Stephen W. Campbell
The Transatlantic Financial Crisis of 1837 produced a global depression that lasted until the mid-1840s. Falling cotton prices, a collapsing land bubble, and fiscal and monetary policies pursued by individual actors and financial institutions in the United States and Great Britain were all responsible. A comprehensive understanding of the panic must take into account the global movements of gold and silver that linked Mexico, China, the United States, and Great Britain in complex networks of credit and debt. In the United States, businesses, banks, and individuals declared bankruptcy; states defaulted on their debts; commodity prices dropped; credit instruments lost their value; and unemployment rose amid a general atmosphere of pessimism and an erosion of confidence. The severity of the panic prompted politicians and financial theorists to reevaluate their ideological assumptions regarding the proper role of governmental regulation in an economy. In a larger sense, the panic demonstrated how the expansion of slavery in the United States, British imperialism, financial speculation, and recurring cycles of boom and bust were emerging as defining features of modern capitalism.
The John F. Kennedy administration took a bet on the incoming president of Brazil, João Goulart, as he took office on September 8, 1961. Goulart was not a radical socialist, but his opponents portrayed him as an unpredictable nationalist who might unadvisedly fuel the flames of social upheaval and radical revolution, turning Brazil into a second Cuba. Yet, the White House estimated that Goulart was someone they could do business with and sympathized with the idea of Reformas de Base (Goulart’s program of “basic reforms”), which included the extension of labor protections to rural workers, redistributive agrarian reform, and universal suffrage. United States support for Goulart materialized in the form of economic aid, financial assistance via the IMF, and development assistance via the Alliance for Progress partnership. Within a year, however, the tide turned as Goulart failed to comply with American demands that he ban leftists from his cabinet. In a matter of months in 1962, the White House abandoned any hopes of engagement with the Brazilian president. While the crisis that led to Goulart’s fall in March 1964 was the making of domestic political actors within Brazil—as was the military coup to unseat the president—the likelihood and success rate of the golpe grew as the United States rolled out successive rounds of targeted actions against Goulart, including diplomatic and financial pressure, threats of abandonment, support for opposition politicians, collusion with coup plotters, signaling future military support for the plotters in the eventuality of civil war, and the granting of immediate diplomatic recognition for the incoming authoritarian military leaders after the coup. After Goulart, Brazil remained under authoritarian rule for two consecutive decades.
U.S. foreign policy toward Latin America in the 19th century initially focused on excluding or limiting the military and economic influence of European powers, territorial expansion, and encouraging American commerce. These objectives were expressed in the No Transfer Principle (1811) and the Monroe Doctrine (1823). American policy was unilateralist (not isolationist); it gradually became more aggressive and interventionist as the idea of Manifest Destiny contributed to wars and military conflicts against indigenous peoples, France, Britain, Spain, and Mexico in the Western Hemisphere. Expansionist sentiments and U.S. domestic politics inspired annexationist impulses and filibuster expeditions to Mexico, Cuba, and parts of Central America. Civil war in the United States put a temporary halt to interventionism and imperial dreams in Latin America. From the 1870s until the end of the century, U.S. policy intensified efforts to establish political and military hegemony in the Western Hemisphere, including periodic naval interventions in the Caribbean and Central America, reaching even to Brazil in the 1890s. By the end of the century Secretary of State Richard Olney added the Olney Corollary to the Monroe Doctrine (“Today the United States is practically sovereign on this continent and its fiat is law upon the subjects to which it confines its interposition . . .”), and President Theodore Roosevelt contributed his own corollary in 1904 (“in the Western Hemisphere the adherence of the United States to the Monroe Doctrine may force the United States, however reluctantly, in flagrant cases of wrongdoing or impotence, to exercise an international police power”). American policy toward Latin America, at the turn of the century, explicitly justified unilateral intervention, military occupation, and transformation of sovereign states into political and economic protectorates in order to defend U.S. economic interests and an expanding concept of national security.
Stephen J. C. Andes
Vatican foreign relations with Latin America comprise both bilateral diplomatic negotiations with states and the Holy See’s spiritual leadership of national Catholic Churches in the region. Apostolic nuncios—papal diplomatic representatives—are the principal intermediaries of Vatican foreign relations. Since the early 19th century, Vatican diplomacy has been the purview of the Papal Secretariat of State, the “foreign relations” branch of the Roman curia.
The beginning of modern Vatican foreign relations with Latin America should be dated to the Napoleonic wars in Europe and the movements for home rule in Spain’s colonies. From 1810–1820, the papacy stood unwavering in its defense of Spanish absolutist claims to the peninsula and to its colonies. Latin American Independence shattered Spanish Royal Patronage and left a legacy of regalism in the region, with which the ultramontane papacy of the 19th century would contend. The professionalization of the Vatican diplomatic corps (1889–1914) conformed papal diplomacy to the norms of the international state system, incrementally increasing the political and spiritual legitimacy of the Holy See after its loss of temporal power to the Italian state, sparking the so-called “Roman Question” (1870–1929).
During the interwar period, Vatican policy centered on concordats and Catholic Action, evincing both a pragmatic approach to diplomacy and a highly regimented and non-party political model of lay activism. Mexico’s Cristero Rebellion (1926–1929) represented the most strident conflict in the period, where Rome’s concordat/Catholic Action policy neither negotiated a durable modus vivendi nor managed to pacify radical lay Catholics until the 1940s. During the pontificate of Pius XII (1939–1958), a strident anti-communism marked the policy of the Holy See, aligning the Catholic Church in Latin America with conservatives and authoritarian leaders. After the Second Vatican Council (1962–1965), the policy of Ostpolitik guided diplomats towards rapprochement with communist and revolutionary states such as Cuba and Nicaragua.
The end of the Cold War temporized the relationship between progressive sectors in the Latin American Church, which had been influenced by Liberation Theology, and the Vatican under John Paul II (1978–2005). A “New Evangelization” campaign was heralded by Pope Benedict XVI (2005–2013). Argentine Jesuit and Cardinal Jorge Mario Bergoglio crafted many of the seminal documents for the New Evangelization. Bergoglio, elected Pope Francis in 2013, emphasized the socio-economic and the spiritual aspects of Vatican policy, bring issues of poverty, economic inequality, and justice to center stage, fostering a diplomacy of piccoli passi (small steps) and brokering improved relations between the United States and Cuba.