Monroe Pact
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The Monroe Pact
1870-1948
The late 1800s saw a convergence of interests in the americas. After the civil war America was worried that a foreign power would intervene in it's interests or even invade like mexico had. In south america and the caribean the young republics had just defeated several waves of milatary coups, often backed by foreign powers, and did not trust their own militaries any more. Israel just wanted a stable trading network to compensate for repetitive international sanctions by antisemitic countries.
The Monroe Pact came out of these negotations. The nations of south america agreed to a military alliance with both each other, the united states and Israel. If one nation was attacked they would all agree to fight as one.
Then the countries who had unreliable militaries scrapped their army and Navy to the bone, making sure that the only ones left were strictly controlled. In some cases a military officer could only get ammo for practice shooting from the chief of police, who strictly rationed their ammo.
The money that would have been spent on the military was instead thrown into education, infrastructure and the economy. Soon after the establishment of the pact the problem of Tarrifs risked the destruction of the newborn pact. It took careful negotiation but there was an agreement to limit tarrifs to a maximum of 10% on Pact members.
Half of this tenth would be given to an infrastructure bank that came to be known as the PIB. The PIB would give out loans to various pact nations at low interest, zero interest and even negative interest based on the nations behavior during corruption.
If the money was pocketed by corrupt bureaucrats or obviously misspent then the country would be slapped with a 5% interest rate. If there were incidents but the government punished anyone who misused funds the interest rate would be 0%, and if everything was above board there would be a negative 5% interest rate.
This meant that a country that used their funds responsibly wouldn't have to pay the PIB back at all. Some countries like Columbia,Brazil, and Chile used the money to build up their countries. Others struggled but were able to mostly get their loans to Zero, like Paraguay and Haiti. Some openly cheated the system whenever they got a loan like Argentina.
Argentina would default on said loans but would be forced to repay their loans through their tarrif income. Out of all the nations involved Argentina cheated the system the most.
In 1875 Ireland petitioned to join the Monroe pact. The United Kingdom tried their best to freeze the Island from any continental based system for security reasons. Because of it's status as a catholic nation and because of pressure from Irish americans it got in, after some negotiation with the british empire to gain their blessing.
This blessing came at the cost of the pact being forbidden from allying to any european power. The Monroe pact, founded with the idea of keeping outside nations out of the western hemisphere, agreed. Over the next couple of decades this military alliance and trading network would help the young republics establish strong institutions, build up their economies and give the countries involved a long period of peace.
The pact also served to check the power of it's strongest nation, the united states, keeping it from abusing it's power over pact nations by preventing gunboat diplomacy or coups, further promoting stability. The pact would be challenged with the first world war and would help lead the allies to victory. the second world war would likewise end in victory.
The cold war between Russia and the United States ended the pact. The vast majority of members did not want to get stuck in a series of conflicts between the united states and the soviet union. The pact was for this reason dissolved in 1948, though the member countries stayed on good terms with the united states.
So, after more then 50 years of history, what is to be said about the monroe pact's results? The member countries became wealthier and more stable, their democracies became intrenched and the member states gained entrance into a stable trading network.
South america, and the central american states like Panama, gained a much increased standard of living and became developed nations. America gained a series of allies that helped them win the world wars. Ireland and Israel, who both had problems with outside nations messing with their trade, gained stable trade partners.
There have been talks about bringing the pact back but all of these talks have failed. In the end the pact made it's member nations wealthy and powerful enough to no longer need it anymore. It was in many ways a victim of its own success.
1870-1948
The late 1800s saw a convergence of interests in the americas. After the civil war America was worried that a foreign power would intervene in it's interests or even invade like mexico had. In south america and the caribean the young republics had just defeated several waves of milatary coups, often backed by foreign powers, and did not trust their own militaries any more. Israel just wanted a stable trading network to compensate for repetitive international sanctions by antisemitic countries.
The Monroe Pact came out of these negotations. The nations of south america agreed to a military alliance with both each other, the united states and Israel. If one nation was attacked they would all agree to fight as one.
Then the countries who had unreliable militaries scrapped their army and Navy to the bone, making sure that the only ones left were strictly controlled. In some cases a military officer could only get ammo for practice shooting from the chief of police, who strictly rationed their ammo.
The money that would have been spent on the military was instead thrown into education, infrastructure and the economy. Soon after the establishment of the pact the problem of Tarrifs risked the destruction of the newborn pact. It took careful negotiation but there was an agreement to limit tarrifs to a maximum of 10% on Pact members.
Half of this tenth would be given to an infrastructure bank that came to be known as the PIB. The PIB would give out loans to various pact nations at low interest, zero interest and even negative interest based on the nations behavior during corruption.
If the money was pocketed by corrupt bureaucrats or obviously misspent then the country would be slapped with a 5% interest rate. If there were incidents but the government punished anyone who misused funds the interest rate would be 0%, and if everything was above board there would be a negative 5% interest rate.
This meant that a country that used their funds responsibly wouldn't have to pay the PIB back at all. Some countries like Columbia,Brazil, and Chile used the money to build up their countries. Others struggled but were able to mostly get their loans to Zero, like Paraguay and Haiti. Some openly cheated the system whenever they got a loan like Argentina.
Argentina would default on said loans but would be forced to repay their loans through their tarrif income. Out of all the nations involved Argentina cheated the system the most.
In 1875 Ireland petitioned to join the Monroe pact. The United Kingdom tried their best to freeze the Island from any continental based system for security reasons. Because of it's status as a catholic nation and because of pressure from Irish americans it got in, after some negotiation with the british empire to gain their blessing.
This blessing came at the cost of the pact being forbidden from allying to any european power. The Monroe pact, founded with the idea of keeping outside nations out of the western hemisphere, agreed. Over the next couple of decades this military alliance and trading network would help the young republics establish strong institutions, build up their economies and give the countries involved a long period of peace.
The pact also served to check the power of it's strongest nation, the united states, keeping it from abusing it's power over pact nations by preventing gunboat diplomacy or coups, further promoting stability. The pact would be challenged with the first world war and would help lead the allies to victory. the second world war would likewise end in victory.
The cold war between Russia and the United States ended the pact. The vast majority of members did not want to get stuck in a series of conflicts between the united states and the soviet union. The pact was for this reason dissolved in 1948, though the member countries stayed on good terms with the united states.
So, after more then 50 years of history, what is to be said about the monroe pact's results? The member countries became wealthier and more stable, their democracies became intrenched and the member states gained entrance into a stable trading network.
South america, and the central american states like Panama, gained a much increased standard of living and became developed nations. America gained a series of allies that helped them win the world wars. Ireland and Israel, who both had problems with outside nations messing with their trade, gained stable trade partners.
There have been talks about bringing the pact back but all of these talks have failed. In the end the pact made it's member nations wealthy and powerful enough to no longer need it anymore. It was in many ways a victim of its own success.