The Roosevelt Corollary was a substantial amendment to the Monroe Doctrine by U.S. President Theodore Roosevelt in 1904. The Monroe Doctrine is a US doctrine which on December 2 1823 stated that European powers were no longer to colonize or interfere with The United States of America —commonly referred to as the The President of the United States is the Head of state and Head of government of the United States and is the highest political official in United States by Theodore Roosevelt (ˈroʊzəvɛlt October 27 1858 January 6 1919 also known as T Roosevelt's extension of the Monroe Doctrine asserted the right of the United States to intervene to stabilize the economic affairs of small nations in the Caribbean and Central America if they were unable to pay their international debts. The alternative was intervention by European powers, especially Britain and Germany, which loaned money to the countries that did not repay. The catalyst of the new policy was Germany's aggressiveness in the Venezuela affair of 1902-03. (Marks 1979)
Mitchener and Weidenmier (2006) show the economic benefits to the small countries. The average debt price for countries under the US "sphere of influence" rose by 74% in response to the pronouncement and actions to make it credible. That is, their bonds rose 74% because buyers now believed they would be repaid. The increase in financial stability reduced internal conflict because political factions could not count on winning control of the national treasury if they won a civil war. The program spurred export growth and better fiscal management, but debt settlements were driven primarily by gunboat diplomacy. In International politics, gunboat diplomacy refers to the pursuit of Foreign policy objectives with the aid of conspicuous displays of Military power&mdashimplying
Roosevelt's December 1904 Annual message to Congress declared:
All that this country desires is to see the neighboring countries stable, orderly, and prosperous. Any country whose people conduct themselves well can count upon our hearty friendship. If a nation shows that it knows how to act with reasonable efficiency and decency in social and political matters, if it keeps order and pays its obligations, it need fear no interference from the United States. Chronic wrongdoing, or an impotence which results in a general loosening of the ties of civilized society, may in America, as elsewhere, ultimately require intervention by some civilized nation, and in the Western Hemisphere the adherence of the United States to the Monroe Doctrine may force the United States, however reluctantly, in flagrant cases of such wrongdoing or impotence, to the exercise of an international police power.
Presidents cited the Roosevelt Corollary as justification for U. S. intervention in Cuba (1906-1910), Nicaragua (1909-1911, 1912-1925 and 1926-1933), Haiti (1915-1934), and the Dominican Republic (1916-1924). The Republic of Cuba (ˈkjuːbə or) consists of the island of Cuba (the largest and second-most populous island of the Greater Antilles) Isla de la Nicaragua (ˌnɪkəˈrɑgwə officially the Republic of Nicaragua () is a representative democratic republic and the largest nation in Central America Haiti ( English: ˈheɪ·tiː or haɪ·ˈjiː·tiː French Haïti a·i·ti Haitian Creole: The Dominican Republic ( Spanish: República Dominicana;) is a nation located in the Caribbean region and shares the island of Hispaniola with
In 1928, under President Calvin Coolidge, the Clark Memorandum stated that the U. John Calvin Coolidge Jr (July 4 1872 January 5 1933 was the thirtieth President of the United States (1923–1929 The Clark Memorandum on the Monroe Doctrine or Clark Memorandum, written on December 17, 1928 by Calvin Coolidge ’s undersecretary of state S. did not have the right to intervene unless there was a threat by European powers, reversing the Roosevelt Corollary. In 1934, Franklin D. Roosevelt further renounced interventionism and established his "Good Neighbor policy," thus tolerating the emergence of dictatorships like that of Batista in Cuba or Trujillo in the Dominican Republic