Historical Transformations: Liberalism, Crises, and Global Change
Liberalism Defined
Liberalism is a philosophy or set of ideas that defends the basic principles of individual liberty.
Impact of WWI and the 1929 Crisis
The First World War and the crisis of 1929 caused the collapse of the liberal model of government and led to the development of new forms of crisis management. The crisis brought down international prices of raw materials, decreased production, and increased prices of imported products. It meant the breakdown of U.S. stocks (where papers of the most important companies in the world are traded).
Causes of the 1929 Crash:
- Series of bad harvests
- Excessive development of long-term credit
- Lack of reinvestment of profits
Consequences of the 1929 Crash:
- Provoked a run on banks worldwide
- Unemployment and underemployment
- Violently reduced global business (closing economies)
Social Consequences and the New Deal
The 1929 world economic crisis had significant social consequences. Franklin D. Roosevelt won elections and implemented the New Deal. Its objectives were to overcome the crisis, accompanied by public bodies that would regulate prices and trade, and provide municipalities with public works. The success of this led to Roosevelt’s re-election.
Consequences of the Depression in Latin America
The crisis broke the agro-export model as European markets closed.
Politically, the oligarchic order broke down and led to the populist model or populism.
Understanding Populism
Some considered it a deformation of liberalism or socialism. It questioned capitalism and proposed alternatives to liberal mass democracy (government defined by the people).
Populism featured charismatic leaders who often took power by military coup and established ties with the people. While present in Europe, in Latin America, it had more social and multiclass content.
The Era of Imperialism (1871-1914)
Imperialism was strong from 1871 to 1914, ending when the First World War began in 1914.
E. Hobsbawm defines it as the “age of imperialism,” where the most important economic factors were obtaining raw materials, searching for new markets, and opportunities for capital investment.
European Powers and Colonial Division
European powers conquered and divided non-European territories. In Central and South America, they respected independence, but in Africa and Asia, they conquered territories and formed new colonial empires.
In 1884-1885, colonial powers met in Berlin to establish the mechanisms that allowed the division of Africa.
Russian Civil War (1918-1921)
The Red Army fought the White Army (Tsarist Army).
- White Army: Supported by foreign powers (England and France), the industrial bourgeoisie, and landowners.
- Red Army: Supported by peasants. Measures taken by the government included nationalizing all industries and requiring farmers to deliver their grain surplus. Any political party except the Communist Party was prohibited.
Liberalism in Argentina (1853-1916)
Argentine liberalism went through three stages:
- 1852-1862: From the constitution establishing the national state.
- 1862-1880: Immigration and Public Education.
- 1880-1916: Agro-export model and Argentine liberalism (Positive and negative aspects).
Aspects of Argentine Liberalism (1880-1916)
Positive Aspects:
- Establishment of the legal and institutional state.
- Birth of the national idea.
- Long-term economic plan.
Negative Aspects:
- Power maintained through electoral fraud.
- Social pyramid:
- Aristocratic minority (owners of money)
- Middle class
- Poor