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Ecuador: Beyond the Presidential Contenders

By Christopher Kambhu*

Andrés Arauz Galarza / Wikimedia Commons / Creative Commons License (Modified) | Profile photo of Guillermo Lasso / Mabel Velástegui / Wikimedia Commons / Creative Commons License (Modified)

When Ecuadoreans head to the polls this Sunday to vote in the presidential election runoff, the two candidates on the ballot represent the country’s dominant political movements, but February’s first-round and legislative votes demonstrate a changing political context that will constrain the next president.

  • Andrés Arauz, a little-known economist until he launched his campaign, won the first round with 33 percent and is favored by analysts to win the runoff. His support lies in his ties to former President Rafael Correa, who anointed him to lead his leftist political movement. Correa intended to be Arauz’s running mate but was barred from seeking office due to corruption convictions from his time as president. Arauz’s policies are largely a continuation of Correa’s in substance and style; he has pledged to provide cash payments to a million families during his first week in office and vowed to scrap an austerity plan put in place by outgoing President Lenín Moreno as part of a loan package with the International Monetary Fund.
  • Guillermo Lasso, a major shareholder in one of Ecuador’s biggest banks and former economy minister, has reached the runoff for the third time in as many attempts, with just under 20 percent of the vote. He has the support of the business community, especially in Quito and the coastal commercial hub of Guayaquil. His name recognition and significant finances put him in a strong position heading into the second round, but his role as minister during the country’s 1999 financial crisis and long career in the banking sector remain liabilities. His campaign is working to unite rivals who lost the first round.

This is the third consecutive election in which a rightwing challenger is taking on the leftist politics of Correa, but an environmental lawyer and the third-place finisher in the first round, Yaku Pérez, is poised to play a decisive role in the outcome. Positioning himself as a leftist alternative to the establishment politics that Arauz and Lasso represent, Pérez calls for stronger environmental protections and support for renewable energy – positions that have been adopted, at least rhetorically, by both runoff campaigns.

  • While analysts predict Arauz and Correismo will triumph, the polls are close. Further uncertainty stems from how Pérez’s supporters will vote; for them, deciding between a Correista and a banker is to choose the lesser of two evils. So far, Pérez is not endorsing either candidate and has told his supporters to spoil their ballots. (Voting is mandatory.) Voters are apparently listening; polls show up to 20 percent of respondents will not vote for either candidate.

Whoever wins, they will face several immediate challenges. Cases of COVID-19 are nearing the record levels set a year ago, when scenes of bodies lying in the streets of Guayaquil made international headlines. The outgoing Moreno administration has struggled to obtain vaccines and changed health minsters three times due to poor results and various scandals. Engineering economic recovery from the pandemic will also be a huge test. Both candidates support expansion of extractive industries, which were key drivers of Ecuador’s economic growth during Latin America’s commodities boom in the 2000s. However, this tactic will face resistance from the growing environmental movement energized by Pérez’s campaign.

  • The runoff victor must also contend with the National Assembly, which saw a significant electoral shakeup in February. The Pachakutik Plurinational Unity Movement, the indigenous party which Pérez represented in the presidential campaign, had the best results in its history and will be the second largest party in the legislature after Arauz’s Unión por la Esperanza. Pachakutik generally played a minor role on the national stage until it and other indigenous groups lead nationwide 2019 protests against the Moreno administration’s attempt to end fossil fuel subsidies as part the IMF loan deal. Pachakutik parlayed its new national profile into electoral success and is in a strong position to influence most legislation, regardless of who wins the presidency.

April 8, 2021

*Christopher Kambhu is a Program Coordinator at CLALS.

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by clalsstaff on April 8, 2021  •  Permalink
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Cuba: Communists Convene

By William M. LeoGrande*

(From left to right) Miguel Díaz-Canel, Homero Acosta, Salvador Valdés, Ramiro Valdés, and Roberto Morales Ojeda/ Cubadebate/ Flickr/ Creative Commons License

The Cuban Communist Party (PCC) will convene its Eighth Congress on April 16‑19 to choose new leadership and assess policies intended to address longstanding economic and political challenges – with no indication of bold new departures. After all, Raúl Castro’s heir apparent as party leader, Miguel Díaz-Canel, has adopted as his favorite hashtag #SomosContinuidad. The meeting will have three major agenda items: selection of a new First Secretary to replace 89-year-old Raúl Castro and – perhaps – the replacement of other elderly party leaders; an assessment of progress implementing economic policies adopted at the Sixth Congress in 2011; and a review of the party’s political work, as mandated by the First National Party Conference in January 2012.

  • The Cuban leadership is undergoing a generational transition from “los históricos,” who founded the revolutionary regime, to a new generation born after 1959. Castro has affirmed his intention to step down as First Secretary in favor of Díaz-Canel, who succeeded him as President in 2018. However, Castro has not publicly ruled out remaining a member of the Political Bureau, and neither have the four other veterans of the struggle against Batista on the 17-member body – including reputed conservatives Second Secretary José Machado Ventura and Ramiro Valdés. The generational transition will not be complete until they depart; it’s hard to imagine Díaz-Canel would truly be in charge if he is still surrounded by these powerful old-timers.

Pummeled by President Trump’s tightened sanctions and the COVID-19 pandemic that closed the tourist industry, Cuba is suffering the worst economic crisis since the “Special Period” of the 1990s after the Soviet Union collapsed. The central theme of the Party Congress will be an exhortation to the party faithful to go full speed ahead on economic reforms, overcoming the bureaucratic resistance that has impeded them until recently.

  • When Raúl Castro introduced the reforms in 2011, he said it would take a decade to put them in place. Ten years later, they are far from finished, although the pace of reform has accelerated over the past nine months. The number of permitted private-sector occupations has increased from just over a hundred to more than 2,000. The dual currency and exchange rate system that created crippling distortions in the economy has been scrapped. And state enterprises have been put on notice that they have 12 months to become profitable or close their doors. In the short term, however, the economy remains hobbled by inefficiencies and unable to satisfy many basic needs.

The Congress will also review the party’s “political work” – the task of building public support for the government. In 2012, Raúl Castro criticized the party’s poor performance. Endless meetings degenerated into “formalism,” in which no real criticism was ever voiced and little was accomplished, thereby “spreading dissatisfaction and apathy” among the membership. These failings weakened the party’s ties to the broader public, for whom it seemed remote and inaccessible. Another indicator of the party’s tenuous standing was an 18 percent decline in membership from 2011 to 2016 – the first decline since the party was founded in 1965.

Cuba’s party congresses always convene on the anniversary of the Bay of Pigs invasion – 60 years ago this April –  to commemorate Cuba’s successful defeat of Washington’s imperial designs. The focus of the upcoming Congress, however, will be on how the party can steer its way past the shoals of Cuba’s internal challenges and “update” its economic model of socialism through reforms that it nominally embraced years ago but has failed to fully carry out. With popular discontent at a peak because of the desperate economic situation and with critics mobilizing through social media to challenge state policy, the party has its work cut out for it.

April 5, 2021

* William M. LeoGrande is Professor of Government at American University. 

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by clalsstaff on April 5, 2021  •  Permalink
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Mexico: Setting a “New Social Ethic” of Sustainability?

By Veronica Limeberry*

Maize plot using agro-ecological options in Mexico/ International Maize and Wheat Improvement Center/ Flickr/ Creative Commons License

Mexican President Andrés Manuel López Obrador’s decree phasing out the use of the herbicide glyphosate and genetically modified (GMO) corn has strong support in Mexico – for now – and could conceivably show a way ahead on sustainable development for other countries. Announcing the decree on New Year’s Eve, AMLO framed it as creating a “new social ethic” in food production that puts the wellbeing of the Mexican people before the interests of private companies and profits. The government is moving ahead with implementation of the decree this month despite rapid and harsh pushback from Mexican and U.S. agribusiness. The U.S. Farm Bureau Federation, whose members sell GMO corn to Mexico, appealed to U.S. Agriculture Secretary Vilsack to oppose Mexico’s move.

  • Advocates of sustainable development have long opposed the use of glyphosate, the world’s most commonly used herbicide. The chemical was declared a probable carcinogen in a 2015 World Health Organization (WHO) report. Concern about glyphosate has surged in Mexico since a 2019 study by the University of Guadalajara found that all 148 children in the study had glyphosate in their urine, and all had chronic health conditions. The herbicide’s producer, Bayer-Monsanto, is in the midst of one of the largest settlements in history ($10.9 billion) involving tens of thousands of suits claiming that it causes cancer and death. Despite these growing concerns, glyphosate sales grew from $3 billion in 2015 to $8.5 billion last year, and industry watchers forecast them to be over $13 billion by 2027.

AMLO’s decree on GMO corn also reflects growing interest in Mexico to reclaim the country’s agricultural biodiversity. Mexico is the center of origin of over 59 food varieties, including corn, beans, squash, and cocoa. Mexican corn has long been part of the country’s national identity. The campaign Sin Maíz No Hay País (Without corn there is no country), launched more than a decade ago, embraces the grain as “the basis of our culture, our identity, adaptability and diversity.” Nonetheless, Mexico imported 18 million tons of GMO corn from the United States in 2020, comprising 40 percent of corn consumption. Seeking to reverse this, progressive deputy agriculture minister Víctor Suárez led the push for the decree and emphasizes “achieving self-sufficiency and food sovereignty.”

The decree includes radical terminology and establishes agroecology as national policy informed by Mexican food identity and traditions. AMLO and Suárez have defended its emphasis on sustainable, ethical, and increased food production “through the use of agroecological practices and inputs that are safe for human health, the country’s biocultural diversity, and the environment, as well as congruent with the agricultural traditions of Mexico.” The measure has the support of rural communities and both houses of Congress.

  • Some of the AMLO Administration’s rhetoric seems intended to provide leadership to other countries seeking alternatives to herbicides like glyphosate as well as GMO foods while trying to decenter the needs of industry. Numerous studies point to agrarian crises in many countries – such as the farmers’ movement in India – for which AMLO’s move conceivably offers a model. The Mexican decree offers language of community, sovereignty, and wellbeing attractive to advocates of agricultural sustainable development for the future. It will take some time, however, to see if Mexico’s approach persuades others that it can be implemented and retain popular support over the long term.

March 31, 2021

* Veronica Limeberry is a doctoral student at American University focusing on agroecology, food sovereignty, and indigenous territorial rights.

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Nicaragua: Triple-Crisis Threatens More Instability, Poverty, and Migration

By William Vigil*

EU solidarity: helping Central America recover after hurricanes ETA and IOTA / European Union (D. Membreño) / Flickr / Creative Commons License

Three years of political unrest, COVID-19, and back-to-back Category 4 hurricanes last November have created a precarious situation in Nicaragua – raising the probability of increased instability, poverty, and migration into Costa Rica and northward toward the United States. Long ranked the second poorest country in the hemisphere (after Haiti), the country has experienced worsening socio-economic conditions since 2018, and shrinking democratic and civic spaces have deepened political polarization.

  • In 2018, the government cracked down on protests triggered by cuts in social security benefits, followed by months of violent suppression of unrest and demands for a democratic opening. The result was more than 325 dead, thousands wounded, mass detentions, and the exodus of more than 100,000 persons.
  • The turmoil drove a steep downturn in the economy. According to the Nicaraguan Central Bank (BCN), Nicaragua’s economy contracted 4.0 percent in 2018 and 3.9 percent in 2019, while inflation increased to 3.9 percent and 6.1 percent respectively. Other sources estimate a 4.0 percent decline in 2020. According to the World Bank, investment and consumption fell sharply, prompting significant unemployment, particularly in construction, commerce, and tourism. A 2019 household survey by Fundación Internacional para el Desafío Económico Global (FIDEG), a Nicaraguan think tank, indicated that poverty rates had increased at the national level, both in terms of general poverty and extreme poverty.
  • Efforts by national and international groups to advance dialogue to reduce political tensions have not been successful. Framework accords in March 2019 on the release of political prisoners and the restoration of civil rights were only partially fruitful. Targeted international sanctions against government individuals and entities have been intermittent and have not changed government behavior. Some measures have led to retribution, moreover, such as the abrupt closure of the UN and OAS human rights missions in the country.

Nicaragua’s policies regarding COVID‑19 have been erratic and haphazard, and recovery from last November’s hurricanes has been slow. Leaders initially argued that the country’s economic challenges made quarantine largely untenable, and Nicaragua attempted Sweden’s policy of “herd immunity” despite the dramatically different national and institutional capacities of the two countries. In addition, Hurricanes Eta and Iota left tens of thousands of people homeless and without drinking water. According to the Nicaraguan Finance Minister, 3 million people in 56 municipalities were affected, with estimated economic damages of $738 million.

  • Nicaragua has experienced a surge in unemployment, but – in contrast to other countries – has not adopted policies favoring a return to pre-crises levels. Some economists estimate that basic necessities and services now cost more than double the average household income. According to a Gallup poll taken in January, six out of every 10 Nicaraguans would migrate to other countries if they had the opportunity.

These crises do not show credible signs of abating. They significantly increase the likelihood of a challenging outlook, particularly for the country’s most vulnerable population groups. Systematic and comprehensive action has been lacking in and outside the country, however. The international community, including donors, multilateral banks, development agencies, and NGOs, has not been in a position to respond to the crises in a coordinated fashion. Their natural desire to seek a prominent role for civil society in any comprehensive strategy – with accountability and transparency – is frustrated by government resistance.

  • Nicaragua’s volatile political situation could eventually evolve into a humanitarian crisis with repercussions for the rest of the region. Tensions will increase as national elections scheduled for November approach, as all indications are that the government will further restrict civil and political rights. The country’s problems, moreover, could easily spill over its borders. Migration has traditionally been an escape valve. A new wave of refugees could be expected in Costa Rica, but that country’s own economic challenges may well instead drive many to head north.
  • International assistance alone won’t be enough. Conditions of strict accountability, transparency, civil society engagement, and close consultation with affected populations are necessary for it to have significant impact. Together, donors, multilateral banks, the UN, and NGOs have a degree of leverage to ensure the correct use of resources, such as by conditioning it on full respect for human rights. UN human rights chief Michelle Bachelet last month called on the government to “urgently adopt effective electoral reforms and establish a genuine and inclusive dialogue with all sectors of society,” but slowing or stopping the country’s downward spiral will require much more from all sides.

March 23, 2021

* William Vigil is co-director of the South-North Nexus. He is a former Nicaraguan diplomat who served in New York (at the United Nations) and in Washington, D.C. This article is based on a South-North Nexus report entitled Nicaragua’s Converging Crises.

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by clalsstaff on March 23, 2021  •  Permalink
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Posted by clalsstaff on March 23, 2021

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Cuba: Private Sector Gets a (Tentative) Boost

By Ricardo Torres*

Morning Street Market in Trinidad, Cuba/ Bud Ellison/ Flickr/ Creative Commons License

The Cuban government has announced measures that represent a significant shift in its treatment of the private sector, but the reforms will not have the desired impact without supporting legislation and other steps. In one of its more important announcements on reform, authorities abandoned their focus on listing permitted categories of work, and instead issued a list of prohibited activities – leaving open the rest of the economy for private individuals.

  • On February 11, the Labor Ministry issued for public discussion a list of 124 activities, based on an international classification of job categories, that will remain off-limits for cuentapropismo (self-employment). Among the most prominent professions that will remain under state control are journalists, lawyers, accountants, architects, and engineers – as well as some positions in the value chain in tourism.
  • The reasons for these restrictions range from political and social sensitivity; poor coordination and improvisation among various agencies that were working on the initial drafting of the list; and the protection of the narrow interests of various industries, such as in some parts of tourism.

The benefit of these prohibitions is questionable from the perspective of national economic development. The Cuban economy appears likely to continue shifting toward specialization in services, but the next stage in that process will require expansion into areas that are more complex, more deeply integrated into the productive system, and more focused on foreign markets. This stage will require the skills of Cuban professionals, many of whom today, seeing few good prospects at home, are leaving the country frustrated in search of opportunities to use their talents and build a good life for themselves elsewhere. For a country with a demographic profile that’s already adverse, the brain drain will be even more damaging.

  • The International Labor Organization (ILO) reports that, in medium- and high-income countries, companies with up to nine workers represent 32‑38 percent of all employed persons, while another 42 percent work in entities that have between 10 and 49 employees. Cuban labor, in sharp contrast, is divided into state enterprises (with an average of 800 workers); agricultural cooperatives (94 workers); urban cooperatives (typically 39 workers); and cuentapropistas working alone or with one partner. This labor structure is simply not adequate for future needs.

The new measures raise other questions about the objectives of the reforms. Of the 600,000-plus cuentapropistas, some 100,000 are de facto companies – without full legal personality and its protections. Cuba lacks a solid framework for the development of the private sector. Consideration of the small and medium enterprise law promised by the government years ago is still in limbo, with no clear date. Cuban law also does not clearly distinguish between subsistence production and dynamic undertakings, nor between owners and workers. It does not establish the formal channels necessary for communication with the sector, nor how to apply laws dealing with social rights, environmental protection, and similar requirements. There is also no sign of specific legislation permitting work by truly independent workers and cooperatives.

The challenge ahead lies in the fact that the political documents for these and other reforms over the years – such as Conceptualización (during the 7th Party Congress in 2017) and “Plan 2030” – present only a narrow, schematic concept of private-sector development. The omissions and ambiguities in them are huge. Without effective follow-up, the full intent of even these new steps will not be realized – and progress will yet again be delayed. A holistic vision of reform and its objectives is necessary now more than ever. No one knows, however, if the Cuban leadership has the appetite and political space within the party and government bureaucracy to make it happen.

March 15, 2021

* Ricardo Torres is a Professor at El Centro de Estudios de la Economía Cubana at the University of Havana and a former CLALS Research Fellow.

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United States: Is ICE on the Chopping Block?

By Brandon Hunter-Pazzara*

Enforcement and Removal Operations (ERO) in Chicago, IL/ Flickr/ Public Domain

Even if the Biden Administration does not heed the rallying slogan of hashtag #AbolishICE, the United States Immigration Customs and Enforcement (ICE) could be put on a course that guts the agency’s mission and renders it a non-player in U.S. policy. The new administration’s push for immigration reform and reversal of many of its predecessor’s policies, including overhauling family processing procedures on the U.S.-Mexico border last weekend, signal significant change ahead for ICE – if not elimination of the agency itself.

The agency’s mixed performance on its two principal missions – enforcing immigration laws by removing unlawful migrants and combating transnational crime – has fueled pressure for reform.

Enforcement and Removal Operations (ERO), which account for $5 billion of the agency’s roughly $8.3 billion budget and 8,000 of its 22,000 employees, regularly fall short of ICE’s stated goals even as the mission has gotten easier. 2019 was the only year to date that it reported meeting removal targets. In 2021, the number of undocumented migrants in the United States is 10 million-11 million – the same as in 2003 – despite dramatic declines in new arrivals. According to a 2017 report by U.S. Customs and Border Protection (CBP), unauthorized border crossings were about 1 million in 2003 but had fallen below 500,000 by the time Donald Trump took office in 2017.

  • Significant changes to immigration law such as those contemplated by the Biden Administration could make ICE’s immigrant removal mission obsolete. For instance, its immigration bill creates several paths to legal status for the 11 million undocumented migrants, which if passed would shift the responsibility to U.S. Citizenship and Immigration Services (USCIS). ICE’s interior operations could very well be moved to CBP or eliminated altogether. 

Homeland Security Investigations (HSI), with a budget of $2 billion and some 10,300 employees, is one of dozens of federal and state agencies tasked with combating transnational crime. Observers have long noted that it remains unclear why these tasks are not handled by more effective law enforcement agencies. 

  • ICE each year reports its arrests, convictions, and cash and narcotics seizures – metrics that usually represent a small fraction of the total amount of narcotics reaching the street. ICE claimed it seized 6,105 pounds of fentanyl in 2020 – a year in which opioid-related overdoses increased significantly over 2019.
  • In terms of convictions, ICE reported in 2019 that it arrested 37,547 people for various crimes and won 16,792 convictions, a conviction rate of less than 50 percent. By comparison, the Drug Enforcement Administration (DEA) boasts a conviction rate in the high 80s. Policymakers may be tempted to break up HSI as ICE’s core missions decline and place its agents in other agencies.
  • While ICE claims in its yearly reports that it plays a pivotal role in terrorism prevention, it has yet to provide a public accounting of any successful operations and whether it has prevented an imminent attack during its 18 years of operations. 

ICE is not the only agency of the Department of Homeland Security (DHS) with problems. The U.S. Government Accountability Office (GAO) found DHS employees have a 10-point lower Employee Engagement Index Score – a measure of employee enthusiasm and purpose – compared to the federal average. But ICE and its missions are arguably the most vulnerable.

  • Numerous observers report it suffers from a culture of regular misconduct. As the ACLU documented, between Jan 2017 and April 2020, 39 adults died in ICE custody. During the Trump Administration, none of ICE’s directors was confirmed by the Senate – a sign that legislators don’t hold the agency in high esteem – and leadership resignations were common, including the remarkably brief two-week tenure of Jonathan Fahey this January. These issues only add to the damage done by numerous reports of ICE’s underhanded tactics and abuse of migrants, resulting in one 2019 poll finding that Americans considered ICE the worst federal agency. (Even so, according to a 2018 Politico Morning Consult Poll, most voters also say they do not support abolishing ICE.)
  • These contradictions are likely explained by the inertia of government reform and the rise of party polarization. In the past, a federal agency defined by inefficiency, incompetence, and bloat would have generated sharp criticism from Republicans. Yet, statements of support for President Trump during his presidential campaign and Presidency by ICE officials and the union representing its rank and file seem to have bought them protection. While the #AbolishICE groups are still likely to be frustrated that the agency survives, ICE seems destined to take some serious hits and would be wise to accept a serious conversation about its role and performance rather than wait for Mr. Trump’s return.

March 8, 2021

* Brandon Hunter-Pazzara is a CLALS Fellow and PhD Candidate in Cultural Anthropology at Princeton University.

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Mexico: AMLO’s Backwards Move on Fossil Fuels

By Daniela Stevens*

Comisión Federal de Electricidad (CFE) Building/ ThinkGeoEnergy/ Flickr/ Creative Commons License

Mexican President Andrés Manuel López Obrador’s proposal early last month to overhaul the country’s electricity market – which appears likely to become law – will betray the country’s climate change commitments, curtail private investment, and hurt consumers. Rooted in 1960s left-wing nationalism, AMLO’s vision is for a state-led, fossil fuel-powered electricity system. It is blind to what many experts consider the urgency for the government to coordinate with the private sector, which he prefers to portray as an adversary, on strategies to curb carbon emissions.

  • The lower Chamber approved the proposal “without changing a comma,” as the President asked. The Senate passed it last night, but the law will face obstacles in court. The Supreme Court in February declared that some guidelines that the Secretariat of Energy presented last May were unconstitutional because they hindered free competition and unduly benefitted the state electricity utility, La Comisión Federal de Electricidad (CFE).
  • AMLO’s plan reverses the principle of “economic dispatch” – a provision of the 2014 Electricity Industry Law (LIE) that requires the most efficient power plants (those with the lowest production cost) to be the first to upload electricity to the grid. Given the inefficiency of the CFE’s aging hydroelectric and thermoelectric plants, the law currently favors renewables like wind and solar, which are generally inexpensive and in the hands of private investors. AMLO wants to give preference to CFE ahead of private generators.
  • Since hydroelectric plants cannot satisfy electricity demand, the main beneficiaries will be the power plants that generate electricity from fossil fuels. The administration has repeatedly argued, without evidence, that renewables should be downsized because they are unreliable and give undue advantage to private capital. In the President’s view, the initiative would end “price simulation” in a market that favors private participants.

The international community, private sector, and civil society organizations immediately rejected the proposal.

  • The country’s largest business organization, El Consejo Coordinador Empresarial (CCE), called it an “indirect expropriation” of private power plants. Further, the private sector warned that the proposal would lead to national and international lawsuits for state compensation.
  • Diplomats representing the European Union, Canada, and the United States in Mexico said the move will damage the investment climate. The U.S. Chamber of Commerce pointed out that the “deeply worrisome” initiative violates the free trade spirit of the United States-Mexico-Canada Agreement (USMCA), undermining the confidence of foreign investors.
  • Activists and civil society organizations across Mexico said the policy reverses progress toward decarbonization and called it an infringement of international environmental commitments, such as the Paris Agreement and the Sustainable Development Goals of the United Nations’ 2030 Agenda.

López Obrador’s response to the criticism has been to claim his proposal restores Mexico’s energy sovereignty and self-determination, but it ignores the reality of the country’s dependence on U.S. natural gas – brought home when last month’s snowstorm in Texas paralyzed production and eventually caused blackouts in 26 of Mexico’s 32 states. Indeed, he flipped the narrative in claiming Mexico’s handling of the crisis was a “success of CFE’s workers,” compared to the “failure” of the liberalized electricity sector in Texas.

  • Relying predominantly on the fossil fuel intensive CFE only deepens Mexico’s vulnerability. Natural gas – 80 percent of which comes from the United States – is used to cover around 60 percent of Mexican energy needs. The proposal also fails to address some deeper issues, such as the lack of storage capacity, diversity in power generation sources, and investment in the electric grid to incorporate renewables.

The move is typical of AMLO’s fixation with grandiose national projects, such as El Tren Maya and the Dos Bocas refinery, both of which will harm the ecosystem of the Tehuantepec Isthmus, and to waste money in obsolete and polluting technology that shows disregard for climate change in favor of short-sighted energy nationalism. The reform not only defies climate issues; it challenges the energy sector’s autonomy, chills the investment environment, and marks a return to monopolistic and authoritarian practices.

March 3, 2021

* Daniela Stevens is an Assistant Professor at the Centro de Investigación y Docencia Económicas (CIDE) in Mexico City.

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by clalsstaff on March 3, 2021  •  Permalink
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Dominican Republic: Remittances Showing Strong Rebound Despite COVID-19

By Gerelyn Terzo*

Tower and Auditorium of the Central Bank of the Dominican Republic/ Rafael Calventi/ Wikimedia Commons/ Creative Commons License

The Dominican Republic’s economy has not escaped the slowdown caused by coronavirus, but one of its most important engines of growth – remittances from expatriates – has shown a strong resurgence in recent months.

  • The DR’s economy has been on a rollercoaster since the onset of the pandemic. The World Bank projects it contracted 4.3 percent in 2020, with the fallout continuing to reverberate throughout the country this year and next. This comes after decades of expansion, including annual growth of 6.1 percent between 2015 and 2019. Much of the country’s growth for decades has been fueled by personal remittances, hovering around 8.3 percent of GDP as of 2019.

Remittances plummeted more than 20 percent in March 2020, when the shock of the pandemic first hit, but they rebounded soon after, and a broader turnaround in the second half of 2020 appears to be helping the Dominican Republic toward a course of recovery. Families depend on funds from family members abroad for consumption, savings and investing.

  • By May, money transfers into the country from the United States rebounded nearly 18 percent, thanks to a Dominican diaspora that sent approximately $638.7 million home to their families. That was close to double the amount sent the previous month. Remittances have shown particularly strong growth since July, when transfers surpassed $827 million, 29.3 percent over July 2019.
  • Since then, the Dominican migrant community has not disappointed – more than compensating for the dip in remittances during the early COVID period. The Central Bank announced in December that “the flow of foreign currency continues to improve.” It pointed to a 27 percent year-on-year increase in remittances in November 2020, when they reached $707.5 million. For the January-November 2020 period, remittances climbed to nearly $7.4 billion compared to roughly $7.1 billion for all of 2019.
  • Nearly 85 percent of the flows over the past eight months originated from the diaspora in the United States, where unemployment among Latinos dropped about a half percent per month in late 2020. Other major sources are Spain and Italy, where Dominican migrants number 158,000 and 43,000, respectively.

Lockdowns and travel bans have ravaged the tourism industry, which customarily accounts for another 7‑8 percent of GPD. The number of visitors in November was one quarter that of the same month a year ago – making remittances an even more important input for the DR economy. Migrants living in the United States are likely working jobs that are considered essential during COVID in sectors of the economy such as healthcare. Regardless of how tough times get abroad, moreover, migrants from the Caribbean and Central America know that conditions are likely to be even more difficult back home – and these expatriates are more prone to sacrificing meals for themselves to ensure families back home can survive. A Santo Domingo local on social media suggested constructing a statue – similar to one in San Salvador in honor of Salvadoran expatriates – to honor the Dominican diaspora, who “against all odds” got the money through. The trajectory of COVID is still unknowable, but migrants’ commitment to helping family back home is already clear.

February 18, 2021

* Gerelyn Terzo is an analyst and writer on remittance flows and cryptocurrencies. This article is adapted from one she wrote for Sharemoney.

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by clalsstaff on February 18, 2021  •  Permalink
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Posted by clalsstaff on February 18, 2021

https://aulablog.net/2021/02/18/dominican-republic-remittances-showing-strong-rebound-despite-covid-19/

Latin America: Impact of the January 6 Insurrection at the U.S. Capitol

By Ilka Treminio Sánchez, Fábio Kerche, and Esteban De Gori*

Tear gas outside the U.S. Capitol on January 6, 2021/ Tyler Merbler/ Wikimedia Commons/ Creative Commons License

AULABLOG invited three Latin American experts to comment on the impact of the events in Washington, DC, last month on U.S. relations with the region.

Ilka Treminio Sánchez*

During the Trump Administration, the United States revealed regrettable signs of institutional erosion and democratic backsliding. The political engine that allowed and promoted these actions was based on polarizing political discourse that shaped a hostile atmosphere toward Trump’s and his supporters’ opponents. This behavior escalated to the point of attacks on the electoral results and the violent assault on the Capitol by Trump’s followers on January 6, the day Joe Biden’s victory was certified. The insurrection failed as institutions upheld the legitimacy of the electoral process and the popular will of the citizens.

For Latin America, and for Central America specifically, this episode signifies the rupture of the myth of democratic exceptionalism in the United States. It reveals U.S. fissures and defects that are characteristic of the hemisphere’s weakest democracies. Central America has many times experienced authoritarianism, populism, violence against the adversary, social violence against ethnic groups, attacks on Congress, and attempts to alter electoral results. The Trump Administration’s actions have seriously damaged the United States’ image as a country that guarantees democracy – and its future governments could lose moral authority in the region on this matter.

  • The January 6 assault could give new life to undemocratic “zombie ideas” in Central America, undermining progress in political and civil rights made in the last decades. It could further embolden efforts to weaken election processes and increase presidential authoritarianism already present in the region.

Fábio Kerche*

The insurrection at the U.S. Capitol and President Trump’s campaign to overturn the electoral results were a sad scene for more than just the United States. Democracy is the regime in which a government can be defeated in an election and then leaves office peacefully. The events in Washington revealed that, even in a country in which democracy was a consolidated regime, it is vulnerable – with profound implications for younger and more fragile democracies worldwide. This includes Latin America and particularly Brazil.

  • It is important to remember that the Brazilian political crisis started when the runner-up in the 2014 presidential elections challenged the results. Fortunately, the U.S. political institutions were still strong enough to overcome the impasse in Washington. The United States’ most recent crisis gives Latin Americans cause to consider what should and should not be done to protect and consolidate democracy across our continent. In Brazil, where President Jair Bolsonaro is trying to reproduce Trump’s style, the failure of the U.S. Capitol insurrection – and the triumph of the country’s Constitutional order – should discourage any imagining that there is a way out of democracy.

Esteban De Gori*

The insurrection was undoubtedly shocking for South America. No government and no citizenry had imagined that a group of persons could occupy the U.S. Capitol as they did, nor that challenges to U.S. electoral processes could be so intense. Among the most powerful events: persons supported by the President overrunning the building and deepening the runaway polarization; the struggle of the democratic system to overcome the challenges to the electoral competition; and, perhaps most profoundly, the erosion of popular faith in the system. Leaders in most of Latin America, with the exception of Venezuela and perhaps others, showed concern and surprise. A crisis afflicting a great geo-economic player in the context of a pandemic and trade war with China could bring greater uncertainties and risks and, especially now, few opportunities.

  • The insurrection and the singularly belligerent government of Donald Trump are not the only things driving reassessment of the United States as a promoter of democracy and the rule of law. Since 2008, to take the financial crisis as a point of reference, doubts about the effectiveness of the country’s political system have deepened. That discomfort helped bring Trump to power as it eroded faith in the political system and its ability to balance desires and demands. The early statements and actions of the Biden Administration suggest awareness of this discomfort and willingness to begin addressing it.
  • The events (and Biden’s efforts to overcome them) do not appear likely to significantly change the U.S. relationship with Latin America. The pandemic and other challenges to democracy have placed extraordinary pressure on the region’s leaders, for whom the images of U.S. insurrection may have engendered even a certain empathy. They now know that parliaments and democratic institutions can be illegally occupied; that debate can go horribly awry; that polarization can seriously deepen in any country of the hemisphere.
  • More than the turmoil in Washington, the pandemic and its economic consequences appear likely to influence U.S.-Latin America relations. Joe Biden will probably remain focused on the country’s customary interests in the region – no great changes – although with less belligerence than Donald Trump. China, the other great regional power, will continue to promote its position without big conflicts or stridency. Even if the United States retains its economic edge in Latin America, its problems – and China’s gradual expansion in the region – put Washington on the downward path typical of a great power in decline.

February 11, 2021

* Ilka Treminio Sánchez is the director of La Facultad Latinoamericana de Ciencias Sociales (FLACSO) in Costa Rica, and a lecturer and researcher at the University of Costa Rica, specializing in electoral processes, political behavior, presidential reelection, and Latin American comparative politics.
* Fábio Kerche is a professor at UNIRIO and IESP-UERJ in Rio de Janeiro. He was a CLALS Research Fellow in 2016-2017.
* Esteban De Gori teaches sociology at La Universidad de Buenos Aires and is a researcher at Argentina’s Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET).

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by clalsstaff on February 11, 2021  •  Permalink
Posted in Regional Snapshot, United States
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Posted by clalsstaff on February 11, 2021

https://aulablog.net/2021/02/11/latin-america-impact-of-the-january-6-insurrection-at-the-u-s-capitol/

South American Megacities, Water Scarcity and the Climate Crisis

By Robert Albro*

Drinking water distribution/ MunicipioPinas/ Flickr/ Creative Commons License

Access to fresh water has become a regular flashpoint throughout Latin America, particularly in its largest cities, and threatens to trigger tensions and even war. Sixteen of the region’s 20 largest cities are experiencing water-related “stress,” and three of its largest – Sao Paulo, Lima, and Mexico City – are in danger of running out of water completely in the near future, according to reliable sources.

  • In 1995 World Bank vice president Ismail Serageldin presciently warned that future wars would be fought over water. The 2000 Water War in Cochabamba, Bolivia, kicked off an era of social mobilization around chronic water shortages and control over access to fresh water. Protests against the privatization of water have become common – in Colombia in 2013, Ecuador in 2014, Brazil in 2015, Chile in 2016 and 2019, Peru in 2019, and Mexico in 2020, among others.

Water challenges faced by some of South America’s megacities show that the urban water crisis is a wicked problem with no straightforward solution.

Lima: Peru’s capital is the second largest “desert city” in the world, after Cairo, receiving an average of 0.3 inches of rain annually. The coastal area in which it sits has 62.5 percent of the population but only 1.8 percent of its fresh water. It depends largely on three rivers fed by rapidly shrinking Andean tropical glaciers, reduced by 40 percent since the 1970s. As the glaciers vanish, water stress is expected to become “critical” for the more than 10 million inhabitants of Peru’s capital by 2025. Peripheral barrios are already significantly affected: An estimated 1.5 million of Lima’s residents already lack access to potable water. Shrinking glaciers are expected to dramatically worsen water inequality in many Andean cities, including Quito in Ecuador; Arequipa, Huaraz and Huancayo in Peru; and La Paz-El Alto, Cochabamba, Oruro, Potosí and Sucre in Bolivia.

Sao Paulo: In 2014, the worst draught in 250 years left Latin America’s second largest city less than two weeks away from running out of water, with reserves at 3 percent of capacity. Emergency rationing led to protests, and in 2018 it almost happened again. Brazil has more fresh water than any country on earth, but half is in the Amazon, where only 4 percent of its population lives, and deforestation in the Amazon – a giant water pump – reduces rainfall in Sao Paulo. The city’s watershed is also being deforested, ecologically degraded, and contaminated with large amounts of industrial wastewater. Its freshwater infrastructure is ill-equipped to handle these multiple stressors. Other Brazilian cities, including Rio de Janeiro and Belo Horizonte, face similar problems.

Santiago de Chile: While Santiago currently has adequate water and infrastructure for storage, treatment and distribution, underground aquifers are being depleted faster than they can be replenished, and climate change has introduced a destructive cycle of floods and droughts. The city’s water availability is expected to decline as much as 40 percent this century, and the urban population continues to grow. Oversight bodies have little influence over how water is delivered, compounded by extreme administrative fragmentation and poorly managed participatory reform efforts. High prices and poor service by the city’s privatized water company were a rallying cry of protesters in 2019. Improved water governance, along the lines of what Medellín, Colombia, has achieved, is possible and can dramatically improve water access and quality. But Santiago has much work to do.

In theory Latin America should not be experiencing a water crisis because it has 30 percent of the world’s fresh water but only 8 percent of its population. But it is highly unevenly distributed and concentrated in places where few people live. Glacial melt, deforestation, and inadequate water governance are all factors in why urban water scarcity has become a wicked problem.

  • Adding to the misery, as agricultural economies throughout much of the region collapse as a result of changing climatic conditions, urban in-migration is a continuing challenge. Combine this with poor and neglected infrastructure, unregulated industrial pollution, high levels of freshwater contamination, increasing social contestation around water access and management– and the problem looks daunting. Where Latin America’s urban water crisis is concerned, climate change is neither straightforward nor a stand-alone proposition, but rather part of a complex set of urgent crises that will require especially creative and imaginative problem-solving in the years to come.

February 9, 2021

* Robert Albro is an anthropologist and Research Associate Professor at CLALS.

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by clalsstaff on February 9, 2021  •  Permalink
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Posted by clalsstaff on February 9, 2021

https://aulablog.net/2021/02/09/south-american-megacities-water-scarcity-and-the-climate-crisis/

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