Latin America's Role and the Post-War Global Transformation

World War II's Impact on Latin America

During World War II, the process of import substitution was significantly accentuated in Latin America. Since 1939, nations in the region obtained favorable prices for exports of food and commodities, as demand increased during the six years of intense warfare. The USA urged Latin American nations to cooperate in the war effort and purchased their vital mineral inputs. Thus, the war allowed Latin American nations to accumulate foreign exchange reserves, besides stimulating the process of industrialization.

The Rio Conference and Latin American Alignment

During the conflict, most Latin American nations aligned with the Allies. From the U.S. entry into the war in 1941, these nations led the break with the Axis countries. This break was expressly recommended by the USA in January 1942 during the Rio Conference. Consequently, countries like the Caribbean nations, Mexico, and Brazil declared war on Germany.

Argentina and Chile, however, decided to remain neutral. This decision led to an increasing deterioration of relations with the USA. President Roosevelt criticized governments with pro-Nazi leanings or strong nationalistic character. Finally, in 1944, Argentina broke relations with the Axis and expelled the German ambassador. In 1945, Argentina declared war, satisfying the recommendations of the USA, which was a condition for admission to the United Nations.

The Post-War Global Order

In 1945, Europe presented a panorama of widespread destruction and devastation in its industries. The end of the war marked the demise of Europe's supremacy and the consolidation of the USA, whose industry had been transformed and emerged as the sole nation with nuclear weapons. President Truman decided to use "atomic diplomacy" with the obvious purpose of intimidating Stalin and downplaying Soviet intervention in Japan. In 1945, the USA dropped atomic bombs on Hiroshima and then on Nagasaki, leading to Japan's surrender.

Both Germany and Japan had to endure military occupation:

• Germany: Was demilitarized and subsequently divided into two entities: the Federal Republic of Germany (West Germany) and the German Democratic Republic (East Germany). Many Nazi war criminals found refuge in South America.
• Japan: Was not divided. Its emperor remained in power, but the U.S. occupation led to the demilitarization and democratization of the nation.

In 1945, delegates from 50 countries founded the United Nations (UN). The Economic Commission for Latin America and the Caribbean (ECLAC) was created in 1949, tasked with studying the continent's structural and productive aspects through statistics and surveys.