Despite the success of the export economy, the countries of Latin America went through catch-up development. All this led to the weakness of Latin America’s foreign policy potential and its subordinate position in international relations. Within countries, the workers were intensively struggling for their rights, which led to the emergence of socialism and anarchism ideas. The result was the adoption of the most progressive constitution at the time – the Mexican constitution of 1917. According to it, all natural resources of the country were declared the property of the nation, an 8-hour working day was established. The rights and privileges of foreign capital were not abolished but were severely restricted. It created a more beneficial athmosphere for the development of capitalism.
However, xenophobia against foreign traders, immigrants, Protestant capitalists appeared in the countries, which gravely influenced the nationalism of Latin Americans. As a result, nationalists politicians who opposed oligarchy appeared in the 1930-1940s. In the economic sphere, ties between Latin America and Europe have weakened at this time. Taking advantage of the situation by 1914, the United States, gradually displacing its main competitor, England, had seized a serious sphere of influence, and strengthened its position during World War I. It further heightened national self-awareness.
The countries of Latin America have resisted US imperialism with a variety of policy actions. For example, the ideology of indigenismo emerged. Moreover, this gave rise to nationalist revolutions, which, however, were possible only thanks to the armed forces. All this has further deteriorated the economy, and the Economic Commission for Latin America (ECLA) has been established. It should coordinate policies to promote economic development in the region. After World War II, it was decided to upgrade economies through import substitution. However, this has led to a rural crisis and, in the future, to the general crisis of development.