Graciliano RAMOS (1892–1953) was a modernist writer and politician from the Brazilian northeast, one of the poorest regions in the country. He was a noted Communist and his writings feature fictional livelihoods to showcase social and political concerns. He expresses pessimism about generational suffering, illiteracy, misogyny, indigenous dehumanization, and exploitation as a fact of capitalism. Additionally, he had an impact on Brazil’s developing cinema culture.

São Bernardo and Vidas Secas are two of Ramos’s most famous works. Vidas Secas, translated as Barren Lives, is the most accessible to English readers. It details the tragic lives of a migrant family trekking through a drought in search of labor. Its central messages are that exploitation is inescapable for the lower class, suffering has a legacy, and illiteracy is disempowerment. For example, the father worries for his children’s upbringing but cannot help that they were born to labor under somebody else. Moreover, he is arrested when he does not understand the upper-class language of the charges against him. The last chapter leads into the first chapter to demonstrate the cyclical nature of helplessness.

FURTHER READING

Scott, Paulo. “Paulo Scott on Graciliano Ramos.” Asymptote Journal. Accessed July 26, 2022. https://www.asymptotejournal.com/special-feature/paulo-scott-on-graciliano-ramos/.

Ramos, Graciliano. Barren Lives: Vidas Secas. Translated by Ralph Edward Dimmick. University of Texas Press, 2011.

Ellison, Harlan. Brazil’s New Novel: Four Northeastern Masters – Jose Lins Do Rego, Jorge Amado, Graciliano, Rachel De Queiroz. Paris: Les Humanoïdes associés, 1979.

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The Chicago Boys

Published June 24, 2022 by Amy Weitzman

The Chicago Boys (1970s–1980s) were a group of Chilean economists, named for their education under Milton Friedman at the University of Chicago. They enacted extensive neoliberal reforms in Chile, such as deregulation, privatization, and strict austerity. They provided an early example of shock therapy and influenced leaders around the world, including Ronald Reagan and Margaret Thatcher.

It is controversial whether or not their reforms were effective toward improving Chile’s economy. The Chicago Boys’ supporters argue that their leadership produced “the Miracle of Chile” and point to their reforms as an explanation for Chile’s present day success. For example, Chile was ranked by the Heritage Foundation as the most economically free country in Latin America as of 2022, its GDP rose greatly, and it returned to a democracy after the Chicago Boys’ influence. However, detractors point out that the rise in GDP came at the cost of a rise in wealth inequality. Additionally, these reforms were largely carried out by the military dictator Augusto Pinochet, who committed severe human rights violations in order to implement those reforms. This controversy is still vital to Chilean politics because of the Chicago Boys’ long-term impacts.

FURTHER READING

Matamala, Daniel. “The Complicated Legacy of the ‘Chicago Boys’ in Chile – ProMarket.” ProMarket, September 12, 2021. https://www.promarket.org/2021/09/12/chicago-boys-chile-friedman-neoliberalism/.

Valdés Juan J. Pinochet’s Economists: The Chicago School in Chile. Cambridge, UK: Cambridge University Press, 2008.

Sigmund, Paul E. “The Rise and Fall of the Chicago Boys in Chile.” SAIS Review 3, no. 2 (1983): 41-58. doi:10.1353/sais.1983.0040.

British Online Archives. “Miracle of Chile? The Legacy of the Chicago Boys | British Online Archives,” 2020. https://microform.digital/boa/posts/category/articles/378/miracle-of-chile-the-legacy-of-the-chicago-boys#_ftnref13.

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Eduardo Galeano

Published June 22, 2022 by Amy Weitzman

Eduardo Galeano (1940–2014), best known for Open Veins of Latin America, was a leftist Uruguayan writer. His works are significant because they aim to tell history through the lens of the oppressed. He describes histories of oppression, both economic and cultural, in order to explain the present state of the developing world. He is widely known for his contributions to Latin American dependency theory. A dichotomy between oppressor and oppressed is a key aspect of his beliefs.

While Open Veins is Galeano’s most famous work, Mirrors: Stories of Almost Everyone provides a broader survey of his ideas. Mirrors includes more than 600 vignettes, each one documenting an incident or historical trend that depicts oppression. He addresses structures of racism, misogyny, homophobia, and classism. Furthermore, he references countless cultures for his stories and extends past his reputation as a theorist on Latin America. For example, he recalls Ancient China’s family structures, the development of African American jazz music, and the Turkish origin of the croissant—all written as demonstrations of oppression. Galeano’s critics argue that his stories are largely apocryphal and it is unfair to divide the world into oppressor and oppressed.

FURTHER READING

The New York Times. “Author Changes His Mind on ’70s Manifesto (Published 2014),” 2022. https://www.nytimes.com/2014/05/24/books/eduardo-galeano-disavows-his-book-the-open-veins.html.

Galeano, & Belfrage, C. (1997). Open Veins of Latin America: Five Centuries of the Pillage of a Continent (25th anniversary ed.). Monthly Review Press.

Galeano, Eduardo, and Mark Fried. Mirrors: Stories of Almost Everyone. New York, NY: Nation Books, 2010.

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Dependency Theory

Published June 20, 2022 by Amy Weitzman

Dependency theory (1960s–Present) is the idea that developed countries obtain their wealth at the expense of developing countries and, as a result, make developing countries unnaturally poor. Dependency theorists underline how export-based economies limit development. They explain that developing countries export raw goods to developed countries and then must purchase it back after manufacturing at a higher price, leading to dependence and impeded growth.

Open Veins of Latin America, published by Monthly Review Press

While it is applicable to many former colonies, Latin America is a common focus. Open Veins of Latin America by Eduardo Galeano is a renowned example of dependency theory literature. Galeano challenges the idea that a lack of resources or innovation is the reason behind Latin America’s limited development. Rather, the cause is a history of slavery, imperialism, and exploitation. For example, he argues that the 18th century silver trade, and the slavery it accompanied, led to contemporary working conditions and ecological devastation of Latin America. Critics question the continued relevance of dependency theory due to the successful modernization of former colonies, such as India.

FURTHER READING

Galeano, & Belfrage, C. (1997). Open Veins of Latin America: Five Centuries of the Pillage of a Continent (25th anniversary ed.). Monthly Review Press.

Bernecker, Walther L., and Thomas Fischer. “Rise and Decline of Latin American Dependency Theories.” Itinerario 22, no. 4 (1998): 25–43. doi:10.1017/S0165115300023494.

Glennie, Jonathan. “Dependency Theory – Is It All over Now?” The Guardian, March 2012. https://www.theguardian.com/global-development/poverty-matters/2012/mar/01/do-not-drop-dependency-theory.

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Hispanidad, or Spanishness

Published June 9, 2022 by Amy Weitzman

Hispanidad (1910s–Present), or “Spanishness”, is a Hispanic American nationalist ideology that seeks a restoration of Spanish spiritual identity. It rests upon the belief that a Catholic spiritual identity has united Latin America since the time of early Spanish missionaries. Hispanidad officials aimed to eliminate the rising Communist, secular, and anti-clerical ideas of the 20th century. Ramiro de Maeztu exemplifies Hispanidad as a prominent thinker who argued that Enlightenment thought was the source of Latin America’s weaknesses.

Francisco Franco’s fascist regime in Spain introduced the ideology into Latin America. In order to spiritually unify the region, Franco not only appointed Spaniards into Latin America’s political positions, but also invited several far-right Hispanic Americans into Spain for their input on expanding the ideology. Hispanidad likewise influenced the Philippines in both culture and government. Gradually, Latin American cultures began to associate with Latinidad instead—a unity among all Latin Americans regardless of an ethnic background. However, it remains a component of far-right ideologies.

FURTHER READING

http://filosofia.org. “Ramiro de Maeztu, La Defensa de La Hispanidad.” Filosofia.org, 2022. https://www.filosofia.org/hem/193/acc/e05449.htm.

‌BOX, ZIRA, and Wendy Gosselin. “Spanish Imperial Destiny: The Concept of Empire during Early Francoism.” Contributions to the History of Concepts 8, no. 1 (2013): 89–106.

http://www.jstor.org/stable/43610933.Diffie, Bailey W. “The Ideology of Hispanidad.” The Hispanic American Historical Review 23, no. 3 (1943): 457–82. https://doi.org/10.2307/2508538.

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Indigenismo

Published April 30, 2022 by Amy Weitzman

Indigenismo (approx. 1930–1970) was a political and literary movement throughout Latin America, but particularly significant in Brazil, Mexico, and Peru. Indigenismo advocated for the preservation of indigenous rights and culture. Significantly, many thinkers associate it with socialism due to the poor economic conditions of indigenous communities. The movement critiqued the political systems and cultural deterioration that separate indigenous peoples from the nation-state as a whole.

The Mexican Revolution was one example of an event that lent itself to Indigenismo. A regime change meant an opportunity for reform, leading activists to call for indigenous inclusion. For example, Ricardo Flores Magón was a popular journalist and contributor to the political movement in Mexico. Meanwhile, in Peru, the movement built momentum due to rising modernization at the cost of indigenous livelihoods. José María Arguedas was a novelist and contributor to the literary movement in Peru. Both Magón and Arguedas wrote extensively in support of property rights for indigenous communities. It is still relevant to Latin America as indigenous communities continue to advocate for themselves.

FURTHER READING

Marentes, Luis A. “Latino Indigenismo in a Comparative Perspective.” Oxford Bibliographies Online Datasets, 2013. https://doi.org/10.1093/obo/9780199913701-0040.

Rodriguez-Peralta, Phyllis. “Ciro Alegria: Culmination of Indigenist-Regionalism in Peru.” Journal of Spanish Studies: Twentieth Century 7, no. 3 (1979): 337–52. http://www.jstor.org/stable/27740901.

Tarica, Estelle. “Indigenismo.” Oxford Research Encyclopedia of Latin American History, 2016. https://doi.org/10.1093/acrefore/9780199366439.013.68.

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José María Arguedas

Published April 29, 2022 by Amy Weitzman

José María ARGUEDAS (1911–1969) was a Peruvian novelist from a Quechua family. During his time at Peru’s National Agrarian University, he wrote many novels in defense of indigenous Andean culture. He was a significant participant in the Indigenismo movement who also identified as socialist. His novels represent indigenous culture challenged by modernization and capitalism.

Arguedas frequently uses language to express how modernization distorts culture. He includes blends of Spanish, English, Quechua, Aymara, and profane vernacular. His use of language communicates not only the diversity of Peru, but also the degradation of native tongues and appropriation of Western language. His central themes of indigeneity in the face of both modernization and capitalism are found in his final novel, a work of magical realism, The Fox From Up Above and the Fox From Down Below. It features fictional characters whose interactions symbolize industrialization and the resilience of indigenous culture despite a defiled physical environment.

FURTHER READING

Arguedas José María, Julio Ortega, Christian Fernandez, and Frances Horning Barraclough. The Fox From Up Above and the Fox From Down Below. Pittsburgh, PA: University of Pittsburgh Press, 2000.

Arguedas José María, and Frances Horning Barraclough. Deep Rivers. Long Grove, IL: Waveland Press, 2007.

Sandoval, Ciro A., and Sandra M. Boschetto-Sandoval. José María Arguedas: Reconsiderations for Latin American Cultural Studies. Athens, OH: Ohio University Center for International Studies, 1998.

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