“The Great Depression of 1929 presented Latin America with opportunities as well as problems.” Discuss.

In their responses, candidates are required to offer a considered and balanced review of the impact of the Great Depression in Latin American countries. They could argue that, while it posed some serious problems, it became a chance to develop their national economies. The impact of the Depression on social and political aspects could also be relevant.

Indicative content

• The financial sector in Latin American countries suffered as access to foreign loans was almost non-existent; however, smaller national banks linked to production sectors developed to provide financial assistance (for example agrarian and industrial banks).
• Countries defaulted their foreign debt; in the longer term, the available capital was then used to develop national economies.
• Rise in unemployment and poverty levels could be considered.
• The fall in exports as well as the prices of Latin American primary products was dramatic for some countries (for example Cuba or Chile) but opportunities to promote and develop national industries developed.
• The emergence of more centralized government institutions and centrally planned economies to deal with the issues sometimes translated into effective solutions. However, greater bureaucracy and government interference could be seen as harmful.
• Some governments were politically weakened by the Depression and this contributed to the rise of military regimes.
• The rise of leftist movements and organizations demanding, among other changes, agrarian reform and greater political participation could be argued as an opportunity or a problem.

The above material is an indication of what candidates may elect to write about in their responses. However, the list is not exhaustive and no set answer is required.

Examiners are reminded of the need to apply the markbands that provide the “best fit” to the responses given by candidates and to award credit wherever it is possible to do so.

[20 marks]