By John Polga-Hecimovich*
Presidential candidate Guillermo Lasso (center, blue shirt) in Cuenca, Ecuador during a campaign rally last month. / Samurai Juan / Flickr / Creative Commons
General elections on Sunday could mark the beginning of the end of an impressive period of stability in Ecuador. Ecuadorians will elect a new congress and a replacement for the powerful and populist Rafael Correa, the longest-serving chief executive in the country’s history. Although the president’s handpicked successor, ex-Vice President Lenín Moreno is leading public opinion polls with 32 percent of likely voters in a crowded eight-candidate field, the chances of him winning a first-round victory outright are slim. Public approval of Correa and his ruling Alianza PAIS (AP) has fallen over the past two years as economic growth has slowed, and the administration is embroiled in allegations of corruption, including those against Jorge Glas Espinel, incumbent vice-president and Moreno’s running mate. Given Ecuador’s two-round presidential system, in which candidates must win by 10 percent or gain 40 percent of the vote, Moreno probably will end up in a run-off election on April 2.
- The other seven candidates are vying for the chance to face Moreno in the second round. Three of them poll between 8 and 21 percent, and the rest appear to have 4 percent or less of the vote. However, rejection of the entire field is high – nearly 12 percent of respondents say they will cast a null vote – and a whopping 35 percent maintain that they are undecided.
Moreno does not appear likely to win the runoff. The Economist Intelligence Unit predicts that voters will coalesce around an opposition candidate – most likely the CREO movement’s Guillermo Lasso, a conservative former economy minister and banker who ran a distant second to Correa in the 2013 presidential race – who would then defeat Moreno.
- If Moreno and Glas win, they will likely continue Correa’s leftist “Citizens’ Revolution,” especially its improvements to social welfare and emphasis on science and technology, and maintain close ties with China, which has become a key partner in trade and infrastructure investment over the past decade. If the opposition wins, it will try to repeal some of Correa’s onerous taxes, reverse stringent regulation of the media, shrink the size of the state, and seek improved relations with the U.S.
Regardless of who wins, the fragmented support for the candidates and their parties bodes poorly for Ecuador’s political stability, especially in the context of fiscal constraints, a stagnant economy, and burden of recovery from last April’s 7.8-magnitude earthquake. The so-called muerte cruzada (mutual death) in Article 148 of the country’s 2008 Constitution, moreover, will loom larger under a divided government. This clause gives the president a political “nuclear option” to dissolve the National Assembly in the event of gridlock, triggering new legislative and presidential elections – while the incumbent president is allowed to rule by decree on urgent economic matters in the interim. Correa, who enjoyed majority or near-majority government throughout his unprecedented ten-year presidency, never invoked the muerte cruzada, but his successor will feel stronger temptation to dissolve the Assembly in order to govern unilaterally. Ecuadorians should brace for an end to the country’s unprecedented political stability – and for the specter of Correa, much like the possibility of muerte cruzada, to loom large over the new government’s economic and political decisions.
February 17, 2017
* John Polga-Hecimovich is an Assistant Professor of Political Science at the U.S. Naval Academy. The views expressed in this article are solely those of the author and do not represent the views of or endorsement by the Naval Academy, the Department of the Navy, the Department of Defense, or the U.S. government.
Posted by clalsstaff on February 17, 2017
By Carlos Malamud*
Chilean President Michelle Bachelet with the leaders of her coalition, Nueva Mayoría. The Chilean presidential election of 2017 will determine the legacy of the Nueva Mayoría. / Gobierno de Chile / Flickr / Creative Commons
The new year will be an intense one for Latin American elections. Although perhaps not as important as those taking place in 2018, this year’s elections will have a significant impact on the countries holding them and, in some cases, the region as a whole.
- In Ecuador’s presidential and legislative elections on February 19, the PAIS Alliance will run a slate of nominees for the first time without Rafael Correa heading its slate. The President said he’s stepping down for family reasons, but Ecuador’s economic problems, aggravated by the decline in oil prices, apparently convinced him to seal his legacy on a high note now rather than end his time in office in defeat. The party’s presidential candidate, former Vice President Lenin Moreno, has a 10-point lead in polls over his closest competitor and has the advantage of facing an opposition divided among seven candidates, but his leadership remains uncertain.
- In Mexico, the state governors of México, Nayarit, and Coahuila and mayor of Veracruz are up for election on June 4. The race in México state will measure the popular backing of the four parties in contention – PRI, PAN, PRD, and López Obrador’s new Movimiento Regeneración Nacional (Morena) – in the 2018 presidential election. The older parties will begin to weed out the weaker pre-candidates.
- Elections for half of the Argentine Congress and a third of its Senate in October will define the second half of President Mauricio Macri’s presidency. The government is confident that economic recovery will strengthen its election prospects. A weak showing will strengthen the Peronista opposition and complicate Macri’s agenda. The Peronistas are currently divided into three big factions – that of Sergio Massa; the “orthodox” wing headed by some provincial governors, and corruption-plagued Kircherismo grouping headed by former President Cristina Fernández. Open, simultaneous, and obligatory primaries (known by the Spanish acronym PASO) in August will be an important test for all.
- Chile will elect a successor to President Michelle Bachelet on November 19. Primaries in July will reveal whether the country’s two big coalitions – the center-left (including the President’s Nueva Mayoría) and the center-right – are holding, as well as the presidential candidates’ identity. The names of former Presidents Sebastián Piñera and Ricardo Lagos are in the air, but it’s too early to know how things will play out in the environment of growing popular disaffection with politics and politicians.
- Honduras will hold elections on November 26. Due to a Supreme Court decision permitting reelection, incumbent President Juan Orlando Hernández could face a challenge from ex-President Manuel “Mel” Zelaya, who was removed from office by the Army in June 2009, running as head of the Libertad y Refundación (Libre) Party.
- Also in November, Bolivia will elect members of various high courts, including the Constitutional, Supreme, and Agro-Environmental Tribunals and the Magistracy Council. These elections will reveal the support President Evo Morales will have as he tries to reform the Constitution to allow himself to run for yet another term in office.
These elections in 2017 have a heavy national component but will shed light on the region’s future direction. The success or failure of the populist projects in Ecuador and Honduras, or of President Bachelet’s Nueva Mayoría in Chile, will tell us where we are and, above all, help us discern where we’re headed.
January 17, 2017
*Carlos Malamud is Senior Analyst for Latin America at the Elcano Royal Institute, and Professor of Latin American History at the Universidad Nacional de Educación a Distancia (UNED), Madrid. This article was originally published in Infolatam.
Posted by clalsstaff on January 17, 2017
By Eric Hershberg and Fulton Armstrong
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
Posted by clalsstaff on January 4, 2017
By Catie Prechtel and Carlos Díaz Barriga*
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.
Posted by clalsstaff on November 15, 2016
By Eric Hershberg
Thousands of protesters in Maracaibo, Venezuela. Photo Credit: Google Images / Creative Commons
2016 is proving to be this century’s most complicated year to date for South American political systems, and the coming months will be critical to assessing how well the region’s democracies can govern amid declining economic conditions and spiraling corruption scandals. Brazil and Venezuela – two very different systems with very different problems – are suffering the most visible crises.
- In Venezuela, where the Bolivarian project has descended into an incompetent Putinism in the tropics, is collapsing under the weight of monumental mismanagement of the economy. Many of the ills of the Venezuelan petrostate predate Chavismo, but during a collapse in oil prices President Maduro has doubled-down on profligate economic policies introduced by Hugo Chávez, bringing the country to catastrophe made worse by increasingly draconian repression of loyal and disloyal opposition alike.
- President Dilma Rousseff’s mismanagement of coalitions in a presidential system predicated on coalition-building has opened the way to political and economic implosion in Brazil. Contrary to the fervent assertions of important segments of the Workers Party (PT), her impeachment does not precisely constitute a coup, but it may indeed amount to an ill-advised bending of institutional mechanisms by cynical legislators and aggressive judges, egged on by rightist sectors whose commitment to democracy is in fact dubious. Dilma didn’t invent the corruption and footloose budgetary practices that have been her undoing, but her fall does respond to overwhelming popular rejection of her performance. Interim President Temer’s appointment of an entirely white male cabinet that includes representatives of some of the country’s most retrograde interests suggests abandonment of many of the most laudable achievements of more than a decade under PT rule – and more backlash as well.
Other institutional crises may be on the horizon. Ecuadoran President Rafael Correa pursued a high-risk strategy of debt-driven expansion of the state, which is not sustainable amid economic contraction. Argentine President Mauricio Macri’s honeymoon may prove short-lived. Much-needed economic reforms are likely to provoke even greater inflation and have already stoked resistance from the Peronist opposition. Macri enjoys some unprecedented assets – for the first time non-Peronists also control the city and province of Buenos Aires– but Argentine public opinion overwhelmingly favors statist economic policies that he aims to dismantle, and no non-Peronist elected president has completed his term in office since the rise of Peronism as a political force. Chilean President Michelle Bachelet, wounded by a drop in mineral export revenues and comparatively minor corruption allegations involving her daughter-in-law, reshuffled her cabinet earlier this month but continues to tank in the polls. Latinobarómetro reports that 70 percent of Chileans believe their political system doesn’t work.
It’s not hard to envision other relatively stable South American democracies facing hard times ahead. The June 5 presidential runoff in Peru could leave the country deeply polarized, especially if Keiko Fujimori, heiress to the country’s darkest episode in recent history, wins. It is not a foregone conclusion that Colombian President Juan Manuel Santos, who has staked his second term on a long-awaited and much-needed peace accord, will secure its ratification, risking lameduck status for the remainder of his administration. If the presidents elsewhere appear to be weathering the storm, democratic governance nonetheless faces important challenges. It would be rash to predict that democracy will fail the test – and that such failure will give rise to a new era of authoritarian rule – but it’s clear that the region will witness widespread instability during the coming years.
May 26, 2016
Posted by clalsstaff on May 26, 2016
By Emma Fawcett* and Fulton Armstrong
Photo Credit: Pixabay / CC0 Public Domain
The “Panama Papers” have revealed the reputed secret accounts and tax-evasion strategies of a number of Latin American leaders, but preexisting widespread perceptions that political and economic elites are corrupt may reduce the immediate shock value of the revelations. More than 11 million documents leaked from the Panama-based law firm Mossack Fonseca – given an initial review by the Süddeutsche Zeitung and International Consortium of Investigative Journalists (ICIJ) – provide evidence of 215,000 arrangements by which 14,153 powerful and wealthy clients from around the world hid their money from the prying eyes of the media, tax collectors, and public-accountability experts. Early reports already indicate Latin Americans – small-time players compared to the Russians and some Europeans – are among those mentioned.
- The Petrobras scandal that has paralyzed Brazil will find further fuel in these files. Investigators in Operation Car Wash apparently had no knowledge of many accounts held by Petrobras officials. A secret company linked to House Speaker Eduardo Cunha, who’s leading the charge to impeach President Rousseff, reportedly figures prominently.
- Argentine President Macri, his father, and brother reportedly had an offshore company for 10 years. They closed it in 2009, two years into Macri’s term as Buenos Aires mayor, but he did not report it. The government says he was only “circumstantially” the CEO.
- The president of the Chilean branch of Transparency International, Gonzalo Delaveau, resigned because he was linked to at least five offshore companies.
- Mexican President Peña Nieto’s association with tycoon-contractor Juan Armando Hinojosa, who reportedly had a massive array of shelters worth US$100 million, is once again a liability. The President was dragged through the mud – and eventually exonerated of personal involvement – over a mansion that Hinojosa allegedly gave to his wife. The Mexican government is investigating several dozen others named in the documents.
- Many other cases are in the wings. Pedro Delgado (former governor of Ecuadorian Central Bank and cousin of President Correa); financial backers of Peruvian Presidential candidate Keiko Fujimori; and an array of former central bank and intelligence officials – Peruvians, Venezuelans, Panamanians, and others – are all being looked at. In El Salvador, the Attorney General, already criticized for his investigative zeal, has raided Mossack Fonseca’s offices, suggesting more revelations to come.
Allegations of tax evasion, hidden income, and other forms of corruption are a mainstay of Latin American political life – and the Panama revelations will only aggravate the oft-held opinion that rich, powerful people play by their own rules to maintain wealth and power. Ramón Fonseca, one of the founders of the law firm, claims that the publicity is part of “an international campaign against privacy,” which he called “a sacred human right [and] there are people in the world who do not understand that.” The backlash against someone like Argentine President Macri may not be too great, especially because his family ended the tax haven years ago. But what makes the allegations potentially disruptive is the number of people implicated – across public and private sectors – in so many countries, in an investigation that has only just begun. Further revelations are sure to come and, although themselves a sign of transparency, challenge people’s faith that leaders will come clean. The revelations will fuel popular cynicism and discontent in the short term, but renewed demands for transparency may eventually help rekindle popular confidence in government.
April 11, 2016
*Emma Fawcett is a PhD candidate in International Relations at American University. Her doctoral thesis focuses on the political economy of tourism and development in four Caribbean case studies: Haiti, Dominican Republic, Cuba, and the Mexican Caribbean.
Posted by clalsstaff on April 11, 2016
By Thomas Andrew O’Keefe*
Photo Credit: Josué Goge / Flickr / Creative Commons
The sharp drop in global oil prices – caused by a combination of a slowing Chinese economy hurting commodities sales and efforts by Saudi Arabia to retain market share – has both downsides and advantages for Latin America and the Caribbean. By keeping production levels steady, despite decreased demand, so that a barrel of crude remains below US$40, the Saudis’ hope is to put U.S. shale oil producers and Canadian tar sands producers out of business. The drop in oil prices has had a varied impact elsewhere in the Americas:
- The effect in Venezuela, already reeling from over a decade of economic mismanagement, has been catastrophic. The ripple effect is being felt in those Caribbean and Central American countries that grew to depend on PetroCaribe’s generous repayment terms for oil imports that allowed savings to be used for other needs. In 2015, for example, this alternative funding mechanism in Belize was slashed in half from the previous year. The threat of interest rate hikes on money that must eventually be repaid for oil imports also pushed the Dominican Republic and Jamaica to use funds raised on international capital markets to reduce their debt overhang with Venezuela. (For those weening themselves off PetroCaribe dependency, however, the lower prices are a silver lining.)
- Low oil prices have also knocked the wind out of Mexico’s heady plans to overhaul its petroleum sector by encouraging more domestic and foreign private-sector investment.
- In South America, the decline has undermined Rafael Correa’s popularity in Ecuador because the government has been forced to implement austerity measures. The Colombian state petroleum company, Ecopetrol, will likely have to declare a loss for 2015, the first time since the public trading of its shares began nine years ago. In Brazil, heavily indebted Petrobras has seen share prices plummet 90 percent since 2008, although that is as much the result of the company being at the center of a massive corruption scandal that has discredited the country’s political class.
- On the other hand, lower petroleum prices have benefitted net energy importers such as Chile, Costa Rica, Paraguay, and Uruguay.
The one major oil producer in the Americas that has not cut back on production and new investment is Argentina – in part because consumers are subsidizing production and investment by the state petroleum firm YPF, which was renationalized in 2012 and now dominates domestic end sales of petroleum products. Prices at the pump remain well above real market values. While successive Argentine governments froze energy prices following the 2001-02 implosion of the Argentine economy, this time policy is keeping some energy prices high. This encourages conservation and efficiency and spurs greater use of renewable alternatives, but it becomes unsustainable during a prolonged dip because it will, among other things, make the country’s manufacturers uncompetitive. The Argentine example underscores that predictions of a pendulum shift in Latin America in favor of private-sector investment in the hydrocarbons sector over state oil production are still premature.
The lower prices do not appear likely to harm the region’s continuing substitution of natural gas for coal and oil as a transitional fossil fuel to greener sources of energy. Natural gas prices remain at their lowest levels in over a decade, and the expansion of liquefied natural gas plants allows for easier transport of natural gas to markets around the world. They are also unlikely to dent the global shift to greater reliance on renewable energy resources driven by the international consensus that climate change can no longer be ignored and something must be done to address it. At the UN climate change talks in Paris last December, for example, countries agreed to keep temperature increases “well below” 2 degrees centigrade above pre-industrial levels and made a specific commitment “to pursue efforts” to achieve the much more ambitious target of limiting warming to no more than 1.5 degrees centigrade. The year 2015 was the second consecutive year in which energy-related carbon emissions remained flat in spite of 3 percent economic growth in both years.
March 24, 2016
*The author is the President of San Francisco-based Mercosur Consulting Group, Ltd. He chaired the Western Hemisphere Area Studies program at the U.S. State Department’s Foreign Service Institute between July 2011 and November 2015.
Posted by clalsstaff on March 24, 2016
By Eric Hershberg and Fulton Armstrong
Photo Credits: Douglas Fernandes and _Butte_ / Flickr / Creative Commons
Argentine President-elect Mauricio Macri’s actions since his historic victory last week indicate a rightward shift in domestic and foreign policy that some observers are tempted to proclaim as part of a broader Latin American trend. He has reiterated promises of broad economic reforms and appointed a cabinet – including former JP Morgan executive and ex-Central Bank chief Alfonso Prat-Gay as his finance minister – to implement them. He has further pledged to reverse outgoing President Fernández de Kirchner’s protectionist trade policies. (During the campaign, advocates of unbound capitalism cheered when he named Ayn Rand’s “The Fountainhead” as one of his favorite books.) Macri has named Susana Malcorra, a senior aide to UN Secretary General Ban Ki-moon with strong diplomatic credentials, to be his foreign minister and, for starters, directed her to reverse policies he judged to coddle Venezuela. The President-elect, who takes office on December 10, is speaking with the confidence of a President elected with more than a 3-point margin over Kirchnerista candidate Daniel Scioli and with control over more than the 91 seats (one third of the total 257 seats) that his Cambiemos coalition won in the lower house of Congress. (His party is the first, however, to control simultaneously the Province of Buenos Aires, the City of Buenos Aires, and presidency.)
The temptation in some quarters to declare Macri’s victory as the beginning of the end for Latin America’s “Left Turns” is understandable but nonetheless premature. To be sure, the Argentine electoral results coincide with other major setbacks for various currents of the Latin American left: The Chavista project in Venezuela is crashing; Brazilian President Rousseff and her party are mired in a corruption morass and economic crisis whose combined effects may cut short her time in office; President Correa, facing a dire economic situation in Ecuador, is increasingly talking about abandoning efforts to run yet again in 2017. Chilean President Bachelet’s low popularity and declining public support for the Vázquez government in Uruguay may be additional signs that the prospects for the “pink tide” are very much in doubt.
But in Argentina and beyond, the jury is still out. Through no action of its own, the South American left enjoyed the multiple benefits of the decade-long commodity boom that began in 2003. Just as its electoral successes did not indicate wholesale shifts to the left in the region – indeed political scientists have long questioned whether the evidence supports claims of a leftward shift in popular preferences – today’s parallel crises may reflect the end of of the boom rather than a rejection of left-leaning governments. Many of the policies advanced by various currents of the “pink tide” may remain highly popular, even while they are no longer affordable. Another tempting explanation is that Latin Americans are rejecting leaders who they perceive as corrupt, irrespective of their placement on the left-right spectrum. In Argentina, notably, Macri hasn’t rejected the Kirchneristas’ redistributive agenda but has instead emphasized the confusing, corrupt way it has been pursued for the past 12 years. (Never before has an Argentine rightist portrayed eliminating poverty as a core priority.) It may well be that voters understand economic slowdowns and dysfunction as a product of corruption rather than the fallout from declines in historically high commodity prices.
Regardless of the underlying drivers of electoral change and public disillusion with incumbents, it’s fair to ask if the left’s current travails and the right’s resurgence will open the way toward more accountable political leadership, whatever its ideological proclivities, or just signal an alternation of power. Like Macri in Argentina, a new cohort of Latin American leaders will have to prove that they are more than outsiders drawing on sentiment to throw out the incumbent rascals. The question is whether they pursue policies that make democracy more transparent, expand meaningful political participation, and sustain the social gains that have been achieved by the pink tide governments that now appear to be on the ropes.
December 2, 2015
Posted by clalsstaff on December 2, 2015
By Catherine Conaghan*
Photo Credit: Thierry Ehrmann / Flickr / Creative Commons
What seemed like a certainty less than a year ago – Ecuadorian President Rafael Correa as a shoo-in for reelection in 2017 – now has given way to competing scenarios as the country’s economic crisis deepens. The game-changer has been the collapse in revenues from Ecuador’s principal export: petroleum. With prices for Ecuadorian crude hovering 50 percent below their 2014 average, Correa has had little choice but to slash the abundant government spending that has been the hallmark of his presidency. Ecuador’s use of the U.S. dollar greatly handicaps its capacity to adjust. Further aggravating the recession is the economic downturn of Ecuador’s principal external lender, China. Over $2 billion have been cut from the 2015 budget, and plans to shrink the size of the public bureaucracy are now under way. His decision in April to suspend the central government’s obligatory payments to the national social security system stoked anxiety about the fund’s future, and an announcement in June of plans to hike taxes on inheritance and real estate transactions sparked street demonstrations around the country. Indigenous and labor organizations mobilized in mid-August to protest these and other aspects of Correa’s style of governing. An estimated crowd of 100,000 people marched in Quito. Scores of protestors were detained and face charges related to the August mobilizations.
The months ahead will not be easy for a president accustomed to buoyant budgets and strong polls. As one of Latin America’s left-turn leaders, he pushed a state-centric economic model under which poverty declined and the middle class grew. His approval ratings since he took office in 2007 consistently scored among the highest of any Latin American president. (They dipped below 50 percent – as low as 42 percent – for the first time in 2015.) While Correa waxes and wanes on whether he really will pursue reelection, his party is pushing to amend the Constitution through legislation – without a referendum supported by over 80 percent of the public – to allow him a third term. The opposition strenuously opposes the move. The National Assembly appears headed toward a final vote on the matter in December.
From now until December, the reelection maneuvering and two possible outcomes will dominate conversations. Under one scenario, Correa and Alianza País will push ahead with the amendment, ignoring negative public reaction and repressing protests if necessary, and Correa will decide on his candidacy depending on his view of the economy and the state of the opposition. In a second and perhaps less likely scenario, Correa and his party may just abandon the reelection plan, concluding that the political costs are just too high. This would set off power struggles within Alianza País over who would head the ticket. Among the prospective frontrunners are former Vice President Lenín Moreno, current Vice President Jorge Glas, Production Minister (and former Ambassador to the United States) Nathalie Cely, and former Industry Minister-turned-critic Ramiro González. In the process, Correa will be looking to anoint someone loyal and capable of governing the country until he can return as a candidate in 2021. Under both of these scenarios, Ecuador is bracing for a volatile year ahead. Natural disasters – a possible volcanic eruption of Mount Cotopaxi and El Niño – could also fuel uncertainty, giving Correa a chance to shine and rally, or to fail and deepen doubts about his leadership. After eight years of relative political stability and economic good times, Ecuadorians are pondering whether a post-Correa era could be at hand and what it would mean.
September 8, 2015
* Catherine Conaghan is the Sir Edward Peacock Professor of Latin American Politics at Canada’s Queen’s University and a former CLALS Research Fellow.
Posted by clalsstaff on September 8, 2015