SOUTH AMERICA
OVERVIEW
Most South American countries were colonized by Spain over the course of the 16th to 17th centuries, won their independence in the early 19th century, and are predominantly Spanish speaking and Catholic today. The exceptions are Brazil, Suriname, and Guayana. Brazil, boasting the largest population and land area in South America was a Portuguese colony from 1500 to the early 19th century; and the small non-Latin countries Suriname (former Dutch colony) and Guyana (former British colony), only gained independence in the 20th century.
Besides Spanish, Portuguese, Dutch, and English, hundreds of indigenous languages are spoken by sizable populations throughout South America, especially in Peru, Bolivia, and Ecuador. The populations of Argentina, Chile, and Uruguay are largely European (mostly Italian and Spanish); in most other South American countries’ the majority of the population is mestizo (of European and indigenous descent); and Brazil is a melting pot of indigenous, European, and African ethnicities (millions of African slaves were brought to Brazil from the 16th-19th centuries.)
Politically, South American countries are democratic, although historically they have been troubled by military coups, dictatorships and corruption. In recent years, Colombia, Ecuador, Bolivia, and Paraguay have been rated as “partly free” by the Freedom House report on political freedoms, and crisis-stricken Venezuela has been rated as “not free”. Corruption is reported to be high in all South American countries except Uruguay and Chile, per Transparency International’s Corruption Perceptions Index.
South America’s main exports are primary commodities such as sugar, bananas, coffee, cocoa— as well as oil, natural gas, and petroleum. Venezuela— although currently poverty-stricken because of economic and politic crisis— has by far the most oil reserves, Brazil is a world leading exporter of beef, soy, and coffee (conducting most trade with China), Argentina is a leading beef producer, and Colombia is a top coffee exporter.
Brazil and Argentina rank highest for GDP and are the most influential states in South America, and both are members of the G20. Brazil has one of the world’s largest economies, larger than Canada’s by nominal GDP. Chile and Urugay have the highest GDP per capita PPP (an indication of standard of living), and Chile ranks highest on the Human Development Index. Uruguay ranks as one of the best democracies in the world, per Freedom House’s index.
The poorest countries in South America by GDP per capita are Venezuela (currently in economic crisis) and Bolivia— although poverty and wealth inequality are problems throughout South America, with most countries’ poverty rate hovering around 20%.
INTERNATIONAL ORGANIZATIONS
The OAS (Organization of American States)— established in 1948 to foster democracy, human rights, security and development — includes all South American countries as well as the US and Central American countries, and provides an important platform for political dialogue.
Most South American countries belonged until recently to the Union of South American Nations, which has now been replaced by Prosur (Forum for the Progress and Integration of South America)— and belong to the ALADI (Latin American Integration Association) economic alliance.
Argentina, Brazil, Paraguay, and Uruguay belong to South America’s leading trade bloc, the Southern Common Market (Mercosur). Bolivia, Colombia, Ecuador, and Peru make up the Andean Community free trade bloc.
The EU-Mercosur Free Trade Agreement, reached in 2019, is of the largest free trade areas in the world.
A BRIEF OVERVIEW OF RECENT HISTORY
BEFORE 20TH CENTURY
In the Pre-Colombian era (before the arrival of Christopher Columbus in 1492) South America’s indigenous civilizations included the Inca Empire, which covered much of the Andean region (most of South America’s West coast) in the 15th century. Although the empire was overtaken by the Spanish in the 16th century, some of the advanced infrastructure they built is still in use today, and the language of the Incan Empire, Quechua, is spoken by millions today in South America.
The Spanish and Portuguese ruled South America for three centuries. Almost all South American countries achieved independence in the first decades of the 1800s. Venezuelan statesman Simon Bolivar (Bolivia’s namesake) was a leader in the revolutionary movement, and was president of Gran Colombia — a united state including today’s Colombia, Venezuela, Ecuador, and Panama— and was also dictator of Peru.
WORLD WAR I
South America did not play a large role in World War I, and many countries remained neutral. Brazil was the only South American country to enter the war directly, joining the Allies because of the German sinking of merchant ships.
INTERWAR
In the 20s and 30s, many South American countries experienced a period of industrialization.
WORLD WAR II
In World War II, Brazil was the only South American country to send troops abroad. South American countries were used strategically by both Allied and Axis powers.
POSTWAR
In the postwar period, South American countries were forced into a closer relationship with the US.
In 1948, the Pan American Union became the Organization of American States, a group of the countries of North, Central, South America and the Caribbean, with the purpose of strengthening peace and security in the area.
With the rise of Cold War tensions and fears of communism spreading into the American hemisphere (as it did in Cuba), the US pressured South American countries to sever ties with the Soviet Union, and many did. The US also worked to quash communist and leftist movements in South America that arose in the postwar period, and supported military dictators in Peru, Venezuela, and Paraguay.
In 1961, in an attempt to improve relations with South America, US President John F. Kennedy launched the Alliance for Progress, with the goal to establish economic connections between the US and South America and to raise the standard of living in South America, with improvements in education, economics, and democracy. The program brought some improvements, but was ultimately viewed as a failure.
LATE 20TH CENTURY
In the second half of the 20th century, many South American countries experienced a period of great instability and violence, detailed below.
CONFLICT IN COLOMBIA
Beginning in 1948, Colombia suffered a brutal ten-year civil conflict between the liberal and conservative political parties called La Violencia, which resulted in the deaths of 200,000 people. This conflict set the stage for the decades-long conflict beginning in the 1960s between the government’s authority and into independent armed challengers, which included Marxist guerrilla groups (FARC, ELN, EPL)— which aimed to redistribute wealth from the rich to the poor— and the far-right paramilitary groups (AUC, MAS) counteracting them —a conflict which is inextricably entwined with the illegal drug trafficking economy, and with the United States.
CONFLICT IN CHILE
The 1973 military coup to oust the socialist government— in which the US played a covert role — led to a brutal seventeen year long regime under right-wing military dictator Augusto Pinochet. The Pinochet era brought economic reforms (shaped by the US-educated “Chicago Boys” in his administration) but committed human rights violations. Return to democracy in the 1980s brought the socioeconomic reforms which have made it stable and prosperous today.
CONFLICT IN ARGENTINA
In 1976, Argentina was overtaken by a military junta which launched the Dirty War against Marxism and Peronism, in which thousands were “disappeared” or murdered on often arbitrary suspicions of subversion against the government.
FALKLAND ISLANDS WAR
In 1982, Argentina invaded the Falkland Islands/Malvinas Islands (off the southeast coast of Argentina) which had been occupied by the UK since the 1800s. The UK recaptured the islands in a conflict that killed an estimated 900, but the question of the islands’ determination is still contested.
SHINING PATH PERU
From 1980-2000, the Moaist insurgency group Shining Path (Sendero Luminoso), seeking to incite a communist revolution, led a campaign of violence which led to the death of almost 70,000 people- largely in the indigenous population. Alberto Fujimori (born in Peru to Japanese immigrants) — who served as President from 1990-2000 was the first democratically elected president to be convicted of human rights abuses over atrocities during the era.
1980S DEBT CRISES
In the 1980s, many Latin American countries struggled to repay their foreign debt, causing a debt crisis.
REGION BY REGION
ANDEAN
NORTHERN
VENEZUELA
COLOMBIA
Part of Gran Colombia led by Simon Bolivar in the early 19th century, Colombia and Venezuela have both faced major instability in recent years, with Venezuela currently in crisis.
The surge in drug trafficking in Colombia began in the 1970s (first predominantly marijuana, then cocaine), and cartels including the infamous Medellin cartel, led by Pablo Escobar, led a campaign of assassinations (by sicararios, paid assassins) and kidnappings.
Colombia today is the world’s largest cocaine producer, (with most of the coca grown in Peru) and its enormous illegal drug trade accounts for an estimated $10 billion per year. The US and Colombia are still working together to reduce the cultivation of coca.
Colombia is a top coffee (3rd largest producer in the world) and cut-flower producer, conducting most trade with the US, China, and Mexico.
In 2016 the Colombian government signed an historic peace deal with FARC, which demobilized, but violence has continued.
Venezuela is currently in a humanitarian crisis; millions have fled the country in recent years due to the collapse of economy and infrastructure leading to shortages of food, water, and medicine.
The roots of the crisis are in economic mismanagement in recent decades under former leftist President Hugo Chavez and current President Nicolas Maduro: once the wealthiest nation in South America due to its oil reserves, the country experienced catastrophic economic decline after the global oil crash in 2014, hyperinflation, and a collapse of basic infrastructure. The country is also in a presidential crisis since January 2019: the legitimacy of Maduro’s election was contested, and leader of the National Assembly (Venezuelan congress) Juan Guaido declared himself the de facto President of the country. This is a claim which the US, most of Latin America and Western Europe support, while China, Russia, and Iran support Maduro.
The Vargas region of Venezuela is prone to flooding and landslides; in 1999 the region was struck by devastating floods, killing tens of thousands of people.
CENTRAL & SOUTHERN
ECUADOR
PERU
BOLIVIA
CHILE
ARGENTINA
This region boasts many of South America’s huge tourist draws: Peru’s Incan site Machu Picchu, the natural splendors of the Andes, Argentina’s glaciers, Bolivia’s salt flats, Chile’s Torres del Paine, and biodiversity haven Galapagos islands (owned by Ecuador).
ARGENTINA
Unlike most of South America, Argentina has a mostly European population (predominantly Italian and Spanish) with a very small indigenous minority. Now a member of the G20 and the second largest economy in South America—although currently in an economic crisis— and one of the world’s leading food producers, Argentina has had a tumultuous political and economic history since the 20th century. It began the 20th century as one of the wealthiest countries in the world, due to rich natural resources and foreign investment from Europe. Economic disaster struck in the 1930s, paving the way for faith in strongman Juan Peron’s promises of a “New Argentina” taking a middle course between capitalism and communism, with higher wages and social security. His wife First Lady Eva (Evita) Peron championed women’s suffrage and the rights of the working class. Peronism (broadly, populism) is still a movement today.
Inflation reached crisis level in the 1980s, and the country’s currency collapsed in 2002 after it defaulted on its debts. The economy made great gains since then, but has been plagued by recurrent problems and is currently in crisis.
CHILE
Chile’s highest standard of living is among the highest in South America, and it has enjoyed stability since the end of the Pinochet coup. Its GDP per capita is the second highest in South America (after Uruguay) and its Human Development Index is the highest for South America.
Chile today is a top exporter of minerals, and the world’s leader in copper exports.
PERU
In late 2022, the Peruvian president was ousted by congress and arrested for an attempted coup. He was replaced by Dina Boularte, the first female president in the country’s history. Since this crisis, the country has experienced unrest and violence against protestors.
EASTERN COUNTRIES
NORTHERN
GUYANA
SURINAME
(FRENCH GUIANA)
Not included in the designation “Latin America”, and the only countries in South America where Latin languages are not predominantly spoken, (Guyana is English-speaking and Suriname is Dutch-speaking)— these are small, developing countries which only gained independence in the mid-20th century. (French Guiana is still a territory of France.)
The countries are among the poorest in South America— although recent discovery of Guyana’s off-shore oil reserves has led to speculation the country could be bound for an economic boom.
CENTRAL
BRAZIL
URUGUAY
PARAGUAY
BRAZIL
Rich in natural resources and heavily industrialized, Brazil is the most influential country in South America, with almost half the land area and population of the continent and by far the largest GDP, one of the world’s largest economies, and a strong military. It is a member of the G20 as well as BRICS (an association of the world’s five emerging powers, along with Russia, India, China, and South Africa).
Corruption has been a prominent issue in Brazil, especially in recent years. In the so-called Operation Car Wash corruption investigation of 2014, former President Liuz Inacio Lula da Silva (commonly called Lula)— Brazil’s first working class president— was imprisoned, and first female President Dilma Rousseff was impeached, for what many believe to be unfair charges, as well as many other politicians and businessmen being investigated for a culture of bribery and favors.
In addition to producing most of the world’s coffee, Brazil’s major exports are soybeans and iron ore, with China as the country’s top trading partner, followed by the US.
Brazil is troubled by extreme wage inequality; poverty and crime are major issues in the country today. The country has been criticized for allowing the Amazon Rainforest to be destroyed irreparably for short-term economic gains.
URUGUAY
Uruguay is the most stable country in South America, with high ratings for political rights and low levels of corruption and inequality. It ranks among the most free democracies in the world, per Freedom House. According to Pew Research, the country is by far the most secular in Latin America, with a long historical separation of church and state.
