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1. Big Sellers: Exploring the Scale and Risk of National Oil Company Sales

Author:
Alexander Malden and Joseph Williams
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
In many oil-producing countries, the national oil company (NOC) sells vast quantities of the state’s oil and gas. The sale of a state’s non-renewable natural resource endowment is often a revenue stream that can have a significant impact on a country’s national budget and the state’s ability to fulfil its national development priorities. It is important therefore that citizens are able to assess the performance of their NOCs, who they sell state assets to, under what terms they sell them and what they do with the resulting sales revenue. In this briefing the authors use data from NRGI’s new National Oil Company database to examine the governance and corruption risks posed by NOC’s oil sales activities. Using this newly compiled data including over $1.5 trillion in oil sales from 39 NOCs in 35 countries, they found that: The sale of oil is an economically significant activity for many countries. The oil, gas and product sales of 35 countries’ national oil companies (NOCs) to commodity traders and other buyers generated over $1.5 trillion in 2016, equaling 22 percent of these countries’ total government revenues. Most NOCs only pass on a small percentage of their oil sales revenue to government treasuries. NOCs from the 30 countries for which data are available transferred just 22 percent of their revenue to the country’s national treasury. This results in NOCs managing huge public revenues in environments that lack basic transparency, accountability and good governance practices. Seventy-nine percent of the identifiable oil sales, or $1.2 trillion, occurred in countries with “weak” or “poor” scores in the 2017 Resource Governance Index. While oil sales disclosure has improved in countries which are part of the Extractive Industries Transparency Initiative (EITI), non-EITI countries generated over 90 percent of the identifiable NOC oil sales revenue, or $1.4 trillion. This briefing also presents case studies from the Republic of Congo, Nigeria and Ecuador of ways oil sales data, where available, has been used to scrutinize NOCs’ commercial performance and to hold them accountable for the revenue generated when selling the state’s oil.
Topic:
Civil Society, Government, Oil, and Business
Political Geography:
Africa, South America, Nigeria, Ecuador, and Democratic Republic of Congo

2. The Abuse of Obligatory Presidential Broadcast in Latin America

Author:
Andrés Cañizález
Publication Date:
05-2017
Content Type:
Working Paper
Institution:
National Endowment for Democracy
Abstract:
When Venezuelan opposition leader Jesús Torrealba held a much anticipated rally in September 2016, only one television channel, Globovisión, was willing to broadcast it. By then, the 24-hour news channel stood alone as the one major broadcaster daring enough to air critical coverage of the government. he speech was particularly newsworthy because Torrealba that day was planning to call for nation-wide protests in favor of a referendum on President Nicolás Maduro. The Venezuelan constitution allows for what is essentially a recall by plebiscite if citizens can marshal enough signatures in favor of one, but the country’s electoral commission, Torrealba alleged, was stonewalling the process in spite of the opposition’s success at collecting the signatures. He had hoped his speech could provoke demonstrations of irrefutable public support for the referendum. After only a few minutes at the podium, however, the transmission of his speech was interrupted without warning.1 President Maduro had ordered a blanket broadcast across all radio and television stations–what is known in Spanish as a cadena nacional. These presidential broadcasts resemble a US Oval Office address in style, but in Venezuela the law obliges both state‑owned and private media to carry the transmissions, which have lasted as long as eight hours. When Maduro invoked this law to interrupt Torrealba’s speech, Venezuelans had no choice but to listen to Maduro or simply switch off their TVs and radios. This is not an isolated event. The abuse of presidential broadcast laws, which was first witnessed in Venezuela under Maduro’s predecessor, Hugo Chávez, has become a source of concern in several countries in the region, including in Argentina and Ecuador.2 This report looks at how obligatory presidential broadcasts have risen with a wave of populist authoritarian governments in Latin America, and how the abuse of such transmissions, coupled with other efforts to suppress independent press, has been a significant detriment to democratic deliberation. By looking at legal restrictions on this practice in the region, the report also provides some insight into how the abuse of obligatory presidential transmissions could be curtailed.
Topic:
Government, Media, Propaganda, and The Press
Political Geography:
Argentina, South America, Latin America, Venezuela, and Ecuador

3. The Ecuador Situation: The Relationship between the Government and the Media

Author:
Camilla Lanusse
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University
Abstract:
Long-standing tensions between the government of Ecuador and the private press culiminated in February with a Supreme Court decision, international outrage, and a presidential pardon. Arguing that the media have long acted as a powerful private interest in Ecuador, President Correa in recent months filed and won several lawsuits for criminal defamation against news media and individual reporters, and proposed legislation affecting coverage of political campaigns. The controversy surrounding these events contributed to the debate over freedom of expression and the press in Ecuador, as well as Independence of the judicial system.
Topic:
Development, Government, Media, and Judiciary
Political Geography:
Central America and Ecuador

4. Peru to Ration Electricity in Northern Cities

Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Peru's new Minister of Mines and Energy, Carlos Herrera, announced yesterday that authorities from the country's Comité de Operación Económica del Sistema—the national agency responsible for energy oversight—would begin rationing energy in Peru's major northern cities Trujillo and Cajamarca. Although the likely need for electricity rationing in 2011 was predicted last year by former Mines and Energy Minister Pedro Sánchez, the implementation of cuts highlights Peru's infrastructural shortcomings in the energy sector. According to the government statement, hydroelectric facilities in Peru's central regions produce sufficient energy to fulfill demand, but the country “does not have the capacity to transport sufficient electricity to the north.” Power will initially be cut only during nighttime hours in the affected areas and the government has voiced support for plans to import electricity from Ecuador, Colombia and Chile in the near future.
Topic:
Government
Political Geography:
Colombia, Chile, Peru, and Ecuador

5. Charticle: The Bolivarian Alternative

Author:
Joel Hirst
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
What is ALBA and what does it do? A guide to President Chávez and Fidel Castro's regional project.
Topic:
Security and Government
Political Geography:
Colombia, Caribbean, Venezuela, and Ecuador

6. 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

7. The Paradoxes of Indigenous Politics

Author:
Jose Antonio Lucero
Publication Date:
06-2011
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Has the increased political involvement of Indigenous peoples improved their situation?
Topic:
Government, Politics, and Reform
Political Geography:
America, Colombia, Venezuela, and Ecuador

8. Turning to the Left? Understanding Some Unexpected Events in Latin America

Author:
Carlos M. Vilas
Publication Date:
01-2008
Content Type:
Journal Article
Journal:
The Journal of Diplomacy and International Relations
Institution:
School of Diplomacy and International Relations, Seton Hall University
Abstract:
Argentina, Bolivia, Brazil, Chile, Ecuador, Nicaragua, Uruguay and Venezuela are currently ruled by governments that are typically considered to be on the left of the political spectrum due to their progressive, reformist stances. Together, these states account for almost two thirds of Latin America's population and roughly half of its combined GDP. In the 2006 presidential election in Mexico, the candidate who shared the political views of the aforementioned states was defeated by less than percent in a contested turnout.
Topic:
Government
Political Geography:
Brazil, Argentina, Uruguay, Latin America, Nicaragua, Venezuela, Mexico, Chile, Ecuador, and Bolivia

9. U.S. Policy in the Andean Region

Author:
Michael Shifter
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Even within Latin America's generally gloomy economic and political outlook, the countries of the Andean region—Colombia, Venezuela, Peru, Ecuador and Bolivia—stand out as especially problematic and unsettled. For the United States, this set of countries, with some 120 million citizens, poses enormous policy challenges. Fostering democracy, expanding trade, combating drugs, promoting stability, and advancing social development are just some of the challenges germane to this region which, in the context of globalization, post-September 11, become even more compelling.
Topic:
Foreign Policy, Economics, and Government
Political Geography:
United States, Colombia, South America, Latin America, Venezuela, Peru, Ecuador, and Bolivia