growth of these less developed countries. However, what negative side effects emerged from foreign investment in Central and South America? Many social analysts in Latin America and the United States insist that economic dependence had important political implications for Latin America. Third World elites, backed by the economic and military power of the core nations, mainly the United States, maintained a political system that benefited the few at the expense of the majority. Large amount of the capital in-flows destined to stimulate industrial growth, improve the countrys infrastructure, offer better healthcare services, build better education institutions, and so on, were mismanaged by a small elite and corrupt group of people. Little, or at times no, investments were made in the area of industrial goods, technological innovation, or in important industries, for instance electronics, to be able to enter competitively in the global market. Furthermore, with the economic depression of the 1980s facing the United States, dependent countries, in this case Latin American ones, ended up importing the inflation of the United States. In fact, in 1994, Latin American countries had an external debt equivalent to a considerable amount of their Gross National Product (GNP). For instance, Costa Ricas 1996 debt was 59.7% of the countrys GNP, Honduras 70+%, Bolivias 89.4%, Panamas 107%, and Nicaraguas an astonishing 800% of GNP. The external debt of the remaining countries oscillated between 30 45 % of their gross national product. Once again the group paying for this exorbitant debt is the poor through higher inflation, lower salaries, higher taxes, less medical benefits, unfinished community aided programs and so on. Moreover, the effects of dependency will be felt for quite some time, unless these loan are forgotten or forgiven by US banks. Up to now a pessimistic view has persisted through all issues covered. However compari...
