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81. Puncturing the 4 Myths about Latin America

Author:
Raul Rivera
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Most people have grown used to thinking about Latin America as a region of marginal global importance: painfully poor, violent, politically and economically unstable and, to top it all, fragmented into some 20-odd countries, each one different from the other. So when Jerry Wind, founding editor of Wharton School Publishing, invited me to speak on Latin America at a Wharton conference aimed at senior U.S. executives, I wondered what a group of U.S. businesspeople would be interested to hear about the region. Who, after all, would want to do business in a place like that? But how accurate are those perceptions? As I prepared for my talk, my conclusion was: not much. Let's address the four principal myths about the region one by one. Myth 1: Latin America Really Does not Matter Economically To start, the territory of continental Latin America is larger than the U.S. and China combined, four times larger than the European Union, and seven times larger than India—a country roughly the size of Argentina. With almost every ecosystem represented, it is in fact the world's most biodiverse region, containing five of the world's ten most biodiverse countries. The region's bio-capacity (the biological productivity of the land measured in hectares per capita) is also larger than any other's. Witness the region's role in the global food chain: it is the largest producer of soybeans, coffee, sugar, bananas, orange juice, a leading fishmeal producer, and a major grain and meat exporter. Its mineral riches keep world industry running: silver, gold, copper, zinc, lead, tin, bismuth, molybdenum, rhenium, telurium, borium, strontium—you name it. And it produces one out of every six barrels of oil. In fact, much of the global community depends on Latin America's vast riches for its prosperity—indeed, for its survival. To that point: the Amazon basin plays a crucial role in the recycling of atmospheric carbon, absorbing one fourth of all global emissions. Latin America's population, now approaching 600 million, is twice that of the U.S. and significantly larger than the combined population of the European Union. Those numbers do not include some 50 million U.S. permanent residents and citizens who trace their origins back to the region (and keep close ties with it). By 2050, the region's population will have risen to an estimated 800 million. Latin America is not poor either. It boasts a per-capita GDP similar to the global average: $10,000. It is no richer or poorer than the rest of the world. In fact, 400 million people, or two-thirds of all Latin Americans, already belong to the global middle class, with their purchasing power fueling much of Latin America's growth. With some 200 million people still living in poverty, Latin America's poor are still numerous. But their ranks are declining fast, at a rate of 5 million a year over the past decade. As a result, its Gini coefficient improved by 10 percent between 2002 and 2008. In brief: the world's poor are now elsewhere—mainly in Asia and Africa. A population this large combined with average income levels have turned Latin America into the fourth largest economy in the world, with a regional GDP of some $6 trillion (purchasing power parity). That is larger than that of Russia and India's combined—larger, in fact, than that of any country or region other than the U.S., the EU and China. Not bad for a “region of marginal importance.” You could argue that Latin America's fragmentation into small, separate markets makes all the difference. But you would be wrong. As a result of the free-market reforms of the past decades, Latin America's economy is now the most open to trade in the developing world, with average tariffs down to 10 percent or less. Intraregional trade is booming. Most significantly, Chile, Colombia, Mexico, and Peru have signed bilateral free-trade agreements (with both the EU and the U.S., though Colombia's is waiting for the U.S. Congress' approval). These agreements are giving rise to a free-trade zone of some 200 million consumers, larger than Brazil and fully open to global trade. Surprisingly, it does not yet have a name—or a space among the BRICs. It will, though. Let's name these four countries the L-4 for now...
Topic:
Economics and Poverty
Political Geography:
United States, Europe, India, Brazil, Colombia, Latin America, Mexico, Chile, and Peru

82. The Americas Go Glocal

Author:
Saskia Sassen
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
There is little doubt that the North-South axis remains dominant for Latin America's geopolitical positioning. But new relations are emerging and deepening at subnational levels, in turn creating new intercity geographies and challenging that geopolitical notion. These relations are a direct product of economic and cultural globalization. Some examples are the shift of migration from Ecuador and Colombia toward Spain rather than the U.S., the growing economic relations between Chinese businesses and organizations and São Paulo and Rio de Janeiro, and the emergent relations between these cities and Johannesburg, South Africa. The Internet has allowed a rapidly growing number of people to become a part of diverse networks that crisscross the world. And nongovernmental organizations (NGOs) from various parts of the world are establishing active connections over social struggles in Latin America. In other words, beneath the still-dominant North-South geopolitics, transversal geographies are growing in bits and pieces. One trend is the formation of intercity geographies as the number of global cities has expanded since the 1990s. These subnational circuits cut across the world in many directions. A second trend is the growth of civil society organizations and individuals who are connecting around the world in ways that, again, often do not follow the patterns of traditional geopolitics. The New, Multiple Circuits There is no such entity as the global economy. It is more correct to say there are global formations, such as electronic financial markets and firms that operate globally. But what defines the current era is the creation of numerous, highly particular, global circuits—some specialized and some not—interlacing across the world and connecting specific areas, most of which are cities. While many of these global circuits have long existed, they began to proliferate and establish increasingly complex organizational and financial foundations in the 1980s. These emergent intercity geographies function as an infrastructure for globalization, and have led to the increased urbanization of global networks. Different circuits contain different groups of countries and cities. For instance, Mumbai today is part of a global circuit for real estate development that includes investors from cities as diverse as London and Bogotá. Coffee is mostly produced in Brazil, Kenya and Indonesia, but the main place for trading its future is on Wall Street. The specialized circuits in gold, coffee, oil and other commodities each involve particular countries and cities, which will vary depending on whether they are production, trading or financial circuits. If, for example, we track the global circuits of gold as a financial instrument, it is London, New York, Chicago, and Zurich that dominate. But the wholesale trade in the metal brings São Paulo, Johannesburg and Sydney into the circuit, while trade in the commodity, much of it aimed at the retail level, adds Mumbai and Dubai. And then there are the types of circuits a firm such as Wal-Mart needs to outsource the production of vast amounts of goods—circuits that include manufacturing, trading, and financial and insurance services. The 250,000 multinationals in the world, together with their over 1 million affiliates and partnership arrangements worldwide, have created a new pattern of relations that combine global dispersal with the spatial concentration of certain functions often while retaining headquarters in their home countries. The same is true of the 100 top global advanced-services firms that together have operations in 350 cities outside their home base. While financial services can be bought everywhere electronically, the headquarters of leading global financial services firms tend to be concentrated in a limited number of cities. Each of these financial centers specializes in specific segments of global finance, even as they engage in routine types of transactions executed by all financial centers. It's not just global economic forces that feed this proliferation of circuits. Forces such as migration and cultural exchange, along with civil society struggles to protect human rights, preserve the environment and promote social justice, which also contribute to circuit formation and development. NGOs fighting for the protection of the rainforest function in circuits that include Brazil and Indonesia as homes of the major rainforests, the global media centers of New York and London, and the places where the key forestry companies selling and buying wood are headquartered—notably Oslo, London and Tokyo. There are even music circuits that connect specific areas of India with London, New York, Chicago, and Johannesburg. Adopting the perspective of one of these cities reveals the diversity and specificity of its location on some or many of these circuits, which is determined by its unique capabilities. Ultimately, being a global firm or market means entering the specificities and particularities of national economies. This explains why global firms and markets need more and more global cities as they expand their operations across the world. While there is competition among cities, there is far less of it than is usually assumed. A global firm does not want one global city, but many. Moreover, given the variable level of specialization of globalized firms, their preferred cities will vary. Firms thrive on the specialized differences of cities, and it is those differences that give a city its particular advantage in the global economy. Thus, the economic history of a place matters for the type of knowledge economy that a city or city-region ends up developing. This goes against the common view that globalization homogenizes economies. Globalization homogenizes standards—for managing, accounting, building state-of-the-art office districts, and so on. But it needs diverse specialized economic capabilities. Latin America on the Circuit This allows many of Latin America's cities to become part of global circuits. Some, such as São Paulo and Buenos Aires, are located on hundreds of such circuits, others just on a few. Regardless of the case, these cities are not necessarily competing with one other. The growing number of global cities, each specialized, signals a shift to a multipolar world. Clearly, the major Latin American cities have circuits that connect them directly to destinations across the world. What is perhaps most surprising is the intensity of connections with Asia and Europe. Traditional geopolitics would lead one to think that Latin America connects, above all, with North America. There is a strong tendency for global money flows to generate partial geographies. This becomes clear, for example, when we consider foreign direct investment (FDI) in Latin America, a disproportionate share of which goes to a handful of countries. In 2008, for example (a relative peak of FDI), FDI flows into Latin America were topped by Brazil at $45.1 billion, followed at a distance by Mexico at $23.7 billion, Chile at $15.2 billion, and Argentina with $9.7 billion. On average, between 1991–1996 and 2003–2008, FDI in Brazil increased more than five-fold while tripling in Chile and Mexico. Among the countries in the Latin American and Caribbean region receiving the lowest levels of foreign investment in 2008 were Haiti, at $30 million; Guyana, at $178 million; and Paraguay, at $109 million. Globalization and the new information and communication technologies have enabled a variety of local activists and organizations to enter international arenas that were once the exclusive domain of national states. Going global has also been partly facilitated and conditioned by the infrastructure of the global economy…
Topic:
Economics, Government, and Non-Governmental Organization
Political Geography:
United States, New York, America, South Africa, London, Colombia, Latin America, Mumbai, Sydney, Ecuador, Dubai, and Chicago

83. Argentina's Migration Solution

Author:
Gaston Chillier and Ernesto Seman
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Most Latin American countries have regarded immigration policy as a function of border protection, using approaches that emphasize security and law enforcement, including strict regulation of work and residency permits. Nevertheless, such policies have not only failed in recent years to curb the growth of undocumented migrants; they have also clashed with resolutions adopted in 2003 and 2008 by the Inter-American Court of Human Rights that guarantee migrant rights. Argentina is a notable exception. Thanks to a law passed in 2004, it has emerged as a model for innovative immigration policymaking. The law incorporated the recognition of migration as a human right. But what really made it historic was the open, consultative process used to conceive, develop and pass the legislation. How Argentina got there is an instructive story—and it may hold lessons for its neighbors and for other areas of the world. A Country of Immigrants Struggles with Its Limits As a country known both as a source and a destination for immigrants, Argentina has always carved out a special place for itself in Latin America. In the nineteenth century, it forged a national identity through an open-door immigration policy that was geared selectively toward European immigrants. But migration from neighboring countries such as Bolivia, Chile and Paraguay increased steadily to the point that—by the 1960s—the number of immigrants from its neighbors outpaced arrivals from Europe. In response, Argentina imposed stricter controls on the entry and exit of foreigners, beginning with legislation introduced in 1966. The legislation established new measures for deporting undocumented immigrants. In 1981, under the military dictatorship, legislative decrees that allowed the state to expel migrants were codified into law for the first time as Law 22.439, also known as La Ley Videla (named after the military dictator Jorge Rafael Videla, who was later convicted of human rights violations). The law contained several provisions that affected constitutional guarantees, including the right of authorities to detain and expel foreigners without judicial redress; the obligation of public officials to report the presence of unauthorized immigrants; and restrictions on their health care and education. For example, undocumented immigrants could receive emergency health care, but hospitals were then obligated to report them. The resolutions and decrees of the National Migration Office—first established in 1949—turned the office into a vehicle for the violation of migrant rights and precluded it from regulating immigration and addressing immigrants' status. From the downfall of the military dictatorship in 1983 until 2003, congress failed to repeal La Ley Videla or enact an immigration law in accordance with the constitution and international human rights treaties recognizing migrant rights. In fact, the executive branch expanded the law's discriminatory features and promoted the autonomy of the National Migration Office to establish criteria for admission and expulsion from the country without any legal oversight. The continuation of La Ley Videla relegated close to 800,000 immigrants—most of whom came from neighboring countries—to “irregular” status, with serious sociopolitical consequences. Efforts to rectify the situation at first met little success. In the absence of reform, Argentine immigration policy was based on individual agreements with countries like Bolivia and Peru to regulate immigrant flows. These agreements failed to address the larger realities of immigrant flows and Argentine authorities often expelled immigrants despite the treaties. As a result, courts repeatedly upheld detentions and expulsions sanctioned by the immigration authorities, with no formal mechanisms to ensure justice for immigrants. In turn, the high cost of filing or pursuing an appeal generally made this an unlikely option. In 1996, this unjust and unsustainable situation led to the creation of the Roundtable of Civil Society Organizations for the Defense of Migrant Rights, a diverse coalition of human rights groups. The roundtable sought to counter xenophobic rhetoric from state ministries and from the president. It worked for migrant rights and included a diverse coalition of immigrant associations, religious groups, unions, and academic institutions. A key goal was to expose the contradictions and inconsistencies of La Ley Videla by sponsoring reports on human rights abuses of migrants, bringing cases to court and submitting complaints to the Inter-American Human Rights System. In 2000, the organization outlined a specific agenda to repeal La Ley Videla and to pass a new immigration law that respected the rights of foreigners. Criteria for the new legislation included: administrative and judicial control over the National Migration Office; reform of deportation and detention procedures to guarantee due process; recognition of the rights of migrants and their families to normalize their immigration status; and elimination of discrimination and other forms of restrictive control in order to ensure access to constitutionally guaranteed social rights and services…
Topic:
Human Rights, Migration, and Immigration
Political Geography:
America, Argentina, Latin America, Chile, and Bolivia

84. Ask the Experts: The New Brazil and The Changing Hemisphere

Author:
Kevin P. Gallagher, Arturo Sarukhan, Anne-Marie Slaughter, and Kurt G. Weyland
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Do traditional models of international relations apply in Latin America?
Topic:
International Relations, Economics, Environment, and Government
Political Geography:
Brazil, Latin America, and Mexico

85. Latin America: Then Now

Author:
Luis Moreno Ocampo, Susan Segal, Fernando Henrique Cardoso, Carlos Chamorro, Enrique Krauze, Alma Guillermoprieto, and Dolores Huerta
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Reflections on a changing hemisphere.
Topic:
Cold War, Development, Government, and Human Rights
Political Geography:
Cuba and Latin America

86. Chinese Vice Minister of Foreign Affairs Li Jinzhang on China's plans and strategy in Latin America.

Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Americas Quarterly: Why is China today so interested economically in Latin America? Li Jinzhang: After 30 years of reform and economic opening, China has scored remarkable achievements in economic and social development, and its connections with the rest of the world have become closer. China needs the world to achieve development, and the world needs China as a contributor to development and stability. Latin America is an important part of the developing world. In recent years, China and Latin America have drawn on their respective strengths and economic complementarity. The result has been rapid growth in economic cooperation and trade, and a vigorous boost to their respective economies. These synergies have brought real benefits to our peoples and contributed to global development and stability. Moreover, the potential for future growth in cooperation and trade is huge. We hope to achieve mutually-beneficial cooperation and common development through closer economic cooperation and trade with the region.
Political Geography:
China, America, and Latin America

87. Immigration and Integration: The Role of the Private Sector

Author:
Alexandra Delano and Jason Marczak
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
The 2010 U.S. Census results underlined not only the dramatic growth of the U.S. Hispanic population but its high mobility. In the last decade, data show that the number of Hispanics jumped by 43 percent—from 35.3 million in 2000 to 50.5 million in 2010—with this group accounting for over half of the total U.S. population increase. Latinos also continue to live in new destinations. Since 1990, the number of those living in the nine states with the historically highest concentrations of Hispanics shrank by 10 percentage points to a total of 76 percent. The rise of the Hispanic population, together with an immigrant population estimated at 38.5 million (of which more than half are from Latin America), continues to spark a variety of public policy and private-sector responses. The most worrisome has been the explosion of anti-immigrant bills in state legislatures, which claim to be reacting to the absence of nationwide comprehensive immigration reform (CIR) and lack of enforcement.
Political Geography:
United States and Latin America

88. Leftist Governments in Latin America: Successes and Shortcomings edited by Kurt Weyland, Raúl L. Madrid and Wendy Hunter

Author:
Eduardo Silva
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
At the turn of the twenty-first century, the Latin American Left experienced an extraordinary revival, especially in South America. By 2009, eight South American countries and two Central American nations had elected left-wing governments. Is this revival a harbinger of a progressive renaissance or a throwback to failed experiments? Leftist Governments in Latin America: Successes and Shortcomings attempts to answer this question by analyzing the extent to which these governments have improved the livelihoods of their citizens. The seven essays that make up the volume, written by distinguished U.S. and Brazil-based scholars, provide a sharp, scholarly comparison of the outcomes achieved by governments of the moderate left and what coeditor Kurt Weyland of the University of Texas at Austin calls the “contestatory” or more radical left, in an introduction that lays out the theoretical framework. This book, which was also edited by Raúl L. Madrid and Wendy Hunter of the University of Texas, fills a critical gap in the burgeoning literature on the subject.
Topic:
Government
Political Geography:
United States, Brazil, and Latin America

89. The Sugar King of Havana: The Rise and Fall of Julio Lobo, Cuba's Last Tycoon by John Paul Rathbone

Author:
Rafael Rojas
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
A common assumption is that the Cuban economic elite was universally opposed to the revolutionary government of Fidel Castro from the time it took power in January 1959. But The Sugar King of Havana: The Rise and Fall of Julio Lobo, Cuba's Last Tycoon shows otherwise. In his book, John Paul Rathbone, the Latin America editor at the Financial Times, paints a more nuanced picture of the Cuban bourgeoisie and, in particular, of Julio Lobo (1898–1983)— the great Cuban sugar tycoon of the first half of the twentieth century. Reading like an F. Scott Fitzgerald novel with scenes reminiscent of an Elia Kazan film, the book paints vivid descriptions of Lobo's life and Cuba in general with action on every page.
Topic:
Government
Political Geography:
Cuba and Latin America

90. La Rebelión de los Náufragos by Mirtha Rivero

Author:
Howard LaFranchi
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
The modern tragic political figure is not just endemic to Latin America. The ignominious fall of Egyptian President Hosni Mubarak—once a war hero to his countrymen—is the latest proof of this. But in her book, La Rebelión de los Náufragos (The Revolt of the Castaways), Venezuelan journalist Mirtha Rivero takes us back to the tragic story of a man who was once one of Latin America's most promising leaders, and who fell from power (like his modern counterparts) from a combination of pride and the failure to understand the yearnings of his compatriots. Carlos Andrés Pérez, re-elected in 1989 to a second term as Venezuela's president, embodied one of Latin America's first modern political tragedies. He was a democrat who was confident that his country (along with much of his region) had conquered its ghosts and was finally ready for governance by first-world standards such as fair elections, a competitive market-based economy and political parties focused more on national interests than on self-preservation.
Topic:
Markets
Political Geography:
Latin America