https://padlet.com/aseburwell/g6dww6ldx60f71mf from the perspective of a novice IB student en-us 2021-01-29 00:03:31 UTC 2025-12-13 18:47:04 UTC hello@padlet.com https://padlet.net/icons/png/1f4dc.png aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1138997680
According to Google.... "the use of a country's financial power to extend its international influence." 

According to our textbook.... " the use of private funds to serve American diplomatic goals and garner profits for American financiers, and at the same time bring reform to less-developed countries." 

According to ash, it is basically using economics for diplomatic means; literally using dollars for diplomacy. 

Essentially, Dollar Diplomacy does this: uses financial opportunities to stabilize US foreign relations which then leads to security in investments and control over specific areas.

]]> 2021-01-29 00:06:46 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1138997680 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139009124 According to sources, Dollar Diplomacy was used to promote commercial interests since the early years of the Republic. But, the policy grew in activity during President William Howard Taft's presidential term, specifically in 1912.

Taft and his Secretary of State Philander C. Knox shared the view of supporting Dollar Diplomacy and Knox himself secured investments in China.

They both shared the idea that the goal of diplomacy should be to create stability in foreign countries  and with it, increase financial opportunities.

However, the actually policy of Dollar Diplomacy was initiated by President William Taft himself.

When Woodrow Wilson became President in March 1913, he cancelled all form of support for Dollar Diplomacy. 


TLDR; Main "president" for Dollar Diplomacy was William Howard Taft ]]> 2021-01-29 00:13:30 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139009124 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139010057 In reality, Dollar Diplomacy was not a sole policy and was used in combination with the other foreign policies at the time (Monroe Doctrine, Big Stick, and Moral Diplomacy). However, there are a few key instances of the policy being used. ]]> 2021-01-29 00:14:03 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139010057 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139012102 Overall, the term "dollar diplomacy" is now used with a negative connotation, specifically in Latin America where the phrase is used to show disapproval of the role the U.S. Government and Corporations held in economic, diplomatic, and military powers whiling opening foreign markets. 

Overall, Dollar Diplomacy is considered a failure. ]]> 2021-01-29 00:15:21 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139012102 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139013468
(socially, politically. economically) 


As a result of US meddling in Latin America through Dollar Diplomacy, each country faced a significant social upheaving and instability. It failed to put an end to waves of revolutions in places such as Haiti, the Dominican Republic, and Nicaragua. It also failed to prevent revolutions in countries such as China and Mexico.

It also failed to counteract majority of economic and political instability in the targeted countries as US had to send in troops to protect American investments and failed to gain profits for American businesses. ]]> 2021-01-29 00:16:10 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139013468 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139014581 In result, Latin America became wary of economic control by the US. It also created a growing tide of anti-imperialism, both within the United States and within Latin America as well. 

One big example of this hatred for imperialism and economic control evidently comes from Castro's Cuba. 
(Which if you don't remember, led to Castro declaring Cuba as Communist in spite of America and also eliminating a large amount of corporations from the island nation.)]]> 2021-01-29 00:16:51 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139014581 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139061594 2021-01-29 00:43:51 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139061594 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139080927 Taft's Dollar Diplomacy in Nicaragua guaranteed loans to their government and supported the overthrow of the current leader Jose Santos Zelaya in favor of Adolfo Diaz in his place. The primary reason being Diaz was more in favor for US economic relations and would allow the US to grow future investments. 

In response, the Nicaraguan people were resentful and US military intervention had to be sent in when Civil War broke out, leading to US occupation continuously from 1912-1933. ]]> 2021-01-29 00:55:00 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139080927 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139081233 In 1912, Mexico had plans to allow Japanese corporations to purchase land, which included Magdalena Bay. Taft feared Japan might use Magdalena Bay as a naval base and so he objected, using his economic position to reinforce his statement. Faced with this economic threat, Mexico abandoned the plans for a Japanese purchase. ]]> 2021-01-29 00:55:11 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139081233 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139082066 In China, Taft aimed to strengthen the Open Door Policy first implemented by Roosevelt and encouraging the free trade initiated following the Boxer Rebellion. Prior to this rebellion, CHina remained isolationist in its economics, so this proposed a good opportunity to open up its borders for trade. 

This was achieved through an alliance of American, British, French, and German investors who put in their interest and investment towards building a railroad in China. Russia and Japan were excluded from this western alliance and Taft secured the American financing (through the J.P. Morgan corporation) for construction of a railroad from Huguang to Canton. However, the railroad project collapsed in 1910, embolding Japan to solidify and extend holdings in China to the point where internal discourse led to the overthrowing of the Qing dynasty in 1911. ]]> 2021-01-29 00:55:43 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139082066 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139084290 Three American multinational companies (the United Fruit Company, the Standard Fruit Company, and the Cuyamel Fruit Company) dominated the banana industry and therefore controlled the road, rail, and port infrastructure of Honduras. 

By the 1930s the United Fruit Company owned 3.5 million acres of land in Central America and the Caribbean which gave it control of the economic situations in these countries and therefore, power over the governments, establishing the phrase "banana republic." ]]> 2021-01-29 00:57:02 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139084290 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139085942 Taft's Dollar Diplomacy in Honduras was in response to the massive debts owed by the country to British investors. The political situation concerned investors and fear of a British invasion arose. 

In response, the Taft administration sent in American bankers to help improve economic stability and injected American funds to help fix the debts. This averted the immediate crisis and the American bankers stayed in Honduras to manage the financial affairs of the country, establishing American control over their economy. ]]> 2021-01-29 00:57:58 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139085942 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139086418
The primary motive for Taft's relationship with Liberia was to guard the American population within the country. The two countries shared very close diplomatic, economic, and military ties since 1819. As a part of Taft's Dollar Diplomacy, the US arranged an international loan of $1.7 million over 40 years toward Liberia. ]]> 2021-01-29 00:58:10 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139086418 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139260321 Obviously, I have to include the wiki. ]]> 2021-01-29 02:44:30 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139260321 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139262702 2021-01-29 02:46:03 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139262702 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139263777 This website highlights the key takeaways and such really well ]]> 2021-01-29 02:46:41 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139263777 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139265628 I recommend this one for a good example, because it really illustrates how economic position can hold political power ]]> 2021-01-29 02:47:56 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139265628 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139269721 2021-01-29 02:50:36 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139269721 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139273607 2021-01-29 02:53:06 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139273607 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139274986 2021-01-29 02:54:02 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139274986 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139275479 2021-01-29 02:54:19 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139275479 aseburwell https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139281633 2021-01-29 02:58:34 UTC https://padlet.com/aseburwell/g6dww6ldx60f71mf/wish/1139281633