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The Good Neighbor Policy: United States-Latin American Relations in the 1930s

Introduction

The Good Neighbor Policy was a nonintervention strategy between the United States and Latin America, especially Mexico and Argentina. The policy was an attempt by the United States to recover trust with the Latin American region.[1]. The policy had intentions of not tampering with Latin American governments and policies. The Great Depression did affect the United States and Latin America. The United States experienced an economic depression after the market crash, affecting Latin America. To address this, Franklin Roosevelt tried to repair the markets of Latin American nations by adopting the Good Neighbor Policy. Despite a few challenges and drawbacks, the Good Neighbor Policy had political and economic benefits for the United States and Latin American nations. The Good Neighbor Policy was a successful foreign strategy that improved the relations between the United States and Latin America, especially with Argentina and Mexico, by promoting cooperation, nonintervention, and trade during the 1930s and 1940s.

Before implementing the policy, the paper will provide an overview of the Good Neighbor Policy and the relationship between the United States, Argentina, and Mexico. It will also assess the policy’s implementation in the two countries and its impacts; the paper will then discuss the long-term implications of the policy as well as its challenges and criticisms.

Historical context leading to the policy

The United States’ history of military intervention and economic domination in Latin America caused resentment and hostility among the South American countries. Additionally, its security in the Western hemisphere was at risk due to the growth of totalitarianism and dictatorship in Europe and Asia. Therefore, the nation had to do something to improve its relationship with Latin American countries to gain support and cooperation in the face of the global crisis. As a result, President D. Roosevelt was motivated to adopt a new approach to foreign policy in Latin America by using cooperation, nonintervention, and mutual respect, resulting in the Good Neighbor Policy.

Background on the Good Neighbor Policy

Origin and Development

Among the reasons that President Roosevelt adopted the Good Neighbor Policy was to counter the increasing threat of the Axis Authorities to the Western Hemisphere. With Imperial Japan and Nazi Germany militarized and aggressive foreign policy in the late 1930s, the United States officials did seek to safeguard South and North America from potential attack. When the Second World War started in 1939, President Roosevelt and several United States leaders thought that any likely attack on the United States would happen via Latin America, whose nations were economically and militarily weaker compared to the United States.[2]. Argentina and Brazil specifically had a robust trade relationship with Nazi Germany, and Argentina did harbor Nazi/fascist sympathies and anti-American sentiments. Therefore, the Good Neighbor Policy sought to wean the nations from their diplomatic association with the Axis Authorities and have them into the circle of Allied Powers and the United States during World War II.

Besides reducing military intervention, the Good Neighbor Policy enabled the United States to revise its trade partnership with key Latin American countries. The mutual trade agreements did seek to improve the declining economy of the United States. Within the Good Neighbor Policy’s economic element, there was a considerable increase in the quantity of exports from the United States to Latin America. Apart from the Good Neighbor policy helping the United States substitute its diminishing economic trade with that of the wealthiest and most prominent nations such as Mexico, Brazil, and Argentina, it did help bring the nations into a military association with the United States.

Key Principles and Objectives

The policy aimed to respect the sovereignty and independence of Latin America’s internal affairs by utilizing nonintervention and non-interference measures. It also wished to foster economic growth and social development in the region by providing financial and military aid and signing trade agreements. The third objective was to seek the support and collaboration of Argentina and Mexico against the threats of fascism and totalitarianism. The last objective was to improve the relationship between Mexico, Argentina, and the United States.

The United States and Argentina

Overview of United States-Argentina relations pre-Good Neighbor Policy

Before the United States-Argentina relations, the United States had often tried to interfere with Argentina’s internal affairs; for instance, during World War I, they were pressured to break diplomatic ties with Germany. In the context of World Wars and the spread of dictatorship, the United States viewed Argentina as a potential rival or ally. The period is characterized by distrust, tension, and conflict between the two countries. While the United States pursued its strategic and commercial goals in the region, Argentina sought to assert its sovereignty and economic interests. Argentina also challenged the United States leadership, and they resisted when they tried to impose military interventions or sanctions on other Latin American countries, such as Mexico and Cuba. When all seemed not to be working, the United States adopted a new approach based on nonintervention and mutual respect, giving birth to the Good Neighbor Policy.

Implementation of the Good Neighbor Policy in Argentina

The implementation of the Good Neighbor Policy by Roosevelt and his successor was carried out through diplomatic, economic, and cultural initiatives as a move to foster cooperation and improve bilateral relationships. One of these plans was the recognition of Juan Domingo Peron’s government. Secondly, the United States negotiated a trade agreement that reduced tariffs and increased exports between the two countries. The third initiative was to establish education and cultural exchange programs. Lastly, the policy was executed through cooperation in defense of the Western Hemisphere during World War II, including providing military aid and equipment to Argentina. The policy marked a substantial shift in the United States-Argentina relationship from confrontation and intervention to partnership and respect, contributing to the region’s stability.

Impacts of the Policy on United States-Argentina Relations

Immediately after implementing the Good Neighbor Policy, Argentina- United States relations received mixed impacts. In one instance, the policy improved diplomatic ties and cultural ties between the two nations, as the United States also respected Argentina’s sovereignty and neutrality during the Second World War. The United States also supported the nation’s permanent seat on the United Nations Security Council in 1945. The policy also facilitated cultural change through educational programs, Hollywood films, and radio broadcasts portrayed in Argentina.

On the other hand, the policy failed to address economic and ideological differences that caused the strain between the two nations in the first place. Argentina, as a significant exporter of agricultural products, resented the United States trade barriers and tariffs that favored domestic producers and limited its access to the United States market. Additionally, Argentina pursued a populist and nationalist agenda that clashed with the values and interests of the United States in the region, especially after Juan Perón came to power in 1946. His rise to power challenged the United States’ domination and impact in the area due to his alignment with other anti-imperialist leaders and movements. As a result, the Good Neighbor Policy had a short-lived effect on the United States-Argentina relations, with the beginning of the Cold War soon replacing the spirit of collaboration and nonintervention with confrontation and suspicion.

The United States, Mexico

Overview of United States-Mexico relations pre-Good Neighbor Policy

Before the implementation of the Good Neighbor Policy, the United States had often interfered with Mexico’s internal affairs, especially during the Mexican Revolution that occurred between 1910 and 1920, the occupation of Veracruz in 1914, and the penal expedition against Pancho Villa, which happened between 1916 and 1916. The United States also supported the regime of Porfirio Diaz, who ruled Mexico for over three decades with an iron fist while favoring foreign interests[3]. The two neighbors had resentment, distrust, and conflict issues during this period. Even though the United States pursued its economic and strategic interests, Mexico sought to reassert its national identity and sovereignty. As a result, it made the United States view Mexico as a possible threat orally in the situation of the World War and the rise of fascism.

 Implementation of the Good Neighbor Policy in Mexico

Roosevelt and his successors implemented the Good Neighbor Policy using diplomatic, cultural, and economic initiatives to improve the bilateral relationship and foster cooperation. One of the initiatives that facilitated the enactment of the Good Neighbor Policy was the recognition of Lázaro Cárdenas’ government, which nationalized the oil industry in 1938 and implemented social reforms.[4]. The second initiative is negotiating the settlement for the takeover of the United States oil companies in Mexico, avoiding the major crisis and paving the way for future trade agreements. The third initiative promotes solidarity and collective security against external threats by establishing the inter-American scheme. The United States and Mexico also exchanged cultural missions, scholars, artists, and students, enhancing mutual understanding and appreciation. World War II also facilitated the collaboration in the defense of the Western Hemisphere, including the participation of Mexican troops in the Philippines and the creation of the bracero package, which permitted Mexican workers to work provisionally in the United States’ agricultural sector.[5]. Therefore, implementing the Good Neighbor Policy facilitated a significant shift in the United States’ relationship with Mexico, from domination and intervention to respect and partnership, laying out the foundation for future integration of North America through trade, migration, and security cooperation. Therefore, the Good Neighbor Policy caused a shift in the United States-Mexico relationship from one full of intervention and domination to one of partnership and respect.

Impacts of the policy on United States-Mexico relations

Agricultural Reforms

The Good Neighbor Policy accelerated agricultural reforms and the nationalization of the oil industry. From 1934 to 1940, Mexican President Cardenas conducted reforms seeking to accelerate agricultural reforms, giving an excess of 17 million hectares to a million farmers; the government also nationalized the oil industry sector, and a government-run monopoly was established.[6]. Adopting both reforms also affected the United States’ foreign interests. The reforms were based on the political discourses created during the Revolution, though, ironically, the new United States regime played a key role.

Enhanced Trade

The Good Neighbor policy was created because the United States branched from seclusion and developed relationships with Mexico to enhance trade. The United States has specific concerns about the nation’s trade due to the challenges established by the conflict between China and Japan, which started in 1937, World War II in 1939, and eventually, the diplomatic and military efforts dictated by the United States’ entrance to the conflict in 1941. The institution of export-import banks initially inspired the United States foreign trade extension in 1934. In addition, trade was stimulated by mutual trade agreements between foreign nations and the United States to decrease tariff duties. Therefore, the Good Neighbor policy did adopt some measures to bring about mutual trade and financial associations between the United States and Mexico.

 Foreign Policy

After President Roosevelt assumed office, he devoted a section of his administration’s foreign policy to the Good Neighbor Policy. The policy was meant to progress Mexico’s economic conditions. Roosevelt withdrew financial advisors and troops and renounced treaty agreements that were found to be intolerable by Mexico (like the Platt Amendment)[7]. He also left the Roosevelt Corollary. Such renunciations made the nation to trust the United States and believe they had good intentions. The Convention of the Rights and Responsibilities of States discussed the nonintervention issue. The convention made each state equally juridical, and no country could intervene in another country’s external and internal affairs. It would indicate that only nations recognized by the United States legally and not nations like Cuba would cause issues for the United States. However, the two significant aspects of the Good Neighbor Policy entailed the Reciprocal Trade Agreement.

Economic development

The Good Neighbor Policy received a positive reception in Mexico since it embraced a transition to new thinking concerning the region’s economic development. From Argentina to Mexico, from the 1920s, an increasing number of leaders, professional economists, army officers, and industrialists believed that a form of government intervention in the economy was needed. Significant resources like mines and oil had to be under public control, and the functioning of the global trade system was harmful to the exporters of raw materials and agricultural goods.[8]. It resulted in the financial vulnerability of the region, as proved by the worldwide economic depression. Hence, agricultural exporters needed a unique treatment in global trade. Moreover, policymakers and industrialists in Mexico were persuaded that the route to financial success relied on the growth of the local industrial sector. Such ideas suit President Roosevelt’s notion of “offering Latin America a share.”

Drawbacks of the Good Neighbor Policy

The Policy Failed to Meet its Objectives

Among the policy’s limitations was that its goals were not regularly met. The underdeveloped infrastructure of Latin America sometimes hindered the economic association between the United States and Latin America. In addition, some resisted the Good Neighbor Policy within the United States. The opposition emanated from economic groups and American politicians who sought to uphold their long-held policy of meddling with the internal issues of Latin American nations.[9]. The policy was terminated after a series of events, the most prominent being the start of World War II and after Dwight D. Eisenhower was elected as the United States president. Moreover, in the 1950s, Latin American countries began to pursue more independent foreign policies. Terminating the Good Neighbor Policy marked the transition in the United States’ foreign policy to an interventionist position across Latin America.

Legacies and Long-Term Impacts of the

The Good Neighbor Policy was initiated to improve relations and cooperation with the U.S.A. Mexico and Argentina. The implementation of the policy results in various long-term impacts and legacies. Firstly, the policy ended the occupations and interventions of the U.S. military in Argentina and Mexico, renouncing the U.S. right of unilateral intervention at the Montevideo Conference. Secondly, it increased the U.S. trade and investment in Latin America, as well as cultural and educational exchanges, through the diplomacy of Secretary of State Cordell Hull and the creation of the Office of the Coordinator of Inter-American Affairs. Thirdly, the policy secured Mexico’s support for the U.S. during World War II, as well as their participation in the United Nations and other regional organizations. Fourthly, it promoted a sense of mutual respect and goodwill between the U.S., Mexico, and Argentina and reduced the influence of European powers and ideologies in the region. It paved the way for future U.S. initiatives and policies in the nations, such as the Alliance for Progress, the Organization of American States, and the Panama Canal treaties.

Conclusion

Under President Roosevelt, the United States pursued the Good Neighbor Policy, among the nation’s foreign policies that wanted to improve the relationship between Mexico, the United States, and Argentina. The policy sought to reduce military interference in the nation’s conflicts and improve cultural interchange and economic cooperation among the region’s states. The Good Neighbor Policy was adopted by the United States for various reasons, including the requirement to gain support from Latin American nations for the participation of the United States in the Second World War and the objective to stop the increasing rate of communism across the United States. The Good Neighbor Policy offered both an essential semantic and a chance for Latin Americans to promote their agenda in association with the United States and even the global community.

Bibliography

Alan McPherson, “Herbert Hoover, Occupation Withdrawal, and the Good Neighbor Policy,” Presidential Studies Quarterly 44, no. 4 (December 2014): 623–639.

Chung, Chien-peng. “The “Good Neighbor Policy” in the Context of China’s Foreign Relations.” China: An International Journal 7, no. 1 (2009): 107-123.

Fredrick Pike. FDR’s Good Neighbor Policy: Sixty Years of Generally Gentle Chaos. 2010.

Friedman, Max Paul. “The Good Neighbor Policy.” 2018.

Hall, Michael R. “The Good Neighbor Policy and the Americas.” A Companion to Franklin D. Roosevelt (2011): 542-563.

Maria José Canelo. Producing Good Neighbors: Carmen Miranda’s Body as Spectacular Pan-Americanism. 2014.

Richard Candida Smith. The “Good Neighbor Policy” in United States Politics and Governance. 2023.

Scott, James Brown. “The Good Neighbor Policy.” American Journal of International Law 30, no. 2 (2017): 287-90. doi:10.2307/2191097.

Tizoc Chavez. “The One Bright Spot”: Presidential Personal Diplomacy and the Good Neighbor Policy.2021.

Turtil, Robert. “Good Neighbor Policy.” PsycEXTRA Dataset, 2004.

Woods, Randall Bennett. The Roosevelt Foreign-Policy Establishment and the” Good Neighbor”: The United States and Argentina, 1941–1945. University Press of Kansas, 2021.

[1] Turtil, Robert. “Good Neighbor Policy.” PsycEXTRA Dataset, 2004.

[2]Alan McPherson, “Herbert Hoover, Occupation Withdrawal, and the Good Neighbor Policy,” Presidential Studies Quarterly 44, no. 4 (December 2014): 623–639.

[3]Fredrick Pike. FDR’s Good Neighbor Policy: Sixty Years of Generally Gentle Chaos. 2010.

[4]Woods, Randall Bennett. The Roosevelt Foreign-Policy Establishment and the” Good Neighbor”: The United States and Argentina, 1941–1945. University Press of Kansas, 2021.

[5] Chung, Chien-peng. “The “Good Neighbor Policy” in the Context of China’s Foreign Relations.” China: An International Journal 7, no. 1 (2009): 107-123.

[6]Friedman, Max Paul. “The Good Neighbor Policy.” 2018.

[7]Richard Candida Smith. The “Good Neighbor Policy” in United States Politics and Governance. 2023.

[8]Maria José Canelo. Producing Good Neighbors: Carmen Miranda’s Body as Spectacular Pan-Americanism. 2014.

[9] Tizoc Chavez. “The One Bright Spot”: Presidential Personal Diplomacy and the Good Neighbor Policy.2021.

 

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