Chapter 10 Latin America Today
Chapter Objectives Discuss aspects of the Latin American economy and how geography affects transportation and communications. Explain how Latin America s forest resources are affected by economic development and how the region s countries are working with other countries to solve economic and migration problems.
Living in Latin America Section 1
Objectives Identify the basis of the economy of many Latin American countries. List the advantages and disadvantages for Mexico of the North American Free Trade Agreement (NAFTA). Discuss the causes and consequences of Latin America s economically dependent status. Explain how the region s physical geography has affected transportation and communications.
Terms to Know Export Campesino Latifundia Minifundia Cash Crops Developing Country Service Industry Maquiladora North American Free Trade Agreement (NAFTA)
Geographic View
Geographic Literacy The North American Free Trade Agreement (NAFTA), which went into effect January 1, 1994, provides for the elimination of many trade restrictions among the three countries of North America by 2009. Goods such as cars and clothing, if produced in North America, will no longer be subject to import tariffs, nor will farm products crossing national borders. Mexico is emerging with a stronger economy as a result of its expanding trade.
Agriculture Latifundia and Minifundia Large agricultural estates owned by wealthy families or corporations are called latifundia. These highly mechanized commercial operations produce high yields in return for low labor costs.
Agriculture
Agricutlure Small government-owned farms on which rural farmers grow crops for their families are called minifundia. Campesinos have begun combining their farms into large, jointly run cooperatives.
Agriculture Cash Crops and Livestock Latin American countries are the world s largest producers of coffee, bananas, and sugarcane for export. Argentina, Mexico, and Brazil raise cattle for export on large ranches in grasslands areas. Countries are at economic risk, however, if weather or other disasters destroy their cash crops.
Industry Industrial Growth Latin America s physical geography high mountain ranges and dense rain forests has made the growth of industry and access to natural resources difficult in many areas. Political instability in some Latin American countries has made foreign investors wary of investing in Latin American industry. Countries with relatively stable governments and sufficient human and natural resources have begun to overcome these obstacles.
Industry Maquiladoras Foreign-owned factories called maquiladoras most of which are built along the U.S.- Mexico border provide jobs to people in the host country. They also benefit the foreign corporations by allowing them to hire low-cost labor and provide duty-free exports. On the other hand, the maquiladoras also keep wages down, may encourage dangerous jobs, and often pollute the environment.
Trade and Independence NAFTA By encouraging trade among the United States, Mexico, and Canada, the North American Free Trade Agreement (NAFTA) has strengthened Mexico s economy. Other Latin American countries are watching to see whether a free trade agreement like NAFTA could help their economies as well.
Trade and Industry
Trade and Independence Foreign Debts Many Latin American countries have used loans from foreign countries to finance industrial development. The economic troubles of the 1980s caused many of these countries to restructure their loans to allow more time to repay, but at a higher total cost. Repayment of foreign debt, in turn, caused needed domestic programs to be halted in some countries for lack of funds.
Transportation Latin America s physical geography has limited the building of roads, but the region does have a major highway system, the Pan- American Highway. A trans-andean highway runs through the Andes and links cities in Chile and Argentina. Some Latin American countries have good railroads; other countries lack the funds to maintain their rail systems. As a result, inland waterways such as the Amazon River, the Paraná-Paraguay Rivers, and the Panama Canal are still major transport routes for both passengers and cargo. Air travel will help overcome the obstacles of Latin America s physical geography, but it remains a relatively expensive mode of transportation for most Latin Americans.
Communications Communications networks are still developing in many countries of Latin America. Newspapers, radio, and television may be censored during political unrest. Few Latin Americans own phones or computers, although some countries are beginning to provide public access to the Internet.
People and Their Environment Section 2
Objectives Describe how development has affected Latin America s forest resources. Explain how Latin American governments are working to balance forest conservation with human and economic development. Discuss the challenges posed by the growth of Latin America s urban population. Identify the regional and international issues that continue to pose challenges for Latin American countries.
Terms to Know Sustainable Development Deforestation Slash-and-burn Reforestation Shantytown
A Geographic View
Geographic LIteracy Because of industrial development, the border between Mexico and the United States has many environmental challenges. About 12 million gallons (45,424,800 l) of raw sewage flow daily into the Tijuana River, which then empties into the Pacific Ocean. Other rivers carry toxic industrial pollution into the United States. Some stretches of the Rio Grande, for example, are so polluted that the water is not safe to touch.
Managing Rain Forest Latin American rain forests are gradually disappearing. More than 13 percent of the Amazon rain forest has been destroyed for roads, settlements, and mining. Deforestation threatens the lifestyles of indigenous people and risks the extinction of many species of plants and animals that grow or live nowhere else.
Managing Rain Forest As the rain forest is depleted, there are fewer trees to absorb carbon dioxide, a greenhouse gas that is increasingly trapping more heat in the atmosphere and contributing to global warming. Brazil and other rain forest countries are working to provide for the needs of their populations living space and natural resources without further destroying the rain forest.
Managing Rain Forests Farms and Ranches Versus Forests Slash-andburn farming clearing land by cutting and burning vegetation results in depleted soil that can be used for only a year or two. Farmers and ranchers then move on and clear more land.
Managing Rain Forests Planting for the Future Commercial logging operations also destroy the rain forest. Brazil has set aside about 10 percent of its Amazon rain forest for national forests or parks in which logging is banned. Citizens in Costa Rica are working to conserve their forests, as well. Reforestation, along with new farming, mining, and logging methods can protect the forests.
Urban Environments Overcrowded Cities As Latin America s rural workers migrate to cities, they often cannot find adequate housing or jobs. Some are forced to live in makeshift slums and shantytowns, where diseases spread rapidly because of the lack of sanitation systems or running water. Many countries have no clean air laws, making air pollution a serious problem for people in these cities.
Urban Environments Building a Better Life National and local governments, international agencies, and grassroots efforts have begun to help Latin American countries address the problems of their overcrowded cities.
Regional and International Issues Disputed Borders In Latin America many territorial disputes have occurred, usually over the rights to natural resources.
Regional and International Issues Population Growth and Migration - High birthrates that contribute to overpopulation in some Latin American countries have begun to slow down. However, many skilled workers who might otherwise remain in their home countries and help address many problems are emigrating from Latin America.
Regional and International Issues Disaster Preparedness Physical geography makes Latin America especially vulnerable to natural disasters such as earthquakes, volcanic eruptions, and hurricanes. Governments in the region are cooperating to help Latin Americans prepare for and anticipate emergencies rather than reacting after the fact.
Regional and International Issues
Regional and International Issues Industrial Pollution Environmental laws have not kept up with the growth of industry and commercial farms. Air and water pollution have increased. Chemical runoff is now crossing borders and threatening neighbor countries.
Regional and International Issues
Summary Section 1 Latin America s economy is based on the export of agricultural products. A small group of wealthy families or businesses owns a large percentage of the agricultural land in Latin America. The economy of many Latin American countries is linked to one or two cash crops. The maquiladora system, trade agreements, and international borrowing are attempts to speed the industrialization of many Latin American countries. Geographic and economic realities have presented obstacles to developing transportation and communications in the region.
Summary Section 2 A key challenge for the Latin American region is sustainable development. Damage to the Amazon rain forest has both local and global consequences. Slash-and-burn cultivation contributes to Latin America s environmental challenges. Latin America s urban environmental problems are a result of rapid urbanization. Solutions to the region s environmental concerns will come through cooperation among local, national, regional, and international governments and organizations.