Trade Patterns of Latin America and Eastern Europe from 1750-present

1
Trade Patterns of Latin America and Eastern
Europe from 1750-present

• Tyler DeClerck
• Dino Salkic

2
Latin America

• The backbone of Latin America basic economy in
  the 1700's was its part in the Atlantic Slave
  Trade and Triangular Trade, African slaves
• Between 1700 and 1800 was the highest import of
  African slaves. The Triangular/Atlantic slave
  trade was where African slaves were exported to
  Latin America, where the raw materials and crops
  produced would be exported, through Spain, to the
  world, and finished luxury products would be
  exported from Europe to Latin America. Seven
  million African slaves arrived in Latin America.
  Brought by the Europeans in exchange for crops,
  these innocent and severely abused people were
  forced to work in agriculture for the most part.
  This cycle would last all the way into the mid
  1800s.
• Latin Americas trade and economy grew very
  slowly. Early discoveries of gold and silver
  production created the first basis of its
  economy. Mining of raw materials, metals, and
  especially silver would remain a huge source of
  Latin Americas trade and exports. The mines were
  usually started by private investors and
  companies, but backed by governments, primarily
  Spain. Mexico and Peru were the sites of huge
  silver mines which would continue to flow for
  years and years to come. The influx and import of
  so much silver would lead to higher prices and
  inflation in first Spain and later all of Europe.
  Silver mining/exports would make up more than 2/3
  of Latin Americas economy, trade, and income.
• Sugar and cacao were two of the biggest major
  crops exported, but sugar was the ultimate
  largest. Sugar plantations would be and were set
  up from the very beginning of foreign investing,
  exploration, and discovery in Latin America.
  Sugar would also continue to be the major trade
  crop and economic booster and boom for Latin
  American nations and would continue to be a huge
  part, even into present day.
• They came completely dependent on others trading
  them resources because they could not
  industrialize. But with an extreme demand for
  Latin American products around the world, they
  were able to survive.
• The U.S. though set up the Monroe Doctrine
  stating that no other countries could intrude in
  Latin American affairs or try any colonization.
  The U.S. was trying to cut off Latin America from
  the rest of the world and leaving Latin Americas
  resources, goods, and markets to them. Foreigners
  wanted the resources, though, and began
  investments, which helped Latin America
  immensely. Latin American economies were
  expanding due to exports. Each country seemed to
  have specialties. For example, bananas and coffee
  from Central America, tobacco and sugar from
  Cuba, and rubber and coffee from Brazil.
• Because of the rapidly expanding economy and
  trade, there was a large interest from foreign
  investors from the major powers, the British,
  French, German, and U.S. These investors helped
  the Latin American economy, but were lessening
  their independence. Much of Latin America began
  to industrialize. Foreign investments were
  encouraged and policies were changed to help
  promote investments as well.

3
Eastern Europe

• Although the Russian Empire would play a leading
  political role in 1800s, secured by its defeat of
  Napoleonic France, its retention of serfdom
  precluded economic progress of any significant
  degree. As West European economic growth
  accelerated during the Industrial Revolution,
  which had begun in the second half of the 18th
  century, Russia began to lag ever farther behind,
  creating new problems for the empire as a great
  power. Russia's great power status obscured the
  inefficiency of its government, the isolation of
  its people, and its economic backwardness.
• When Alexander II, came to the throne in 1855,
  desire for reform was widespread. The
  emancipations of serfdom in 1861 was the single
  most important event in 19th century Russian
  history. It was the beginning of the end for the
  landed aristocracy's monopoly of power.
  Emancipation brought a supply of free labor to
  the cities, industry was stimulated, and the
  middle class grew in number and influence
• During the Cold War, the term Eastern Bloc (or
  Soviet Bloc) was used to refer to the Soviet
  Union and countries it either controlled or that
  were its allies in Central and Eastern Europe
  (Bulgaria, Czechoslovakia, East Germany, Hungary,
  Poland, Romania.) A communist or social
  government controls the economics and trade with
  a tight leash. The Easter Europeans were allowed
  to trade, and they did mostly with there
  geographical neighbors of West Asia or the Middle
  East. The catch was that all trade was severely
  regulated by the government, which meant
  restrictions and limitations. This regulation
  caused the Eastern Bloc to be cut off the from
  the world in a fashion similar to an
  imperialistic government. The economy was
  weakened and technology was severely lagging.
  During a period of globalization, because
  communication, military, politics, travel and
  even economics were able to travel the globe, a
  communist economy could not be healthy.
• This economic stall remained until the late
  1970's. The world market has been dominated by
  Capitalistic governments since the end of World
  War II. This style proved to be more efficient
  and even more popular than the socialist/communist
  government controlled economy. This became
  increasingly more obvious to the Eastern Bloc,
  especially the smaller independent countries in
  Easter Europe (controlled by the USSR.) In early
  1990, the Soviet's gave up control of 15
  republics in Eastern Europe. Later that year on
  December 8th, the powers of Russia and Ukraine
  deemed the Soviet Union dissolved. By the last
  day of the year, December 31st, 1991 all the
  republics of the Union had seceded and the Soviet
  Union was gone.
• From 1917-1991 the majority of Eastern Europe's
  economy was in tatters. Struck down and
  restricted by the communism, most republics had a
  complete rebuilding process to go through, and
  were far behind those of the long-time democratic
  Western Europeans. Those republics that chose to
  have free-markets were receiving extensive aid
  from the United States and were struggling, yet
  on their way to economic improvement. Countries
  such as Ukraine and Russia that were struggling
  immensely to adapt to this new and foreign way of
  economics were getting aid from the EU as well.
  More recently 12 of the 15 former communist
  states created a trade bloc headed by the CIS
  (formation after USSR.) This trade bloc allows
  free-market trade among themselves and does
  support democratization.
• Today the main source of economical revenue seems
  to be gas, chemicals and natural minerals and
  resources, especially in Russia, Ukraine, Poland
  mostly the larger countries of the region. Russia
  is filled with organic minerals that can be
  exported worldwide, because many many places do
  not have these necessities.

4
Comparing and Contrasting

• Latin America and Eastern Europe both went
  through extended periods of economic depression,
  as well as a failure to keep up with the current
  technology and industrialize.
• Both regions were controlled or severely
  oppressed for an extended amount of time (US,
  western Europe, USSR)
• Both regions are growing and catching up with
  present day technology and economy
• Both regions have always and still do today rely
  on natural resources to support and carry their
  economic success and connection to the world
  through trading and trade networks (gas and
  minerals) (organic fruits and agriculture, silver
  and gold)
• Latin America has always had a common export in
  agriculture
• Eastern Europe has never had an export that they
  have been able to consistently trade for an
  extended period of time
• Eastern Europes economy was regulated by a
  communist bloc which interrupted and restricted
  trade flow to outside networks
• Latin America was always a free-flowing market
  until the Monroe Doctrine, but even still some
  countries did not follow these standards because
  the US couldnt back it up
• The regions have extremely different
  environments. Latin America being mainly
  tropical, warm and wet (ideal for agriculture)
  and Eastern Europe being moderate to frigid
  depending on the location (very little
  agriculture.)
• The cultures and lifestyles of these two regions
  are very different and Eastern Europe had little
  to no effect on Latin America like Western Europe
  did

5
Trends and Changes in Trade

• Latin America-
• Began in 1700s as slave trade being main source
  of profit, exported natural goods in exchange for
  a total of seven million African Slaves
• Agriculture was a constant and has always been a
  mainstay of exports
• 1800s gold and silver produced in dangerous and
  deadly mines exported to Europe and eventually to
  Asia (through Europe)
• US became more involved in mid 1800s and tried to
  regulate all Latin American trade (all Europe
  prior to this)
• As globalization came Latin Americas resources
  became necessity and with greater profits they
  were able to begin Industrialization well after
  Europe and the US
• Imports were always needed to survive because
  they lacked the industry to manufacture, but with
  new industries they could import new goods for
  luxury instead of always importing the same life
  necessities
• Recently trade had shifted from the government to
  private companies, which are using cheap labor to
  increase income
• Eastern Europe
• -Eastern Europe has always been economically
  hindered and trade networks have been with close
  neighbors or within itself
• -Eastern Europe fell behind in the 1700 and
  1800s because of its refusal to eliminate
  serfdom, the serfdom ruined the economy and there
  was little to export
• -1917-1991 Eastern Europe was dominated by the
  Soviet Bloc and trade was strictly restricted and
  regulated by the Soviet Union
• -Trade was allowed within itself, but was
  mainly used for life necessities and nothing
  else, trade was not an economical factor
• -After communism was eliminated, Eastern Europe
  began the road to economic recovery with help
  from the EU and US, they began trading with their
  major export being natural resources such as gas
  and minerals
• -Gas and minerals continue today to be the
  regions largest import because most places do not
  have these natural sources, they can use things
  they find naturally to participate and learn the
  ways of the international trade network
• -With globalization fully in tact and still
  rising, Eastern Europe can trade their resources
  around the world in exchange for many foreign and
  new items they could not import for hundreds of
  years due to government restrictions