In Latin America, many countries struggled with neo-colonialism. The independent countries had all been former Spanish or Portuguese colonies, and continued to be dominated by the European descendants of the original colonists. They formed elitists parties which dominated the economy and politics within the various Latin American countries.

Under President Lazaro Cardenas, land was redistributed in Mexico. The state confiscated forty-five million acres from wealthy elitists, compensated them, and then returned the land to Mexican peasants. In addition, President Lazaro Cardenas also took control of the Mexican oil industry, removing ownership of oil wells from foreign hands and giving them to domestic companies.

The Institutional Revolutionary Party often ruled harshly and was able to keep power through inspiring fear in rival parties. Additionally, they experimented with new economic policies, some of which failed to decrease Mexico's dependence on foreign markets and capital while others proved to be successful, and bolster the Party's credibility.

Latin America: Mexico