Who Really Benefited from the Commodities Supercycle – and Who Loses with Its End?

By Carlos Monge*

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Latin American governments and business associations have tended to overstate the benefits of extractive industries during the commodities supercycle that ended in 2014-15.  Resource-rich Latin American countries did experience high rates of economic growth and diminished poverty and inequality during the boom years.  On the surface, this would appear to strengthen arguments that – despite their negative environmental impact – extractive industries are the key to progress, especially in resource-rich areas.  Nevertheless, a closer look at data from household surveys in Bolivia, Chile, Colombia, Ecuador, and Peru shows that things are a bit more complicated.

  • The inequality gap between individuals, as measured on the GINI Index, has narrowed, but the gaps between groups of the population have not evolved evenly. For example, the National Resource Governance Institute (of which I’m regional director) recently completed a study of the performance of social indicators during the supercycle that concluded that the poverty gap between urban and rural populations has increased in all countries.  (The report is available in English and Spanish.)  In Peru and Chile, the gap increased more in territories where extractive territories are located, while in Colombia, Bolivia, and Ecuador less so.  The gap between indigenous and non-indigenous populations increased only in extractive territories in Ecuador, decreasing in both extractive and non-extractive settings in the rest of the countries considered.  Regarding gender, in all five countries the gap between men and women increased slightly in non-extractive territories and decreased a bit more in extractive ones.

This report establishes correlations between the increase in extractive activities, the availability of extractive rents, and patterns of inequality reflected in social indicators, but it does not establish a causal relation between such variables.  For example, the data show that urban populations in Peru’s extractive regions have benefited more than rural ones – which some very preliminary research shows is probably because urban centers provide extractive projects with the goods and services they need, while less sophisticated rural areas do not.  At the same time, rural populations have to compete with the extractive projects for those same urban goods and services, and with local governments for the labor force that the public sector contracts to develop infrastructure projects that are paid for through increased revenues delivered by the extractive sector.  This is what we have called the “Cholo Disease.”  A variation of the “Dutch Disease,” it reflects a loss of competitiveness resulting not from large exports of raw materials causing the currency to appreciate, but rather from increases in the cost of labor and of urban goods and services consumed by campesinos.  However, a more definitive explanation regarding exactly how this happens in Peru and in other countries certainly needs further research.

While our data clearly show the impact of mining and hydrocarbons extraction and the resulting expenditure of extractive rents on the poverty gaps between urban and rural populations, men and women, and indigenous and non-indigenous populations, further investigation into the causes and consequences is needed.  The end of the supercycle has already meant a fall in growth rates and extractive revenues, leading to a worrisome rebound in poverty rates.  We are still unable to answer, however, the question of how broadly it will impact the substantial segments of Latin America’s population that emerged from poverty but remains in a vulnerable position – and how it will aggravate poverty gaps among individuals and between groups in extractive and non-extractive territories.

May 16, 2017

* Carlos Monge is Latin America Director at the Natural Resource Governance Institute in Lima.

Latin America: End of “Supercycle” Threatens Reversal of Institutional Reforms

By Carlos Monge*

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By Eduardo Ballón and Raúl Molina (consultores) and Claudia Viale and Carlos Monge (National Resource Governance Institute, América Latina), from Minería y marcos institucionales en la región andina. El superciclo y su legado, o las difíciles relaciones entre políticas de promoción de la inversión minero-hidrocarburífera y las reformas institucionales, Reporte de Investigación preparado por NRGI con colaboración de la GIZ, Lima, Marzo del 2017. See blog text for high-resolution graphic

Policies adopted in response to the end of the “supercycle” have slowed and, in some cases, reversed the reforms that moved the region toward greater decentralization, citizen participation, and environmental protection over the past decade.  Latin American governments of the left and right used the commodities supercycle to drive growth and poverty reduction at an unprecedented pace.  They also undertook institutional reforms aimed at improving governance at large.

  • Even before demand and prices for Latin American energy and minerals began to rise in the early 2000s, some Latin American countries launched processes of decentralization (Colombia and Bolivia); started to institutionalize mechanisms for citizens’ participation in decision making (Colombia and Bolivia); and built progressively stronger environmental management frameworks (Colombia and Ecuador). Peru pressed ahead with decentralization and participation at the start of the supercycle, and when it was in full swing, created a Ministry of the Environment.
  • Implementation of the reforms was subordinated by governments’ overarching goal of fostering investments in the extractive sector. Indigenous consultation rights in Peru, for example, were approved in the second half of 2011, but implementation was delayed a year and limited only to indigenous peoples in the Amazon Basin.  President Ollanta Humala, giving in to the mining lobby, claimed there were no indigenous peoples in the Andes and that no consultations were needed around mining projects.  Local pressure forced a reversal, and by early 2015 four consultation projects on mid-size mining projects were launched.

These reformist policies have suffered setbacks since the decrease in Asia’s and particularly China’s appetite for Latin American energy and minerals has caused prices to fall – and the value of exports, taxes, and royalties, and public incomes along with them.  The latest ECLAC data show a decline in economic growth and a rebound of poverty both in absolute and relative figures.  The gradual fall in the price of minerals starting in 2013 and the abrupt collapse in oil prices by the end of 2015 reversed this generally favorable trend.

The response of the governments of resource-dependent countries has been “race to the bottom” policies, which included steps backward in fiscal, social, and environmental policies.  Governments’ bigger concern has been to foster investments in the new and more adverse circumstances.  In this new scenario, the processes of decentralization, participation, and environmental management have been negatively impacted as local authorities and citizens’ participation – as well as environmental standards and protocols – are perceived by companies and rent-seeking public officials as obstacles to investments.

  • Peru’s Law 30230 in 2014, for example, reduced income tax rates, weakened the oversight capacity of the Ministry of the Environment, and weakened indigenous peoples’ claim public lands.

The correlation between the supercycle years and the progress and regressions in reforms is clear. (click here for high-resolution graphic).  During the supercycle – when huge amounts of money were to be made – companies and government were willing to incorporate the cost of citizen participation, decentralization and environmental standards and protocols.  But now, governments are desperate for new investments to overcome the fall in economic growth and extractive rents, and extractive companies are not willing any more to assume these additional costs.  Those who oppose the “race to the bottom strategy” are fighting hard to restore the reforms and to move ahead with decentralization, increased participation, and enhanced environmental management, to achieve a new democratic governance of the territories and the natural resources they contain.

April 7, 2017

* Carlos Monge is Latin America Director at the Natural Resource Governance Institute in Lima.

Colombia Reconciliation: A Multi-faceted Task

By Christian Wlaschütz *

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Last September, a U.S. delegation addressed conflict victims and ex-combatants in Cartagena, Colombia, as part of a transnational effort to encourage the peace process. Many Colombians are distrustful of the “transnational justice” provisions of the peace accord. / The U.S. State Department / Wikimedia / Public Domain

The term “reconciliation” is now omnipresent in Colombia’s post-conflict strategies – and helps attract tens of millions of dollars in aid – but its meaning is still vague.  The intention is more than rebuilding interpersonal relationships and bringing former enemies together to embrace in public.  Political reconciliation is predominantly about social change, and in Colombia that means mending relations between the state and its citizens.  Pablo de Greiff, a Colombia human rights advocate now serving as a UN Special Rapporteur, highlights the importance of “civic trust,” by which he means the realistic expectation that state actors have to act within the law’s boundaries.

Congressional debate on aspects of the peace accord has already demonstrated broad discord on and aggressive resistance from multiple sectors of society.

  • Causing most tensions are the “transitional justice” and “special jurisdiction” provisions, which deal with allegations of rights abuses by both the FARC and the state. It is the centerpiece of efforts to achieve political reconciliation but is also the most hotly contested.
  • Even more difficult will be overcoming the widespread distrust of citizens toward the political system, as expressed by the huge rates of abstention in momentous decisions such as the peace plebiscite in October (63 percent). This distrust is caused by a sense of a lack of representation, a lack of government efficiency, and, more generally, the perception that political actors lack the will to change a system that suits the needs of a privileged elite.
  • The assassination of dozens of social leaders so far this year further fuels citizen distrust, as it reminds them of the initial phase of the extermination of the Patriotic Union – the last attempt to transform the FARC into a political actor some 30 years ago. The violence has raised questions about the state’s willingness or ability to protect civilians who are committed to social change.  It further fuels fear that the territories evacuated by the FARC will simply be taken by other armed actors.
  • Corruption poses a vexing challenge. The peace accord seems to leave open the possibility that corruption will be within the mandate of the Truth Commission, but the result is unclear.  Corruption gets to the root of the armed conflict and its persistence.  It includes the use, or abuse, of public money for private benefit.  For people in rural areas and those who live in marginalized areas of the major cities peace has simply no tangible meaning when there is no basic health system because the social insurance company collapsed because of the flow of resources into private pockets.  The same applies to education and the public transport system, most notably in Bogotá.

In an almost prophetic intervention at the Congress in late November, Todd Howland, the representative of the UN High Commissioner for Human Rights, stressed the urgency of implementing the peace accord in areas previously controlled by the FARC, where 2 million citizens depend on social investment and measures to increase security in these areas.  In a country characterized by enormous estrangement between the citizens and the state, reconciliation depends on representatives being willing to pursue policies based on people’s needs.  The result of this responsiveness is new trust.

March 28, 2017

Christian Wlaschütz is an independent mediator and international consultant who has lived and worked in Colombia, in particular in conflict zones in the fields of disarmament; demobilization and reintegration; and reconciliation and communitarian peace-building.

2017: Happy New Year in Latin America?

By Eric Hershberg and Fulton Armstrong

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Brazilian President Michel Temer surrounded by members of his party in mid-2016. His government will continue to face questions of legitimacy in 2017. / Valter Campanato / Agência Brasil / Wikimedia / Creative Commons

The year 2016 laid down a series of challenges for Latin America in the new year – not the least of which will be adapting to a radically different administration in Washington.  Last year saw some important achievements, including an elusive peace agreement in Colombia ending the region’s oldest insurgency.  Several countries shifted politically, eroding the “pink tide” that affected much of the region over the past decade or so, but the durability and legitimacy of the ensuing administrations will hinge on their capacity to achieve policy successes that improve the well-being of the citizenry.  The legitimacy of Brazil’s change of government remains highly contested.  Except in Venezuela, where President Maduro clung to power by an ever-fraying thread, the left-leaning ALBA countries remained largely stable, but the hollowing out of democratic institutions in those settings is a cause for legitimate concern.  Across Latin America and the Caribbean, internal challenges, uncertainties in the world economy, and potentially large shifts in U.S. policy make straight-line predictions for 2017 risky.

  • Latin America’s two largest countries are in a tailspin. The full impact of Brazil’s political and economic crises has yet to be fully felt in and outside the country.  President Dilma’s impeachment and continuing revelations of corruption among the new ruling party and its allies have left the continent’s biggest country badly damaged, with profound implications that extend well beyond its borders.  Mexican President Peña Nieto saw his authority steadily diminish throughout the course of the past year, unable to deal with (and by some accounts complicit in) the most fundamental issues of violence, such as the disappearance of 43 students in 2014.  The reform agenda he promised has fizzled, and looking ahead he faces a long period as a lame duck – elections are not scheduled until mid-2018.
  • The “Northern Triangle” of Central America lurches from crisis to crisis. As violence and crime tears his country apart, Honduran President Hernández has devoted his energies to legalizing his efforts to gain a second term as president.  Guatemala’s successful experiment channeling international expertise into strengthening its judicial system’s ability to investigate and prosecute corrupt officials is threatened by a weakening of political resolve to make it work, as elites push back while civil society has lost the momentum that enabled it to bring down the government of President Pérez Molina in 2015.  El Salvador, which has witnessed modest strides forward in dealing with its profound corruption problems, remains wracked with violence, plagued by economic stagnation, and bereft of decisive leadership.
  • Venezuela stands alone in the depth of its regime-threatening crisis, from which the path back to stability and prosperity is neither apparent nor likely. The election of right-leaning governments in Argentina (in late 2015) and Peru (in mid-2016) – with Presidents Macri and Kuczynski – has given rise to expectations of reforms and prosperity, but it’s unclear whether their policies will deliver the sort of change people sought.  Bolivian President Morales, Ecuadoran President Correa, and Nicaraguan President Ortega have satisfied some important popular needs, but they have arrayed the levers of power to thwart opposition challenges and weakened democratic institutional mechanisms.
  • As Cuban President Raúl Castro begins his final year in office next month, the credibility of his government and his successors – who still remain largely in the shadows – will depend in part on whether the party’s hesitant, partial economic reforms manage to overcome persistent stagnation and dissuade the country’s most promising professionals from leaving the island. Haiti’s President-elect Jovenel Moise will take office on February 7 after winning a convincing 55 percent of the vote, but there’s no indication he will be any different from his ineffective predecessors.

However voluble the region’s internal challenges – and how uncertain external demand for Latin American commodities and the interest rates applied to Latin American debt – the policies of incoming U.S. President Donald Trump introduce the greatest unknown variables into any scenarios for 2017.  In the last couple years, President Obama began fulfilling his promise at the 2009 Summit of the Americas in Trinidad and Tobago to “be there as a friend and partner” and seek “engagement … that is based on mutual respect and equality.”  His opening to Cuba was an eloquent expression of the U.S. disposition to update its policies toward the whole region, even while it was not always reflected in its approach to political dynamics in specific Latin American countries.

 Trump’s rhetoric, in contrast, has already undermined efforts to rebuild the image of the United States and convince Latin Americans of the sincerity of Washington’s desire for partnership.  His rejection of the Trans-Pacific Partnership – more categorical than losing candidate Hillary Clinton’s cautious words of skepticism about the accord – has already closed one possible path toward deepened ties with some of the region’s leading, market-oriented economies.  His threat to deport millions of undocumented migrants back to Mexico and Central America, where there is undoubtedly no capacity to handle a large number of returnees, has struck fear in the hearts of vulnerable communities and governments.  The region has survived previous periods of U.S. neglect and aggression in the past, and its strengthened ties with Asia and Europe will help cushion any impacts of shifts in U.S. engagement.  But the now-threatened vision of cooperation has arguably helped drive change of benefit to all.  Insofar as Washington changes gears and Latin Americans throw up their hands in dismay, the region will be thrust into the dilemma of trying to adjust yet again or to set off on its own course as ALBA and others have long espoused.

 January 4, 2017

Local Ownership in Peacebuilding, Colombian style

By Angelika Rettberg*

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“Colombian peace is our American peace.” / urban_lenny / Flickr / Creative Commons

Amid the increased political juggling in Colombia as the government’s peace deal with the Fuerzas Armadas Revolucionarias de Colombia (FARC) has advanced, one key lesson is that the nature of “local ownership” will have an impact on its success or failure. After the razor-thin victory of the agreement’s opponents in the referendum on October 2 propelled the country into uncertainty, its proponents – buttressed by the informal deadline created by the Nobel Peace Prize being awarded to President Juan Manuel Santos on December 10 – tried a different track. Instead of calling for a new referendum, as many expected, the government appears to have learned its lesson about the perils of direct democracy and sent the new agreement to Congress, where it was approved by an undisputed majority in both houses. A Constitutional Court ruling on December 13 gave Congress fast-track authority to approve required changes in the law, paving the way for implementation. Meanwhile, FARC fighters have begun moving toward the more than 20 camps in which complete disarmament is expected to conclude by June 2017.

The country’s shifting approach to the accord has been caused by uneven local ownership. As scholars and practitioners alike underscore, broad participation in transitional countries must be involved in order to achieve sustainable peace. To avoid difficulties such as those experienced by Guatemala, where many felt the agreement was imposed by international actors, societies need to feel that agreements and the resulting commitments have been developed bottom-up, or at least with domestic actors. The Colombian process was touted as one “by Colombians for Colombians.” International participation was intentionally kept to a low profile and key players in the negotiations were all Colombians. But when the results of the October referendum temporarily pushed the country back to square one – “Nada está acordado” – it became clear that local ownership in this case had a broader meaning: Paradoxically, submitting the agreement to the popular will did not cause collective responsibility behind it to surge but rather gave a boost to people’s sense that they had the democratic right to reject the deal altogether. Similarly, despite the actions of Congress and the Constitutional Court, debate on how the agreement will be translated into action is taking place within and among the domestic institutions, including the Presidency, Congress, the courts, and several control organisms.

Colombia’s peace deal has powerfully posed the question not of whether to include popular opinion in peace deals, but how to do so in the most constructive way. The result will be very much a reflection of the Colombian people’s and their institutions’ capabilities to negotiate and establish priorities and to design policy accordingly. After all, peace is a public policy. The Colombian case thus holds many lessons for peacebuilding in general, and for the potential tensions and dilemmas needed to balance peace, majoritarian democracy, public opinion, and justice. The agreement itself may turn into a moving target as different sectors on all sides of the debate seek to steer implementation toward their interests. Regardless of what happens, the quality of “local ownership” will be central to determining the shapes and contents – and the durability – of Colombian peace.

December 22, 2016

* Angelika Rettberg is a Professor of Political Science at La Universidad de los Andes in Bogotá.

Success of the Implementation of the Peace Accord Depends on Real Participation

By Christian Wlaschütz*

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A march for peace in Colombia after the failure of the October 2016 plebiscite. / Leon Hernandez / Flickr / Creative Commons

The same thing that caused the Colombian government to fail to win the plebiscite on its peace agreement with the FARC in October – a deficient understanding of participation – could complicate implementation of the version of the agreement approved by the Congress last week.  Congressional approval on November 30 is occasion for joy and expectation, but it is also a moment for reflection.  That failure was caused not only by disagreements about political participation and justice issues, but also by the government’s consistently deficient understanding of the meaning of participation in its broader sense, beyond politics, and an over-reliance on the desirability of “peace” in the absence of tangible benefits.  Since negotiations began in 2012, several partial accords on issues such as land reform, political participation, and victims were achieved and publicized.  Unlike the negotiations between the government of former President Uribe and the paramilitary groups a decade ago, there was clarity about the process, the results of the specific negotiations, and the way forward.  President Santos’s decision to submit the final accord to a plebiscite, however, changed the public dynamic significantly and revealed several shortcomings in the government’s strategy regarding communication and participation.

  • Participation has been inadequately understood as a space for the public to be informed and to listen – rather than for the government to listen. Massive public events gave the political elite the opportunity to speak about the process, with only a few moments for the listeners to ask questions.  While many written proposals were submitted to the negotiation process, no comment or feedback was ever given.  This one-way communication did not help the public balance the benefits and costs of the peace process, and there was an enormous gap between the informed, mostly urban circles of academics, organized civil society, and other political and economic actors and the people in the urban and rural peripheries of the country.
  • The distance between elites who negotiated “peace” and the very poor living conditions of many people on the ground transformed peace into an abstract term void of tangible significance. Talk of peace dividends lacked a real connection to people’s everyday experience of corruption, deficient state services, and increasing insecurity.  The high abstention rate in the plebiscite – 63 percent –is clear evidence of the disconnect.
  • Indeed, “peace” has remained a distant objective claimed by many generations of Colombians. Since almost nobody has real experience with what peace is like, how it feels and changes life, the motivation to make deals on things such as justice in exchange was limited.  In contrast, terms such as impunity or privileges for criminals have an authentic meaning based on experience, helping the NO campaign discredit the peace accord.

Despite the Congressional approval, enthusiasm for the peace process has waned in comparison to two months ago, when the first version was solemnly signed in Cartagena.  Even though no plebiscite was legally required on either version, the lack of a second plebiscite has left a bitter taste behind – as if the accord were pushed through despite popular rejection.  Also troubling is a wave of assassinations and threats against civil society leaders.  According to the Jesuit Research Center CINEP, 31 leaders have been killed in the last three months; the UN High Commissioner for Human Rights counts 57 assassinations in the course of this year.

The legitimacy and success of implementation of the accord will depend on more authentic participatory methods to plan and implement the politically controversial issues of reintegration, land reform, justice, and the creation of a political party by the FARC.  Real participation – with space for exchange, debate, and the certainty of having a stake in the process – would foster shared responsibility for the successful implementation of the accords.  It would also help the people to grasp the benefits of peace and, therefore, the need to make compromises.  The contents of the accord are sufficiently comprehensive to end the armed conflict; whether or not it also helps to transform a structurally unequal society will depend to a great extent on the way participation is defined.  Only with broad participation will the communities protect and support the peace process.

December 6, 2016

Christian Wlaschütz is an independent mediator and international consultant who has lived and worked in Colombia, in particular in conflict zones in the fields of disarmament; demobilization and reintegration; and reconciliation and communitarian peace-building.

Latin America: Wait-and-See Reaction to Trump – For Now

By Catie Prechtel and Carlos Díaz Barriga*

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An effigy of Donald Trump in Mexico City. / Sequence News Media / Daniel Becerril / Wikimedia / Creative Commons

Most Latin American leaders publicly reacted with caution to Republican presidential candidate Donald Trump’s victory in last week’s U.S. elections, but reactions will sharpen quickly if Trump tries to make his campaign rhetoric about the region and Latino immigrants into policy.  Mexico and Central America showed clear anxiety over the implications for their economies and regional migration pressures.  Some South American presidents expressed mild enthusiasm and voiced hope for a positive relationship with the new administration, although Trump’s avowed opposition to the Trans-Pacific Partnership trade accord – under discussion at the APEC summit in Lima this week – has fueled concerns about the future of free trade.  Fear that the new U.S. President, who takes office on January 20, will deport millions of undocumented migrants from Mexico and Central America and force U.S. firms to shut factories in those countries has seized the media there.

  • Mexican newspapers headlines screamed “Be afraid!” and warned of a “Global shakedown.” Reports recited the many promises Trump had made against Mexico, including his proposal to build a border wall (and make Mexico pay for it); revising NAFTA and raising taxes on Mexican imports, putting conditions on remittances, and charging more for visas. The peso suffered three consecutive days of losses before recovering slightly following interviews by Trump and his team suggesting a softer stand on the wall and free trade.  President Peña Nieto phoned Trump with congratulations and agreed to meet soon to discuss bilateral issues, including presumably the wall.
  • Guatemala’s Prensa Libre reported businessmen are worried Trump’s rejection of free trade could have a direct impact on the economy and described the possible mass deportations as a “social bomb” for the country. In Nicaragua, newspapers speculated that Trump’s victory will give a boost to U.S. legislation, the Nicaragua Investment Conditionality Act (NICA), which calls for economic sanctions if President Daniel Ortega doesn’t take “effective steps” to hold free and fair elections.  In El Salvador, the main concern is the deep economic stresses of mass deportations of Salvadorans in the United States.  Honduras shares those concerns but apparently was more wrapped up in President Juan Orlando Hernández’s announcement confirming his intention to make a controversial bid for reelection.
  • Venezuelan President Nicolas Maduro, often given to bombastic rhetoric, has focused on working with Washington in the closing months of the Obama Administration. In a phone conversation with Secretary of State John Kerry, he stressed the need to establish an agenda with the next administration that favors bilateral relationships, but he specifically called on Obama to “leave office with a message of peace for Venezuela” and rescind a determination that Venezuela is a “threat to the United States.” Obama himself last April said the designation was exaggerated.
  • Media in Colombia speculated that Trump will be less committed to aid and support for finalizing and implementing a peace accord with the FARC. Argentina, Brazil, and Chile offered calm reactions to the news.  For Buenos Aires and Santiago, the biggest concern was potentially strained commercial relationships and free trade agreements with the United States, according to press reports.  Brazil offered little reaction to the news, but Trump’s win brought four consecutive days of losses for the real – weakening 7.6 percent since the election.

The political leaders’ cautious reactions conceal a broad and deep rejection for President-elect Trump’s values and intentions as he stated them during the campaign.  Former Mexican President Vicente Fox once again tweeted his disapproval for Trump, while José Mujica, former President of Uruguay, expressed dismay on Twitter, summing up the situation in one word: “Help!”  Press reports and anecdotal information indicate, moreover, that large segments of Latin American society have shown a widespread distaste for Trump’s win.  Their general wait-and-see attitude will end when and if Trump proves himself the unpredictable and reactionary he seemed on the campaign trail.  Latin American leaders have a lot of work ahead as they navigate a new relationship with the United States.

November 15, 2016

* Catie Prechtel and Carlos Díaz Barriga are CLALS Graduate Assistants.

Colombia: University Professors Appeal for post-Referendum Solution

By Eric Hershberg and Fulton Armstrong

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At a march for peace in Bogotá, Colombia, a woman holds a sign that states, “We are the generation of peace.” / Agencia Prensa Rural / Flickr / Creative Commons

A group of Colombian university professors have organized an appeal to their colleagues in and outside the country to sign a petition “requesting an effective solution without delay” to overcome the impasse created by rejection of the peace accord on October 2.  The text of the petition, which currently has more than 1,700 cosigners, is as follows:

[We] university professors, from different disciplines, universities, and regions, join our voices with those underscoring the urgent need to reach, as soon as possible, a final Accord to end the conflict with the FARC.  Delay poses enormous risks.  It is essential to set, with all urgency, an agenda for talks limited to points requiring discussion, with concrete and viable proposals for modifying the existing text.  Reflecting the extremely close results in the October 2 plebiscite, the agenda should address the concerns of the No voters, who won the vote, while respecting the voice of the equally numerous Yes voters, who supported a text that cannot be wholly reevaluated, as well as those who did not speak at the polls.

The result of the plebiscite on Sunday [2 October] provides the unique opportunity to adjust the existing Accord in a way that draws a majority of society.  Capitalizing on that opportunity is the responsibility of all sides:  the FARC, the representatives of No, and those of Yes.  The plebiscite leaves no doubt – and the mobilizations in the streets and social media confirm – that society demands that all be flexible in their positions.  That’s what the youth demand as they convoke marches and other actions to push a quick Agreement, and which we support without hesitation.

The professors are an important voice of society and, as the statement explicitly states, of young people throughout the country who aspire to have a peaceful future.  The statement dodges specifics on what needs to be changed in the accord, but its assumption that sufficient pressure can be brought on all parties, including those who opposed the accord, to find common ground is credible.  Appeals such as this – unprecedented in the sheer number as well as in the wide range of institutions, disciplines, and regions that are represented – will be a good test of the capacity of Colombian civil society, such as the Academy, to push compromise, and for others, such as the economic elites, to achieve compromise.  Agreement may emerge, for example, to move discussion of certain social issues, such as those that riled some religious groups, into another venue so they aren’t an obstacle to agreement on war-and-peace issues.  The professors have their finger on the pulse of the nation and grasp the underlying political, economic, and social drivers of peace – and their optimism that neither side will come to a new negotiating table with dealbreakers is probably more warranted than anyone else’s.

Click here to see the original Spanish version of the petition.

October 14, 2016

What does “Canada is back” mean in the Americas?

By Stephen Baranyi*

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Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau during the “Tres Amigos Summit” in Ottawa, June 2016. / Presidencia de la República Mexicana / Flickr / Creative Commons

Canadian Prime Minster Justin Trudeau and his cabinet ministers’ statements following their election in October 2015 that “Canada is back” reflect a global strategy that is likely to give a boost to Canada-Latin America relations.  Canada never “left” the Americas during the decade of Conservative governments led by Prime Minister Harper, but the new administration is patching up its predecessors’ mixed record.  Building on the Americas Strategy launched in 2007, Ottawa signed new bilateral free trade agreements with Colombia, Peru and others; broadened its engagement in regional security affairs; and greatly increased its whole-of-government engagement in Haiti.  Canada played a major role at the Summit of the Americas in Panama (April 2015) and hosted the Pan American Games (July 2015).  Yet the revelation of Canada’s espionage in Brazil, visa restrictions on Mexicans, the poor reputation of some Canadian mining firms in the region, and its inability to reach a trade agreement with the Caribbean Community fed a growing desencanto in Canada’s relations with the region.

Through mandate letters issued to ministers in late 2015, the Trudeau government made clear that the Americas would remain an important priority, despite renewed emphasis on Asia and Africa, and that inclusive growth, the responsible governance of Canadian extractive activities abroad, and women’s and indigenous peoples’ rights would get emphasis in the region.  In June, Canada hosted the “Tres Amigos Summit” with NAFTA partners United States and Mexico.  Ottawa also announced that by December, Mexican citizens would no longer need visas to enter Canada, removing a big irritant in Canada-Mexico relations.  The government reaffirmed its partnership with Colombia by indicating its desire to make bilateral free trade more inclusive and announcing projects to support the implementation of peace accords.

  • Ottawa has opportunities for deeper involvement in these countries. In Mexico, Canadian interests will be served through a better balance between pursuing economic opportunities in sectors like petroleum and supporting Mexicans struggling to strengthen rule of law in a system compromised by corruption.  Colombia also requires a sophisticated whole-of-Canada engagement strategy, particularly since the failure of its referendum on the peace accords on Sunday.  Ottawa has signaled interest in continuing to support the rule of law and broader development in Haiti, but Trudeau’s ability to justify large expenditures there will depend on the completion of legitimate elections by February 2017.

Ottawa’s appointment of a new Ambassador to the Organization of American States (OAS) and commitment to revitalizing it as “the premier multilateral organization of the Americas” points to broader engagement on a regional level.  The Trudeau administration could join the Latin American and Caribbean trend on drug policy by decriminalizing the sale of marijuana at home and supporting reforms to OAS and UN counterdrug programs.  Assisting the implementation of the UN Small Arms Treaty, which Ottawa is poised to ratify, could also contribute to rule of law and security in the Americas.  Canada will also find many partners (from Chile to Costa Rica) to promote gender equality.  With regard to First Nations, Ottawa may be tempted to focus on funding new aid projects; yet Canada’s credibility will remain suspect until it ratifies the American Convention on Human Rights and ensures that all Canadian mining firms respect the rights of indigenous communities to free and prior informed consent in large-scale extractive activities.  The Trudeau government will probably monitor the multi-dimensional crisis in Venezuela, the situation in Brazil, and other challenges in the region – over which it probably lacks the leverage to make a significant difference but can lend moral authority to solutions.  Given its clear commitment to a global, rather than regional, strategy, the current administration is wise to carefully select entry points on which its thematic priorities align with opportunities in particular countries.

October 5, 2016

* Stephen Baranyi is an Associate Professor at the University of Ottawa’s School of International Development and Global Studies.  He also chairs the Latin America and Caribbean Group (LACG) of the Canadian International Council.  The author acknowledges his LACG colleagues’ input into this blog, while taking responsibility for its limitations.

Colombia: Peace by Pieces

By Angelika Rettberg*

colombiapaz

Photo Credit: Government of Venezuela / Public Domain.

Despite challenges ahead, the Colombian state’s confrontation with one of the longest active revolutionary groups in the Western Hemisphere appears likely to reach closure by December.  As Colombian writer Héctor Abad has said, the peace agreement preliminary signed on August 24 is long, imprecise, often ambiguous, and tedious – certainly not a piece of entertaining literature – but it is the most eagerly awaited, downloaded, shared, and controversial official document in recent Colombian history.  The signatures of Colombian President Santos and FARC leader “Timochenko” are still pending, as is the result of a national plebiscite, to be held on October 2.

  • Humberto de la Calle, the government’s chief negotiator, defined the agreement as the “best possible” – a lukewarm description that fits well a process that has been rather anti-climactic. President Santos, who started the peace process and staked his reelection (which he barely won) on it two years ago, was more emotional and said, “Today, August 24th, we can say that hope has become reality.”
  • The agreement has already made permanent a cease-fire between the two sides. FARC fighters have begun to gather in the areas in which they will hand in their weapons and await the initiation of transitional justice proceedings.

Even if “yes” wins in the upcoming plebiscite – as surveys now predict – this peace by pieces presents challenges.  The accord has accomplished more than any Colombian process before and, by many normative international and academic standards, has been better designed and more professionally negotiated than any other Colombian accord.  It does not seem, however, to awaken most Colombians’ enthusiasm.  A generalized apathy or, in many cases, open disapproval of the negotiations can be linked to the absence of a sense of conflict-related crisis, especially in urban areas, where there has been a steady decline in battle-related casualties for years.  In addition, as the World Bank and international media have reported, Colombia’s economic performance has been steadily improving.  No longer the Andean problem case, Colombia is now a preferred destination for international investment in Latin America.  The “paradox of plenty, Colombian style” – success in promoting security and investment amid conflict resulting – has ended up eroding support of peace negotiations.

International support for several peace-building tasks will not translate into enormous amounts of desperately needed resources.  FARC demobilization, victims’ reparations, and addressing the needs of the most conflict-affected regions of the country will carry a big price tag for years to come.  Most economic and political resources for implementing the agreements will need to be raised domestically, and local authorities and communities will be increasingly reluctant to prioritize the needs of conflict-related social groups.  In addition, much needed fiscal reform will further affect political support for the government.  A core group of economic elites have backed negotiations unconditionally and have been well represented at the table.  However, the costs and vagaries of the implementation process will strain the support of peace´s crucial allies.  In this context, it will be difficult for any leading candidate to fully endorse the agreements in the upcoming presidential election of 2018.  Considering these limitations, not only the peace agreement, but also the resulting change, may only be “the best possible.”

September 7, 2016

* Angelika Rettberg is Associate Professor in the Political Science Department, Universidad de los Andes, in Bogotá.