The correct answer is: "Local rulers, or caudillos, gained in power".
During the years after World War II, many Latin American countries were raided by movements that followed socialist ideals that came from the USSR and China. As a result, many socialist military upheavals occurred.
The socialist model favored the "substitution of imports". This basically meant that governments started developing all sorts of industries in order to reduce trade with western powers at a minimum. The model ultimately failed, as the governments proved to be inefficient administrators and there was ultimately a lack of qualified labor in order to run these industries.
