dominated as the main external factor; although other factors where present including the Cold War, the USSR, and the Cuban Revolution. The presence of the United States was so prevalent in internal affairs because it had gained control of many industries within certain Latin American countries. For example in Panama, the United States orchestrated a coup and constructed a situation that would prevent Panama from taking complete control of the canal; since Panama had to have the military resources to protect the canal which
As stated in Walker’s account of the meaning for the revolutions in Central America were greatly due to the internal problems with unity especially when it came to the economic sector, as the governments were following neo-liberal policies (203). These policies were set up to stimulate export so that foreign exchange could be possible and the countries could pay off the debts they had to foreign powers, such as the United States. Therefore, if these policies were not adhered by then the United States would respond with great disfavor as was depicted in their encounter in Guatemala under President Arbenz whom had implicated various social reforms like the Agrarian reform that was meant to redistribute land and provide the poor with access to education, healthcare, and basic necessities. Arbenz’s projects did not adhere to the desired policies of the US, as his policies were hindering the private sector like the United Fruit Company who lost land during the Agrarian reform and lost some of its control over the labor force after the legalization of unions. Also, Arbenz had enacted economic reforms to eliminate Guatemala’s reliance on foreign power by creating competition to these companies of the outside influence such as the creation of a government owned power plant to rival the US controlled electricity monopoly (Bitter Fruit, 49-63).