In the early 1980s, the Sandinistas in Nicaragua introduced a series of radical reforms. Then-US President Ronald Reagan feared that socialist revolution would spread throughout Central America and armed the counter-revolutionary militias, known as the Contras. A bloody guerrilla war ensued.
At almost the same time, neighboring Panama avoided civil war, but a shady figure came to power: Manuel Noriega, long-time CIA agent and protégé of the United States. His main opponent, guerrilla leader Hugo Spadafora, accused Noriega of drug trafficking. In 1988, the US Department of Justice in Florida brought charges against Manuel Noriega - among other things for his connections to Pablo Escobar's Medellín cartel. Noriega refused to step down, which led to the US invasion of Panama and his arrest.
In Chile, ruler Augusto Pinochet faced growing opposition. To consolidate his authority, he held a referendum at the end of 1988. Through Ambassador Harry Barnes, the United States ultimately financed the campaign against Pinochet, aiding the democratic opposition. Pinochet was forced to step down - a victory for democracy in Latin America.
But a new storm was brewing: in 1989, the economic crisis in Venezuela, a traditional ally of the United States, reached its peak. Unrest broke out and was violently suppressed by the army.