An increase in both social and economic inequality in Latin America in the 19th and 20th century stem from the declaration of independence era. The region did not have the cohesion put before by the Spanish colonial governance. The social setting was distorted by the fact that former provinces wanted central regional power under a federal republic (Nouzeilles et al., 96). The need to establish a complete political autonomy through creating new nation states change the social cohesion. The attempt to integrate the economy that began in the mid-20th century was actively by international communities such as United National Economic Commission for both Latin America and the Caribbean. Eventually, it paved the way for the Central America common market. However, despite the favorable economic condition that existed in the Post World War II period, there were several challenged that emerged and undermined the integration efforts. There was war, conflicting interest with that of the neighboring United States, and political crisis. As a result, integration was stopped until the 1980’s after the Esquipulas II Accord that helped to bring about peace again in the region (Nouzeilles et al., 48) The challenges distorted the social cohesion and put a strain on the economy of Latin America. After the signing of the Guatemala protocol by the countries of Central America, it helped to boost economic as well as social integration through the banner of free trade. The regional economic groups helped to streamline processes with the aim of restoring the connection of Latin America to global commerce by creating the most advantageous means.
The position of the Middle Class
In some larger Latin countries like Brazil and Argentina, the Industrial working class was more evident due the size of internal market because it made industrialization feasible and created low average purchasing power (Nouzeilles et al., 67) . The advances in economic growth as well as political stabilization were in most Latin America countries by the beginning of the 20th century. There were an array of challenges that made Mexico experience negative impact on its economic growth. In addition, Mexico was going through political turmoil during the first ten years of the Mexican Revolution. While there were some partial changes along the way, new challenges kept coming up. The challenges constituted both internal and external influences such as steady population increase and it affected the country’s economy. In Mexico the aristocratic culture absorbed the middle class. Social policy in Mexico helped the peasant to acquire more land as well as stability as compared to the middle class in Brazil and Argentina.
Nouzeilles, Gabriela, et al., eds. The Argentina reader: history, culture, politics. Duke University
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