Posts tagged Commodity boom/crisis
Covid-19 and the Failure of Economic Globalization in Latin America: Is there a way forward?

Globalization has failed Latin America. It created the vulnerability that is making it so difficult for the countries of the region to address the developing social tragedy brought about by the pandemic. A recent OECD report suggests that the way forward is for countries to negotiate a “new social contract”—one that involves a revamping of institutions and social priorities.

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Latin America and the Coronavirus: Yet another Problem for a Region that already has too many

Extensive media attention has covered how Latin America countries have been handling the coronavirus. Regular accounting of how many cases in each country, including how many deaths, has been unremitting. Government officials have provided lengthy treatises on the nature of the disease and how citizens can avoid contracting it. Political leaders have repeatedly provided assurances to their populations of their government’s capacity to confront and contain the disease. Given the relatively small number of cases (17) and no reported deaths as of March 4, a casual observer might think everything is in hand. It is not.

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Political Upheaval in Latin America: Back to the Future?

Since the decline of commodity prices in 2013, Latin America has witnessed mounting political turmoil: widespread protests against transportation fare increases in Chile, against the removal of fuel subsidies in Ecuador, and over the legitimacy of the Bolivian presidential election. Brazil’s period of political upheaval began earlier with protests against corruption, leading to the impeachment and removal of President Dilma Rousseff. Following these events, Brazilians elected populist right president, Jair Bolsonaro, whose racist remarks about the country’s Indigenous people combined with his accelerated burning of the Amazon, have aroused international and domestic disapprobation. In a worrisome development, Latin American presidents have been appearing in public flanked by their Generals, suggesting that political leaders are at a loss as to how to address the growing political chaos. Most observers accept that the military played a key role in Evo Morales’ exist from power. Latin American history is rife with export commodity dependence, popular unrest (if not insurgency), political repression, authoritarian rule, and military meddling (if not direct intervention). The transition to democracy and market liberalization of the 1980s was supposed to end all of this. They have not.

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The Amazon Fires: Globalization’s Chickens have come Home to Roost

Over the last week, the extensive media coverage of the fires raging in the Amazon has caught the attention of the leaders of the world’s most powerful countries. The G-7 meeting of western nations offered $20 million (U.S.) in aid and urged the Brazilian government of right populist president Jair Bolsonaro to take measures to contain the growing inferno in the Brazilian Amazon. What is happening in the Amazon is a disaster of horrific proportions is beyond doubt; the fires are destroying vegetation and wildlife and threatening the lives and livelihoods of the Indigenous peoples who live there.

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The Brazilian Election and Latin America’s Democratic/Authoritarian Cycles

When Latin America made the transition to electoral democracy in the mid-1980s, the process was hailed as marking the end to the region’s fluctuations between authoritarianism and democracy. Recent, events, especially in Brazil, tell a different story.  Between 2006 and 2011, it seemed possible that the program of a moderate social democratic program could be reconciled with a neoliberal global orientation: Brazil dramatically reduced poverty, public spending was kept in check, while big businesses expanded both exports and investments abroad. Now we see a sharp turn to the political right in Brazil and the inevitability of policies that will contribute to social deterioration. With 99 percent of the votes in, right populist presidential candidate, Jair Bolsonaro, leads with 46 percent of the vote. He is expected to win the second round of voting on October 28. 

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What went wrong with Latin America’s Left Regimes?

     Increasingly, right-leaning governments are replacing left regimes in Latin America or, if left governments continue to cling to power, they are adopting policies normally associated with the political right. There has been a shift back to some neoliberal policies that contributed to poverty and inequality in the past. Sympathetic observers placed great hope in the left regimes that came to power between the late 1990s and the mid-2000s—these regimes seemed to be on the right track since they reduced poverty substantially and made inroads into high levels of inequality. What went wrong?

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The Political Economy of Latin America’s Political Turmoil

     While some observers, both journalistic and academic, maintain that Latin American politics is either moving to the political right or becoming less polarized, the clearest trend is rising political turmoil with a final destination that is far from clear. Political polarization continues to be an integral part of the Latin American political scene. 

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Latin America and the U.S./China Trade Dispute: Caught between Statist and Free Market Capitalism

     During the past two decades, China’s rapid economic growth and pressing need for commodities has resulted in increased trade and investment in Latin America, along with expanded lending operations to fund important infrastructural projects. Meanwhile, the U.S. administration has largely neglected the region and at times shown outright disdain. Amid the current Chinese/American trade spat, President Donald Trump is visiting a South American country (Peru) for the first time this week where he is expected to warn Latin Americans against continued close trade ties with China. The question is: what does U.S. Chinese rivalry mean for Latin America? Under the current circumstances: perhaps some short-term gains for some countries, but in the longer-term, Latin America needs to find its own development path, one that is as independent as possible from both the ideologies and interests of these two powers. 

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Ecuador, the Survival of the Left, and the Structural Constraints of Global Capitalism in Latin America

    On Sunday, February 4th Ecuador held a popular consultation (consulta popular) on seven questions; five of which were binding while the remaining two are to guide the government in developing future policies. There are strongly opposed opinions on the meaning of this public consultation and on its consequences for Ecuadorian politics and for the political left. The case provides us with insights into the Latin American political dilemma.

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Is Chile Turning to the right? Or Just more of the Same?

     Chile’s run-off presidential election, held on December 17, witnessed the victory of billionaire businessman, Sebastían Piñera over the left-wing candidate Alejandro Guillier. This will be Piñera’s second term in office; he served as president between 2010 and 2014. The victory was a substantial one, with Piñera winning 54.6 percent of the vote while Guiller, supported by outgoing left-centre President Michelle Bachelet, garnered 45.4 percent of the vote. Much of the press coverage of the election claims that the Chilean election is part of a general right-ward swing in Latin American politics. However, such an assessment papers over what is really going on—not just for Chile, but for other countries of the region as well. 

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