U.S.- Latin America: Policy Shifts Ahead?

By Fulton Armstrong

Former White House National Security Adviser John Bolton speaks to reporters on events occurring in Venezuela Tuesday, April 30, 2019, outside the West Wing entrance of the White House.

Former National Security Advisor John Bolton speaks to reporters on Venezuela in April 2019/ Tia Dufour/ White House/ Wikimedia Commons

The sudden departure of President Trump’s outspoken national security advisor, John Bolton, is unlikely to result in changes in U.S. policy objectives in Latin America but could lead to the same sort of swings in tactics – harder or softer – that characterize other U.S. policies around the world. The continued weakness of the State Department’s input, aggravated by erratic staffing in its Latin America offices, further suggests that it will not play a balancing role.

Trump and Bolton’s statements over their 17 months together indicated no disagreement on objectives and tactics in Latin America, including immigration, close relations with Brazilian President Bolsonaro, efforts to rescue the Argentine economy, and Venezuela. They had identical positions on the waves of sanctions against Venezuela, U.S. commitment to remove President Nicolás Maduro, and unstinting support for National Assembly President Juan Guaidó’s claim to the Presidency, including backing Guaidó’s flopped coup in April. They both also explicitly linked taking down Maduro with achieving regime change in Cuba.

  • Trump and U.S. Senator Marco Rubio, widely seen as his top referent on Latin America and related political matters, are trying to signal that after Bolton’s departure the Administration is going to turn up the heat on Venezuela and Cuba. In apparently coordinated tweets between them, Trump said, “In fact, my views on Venezuela, and especially Cuba, were far stronger than those of John Bolton. He was holding me back!” This complements rumors that Trump has been frustrated that Bolton’s strategy in Venezuela, particularly the fact that Maduro supporters had tricked him into false confidence in Guaidó’s failed coup, has not removed Maduro from office. (It is unclear if one of his concerns is that U.S. sanctions are worsening the refugee flow challenging neighboring countries.)

Most Washington-based observers believe, however, that Latin America is the least important of the five issues that, according to press, caused friction between Trump and Bolton. The President’s personal involvement has been much greater with North Korean leader Kim Jong Un, in efforts to achieve regime change in Iran, in talks with the Taliban for withdrawal of U.S. troops from Afghanistan, and in maintaining good relations with Moscow despite the complex situation in Ukraine.

  • Trump has appeared to lack deep interest in Latin America policy and sees it as primarily a domestic political tool for consolidating his base – among anti-Maduro and anti-Cuba voters in Florida, an important state in his re-election calculus, and among supporters for his wall on the Mexico border and other anti-migration measures. Long ago he essentially handed the Venezuela and Cuba issues over to Senator Rubio, and the National Security Council brought a Rubio ally, lobbyist, and blogger, Mauricio Claver-Carone, to the White House to work the issue. They appointed Elliot Abrams, despite baggage from the Iran-Contra era and the Bush-Cheney Administration, to handle diplomatic operations on Venezuela for them.
  • By all appearances, Secretary of State Michael Pompeo has subordinated his own Latin America team to the White House operators, essentially stifling a traditionally important voice at the policy table. When Assistant Secretary Kimberly Breier resigned last month, only nine months after being confirmed by the U.S. Senate, she said it was to spend more time with her family, but her bureau’s marginalization left questions about her policy impact. Her acting successor, veteran State Department lawyer Michael Kozak, who has spent much of the last 10 years managing “democracy promotion” programs in Latin America and elsewhere, is not likely to challenge Rubio and Claver-Carone unless Pompeo takes the lead, which he shows no sign of doing.

The new national security advisor will have more urgent problems to deal with than wrestling with Rubio, Claver-Carone, and their allies. Indeed, Trump may even give them a green light to escalate provocations even further. For example, Administration allegations that Colombian guerrillas and narcotics-traffickers receive crucial aid from Caracas – buttressed by invocation of the Rio Treaty last week – are logical ways of laying the political groundwork for some sort of military action, perhaps jointly with Colombia, against alleged camps in hopes that the Venezuelan military finally tells Maduro that it’s time to go. 

  • President Trump’s trademark approach to thorny problems has been unpredictability and experimentation with wide-ranging alternatives, including face-to-face negotiations and deal-making with opponents that pose much tougher challenges to U.S. interests than do Venezuela and Cuba. Such flexibility notwithstanding, with the U.S. elections just 14 months off, Trump’s electoral calculus strongly suggests he’s going to stay the course with policies toward Latin America that he’s told are popular in South Florida.

September 17, 2019

Afro-Colombians and Indigenous: From Hope to Invisible Again?

By Luis Gilberto Murillo Urrutia*

Firma de la paz

Signing of the peace accords between the Colombian government and FARC, 2016/ Gobierno de Chile/ Wikimedia Commons/ https://commons.wikimedia.org/wiki/File:Jefa_de_Estado_participa_en_ceremonia_de_la_Firma_de_la_Paz_entre_el_Gobierno_de_Colombia_y_las_FARC_E.P._(29953487045).jpg

Colombia’s delicate and fragile transition to peace, a process enshrined in the 2016 peace accord between the government and the FARC guerrillas, has brought some benefits to Colombia’s Indigenous peoples and communities of African descent but has fallen far short of expectations – with troubling implications for those groups in the future.

  • Official figures tend to understate the size and influence of the Afro-Colombians and Indigenous. According to the government, 15 percent of Colombia’s population is of African descent, and 4 percent (from 82 different ethnic groups) are Indigenous. But other estimates, such as that of the Centro de Investigación en Ciencias Sociales y Económicas (CIDSE) of the Universidad del Valle, estimate that Afro-Colombians could be as much as 25 percent of the national population, and Indigenous ethnic groups occupy some 15 percent of the national territory. These groups suffered deeply during the half-century of conflict that the peace accord intended to stop. One of many examples is the massacre of Bojayá, in the predominantly Afro-Colombian department of Chocó, which left more than 100 people dead – mostly women and children who had sought refuge in a church. The Indigenous also suffered great losses.

These historically neglected communities – which numerous observers report experienced a disproportionate deepening of poverty and discrimination during the conflict – saw in the peace accord and its implementation the opportunity to push longstanding demands for full exercise of their rights, especially control over their own territories in places such as Chocó, the Indigenous free farm labor system in Cauca and Nariño, and the ethnic region of Sierra Nevada de Santa Marta.

  • The chapter of the peace accord dealing with ethnic matters, included as a result of the activism and leadership of Afro-Colombian and Indigenous organizations, encouraged those hopes. As accord implementation started, these groups focused on achieving protection for social leaders; the removal of anti-personnel mines from their territories; substitution of illicit crops; protection for, and expansion of, traditional homelands; and various environmental protections.
  • Last March, ethnic organizations reported some advances during the early stage of the implementation of the peace accord, during the administration of President Juan Manuel Santos and, more recently, when President Iván Duque’s government, in the planning process for regional programs and projects, included about US$5.5 billion in the four-year mandatory National Development Plan 2018-2022. If faithfully carried out, which appears doubtful, such expenditures would benefit Afro-Colombian and Indigenous communities.

At the same time, however, leaders stated that, of the 13 specific provisions in the accord’s Ethnic chapter, implementation of seven had not even started – significantly less than the accord as a whole. Even more troubling to them, security in their communities has continued to deteriorate.

  • Some 35 percent of citizens displaced since 2016 have been Afro-Colombians and Indigenous. An estimated 40 percent of social leaders murdered have been from these groups, including 11 percent of those promoting manual eradication of coca production instead of forced aerial spraying. Disputes among armed groups with roots in both paramilitaries and guerrilla groups have increased the vulnerability of these communities.
  • Ethnic organizations blame this poor performance on the lack of a fluid dialogue between government and community leaders; the ignorance (willful or not) of the current government to embrace the deals made by its predecessors; and the lack of dedicated budget resources. The government has not convened a meeting of the Special High-Level Authorities of the Ethnic Peoples established by the accord. Afro-Colombian and Indigenous leaders have been largely excluded from critical decisions related to peace process implementation affecting their communities.

Growing challenges to accord implementation further complicate prospects for progress for Afro-Colombian and Indigenous communities. Political tensions in Bogotá, the government’s efforts to unilaterally alter implementation, the assassination of social leaders, and – most recently and perhaps most disturbingly – some FARC negotiators’ decision to abandon the accord and take up arms anew, all have dire implications for them. Afro-Colombian and Indigenous leaders – lacking a viable alternative – seem likely to continue betting on the peace process and fulfilling their obligations under the accord. The bottom line, however, remains that the slow, inconsistent implementation and the absence of serious dialogue and coordination suggest that, once again, these important communities may become invisible.

September 12, 2019

* Luis Gilberto Murillo is a CLALS research fellow and former Minister of Environment and Sustainable Development of Colombia, with 30 years of experience in the areas of environment, sustainable development, and peace building.

Venezuela’s Communal Councils: Holding on During Dark Times

By Michael McCarthy and Jared Abbott*

Venezuelan President Nicolas Maduro walking with community leaders

Maduro in Protected Cultivation Houses of Quibor-Edo / Flicker / Creative Commons /https://www.flickr.com/photos/chavezcandanga/8402610886/in/photostream/

Venezuela’s Communal Councils (Consejos Comunales), created in 2006, endure as an influential grassroots mechanism amid the country’s cataclysmic economic depression and political crisis. Increasingly, their primary function appears to be helping embattled President Nicolás Maduro’s ruling party maintain loyalty among its declining base. Three factors linked to Chavismo’s melding of party and state have enabled the Councils to survive amid radically changed conditions: linking them to state-run food distribution programs, giving them problem-solving functionality, and building block-level group ties in Council-created spaces.

  • Survey data we collected in late 2018 demonstrates that participation in Councils has declined as resources have contracted, but the groups remain alive and well. Our poll of more than 1,078 Communal Council participants revealed that about a third perceive the Councils’ reach as remaining as strong as before the economic slide accelerated four years ago, while another 13 percent believe participation has even grown. Sixty-two percent of respondents who reported ever participating said that they still did in 2018.
  • The Councils have been critical in minimizing major disturbances in popular sectors over the past five years through the role they have played – in coordination with the Comités Locales de Abastecimiento y Producción (CLAP) – in distributing monthly food boxes to a large majority of the population. Not surprisingly, of all the Councils’ thematic committees, food committees are by far the most active. Council participants reporting being active in a food committee increased from zero in 2009 to 20 percent in 2018.
  • Our survey and interviews show that the Councils have been crucial in sustaining the party’s capacity to mobilize its core supporters in key moments such as during widely criticized elections that Maduro held in May 2018. Our research also finds that most Councils are not necessarily ideologically soaked spaces of pro-regime behavior, although many citizens understand them in highly political terms. Participation, while heavily skewed toward Chavismo, reflects the whole Venezuelan political spectrum and often transcends partisan politics. Our survey shows, moreover, that over 60 percent of Venezuelans reported as recently as last December that the Councils benefit the whole community, not just party members. This practical problem-solving dimension helps enable the Councils to retain relatively broad support among Venezuelan society.
  • Our survey results suggest that the Councils are effective in increasing positive attitudes toward the government even in the absence of direct material benefits. For instance, of those who reported that their opinion of the ruling party improved since they began participating in a Council, the vast majority cited their improved social status in the community or increased political efficacy, rather than the receipt of material benefits through the Councils, as the reason for their improved attitude toward the party.

The Councils have operated across three competing models: a “deepening democracy” model focused on expanding avenues of citizen participation within the existing political system; a utopian “dual power” model aimed at replacing the existing political system with a radical direct-democracy; and a “vanguardist” model where the councils serve as a direct instrument of the party to mobilize and grow the electoral base. While all three models played an important role during the early years of the Councils, the vanguard model has recently superseded the others. Although still sometimes used by different party factions to stimulate debate about the government’s policies and performance, the Councils’ role in consolidating a loyal base of supporters to withstand the current period of economic and political crisis has been much more important.

The Councils’ evolving relationship with the ruling Socialist Party raises serious questions about whether, as political and economic conditions grow less stable, participatory institutions like the Councils open political spaces for engagement and incorporation, or devolve into a cynically deployed tool of populist autocrats – with unsettling implications for the future of participatory democracy that some leftist parties in Latin America advocate. Indeed, the Venezuela example suggests that, when political and economic conditions become less favorable for sustaining participatory institutions, most parties will either abandon them or instrumentalize them as part and parcel of an authoritarian power consolidation strategy. The groups’ changing political character becomes a matter not of “if,” but of “when.” Political party leaders can, if they want and if they try, stay true to the participatory vision through imaginative leadership and creative organizational schemes. In Venezuela, however, they have not.

September 9, 2019

* Michael McCarthy is a Research Fellow with the Center for Latin American & Latino Studies, Adjunct Professor of International Affairs at GWU’s Elliott School, and publisher of Caracas Wire, a newsletter on Venezuela and South America. Jared Abbott is a PhD Candidate in Political Science at Harvard University. This is adapted from their article, Grassroots Participation in Defense of Dictatorship, in the Summer 2019 Fletcher Forum.

AMLO’s Foreign Policy: A Blast from the Past, or Abandoned Dream?

By Laura Macdonald*

AMLO Cabinet

López Obrador stands with members of his cabinet for an official photo in December 2018/ Prensa AMLO/ Wikimedia Commons/ https://commons.wikimedia.org/wiki/File:Andres_Manuel_Lopez_Obrador_2.jpg

 

Mexican President Andrés Manuel López Obrador (AMLO) took office last January with a pledge to focus almost exclusively on his country’s many internal challenges, but international affairs have intruded upon his wish to downplay foreign policy, forcing him to make difficult compromises.

  • AMLO rode into office with the slogan “la mejor política exterior es la política interior” (the best foreign policy is domestic policy). Mexico’s high levels of corruption, impunity, entrenched poverty, widespread violence, and human rights violations were his top priorities. He was elected with a mandate to clean up the political system and crack down on the “mafia of power,” which he and millions of Mexicans perceived as the source of most of their country’s problems. The unpopular foreign policy of his predecessor, PRI president Peña Nieto – who tried to curry favor with President Trump and his family despite the U.S. President’s repeated insults to Mexico and Mexicans – encouraged a more nationalist response as well.
  • In his inaugural speech in the Mexico City zócalo, he laid out an approach to foreign policy based on themes of self-determination, non-intervention, peaceful solution to disputes, development cooperation, defense of human rights, and the rights of migrants. This position is reminiscent of the deeply rooted policy of non-intervention known as the Estrada Doctrine adopted by the Partido Revolucionario Institucional (PRI), the long-time Mexican dominant party, in the 1930s. AMLO’s political roots are in that party and reflect that heritage – he has said he won’t travel outside of the country except to sign international agreements and he skipped the June G20 summit in Osaka, Japan.

Nevertheless, the world has intruded upon AMLO. Trump’s statements and actions have forced him to act and react, and Central America’s crises have thrust him into an overwhelmingly hostile regional context. He has had mixed results:

  • Despite his previous opposition to free trade, AMLO made a strategic decision to renegotiate NAFTA and to refrain from direct confrontation with the Trump administration. Mexico was forced to accept various measures that may harm its interests in the long term, including the rules for domestic origin and intellectual property rights.
  • He has continued Mexico’s traditional principles of non-intervention and self-determination – the Estrada Doctrine – and advocated for the recognition of existing regimes instead of meddling in their internal affairs. This position has led to a break with the position of the Lima Group, of which it is still a member, regarding Mexico’s position so far has been vindicated by the failure to date of the Lima Group’s advocacy of regime change and the bellicose position of the Trump administration, but Mexico has not been seen to be playing a leading role in orchestrating negotiations in response to the Venezuelan crisis, and is isolated from the position of the U.S., Canada, and most Latin American states.
  • Despite early statements in which the AMLO administration cast migration as not inherently problematic and called for policies to address the causes of Central American migration, it subsequently shifted its position under intense U.S. pressure and agreed to policies that would limit the numbers of migrants crossing into the United States from Mexico and create a growing humanitarian challenge within Mexico itself.
  • As part of AMLO’s law of “republican austerity,” he has closed trade and agricultural offices in embassiesand consulates around the world, and has eliminated the offices of ProMéxico, which promoted international trade and investment into Mexico. Diplomatic staff, untrained in commercial issues, are supposed to take over their responsibilities. This decision, framed as scaling back the swollen ranks of highly paid public officials, will affect the government’s ability to diversify trade and investment away from the U.S. market and reduce its ability to defend the country’s interests in ongoing trade negotiations.

The AMLO government faces the daunting prospect of trying to respond to Trump without risking economic disaster or losing all shreds of national dignity. In the context of an already globalized economy, Mexico cannot achieve its domestic priorities without a recognition of the importance of foreign policy and active international engagement, in tandem with progressive allies – other governments as well as domestic and international civil society. So far, he has been able to navigate these shoals and retains high levels of popularity at home, but his economic policies focused on re-activation of the domestic market and have not yet born fruit. A more active and progressive foreign policy could help shore up his domestic and international legitimacy as the economy lags.

September 5, 2019

* Laura Macdonald is a Professor in the Department of Political Science and the Institute of Political Economy at Carleton University in Ottawa.

Argentina: Market Meltdown Can Be Halted

By Arturo Porzecanski*

From right to left, then-president Cristina Ferdandez de Kirchner, then-minister Alberto Fernandez, and other then-ministers

Ministers of Cristina de Kirchner / Wikipedia / Creative Commons / https://es.wikipedia.org/wiki/Archivo:Ministros_de_Cristina.jpg

The unexpectedly strong performance of the Alberto Fernández-Cristina Fernández de Kirchner (FF) ticket in Argentina’s August 11 presidential primaries has triggered a stampede out of the country’s currency, stocks, and bonds, but FF hold the key to staving off a full-fledged crisis. If the confidence of local and foreign investors is not recovered soon, the market rout has the potential to induce runaway inflation, plunge the economy into a deep recession, and cut off domestic and international financing for both the outgoing and incoming governments, potentially leading to a default.

  • The FF Peronist ticket’s 15.6 percentage-point margin of victory over President Mauricio Macri and his companion was foreseen by none of the pre-election polls. The wide gap shocked investors because it indicates the Fernández duo could win in the first round in the October 27 general election, avoiding a second-round ballot on November 24 in which the pro-market Macri was thought to have a better chance. The coattail effect of FF helped allies in provincial and local primaries around the country. With likely majorities in one or possibly both houses of congress, FF would have a powerful government that could implement much of its agenda, for better and for worse.

Now the challenge is to stop the vicious cycle of capital flight, currency depreciation, accelerating inflation, and plunging economic activity sparked by the electoral results. Failure to do so sooner rather than later will make it very difficult for the government to refinance its maturing short-term debts, and the Central Bank will likely experience a steady drain of its international reserves. In that scenario, the IMF, which has been sending big checks to Argentina every three months, would probably not send the next one in late September.

  • The Macri administration has announced some palliative measures (e.g., a 90-day freeze in gasoline prices and a tax exemption for food purchases), and the Central Bank has tightened marginally monetary conditions. But the government leadership team is powerless to restore the investor confidence that has evaporated.

Given his clear frontrunner status, Alberto Fernández could play a crucial role in reversing the trend. During eerily reminiscent circumstances in Brazil in mid-2002, local and foreign investors were increasingly worried that Luiz Inácio “Lula” da Silva, who was running strong in the polls in his fourth presidential campaign, would end the market-friendly policies of the outgoing Fernando Henrique Cardoso – including a break with the IMF, from which Brazil had been borrowing.

  • Worried about potentially inheriting an economic and financial mess, Lula made a public statement – he called it a “Letter to the People” – making clear his commitment to sound fiscal and monetary policies and the rule of law. He wrote about a “new social contract capable of assuring economic growth with stability,” one of whose premises was “naturally, a respect for the country’s contracts and obligations.” He followed those words with concrete actions. Two months before the elections, he gave his blessing to a new IMF program committing the next government to maintain, with minor modifications, Cardoso’s austere fiscal and monetary policies.

Lula’s actions after his election, including putting a market-friendly and popular mayor in charge of his transition team and choosing a career private-sector banker to run the Central Bank, provide a path that Alberto Fernández could follow as well. Under Lula, the Brazilian Central Bank felt supported in its all-out effort to extinguish the flames of inflation and to buttress the currency. Interest rates were thus hiked as needed before and after the October 2002 elections. He initiated confidence-building meetings with investors before taking office and reassured lenders and investors, both in Brazil and abroad.

  • So far, Alberto Fernández is denying any responsibility for the developing financial and economic crisis, blaming Macri for all that’s gone wrong. But unless he makes announcements that give confidence to local and foreign investors, he will inherit a mess.

August, 22, 2019

*Dr. Arturo C. Porzecanski is the Distinguished Economist in Residence at American University and a member of the faculty of the International Economic Relations Program at its School of International Service. This article is adapted from an essay he wrote in Americas Quarterly.

Puerto Rico: A Mess with Structural Causes

By Eric Hershberg and Fulton Armstrong

Roselló and Trump

Puerto Rico Gov. Ricardo Roselló, U.S. President Donald Trump and First Lady Melania Trump discuss relief efforts during a cabinet meeting at Muñiz Air National Guard Base, Carolina, Puerto Rico, Oct. 3, 2017 / U.S. Air National Guard photo by Staff Sgt Michelle Y. Alvarez-Rea / Public Domain

Puerto Rico’s ongoing political and economic crises are similar to those in many other Latin American systems – but with the additional burden of lacking the sovereignty or U.S. support to act independently in pursuit of solutions. Two weeks of spontaneous, massive protests over vulgar on-line chats and evidence of corruption forced Governor Ricardo Rosselló to resign on August 2. In the nearly 900 pages of “Rickyleaks” published by Puerto Rico’s Center for Investigative Journalism, Rosselló and his aides are quoted as exchanging misogynistic and homophobic messages about fellow politicians and leaders across society. Protestors accused him of mismanagement and malfeasance in the wake of Hurricane María, which devastated the island in September 2017 (nine months into his term), and of mishandling the territory’s relationship with Washington. The Puerto Rican Supreme Court found his hand-picked successor, Pedro Pierluisi, constitutionally ineligible to take the job, and Justice Secretary Wanda Vázquez was sworn in on August 7.

The success of the mobilization in the streets and in social media is a hopeful sign for democracy and good governance in Puerto Rico, according to many observers. But the island’s complex economic challenges, including a massive debt crisis, and a legal relationship with the mainland United States that is vulnerable to shifting political trends make attaining that vision especially hard.

  • The island’s economy has been in recession for 13 years and is severely handicapped by a $124 billion debt crisis caused by irresponsible decisions by its government, private lenders, and Washington policies – driving a loss of productive population, erosion of the tax base, and a downward spiral of public finance and services, akin to that seen in U.S. cities such as Detroit. Hurricane María further plunged the island into misery. An estimated 3,000 people died directly or indirectly because of the storm, often because poor maintenance resulted in much of the island’s electricity and water supplies being disrupted for many months. (Carpetbaggers from the mainland are reestablishing some basic services but at exorbitant prices.) A fundamental problem for the island is that in the 1990s Washington took away tax incentives, such as for the island’s formidable pharmaceutical industry, that had fueled strong growth for several decades. These conditions have accelerated the outflow of citizens to the mainland – an estimated 4 percent of the island’s 3.5 million inhabitants in just 2018.
  • Further complicating matters, the Governor must submit all budget decisions to a Financial Oversight and Management Board established by the U.S. Government in 2016, which has seven members appointed by the U.S. President and one non-voting member appointed by the Governor. The board can block spending, institute hiring freezes, and take other measures when it does not approve of an expenditure. Puerto Rico’s proposed package of measures to climb out from under the debt, result of three years of negotiations, has been derailed by the political crisis.
  • Numerous experts have demonstrated that the U.S. Administration’s claim that it has sent $91 billion of aid to the island is false. As of early this summer, about $11.4 billion in Federal Emergency Management Agency funds had been approved, and only about $5.72 billion disbursed (including assistance to individuals and families). Puerto Rico has only a single representative in the U.S. Congress – a non-voting delegate – and its relations with Washington depend on the goodwill and expertise of a host of bureaucracies that often have conflicting agendas. As a U.S. territory, it cannot easily receive international assistance directly.

Corruption, bad policies, weak institutions, and vulgar leaders are obviously not unique to Puerto Rico (or Latin America), but the behavior that resulted in Rossello’s ouster underscores the toxic, bankrupt nature of much of Puerto Rico’s political class despite years of lip-service to democracy, transparency, and accountability. Full sovereignty, of course, is no guarantee that any of the territories, protectorates, and “special” jurisdictions in the Caribbean would fare better if they weren’t dependent on a protector nation. But Washington’s ability to give – and take away – benefits without dealing with San Juan as an equal partner, and then judging the island’s performance and meting out sanctions, further complicates efforts to find solutions to Puerto Rico’s many problems. Puerto Ricans have shown that they can take to the streets to dump venal leaders, but, made vulnerable by multiple crises, there’s little they can do to wake up the U.S. Congress from its neglectful slumber.

August 14, 2019

EU-MERCOSUR: Does Their New Association Agreement Mean Much?

By Thomas Andrew O’Keefe*

29/06/2019 Coletiva de Imprensa UE-Mercosul

Press conference about the trade agreement between the Mercosur and the EU / Palácio do Planalto / Creative Commons

After nearly two decades of intermittent negotiations, the European Union and the four core MERCOSUR nations (Argentina, Brazil, Paraguay, and Uruguay) have finally inked a trade agreement, but its real impact won’t be felt for years, if ever. When the negotiations began in the mid-1990s, the EU was the largest trading partner of the MERCOSUR countries, and the United States was number two. Today China is in first place, the European Union is second, and the U.S. is fourth, behind intra-Latin American trade (EU investors, however, continue to have the largest stock of foreign direct investment assets in the MERCOSUR region). When ratified, the EU-MERCOSUR Association Agreement, signed in Brussels on June 28, will exempt a little more than 90 percent of two-way trade from tariffs.

  • About 93 percent of MERCOSUR exports will eventually obtain duty-free access into the EU market, the bulk as soon as the agreement comes into effect. Agricultural commodities such as beef, chicken, corn, eggs, ethanol, honey, pork, rice, and sugar only get reduced duties, with many also subject to quotas. Another 100 MERCOSUR agricultural items are completely excluded from any type of preferential treatment.
  • Some 91 percent of European exports will get duty-free access to MERCOSUR, but gradually as tariffs are reduced over a 10-year period. The phase-out is over 15 years in the case of European automobiles, furniture, and shoes. MERCOSUR tariffs on the remaining 9 percent of primarily EU manufactured goods will remain in place permanently.
  • The agreement offers service providers from any signatory country full access to the markets of all the other signatory states.

MERCOSUR showed greater flexibility with the EU on agricultural subsidies than it had with the United States, a position that contributed to ultimate rejection of the Free Trade Area of the Americas (FTAA). Subsidies in the EU-MERCOSUR agreement are permitted if “necessary to achieve a public policy objective.” The MERCOSUR countries also capitulated on the use of anti-dumping tariffs on intra-hemisphere trade. The new accord, however, does authorize governments to impose a duty that is less than the margin of dumping if it adequately removes injury to the affected domestic industry. It also includes provisions for ensuring that sanitary and phytosanitary (SPS) measures as well as technical norms are not abused and become disguised impediments to free trade, although it permits enforcement of the European “precautionary principle” notion to restrict the importation of genetically modified food, for example, where the risks to health are not scientifically conclusive.

The agreement – now being “legally scrubbed” and translated into the EU’s 23 official languages – faces an elaborate, multi-year ratification process in the EU, where individual countries and the European Parliament must approve it, as well as each MERCOSUR government. Agricultural forces are already lining up in many European countries in opposition. In the meantime, the accord’s greatest impact is a signal by Brazilian President Bolsonaro and Argentine President Macri that they’re making progress on their stated objective to return MERCOSUR to its original trade focus – in contrast to their predecessors – and to claim an economic “victory” when growth in both countries remains stagnant.

  • Despite the flexibility MERCOSUR showed on agricultural subsidies and anti-dumping, its main sticking points with the United States in the FTAA, a free trade agreement with the United States seems remote as the Trump administration – in contrast to the Europeans – is unlikely to offer meaningful concessions based on the lesser developed status of the MERCOSUR countries. Neither will the Association Agreement with the EU reverse or even slow the region’s shift toward trade with China and the rest of Asia.

August 6, 2019

* Thomas Andrew O’Keefe is the President of New York City-based Mercosur Consulting Group, Ltd. and a lecturer at Stanford University. He is the author of Bush II, Obama, and the Decline of U.S. Hegemony in the Western Hemisphere.

Domestic Politics and U.S.-Colombia Relations 

By Sebastian Bitar and Tom Long*

duque and pompeo

Secretary Pompeo and Colombia President Ivan Duque Marquez Visit the Migration Transition Assistance Center in Bogota. U.S. Department of State / U.S. Government Works

Colombian domestic politics and institutions have created obstacles for President Iván Duque during his first year in office, complicating efforts to meet demands from U.S. President Donald Trump and reestablish close bilateral cooperation with the United States. As the hand-picked successor of former President Álvaro Uribe, long Washington’s closest ally in Latin America, Duque was widely expected by many in the United States to fully align Colombia with U.S. priorities. Like his mentor, Duque criticized the Colombian peace process as prolonging drug trafficking, raising Washington’s hopes that he would aggressively confront a spike in coca production that started in 2016.

  • In September 2017, nine months before Duque’s election, Trump publicly threatened to “decertify” Colombia for inadequate cooperation on counternarcotics – almost unthinkable in the Plan Colombia era. Despite efforts, the new government has not delivered to Trump’s satisfaction. Opponents blocked resumption of aerial spraying of coca fields with glyphosate – an herbicide linked to cancer. The new transitional justice high court, known as JEP, refused U.S. requests to extradite a high-profile former guerrilla leader, “Jesús Santrich,” to face drug trafficking charges in the United States, reversing a decades-long tradition of requiring only a U.S. indictment with no judicial process in Colombia. The Trump administration retaliated by suspending the visas of some Colombian justices, provoking a domestic political backlash that has further hemmed in Duque.

The U.S. actions emerge from the inaccurate assumption that Colombian presidents can make foreign policy without regard for domestic opposition and institutions. Much U.S. scholarship and policy commentary on the Andean nation’s foreign policy is marked by a near-exclusive focus on the person of the president on the one hand, and on the role of the United States on the other. In our recent article, “Domestic Contestation and Presidential Prerogative in Colombian Foreign Policy,” we demonstrate the limits of these commonly held views of Colombian foreign policymaking. While U.S. pressure is indeed a heavy constraint and Colombian Presidents, constitutionally and institutionally, enjoy wide latitude in foreign policy, we show that Colombian foreign policy increasingly responds to domestic pressures.

  • The Constitutional Court has emerged as a surprising constraint even on very strong presidents’ foreign policies. In 2009-2010, it was mostly an afterthought for the powerful and popular Álvaro Uribe when he prioritized an expansion of the U.S. military presence in the country through the establishment of military bases – largely ignoring South American opposition. The court’s veto, along with strong public opposition, came as a surprise to the President. Its mandate to go through Congress risked political costs that Uribe’s successor, President Juan Manuel Santos, was unwilling to pay.
  • Colombian presidents have also adapted their foreign policies in the face of potential electoral and Congressional costs. In 2012, during the height of the “China boom,” Santos proposed free trade negotiations with China as a top priority, but manufacturing interest groups – including some of Santos’s close allies – turned the Congress against the President. Santos backed away and embraced a face-saving investment agreement. Perhaps more embarrassingly, when the International Court of Justice issued a ruling on a maritime dispute with Nicaragua that gave Colombia sovereignty over disputed islands but forced a compromise on territorial waters, Santos was faced with electoral political mobilization from his former patron, Uribe. Despite explicit promises to abide by the ruling, Santos revoked recognition of compulsory jurisdiction – long a cornerstone of Colombian diplomatic tradition.

While critiques that Plan Colombia (2001-15) was cooked up by the State Department without deep Colombian involvement are false, Colombian domestic politics were secondary to those of the U.S. Congress. An unpopular Colombian President, Andrés Pastrana, was able to sideline domestic opponents and affect the internationalization of the Colombian conflict – shaping the view of Presidential power over Colombian foreign policy. However, in many ways, that was both an outlier and a turning point.

  • Exaggerated presidentialism, linked to tropes of caudillos and strongmen presidents, can lead to one-dimensional analysis and unfulfillable policy expectations. While domestic dynamics are often considered when discussing U.S. foreign policy, they get little attention in the Latin American context. As the recent episodes above reflect, these domestic constraints have caught Colombian presidents themselves off guard, and the presidentialist assumption can lead U.S. policymakers to make demands that assume Colombian presidents are pliable in the face of U.S. pressure but omnipotent domestically. Contested presidentialism is here to stay. 

 

July 31, 2019

* Sebastian Bitar is Associate Professor in the School of Government at Universidad de los Andes. He is author of US Military Bases, Quasi-bases, and Domestic Politics in Latin America. Tom Long is Associate Professor at the University of Warwick and Affiliate Professor at CIDE, Mexico City. He is the author of Latin America Confronts the United States: Asymmetry and Influence. Their full article was published by the Bulletin of Latin American Research and was co-authored with Gabriel Jiménez-Peña.

 

Does Mexico’s “3×1 Program for Migrants” Encourage Autodefensas?

By Clarisa Pérez-Armendáriz and Lauren Duquette-Rury*

Autodefensas

Autodefensa in Michoacan / Esther Vargas / Creative Commons

Mexico’s armed vigilante groups, or autodefensas, are more likely to exist in those municipalities where migrant organizations – called hometown associations (HTAs) – help fund projects back home in collaboration with local authorities. HTAs are voluntary civic associations or clubs located in migrants’ destination countries – the United States for Mexicans – comprised of individuals with a shared attachment to a common place of origin. HTAs raise funds that they send home to fund public goods such as roads, health clinics, potable water, electricity, drainage and sanitation, and schools, often in partnership with government authorities. Since 2002, the Mexican government has run a “3×1 Program for Migrants” that matches the remittances that HTAs send back to their origin community at the local, state, and federal levels of government

  • In a recent article, we analyze data from 2,352 Mexican municipalities in 2002-13 that show that vigilante groups were more likely to emerge in 2013 in municipalities where HTAs participated frequently (six or more times during a 10-year period). The vigilante groups are parochial organizations comprised of private citizens who, acting outside of the formal mechanisms or institutions sanctioned by the state, take up arms to provide security for their communities.

The repeated cooperation between migrants and state and local actors appears to enable community members to act collectively in security and justice matters as well as public good projects. Notably, the depth and frequency of contact are more important factors than the amount of investment and the presence of drug-related violence or activities. Mexico’s vigilante groups apparently are not merely a response to contemporary security crisis, state incapacity, or unequal access to security. Rather, they are a function of citizen capacity enhanced by transnational linkages, strengthened by 3×1, to mobilize collectively to provide security for their communities.

  • In contrast to research indicating that migrant-state transnational co-production partnerships contribute to strengthening democracy by enhancing collective organizational capacity through preexisting levels of social capital, resources, and knowledge, we find that HTAs and their communities can marshal their new capacity to form organizations that carry out informal, non-state, extra-legal armed actions. Autodefensas can threaten state capacity and the rule of law. While they tend to be community-based organizations and have contributed to reducing violent crime, the mechanisms for citizens to hold these groups accountable are limited and human rights violations and extrajudicial killings are common.

The 3×1 Program rules prohibit the funding of private security in municipalities. Program funds could conceivably be misallocated strategically, but doing so to fund nonstate armed groups would entail significant risks and costs. It would be easier for HTAs to simply reallocate their collective remittances toward projects – including public security –  outside of the 3×1 program.

  • The HTA’s motives merit further inquiry. While evidence is lacking to demonstrate that HTAs’ desire to protect their investments is a key factor in encouraging vigilante group formation, they and their local co-sponsors are indeed targets of extortion by criminal gangs. They may be seeking to protect their current and future public goods investments by adapting the successful transnational coproduction model for public good provision to specifically enable vigilante group formation in Mexico. The emergence of return migrants from the United States as key leaders of vigilante groups in 2013 –  including José Manuel Mireles and Luis Antonio Torres (“El Americano”) – makes the question of social and political remittances all the more compelling.

July 23, 2019

* Clarisa Pérez-Armendáriz  teaches Politics and Latin American Studies at Bates College and is guest editor with Ana Isabel López García (GIGA-Hamburg) of a Special Issue in the Journal of Ethnic and Migration Studies on how Mexican emigrants respond to and influence political violence in Mexico.  Lauren Duquette-Rury teaches sociology at Wayne State University and is the author of Exit and Voice: The Paradox of Cross-Border Politics in Mexico (University of California Press, 2019).

New Leadership in El Salvador: Breaking from the Past?

By Eric Hershberg*

U.S. Air Force Chief of Staff Gen. David L. Goldfein meets with El Salvador’s newly elected President Nayib Bukele

U.S. Air Force Chief of Staff Gen. David L. Goldfein meets with El Salvador’s newly elected President Nayib Bukele / Joint Base San Antonio / Public Domain

Salvadoran President Nayib Bukele’s stunning defeat of both of his country’s two dominant parties in February was propelled by promises of change and new approaches to challenges that vexed his predecessors. His initial six weeks in office have featured notable gestures toward fresh directions but also grounds for concern. The country’s problems are many and severe. Decades of paltry private investment has produced anemic economic growth, worsened in recent years by a devastating internal security situation. The limited economic growth that has occurred relies disproportionately on remittances from migrants – the value of which exceeds that of exports – but the circumstances of Salvadorans in the United States are growing more precarious, potentially eroding future transfers. In addition, plausible shifts in trade policy by an erratic U.S. administration could undermine the U.S.-CAFTA-DR trade agreement, threatening critical manufacturing jobs. Corruption, meanwhile, is perceived by the population as no less urgent a challenge as joblessness and impunity for the gangs whose extortion and violence torment much of the population.

Bukele’s winning campaign formula was to promise to turn things around with a new vision and new people. One important signal of change was the President’s order to immediately remove the big block letters “Monterrosa” from the barracks of the armed forces 3rd brigade, in San Miguel, and his hosting a dinner at the Presidential residence for family of the victims of the El Mozote massacre that Lt. Col. Monterrosa had overseen. A handful of initial cabinet appointments signaled an inclination toward meritocracy and gender balance. Yet Bukele has more recently appointed to key positions dodgy veterans of the administration of former President Tony Saca (2004-09), who split (and was later expelled from) his ARENA Party to form a new party, GANA. While Saca is serving a 10-year prison sentence for corruption, Bukele, who was expelled from the FMLN in 2017 and thus lacked a vehicle of his own with which to seek the presidency, opted to run on the vacant GANA ticket. The appearance of figures from Saca’s inner circle is thus not entirely a surprise, but it stands out given the degree that Bukele’s largely platform-less campaign highlighted the battle against corruption.

  • One of his pledges was to create a hybrid (national-international) anti-corruption commission – adapted from the experiences of CICIG in Guatemala and MACCIH in Honduras – to hold accountable political elites suspected of extraordinary levels of malfeasance. Yet both domestic and external constraints make such an effort less likely than Bukele might have imagined while on the campaign trail, and the Comisión Internacional contra la Impunidad en El Salvador (CICIES) seems to have been relegated to a back burner.
  • Equally striking is the new President’s doubling down on militarized responses to gang violence, departing from both his campaign rhetoric and his mode of governance as mayor of Nuevo Cuscatlán (2012-15) and San Salvador (2015-18). Whereas he had entered into pragmatic if unspoken accommodations with the gangs in order to secure governability at the municipal level, he’s now declaring all-out war against the maras, sending the military into gang-ridden communities and clamping down on communication from the prisons from which gang leaders continue to direct operations. During the first week of July – a month after assuming office – he asserted that repression was but the first phase of a comprehensive anti-gang strategy, promising a second phase, focused on social opportunity, that would address the structural factors that draw youth toward lives of criminal violence. But details remain thin, and whether funds will be appropriated by a legislature in which GANA has only a small minority of seats remains to be seen.

Bukele represents El Salvador’s first Instagram and Twitter president – with a penchant for announcing sweeping personnel changes without having informed affected staff in advance. His recourse to social media for proclaiming “you’re fired” aligns him with other western hemisphere presidents eschewing traditional channels of communication with public employees and the citizenry, but in El Salvador as elsewhere this justifies concern over how governance through a cacophony of tweets may affect the quality of democracy.

Meanwhile, the new president has wisely emphasized that cordial relations with the United States are an imperative for his government. More than a third of his compatriots reside there, and he has already taken steps to gain Washington’s blessing for his administration. At U.S. urging, he invited the representative of Venezuelan assembly president Juan Guaidó to his inaugural, and when a Salvadoran father and daughter drowned in the Rio Grande, Bukele exonerated President Trump’s border policies, saying “La culpa es nuestra.” Nonethelesss, he has been critical not only of Venezuelan dictators who Washington abhors but also Honduran ones who the Americans enable. Meanwhile, observers in San Salvador opine that, contrary to Washington’s wishes, he will not reverse his FMLN predecessor’s decision to deepen relations with China – he needs Chinese investment and recent history offers little reason for expecting analogous resources to arrive from the U.S. Finding the money needed to provide jobs, security and social welfare to the vast majority of Salvadorans who have lacked them may prove as vexing for the outsider president as it was for leaders of the dominant parties of the post-war period.

July 16, 2019

* Eric Hershberg is Professor of Government and Director of CLALS at American University. He took part in a delegation of AU experts for a weeklong visit to El Salvador in June, during which they met with political leaders across the political spectrum, as well as leading journalists, scholars, NGO leaders, policymakers and diplomats.