Latin America old problems aggravated

It is well known that Latin America suffers from old structural problems that hinder the political life and economy of the region.

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These include inequality, the weakness of states in providing public goods and services, the lack of productivity in their productive sectors, the absence of regional integration bodies, social distrust in political institutions, and the democratic political conflicts in several countries of the subcontinent, among others. What is less common is an analysis of the dangerous intensification and worsening of these old problems, these collective failures.

 

 

 

 

Let's see:

 

1) The internal fracture keeps growing. The creation of the group of Lima In 2016, the Venezuelan crisis divided the region in half. EU-CELAC summit planned for that year in San Salvador It was suspended for that reason and no one knows when it will resume. The meeting of CELAC in Mexico of the foreign ministers convened by Mexico as the new pro tempore presidency after Bolivia, has not attended  BrazilEven worse, Brazil has just officially informed Mexico that it is suspending its participation in CELAC. A diplomatic way of saying it is abandoning it. If CELAC is suspended, with whom will it maintain relations? European Union their strategic alliance?

 

La Pacific alliance, always cited as the most functional and efficient organization, operates externally but does not advance in the standardization of its markets to build a common economic space.  UNASUR not working, PROSUR He wasn't born (and almost better given the antagonistic ideological slant they gave him) and the SUNRISE It hardly exists.

 

Mexico and Brazil They live with their backs turned to each other, and there is no leadership whatsoever in the region. Both sides have enough internal problems to deal with without offering themselves up or pretending to be peacemakers or mediators in regional divisions.

 

It has been rightly said that Latin America He boxes at levels below his weight class and his potential on the international stage due to a lack of regional integration. This is true, and I fear it will continue to be so if these worsening trends don't change.

 

2) Its economy is stagnantSince 2014, economic growth has been minimal and the international context is unfavorable. The trade and technology war US-China, the American sanctions on monetary movements of Brazil and Argentina And the shift of production and trade to Asia paints a worrying picture of a region that is losing its appeal to investors due to the legal uncertainty stemming from its political instability. Some decisions by large international companies show that this disinvestment risk is not speculative. With the exception of Brazil, Mexico, Chile, Colombia And little else, the region risks becoming only a producer of commodities, and this, in times of low prices, accentuates the stagnation.

 

3) New social conflicts show a dangerous institutional and political instabilityThese are new middle classes, empowered by technology and the city, protesting against the lack of services, the cost of public transport, or the price of diesel. They are poorly paid workers without social security, facing increased precarity due to the informal economy. They are citizens fed up with a far from exemplary political class, displaying an alarming distrust of institutions. These are internal political tensions, stemming from causes specific to each state, that suddenly erupt and take us back to periods we thought were behind us. The truth is that Chile, Ecuador, Bolivia, Colombia, Peru This creates an unstable international picture that plunges the region into a conflictive image of social and political tensions, unattractive to trade and especially to investment.

 

At the same time, Venezuela and Nicaragua They become entrenched in their democratic deadlock, and no one sees a way out of these dictatorships. The strategy of United States And the Lima Group is failing, the European Contact Group is not connecting, and even Norway is losing hope for a peaceful and democratic negotiation. Four million Venezuelans are leaving the country, generating a humanitarian catastrophe in the country and the region, especially in Colombia, Peru and EcuadorAnd yet, a democratic solution for Venezuela is key, not only for Venezuelans, but for the region and the entire world.

 

This somewhat provocative description, due to its negativity, has become increasingly prevalent and has manifested itself in recent months of 2019 with the concatenation of events in Chile, Bolivia, Ecuador, Colombia and VenezuelaHowever, it coexists with the region's political changes during a very intense electoral period from 2017 to 2019. From both of these factors stems the advance of neoliberalism in the south, with the exception of ArgentinaThe social reaction and protests described, whose outcome remains pending, especially regarding the constitutional referendum in Chile and the democratic solution in Bolivia of the May elections. Coupled with Argentina's macroeconomic uncertainty and the ideological tension with Brazil, the Latin American outlook is extremely uncertain. Fortunately, as the Secretary General of the Segib, Rebeca GrynspanInstitutional and democratic politics remains the only channel through which the citizens of these countries express themselves. Argentina was the most notable example because such a complex transition of power was carried out flawlessly.

 

 Let us hope that this continues, but Latin America must be politically and socially stabilized. Europe must help by becoming more present and active in the region. By helping Cuba overcome its economic and social crisis. By offering to mediate the democratic blockade of Venezuela and Nicaragua. By intensifying its economic collaboration and cooperation in strengthening the rule of law and democratic institutions. By endorsing Mercosur and developing its trade throughout the continent based on its numerous trade and association agreements. By reviving the summit EU-CELAC As soon as possible, in agreement with Mexico, even without Brazil. Ultimately, this demonstrates their conviction that Latin America is a loyal friend and a key strategic partner in defending multilateralism, negotiated international trade, combating climate change, and upholding democracy and the rule of law.

 

Ramon Jauregui

President of the Euroamerica Foundation