The Hegemony of the United States and the Underdevelopment of Latin America

Introduction

In his seminal work, "The Hegemony of the United States and the Underdevelopment of Latin America," Celso Furtado presents a compelling analysis of the historical and structural factors that have contributed to the underdevelopment of Latin America. Furtado argues that the region's underdevelopment is not simply a result of internal factors, but rather a consequence of the dominant position of the United States in the global economy.

The Historical Context

Furtado begins by examining the historical context of Latin America's underdevelopment, tracing its roots back to the colonial period. He argues that the region's colonial experience created a dependent economy, based on the extraction of raw materials and the importation of manufactured goods. This dependency was further entrenched by the rise of the United States as a global economic power in the late 19th and early 20th centuries.

The Structural Factors

Furtado identifies several structural factors that have contributed to Latin America's underdevelopment. These include:

• The unequal distribution of land and wealth: Latin America is characterized by a highly unequal distribution of land and wealth, with a small elite owning the majority of the land and resources. This inequality has led to a lack of investment in productive sectors of the economy and has perpetuated poverty and social injustice.
• The dependence on primary exports: Latin America's economies are heavily dependent on the export of primary products, such as oil, minerals, and agricultural commodities. This dependence makes the region vulnerable to fluctuations in global commodity prices and limits its ability to diversify its economy.
• The lack of industrialization: Latin America has historically lacked a strong industrial base, which has made it dependent on imports of manufactured goods. This has limited the region's ability to create jobs and generate economic growth.
• The influence of foreign capital: Foreign capital has played a significant role in Latin America's economy, but it has often been exploitative and has not contributed to the region's development.

The Role of the United States

Furtado argues that the United States has played a central role in perpetuating Latin America's underdevelopment. He identifies several ways in which the United States has exercised its hegemony over the region, including:

• Economic dominance: The United States is the dominant economic power in Latin America, and its corporations have a significant presence in the region's economy. This dominance has allowed the United States to extract profits from Latin America and to shape its economic policies in its own interests.
• Political intervention: The United States has a long history of intervening in the politics of Latin America, often supporting authoritarian regimes that have served its interests. This intervention has undermined democracy and human rights in the region and has made it difficult for Latin American countries to pursue independent development policies.
• Cultural influence: The United States has a powerful cultural influence on Latin America, which has shaped the region's values and aspirations. This influence has contributed to the spread of consumerism and individualism, which have undermined traditional values and social solidarity.

The Way Forward

Furtado concludes by arguing that Latin America needs to break free from the hegemony of the United States in order to achieve genuine development. He calls for a number of reforms, including:

• Land reform: Land reform is essential to address the inequality that is at the root of Latin America's underdevelopment. By redistributing land to the peasantry, it is possible to create a more just and equitable society and to boost agricultural production.
• Industrialization: Latin America needs to industrialize in order to diversify its economy and create jobs. This will require investment in infrastructure, education, and technology.
• Regional integration: Latin American countries need to cooperate with each other to reduce their dependence on the United States and to create a more balanced regional economy.
• Sovereignty: Latin American countries need to assert their sovereignty and independence from the United States. This means resisting economic, political, and cultural domination and pursuing independent development policies.

Conclusion

"The Hegemony of the United States and the Underdevelopment of Latin America" is a powerful and insightful analysis of the historical and structural factors that have contributed to Latin America's underdevelopment. Furtado's work is essential reading for anyone interested in understanding the region's past and present and in finding ways to achieve a more just and sustainable future.