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.

Bolivia: Locked in Its Past

By Carlos Malamud*

The International Court of Justice

The International Court of Justice in The Hague. / International Court of Justice / Wikimedia

The International Court of Justice (ICJ)’s rejection of Bolivia’s case against Chile over access to the Pacific Ocean shocked Bolivian public opinion – and was a significant blow to President Evo Morales.  The ICJ judgment, issued on October 1, countered the beliefs of practically every Bolivian, educated since childhood that the Chilean port of Antofagasta was theirs.  In the Bolivians’ calculus, the complaint they brought to The Hague was already a compromise: they didn’t demand new borders or sovereignty, but rather argued that Chile had an obligation to negotiate a settlement.

  • The ICJ’s decision – by a vote of 12 to three – that Chile had no obligation to negotiate underscored, once again, that the Morales government had stirred up unrealistic expectations. While Morales, who was in The Hague for the announcement, declared that “Bolivia will never give up,” his Chilean counterpart, Sebastián Piñera, lamented that the ICJ case “made us waste five years which could have been spent building a healthy relationship between the two countries.”  Nationalism permeated both sides’ positions, but the Chilean government showed greater restraint, even if demonstrators in Antofagasta did show certain triumphalism after the verdict was announced.
  • In terms of politics, Morales was more ambitious preceding the Court’s decision than Piñera. The Bolivian president’s lawsuit wasn’t just about territory; he had the clear political objective of keeping himself in power indefinitely.  Had he won the case in The Hague, his ability to remain in office would have been practically guaranteed – as a national hero and savior for having regained Bolivia’s access to the Pacific Ocean.

The Bolivian government’s rhetoric has hurt its image.  In the week before the verdict was announced, Morales’s vice president, Álvaro García Linera, in his well-established role as mobilizer and opportunist, spoke of “Chilean aggression” and predicted a “major defeat” for Chilean diplomacy at the ICJ.  In his customary paternalistic style, he called for full compliance with the Court’s decision (although he himself did not do so later).  After the decision, Morales acknowledged that the Court said Chile was not obligated to negotiate, but – instead of clearing the way for better relations in the future – renewed his call for negotiations.  The Chilean government is not about to talk about anything unless Bolivia demonstrates that it is serious.  One important move would be for Bolivia to rescind, unilaterally and immediately, the suspension of diplomatic relations with Chile in 1978.

Bolivia’s defeat has already had serious political consequences.  It is a serious blow to the re-election aspirations of Evo Morales in 2019, which he was pursuing despite its unconstitutionality as reinforced by the defeat of a constitutional amendment allowing a third consecutive term in a referendum on February 21, 2016.  It also prompted ex-President Carlos Mesa – a rival with good chances of success – to announce his candidacy in elections next year.  Morales has already lashed out at Mesa, linking him to the “Chilean oligarchy” and speaking of his “betrayal of the fatherland.”

  •  Beyond the ICJ judgment, Bolivia will eventually have to free itself of the isolation – mental as well as geographic – that prevents it from finding better ways of promoting its interests. Bolivia has means – in Peru and Chile toward the Pacific, and in Santa Cruz toward the Atlantic – with which to find solutions and reinforce its potential for growth.  But that entails lowering the flag of nationalism, something that is still unclear they’re prepared to do.

October 10, 2018

*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.  A version of this article was originally published in El Heraldo de México.

Paraguay: Stormy First Month for New President

By Barbara dos Santos*

Mario Abdo Benítez

Paraguayan President Mario Abdo Benítez. / Marcos Corrêa / Flickr / Creative Commons

A little over a month into his five-year term, Paraguayan President Mario Abdo Benítez is already being challenged by corruption scandals – including allegations against himself – and internal party squabbling, but he is continuing efforts to build his image as an ambitious reformer.  While emphasizing continuity with the previous administration’s economic policies – focusing on export-fueled growth, low taxes, and domestic investment – Abdo Benítez’s push for certain reforms is ruffling feathers.

  • In the wake of protests against highly publicized corruption and influence-trafficking cases involving national legislators and top judges, Abdo Benítez based his campaign on a pledge to fight government and judicial corruption though deep reforms. In his inauguration speech, he called for immediate priority to be given to comprehensive reform of the national judicial system.  Three days after taking office, he called on all political parties – including those without representation in the National Congress – to join a national debate on constitutional reform.

The president, however, faces a number of challenges to his image and leadership.

  • During the campaign, he distanced himself from the legacy of his father, who was a top aide to Paraguayan dictator Alfredo Stroessner (1954-89), but a visit he made to his father’s grave after voting on election day and his use of Stroessner’s white Chevrolet on inauguration day fueled apprehensions about his commitment to democracy.
  • He is being buffeted by allegations that he has ties with drug traffickers. Social media have publicized a picture of the president in his home with his arm around drug kingpin Reinaldo Javier “Cucho” Cabaña, who was arrested earlier this month.  He has denied receiving money from Cabaña and said that he did not recognize the man – that he had taken “millions of photos” with sympathizers who came to his house to express support during the campaign.
  • One of his closest allies in the congress, Ulises Quintana, was also indicted this month for alleged involvement in “Cucho’s” international drug trafficking network. Another close ally facing corruption charges is Miguel Cuevas, the president of the Chamber of Deputies, who stands accused of illicit enrichment while in office and who has become the new main target of the anti-corruption protest groups.
  • A faction within his party, the Cartistas —allies of former President Horacio Cartes – has been holding back on support Abdo Benítez’s reforms. They claim his call for inclusive debate, rather than negotiating directly with them before opening to other parties, was a sign of bad faith, and they have not agreed to join the talks.
  • The president also faces challenges from the opposition Partido Liberal Radical Auténtico (PLRA), whose leader says he supports reforming the constitution, even drafting a new one, but that it should be based on a “national agenda” – not only Abdo Benítez’s priorities. PLRA and other parties are concerned that a key purpose of the reforms is open the way to presidential reelection, which has long been a goal of the Cartistas.  They also claim the president is appointing cronies to positions that require technical expertise, such as management posts at the Itaipú power plant on the Brazil-Argentina border.

Abdo Benítez’s commitment to reforms may be mostly rhetorical – his bottom line seems mostly about continuity – but the political threats that they entail could get out of control and spark protests.  Six weeks into his presidency, he seems unlikely to rally the domestic support necessary to enact deep reforms to make the electoral, political, and judicial processes more open and transparent.  He may find some comfort in the fact that neighboring presidents – Michel Temer in Brazil, Mauricio Macri in Argentina, and Evo Morales in Bolivia – all have their hands full too, and that, if anything, the region’s turn to the right during elections since 2015 means that he is not likely to be isolated politically.  As a new president, however, Abdo Benítez has to be wondering what the next five years hold.

September 27, 2018

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

South America: Venezuela Humanitarian Crisis Roiling Region

By Michael McCarthy*

A line of Venezuelan migrants at a Colombian border checkpoint.

Venezuelan migrants at a Colombian border checkpoint. / Colombia Reports / Wikimedia

The humanitarian crisis driven by both Venezuela’s increasingly dire economic situation and political repression is taxing all of northern South America, with no remedy in sight.  In what UN High Commissioner for Refugees officials call “one of the largest mass-population movements in Latin American history,” an estimated 2.3 million Venezuelans – about 7 percent of the country’s population – have poured out of the country since 2014.  According to UNHCR, more than half of them suffer from malnutrition, and a significant percentage suffer from diseases, such as diphtheria and measles, previously thought to be under control.  The crisis is posing economic and security challenges to neighboring countries:

  • Colombia has seen the greatest flow. About one million refugees have crossed the border since 2015, but arrivals have peaked – reaching about 5,000 per day – as the Venezuelan economy hits new lows.  Venezuelans’ fears that Colombia’s new president, Iván Duque, will close the border have driven part of the surge, but Venezuelan President Nicolás Maduro’s recent policy announcements – including a fórmula mágica that includes controlling inflation by lopping five zeros off current prices – are main drivers, according to most observers.
  • Ecuador received more Venezuelans in the first half of 2018 than in all of 2017 (340,000 to 287,000). Confronted with severe disruptions in border communities, Quito has declared a month-long “emergency” in four border provinces and has sent doctors and other personnel to help mitigate the impact of the arrival of several thousand Venezuelans a day.  Ecuador has announced that it is now denying entry to persons without passports.  Quito last week called for a regional summit on the crisis in mid-September.
  • Peru is the largest refugee hosting country in the Americas, but it has now begun to demand official documentation.
  • Brazil has taken in several tens of thousands of Venezuelans, but the influx is provoking local tensions. A regional judge closed the border – a decision overturned by the Supreme Court – and locals in the border city of Pacaraima took matters into their own hands vigilante-style, burning down a tent city and chasing about 1,200 Venezuelans back across the border.  Argentina and Uruguay, which last granted residency to 31,000 and 2,500 Venezuelans, are beginning to feel pressure to slow the flow.
  • Guyana is also upset because Venezuelans claiming Guyanese citizenship are arriving with claims to properties held by others since at least the 1980s. As the International Court of Justice takes up Georgetown’s case on its decades-old border dispute with Venezuela, the refugees’ arrival is an unwelcome distraction.

The United States and European Union have offered assistance, mostly to Colombia.

  • Earlier this month, Washington announced it would give Colombia an additional US$9 million in aid to provide water, sanitation, hygiene and some medications to Venezuelan migrants – bringing the overall U.S. commitment to over US$46 million over the past two years. USAID has cast the aid as supporting a “regional response” to the problem, but Washington’s closest ally, Colombia, will receive the overwhelming share.  U.S. Defense Secretary Mattis has announced he’s sending a hospital ship, the USNS Comfort, to Colombia and “possibly other destinations” to help.
  • In June, the EU committed €35.1 million (US$40.2 million), mostly for “emergency aid and medium-term development assistance” for people remaining in Venezuela and for neighboring countries affected by the crisis, and the EU Commission promised it would mobilize its migration and asylum program to provide help for migrants.

Assistance from the U.S. and EU, as well as any future help from multilateral development banks, is crucial but, ultimately, these interventions are palliatives.  Durable solutions will have to come from within Venezuela and from regional initiatives.  The summit proposed by Ecuador will produce little without strong leadership that at the moment appears absent.  The Organization of American States seems fatigued by the issue, and its Secretary General’s personalization of the struggle against Maduro over the past year has left him few options as well. UNASUR has been severely weakened – most recently by Colombian President Duque’s announcement of his country’s definitive withdrawal from the group – and its interlocutors from past efforts to find a solution in Venezuela have refrained from public comment.  The leadership of UN refugee specialists is critical, but the Security Council is very divided over the Venezuela crisis and the Secretary General has failed to gain traction with efforts to take a more active political role to address the Venezuelan crisis.  With Maduro’s fórmula mágica for resolving Venezuela’s economic challenges having next to no possibility of helping, the hemisphere should not be surprised that the flow of refugees will surely continue.

August 28, 2018

* Michael McCarthy is a Research Fellow with the Center for Latin American & Latino Studies.  He publishes Caracas Wire, a newsletter on Venezuela and South America.

South America: Is UNASUR Dead?

By Stefano Palestini Céspedes*

Three men sit at a table with microphones and two flags behind them.

President pro tempore of UNASUR, Bolivian Foreign Minister Fernando Huanacuni (middle), held a press conference last week to discuss the suspended participation of six member countries. / UNASUR SG / Flickr / Creative Commons

The decision of UNASUR’s six center-right members to suspend their participation in the group underscores the immense challenges the regional organization faces but may also lead to its effective reform.  In a letter last Friday to the Foreign Minister of Bolivia, current President pro tempore of UNASUR, his colleagues from Argentina, Brazil, Chile, Colombia, Paraguay, and Peru communicated their decision to suspend participation and budget support for UNASUR immediately.  In the past, single governments have unilaterally withdrawn from a regional organization when they considered it was not serving their interests, but a collective – albeit temporary – exit is unprecedented for an international organization in Latin America.  UNASUR now has only six fully participating members.

  • Although considered by some a left wing organization, UNASUR grew out of an idea that can be traced back to Brazilian President Fernando Henrique Cardoso’s first South American Summit in 2000. Institutionalized under the leadership of Presidents Lula da Silva and Hugo Chávez in 2008, UNASUR successfully grouped together Bolivarian, center-left, and center-right governments during its first 10 years of existence.  Under the leadership of Chilean President Michelle Bachelet, it helped avert a presidential crisis in Bolivia in 2008 and mediated in a conflict between Colombia and Ecuador.  Two years later, it adopted a democracy clause that has been applied once, in Paraguay in 2012.  UNASUR agencies such as the South American Defense Council, the South American Health Council, and the Council for Planning and Infrastructure have enjoyed broad participation and delivered regional public goods.

The six dissenting foreign ministers explained in their letter that their decision was motivated by the “need to solve the anarchy (acefalia) of the organization.”  They referred explicitly to the vacancy of the post of Secretary General since January 2017.  In fact, the organization’s requirement that decisions be by consensus perennially complicates decision-making.  The candidate with majority support – Argentine José Octavio Bordón – was vetoed by Venezuela, which the six believe is in violation of the organization’s democratic commitment.  Venezuela is currently suspended from Mercosur; was not invited to the Summit of the Americas in Lima; and has been singled out by a Resolution of the OAS.  As the application of UNASUR’s democracy clause against President Maduro is also blocked by the consensus rule, the six seemingly had few courses of action to exercise their voice.

  • Some observers say the six– all center-right governments – seek to destroy UNASUR because it is supposedly leftist or Bolivarian. However, the dissenters have not initiated formal procedures to withdraw from UNASUR, which would have de facto started its dissolution.  Indeed, there are different stances among the six signatories of the letter, with some in favor of the dissolution and others in favor of overhauling UNASUR.  The prevailing position seems to be to press the remaining countries, mainly Bolivia, Ecuador, and Uruguay, to convince Venezuela to lift its veto of Bordón.

The impasse may provide opportunities to transform UNASUR into a more effective organization.  A first positive indicator has been the political leadership of the Bolivian foreign minister; instead of overreacting to the letter, he has convened all foreign ministers (including the six signatories) to a meeting to solve the impasse.  The Chilean foreign minister and others have urged reform, which in theory could be achieved by introducing a majority-voting mechanism to overcome the sort of deadlocks that hamper the organization.  The risk is obvious:  Bolivia could fail to persuade Maduro to drop his veto, in which case at least a couple of the dissenters would probably withdraw from UNASUR.  Some of these governments have never been enamored with South American multilateralism and believe their interests are best served by cultivating relations with the United States and China bilaterally.  But bilateralism cannot provide regional public goods – such as peace, infrastructure, and economic stability – and hardly ever results in a balanced global economic insertion because it benefits the party in the stronger position.  As several South American countries – including some of the six dissenters – are facing domestic turmoil, breaches of the rule of law, and threats to good governance, a strong regional organization in which all South American states sit as members is more necessary than ever.

April 27, 2018

* Stefano Palestini Céspedes is a former CLALS Research Fellow and Postdoctoral Fellow at the Department of Political and Social Sciences at the Freie Universität Berlin, where he specializes in international organizations and regional governance.

Summit of the Americas: Awkward Agenda, Dim Prospects

By Eric Hershberg

Large group of men and women stand awkwardly while waving to a crowd

Leaders from the hemisphere during the last Summit of the Americas in 2015. / Maria Patricia Leiva / OAS / Flickr / Creative Commons

Preparations for the 8th Summit of the Americas, scheduled for April 13-14 in Lima, face a number of challenges.  Trump Administration measures have upended longstanding assumptions throughout the hemisphere about Washington’s agenda in the region and beyond.  No less distracting is the wave of ongoing corruption scandals in Latin America and impending elections in numerous countries.

  • The three presidential summits attended by President Barack Obama (2009, 2012, and 2015) arguably were shaped by the standing of the United States in the region. Emphasizing “change we can believe in” at his first presidential summit, in Trinidad, Obama pledged that the United States would be a partner rather than an embodiment of hubris.  Leaders across the ideological spectrum applauded.  Yet the second, three years later in Cartagena, was a disaster for Washington, with even friendly heads of state lambasting the President for continuing an unacceptable Cold War line on Cuba and rigid drug control policies.  It was in the wake of this embarrassment that Obama finally moved to change policy toward Cuba.  This watershed, supplemented by advances in other areas overseen by Vice President Biden, made Obama’s third summit, in Panama in 2015 – attended by Cuban President Raúl Castro – a much more positive experience.

This year’s Summit seems unlikely to produce advances – substantive or symbolic – and indeed has the potential both to highlight conflicting agendas and even to provoke widespread ridicule.

  • Under normal circumstances, the partial but damaging reversal of Obama’s Cuba opening would elicit hostility from Latin American leaders, but tensions over Trump’s dramatic departure from traditional U.S. positions on trade and climate, and his caustic posturing on immigration policies that especially impact Mexico and Central America, may overshadow regional bewilderment at Washington’s renewed hostility towards Havana. Latin American countries that Trump jilted at the altar when he summarily withdrew the United States from the Trans-Pacific Partnership (TPP) have begun moving on – negotiating trade deals with China while uniting with Canada and seven Asian countries to form “TPP 2.0.”  That chauvinism and race, not security, are at the heart of Trump’s “Great Wall” proposal is widely understood and resented in Latin America.
  • Trump’s postures and policies are by no means the only strain on the summit agenda. Venezuela’s meltdown and impending elections are of grave concern to virtually all leaders who will attend, whether President Maduro does or not, yet there is no consensus on what to do about the problem and the humanitarian emergency it has spawned.  Questions about the legitimacy of Brazilian President Michel Temer diminish the standing of the hemisphere’s second largest democracy.  Tensions swirling around the Summit’s host – Peruvian President Pedro Pablo Kuczynski (PPK) – are also intense.  PPK is but one of numerous incumbent and recent Latin American presidents under siege by corruption allegations.  Strong evidence of corruption among presidents of Latin American countries big and small will hardly be news to anyone, but the scope of the problem – and the strength of public rejection of it – means many governments will come to the Summit wounded and distracted.

The irony that the theme of this year’s Summit is “Democratic Governance against Corruption” will be lost on no one, as the Lava Jato investigations and lesser inquiries reveal the venality of government after government.  OAS Secretary General Luis Almagro, a co-host of the Summit, has done his fair share to rescue the region from authoritarian and corrupt leaders – challenging both Maduro and the tainted reelection of Honduran President Juan Orlando Hernández – but few others in the hemisphere have lived up to the lofty rhetoric about democracy and anti-corruption at previous summits.  The Peruvian national host is hardly in a position to steer the Summit to take on Trump on matters such as TPP.  If he were not so badly tainted by recent events, he could have represented the globalists in the Americas who are convinced that a misguided America First posture issuing from Washington amounts to a U.S. abdication of leadership on trade, climate, and other pressing matters.  Yet it is now doubtful whether he will be able to say anything more than “Welcome to Peru.”  The smiling faces in the protocol photos will conceal the striking disjuncture between the Summit agenda and its protagonists.

 February 6, 2018

Prospects for Reproductive Rights Dim with End of “Left-Turn”

By Merike Blofield and Christina Ewig*

A large group of women and men gather in front of statue in a plaza.

A demonstration against abortion in Córdoba, Argentina, shortly after President Mauricio Macri’s election. / Marco Camejo / Flickr / Creative Commons

The end of Latin America’s “pink tide” suggests the region will make little progress in protecting reproductive rights in coming years and may even face some policy reversals.  With five Latin American governments slated to elect new leaders in 2018, and with recent elections of right-leaning governments in Chile and Argentina, Latin America may well be concluding the left-turn that has characterized the region’s politics since the early 2000s.

  • The past two decades of pink tide governments coincided with a flurry of legislative activity on abortion policy – in sharp contrast to previous decades of policy stasis, when high rates of clandestine abortions coexisted with restrictive laws. Since the turn of the millennium, abortion laws have been revised by Latin American legislatures and courts on 11 separate occasions in eight different countries.  Even in countries where legal reforms did not go through, legislatures debated bills at a prevalence not seen before.
  • Several left governments have carried through liberalization in response to public opinion and social mobilization. Last August, for example, the Chilean Supreme Court upheld its Congress’ liberalization of abortion law – to allow for abortion under three circumstances (threat to life; fatal fetal defect; rape) – overturning the absolute prohibition that had been in effect since the last days of the Pinochet military regime in 1989.  Some left governments went even further:  Uruguay legalized abortion in 2012, and Mexico City did so even earlier, in 2007.

Yet left governments have not been unequivocally liberal; some have actively upheld or enacted conservative laws, even absolute prohibitions.  In 2006, the Sandinista Party in Nicaragua reversed course from allowing therapeutic abortion to supporting absolute prohibition, while Ecuadoran President Rafael Correa in 2013 rejected a provision allowing abortion in the case of rape.  The FMLN in El Salvador has doggedly, even brutally, enforced a total prohibition, to the detriment of many (primarily poor) women’s lives.  In a recent study (published in Social Politics), we show this split in policy roughly follows the “institutionalized” vs. “populist” typology of lefts.

  • Institutionalized parties – like those in Chile and Uruguay – have channels in place for civil society organizations, including feminist ones, to have bottom-up influence. Given their respect for the rules of the game, however, the institutionalized lefts are also likely to face well-organized conservative opposition, which slow down reform, shape final legislation, or even veto it altogether.  In Uruguay and Chile, feminists had a voice, but conservatives were also are able to block, slow down, and water down liberalization.  This is why the Uruguayan reform took so long and why in both cases the final legislation is less liberal than the original proposals.
  • By contrast, populist governments, like those of Nicaragua under Daniel Ortega and Ecuador under Rafael Correa, often see advocates for liberalization as political threats – particularly feminists who also represent more general claims for individual autonomy and pluralism. Moreover, an issue like abortion, where the practical costs of a restrictive stance are born almost exclusively by low-income women, is likely to be used by populist leaders as a pawn in a power struggle with well-organized, influential religious forces.

Although we systematically analyzed only abortion politics, we found that sex education, contraceptive access, and other reproductive health policies more broadly have followed similar dynamics in Ecuador, Nicaragua, Chile, and Uruguay.  For example, the Uruguayan left government expanded sex education after assuming power in 2006, while in Ecuador, leaders appointed in health bureaucracies sought to reduce access to publically provided reproductive health services.  Nicaragua, on the other hand, has the highest rate of teenage pregnancies outside sub-Saharan Africa.

As Latin America’s left shift appears to be coming to a close, reproductive health policies promise to remain contentions – and abortion continues to be a public health crisis across most of Latin America even with the limited liberalizations of the past decade.  The Alan Guttmacher Institute recently estimated that 6.5 million abortions are annually performed in the region.  The vast majority are still done in clandestinity, resulting in high maternal mortality and tens of thousands of annual hospitalizations, which affect low-income women the most.  While it is unlikely that recent changes will be reversed in the more institutionalized settings, the rightward shift that is occurring among especially these countries does not bode well for further liberalization and resolution to the abortion crisis.

 January 18, 2018

 * Merike Blofield is Associate Professor of Political Science at the University of Miami.  Christina Ewig is Professor of Public Affairs and Director of the Center on Women, Gender and Public Policy at the Humphrey School of Public Affairs, University of Minnesota.

And the Winner is… Trump in Latin America

By Nicolás Comini*

Donald_Trump_and_Mauricio_Macri_in_the_Oval_Office,_April_27,_2017

U.S. President Trump and Argentine President Macri meet in the Oval Office. / Official White House Photo by Shealah Craighead / Wikimedia / Creative Commons

Criticism of U.S. President Donald Trump’s policies toward Latin America ranges from mild to furious in the region and among many U.S. Latin America watchers, but that anger is not likely to drive greater regional unity and demands for a more balanced relationship.  Trump’s rhetoric – emphasizing sovereignty, nationalism, and protectionism – have long been popular concepts in many countries of the region.  During Latin America’s recent “turn to the left,” for example, political leaders embraced a developmentalist emphasis on using tariffs and non-tariff trade barriers to give domestic industries an advantage in national economic expansion strategies.  But the U.S. President’s statements have generally infuriated not only the left as reflecting bias on an array of issues, such as immigration, but also the right.

  • Trump’s policies contradict the prescriptions that Washington has been advocating – and most conservative politicians have embraced – for Latin America for many years. Those prescriptions have emphasized free trade but touched on other issues as well, such as the shift (symbolic and material) of resources from traditional national defense to the “war on drugs.”  Trump’s “America First” approach undercuts his natural allies in Argentina, Brazil, Mexico, and elsewhere.  It has also given their leftist opponents a sense of legitimization of their anti-Americanism speeches, something that is surging also because of Washington’s new policies toward Cuba.
  • The U.S. summary abandonment of the Trans-Pacific Partnership (TPP), conservatives’ last great hope for deeper trade integration with the United States, left them angry. According to the ECLAC, 73 percent of all FDI in Latin America in 2016 came from the United States (20 percent) and the European Union (53 percent).  Individuals with strong anti-Communist credentials in Colombia, Chile, and Peru are all flirting with joining China’s Regional Comprehensive Economic Partnership (RCEP).

Regional organizations show no sign of providing leadership in how to respond to U.S. policy.  UNASUR is fading rapidly, in part, because it was labeled by the new conservative governments as too Bolivarian and anti-American.  Something similar is happening with the CELAC.  MERCOSUR is struggling, in part, because of the political tumult in Brazil.  Indeed, most governments are trying to remain friends with Washington, prioritizing bilateral agendas in detriment of regional (multilateral) institutions and mechanisms.

The surge in resentment toward Washington – within and among Latin American countries – is unlikely to lead to increased regional unity.  Internally, the left and right may agree that Trump is harming their interests, but their reasons are different and prescriptions for dealing with it are far apart.  On a regional basis as well, the current context accelerates the atomization of the region – and threatens to expand the bargaining power of the great powers of the United States, China, Germany, or Israel.  Although China is making inroads, in the end the United States has, and will retain, the greatest influence in Latin America – and the lack of efficient regional decision-making will prolong that situation.  Latin American fragmentation will create an image of acquiescence – and President Trump will think he is not doing so badly in the region.

October 18, 2017

* Nicolás Comini is Director of the Bachelor and Master Programs in International Relations at the Universidad del Salvador (Buenos Aires) and Professor at the New York University-Buenos Aires.  He was Research Fellow at CLALS.

Chile’s Transition to Clean Energy Matrix

By Thomas Andrew O’Keefe*

Giant wind turbines in Northern Chile

Parque Eólico Canela in Coquimbo, Chile, one of many wind-producing farms in Northern Chile. / Wikimedia / Creative Commons

Since Michelle Bachelet’s return to the presidency in March 2014, Chile has aggressively pursued an ambitious program to transition the country’s energy matrix toward non-conventional renewable resources.  The emphasis on non-conventional includes mini-hydro facilities with a generating capacity under 20 Megawatts, geothermal, solar, wind, biomass, and potentially ocean currents.  Chile aims to generate 60 percent of its electricity from domestic renewable energy resources (including all forms of hydro) by 2035, and 70 percent by 2050.  To encourage that transition, Chile is one of only two Latin American countries (the other being Mexico) to establish a carbon tax, under which energy-intensive industries and utilities that exceed mandated emissions levels are charged US$5.00 per ton of CO2 emissions.  Chile’s drive to adopt a cleaner energy matrix is motivated as much by a desire to reduce greenhouse gas emissions as it is to enhance energy security.

  • During the mid-1990s, Chile faced consecutive years of severe drought that had hugely detrimental impacts on the country’s dams, responsible at the time for around 50 percent of the country’s electricity. An abundance of natural gas in neighboring Argentina led to the construction of pipelines across the Andes and new thermal generators in Chile, but Argentina began cutting natural gas exports in 2004 (and eventually stopped them altogether) because disastrous policies there had caused domestic shortages.  Bolivia, in turn, rebuffed Santiago’s entreaties to purchase its gas unless Chile granted it territorial compensation for the loss of Bolivian access to the Pacific after the 19th century War of the Pacific.  Chile had to build two expensive receiving terminals to import Liquefied Natural Gas (LNG) from East Asia as well as Trinidad and Tobago.  The Chileans were also forced to use more coal and diesel, exacerbating the already precarious air quality in many Chilean cities, particularly during the winter.

In recent years, more than half of all investment in non-conventional, renewable energy in Latin America and the Caribbean has been directed to Chile, primarily to build solar and wind parks to supply the mining industry in the north of the country.  The shift to renewable energy has largely been financed by the private sector, with no subsidies other than reimbursement for small-scale photovoltaic and other nonconventional contributors to the grid at the full retail price (and no transmission charge).  Chile’s antipathy to subsidies reflects the country’s market-based economic orientation and a conscious decision to prioritize state-of-the-art renewable technology sourced from elsewhere rather than encourage the development of its own industry.  The recent investment boom in renewables was driven by the business-friendly climate, the fact that Chile is not a significant hydrocarbons producer, and the inflationary impact of the last three years of drought on the price of hydroelectricity.

Chile has several other things going for it in achieving its goals, including a good regulatory framework and resources that are in growing demand.  Chilean regulators allow generators to sell electricity in only one of three time blocks during the day — giving solar and wind power a competitive edge in public purchase agreement auctions.  This more than halved the bidding price offered by generators and made solar power competitive with natural gas and even electricity sourced from hydro.  In the near future, as the country’s energy matrix shifts to greater reliance on solar and wind power, Chile intends to utilize hydroelectricity to supply peaks in demand for electric power (usually in the evening hours) to make up for intermittencies in sunshine and wind.  (At the moment, fossil fuels provide that function.)  New developments in storage technology will also help.  Chile is one of the world’s largest producers of lithium, needed to make storage batteries.  The interconnection of Chile’s northern and central grids in 2018 should also facilitate greater use of different renewables and redirect the electric power generated from them to where it is most needed.  Chile, already a leader in Latin American alternative energy production, is poised to enhance that position.

September 11, 2017

* Thomas Andrew O’Keefe is President of Mercosur Consulting Group, Ltd.  He taught a seminar on “Energy and Climate Cooperation in the Americas: The Role of Chile” at Stanford’s Santiago campus during the summer 2017 quarter.

Brazil’s Foreign Policy:  A Regressive Path?

By Gilberto M.A. Rodrigues*

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Brazilian Foreign Minister Aloysio Nunes speaks at a MERCOSUR meeting regarding the situation in Venezuela. / Divulgação / Flickr / Creative Commons

President Dilma Rousseff’s foreign policy was less active than President Lula’s, but Brazil has lost prominence in international politics even faster since her impeachment almost exactly one year ago.  According to the Soft Power 30 survey, Brazil now ranks 29th in international influence, having ranked 24th in 2016.  One reason is both domestic and political:  President Temer’s government has had to struggle to be recognized as legitimate.  The other is strategic: a wrong bet made by the new heads of Brazil’s foreign affairs.

  • Temer left the Ministry of Foreign Relations in the hands of the Social-Democratic Party (PSDB), appointing São Paulo Senator Jose Serra – at that stage a potential presidential candidate – as foreign minister. Temer and his PSDB partners’ most important project was to align Brazil more closely with the United States.  In parallel, they sought to progressively dismantle the South-South international policy that President Lula championed and President Rousseff continued, with its focus on the BRICS countries.
  • Their approach was based, however, on the expectation that Hillary Clinton would win the U.S. election, and they had no “Plan B” for collaboration with the Trump Administration and its significantly different view toward Latin America and Brazil. Unable to rescue the heart of his policy, Serra resigned after nine months, claiming health issues, and another PSDB senator and political ally, Aloysio Nunes, took the job with a clear plan to align Brazil with the international market.  Brazil’s application to the OECD was done fast and without controversy.

At the same time, several important issues have been disempowering Brazil’s foreign policy.

  • MERCOSUR and UNASUR. The most important diplomatic capital Brazil built in the past 20 years – launched by President Cardoso, deepened and revamped by Lula, and maintained by Dilma – was the broad South American cooperation built in MERCOSUR and, later, UNASUR.  Temer has refocused the former on trade and essentially abandoned the latter.  The country’s vision for broad integration has fallen prey to ideological suspicions.
  • Venezuela. By shaming President Maduro as a dictator, Brazil essentially disqualified itself as a possible neutral player in efforts to resolve the Venezuela crisis, the most important challenge in South America today.  Many Brazilian observers believe Brasilia’s absence could mean a blank check to a still unknown and unpredictable White House policy on Latin America.  President Trump’s recent suggestion of a possible military intervention in Venezuela has deepened those concerns.
  • Corruption. The Temer Administration is poorly positioned to push for the sort of initiatives that many governments and societies need to combat corruption.  The problem has deep roots, but Temer’s rise to power in the wake of a campaign attacking alleged corruption by Lula and Dilma gives greater salience to his own shortcomings.  The Attorney General’s Office and the Lava Jato investigators have accused him and most of his ministers of corruption.  This makes Brazilian foreign policy fragile and contradictory in this field despite the government’s efforts to cast itself as a champion of integrity.  It is much more like “a saint with feet of clay,” according to a Brazilian saying.

President Temer and his Foreign Ministers’ two-pronged approach to foreign policy entails risks for Brazil’s international clout.  By deconstructing the so-called “ideological diplomacy” of Lula, Dilma, and their Workers Party, the new team is eliminating an agenda that has achieved unity, albeit in fits and starts, of the continent around a series of issues relevant to them all.  Their efforts to refocus policy on trade and financial issues – essentially a neoliberal agenda that most of the region has rejected – may ultimately yield them economic and political benefits at home, but at the cost of moving Brazil off center stage and reducing its ability to provide regional leadership in the future.  The country’s inability to drive a regionally-supported resolution in Venezuela is already being felt.  Even if this reorientation of foreign policy is ultimately successful, the political capital that gave Brazil a higher international profile as a major world democracy will be difficult to rebuild. 

September 6, 2017

*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.