Interventionism of State in Latin America

By the end of the twenties, exports from Latin America were declining, as a prelude
to the economic crisis of 1929. The financial resources were reduced markedly and
foreign investors were forced to withdraw their funds and collect debts. According to
the conditions of each country, solutions to the crisis were sought. In some countries
the situation faced by moderate reforms, generally proposed by the ruling class.
Elsewhere, the situation faced by governments that were defined as popular,
nationalist and anti-oligarchic, which was called populist. These had the support of
the working class, the marginalized and the unemployed and the masses in general.

With reduced exports, they decreased income countries; domestic prices of many
commodities declined and the number of unemployed multiplied. In addition,
address the shortage of financial resources, the states lost their ability to import.
Governments decided to take control of exports, subsidize producers, supervise
financial institutions, control public works and support those industries that sought to
replace the products they stopped coming because of the difficulties of import. State
interventionism and the way it was intended to boost the economy were favored by
the start of World War II, because of that Europe and the United States significantly
increased food imports. Similarly, industrialization due to the new suspension of
imports was encouraged, however, agriculture and farming activities are neglected.