How did the economic depression after World War I affect governments in Latin America? People lost faith in democratically elected governments. Authoritarian dictators were removed due to their failure to deal with economic problems. Democratically elected governments became well supported. Most Latin American people supported ruling oligarchies.

The impact of Great depression hit the economic conditions in countries of Latin America. Chile, Peru and Bolivian economies became instable.

The rise of Authoritarianism in Latin America also can also be called reason for not reviving from crippling economic condition. Fascism was prominent during the Great Depression.

Coffee trades fell to a lowest level which lowered the coffee prices. To keep the coffee prices stable the government started to hoard coffee and dumped major part of coffee in Mediterranean sea, Coffee plantations were also set ablaze to prevent the price of coffee hitting the lowest. Sugar production halted for many years as sugar was available in cheapest price.

Investors from other countries neglected this crippling economy of Latin America.