While the term “banana republic” refers to just about any form of political instability occurring in Latin America, the term originally arose with reference to Central America (Honduras, Guatemala, Nicaragua, Panama, El Salvador) where the American-owned United and Standard Fruit companies engaged in fruit production and export, and often dominated economically and politically. In these countries legitimately elected regimes were overthrown, often with US complicity, if not direct military intervention.
Read MoreWith the decline in commodity prices and the receding of the pink tide (the recent removal from power/defeat of various populist left governments), we are now seeing an emergence of two linked phenomenon: a return to neoliberal policies and the emergence of the political right, increasingly with populist features. Populist right movements are garnering significant electoral support; successfully recruiting supporters from a wide spectrum of social sectors, including from among the poor—the very part of the population whose expansion is linked to neoliberal reform. While the most notable case is of Brazil under Jair Bolsonaro, another worrisome case is that of Costa Rica—the very country widely assumed to be one of the region’s strongest bastions of liberal democracy and civil liberties.
Read MoreWhen Latin America made the transition to electoral democracy in the mid-1980s, the process was hailed as marking the end to the region’s fluctuations between authoritarianism and democracy. Recent, events, especially in Brazil, tell a different story. Between 2006 and 2011, it seemed possible that the program of a moderate social democratic program could be reconciled with a neoliberal global orientation: Brazil dramatically reduced poverty, public spending was kept in check, while big businesses expanded both exports and investments abroad. Now we see a sharp turn to the political right in Brazil and the inevitability of policies that will contribute to social deterioration. With 99 percent of the votes in, right populist presidential candidate, Jair Bolsonaro, leads with 46 percent of the vote. He is expected to win the second round of voting on October 28.
Read MoreNAFTA renegotiations are in full swing. The second round is currently underway in Mexico City with the main issue emerging as differential labor standards among the three countries. The main concern on the part of Canadian and U.S. negotiators and their respective trade union movements is the much lower wages and poorer working conditions in Mexico as compared to the other two countries. The argument of course is that lower pay and poor working conditions in Mexico are at the root of the flow of jobs southward, putting downward pressure on labor standards in the U.S. and Canada and swelling corporate profits. The argument that NAFTA has been a bad agreement for working people in all three countries is a compelling one. That being said, can a renegotiated NAFTA agreement do anything much to address workers’ plight in Mexico? Some observers are optimistic, even seeing Trump’s push for better wages and working conditions as potentially positive for Mexican workers. However, I have my doubts.
Read MoreOn May 28, the EZLN (Zapatista National Liberation Army) and the Indigenous Council of Government (CIG), selected María de Jesús Patricio Martínez, an indigenous women from the Nahua community of the state of Jalisco, to run as their presidential candidate in the 2018 election. As she readily admits, she has no chance of winning. In fact, just obtaining the opportunity to run for the presidency will be a struggle since electoral law requires that an independent candidate obtain some 850,000 signatures across 17 of the country’s 32 states.
Read MoreThe mainstream media has characterized Emmanuel Macron’s victory in yesterday’s French election as a resounding defeat of right wing authoritarian populism. Macron, heading up a new political party called En Marche! (Forward!), won 65 percent of the popular vote against right wing populist Marine Le Pen’s 34 percent. Despite the rise of populist authoritarian movements in an increasing number of countries, global elites continue to laud the unquestionable benefits of free trade and other features of the neoliberal policy prescription.
Read MoreLack of employment opportunities has been a longstanding feature of most Latin American countries, including Mexico, and one of the key reasons for historically high levels of poverty, deprivation, corruption, crime, and political violence. Lack of sufficient decent employment is now a widely recognized problem in the United States—one of the crucial issues in the election of Donald Trump was the loss of jobs, particularly in the manufacturing sector.
Read MoreU.S. president-elect Donald Trump has targeted Mexico as one of the main sources of job losses in the U.S., leaving many people with the mistaken impression that countries such as Mexico have been the winners in the global competitive game. However, today’s liberal trade and investment order, as I suggested in an earlier blog post, has not, on balance, benefitted Mexico. From 1996 to 2015, the Mexican economy has grown at the average annual growth rate of only 1.2 percent. With such lacklustre growth, the country’s poverty rate increased by 2.9 percent between 2008 and 2014. Inequality has also risen. While the top 10 percent saw their incomes rise, the bottom 50% of the population either failed to see their situation improve, or saw it deteriorate. In 2012, the total household income of the bottom 10 percent of the population was substantially lower than it was in 2008, despite some slight improvement in 2010.
Read MoreOn Monday of last week, President-elect Donald Trump, outlining plans for his first 100 days in office, declared that he would withdraw the U.S. from the Trans-Pacific Partnership (TPP) trade deal and replace it with “fair” bilateral agreements. As the Japanese Prime Minister, Shinzo Abe, one of the 12 signatories to the deal, declared, the TPP “without the U.S, is meaningless.” The agreement aimed to lower barriers on trade and investment among twelve countries (bordering the Pacific Ocean: US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru), accounting for approximately 60 percent of the world economy and 40 percent of the world’s population.
Read MoreMore people in Latin America die as a result of criminal violence than in anywhere else in the world. While 8 percent of the world’s population lives in Latin America and the Caribbean, the region accounts for roughly one-third of the world’s homicide cases. Latin America's per capita homicide rate is 23.4 per 100,000 people, nearly double the rate in Africa, a region sometimes mistakenly believed to be the most violent continent.
As is widely known, organized crime, particularly crime involving drug trafficking, is one of the most important sources of the violence in the region, with serious implications for physical security and general human well-being, particularly for those living in poor communities. Some recent research has noted the worrying sign of close links between political elites and organized crime—a situation that does not bode well for either the quality of democracy or for substantial improvement over the long-term—despite some recent improvements in specific cases.
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