Brazil: Far-Right Foreign Policy Ahead?

By Gilberto M. A. Rodrigues*

John Bolton and Jair Bolsonaro

U.S. National Security Advisor John Bolton (left) and Brazilian President-elect Jair Bolsonaro (right). / Prensa Latina / Creative Commons

Brazilian President-elect Jair Bolsonaro appears to be moving ahead with promises to steer the country’s foreign policy in the direction of his own far-right ideology.  He has accused the Workers’ Party (PT) of former President Lula da Silva (2003-10) and Dilma Rousseff (2011-16) of pursuing a foreign policy with a partisan left-wing ideology, and now he wants to “liberate” Itamaraty, the Ministry of Foreign Affairs, from what he considers an inappropriate ideological bias.

  • Bolsonaro says that President Trump is his inspiration, his “model” of leadership, and he has made policy coordination with Washington a priority. After a congratulations call to Bolsonaro, Trump tweeted that he and the president-elect “agreed that Brazil and the United States will work closely together on Trade, Military and everything else!  Excellent call, wished him congrats!”  Bolsonaro met last week with Trump’s National Security Adviser, John Bolton, to discuss joint efforts to achieve regime change in Cuba and Venezuela, among other topics.
  • Even before that, Bolsonaro had ramped up his already strong rhetoric against Venezuelan President Nicolás Maduro and reversed a long-standing policy of cooperation with Cuba, taking aim first at the 8,300 Cuban doctors in Brazil’s Mais Medicos. “We can’t allow Cuban slaves in Brazil,” he said, “And we can’t keep feeding the Cuban dictatorship.”  Havana began withdrawing the doctors before Bolsonaro could expel them.
  • Bolsonaro has barely mentioned UNASUR and is downplaying relations with Argentina, Brazil’s main strategic partner in the region, while emphasizing relations with what he calls “developed nations.” In addition to the United States, he is focused on Italy, Hungary – due to leaders’ far-right political affinities – and Israel.  The evangelical political forces who backed his election are pressing him to move the Brazilian embassy from Tel Aviv to Jerusalem, respecting “a sovereign decision of Israel.”  The Trump administration will warmly welcome the move, but Bolsonaro will face a potentially significant loss of trade among Middle Eastern and Asian partners.  The president-elect has yet to show his hand on China – Brazil’s main trading partner – and the other BRICS countries.  The Trump administration’s increasingly tough criticism of China’s activities in Latin America may temper the new government’s enthusiasm for closer ties with Beijing.

Bolsonaro has taken positions that set him at odds with the rest of the hemisphere.  He has denied the excesses of Brazil’s past dictatorship, advocated the use of torture against criminals whom he classifies as “terrorists,” used aggressive rhetoric against minorities (LGBTI, women, indigenous peoples, Afro-Brazilian Quilombolas, and migrants), and promised to reduce certain social rights.  Brazil’s diplomatic capital as a leader on environment and climate change is also at risk due to his domestic priority to promote agricultural business and the need to preserve “total” sovereignty over the Amazon Basin at the expense of protecting the rainforest.  He has cancelled Brazil’s commitment to host crucial UN climate change talks (COP25) in 2019, a deal negotiated by the government of President Temer just months ago.

Bolsonaro’s choice of his new foreign minister may be emblematic of his approach to international relations.  He met his commitment to choose a career diplomat, but his choice was Ernesto Araújo, an unknown who was recently promoted without ambassadorial experience who is a self-declared anti-globalist, anti-communist, and Trump’s enthusiastic “intellectual disciple.”  This appointment violates the tradition, observed even during the military governments, of selecting senior, skillful, and experienced ambassadors not directly linked to any ideological trend.  Further questions are raised by the military’s influence in the cabinet.  Two retired generals, Vice President Hamilton Mourão and the future head of Institutional Security Cabinet, Augusto Heleno, are expected to be the president’s right-hand men.  They and an empowered Ministry of Defense certainly will exercise huge influence in promoting a military vision of foreign policy in addressing issues such as borders policy and the Venezuela crisis, and could become a “second track” on Brazil’s foreign policy.

December 4, 2018

* Gilberto M.A. Rodrigues is Professor of International Relations at the Federal University of ABC (UFABC) in Brazil, and was a CLALS Research Fellow in 2017.

Colombia’s Duque: The End of the Road for Empty Politics?

By a Colombia Watcher*

Iván Duque

Colombian President Iván Duque. / Casa de América / Flickr / Creative Commons

Colombian President Iván Duque’s first 100 days in office have left three important baskets empty: the basket of public policy, the basket of new ideas, and the basket of trust in government.  His problem is not so much that he is a puppet of his mentor, former President Álvaro Uribe; it is that they have failed to jettison their recent past and articulate a credible vision for Duque’s four-year term.

  • Duque’s economic development plan was hurriedly prepared with little policy guidance from the president’s office. It consists of a long list of sector-by-sector aspirations that bear no connection with either the current budget or realistic medium-term fiscal planning.  The underlying assumption appears to be that the government will somehow – on its own – abandon a longstanding tendency toward clientelism based upon contractual power for a results-driven technocracy.
  • Duque’s financial strategy appears to be stumbling. Congressional opponents say his nominee to be Finance Minister, Alberto Carrasquilla, is guilty of corruption in a previous job.  Instability in global prices torpedoed Duque’s plan to rely primarily on proceeds from a new oil boom, so the government has wagered on a highly unpopular and inequitable tax reform.  Reducing federal expenditures is out of the question — key constituencies depend on the government’s purchasing power – and a serious review of fiscal decentralization also appears beyond Duque’s political will and expertise.  Going back to debt financing would face legal, fiscal, and political challenges.
  • Achieving his promises to reduce corruption also appears difficult. The lack of accountability in the Odebrecht corruption case, in which supporters of Uribe (as well as former President Santos) reportedly were involved, has fueled cynicism.  Unlike in other Latin American countries, no high-level economic or political Colombian is in jail on Odebrecht corruption charges.  Moreover, leaks of irrefutable recordings and documents demonstrate efforts by the country’s attorney general, Néstor Humberto Martínez, to cover up irregularities.  (The auditor who leaked the evidence was subsequently killed, as was his son when he returned from Spain to attend the funeral.)

The new administration faces other challenges.  Polls taken immediately after the economic plan was announced showed that public support for the government continued its free fall after reaching the lowest level recorded during a president’s first 100 days in office.  The government appears to be looking for legal ways to abandon the already fragile peace process with the former FARC guerrillas – already undermined by the fact that killings and disappearances of local civic leaders continue unabated.  Dissident FARC members are returning to the jungle or joining the growing number of criminal bands that operate in both the cities and the countryside.  Protests joining students and workers from various sectors, including healthcare and transportation, continue to affect essential services in a way not seen in Colombia in recent years.

Restoring public trust in Colombian institutions will be a monumental task for which Duque does not appear to have a credible path forward.  He will probably struggle to distance himself from some of his scandal-plagued financial and political backers, but they will demand unconditional support and loyalty amid public outcry and pressure.  The coalition that ensured Duque’s second-round victory in June was temporary – united only to stop his leftist opponent – and is already showing signs of abandoning him.

  •  Duque may try to make international support a pillar of his presidency, as Uribe and Santos did, but even that is not going to be easy. He cannot expect the same enthusiastic endorsement Santos received from the European Union, Canada, or UN agencies, who applauded his focus on the peace process and building democracy from the bottom up.  There are already voices in the Duque government opposing efforts begun under Santos to meet the conditions for Colombia’s admission into the OECD club.  Duque may be optimistic of gaining U.S. support – heartened by the Trump administration’s reduced emphasis on human rights and democracy in the bilateral relationship – but the most Duque has gotten so far is some continuation of support for anti-drug efforts.  His desperate efforts to develop a strong direct relationship with President Trump have not yet borne fruit.

Duque appears burdened by the bonds that brought him to power – with members of his coalition, with former president Uribe, and with political and financial backers – that have either weakened or are now embroiled in scandal.  Delivering results and inspiring public trust and support may be beyond his skills, raising the prospect – still unlikely – that he might someday be tempted to resort to repressive tools.

November 29, 2018

* The author is a long-time Latin America specialist with particularly deep expertise on Colombia.

Mexico: Will AMLO Bring a “Fourth Transformation” or Return to Authoritarian Past?

By Daniela Stevens*

President-Elect Andrés Manuel López Obrador / Eneas / 500px / Creative Commons

A week before his inauguration, Mexican President-elect Andrés Manuel López Obrador (AMLO) continues to stress his commitment to be a “good president” and leader of the country’s “Fourth Transformation,” but some of his early actions suggest that he will challenge political pluralism and destabilize the investment environment.  His sexenio could have a rocky start both politically and economically.

  • AMLO’s handling of a “national consultation” over the ongoing construction of Mexico City’s new international airport – a project that he criticized as corruption-laden – raised red flags about his intended governing style. Most observers say the consultation was unconstitutional and, with only one percent of registered voters participating, inconsistent with the President-elect’s pledge to respect the “people’s will.”  AMLO’s reaction to the criticism – asking “¿quién manda?” (who governs?) – was widely interpreted as a sign that the airport maneuver was not about careful financial planning but rather political power.  He held another referendum last weekend, a “consultation” with citizens on 10 projects on which he seemed to have made up his mind beforehand.  These referendums seem intended to legitimize his intentions and enhance his power.
  • He and his party, Movimiento de Regeneración Nacional (Morena), appear to be moving ahead with plans to increase control over public spending, eroding institutional checks on presidential power. The Morena majority in the Tabasco state congress, for example, last month approved a provision empowering the next governor, also from Morena, to assign public works and acquisitions directly, without public bidding.  If the Supreme Court does not deem the reform unconstitutional, the administration will build a refinery in Tabasco without any review of the integrity of the process.
  • To reduce imports of gasoline and natural gas, AMLO plans to halt oil exports and reserve production for national consumption only, as well as to build a new refinery and modernize six existing ones. Critics say such policies reflect an outdated vision of national sovereignty closely tied to oil, and that they would directly diminish Mexico’s creditworthiness, endanger the finances of state-owned Petróleos Mexicanos (Pemex), and, according to Moody’s, result in a two percent decrease in GDP.  Additionally, oil experts say, the emphasis on refining would detract from important efforts to expand exploration and production.  The country cannot immediately meet domestic demand for crude.  Similarly, the transition team seems to disregard the potential of renewable energies and the need to electrify transportation.

Morena proposals to reduce the autonomy of regulatory agencies are scaring investors as well.  A Morena Congressman, for example, is pushing to incorporate the energy sector’s regulatory agencies into the Secretariat of Energy, subordinating them to greater political control.  Although AMLO did not publicly support the initiative, his appointee as Secretary of Energy, Rocío Nahle, has already asked the director of the National Commission of Hydrocarbons, one of the regulatory agencies, to step down three years ahead of schedule.  Given its debt and deficits, Pemex can ill afford to strain its partnerships with private capital.

It’s too early to assess how many of these actions reflect AMLO’s and Morena’s inexperience or a considered approach to governing, but the incoming leadership so far seems unaware or unconcerned that such measures undercut their stated vision of ushering in a “Fourth Transformation” on a par with the country’s three previous ones – independence (1810–1821), the Reforma wars (1857–1861), and revolution (1910).  The hints of authoritarianism, alongside decisions to appoint single-representatives in the states and to maintain a pervasive military presence in the streets, suggest AMLO’s tenure may indeed transcend history – as a government not different from the priista centralized governments of the 20th century, and the militarized calderonista administration (2006 2012) he vehemently criticizes.  After 1997, when the hegemonic Partido Revolucionario Institucional (PRI) – from which AMLO had already defected to lead the leftwing Partido de la Revolución Democrática (PRD) – lost the majority of the Chamber of Deputies for the first time, political analysts and academics pointed out the disadvantages of divided governments in presidential systems, such as political gridlock.  A unified government under AMLO, however, may not be the answer for Mexico either, unless progressives in Morena committed to democracy and its institutions find a way to restrain his impulses and keep his government on a democratic path. 

November 27, 2018

* Daniela Stevens is a Ph.D. candidate in Political Science in the School of Public Affairs at American University.

Guatemala: Is CICIG Dead?

By Ricardo Barrientos*

Iván Velásquez and Jimmy Morales

CICIG Commissioner Iván Velásquez (left) and Guatemalan President Jimmy Morales (right). / República / Creative Commons

Guatemalan President Jimmy Morales and his political allies – the group of government officials, congressmen, judges, mayors, and entrepreneurs whom opponents call the Pacto de Corruptos that support his efforts to shut down corruption investigations by the Comisión Internacional Contra la Impunidad en Guatemala (CICIG) – may be winning the current battle, but the war is not yet over.  Undoubtedly, the government has achieved some hits, trumpeted by Morales in speeches and in the victory celebrations of the newly elected Congress Directive Board that supports him.  CICIG’s opponents have:

  • Prevented CICIG Commissioner, Iván Velásquez, from entering the country, even after the Constitutional Court and Attorney General, Consuelo Porras, explicitly stated that he is free to enter whenever he wants.
  • Lobbied in Washington to gain U.S. support for Morales, exploiting access and friendships with U.S. Vice President Pence and other officials close to President Trump such as UN Ambassador Nikki Haley and U.S. Senator Marco Rubio. They have used the “Bidkov affair” – involving a prosecution instigated by CICIG and the Attorney General’s investigation into the purchase of false Guatemalan identity documents by a Russian family opposed to President Putin – to feed opposition to CICIG.  (Rubio accused CICIG of doing the Russian president’s dirty work.)  Morales and his backers have also used the decision to move the Guatemalan embassy from Tel Aviv to Jerusalem and other unrelated actions to punch important buttons within the Trump administration.
  • Achieved some progress in swaying Guatemalan public opinion through an anti-CICIG social media campaign aimed at stimulating nationalistic feelings and fueling the view that CICIG Commissioner Velásquez, a foreigner, went too far. They have even raised old Cold War flags, saying that Velásquez is a Communist and that the fight against corruption is a question of “red ideology.”
  • Consolidated their control over the Guatemalan Congress, securing enough votes to reject initiatives that would remove Morales’s immunity and allow investigations against him to proceed.
  • Further strengthened opposition to CICIG among factions of the private sector.

A more careful analysis, however, reveals cracks in Morales’s victory chariot.  He and some of his ministers are not only in grave danger of being charged with disobeying the Constitutional Court ruling; the Attorney General and CICIG have continued their work, albeit with a much lower media profile, and are producing results.  U.S. support for Morales’s efforts to destroy CICIG may diminish after Democrats take over the U.S. House of Representatives and begin scrutinizing his “impressive” claims about deporting ISIS terrorists from Guatemala and seizing drug shipments.  The U.S. Congress may now uncover an ugly truth: drug trafficking and migrant flows are increasing.

  • More importantly, Morales and his Pacto do not yet appear ready for elections scheduled for June-August 2019. (The new government will take office in January 2020.)  They are floating proposals for a constitutional amendment to allow for a presidential reelection, which would ensure them continued immunity, and to dissolve the Constitutional Court, or to make it a crime to criticize members of Congress.  Measures like these take a lot of time and energy.

The ferocity of Morales’s attacks against CICIG may not be fueled by confidence of victory but rather by a deep and desperate fear of justice after January 2020 – a basic survival instinct of people who know they have crossed a line.  The final outcome of all this will be, as it should, in the hand of voters.  The real issue for Guatemala might not be the fight between Jimmy Morales and CICIG, but rather between the Pacto and the huge number of voters beyond their grasp who are sick and tired of the corruption and impunity.  U.S. policy toward Guatemala has shifted from supporting CICIG and its efforts to investigate corruption and build Guatemalan institutions committed to the rule of law, to turning a blind eye in thanks for an apparently compliant ally and for completely unrelated reasons, such as the location of the embassy in Israel.  While Washington applauds the government’s (still unfulfilled) promises to stanch the northbound flow of migrants, it allows one of the biggest causes of migration – corruption and impunity at all levels of society – to continue unabated.

November 21, 2018

*Ricardo Barrientos is a senior economist at the Central American Institute for Fiscal Studies (ICEFI).

Bolivia: The Exceptional Case of the MAS

By Santiago Anria*

MAS rally in Bolivia

A rally celebrating the nineteenth anniversary of the MAS in Bolivia. / Tercera Información / Wikimedia Commons

Bolivia’s Movement Toward Socialism (MAS) is one of the most important and electorally successful new parties in Latin America because it has succeeded in achieving and maintaining high levels of internal grassroots participation and bottom-up influence, even after assuming national power.  Unlike the ad hoc electoral vehicles created to sustain the support of a single charismatic leader like Hugo Chávez in Venezuela or Rafael Correa in Ecuador, the MAS has maintained autonomous forms of social mobilization by popular constituencies that have contributed to keeping party vibrancy and served as a check on concentrated executive power.

  • A “party of movements,” the MAS began as a largely indigenous coca growers’ union, but after 20 years of existence and more than a decade in power, it still deviates from the conventional wisdom that such parties inevitably become oligarchic in their operation. Compared to most other movement-based parties, the MAS remains responsive to the interests, demands, and preferences of its social bases – propelling its leader, Evo Morales, to the presidency but also, at times, limiting his authoritarian tendencies.  My research, recently published in a book entitled When Movements Become Parties, reveals that Bolivia is a rare example in which a party’s social movement origin not only facilitated party-building but also enabled the party to preserve high levels of grassroots participation in the selection of candidates and the crafting of public policies, with “bottom-up” correctives to hierarchy and concentrated executive authority.
  • While institutional checks and balances can be (and have been) weakened by an ambitious leader like Morales, governing parties more open to bottom-up input preserve opportunities to establish checks on decisions and constrain strategic behavior and hierarchical control. Channels to exert “voice” provide incentives for the social bases to shape important decisions, as these bases become de facto veto actors within the organization.  At the broader regime level, when a governing party establishes and upholds well-developed opportunities for bottom-up grass-roots participation, instances of bait-and-switch policy-making are less likely – a condition conducive to policy stability and ensuring the “continued responsiveness” that is central to democratic representation in between election cycles.  Finally, when governing parties are more open, they may generate opportunities and incentives for the political empowerment of traditionally marginalized groups by boosting the input that those groups have in the political power game.

The MAS has avoided extreme forms of professionalism and “top-down” control.  While the party as a bureaucratic organization remains weak after 20 years, that reality has allowed the social bases to act autonomously and continue to influence, constrain, and hold the party’s leadership accountable.  This has enabled the party to maintain unusually strong ties with the country’s major popular movements, which still provide a formidable mass base and coalition of support.  Today, 12 years after it gained power for the first time, the MAS remains the only truly national party in Bolivia and is that country’s dominant party.  The ongoing strength and relative autonomy of social mobilization in Bolivia not only explains much of the MAS’s continued success but also sets the Bolivian case apart from the Brazilian PT, where social mobilization withered, and from Venezuela under Chávez and Nicolás Maduro, where mobilization is strong but largely controlled from above.

The system is far from perfect.  Poised to seek a fourth term in 2019 after a legally dubious maneuver, polls show that Morales may not be unbeatable.  The party lacks a viable successor, and another reelection can open the door to further abuses and greater personalization of power – all of which can undermine the development of the democratic regime.  This could also atrophy the links between the party and segments of its movement base, a process already under way.  Power is already concentrated in an executive administration that too often treats opponents and the press with raw hostility.  Institutions are inefficient, liberal rights are poorly safeguarded, and courts are feeble and politicized.  Even if checks and balances on presidential authority have weakened, however, autonomous grassroots participation, inclusion, and accountability are highly robust.  Inclusion has created a “new normal” in the Bolivian political arena, with larger numbers of Bolivians enjoying rights of citizenship and greater input into political decision-making and into determining who gets what, when, and how – with the MAS at the center.  Seen from the long arc of Bolivian history, this is an exceptional change in a society characterized by social and political exclusion.

November 14, 2018

*Santiago Anria is Assistant Professor of Political Science and Latin American Studies at Dickinson College.  His new book, When Movements Become Parties: The Bolivian MAS in Comparative Perspective (Cambridge Studies in Comparative Politics, 2018), studies the internal politics of Latin America’s three most innovative leftist parties: Bolivia’s MAS, Brazil’s PT, and Uruguay’s FA.

Ecuador: Lenín Moreno’s Balancing Act

By John Polga-Hecimovich*

Lenín Moreno

Ecuadorian President Lenín Moreno (far right) meets with members of the National Assembly in October 2018. / Diego Cevallos / Asamblea Nacional / Flickr / Creative Commons

As Ecuadorian President Lenín Moreno begins the post-honeymoon phase of his presidency, he appears firmly committed to positioning himself as a judicious voice and centrist in a region where ideological moderation and restrained oratory are the exception rather than the norm.  This might be unexpected given his political background and four years as vice president under leftist firebrand Rafael Correa (2007-17), but it makes sense given the country’s challenging economic situation and political constraints.  As previously noted, Moreno had two choices when taking office: remain loyal to his socialist roots, govern through his Alianza PAIS legislative bloc, and double down on Correa’s (fiscally unsustainable) “Citizens’ Revolution;” or move towards the political center, splinter his legislative majority, and abandon Correa and many of his policies.  He has decisively opted for the latter, attempting to navigate a middle ground between the left and the right.

  • No issue depicts the thin line Moreno walks more than Ecuador’s foreign policy, and no foreign policy issue reflects that tug-of-war better than his handling of Wikileaks founder Julian Assange. Assangeto whom Correa granted asylum in 2012 at the Ecuadorian Embassy in Londonis now a costly and increasingly undesirable houseguest.  He is a liability in Moreno’s quest for technical assistance, international loans, and greater security and commercial cooperation with the United States, which is still seeking justice for Wikileaks’s publication of U.S. classified material.  Although Moreno has called Assange “more than a nuisance” and “an inherited problem,” the president has been reluctant to push him out over concern for his human rights.  In July, Moreno suggested Ecuador was seeking guarantees that Assange would not face the death penalty.  Maintaining its delicate dance, however, in October, the government broke from its longstanding dialogue with British authorities over Assange’s situation and announced that it will no longer pay for his food and medical care.
  • Ecuador is also seeking closer relations with its right-of-center neighbors, beginning to distance itself from the region’s leftist governments, and attempting to rebuild ties with the United States. Since June, Moreno has attended the inauguration of Colombian President Iván Duque, met with Peruvian President Martín Vizcarra, welcomed U.S. Vice President Mike Pence to Quito, and launched a security agreement with Washington.  Moreno has also changed his tone with regards to Venezuela.  Speaking to the United Nations General Assembly on September 25, he spoke of the burden caused by arrival of more than 6,000 Venezuelan migrants a day and called for a national dialogue in that country, provoking an acrimonious back-and-forth between the two capitals that culminated in the Ecuadorian government tweeting that “corrupt, murderous, and lying socialism of the 21st century is still alive in Venezuela and producing the most massive migration in the country’s history.”

Moreno’s strategy to confront the country’s fiscal deficit, which was 5.5 percent of GDP in 2017, is an even greater departure from his predecessor’s approach.  Whereas Correa pursued financing primarily through oil-for-loan deals from China after Ecuador’s selective default in 2008, Moreno has turned to other global lenders such as the World Bank and Japan.  He has also pursued new commercial relationships and market-friendly policies, including a free trade agreement with the European Free Trade Association, beginning accession talks with the pro-market Pacific Alliance, and continuing to encourage foreign investment in Ecuador’s hydrocarbon industry.  However, Moreno has not fully committed to Washington consensus-style reforms: the government announced measures in August to reduce its $60 billion debt, but it also authorized over $1.2 billion in loans to the housing sector, agriculture, and small and medium-sized business to reactivate the domestic economy.

Although not an ideological rightist like Chilean President Sebastián Piñera or Colombian President Iván Duque, Lenín Moreno has reoriented many of Rafael Correa’s domestic and foreign policies out of necessity as he confronts Ecuador’s difficult economic situation.  Given that the country’s fiscal deficit and outstanding debt are strategic challenges, it seems likely that he will continue to judiciously tread this middle path.  Although fiscal austerity measures have lowered Moreno’s approval rating and provoked protests from the Correista left, it would be a mistake to bet against him.  Moreno has not only upended expectations but also proven far more resourceful and politically sophisticated than his critics—and probably even his admirers—expected.  He may also send Julian Assange at some point an eviction notice.

November 6, 2018

*John Polga-Hecimovich is an Assistant Professor of Political Science at the U.S. Naval Academy.  The views expressed here 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.

Cuba: Sticking to the Plan

By Fulton Armstrong

Miguel Diaz Canel

Cuban President Miguel Díaz-Canel. / Irene Pérez / Cubadebate / Flickr / Creative Commons

As Cuban President Miguel Díaz-Canel passed the six-month mark in office this month, his administration – not surprisingly – continued to produce no surprises.  His rhetoric and policies, similar to the package of constitutional reforms now undergoing consulta popular and scheduled to be approved by referendum next February, are an extension of Raúl Castro’s tightrope walk between continuity and gradual change.

  • Speaking at the UN General Assembly in September, Díaz-Canel condemned the “selfishness and exclusion” of capitalism as the cause of poverty, instability, climate change, and other ills. He also proclaimed, “The generational change in [Cuba’s] government should not deceive the enemies of the revolution; we are continuity, not rupture.”  He welcomed the almost-friendless Venezuelan President Nicolás Maduro to join one of his biggest public appearances.  Showing his pragmatic side, however, Díaz-Canel also met in New York with U.S. technology companies and icons of U.S. capitalism – Google, Bloomberg, Microsoft, Twitter, and others – declared his hope to “computerize [Cuban] society,” and welcomed the announcement of the first U.S.-Cuban biotech joint venture.  Upon his return to Havana, he launched his own Twitter account.
  • On economic reform, Díaz-Canel has continued the same halting approach toward market socialism as did Raúl. New regulations announced in July, to be implemented in December, seemed designed to restrain the growth of the private sector rather than accelerate the reform program.  New mechanisms to ensure that cuentapropistas pay more taxes and operate within the law will dampen their growth in the short term and aggravate contradictions in current policies – for example, curbing black-market purchases of supplies without creating wholesale markets for them.

Ongoing national discussions on constitutional reforms, launched by the National Assembly in July, are compatible with Díaz-Canel’s approach to change.

  • The new document reaffirms two tenets of the Communist Party’s revolutionary platform – the party’s continued leading role as sole political representative of the Cuban nation, and a commitment to a socialist system in which state property predominates and universal social services remain free. But, importantly, the draft omits the goal in the 1976 constitution of “building a Communist society,” signaling the leadership’s recognition that private property and markets will be a permanent feature of the new Cuban model.  It reconfigures policymaking processes to increase efficiency (such as by formalizing the position of Prime Minister), increases the autonomy of local government, and separates more clearly executive and legislative functions.  An amendment allowing same-sex marriage has sparked heated public debate and given rise to an unprecedented political organizing drive by churches opposed to it.
  • The amended constitution does not significantly expand the space for private enterprise, but it provides a stronger legal foundation for the reforms that have already been implemented in various waves since 1992. The draft also strengthens protections of Cuban and foreign-owned private property and investment, providing guarantees against future expropriation.

When introducing changes over the years, the government has routinely, if not obsessively, emphasized continuity – and Díaz-Canel’s administration is proving to be no different.  The signs of change are often nuanced, whereas hardline positions, which tamp down progressives’ expectations and assuage conservatives’ anxieties, are unmistakable.  Díaz-Canel’s adherence to Raúl’s program gives him both essential political cover emphasizing continuity as well as a platform for continuing gradual change.  That formula doesn’t help him with some major challenges, such as the need to unify the country’s two currencies, that have loomed large for several years.  But Díaz-Canel’s gradualist approach – particularly if enshrined in a new constitution next year – is compatible with the view held by many Cubans that change should be evolutionary, not disruptive, even if they wish it went faster.  Washington’s curtailment of bilateral normalization is depriving the private sector of much-needed resources to drive change, but the country’s continued international outreach and expansion of internet access have given entrepreneurs a moral, if not economic, lifeline.  Cubans have often said they’ll do change “their own way,” and Díaz-Canel, with his abundance of caution, may be leading that process. 

October 31, 2018

Brazil: The WhatsApp President

By Barbara dos Santos*

Bolsonaro social medis

Graphics from Brazilian presidential candidate Jair Bolsonaro’s social media detailing his followers on Facebook (left) and Twitter (right). / Twitter: @jairbolsonaro / Creative Commons

If polls predicting a landslide victory for Jair Bolsonaro in Sunday’s runoff election are correct, Brazil on January 1 will inaugurate its first president to win by virtue of his superior social media prowess rather than the strong party bases that propelled his predecessors.  He gained strong support from different sectors of Brazilian society by delivering – legally and potentially illegally – the message his supporters wanted to hear directly to their personal electronic devices, without the validation and transparency of traditional media.  The receptivity of his young supporter base compensated for the low amount of TV time allotted to him under Brazilian law.

  • WhatsApp has around 120 million users in Brazil, around 60 percent of the population, for a wide array of personal and commercial communication needs. The polling firm Datafolha found that two-thirds of Brazilian voters use WhatsApp, and that of them a majority (61 percent) are Bolsonaro supporters likely to follow political news on the service – compared to 38 percent of the backers of his opponent, Fernando Haddad.
  • The platform is perfect for manipulation of information. Messages are encrypted and are therefore beyond the domain of electoral authorities, independent fact-checkers, or even WhatsApp managers.  Real and fake news spread like wildfire.  Agência Lupa, a fact-checker service, has found that only 50 of the most shared pictures in 347 WhatsApp groups were factually correct.  During the weekend of October 6-7, the company found that 12 of the fake news items it evaluated were shared 1.2 million times.  The Federal Electoral Court (TSE), which created a consultative council earlier this year to tackle online misinformation, has been slow to respond to the threat – perhaps out of fear it would be accused of limiting free speech.

Bolsonaro’s campaign also used Facebook effectively even after it twice shut down pages carrying content of his deemed to be fake – 197 pages and 87 accounts in July, and 68 pages and 43 accounts two weeks ago.  Many of the pages portrayed Haddad as a Communist whose Workers Party would turn Brazil into another Cuba and convert children to homosexuality.  One attack – alleging that Haddad would distribute “gay kits” to expose schoolchildren to homosexuality – was so blatant that the TSE ordered Bolsonaro’s campaign to stop it.

  • Haddad’s presence on Facebook (1.5 million followers) is minuscule compared to Bolsonaro’s (7.8 million). Some of Haddad’s followers used social media to spread rumors that Bolsonaro staged his near-fatal stabbing at a rally last month; social media have not shut down any of Haddad’s pages or accounts.

Bolsonaro’s social media campaign has also allegedly been tainted by illegal funding.  Folha de São Paulo, one of Brazil’s biggest newspapers, last week reported that wealthy businesspersons spent US$3.2 million on a WhatsApp fake news operation.  If true, they broke electoral laws barring undeclared corporate campaign donations and the purchase of contact lists from a third party.  Speaking on Facebook Live, Bolsonaro said Folha had no evidence, adding in an interview later that he has no control over the businesspersons anyway.

Fake news in elections – in the traditional or social media – is not a new phenomenon, but its wildfire impact has caught many in Brazil by surprise.  The mere speed that disinformation travels makes it nearly impossible for Brazilian authorities to curb its spread, and self-policing by social media platforms also seems an implausible solution given their benefit from the high traffic fake news drives.  Bolsonaro and his campaign team realized this earlier and embraced it more aggressively than Haddad, who did not enter the race until September 11, ever did.  Haddad was busy trying to simultaneously convince Lula’s supporters to vote for him and others that he was not Lula’s puppet, while Bolsonaro’s message was reaching tens of millions of Brazilians with smartphones.  The likely president’s expertise in using social media (legally or not) has clearly boosted his campaign, but governing by WhatsApp, Facebook, or Twitter remains an untested proposition.  It seems that Bolsonaro may also follow U.S. President Donald Trump’s playbook into government.  Crushing his opposition under a barrage of half-truths and lies does not bode well for democratic governance.

October 26, 2018

*Barbara dos Santos is a Ph.D. Candidate in Political Science at the School of Public Affairs at American University.

U.S.-Central America-Mexico: Migrant Caravan Shaking up Relations

By Fulton Armstrong

Honduran migrants meet with Mexican police in Chiapas

Honduran migrants meet with Mexican police in Chiapas. / Pedro Pardo / AFP Photo / Creative Commons

The underlying drivers of Central American migration remain the same as always – the lack of economic opportunity and strong institutions to protect citizens from violence and other threats – but the Trump administration’s accusations and threats in reaction to the caravan of migrants heading toward the United States is moving relations into uncharted territory, just two weeks after the parties congratulated themselves for progress made at a summit in Washington.

  • Honduran, Guatemalan, and now Mexican authorities have been unable to stop the peaceful caravan of 5,000-7,000 people without violating their rights and causing ugly incidents with high political costs at home. After shows of force, Guatemalan and Mexican border guards allowed them to pass, and local businesses and churches have spontaneously provided food, water, and shelter in each town.  Mexico originally said it would allow only those with current passports and identification to apply for refugee status, but, citing obligations under international agreements and national law, relented.  The migrants are now in Chiapas.

At a meeting with U.S. Vice President Pence and Secretary of State Pompeo on October 11, leaders from Central America’s three “Northern Triangle” countries – Honduran President Hernández, Guatemalan President Morales, and Salvadoran Vice President Ortiz – and Mexican Foreign Minister Videgaray trumpeted the progress that they had made in slowing the flow of migrants from the region to the United States since launching the Alianza para la Prosperidad in 2014.  CLALS research, other studies, and many press reports show, however, that the underlying drivers of migration remain essentially unchanged.

  • The Alianza may eventually foment economic growth and jobs, but multidimensional poverty and high underemployment continue to drive many to flee their homeland. An analysis by the Instituto Centroamericano de Estudios Fiscales (ICEFI) shows that about 6.2 million children, adolescents, and young adults in the Northern Triangle lack access to an educational system.  Homicide rates have declined, but the region remains one of the most violent in the world.  UN estimates show a steady increase in the number of gang members in all three countries, up to 20,000 each in El Salvador and Guatemala.  The gangs often fill voids left by government institutions that are underfunded and, often, weakened by corrupt officials’ embezzlement.  While violence has long been a driver of migration from urban areas, it is now causing new patterns of migration from rural areas as well.  Domestic violence and abuse, which UN data indicate affects up to 40 percent of girls and 16 percent of boys, is another problem some parents want children to escape.
  • President Trump has not acknowledged these drivers, and instead has portrayed the migrants in the caravan as an “onslaught” of criminals. (He also claimed that “unknown Middle Easterners” are among them but later admitted “there’s no proof of anything.”)  He apparently calculates that stirring up fear helps his allies in the U.S. Congress as midterm elections approach, as well as his campaign for a new wall on the U.S.-Mexico border.  He has threatened the Northern Triangle governments and Mexico for not stopping the migrants, tweeting Monday that he will “now begin cutting off, or substantially reducing, the massive foreign aid routinely given to [them]” because “they did nothing for us. Nothing.”  Mexican officials, relieved that the confrontation over the NAFTA renegotiation was resolved, now fear another major disruption in bilateral relations.

The migrant caravan is testing the administration’s relations with its closest allies in Central America.  Trump’s jettisoning of the nice talk from Pence’s recent summit will not in itself harm ties; the Central Americans and Mexicans are aware of his impulsive streak and may calculate that they can weather the windstorm.  His accusations and threats to suspend aid, however, reveal a fundamental misunderstanding of the underlying drivers of the migration, and he seems unaware that his partners have been unwilling to undertake the political and economic reforms needed to address those drivers except in minor ways that U.S. aid enables.  Trump apparently thinks his partners should use force – even the military if needed (as he’s threatened on the U.S. border) – to stop the flight of humans from the miserable conditions in which they live.  He also apparently judges that the more migrants are made to suffer, such as through the separation of family members who manage to cross the border, the less likely they are to try.  The caravan’s provocations and Trump’s reactions could blow up the game that has allowed both sides to pretend the problem will go away with token programs, intimidation, and a wall.

October 24, 2018

Southern Cone: Rapid Transition to Non-Conventional Renewable Energy

By Thomas Andrew O’Keefe*

Edificio Alexander

Edificio Alexander, a building in Punta del Este, Uruguay, that produces wind energy on its roof. / Jimmy Baikovicius / Flickr / Creative Commons

South America’s Southern Cone is undertaking a transition to non-conventional, renewable energy resources – that is, production not dependent on fossil fuels or large-scale hydropower – that creates the opportunity for a historic regional consensus on energy policy.  Uruguay and Chile are at the forefront.  Both lack significant fossil fuel reserves and have experienced crises when droughts detrimentally impacted hydro-supplied electricity.  For them, the rapid shift to other forms of domestically sourced renewables is as much a means to guarantee energy security as to combat climate change.  Approximately a third of Uruguay’s electricity is currently generated from wind power (up from only one percent as recently as 2013).  Similarly, about a third of Chile’s electric power – depending on the time of day – is sourced from the sun and the wind.

  • Brazil has also made significant strides in incorporating wind, and to a lesser degree, solar power into its energy matrix. The primary motivation is the need to offset carbon emissions from the burning of rain forests and the country’s greater use of natural gas.  Brazil has long enjoyed the cleanest energy of any large economy in the world because of its heavy reliance on hydropower, which still covers some two-thirds of the country’s electric needs.  Brazil was also a pioneer in the development of more environmentally friendly sugar-based ethanol (as opposed to corn favored in U.S. ethanol production); most passenger vehicles today have flex-fuel engines.  Paraguay gets almost all its electricity from hydropower (and exports the bulk of what it produces).
  • Argentina, while increasing exploitation of its large shale gas and oil reserves, in 2017 expanded renewable energy projects nearly 800 percent over the previous year, according to reports. President Mauricio Macri has created a more inviting investment climate for the private sector, rapidly increasing natural gas output, especially from the Vaca Muerta shale reserves in Patagonia.  He is also encouraging the expansion of renewable energy beyond large hydro by, among other things, allowing long-term power purchase agreements in U.S. dollars as a hedge against currency devaluations.  Furthermore, large industrial consumers face penalties if they do not meet increasing thresholds set for renewable energy use.  Current laws require that at least 20 percent of the nation’s electricity come from non-conventional renewables by the end of 2025, and they include tax exemptions, import duty waivers, and a special trust fund called FODER, created in 2016, to provide subsidized loans and other assistance.

The rapid expansion of the renewable energy sector in the Southern Cone will enable countries to export excess production to their neighbors, facilitated by a robust regulatory framework to facilitate the cross-border trade in energy resources.  In addition, by creating a fully integrated regional market in renewable energy products, a crucial backup is established for resources such as wind and solar power that are inevitably prone to interruptions during the day.  It would also mitigate the impact of droughts on hydro-generated electricity, which are likely to worsen with global climate change.  Accordingly, there are strong incentives to revive efforts begun by MERCOSUR in the late 1990s to integrate energy markets that collapsed with the Argentine energy crisis at the start of the 21st century.  The fact that all the Southern Cone governments are now ideologically aligned in favor of market-oriented economic and investment policies facilitates achieving a regional consensus on energy for the first time.  Governments in the region now need to move beyond the discussion phase to turn all this into a concrete reality.

October 19, 2018

*Thomas Andrew O’Keefe is the President of Mercosur Consulting Group, Ltd. and currently teaches at Stanford University in Palo Alto and Santiago, Chile.