Watching Visual Politik, an economics/current events channel on YouTube, has taught me a lot about what makes a nation succeed. Based on the videos I've seen, I am going to look at a potential ITTL path of one of Latin America's OTL failures.
March 10, 1994
The Economist
The Salvador Miracle: What Turned a Central American Backwater Into the Region's Fastest Growing Economy
By Dennis Hawthorne
"Enjoy your stay, Comrade", says Rodriga Juarez, the clerk at Arbol Verde Hotel, in perfect American English. I instinctively offer her a few colons, but she rebukes me with the usual, "tips are not allowed" phrase uttered by service workers. A Soviet tourist comes after me, and I hear Juarez greeting him in equally flawless Russian.
The woman's flawless knowledge of languages and American phrases make me think I'm in Los Angeles or Miami, but in fact, I am in Playa El Cuco, one of the most popular beaches in Latin America. Tourists from the UASR and even as far away at the Soviet Union enjoy the sands and the clear blue waters.
The residents of El Cuco aren't just known for play. On the beach, I observed El Salvadoran and Mexican college students working together on an oceanic study.
The diverse population and culture in this tiny Central American state has given it the nickname of The Nation of Nations (El Nacion De Naciones).
But it is this cosmopolitan nature of the Salvadoran proletariat that has allowed its standard of living to surpass Costa Rica.
A Man of Vision
Augustino Maradon, the Chairman of the History Department at El Cuco College, greets me at a modest beachfront cafe in perfect English.
"I spent a year abroad living in Minnesota," Maradon says. "I nearly froze to death, and I even picked up that Minnesota twang." He continued with a smile.
While Maradon does believe in the Marxist of view of history overall, the cosmopolitan El Salvador can be credited to El Salvador's first socialist leader, Arturo Araujo.
"Primier Araujo was himself was an usually cosmopolitan figure," Maradon says. "He was a member of the country's bourgeois elite, and received an education in London. There he was introduced to the bourgeois socialist policies of the British Labor Party, and he even married a British women, Dora, known to us affectionately as 'Mama Dora' ."
Araujo thought European-style social democracy would be the solution to El Salvador's social problems. By 1930, the country was the quintessential banana republic (albeit with coffee as a the main export). Only a handful of well connected families controlled the wealth generated by the sale of coffee. Unlike Araujo, the typical El Salvadoran had traveled no more than 10 kilometers from his or her home, and was little more than a serf for the powerful landowners.
The gap between rich and poor surpassed that of even tsarist Russia or the pre-1930s American South.
The country's politics proved equally unstable and feudal, with dozens of military strongman and politicians succeeding each other over the course of the 19th and 20th centuries.
"Power in El Salvador came from the barrel of a gun," Maradon says.
Araujo himself had been the first democratically president in 1931 under a British-inspired Labor Party ticket. Within in months, however, the landowning aristocrats tossed him from power.
"He tried to divide up the land," Maradon said," and those bourgeois reacted the way they usually do: force."
Araujo, Maximiliano Martinez, surpassed the brutality of previous strongmen. During his three years in power, he massacred nearly 40,000 peasants, annihilated the remnants of El Salvador's population.
Revolution and Trouble
The 1933 American Civil War had an immediate impact on the Martinez regime. The loss of financial aid and a market for coffee immediately triggered rebellion throughout the country. Peasants fled from their feudal masters, and starting seizing their property.
Araujo, living in exile in Guatemala, returned his country to lead the rebellion.
After the fall of the MacArthur regime, the new UASR government became directly involved in the rebellion. On March 10, 1934, Martinez was forced from the capital, San Salvador. (March 10 is celebrated in El Salvador as Liberation Day, or Dia de la Liberacion).
Araujo, the British-style bourgeois dissident, stood out among the more rugged figures of Latin American liberation, like Lazaro Cardenas and Augusto Sandino. Nevertheless, what he lacked in charisma, he made up for in Old World manners and geniality.
"Visiting him, one could always expect tea and crumpets," commented Maradon.
Araujo, as ruler of the newly renamed Socialist Worker's Party, or Partido Socialista de los Trabajadores (PST), would rule over El Salvador for over three decades, longer than any other socialist Latin American leader. His legacy is felt everywhere, with statues of him being found all over the country, and his popular nickname "Amigo", which is still used by those who lived through the Araujo years, like Maradon.
"When he died, we all felt like we had lost a father," commented Maradon.
However, El Salvador, like many other countries, struggled more than most nations realized in the transition from quasi-feudal farming to socialism. Araujo's grip on power was still tenuous.
Araujo's early reign was marked a resistance to industrialization, in favor of an attempt to modernize and diversify the country's agricultural economy. The policy called for creation of collective farming, fair trade agreements with the UASR, and in the importation of modern agricultural tools.
"Araujo called it 'playing to our strengths' ", said Maradon. "Araujo believed in an agrarian vision of the economy".
Underneath the image of collective unity, the policy was more or less mixed. Agricultural production did in fact rise, and was made more efficient, but the benefits of modernized agriculture did not benefit the El Salvadoran people.
The modernization of agriculture depended on a policy of enclosure that pushed tens of thousands of peasants of lands their ancestors had lived on for generations, into the cities like San Salvador, that quickly became slums of unemployed workers, and the demand for coffee and other crops ultimately did not make up for the investments. His only source of investment, the UASR, did not see El Salvador, with its size and isolation as an important strategic ally in a potential war with the British Empire, and were stingy in providing funds.
The only true beneficiaries of the policy were Araujo's supporters within the PST, who earned lucrative collective manager positions, and still had the same coercive policies of the old feudal lords.
"The common joke in El Salvador was 'capitalism is man exploiting man, while communism is the opposite,' ", commented Maradon.
This unemployment nearly led to the return of Martinez, who started an insurgency among disgruntled peasants who were appalled by the anti-clericalism of Latin American communism.
War and Opportunity
It was ultimately the Integralist horde that secured Araujo's position. With Salgado's psychotic war on Latin America, El Salvador found itself as the strategic position. Not only did the war lead to a huge demand for El Salvadoran coffee and other goods, its isolation- once a hindrance to development- from the inferno of South America turned into a prime location for military investment.
"In the event that the Integralists overran Panama," commented Maradon, "El Salvador would be for Red Latin America like the Urals were for Russia, a place where military resources could be shielded from enemy advance."
Araujo quickly made himself a major part of the South American theater. Tens of thousands of American and Latin American soldiers (as well as from Soviet Russia and Spain) would arrive in El Salvador, where they could trained in relative safety. Arms factories were built, and infrastructure was modernized. Over 100,000 El Salvadorans (1 in 20 of the population) would fight in the South American theater, with 30,000 of them dying. Ten of thousands of El Salvaodorans would work in seasonal agricultural jobs in the UASR. His diplomatic skills made him crucial in the negotiations between Comintern and the British Empire. (Winston Churchill even praised him as "a true gentleman" in his biography).
Araujo, however, saw that war could not be the future for El Salvador, as it would eventually end, and end the economic miracle his country enjoyed. To this end, he chose not to use the money gained from the war to indulge in social investments, unlike his more populist contemporaries. (This lead to El Salvador avoiding the post-war recession that struck the rest of Latin America).
Araujo saw the future in his country, not on war economy, but in the effects of having so many foreigner fighters in his country.
"Araujo saw how the Latin American, UASR, and Russian soldiers often bought crops from the farmers, bought goods from the shopkeepers," commented Maradon. "They didn't just bring money, they brought ideas that ultimately benefited the El Salvadorans. The migrant workers who went to America also would bring back benefits."
Araujo witnessed how Sandino's welcoming of nearly 150,000 Jewish refugees to Nicaragua helped modernize the country, (Araujo would welcome nearly 10,000 Jews to El Salvador during and after the Second World War) and was seeing similar benefits to the stationing of foreign soldiers. His own ability to visit the outside world allowed him access to the ideas that made him reform his country.
"Araujo foresaw the world we live in now. The world where borders would no longer matter, where workers would come from Africa even, where tourists would travel from as far away as Russia. And by putting El Salvador at the center of globalization, he would ensure its success for generations to come."
Integration
In the post-war years, and as the Red and Blue blocs separated, Araujo became one of the most staunch advocates for inter-Comintern integration, and playing a leading role in the Treaty of Buenos Aires. His would contribute tens of thousands of his comrades to some of the most important conflicts of the early Cold War.
Domestically, Araujo began laying the groundwork for the cosmopolitan El Salvador that would benefit from the treaty.
In 1950, El Salvador had, and still has, among the most comprehensive language courses in Latin America. Starting as the age of five, children were exposed to English and Russia by teachers brought in from the country.
"My English teacher was a man from Michigan, my Russian teacher a man from Moscow. We had to learn to speak into order to stay in class," comments Maradon.El Salvador is estimated to have the highest rate of tri-lingualism in the world, with nearly 10 percent of the population fluent in Spanish, English, and Russian (among 18 and under, the proportion is nearly 50 percent).
Araujo invested heavily in foreign exchange and travel among young people, subsidizing youth visits to America, Mexico, and Russia.
At any given time, nearly 100,000 young El Salvadorans are abroad on some kind of exchange program, working as far away as Palestine and Mongolia.
Araujo encourage the free flow of capital and goods among Comintern nations, even among the Soviet bloc nations.
Araujo, to encourage American tourism, also push a staunchly liberal social agenda (fighting his own prejudices born from his upper-class Catholics roots). In 1956, El Salvador became the first Latin American nation to decriminalize homosexuality, in in the early 1960s, pushed for the emancipation of women, legalizing abortion.
"My mother, Miranda was able to work as a secretary," commented Maradon. "She was a first woman in her family to work outside the home. She praised Araujo til the day she died."
Araujo would not live to see the fruits of his policy of cosmopolitan internationalism. He died in 1967, after over 30 years in power. As a quasi-monarchical figure, Araujo was mourned throughout the country. Nearly the entire population of San Salvador filed past his coffin over a week.
"We stood in line for three days to see our "amigo"," comments Maradon. "I remember my mother and father weeping as we filed past his body".
Unlike other leaders, whose legacy is altered by their successors, Araujo's legacy only grew after his death.
El Salvador: Center of the Global Commune
Around the beaches of El Cuco is the sound of Russian. This Eastern Slavic language has found a new home in his Central American state.
"I have several Russian friends and students," commented Maradon. "I use suka almost as I use "puta", he quips.
The breakdown of trade and travel barriers in the late 1970s, and the liberalization of the Soviet bloc, did indeed have the effect that Araujo predicted.
El Salvador has become a mecca of Comitern tourism and trade. Not just from the hedonistic Americans either. El Salvador remains the most popular tourist site for Soviet travelers in Latin America, earning it the nickname of the "Latin American dacha".
Many of those Soviet tourists often end staying, often as retirees. It is estimated that nearly 30 percent Salvador 6 million inhabitants are foreign-born, 60,000 of them from the Soviet Union.
El Salvadorans take pride in their dynamic and diverse society, and in the man who helped set the stage for it.
"While the Marxists claim that the stateless world is inevitable, men are the ones who must create that," Marando comments. And Araujo is the man who has given us the future ."