Globalization: European Conquistadors In Latin America

8 December 2012
Globalization: Prompt #2
Globalization is a term that is used by many to describe a variety of actions. Globalization typically refers to the integration of the people, economies, and governments of different nations and is commonly driven by foreign trade, investment, and proliferation of new technology. This process is intended to benefit developing countries and allow them to grow and become incorporated into the global economy. Some see globalization as an answer to Latin America’s problems regarding social inequality, poverty, and lack of capital flow. They see globalization as a success because substantial economic growth and increase in trade can be seen throughout Latin America. However, others believe that the negative
impacts of globalization far overshadow the positive. Societal changes, unequal economic opportunities and creation of wage gaps between the educated and uneducated are also prevalent byproducts of globalization. In essence, globalization has not contributed to the lessening of social inequality, but may have in fact increased these problems. The benefits of globalization are felt by a select few while the majority continues to suffer and face similar and in some instances, growing inequality.
The Latin America lands are blessed with plentiful natural resources and the ability to turn them into valuable goods.
Unfortunately, this blessing has historically turned into a curse. The arrival of the European conquistadors in Latin America hundreds of years ago began a seemingly continuous trend throughout the region in which Latin American people and land were exploited for the benefit of others. Latin American lands were prime territory for the money-seeking individuals who conquered the area. They were systematically looted for their valuable materials, which were exported to other counties. This lead to the financial stimulation of economics all throughout Europe, while creating no benefit, and in many cases, harm to Latin America. The number of people in poverty multiplied as money stayed in the hands of the rich and fueled their need for extravagance. Extreme inequality became characteristic of these regions, where a small but deeply rooted elite social class dominated. The elite controlled the means of production and wages, and received access to better education. The poor were relegated to manual labor and subsistence wage levels, and little access to educational opportunities. Latin American goods were introduced into the global market, but Latin America workers typically did not receive the benefits of the increased trade. The history of Latin America is important in the understanding the problems seen today because Latin America has a historical legacy
of high inequality. This marked the beginning of Latin America’s struggle to become integrated into the global economy.
Globalization encompasses many different ideas such as privatization, free trade, and foreign aid and investment. Privatization is often seen as a method for economic growth because it brings about structural change that increases individual incentives and productivity. Many nationalized companies within Latin America were sold to United States companies, increasing the availability of services to a wider range of citizens. But privatization led to detrimental effects on other aspects of life. Employment opportunities decreased substantially. Workers desperate for jobs were essentially forced to accept less than minimum wage in compensation for grueling jobs. The United States often takes advantage of this cheap labor because cheap labor means increased profits. As a result, other countries benefit from the cheaply produced goods, but local workers are again relegated to low wage manual labor.
The implementation of free trade is also an important component in globalization. Free trade increases opportunities for transnational trade and allows for a more competitive economy. However, free trade often threatens small companies who cannot compete on a larger scale with other more established and or automated companies elsewhere. These small companies struggle to make a profit in comparison to large companies who can afford to lower their prices in order to be more competitive. In addition, large corporations often move their productions to regions that have the lowest cost of labor. It is often Latin America where these companies are heavily invested. This does help to put money into the Latin American economy allowing for growth and the addition of jobs, but in too many cases they continue to be manual in nature and low in pay. Over time these companies must make additional investments and provide more opportunities in the local Latin American countries to spread these benefits. Access to better education will allow the work force to move into higher paid roles and take more control over their destiny. Globalization may appear as providing benefits, but the interests of Latin America are typically not the number one priority. The profits gained from these foreign investments were immediately returned to the country of origin rather than stimulating the Latin American economy. Workers are not paid well and barely make enough money to survive on, while the large companies are making an immense profit. Latin American workers are not able to progress financially because they have no way of increasing their income or skills. These processes parallel the historical process by which European powers exploited the goods of Latin America. While it may appear to be beneficial to Latin America by putting money into the economy and creating jobs, in many ways creating low paid jobs only acts to allow for the continuation of the current situation. As Doctor Hector Perla mentioned, “the underdevelopment in Latin America is the necessary product of four centuries of capitalist development” (Perla; 12/6/12). Latin American has again and again been used for the advancement of other countries. Although the processes of globalization were intended to decrease social inequality and allow for recovery from debt, when examined more closely these processes have led to negative impacts throughout Latin America.
Resistance to globalization is evident through the wave of leftist leaders coming to power in Latin America. This movement towards the left indicates that the citizens of Latin America want to stray away from the policies implemented by the process of globalization. Leftist policies implemented in Venezuela by Hugo Chavez look to benefit the majority of the population, who are the poor, working class, rather than the rich. These policies are aimed to reduce poverty and raise the standard of living for those living in poverty. These policies are not well liked by those elite few who have benefited from the concentration of wealth in the past and those who benefited from globalization policies in the past.
People across the world recognize the United States as a haven for individual freedoms and also economic opportunity, and thus seek refuge in the United States.
Many Latin American’s looking to escape the poor conditions that were exemplified by globalization processes have chosen to migrate to the US. The intensification of Latin American migration to the United States has also led to an upsurge of repression, racism, and discrimination against immigrants and those of Latin American descent. Although the United States was initially seen as a safe haven from the political repression, sub-par living conditions, and inequality found in Latin America, many immigrants have experienced the exact opposite. Many Latinos struggle to find jobs due to their citizenship status and often end up working for less than minimum wage. Patrick Zavella established a connection between job and wage inequality and the high rate of poverty seen throughout the Latino community. Immigrants who cannot gain legal status in the United States have no opportunity for financial advancement because they cannot gain jobs. Latin American’s in the United States have also faced discrimination for their culture and race. Hate crimes are prevalent in the Latino community and many Latinos are subject to harassment. It is ironic that many Latin American’s in the United States continue to face the very problems they wished to escape by leaving their home
countries.
But Latino’s are not just accepting this unfair treatment. Many Latin American people have rose to the occasion and stood up for what they believe in, and have proven that individuals can make an impact through collective action. As exemplified in the true-story film Walkout, those looking to improve their educational opportunities and bring about change within their community decided to take action, speak out, and stand up to authority. By the 1960s, the East Los Angeles School Districts had become deeply rooted in racism. The Mexican-American student population in East-LA faced severely oppressive conditions that were not conducive to learning or success. The drop out rate within this community was extremely high, school facilities were in less than acceptable conditions, speaking Spanish was not allowed, and the capabilities of Latino students were far underestimated. School officials continuously denied the student’s requests for bilingual education and equal opportunities Students channeled their anger and frustration into organized protest. The students decided to “walk out” of their classrooms and protest publicly during school hours with the intent of gaining recognition and public attention for the rights they advocated for. Originally the protest consisted of a few high school students, but grew to encompass the entire community of Latinos. The walkouts had a significant impact on the community even though most of the student’s requests were not satisfied. They served as a unifying and empowering factor for the Latino community. This would serve to be the beginning of a long fought battle for Latino rights within the United States.
Many other Latinos have taken a stance against the unfair treatments they have and continue to experience in Latin America and the United States. Roberto Lovato is the founder of an organization called Presente which unites Latinos under the common goal of fighting for equality throughout the Latino community and raising social awareness of the problems affecting Latinos. He also is organized a traveling group called “Caravan for Peace” that provides personal testimonies of those who are affected by the drug war in Mexico. Olga Reyes travels the world and testifies about the personal atrocities she has experienced. The urges a movement to urge Mexico in a new direction as she exemplifies the loss of lives due to the drug war, effects of gun trafficking and the role that the United States plays in it all. These are just two activists in a sea of many who have made a difference in the Latino community.
Many see globalization as inevitable and a positive for underdeveloped nations. Others see it as a continuation of the past economic and political suppression seen for centuries. In truth, it has caused both, as seen in the impact it has had on Latin American countries over the past century. Globalization can lead to positive impacts for countries and individuals through new opportunities and growth. It can also create new negative outcomes if not managed carefully for the benefit of all citizens. Latin America has become a player in the global economy through global growth, but in in turn, financial and social situations have worsened in some instance. Some Latin American countries have moved to the left to ensure that the benefits of globalization benefit the many instead of the few. Thus, the overriding message conveyed by globalization is that in can be a path to growth, but one that must be managed carefully if citizens are to enjoy the benefits of that growth.
Works Cited
Film: Walkout
Galeano, Eduardo, and Eduardo Galeano. Open Veins of Latin America: 5 Centuries of the Pillage of a Continent. Transl. by Cedric Belfrage. New York: Monthly Review Pr., 1973.
Lovato, Roberto 2012. LALS Guest Lecture. 11/29/2012.
Perla, Hector 2012. LALS 1 Lecture #5. 12/6/2012.
Reyes, Olga 2012. LALS Guest Lecture
Zavella, Patricia. "Latinos in the USA: Changing Socio-economic Patterns." Social and Cultural Geography 1.2 (2000): 155-67.