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Monday, October 29, 2012

Consequences on Economic Orientation


For instance, the Nicaraguan revolution in 1979 can be directly traced to such historical land redistribution policies. Further, because the economy is export-led and dependent on the export of commodities, policies aimed at increasing exports often give more power to the rich land owners. This was the case in the early 1980s when growing debt caused the government to increase agro-exports that merely gave more power to large landowners. Foreign investment is essential to promote greater industrialization and export capabilities, but government efforts to modify economic policies have often resulted in conflict as surely as did many of the policies of the European colonizers. As Green (79) comments on the debt crisis of the 1980s, "The slump in Latin America's economy which followed the Mexican collapse contributed to one war and several bloody IMF riots.
For example, the "Great Dying" that happened when Europeans first colonized the regions occurred again in the 1980s when a rush of half a million gold prospectors introduced disease and ecosystem destruction to the Yanomami Indians. Further, the economic orientation of many countries in the regions mandate continuous exploitation of natural resources and industrialization aimed at increasing export capabilities. This demands an infrastructure that can support high levels of commodities production, an infrastructure that is often imposed on native populations by the government in cooperation with foreign investors. The consequences of this development often annihilate the indigenous populations and habitats where it occurs.

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