CIA’s Use of Economic Warfare Across South America
Beyond direct political interference, the CIA frequently employed economic warfare to undermine governments perceived as threats to U.S. interests. By leveraging international financial institutions, restricting foreign aid, and orchestrating trade disruptions, American operatives strategically weakened economies, sowing domestic unrest and discontent. These covert economic tactics exacerbated inflation, unemployment, and shortages, creating fertile ground for regime change and political instability. Notable examples include Chile under Salvador Allende and Brazil under João Goulart, where targeted economic sabotage directly contributed to governmental collapse. This approach proved devastatingly effective, allowing the CIA to shape political outcomes across South America without overt military force.
