Cold War Third World
Cold War Third World
1.1
HistoryAlive! World Connections Student E-book
Introduction
On January 9, 1964, a riot erupted in the Panama Canal Zone, a U.S.-controlled
territory in the heart of Panama. The trouble began when Panamanian students tried to
raise Panama's national flag at an American high school. American residents objected
and fighting broke out. The riots continued over the next three days as thousands of
Panamanians joined in. More than 20 people died in the unrest.
The riots in the Canal Zone reflected longstanding resentment of the U.S. presence in
Panama. The United States had controlled the Canal Zone since 1903. A treaty signed
that year gave the United States rights to the Panama Canal and the land around it “in
perpetuity” (forever). Since then, the United States had viewed the canal as essential to
international trade and American security.
President Lyndon Johnson blamed the riots on communist Cuba. He claimed that Cuba
was “sending guns, money, and agents into Panama” to encourage revolution. For the
people of Panama and the rest of Latin America, however, the riots were an expression
of nationalism. They saw the Canal Zone as a symbol of American imperialism.
The riots did have one positive effect, though. The United States began negotiations to
hand the canal over to Panama. It took many years, but in 1977 the United States and
Panama finally signed the Panama Canal Treaties. On December 31, 1999, Panama
gained full control over the canal.
The story of the Panama Canal riots is one example of the legacy of imperialism, which
took on new life during the Cold War. In this lesson, you will learn more about that
legacy and how it affected nations and people around the world.
Challenges for Poor Nations
In the decades after World War II, many nations in Africa and Asia gained independence
from European colonial rule. These new nations faced many challenges as they tried to
overcome the legacy of imperialism. Their futures were affected by the Cold War, as
competing superpowers sought to extend their power and influence throughout the
world.
Three Worlds During the Cold War, the two sides in the superpower struggle were
sometimes referred to as separate “worlds.” The capitalist nations of the West were
known as the First World, while the communist countries of Eastern Europe were the
Second World. Both sets of countries had advanced industrial economies and great
economic and political power. In economic terms, they were considered developed
countries.
Most countries, however, fell into another category, called the Third World. Because
these countries were in less advanced stages of economic development, they were
known as developing countries. It was among the developing countries of the Third
World that most Cold War conflicts took place.
The Third World Dilemma Many Third World nations were caught in the middle of the
superpower struggle. Some had clear ties to one side, but did not fully belong to either
camp. Other countries had less defined loyalties.
Many Third World countries had only recently shaken off colonial rule. Others—such as
those in Latin America—had been independent for longer but were still struggling.
These nations faced many problems. Most suffered from conditions of extreme poverty
and social inequality. Often, a small minority of citizens held most of the wealth and
power. By controlling the reins of government, this upper class was able to stifle reforms
that might help the poor and benefit the nation as a whole.
In the 1950s and 1960s, however, a number of nationalist leaders emerged in the Third
World. These leaders wanted to build stronger, more developed countries. They also
wanted to reduce the influence of foreign powers over their affairs. At the same time,
they also needed aid and assistance from wealthier nations.
If a country accepted aid from one of the superpowers, though, it risked falling under
that superpower’s control. It also might prompt a hostile reaction from the other side.
The country could become the target of covert actions or other measures designed to
undermine the government and remove its leader. In this way, Third World nations were
often squeezed between East and West and became a battleground in the superpower
conflict.
Keystone Pictures USA / Alamy
Prime Minister Jawaharlal Nehru (left) of India and President Nasser of Egypt (right) were both leaders of
the nonaligned movement. They were nationalist leaders who refused to ally themselves with either side
in the Cold War.
The Nonaligned Nations A number of Third World leaders sought to distance their
countries from the Cold War struggle. They tried to follow a separate path—not aligned
with either East or West—that would allow them to grow and develop on their own
terms. This group of countries became known as the nonaligned nations.
One of the main leaders of the nonaligned movement was Jawaharlal Nehru, the prime
minister of India. Nehru had helped lead his country to independence from Great Britain
in 1947. Now he wanted to ensure India’s independence from both superpowers. Along
with other nonaligned leaders—such as President Gamal Abdel Nasser of Egypt and
President Sukarno of Indonesia—Nehru convened a conference at Bandung, Indonesia,
in 1955. There, 29 Asian and African states condemned colonialism and asserted their
freedom from restrictive Cold War alliances. In a speech, Nehru declared:
“If all the world were to be divided up between these two big blocs, what would be the
result? The inevitable result would be war. Therefore every step that takes place in
reducing that area in the world that may be called the unaligned area is a dangerous
step.”
—Jawaharlal Nehru, speech at the Bandung Conference, 1955
The nonaligned movement enjoyed some success. More than 110 countries eventually
joined the movement, trying to chart a middle course between East and West. By
remaining neutral, some nonaligned countries were able to get economic and political
support from both sides. However, the movement remained weak, in part because
member states quarreled with each other and failed to build a unified policy. It also
faltered because the superpowers continued to exert hegemony—a dominating
influence—over poor nations.
New Economic Patterns The superpowers often exercised their hegemony through
economic means. The United States and USSR sought to influence countries by
offering foreign aid or other forms of economic assistance, but that aid often came with
strings attached.
The superpowers put pressure on developing countries to adopt either socialist or
capitalist economic policies. The Soviets believed that the spread of socialism would
pull countries into the Soviet orbit and validate their economic model. The United States
assumed that the spread of capitalism would promote U.S. influence and benefit the
U.S. economy.
Choosing between these two economic systems was not easy for developing countries.
Many hesitated to join the West because it was associated with colonial rule. In
contrast, socialism held appeal because it claimed to be anti-imperialist and dedicated
to social and economic equality. Nationalist leaders were also impressed with the
USSR’s rapid economic development. Nevertheless, poor nations did not want to lose
the economic benefits the West had to offer.
Being in the capitalist bloc included access to loans from two powerful financial
institutions, the World Bank and the International Monetary Fund (IMF). These
institutions were created after World War II to help stabilize national economies and the
world financial system. Their loans helped Europe recover from the war, although the
Marshall Plan proved far more effective in that regard. In the decades that followed, the
World Bank and IMF provided other nations with loans. However, in most cases the
World Bank and IMF would only help capitalist nations. As such, they offered an
incentive to Third World countries to join the Western world.
The superpowers also sought access to the natural resources of the developing world.
Previously, colonial powers had simply taken minerals, crops, and other raw materials
from their colonies as they wished. Now, in the post-colonial era, they had to find new
ways to obtain those products. Both East and West offered economic rewards, such as
aid or special trade deals, in return for the right to extract Third World resources.
Western access mainly occurred through large companies known as multinational
corporations. These companies signed contracts with foreign states to make
investments and do business within their territory. These contracts often benefited the
companies more than the countries, however. For example, a multinational might make
huge profits mining diamonds in Africa, but pay only a small fraction of those profits to
the host nation.
Nevertheless, developing countries found foreign companies hard to resist because
they lacked the capital, technology, or know-how to extract the resources on their own.
Working with multinationals at least offered the prospect of increased trade and income.
It also brought wealth to some portions of society, usually the upper classes.
In the decades after World War II, Latin American countries sought to join the ranks of
developed nations. Some, like Brazil and Argentina, were relatively advanced, but most
had social and economic problems typical of the Third World. Most countries also
remained under the influence of foreign powers, particularly the United States. Latin
American nationalists wanted to remove these restraints and help their countries
develop. During the Cold War, these circumstances gave rise to political conflict
throughout the Americas. Three notable cases involved Guatemala, Cuba, and Chile.
Reform and Repression in Guatemala In 1950, Guatemala elected a new,
nationalist president, Jacobo Arbenz Guzmán. Guatemala had a long history of
authoritarian rule under military strongmen. The majority of its people were Mayan
Indians who suffered from extreme poverty. Arbenz set out to tackle these problems
through a series of reforms.
A key change under Arbenz was land reform. Most Guatemalans were peasant farmers
who owned little or no land. Arbenz took unused land from large landowners and
distributed it to poor peasants. But he soon ran into trouble. Much of this land belonged
to the United Fruit Company, a U.S.-based multinational that grew and exported
bananas. Both United Fruit and the U.S. government protested the land takeover.
Although Arbenz was not a communist, U.S. officials accused him of being “soft” on
communism. They claimed that his policies would allow the Soviets to gain a foothold in
Central America. When Arbenz refused to reverse course, the United States launched a
covert action to remove him from power. In 1954, it organized and funded a rebel army
of Guatemalan exiles, which trained on United Fruit Company lands in neighboring
Honduras. The rebel force marched on the capital and overthrew the government in a
coup d’etat as two U.S. fighter jets provided air cover to the rebels. A military regime
took over and established close ties with the United States.
The Guatemalan army remained in control of the country for most of the next three
decades. During that time, Guatemala was polarized between the political extremes of
the right and left. In the 1960s, a civil war broke out between leftist guerillas and the
government. The war went on for years, costing the lives of some 200,000 people. Most
of the victims were Mayan Indians killed by the army. Up to a million people fled their
homes and became political refugees. Civilian rule was finally restored in 1985, and
peace accords were signed in 1996. However, Guatemala today remains a fragile state.
The Cuban Revolution Cuban nationalists also wanted to reform their country. Cuba
had gained independence from Spain in 1898 after the Spanish-American War. After the
war, however, the island remained under United States control. Cuba became a U.S.
protectorate.
By the 1950s, American companies dominated the Cuban economy. They bought land
and made large investments in the sugar industry. Sugar exports made Cuba one of the
richest countries in Latin America, but this wealth was poorly distributed. A small,
privileged class occupied the top of the social pyramid, with a sizable middle class
below them. Most Cubans lived in poverty, however, and enjoyed few social or
economic benefits.
As long as Cuba’s leaders protected American interests, they could count on U.S.
support. One leader, Fulgencio Batista, dominated Cuban politics for 25 years. Near the
end of his reign in the 1950s Batista ruled as a dictator. His corrupt and brutal rule
aroused strong opposition among Cuban nationalists and radicals.
One of these activists, a young lawyer named Fidel Castro, formed a small guerrilla
army to overthrow Batista. The rebel forces launched hit-and-run attacks from the
rugged mountains of eastern Cuba. Gradually, they gained popular support. Against all
odds, Castro and his army forced Batista to flee the country. In January 1959, they
entered Havana in triumph.
Library of Congress
Soon after Fidel Castro took power in 1959, he allied himself with the Soviet Union. This 1960 photograph
shows Castro (the bearded man in the center) and Soviet Premier Nikita Khrushchev (the bald man, also
center) making their way through a crowd. Castro’s relationship with the Soviets was a central reason why
the United States attempted to overthrow the Castro regime.
The rebels had won, but the Cuban Revolution had just begun. Castro began to
implement radical reforms, including land reform. He also asserted Cuba’s
independence from the United States by nationalizing American companies. This meant
that the Cuban government took ownership of the companies’ assets. The United States
retaliated by imposing a trade embargo on Cuba.
Cuba then turned to the Soviet Union. Castro forged close ties with the Soviets and
began to build a communist state. He established public health and education programs
and raised the standard of living for most Cubans. He erased class distinctions in
Cuban society, but he also restricted personal freedoms and jailed or executed his
opponents. As a result, many Cubans fled the island for other parts of the Americas,
especially the United States.
The United States responded by trying to overthrow the Castro regime. The CIA carried
out various covert actions, including plots to assassinate Castro. In 1961, it tried to
repeat the events in Guatemala seven years earlier, organizing a rebel army of Cuban
exiles to invade Cuba at the Bay of Pigs. This invasion failed miserably, and Castro
emerged stronger than ever.
Over the years, Cuba remained a major flashpoint in the Cold War. During the Cuban
Missile Crisis of 1962, the placement of Soviet missiles in Cuba brought the world to the
brink of nuclear war. Cuba also tried to spread leftist revolution in Latin America and
Africa, which further aggravated tensions with the United States.
Throughout this period, Cuba relied on Soviet economic aid. That aid ended with the
collapse of the Soviet Union in 1991. Since then, Cuba has struggled to keep its
economy afloat. Meanwhile, the U.S. trade embargo on Cuba continues. Relations
between the United States and Cuba remain difficult.
Chile’s Socialist Experiment Conflict also arose in Chile during the Cold War. Chile
had a history of democratic government that made it a model for much of Latin America.
It also had a long history of foreign investment. For example, three U.S. companies
controlled Chile’s copper industry, the nation’s largest source of income.
In 1970, Chileans elected a socialist president, Salvador Allende (ah-YEN-day). Allende
promised to follow a “democratic road to socialism.” With the support of Chile’s
congress, he nationalized the copper industry. He also took over foreign firms in other
key industries.
These actions alarmed powerful people in both Chile and the United States. They
feared that Chile was heading toward communism. U.S. President Richard Nixon had
already tried to prevent Allende’s election. Now Nixon ordered a covert operation to
bring down the government. One strategy was to undermine the Chilean economy by
cutting off aid and blocking loans from the World Bank and other financial institutions. As
Nixon put it, the aim was to “squeeze” the economy until it “screamed.”
The Granger Collection, NYC
A crowd of marchers in Santiago, Chile, in support of Salvador Allende for president. Allende was a
socialist, and his election in 1970 caused many in Chile and the United States to fear that Chile would
become a communist state.
The Geneva Accords divided Vietnam into the communist north and the non-communist south. When the
Viet Cong threatened South Vietnam, the United States intervened to keep South Vietnam from falling to
communism. Fighting in the Vietnam War eventually also spilled over into the neighboring countries of
Cambodia and Laos.
Southeast Asia was an even deadlier battleground during the Cold War. In the former
French colony of Indochina—Vietnam, Cambodia, and Laos—several million people
died in wars and other violent conflicts. The Cold War was a major factor in these
conflicts, but their roots lay in a longer history of imperialism and colonial rule.
The Vietnam War The first French people came to Vietnam in 1612 as Catholic
missionaries. Two centuries later, the French invaded the country. It took nearly three
decades for France to conquer all of Vietnam, along with Cambodia and Laos. In 1887,
France established the colony of French Indochina.
France ruled French Indochina in typical imperial fashion. It exploited Vietnam’s
economic resources, including rice, coal, minerals, and rubber. It also used the colony
as a market for French goods. It made little effort to develop local industries or a skilled
middle class. All the wealth of the colony went to the French and a few privileged
Vietnamese. Most of the people did not benefit from colonial rule.
Nationalist revolts against the French began during the early days of the colony. By the
1930s, one of the leading groups in this struggle was the Vietnamese Communist Party,
founded by Ho Chi Minh. During World War II, when Vietnam was occupied by Japan,
Ho formed a broad nationalist alliance called the Viet Minh (vee-EHT MIN). After the
war, the Viet Minh seized power in the northern part of the country, while the French
retained control in the south. Vietnam was divided between a communist-led north and
a noncommunist south.
By 1947, the two Vietnams were at war. The Viet Minh called their fight a “war of
national liberation.” For the French and their U.S. allies, however, it was a war against
communism. The Indochina War went on until 1954, when France suffered a crucial
defeat at the Battle of Dien Bien Phu and sued for peace. The peace agreement, known
as the Geneva Accords, left Vietnam divided between the communist north and the non-
communist south. Elections to unify the country were scheduled for 1956 but were
canceled by South Vietnam because of the likelihood that the popular communist leader
Ho Chi Minh would win the elections if held.
Bettmann/CORBIS
As the North Vietnamese army advanced toward the southern capital of Saigon in 1975, people feared
violence from the communists. They also feared life under a communist regime, and many tried to flee.
This photo shows an American helicopter picking up Vietnamese evacuees on a Saigon rooftop.
In the aftermath of war, each country worked to rebuild its national life. The challenges
were enormous. The wars had shattered economies and societies, decimated
populations and damaged the environment. U.S. bombing raids, for example, had
destroyed forests and farmlands and left toxic chemicals in the soil and water.
Unexploded bombs and land mines continued to kill or maim innocent civilians
throughout the region.
Nevertheless, the countries of Indochina have all made progress in the past four
decades. Cambodia has held democratic elections, while Vietnam and Laos—though
still communist—allow some democratic rights. All three countries have adopted market
reforms and opened up their economies to the world. They are still among the world’s
poorest countries and face many pressing problems, including widespread corruption.
But they are actively seeking a path to economic development.
Upheaval in Africa
Between 1955 and 1975, 42 African countries gained their independence. These
countries carried the legacy of decades of European imperialism and colonial rule.
Africa’s Colonial Legacy When European powers carved up Africa in the late 1800s,
they paid little attention to the traditional homelands of African peoples. Europeans drew
borders that cut across these homelands, dividing ethnic and cultural groups and putting
different groups in the same territory. After independence, most of these borders
remained. New nations lacked cultural and social unity. In some cases, ethnic groups
within countries fought for power.
The new African nations also faced severe economic problems. European powers had
exploited the colonies for their resources and labor. They built mines and plantations to
produce raw materials for export. They rarely established industries or infrastructure
that would benefit the nations themselves.
In general, European powers failed to prepare Africans for independence. In most
countries, education levels remained low. There was a shortage of trained professionals
—managers, doctors, engineers, and political leaders—to build the new nations.
This colonial legacy made it hard for African nations to advance. Their economies were
weak and their governments unstable. They were prone to social and political upheaval.
In many cases, they relied on dictators to maintain order. Many also turned to the
superpowers for political and economic support.
Nigeria’s Search for Stability Nigeria illustrates some of the challenges that faced
African nations. A former British colony, Nigeria gained independence in 1960. At first its
prospects looked good. It was one of the largest and richest countries in Africa. But
ethnic problems soon divided the nation.
AFP/Getty Images
Ethnic tensions in Nigeria erupted into civil war in 1967, when the homeland of the Igbo ethnic group
seceded to form the Republic of Biafra. In this photo, soldiers for the Biafran national army prepare to
resist an attack by Nigerian federal troops.
Nigeria is home to three main ethnic groups. The Hausa-Fulani, a mostly Muslim group,
live in the north. The Yoruba, half of whom are Christian and half of whom are Muslim,
live in the southwest. The Igbo, a mostly Catholic group, live in the southeast. After
independence, these groups shared power in a federal system of government. Each
group tried to gain advantage, fearing domination by the others.
The political system soon broke down. In 1966, a group of army officers—mostly Igbos
—overthrew the government. A few months later, Hausa officers staged a counter-coup
and toppled the new regime. Rioting erupted against the Igbos, and thousands were
killed.
In 1967, the Igbo region seceded from Nigeria. It called itself the Republic of Biafra. Civil
war broke out and more than a million people died, mostly from starvation. In 1970,
Biafra was defeated and forcibly reincorporated back into Nigeria.
After the war, the army kept control over Nigeria for most of the next three decades. It
claimed that military rule was necessary to ensure peace and prosperity. Although the
army promised to return power to civilians, it repeatedly went back on that pledge.
In 1999, however, democracy was finally restored. By this time, Nigeria had become
one of the world’s leading oil producers. The government hoped to use oil income to
develop the country, but the results were mixed. Oil revenues brought great wealth to
Nigeria, but corruption also increased. Meanwhile, other sectors of the economy—
including farming and manufacturing—suffered from neglect. Most Nigerians remained
desperately poor. Two-thirds of the population lived on less than $1 a day. Oil also led to
conflict, as residents of the Niger delta—the country’s main oil region—demanded a fair
share of the oil wealth. Armed groups kidnapped oil workers and attacked oil facilities.
Ethnic and religious conflicts also increased under democratic rule. Violence erupted
between Muslims and Christians, especially in northern Nigeria. Thousands of people
died in these riots.
Nevertheless, Nigeria has managed to remain democratic. Several free elections have
taken place since the end of military rule. This record of democracy and the rule of law
offers hope that Nigeria can maintain stability and move beyond the troubles of the past.
South Africa’s Struggle for Democracy South Africa also faced great obstacles in its
path to democratic rule. It won independence in 1910, long before most African nations.
However, the end of colonial rule did not bring freedom for most South Africans.
After independence, South Africa remained under the control of its white minority. The
state passed laws to deny basic rights to blacks, Asians, and mixed-race peoples, who
made up four-fifths of the population. This policy continued under the Afrikaners, who
gained power in 1948. The Afrikaners are people descended from the first Dutch
colonists in South Africa.
The Afrikaner government instituted a policy of apartheid, or racial separation. It
imposed segregation throughout society, in schools, offices, parks, restaurants, and
theaters. It also set up a system of ten African homelands, separate regions of the
country where blacks were meant to live. Under apartheid, everyone was classified by
race. Only whites were allowed to vote in national elections or hold public office at the
national level. The police could arrest and detain people without trial, including anyone
who opposed the government.
Many South Africans, both black and white, resisted apartheid. The strongest opposition
came from the African National Congress (ANC), a group formed in 1912 to promote
black rights. The ANC organized marches, strikes, and other protests. The government
cracked down on these actions, killing many protesters and putting others in jail. One of
those jailed was the ANC leader Nelson Mandela, who was imprisoned in 1964.
South Africa’s repressive policies sparked criticism around the world. The United
Nations condemned apartheid and placed an arms embargo on the country. Various
countries also imposed economic sanctions on South Africa, restricting trade and
investment. The United States—which relied on South Africa as a trade partner and
Cold War ally—was slow to join the anti-apartheid movement. Eventually, it too called
for change.
Under mounting pressure, South Africa finally agreed to reforms. The process began
slowly but picked up speed under a new president, F.W. de Klerk. In 1990, de Klerk
released Nelson Mandela from prison. Over the next two years, the government struck
down most apartheid laws. It also announced that free, democratic elections would be
held in 1994.
The ANC won the elections, and Nelson Mandela became the country’s first black
president. He promised to promote national unity and build a democratic state, with
equal rights and freedom for all. In 1996, the South African parliament passed a new
constitution that enshrined those principles in law.
Mandela was followed in office by two more democratically elected presidents. These
leaders tried to address South Africa’s many economic and social problems. They
launched programs in education, housing, and other public services. Nevertheless,
poverty remained a serious problem. Most South Africans struggled to meet their basic
needs. Other concerns included high crime rates and the spread of the deadly disease
HIV/AIDS. Despite these challenges, however, South Africa’s successful transition to
democracy gave hope for the future.
Source: www.teachtci.com