Meaning of dollar diplomacy. â William Howard Taft. Dollar Diplomacy was the policy of using America's financial power, rather than military intervention (the Big Stick), to extend their influence abroad. What actions were the US prepared to take to prevent European intervention in Latin-America? See more. Basically, it meant making other nations dependant on the dollar so that they welcome America. Make a list of countries that Dollar Diplomacy impacted. Taft, defended his Dollar Diplomacy as an extension of the Monroe Doctrine. A policy aimed at furthering the interests of the United States abroad by encouraging the investment of US capital in foreign countries. Historian, Yvonne Berliner, introduced the idea that a marked gap between the theory of Dollar Diplomacy and its practice occurred between the United States and Latin American countries, as the United States believed it was rational and 'progressive', Latin Americans could not help but see them as very thinly veiled imperialism. Dollar diplomacy definition is - diplomacy used by a country to promote its financial or commercial interests abroad. Dollar Diplomacy was not only restricted to Latin America, Liberia in West Africa were in deep debt and was soon to be colonised by the British and the French. He, also, used it as he wanted America to be less involved in World affairs, except for trade, as outlined by George Washington. Learn what inspired President Taft to implement Dollar Diplomacy â getting Americans to invest money in other countries to maintain global influence â from 1909 to 1913. Dollar Diplomacy, 1909-1913 From 1909 to 1913, President William Howard Taft and Secretary of State Philander C. Knox followed a foreign policy characterized as "dollar diplomacy." The policy would force Latin American nations to become dependent on the dollar to prevent any European intervention. The Dollar Diplomacy led to a souring of diplomatic relations between America, Cost Rica and Guatemala. Define dollar diplomacy. 1. dollar diplomacy noun. Basically, it meant making other nations dependant on the dollar so that they welcome America. Taiwan accused China of using " dollar diplomacy" to steal away Nauru. What was the main aim of Dollar Diplomacy? Dollar Diplomacy focused on business. Financial managers would then move in and remake the economy to suit the USA's trade and business interests. Make a list of the counties that Dollar Diplomacy impacted. It is when the goal of the government is to make the country a commercial and financial world power. It grew out of President Theodore Rooseveltâs peaceful intervention in the Dominican Republic. The US were prepared to use American loans to pay off European creditors. Dollar diplomacy definition, a government policy of promoting the business interests of its citizens in other countries. Dollar Diplomacy. The policy itself was aimed at furthering the interests of the U.S. abroad by encouraging the investment of U.S. capital in ⦠Dollar Diplomacy is the effort of the United Statesâparticularly over President William Howard Taftâto further its aims in Latin America and East Asia through use of its economic power by guaranteeing loans made to foreign countries. What actions were the US prepared to take to prevent European intervention in Latin-America? It looks like your browser needs an update. Wilson's theory was that by only supporting those countries, U.S. ideals would spread to other countries that held different ideologies. Dollar Diplomacy, 1909â1913. He wanted the U.S. to have a strong economic roots so it could have power over the rest of the world. This was in order for the US to extend its foreign policy abroad without creating a war and that the big stick policy was a thinly field imperialism. Oh no! Does this kind of approach ( dollar diplomacy) suit the people's needs? Except where expressly noted otherwise, the contents of this course are based on materials originally published by OpenStax College under a Creative Commons Attribution License . As you can see in the cartoon below, poverty was a severe threat to Taft's dollar diplomacy. William Taft used Dollar Diplomacy because he was a Progressive in foreign policy and did not believe in wielding the 'Big Stick', in order, for the US to extend its influence abroad. With which major foreign policy of 1903 did Dollar Diplomacy begin? Financial managers would then move in and remake the economy that was better suited to the US's trade and business interests. The foreign relations of the United States actually and potentially affect the state of the Union to a degree not widely realized and hardly surpassed by any other factor in the welfare of the whole nation. Information and translations of dollar diplomacy in the most comprehensive dictionary definitions resource on the web. Dollar diplomacy in Africa was specific to Liberia, which was given US loans for the first time in 1913. Historian, Tom Leppard, discusses that the Dollar Diplomacy was a means to curtail Japanese and Russian influence in China and Manchuria. It was basically an outgrowth of European imperialism since it involved cross border cooperation. However, in response to the nationalism of the Nicaraguan leader, Zelaya, US mining interests sponsored a revolution that was backed by Taft's government. Oh no! Dollar diplomacy was a major segment of U.S. foreign policy at the beginning of the 20th century. 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