Latin-American Studies

Many white Americans do not know enough about Latin America, when they should. Why should they learn more about Latin America and how can they do it Because Americans have economic and political interests vested in this vast region. Latin America is a large trading partner of the U.S. and many of its upheavals and political activities directly affect and undermine U.S. foreign policy (Skidmore and Smith 2005, 3). Let us take a shortened route to learning more about Latin America- by breaking some of the myths that oversimplify its history, culture, geography, and demographics.

Myth 1. The Diaspora always comes from Latin America to the United States and Europe. While many Latin Americans migrate to these developed countries, Diasporas originally happened in this flow- from these Northern countries to the South Americas. In the first place, if we go back to history, the Spanish and the Portuguese invaded Latin America, and from there, they came in steady throngs to live in more temperate climates in Latin America, especially in Argentina (Marston et al. 2002, 356). In addition, six million Italians and Spanish also migrated to Argentina and even some regions such as Patagonia are known for Welsh culture and immigration (Marston et al. 2002, 356). Diasporas existed as a rush toward and, not only out, of Latin America.

Myth 2. Latin Americans are all Hispanics. This is a good example of hasty generalization. Just because some of the Hispanics we know come from Latin America, it does not mean that Latin Americans are all Hispanics. When the Europeans came to Latin America in the 1500s, they radically changed the demographic profile of the region through interracial marriages, cohabitation, and rape (Marston et al. 2002, 355). To get our history right once more, the history of colonization ushered a history of colonial discrimination. It was bad enough that the white Europeans discriminated against the Africans and Indians in Latin America, it was even worse that they created a hierarchy of discrimination among the people they discriminate. It may come as a surprise for some people that the racial mixes had been so diverse that they were given different names mestizo refers to a person of mixed white and American Indian ancestry, mulatto pertains to a Spanish and African mix, and zambo refers to an Indian and African mix (Marston et al. 2002, 355). Even the Spanish discriminated against their own mixed blood and divided Spanish children into peninsulares, or those born in Spain, and criollos, or those born in the Americas and so many Spaniards sent their pregnant wives for their children to be born in Spain and enjoy a more exalted social status in the future (Marston et al. 2002, 355). So no, not all people from Latin America are Hispanics.

Myth 3. The European colonizers decimated the Latin American population with the force of the sword. Indeed, the white colonizers killed many natives, as Bartolom de Las Casas, a sixteenth century Dominican priest, narrated in his writings. In reality, the newcomers did more than that. They brought European diseases with them which broadly killed the natives, who had not developed resistance to these diseases (Marston et al. 2002, 344). European diseases such as smallpox, influenza, measles, and other illnesses are estimated to have killed around 75 percent of the Latin American population (Marston et al. 2002, 344). Hence, the colonizers also decimated colonial Latin America through their diseases.

Myth 4. The only language of Latin Americans is Spanish. This is an inadequate sentence that neglects the existence of diverse indigenous languages. The most widely-used native languages are Quechua in the Andean region, which 13 million people uses, English Creole and French Creole in the Caribbean used by 10 million people, Guaran in Paraguay used by 4.6 million people, Aymara in the Andes used by 2.2 million, Mayan in Guatemala and southern Mexico used by 1.7 million people, and Nahuatl in Mexico used by 1.3 million people (Marston et al. 2002, 363).

Myth 5. Latin America is an easy country to understand. First, Latin America is not a country, as it is composed of twenty-six (26) large and small nations, with diverse political systems that include socialist, democratic, and military dictatorship states (Skidmore and Smith 2005, 3). Its historical conflicts also challenge the idea of simplicity in understanding Latin American history (Knight 1992). Palti (2009) even explored the fight between ideas about history, as revisionist historians sought to write about a different history for Latin America. Second, Latin America is categorized economically as a developing country, with its own nuances, because many of its states are interdependent economies (Skidmore and Smith 2005, 3). Third, Latin America is both young and old. It is young because of its high fertility rate and young population, but it is also old because many countries obtained political independence from Spain and Portugal more than a hundred years ago (Skidmore and Smith 2005, 4). Fourth, Latin Americas development has not followed other developed countries economic models, because of diverse economic, political, social, religious, and cultural conditions (Skidmore and Smith 2005, 7-10). The complexity of its development as a region is difficult to define, especially when those who analyze it come from a Western perspective and do not have a deep understanding of the distinctive histories and cultures of each nation and Latin America, as whole, and how each nation in it relates to one another in economic, political, social, religious, and cultural levels (Langer 2004 Marthoz 2000 Skidmore and Smith 2005, 7-10). Langer (2004) complained that Latin American history is often framed in relation to European history, using its viewpoints and values (394). Latin America, however, is not merely a history acted upon by the West, because in many ways, it has acted upon world history also (Langer 2004, 395).

Myth 5. The Amazons traditional groups are obstacles to development. Now this is a hard sentence to prove or disprove, because of the big words of development and traditional groups. For the sake of definitions, development here will be defined as the sustainable form of development that many traditional groups have long espoused. In some Western films, the Amazons traditional groups are native people who are described a backward and against development (Young 1999). Many scholars mostly agree that traditional groups who conform to conservation of nature cannot possible be obstacles to sustainable development (da Cunha and de Almeida 2000, 325). In this framework, when traditional groups are seen as promoters of low-impact environmental practices and cultural leadership, then they are partners to development (da Cunha and de Almeida 2000, 335).

Myth 6. The Amazon is a beautiful and scary river, period. Though both are true in different levels and understanding, the Amazon is much more than a river Within Brazil, the importance of the Amazon in defining national identity is immeasurable (Young 1999, 24). It is the worlds largest river basin, is almost the same size as the U.S., and encompasses 36 of Brazils territory (Young 1999, 24). For Brazil and even to Latin America, it is a place of dreams, culture, and history.

Latin America evokes both romanticism and fear, depending on personal views and biases about it. For non-Latin Americans, they should put their knowledge about Latin America in the right perspective by understanding that it is not a homogenous single country, but a region that is mixed in history, race, culture, economies, politics, and so much more. To simplify Latin America and its basic institutions, history, and even its future, will not do justice to its rich history and heritage.

Cultural awareness refers to the knowledge of nurtured behavior through social transmission in a society. The culture of a society is characterized in their way of life through its art, language, thoughts, social activities, and spirituality, physical and social interactions between members of that society.

Different societies have different cultures that are unique from each other. The present way of life, draws a lot of foundations from culture of a society. In South America for instance, their culture may be similar across nations however historical events has shaped the culture of individual nations differently.

For instance, a country like Venezuela has been described as a fascinating country rich in culture and diversity and yet has one of the most stable national identities among the South American states. The name Venezuela was coined by its colonizers (Spanish) from original name Venice which was given to it by one of the Christopher Columbus voyagers named Ojeda in 1499. The country population is composed of indigenous populations who have intermingled with Spaniards, African, Latin American and other European immigrants. The demographic distribution classifies these populations into four major groups. The mestizos or pardos who comprise of up to 67 , the European 21 , the black 10 , Indians 2 , but there is a tendency of a localized distribution in all these groups (Hewa, 12).

The official language in Venezuela is Spanish. Being a former colony of Spain, the language has continued to have a common use in official transactions. English is however acquiring momentum as the second official language due to the international integration and interaction of the country with other nations where English is widely accepted as an international language for business and cultural purposes (McCoy, Smith, 45). This momentum has even infiltrated into classroom level where some schools are using English as a blend in a bilingual curriculum.

Social relation between members of society is deeply influenced by the social stratification of caste system. Even though the caste does not receive an official recognition, the system has placed most of the political and economic influence in the hands of a few elites. This top caste of elites is made up of long-established white population which puts members of European ancestry at a greater opportunity to control the economy of the state. On the other hand, this system places other members especially immigrants from African, Latin America, and Indian origin at a helpless position due to this racial and color division. However, this stratification has not gone without adverse effects like the social crisis which were experienced in 1990s.

Venezuelans are known to have pride in their country and traditions. The national flag is a strong identity of this republic which is held with respect and high admiration. Simon Bolivar is widely recognized as a national figure for his roots in Venezuela. He is accredited for his heroic deeds that led to liberation of South America. His actions are comparable to those of George Washington of United States of America. The country has four public holidays during which the national flag is flown outside all public buildings and public houses. Public parades are also held during commemoration of independence and pubic holidays. The Bolivars birthday is celebrated on July 24th, independence day on June 24th, and the day of the race on October 12th. Venezuelans are fun loving people and among their most celebrated festivals is the carnival. Among the costal settlements, this celebration entails wide-ranging series of parties with a lot of drinking, parade dancing with drums (Harold, 23). At this time, dancers are known to wear sexy costumes and employ seductive dancing styles.

Over 90  of total populations of Venezuela are Roman Catholics. However, other regions are still gaining popularity. The constitution guarantees freedom of worship. This has allowed some indigenous people to continue practicing their traditional ways of worship. Many Venezuelans are however known to practice a symbiotic religious practice referred to as Culto of Maria Lonza. She is usually portrayed as a witch or healer with a company of a black henchman and an Indian chief. The three are known to as the Three Powers. There is also a wide fellowship of Dr. Jose Gregorio Fernandez who was a catholic priest and was miraculous healer. He used to operate and heal native people while they were asleep which created a wide following. There exists a notable number of people who follow Jewish religion, and other members of Islamic faith.

The religious rituals and cultures are guided by the faiths of a population. With most of the people following Roman Catholic faith, most of the religious rituals are held during church masses on Sundays. However, the rituals connected to the Maria Lonza engage the chief practitioners falling into stupor through rhythmic music, dancing, drinking of rum, and painting their bodies using dyes of different colors (Canache, 42). During these rituals the practitioners foretells what is in the present and the future of a requester.

National culture has received full support of the state through arts. The government has been avid in supporting music and literature as a vessel that has a great strength in promoting and preserving culture. In Caracas for example, there is a symphony orchestra that receives full public financing. The orchestra plays classical genres and mostly the nationalistic tunes of joropos. The government has strived to preserve the national heritage of Venezuela by helping to maintain a number of Museums which houses natural artistic productions. Among them there is the Museum of Fine Arts, the Museum of Natural Science and the Museum of Colonial Art which preserves the past heritage for future generations. In the field of performing arts, Venezuela is the home to one of the top salsa music bands in the world under the leadership of Oscar DLeon even Mariah Carey is known to have roots in Venezuela.

In terms of etiquette, Venezuelans interact freely which is clearly portrayed in their extroverted manner which makes them very social and outgoing people. They converse loudly and openly. Their customary mode of greeting for men of equal status is composed of a strong handshake. In most cases it is not hard to find women giving kisses on the cheek when greeting each other. Use of body language and gestures is also very common when one is making a point. Some common sign languages are not acceptable such as pointing someone using a finger is re4garded as an impolite and offensive way of reference (Hewa, 16). It is advisable for one to point another person using his mouth.  

In conclusion, the social stratification has played a big role in determining the relationship between members of Venezuela in public arena. The government has taken a big role in conserving and increasing awareness of its culture among the citizens. Being a less formal society, it holds a high level of freeness during communication. The society has a high regard for social morals and better understanding of their culture is very essential for one to feel comfortable within Venezuelan population.

The border, a space which designates the separation between two entities, also provides the space for the synthesis of two different entities. An example of this can be seen in the case of immigrants from other countries who choose to cross the border in search for a new mode of living. Cynthia Bejarano, in her book entitled Que Onda Urban Youth Culture and Border Identity provides an analysis of the events that take place in the process in which a group of people chose to transcend the divisions determined by borders. Bejaranos text presents an ethnographic study which depicts the identity formation of Mexican-American residents who reside near the border. In her book, she argues that the formation of ethnic identities is based on different practices that are determined by the geographical location of a people. Bejaranos text thereby places emphasis on the politics determined by geographical boundaries in the creation of a peoples identity.

Within this context, what follows is an extrapolation of Bejaranos arguments for linking geographical boundaries in the identity formation of a group of individuals. This extrapolation will focus on several aspects of Bejaranos argument, with a specific emphasis on the politics of identity along the Mexican Border, the aspects that influence the identity development of Latinos along the border region and the influence of identity construction on the lives of the Latino youth in contemporary American society. The focus on these aspects will show how Bejarano emphasizes the role of geo-politics in the creation of identity. Although such a role has already been theoretically recognized in other texts, the importance of Bejaranos argument lies in the statistical data she provides in order to support her claims. It is important to note that Bejaranos ethnographic study was initially aimed at understanding the youth disturbances in Altamira High School. Due to the school officials recognition of the link between the rise in the diversity of ethnic groups in the school and the occurrence of ethnic andD  or racial conflicts, they commissioned several scholars to perform a study that will quell and end the occurrence of these conflicts. One of the scholars commissioned for this study was Bejarano herself.

Bejarano s argument takes into account her four-year ethnographic study of Latino identity at Altamira High School. In her discussion, it is important to note that she refers to Latinos to further diversify themselves into Chicanos, Mexicanos, or both (Bejarano 6). This distinction is important since it shows how Latinos perceive the extent in which their relationship to their homeland affects the creation of their identities. Bejarano states,

(Y)outh identities are created and directly influenced by the complexities of the geopolitics and so-ciocultural implications (e.g. culture, language, social groups and social hierarchies, internal colonialism, racesD  ethnicities, and citizenship and residency issues) circumscribing their lives. (Bejarano 3)
In the case of Latino s, the influence of these factors can be seen in the largely unspoken and unexplored divisions among youths of Mexican descent whose border identities are located along a wide continuum of Mexicanness (Bejarano 4).

Bejarano captures this continuum by utilizing the framework of Border Theory. According to the Border Theory, the border functions both as a material and mental space (Bejarano 24). In its material form, the border serves to signify the space that separates two regions (i.e. two countries) (Bejarano 25). On the other hand, in its mental form, the border serves to signify two different perspectives of reality (Bejarano 25). It is important to note that there is a relationship between the material and mental form of the border. This relationship is apparent as both serve to represent one another. In the case of Bejaranos study, this is apparent as the material space that the border represents pertains to the separation between Mexico and the United States. As opposed to this, the mental space that the border represents pertains to the cultural beliefs and values of both countries. Within this context, Border Theory argues that as individuals transcend one space for another space, there occurs the transference of beliefs from one space to another space. This transference of beliefs leads to the synthesis of two different cultural beliefs and practices.

In the context of Bejaranos study, the occurrence of the union between two contrasting beliefs can be seen in the various ethnic identities that have resulted from the Mexicans passage to the United States. The politics behind the formation of Latino identity is thereby determined by the Latinos position in the border. An example of this can be seen as Bejarano points out the self-made distinctions followed by Chicanos and Mexicans. Chicanos are less connected to Mexico as they attempt to characterize their practices as a union between American and Mexican practices (Bejarano 33). As opposed to this, Mexicans refuse to follow American practices as they choose to adhere to the practices in their homeland (Bejarano 33). Other manifestations of this can be seen in the following

(1) (T)he creation of unique MexicanaD  o and Mexican-American D ChicanaD  o youth cultures through the use of customs and trends creating distinct styles that reinforce the borders between the two groups of young people (2) MexicanaD  o and Mexican-American D ChicanaD  o students  use of languages to define who they are and further distinguish themselves from one another (3) the social stratification of adolescents into an informal hierarchy at school  (4) the various ways citizenship is conceptualized by ChicanaD  os and MexicanaD  os and also what U.S. citizenship, Mexican citizenship, or permanent residence signifies to these adolescents . (Bejarano 6)

Cultural customs and trends influence the formation of identity as certain groups form their own practices. In the case of the Latinos in Bejaranos study, this can be seen as Chicanos deviate from the Mexicans by following the Hip-Hop style (Bejarano 38). This distinction shows the formers adherence to the American trend as a means of differentiating themselves from their fellow Latinos. In terms of linguistic practices, another example of this can be seen in the Chicanos creation of Spanglish. Spanglish, a combination of Spanish and English, is a factor in identity formation as an individuals fluency in English indirectly manifests the amount of time that he has stayed in the United States. In the text, Bejarano claims, Chicanaswill use more popular American youth sayingsTheir language selection serves a twofold purposeto communicate in their natural languagesand to speak exclusively within their group (Bejarano 50).

    The Elian Gonzalez affair refers to a controversial custody case of a Cuban boy known as Elian Gonzalez. Elian had managed to survive a boat accident which resulted to the death of his mother as they attempted to get into the US illegally in November 1999. This controversial case brought to light concerns about the US immigration and family laws, the US-Cuba relations the Cuban American community in relation to economic, social and political issues in Cuba (Elian Gonzlez Biography, 1993). Elian Gonzalez was traveling with his mother to the US but the failure of the boat and poor weather conditions led to the capsizing of the boat. The accident left all the passengers dead except Elian and two other survivors. After Elian and the survivors were rescued, the US Immigration and Naturalization Service (INC) placed the boy under the care of his paternal relatives who lived in Miami. Although the relatives sought to keep Elian in the US, Elians father, Juan Miguel Gonzalez, demanded that the boy return back to Cuba. This resulted to a custody row that had the father and the paternal relatives compete for the custody of the boy. The Cuban American community, the media, political leaders and some US bureaucracies got entangled in the row. After heated debates in the political circle and a legal battle in the early part of 2000, Elian returned to Cuba with his father. This paper will discuss the Elian Gonzalez affair and how politics, the media, US bureaucracies, the US judiciary and the Cuban American community got entangled in the affair.

The custody battle concerning Elian Gonzalez dominated the United States and Cuban media during the early months of 2000.Elian Gonzalez, a five-year old Cuban boy had left Cuba in company of his mother and his mothers boyfriend for the US in search for a better life. Illegal immigration of Cubans into the US was promoted by the   desire to seek a better life in the US. As compared to Cuba, the US seemed to provide the immigrants with better social and economic conditions. The Cuban economy had been experiencing problems since 1980s due to the US embargo that it imposed on Cuba in efforts to pressure Castros administration to embrace democracy and contain communism (Eire, 2003).To the US, Cuba had proved to be a threat to US security during the Cuban Missile crisis. As a result many Cubans, the US presented them with new opportunities to improve their lives and provide their children with a good life. This was no exception for Elians mother who took the risk of traveling in a small   boat to get to the US. Although many illegal immigrants managed to get to the US  without being apprehended, other who were arrested were deported back to Cuba .It is believed that the failure of the  boat engine  coupled with poor weather led to the capsizing of the boat.Unfortunately,Elians mother and other  passengers  drowned to death except for  Elian and two other survivors who  managed to float at sea on an inner tube for hours before they  were rescued by fishermen who handed them over to the US Immigration  and Naturalization Service officials(INS).The rescue of the Elian  and the two survivors received the attention of the media, marking the beginning of the entanglement of the media in Elians affair. After receiving treatment in the hospital, Elian was handed over to Lazaro Gonzalez, his paternal great uncle who lived in Miami. Together with the other relatives, Lazaro expressed their interest in keeping the boy in the US.However, this was rejected by Elians father and relatives back in Cuba. The events that unfolded after this attracted great attention of the media on the case. For about six months, the custody row became the focus of the US as well as Cuban mass media. Reports and debates in the media focused on the political and social issues that surrounded the matter.

Although the attention of the media on the case began with the rescue of the boy from the sea, the great attention of the media on the case during the early period of 2000 was increased by the involvement of the US and Cuban governments, political personalities as well as the Cuban American community in the affair. The public sympathized with Elian who had been rescued clinging onto an inner tube off the coast of Ft.Lauderdale in Florida on November 25, 1999.As the custody battle between Elians father and relatives in Miami continued, various members of the public differed on which was the best option for the well being of the boy. While some considered it logical to have the mothers dream of providing Elian with a good life in US by having the boy live with his relatives in Miami, others were convinced that it was good for the boy to live with his biological father. However, the sending of a note by the Cuban government to a US mission in Havana to request for Elians return to Cuba attracted the attention of the media and the public in the case. Elian became the centre of debate in the public and the Cuban American community especially in South Florida. The affair on the surface was about family and immigration laws in the US while beneath the surface, it became a political crisis between the US and Cuban governments. In relation to law, the affair triggered   heated debates on how the case would have been handled effectively. For instance, the question of whether Elian should stay in the US or return back to Cuba became the issue of discussion in the public. The disagreement between Elians father and his relatives in Miami made the case even more interesting. Although Juan Miguel Gonzalez, Elians father, made a request that Elian return to Cuba, the request was met with great resistance from his relatives who were taking care of Elian. Together with a legal team and some influential members of the community, the relatives on January 7 filed a request for political asylum of Elian. The family wanted Lazaro Gonzalez, one of   Elians relatives living in Miami to be granted custody as the boys guardian. This disagreement made it necessary for the media to continue focusing on the case.

The legal wrangling that was witnessed about the Elian Gonzalez case involved numerous bureaucracies within the US government. The bureaucracies included the Immigration and Naturalization service, the State Department and the Attorney Generals Office. These government agencies were involved in the case in efforts to resolve the custody issue .For example, because the Elian issue was transformed into legal dispute, Elians relatives living in Cuba intervened in the matter. For instance, Elians grandmother and mother in two different cases flew from Havana to the US in efforts to have Elian returned back to Cuba. Disagreements between Elians father and relatives living in Miami led to negotiations with the Attorney General which were unsuccessful. Although the 11th Circuit Court judge had granted emergency custody of the boy to Lazaro Gonzalez, the rejection of a family court jurisdiction by Attorney General Janet Reno in January 12 made it necessary for the Gonzalez family living in Miami to file a case in the federal court.

After the US government in January 28 requested for the dismissal of Elian relatives federal lawsuit, the US District judge on March 9 dismissed the political asylum lawsuit. As a result, Julian Gonzalez meeting with the Attorney General Janet Reno in April 7, 2000 resulted to an announcement that the US officials would transfer the custody of the boy to his father. Despite the fact that in April 19 the 11th US Circuit Court of Appeal blocked Elians return to Cuba after granting a request that had been filled by his Miami relatives, Elians reunion with his father was witnessed on April 22nd after US federal agents in a pre-dawn raid seized Elian from his Miami relatives home (A Chronology of Elian Gonzalez saga, 2010). The raid was criticized by Elians Miami relatives and their supporters. Many supporters belonged to the Cuban American community in South Florida who considered it better for Elian to remain in the US rather than   return to Cuba.  On the other hand, some Americans held the opinion that Elians father should have been given custody of Elian .Eventually, Elian and his father returned back to Cuba two months later after court producers were completed. They returned home on June 28th, few hours after the US Supreme court rejected efforts by Elians Miami relatives to keep him in the US. These events indicate how the US judiciary was involved in the Elian Gonzalezs affair.

The attention of the media in the case was unprecedented and it was clear that no incident of illegal immigration had attracted such attention from the media. This is because the Elian Gonzalez affair was transformed into a morality play where the public took sides, the US- Cuba relations were affected and Cubans in Cuba and those in the US were divided. For example, the case led to emotional charge that fueled emotional reactions among citizens in Cuba and US. Public opinion polls results that focused on how the case should have been handled were presented in the media. Differences between Cubans in Cuba and those in Cuban American society was evident when Cuban Americans complained on how the issue was handled. Back in Cuba, many citizens supported the returning back of Elian in the country. While the return of Elian Gonzalez to Cuba was celebrated by huge crowds at Jose Marti International Airport, members of the Cuban American community who supported Elians relatives living in Miami criticized how the case was handled. Divisions in the American society about the affair was also witnessed when  some Americans across  the nation supported the reunification of Elian and his father while others argued that Elians stay in the US would fulfill his mothers dream of providing him with a good life in the US. For those who supported reunion of Elian and his family back in Cuba, the members of the Cuban American community showed fanaticism when they made attempts to oppose and dismiss the US law during the legal battle witnessed in relation to Elians custody.

The Elian Gonzalez case was an indication of the absence of coordination structures as well as the presence of power vacuum at the US high level decision making especially in the National Security Council. For example, the case confirmed the fragility of the bilateral relations structure. Although the Elian case seemed to be a clear cut case of parental rights and immigration policy, it became a major issue of discussion during political debates when some US politicians in Congress and those in the presidential campaign trail got involved. In addition, the Elian affair resulted to the splinter of the Cuban American right wing with the hard-line members forming the Cuba Liberty Council (CLC). The split of the leadership of the Cuban American Florida community into CLC and the CANF (Cuban American National Foundation) defined demographic change that affected their political opinion. The Cuban American National Foundation had been supported by successive US administrations for decades and was expected to exercise  virtual veto power over the US policy towards Cuba (Fernndez,2000).The departure of Elian therefore left the right-wing Cuban exiles demoralized when their goal to have him remain in the US  failed. For example, after Elian and his father left for Cuba, only a small number of protesters from the community came out to protest as compared to the large number of the protesters that had been recorded in April when the INS agents raided the Miami relatives residence to take Elian away. Politics in the US and Cuba were influenced by the huge campaigns that were coordinated and held by anti-Castro Miami-based Cuban exiles who aimed at preventing the return of the  boy back to his father in Cuba. The Elian affair was also a clear indication of how irrational and intractable the US-Cuban relationship had become and the entanglement of a young child in politics that was beyond his control has been compared to the Operation Pedro Pan (Torres, 2003).

The case exposed deep divisions among the Miami residents due to the fact that although some residents especially those from the Cuban American community protested in favor of having Elian stay in the US, others agreed that the boy had the right to return to his father in Cuba. The affair also confirmed how measures that have been put into place to improve the Cuban-American relations worsened the situation. In addition, the events that unfolded during the affair showed how the US policy toward Cuba has become vital for the interests of groups such as the Cuban American National Foundation (CANF). The organization had become an influential Cuban American and Latina lobby organization in relation to foreign policy and political issues in Cuba and the US. Established in 1981, this group of Cuban American promotes the Cuban American interests.

Elians individuality during the affair became a representation of both political and social agenda. For example, Elians story brought to the forefront issues of the US  Cuba sanction policies and immigration. The Elian predicament also shed light on perpetual issues that have existed in the history of US immigration and the immigration policy in the US that had some short comings. Furthermore, the Elians plight expressed an identity crisis of the Cuban-American community in Florida. This identity gave great importance to the Cuban American community around the family, communism, nation and religion framework. Although the custody battle of Elian was just a fair simple matter, it was transformed into a complicated matter by the presence of multinational identities and politics. The lasting effect of the Elian Gonzalez affair was that as the society develops new cultural custody landmarks, the leadership had failed to develop new social and immigration policies. In relation to economic matters, Elian Gonzalez case showed how the second generation of Cuban Americans has differed with the parents generation on economic and political issues in Cuba (Weiser, 2002).

    The Elian Gonzalez affair sparked a political battle in the US after a custody row attracted great attention from the Cuban American community, the US and the Cuban American governments, US bureaucracies and immigration and family law policy makers. The events that unfolded following the rescue of Elian Gonzalez ignited a custody crisis that ended with Elian Gonzalez return to Cuba with his father. During this time period, many Cubans were moving into the US illegally in search of a better life. The Cuban American community also got involved in the case, with many protesters demanding that the boy remain in the US while other citizens across America supported the granting of custody to the father .Although the Miami relatives of Elian and their supporters considered the case to have been handled poorly, others supported the granting of child custody to Elian Gonzalezs father.

We have to be more Mexican than the Mexicans and more American than the Americans, both at the same time. Its exhausting 
Abraham Quintanilla from Selena

    Perhaps to the surprise of many Americans, it is well documented in history that Latinos have done a lot for the United States. Looking back to the very beginning, the first successful colony in the United States was St. Augustine founded by the Spanish in 1565. This means that besides the Native Americans, Latinos have been in the United States longer than any other ethnic group. So why do so many non-Latino Americans treat Latinos as second class citizens

    Prejudice against Latinos is nothing new in the United States. Hispanophobia, the fear of Hispanic  or Latino people, has been documented since the exploration age. Perhaps due to the successes of Spain, Northern European countries began to speak poorly about the country and the places discovered and ruled by the Spanish. Once the United States of America was formed by English speaking men, the discrimination against Latinos in America began. Florida was give to the United States by Spain, with the promise that the United States would not claim any part of Texas. At the same time as the founding of St. Augustine, California was explored by the Spanish. A number of famous explorers landed on the west coast, and eventually the area was settled as a part of Mexico.

    When the United States won the war against Mexico in 1848, half of Mexico became part of the United States. The Treaty of Guadalupe Hidalgo was signed promising to give Mexicans in the United States land owning rights after one year (Robinson, 2006). This ruling was ignored and many Mexican Americans were forced off their land. In New Mexico and Texas, this led to many Latinos attempting to fight for their land with acts of violence. During the California Gold Rush, more non-Latinos entered the area and pressured Latinos to live and work elsewhere. From 1848 to 1860, at least 163 Mexicans were lynched in California.

    As the years went by, discrimination against Latinos continued. In the 1930s Mexican Americans were encouraged to go back to Mexico. 500,000 people were deported at this time, despite 60  of the deportees being American citizens. During World War II, white members of the military attacked Latino youths due to racial tensions. These attacks are now known as the Zoot Suit Riots, named after the popular suits worn by Latinos (Robinson, 2006).

    Currently in the United States, Latinos continue to face problems due to prejudice. Many Americans chose to ignore the Latino presence in Americas history and insist the United States is a European based nation and should remain so. Recently a controversial law was passed in the state of Arizona allowing law enforcement officials the right to question anyone suspicious of being an immigrant and demanding proof of residency on the spot. Critics are saying that this bill, SB 1070, is legalizing law enforcements rights to harass Latinos, and is the equivalent of Nazism and the yellow Stars of David worn by the Jews during World War II (Archibold, 2010). Also  along the border of the United StatesMexico border, a group of vigilantes calling themselves  The Minutemen  independently monitor the area, looking for illegal immigrants. Some have compared this group to hunters, only instead of animals, this group wants to shoot Mexicans. Others, including government officials, have praised their work (McKinley, 2009).

        Another problem that many non Latino Americans have with Latinos is the issue of increased violence. Many gangs in the United States are Latino based. People tend to join gangs when they feel like they do not belong anywhere else. Once initiated into a gang, you will be taken care of for life (Mac Donald, 2004). Someone who is far from home and living somewhere illegal may feel very isolated and either seek out a gang or be sought out by one.  Once gangs take over an area, people begin to live in fear and are not likely to bring attention to gang members. MS-13, a gang started by immigrants who escaped from the repressive regime in El Salvador, has around 10,000 members in over 33 states and is becoming well known for its intimidation habits, recently killing a former member-turned informant with a machete (Johnson, 2006).
   
    Also, Latinos are more likely to be  targets of violent behavior from non-Latinos. A Mexican immigrant was killed by four teenagers in upstate Pennsylvania in 2008. The high school seniors allegedly told the victim  ...this is America, go back to Mexico  along with ethnic slurs. The amount of crimes committed against Latinos increased by 35,  from 426 reported crimes in 2003 to 595 in 2007. Anti-immigration organizations have been formed and popular television personalities like Michael Savage and Lou Dobbs help fan the flames of fear amongst the Latino and immigrant communities. Dobbs has even go as far as saying that illegal immigrants have brought malaria, leprosy and other contagious diseases to this country. This claim was disproved by the Center for Disease Control but the damage was already done. In Seattle, some African Americans feel that because many Latino laborers do not speak English, they are easier to take advantage of and thus easier to employee. The African Americans believe that the rights of Latinos are being put before their rights and are not supportive of illegal workers receiving amnesty (Turnbull, 2006).

    Latinos in the United States do not just have to deal with external struggles they have internal difficulties as well. From extreme culture clash to language barriers to health issues, Latinos must work hard to find a comfortable place in America.

    For the most part, Latino families are extremely close. It is not uncommon for several generations of a family to live in one house together. Parents go to work to support their children who are take care of by grandparents. In the 2000 United States Census, it was reported that 30 of Latinos lived in a house with five or more people. Compared to the 21 of African Americans and 11 of White non-Latino who live with five or more people, the difference is quite large (Census 2000). Latinos tend to branch out away from the typical  nuclear  family and include aunts, uncles, cousins and grandparents in daily life. Children are taught that family comes first and to always respect older members. Because of the emphasis on family honor in the Latino community, many feel that they are missing opportunities. While being expected to contribute to the improvement of the family, moving away for school or a job is not as encouraged. For young Latinos that have grown up in the United States around non-Latinos, this can be a difficult concept to accept. Many feel that their families moved to the United States for more chances but because of their culture, they cannot take these chances, no matter how available they are. Many Latinos believe that what is good enough for them is good enough for their children, and the children do not want to confront their hardworking parents with the idea that there are more options (Marketplace 2010).

    Due to the overwhelming Catholic influence on Latinos, marriage and having children are considered crucial aspects to the family. Children are less likely to be educated about birth control or encouraged to use it, which explains why the families are larger. Latinas are also more likely to get married as teenagers. While the divorce rate is lower than average for Latinos, being encouraged to marry and have children at a younger age again takes away more opportunities that a young Latino may want to pursue (Census 2000). 
   
    Unfortunately for Latinos in the United States, education does not appear to be a top priority. More than two in five Latinos have not completed their secondary education. Only 13 receive a bachelors degree. The Hispanic College Fund was created with the idea of encouraging Latinos to keep going with school. The organization is reaching out to students early on, when they are still in the beginning years of high school. They offer chances for kids to spend a week at a college, hoping that experience will push them further. One student who participated in this program said he wants to go to college, so he can have a professional job, not in construction or on a landscaping crew. His parents also want him to go, but because of their lack of education and  somewhat recent arrival to the United States from El Salvador, they did not know how to help their son. Because many Latinos attend high schools with little funding, they do not always have guidance counselors to help them with their college goals (Marketplace, 2010).

    Another problem in the Latino community is health. Obesity is a large problem for Latinos and it is leading to other health issues. Latinos are twice as likely to have diabetes as non-Latinos. While diet and lack of exercise contribute to this issue, some studies show that some Latinos are genetically predisposed towards diabetes, particularly ones with American Indian or African heritages. Another health issue in lines with obesity is heart disease. Despite all of these health concerns, Latinos are less likely than other Americans to receive medications for their ailments or receive more advanced treatment. Cultural barriers between medical professionals and Latinos further delay treatment and wellness encouragement. Because some Latinos are so devoted to their culture, they are less likely to change their dietary habits or overall lifestyle activities for health reasons (Reyes,  2004).

    Probably the most obvious struggle for Latinos is dealing with language. Not all Latinos speak Spanish, but most Spanish speakers are Latino.  Although not the official language of the United States, it is commonly understood that English is the primary language. Thus the reason for the panicked states of many American citizens who worry that an influx of immigrants, mostly from Spanish speaking countries, will make English irrelevant. Although studies have shown that this is not a valid concern, the issue is still at large.

    There are a lot of Latinos that are not proficient in English and to a lot of Americans, this is unacceptable. Despite the fact that within ten years of living in the United States, the majority of Latino immigrants are speaking relatively good Spanish, they are not learning fast enough. Recently a sandwich shop owner in Philadelphia caused controversy over posting a sign saying  This is America. Order in English . When interviewed, the owner, Joey Vento claims that he has received a large amount of support and seen an increase in sales because of his actions. What non-Latinos seem to forget or not realize is that learning a new language can be very difficult for some people, especially if education was never stressed as important.

    A study done concerning how important learning English is for Latinos showed that 96 of immigrants polled in 2003 believe it is very important for their children to learn English. 88 of American born Latinos agree. Only 2 of Latinos polled, both immigrants and natives, said it is not important for their children to learn English (Pew Hispanic Center, 2006). These findings show that Latinos want to learn English, demonstrating the immigrants strong desires to effectively communicate in their new country.

    Latinos are the youngest and largest minority in America and the population will keep growing. As it grows, Latinos will continue to deal with struggles, as they always have and they will continue to play a strong role in all aspects of the United States, just like always.

The individuality of men and women in the constant struggle of war and revolutionaries in many countries has always caused an upheaval. This was the case in the 60s and 70s just as it is the case in modern world. However, it is expected that times hace changed and the effect cannot be expected to be the same as it was in the 60s. As expected, women have faced a greater challenge as compared to their male counterparts. In modern day, women have a more equal place in society than they did in the 60s and 70s. This, of course, played a major role in the impact that revolutinary identity had on gender relations. There have been many feminist and essential approaches to female political identity in the face of revolution and war. This paper will discuss the effects of the identity of those who partake in revolutionary activities.

Revolutionary Identity
Revolution, in simple terms, is a turn around since it is adopted from the Latin equivalent revolution, which means the same. In definition, revolution is an essential transformation in authority or organizational constitution that takes place in a somewhat short span of time. Revolutions have been categorized into three categories by many scholars. The first generation of scholars looked at revolution in terms of social psychology as well as how revolution affected the society. The second generation focused on creating theories to explain the causes of revolution, when they would arise, and how they affected social behavior. The third category of scholars looked at the struggle of power between competing entities as the main causes of revolutions, especially, when these entities could not agree on a given political system

Revolutions, throughout history, have occurred in different ways in terms of methodology (like boycotts, guerrilla warfares, coup de tats revolts, rebellion forces, non violent resistance, civil wars, and revolutionary terror), ideologies(on slavery, equality, freedom), and time spans. The causes of these revolutions have always been attributed to corruption in organizations, famine and natural disasters, dictatorship and monarchy kind of rule, economic depression, communism and capitalism, feudalism and tyranny. 

These revolutions have brought about change in the economical status of countries, different cultural aspects, and structures of socio-political organizations. The most common typologies of revolutions are socio-economic revolutions like industrial revolution and political revolutions. These are an effort to transform the political institutions and the justifications for political authority in society, accompanied by formal or informal mass mobilization and non-institutionalized actions that undermine authorities (Goldstone, 2001) Revolutionary identity on the other hand is the shaping of the lives of individuals due to the conditions encompassing revolutions. Many countries like Mexico, Cuba and America among other have undergone various revolutions, which were characterized by different movements, to be where they are today. It was a major phase of a nations identity.

Impact of Revolutionary identity on gender values
Land ownership before any kind of revolution, white men were the ones who owned large chucks of land. Women were treated as minorities and majorly worked in the lands or as housewives or slaves. Then the revolts started in most nations. These revolts resulted in many men losing their lands to others, and saw the changes of policy in land ownership. Most lack men were allowed to own land and women too, fought for their rights to be considered equal to men. This allowed women to be allowed to own property like the rest of the populations. A case in point was the agrarian revolution in Mexico under Porfiriato, where many peasants lost their lands and later a law passed which saw all people have a share of land.

Expropriation of land one of the major felt impacts of the revolutions in most nations, especially the Latin American nations was that peasants who owned land were stripped off of their lands. This was especially so during the agrarian revolution. During this time, the government would seize any land and private property and make it their own.

Women participation in the revolts in Mexico, during the revolutions, their roles were valued as they are the ones that nursed the injured soldiers they became the mothers, teachers and wives at the same time. They formed ideologies to have revolutions that preached hope, freedom and equality for all.
Voting rights before the revolution, only wealthy white men were allowed to cast their votes. White men with no property, lack men and women had no voting rights. Gradually, when the revolution began taking pace, and people were asking for equality, these laws were changed in many nations. In the 70s, black men and women were allowed to vote.

Slave trade in the 1800s and early 19th century, slave trade was rampart especially in the northern countries like America, Mexico and Brazil. Rich men owned slaves who worked in their vast lands and who were treated like animals. Most of these slaves were black men, and women who were tasked with house chores. In the 1960s most countries banned slavery and slave trade because of the war and the revolutions that asked for equality. This was done by the slaves themselves who went to the streets to protest against the vast humiliation and treatment they were receiving from their masters, and demanding for equality.

Women soldiers women generally, before the revolutions, were considered housewives or slaves who would do house chores. They were never allowed to voice their concerns or make suggestions to anything. With the up rise of the revolution, women began to raise their voices and demanded to be heard. They began joining various revolution groups and travelling with them in every function. In Mexico, for example, a group of women called the female fighters and the Soldaderas would join revolutions and help them in whatever chores they needed help. They however were not allowed to carry arms, or use them for that matter.

Equality amongst men and women life before the revolution was such that men and women had clear-cut roles. Women were strictly housewives as men did menial works and were the providers. After the revolution, women began revolting and fighting for freedom and equality. According to Mona, women should not talk about help men should do half the work, and women should not ask but tell them to do it. Women advocated for freedom and equality in their households, the government, work places etc. this saw the government appointing women in chief positions and men starting to recognize that women are not only housewives.

Birth of feminism in the 1960s, women started becoming activists and started fighting for civil rights, both as leaders and as mentors. They started to question the gender roles thus helped restructure organizations and institutions around the world. During the 1960s and 1970s there was a sharp division among the womens movements while some advocated for the equal rights between men and women and the similarities between the two genders, others focused on the differences between the two genders and advocated for radical change with regards to these differences. They did this in an effort to show just how different men were treated from their female counterparts, who, according to these women activists, were not seen as human beings. The women started advocating for the expansion of democracy by insisting that equality had to include the realities of its women citizens, and catapulted womens issues onto a global stage. (Frederick)

Indigenous and national movements the revolution saw the uprising of many indigenous and national movements especially in Latin America. In Brazil and Colombia for example, many movements are still existent. These have been the forefront in demanding new political representation, and equal distribution of national resources. Due to these revolutions, Presidents Kirchner of Argentina and Lula of Brazil have taken important steps toward the construction of a regional market and they are no longer amenable to IMF recipes. (Hylton, 2008). In some countries, these movements have formed the government (like the Integrated Revolutionary Organizations (IRO) of Cuba) while in others, these movements (the corrupt ones) have lost the advantage in politics

Justice for most Latin American nations, the 1960s and 1970s was the beginning of the end of most revolutions around the world. In Cuba for example, this marked the end of their revolution and most rebels were captured and brought to trial for the many misgivings such as murder, rape and human rights abuses they had committed.

Formation of government Most revolutions were formed due to tyrannical rules, dictatorship and monarchy kind of rules in many states. In Latin America, Dictatorship and tyranny were the main reasons for revolutions. After the revolution, new governments were formed that would see the elimination of illiteracy and implementation of land reforms. In Cuba for example, after the collapse of Che Guevaras revolution, Fidel Castro took office, implemented an atheistic state, and implemented land reforms that saw the subdivision of larger holdings into cooperatives to help raise the living standards of the Cuban people. With the end of revolutions, most nations were reborn into new nations. This meant that there were new set of rules to be governed and new initiatives that would provide protection of the country and its people and look after its peoples welfare, with a new leader to ensure that these things are implemented and followed. This served as a very vital step in ensuring that both men and women were treated equally and that neither gender was victimized or seen as a lower gender.

Religion revolutions had a major impact on religion in most countries. In Mexico for example, the church was a source of hope for most people after the revolution and Mexico as a nation became rooted in Roman Catholicism as their religious status. In others like Cuba, Catholicism and religion was repelled. All properties in the ownership of the church were seized and the bishops expelled from the nation, and the nation was declared as an atheist state.

Youth movements revolutions had major impacts on the youths, and especially those in the universities. The change of revolutions with time saw the change of students attitudes and positions. Due to this, university officials often forces revolutionary ideas and change of curriculum upon their students. This gave rise to youth groups. These youth groups used artistic work like music, poetry and artwork (like graffiti) to speak out and air their own views on the revolutions. This made the government suppress this kind of outcry and suppress freedom on the universities, which then made the students form revolutions against the government. An example is the National University of Mexico.

Economic improvement the revolution saw many nations suffering economically especially the peasants whose lands were being expropriated. The end of the revolution saw economic boosts since the economy was rebooted by the laws put in place by nations (in Cuba, the land reforms helped the peasants), most third world countries had access to funds from IMF to strengthen their economies and many nations engaged in regional and international trade.

Social Aspect the revolution had a major impact on the social aspect of most countries. It ensured the creation of alliances and treaties between nations. In Mexico for example, America had to come in and intervene hence therefore forcing the two countries to become allies. Most countries with revolutionary fronts often have intervention from other countries that enable close ties to exist between these nations.  

Overall, the revolution just had a limited achievement of status for most people, and especially women. Although, most of the inequalities in terms of gender values and roles were done away with, they did not completely remove the status quo of the individual. Women today are still regarded as a minority and they have designated roles that they cannot handle that belong to men. Women, on the other hand, were unable to fight for the poor women to gain more economic justices and were unable to change most institutions thinking on the gender roles and to convince the society that the upbringing of a child is the role of the whole family as a whole regardless of the gender.  This has had an effect on both men and women as they are being brought up.

However, as times keep changing, women have upgraded their place in society and they are now being seen as people who can make a difference in the society in the same capacity in men. It has also been seen that there are various roles that are specifically left for women and men are not expected to undertake them. This is also being seen to change because the roles of both men and women are slowly becoming one and the lines that separate are gradually becoming thinner.

This paper will look at the effects of the subprime mortgage crisis and how it affected the global economy. Special attention will be paid to Latin American countries (Chile) and how they managed to steer away from the global financial crisis. The paper will also give a brief review of how the subprime moorage crisis was triggered, and this should shed some light on how unregulated the US financial sector is. The different aspects of regulation employed in the Chilean financial sector will be looked at and they will be compared top their US counterparts

The Subprime Mortgage Crisis
The financial crisis triggered by the subprime mortgage crisis in the US was initially referred to as the worst economic crisis since the great depression. It was estimated that millions of citizens across the globe will be driven into poverty and the worst hit would be the third world country. Rightly so, the magnitude of this financial crisis was as predicted the US economy went into recession, the British, German, French, Japanese, and other world leading economies slipped also followed suite.

Some countries that had liberalized their financial sector for the sake of rapid economic growth were hardest hit. Top of the list are Iceland and Ireland, whose domestic and international debt will be paid by future generations, long after the recession has passed. Greece has also found itself in a similar situation in terms of accruing an unimaginable debt. Together with Greece, the likes of Ireland and Iceland have one thing in common they all liberalized their financial sectors to the point that banks could conduct individual transactions valued at billions of dollars without any form of oversight.
Interestingly, some countries were barely scathed by the financial crisis triggered by the subprime mortgage crisis in the US. China and India continued with their impressive growths but their economies did slow down a bit when the recession hit. The Central American economies were somehow expected to collapse spectacularly like the Icelandic and Irish economies but this wasnt the case. This was highly unusual, considering their dependence on the US economy.

The same can be said about Latin America. Emerging nations like Brazil have been recording strong growths over the last couple years but their major hindrance is the high poverty level within its borders. A similar situation is witnessed in Argentina, Bolivia and Venezuela these countries have a strong export market but the huge divide between the haves and have-nots translates to poor distribution of the countrys resources. Since the financial crisis was supposed to hit the poor much harder, it was hypothesized that the Latin and Central American economies will eventually come tumbling down like a house of cards. However, this wasnt the case. Why is that
Lessons Learnt by Latin American Countries

The answer lies in how their financial markets are regulated or deregulated. In the 1980s, the US embarked on a financial deregulation campaign which saw the reduction of caps put on loans and deposits. These caps were hurting banks in that investors were opting for mutual funds which offered less restrictive investment vehicles. Congress played an important role in holding hearings and ultimately in passing legislation in the early 1980s that guided deregulation (Hornbeck, 2009, p 2). The FDIC (Federal Deposit Insurance Corporation) was given the mandate of being the financial watchdog during these prosperous times. On the other hand, the Latin American economies followed a totally different route to that of the US. The Latin American countries were prone to financial crises triggered by deep fiscal deficits, poor prospects for servicing debt, questionable macroeconomic and exchange rate policies, and weak institutions (Hornbeck, 2009, p 4). Most investors shied away form these countries during the 1980s and 90s. Those that did always had an exit plan which was initiated the moment they sensed trouble.

With time, oppressive regimes in Latin America were replaced with more sensible governments which embarked on realistic financial reforms. The debt crisis which hit the Latin American countries in the 1980s trained them to be more prudent when it came to regulating their banks and credit institutions. Even though these countries managed to establish, long-term equity and bond markets, they did not engage in the same level of risks as their US and European counterparts. Even though the bond markets have played an important role in Latin America (in terms of attracting foreign exchange), we will look at the banking sector because this was the catalyst in the current financial crisis.

Regulation of Financial Markets
Prudential regulation and bank supervision are the hallmarks of the Latin American banking sector. The past financial crises have taught them to converge with the current international standards in banking, but not at the expense of exposing them to unnecessary risk. In fact, the ability of Latin American countries to avoid major financial instabilities is rather striking. The main reason is their macroeconomic policies. The movement towards flexible exchange rates, in particular, is a major change from previous periods of crisis (Hornbeck, 2009, p 6). Depreciation of their respective currencies is relied upon to do most of the adjustment works and this has freed up their monetary policies, a feat that wasnt achieved in their previous financial crises. Furthermore, the Latin American Central Banks have made efforts to support their banking systems by maintaining high levels international reserves and this has led to a direct increase in liquidity in the private sector. Banks no longer have to comply with stringent reserve requirements and this has provided alternative financing to the corporate sector.

Its clear that the current financial systems in Latin America are more robust than in the past. As reported by the International Monetary Fund (IMF), the starting conditions of Latin American banks, on average, were healthy as the current financial crisis unfolded (Hornbeck, 2009, p 8). The Capital-Asset ratios were nearly double the required standards and the returns on equity and liquidity ratios were adequate for non-crisis situations. In short, the banks balance sheets were healthy. They had adequate levels of domestic deposits, few toxic assets, and only light exposure to derivatives, mostly in the large banks (Hornbeck, 2009, p 8).

Lack of Oversight in the US
In general, the Latin American financial systems were effectively regulated and this was unlike their US counterparts. To understand, the unregulated manner of the US financial systems, this paper will look at how the subprime mortgage crisis was triggered. Economists believe the current financial crisis was triggered by a shadow banking system operating within the Western economies. This parallel banking system essentially caused the credit market to freeze due to lack of liquidity in the banking system. The entities which make up the shadow banking system include hedge funds, which borrowed short-term loans in the liquid market and then purchased long-term, illiquid risky assets (Dropkin, 2009). They disrupted the credit markets (banking sector) and made it vulnerable to rapid changes in the market. These entities became critical to the credit markets, underpinning the financial system, but were not subject to the same regulatory controls (Dropkin, 2009).

To illustrate the influence of these entities within the shadow banking system, the total assets they held in 2007 was roughly 2.2 trillion but after unregulated short-term borrowing, this grew to 2.5 trillion, with hedge funds accounting for 1.8 trillion. The shadow banking system owned a big chunk of the entire credit market if one compares them to the assets held by major commercial banks. The combined balance sheet of the then five major investment banks was 4 trillion, while the total assets of the top five bank holding companies in the United States at that point were just over 6 trillion (Gandel, 2009). The entire banking industry in the United States was valued at 10 trillion. As the shadow banking system continued expanding by borrowing from the credit markets, the conventional banking system was continuously exposed to financial vulnerabilities.

The financial crisis was eventually triggered when corporations that had invested in commercial paper withdrew from the money market mutual funds worth 144.5 billion in one week and this was after they had withdrawn 7.1 billion in the previous week. (Chicago Tribune, 2008)These massive withdrawals in two weeks affected the credit markets ability to meet its short-term obligations. The actions of the shadow banking system and the role of the FDIC in insuring some of these transactions were the focus of sharp debate.

It appears like the FDIC was reduced to the mere role of a toothless watchdog due to some weaknesses in its legislations. The first problem was no uniform law that governs the dealings of the entire financial institutions has ever been drafted. Banks, thrifts and insurance companies are answerable to the Bankruptcy Code, with banks and thrifts being subject to a specialized insolvency regime under sections 11 and 13 of the Federal Insurance Act if their deposits are insured by the FDIC (FDIC, 2009). Broker dealers on the other hand are subject to the Securities Investor Protection Act in addition o the Bankruptcy Code (FDIC, 2009). These differing legal regimes made it had for any federal body to regulate all the financial dealings in a fast-moving economy. If any forced regulations were instituted, then time would have been wasted in-between transactions. The common assumption was there are enough professionals in the industry and common sense would prevail. Adding to this, another hypothesis was the system was too big to collapse a mentality which fuelled the demutualization of stock exchanges in Europe, Asia and America.

As much as FDIC might blame the weaknesses on the current legislations and the sheer number of players on the banking industry for their inability to predict and avert the current financial crisis, the fact remains they were caught off-guard and the only word that defines such a weakness is incompetence. This assumption might seem overtly rude but there is credible evidence which shows FDIC did not do enough to avert the crisis. In an interview with Reuters in February 2008, the chairman of FDIC, Sheila Bair, predicted that the probability of a big bank failure was highly unlikely and the institutions that are most likely in trouble are the smaller ones. When asked what keeps her up at night she replied Probably a large bank failure but I dont think thats going to happen the chances of that happening are very, very remote (Poirier, 2008).

Comparing the situation in the United States to the one a stable Latin American economy like Chile, one gets a totally different picture. By all accounts, Chiles economy is the most stable in Latin America and this has been sustained for the last 25 years, thanks to a banking law which that was passed in 1986. In the aftermath of two financial crises, the first that resulted from macroeconomic policy failures that were exacerbated under a system of over regulation, the second directly related to catastrophic under regulation, Chile redesigned its financial regulatory system (Hornbeck, 2009, p 12). After the changes, Chile was able to avoid the major financial crises and the current one is no different. The current capital adequacy standards in Chile demand that every bank must maintain a capital-asset ratio exceeding 8. Chilean banks have to meet capital requirements relative to reserves, deposits, and other liabilities capital must equal at least 3 of total assets. If the banks fail to comply, the government may place caps on their loans or investment abilities.

Unfortunately, this isnt the case in the US financial sector. Hedge funds are allowed to trade without proving that they have the necessary reserves to back up their activities. If the FDIC attempts to regulate them further, then they will be blamed for slowing down a fast-moving economy. The lessons applied from past mistakes have enabled the Latin American countries to steer away from the global financial crisis. The existing prudential regulatory and oversight system has so far limited these types of mistakes from being repeated and is credited with helping maintain the health of the banking sector during the global financial crisis (Hornbeck, 2009, p 12). The focus is now on the US and other debt-riddled countries. It remains to be seen what changes theyll institute to avert future crises.