latin american countries seem to be leading in defining a different, more independent poltical agenda, less dicated to from D.C. i guess it helps that there's a huge leadership defecit in washington, and also that there are leadership gain in those countries i guess. plus the fact that people can see that most policies prescribed from places like Washington DC are not in their best interests. i am interested though in the perspective of people in countries like uruguay, argentina, venezuela and brazil to learn about how they seem the impacts of the shift in the outlook and perspective of their political leadership. is life much different from the days when policies were more dominated by world bank and IMF idealogies [not that they are completely free now]? what are the long term prospects?
the rest of us (especially in africa) have a lot to learn from latin america. the article below does a good job of breaking it down, although it is from the perspective of a major US newspaper.
http://news.yahoo.com/s/chitribts/20051031/ts_chicagotrib/bushheadingintodenofleftists
Bush heading into den of leftists
By Colin McMahon Tribune foreign correspondentMon Oct 31, 9:40 AM
ET
For a guy with the headaches President Bush faces, quiet time away and a pleasant visit with friends might be just the ticket. Too bad Bush is booked for South America this week.
The fourth Summit of the Americas will bring Bush into territory that is not quite enemy but far less allied than before. Half the hemisphere's leaders have changed since Bush took office in 2001 promising to make Latin America a priority. The region's politics have changed too.
A resurgent left is reshaping Latin America. This year alone, leftist protests toppled governments in Ecuador and Bolivia. A socialist took power for the first time in Uruguay. And Venezuelan President Hugo Chavez, swimming in oil profits and brimming with bravado, is rallying the region against the United States and its economic prescriptions.
All told, more than 320 million Latin Americans have seen their nations turn to the left in recent years--in Brazil, Argentina, Chile, Uruguay, Bolivia, Ecuador, Peru and Venezuela.
Yet this turn is not nearly so dramatic as some had feared and others had hoped. So far, complex economic and political realities have softened Latin America's leftist wave.
"The elections in Uruguay and elsewhere have been a referendum against failed policies. People have started looking for alternatives," said Ernesto Talvi, an economist and executive director of the think tank CERES in Montevideo. "But I don't think they are looking for alternatives that revert us to the failed policies of the past."
Markets failed the poor
During the 1990s and early in this decade, free-market policies--low tariffs, fiscal discipline, privatization--remade Latin American economies. But they failed to significantly reduce poverty or expand the middle class. Poor and working-class voters felt robbed by relentless austerity measures, the loss of state jobs and the cutting of government subsidies.
Leftist precepts that analysts had written off only a decade ago underwent a revival. And so did anti-Americanism. Growing numbers of Latin Americans came to accuse Washington of imperialism in foreign policy and of pushing neo-liberal economic policies that enrich the United States and the region's elite at the expense of the masses.
Bush in particular is identified with the policies that have come under criticism. Suspicion from fellow leaders and derision from protesters will greet the American president at the summit, which starts Friday in Argentina. But most of the hemisphere still looks to the United States for leadership, aid and investment.
This presents the Bush administration with an opportunity but also a thorny foreign policy challenge. Push its agenda too much, as the United States is accused of doing in confronting Chavez in Venezuela, and Washington is seen as meddling. Stand too far back, as the United States is accused of doing regionally since the Sept. 11 attacks, and Washington is seen as abandoning Latin American nations trying to do the right thing on human rights, trade and immigration.
U.S. officials acknowledge that the so-called pink tide rolling across Latin America has a mellow tint.
A few governments have raised tariffs to protect domestic industries, but there has been no wholesale return to protectionism. Social spending is rising, but treasuries remain committed to fiscal discipline. Leaders across the region extol the importance of attracting capital and investment, and last year two nations with left-of-center leaders, Brazil and Chile, recorded the highest percentage increases in foreign investment. Economic opportunity is hardly washing away.
Some left-of-center presidents, such as Brazil's Luiz Inacio Lula da Silva, have even come under criticism for being too conservative.
Brazilian turnabout
During his long career as a labor leader and his unlikely slog to the presidency of Brazil, da Silva railed against the free-market economic policies that have transformed his nation. But as the elected leader of the world's fifth most-populous country, da Silva is gambling that fiscal discipline and free markets will spur sustained growth, create jobs and provide the revenue da Silva's government needs to address Brazil's crushing social inequalities.
"Lula changed," said Marcilio Marques Moreira, a former finance minister who also was Brazil's ambassador to the United States. "I don't know if it was by conviction or by pragmatism, but in the process there was a certain type of conversion, at least in economic policy."
This conversion breaks the heart of da Silva's leftist allies. But da Silva's orthodox policies are credited with stabilizing Brazil's economy--and helping to insulate da Silva from an all-out political attack--during a corruption scandal that threatened his government.
That scandal has cost da Silva standing and influence in the region, and Chavez has benefited.
Because of the value of Venezuela's oil, Chavez for now can afford to challenge economic liberalism and even chase off some foreign investors. The Venezuela leader has won many fans with his calls for a "Bolivarian revolution" that would restore a large state role to national economies.
But elsewhere the new leftists are wary of isolating their countries from international credit markets and foreign capital. They are searching for a Latin American third way between unfettered capitalism and state-dominated socialism. They see private business as the engine of growth, but they are not content to leave job creation to the unforgiving market. They believe in free trade but want safeguards to make sure trade is fair.
This may not work, and most Bush administration officials and conservative economists say it will not. They blame corruption and poor execution of market policies, not the policies themselves, for their failure across Latin America. But the hardships and inequalities across Latin American have convinced most voters and the new breed of leftist leaders that the economic orthodoxy of the so-called Washington Consensus has failed them.
Holding off the radicals
The challenge now is for the new leftists to make their way work before radical approaches gain more favor. In some countries, the throwing out of the old has coincided with the rise of new political movements with a strong populist bent and a fervent anti-American agenda. Their commitment to electoral democracy is at best unproven.
So far, the Latin American third way is being built most convincingly by the market-minded socialists running Chile.
Chile has one of the world's most open economies, according to an annual international survey by the conservative Heritage Foundation. And it is the region's beacon for free traders. The left-of-center government of President Ricardo Lagos has aggressively pursued trade deals with countries in Europe, Asia and North America, and Chile's economy has grown more robustly and consistently than any other in the region.
Trade between Latin America and the United States has grown steadily every year since 2001 and has risen to a historic high. But trade between Chile and the United States has positively soared. A bilateral agreement that went into effect in 2004 between the United States and Chile spurred U.S. exports to that country by 33 percent last year, according to U.S. government statistics.
Chile, however, departs occasionally from orthodox neo-liberalism. It has placed limits on how quickly investors can move money in and out of the country, for example, to encourage long-term direct investment and advance "growth with equity."
At the same time, the Lagos government has expanded social programs. In the last 15 years, Chile has slashed the poverty rate to 18 percent of the population from 40 percent. And by doing so, Chile's leadership has brought voters on the far left more toward the center.
"We are being very aggressive in liberalizing and opening the economy," said Chilean Foreign Minister Ignacio Walker. "But we never lose sight that liberalization is the means and not the ends in itself--the means to achieve equitable and sustainable growth."
Argentina is more complex. President Nestor Kirchner's government flirts with price controls, protectionism, currency manipulation and other state interventions that dismay free marketers. But Kirchner has been far more fiscally conservative than his 1990s predecessors, who became darlings of the financial markets even as Argentina was borrowing its way toward a collapse that threw millions of its citizens into poverty.
"It is impossible to conceive of a country without fiscal discipline, correct administration, the care of reserves," Kirchner told the Buenos Aires newspaper Pagina 12, sounding more like a neo-liberal than a leader of his Peronist party.
Since Argentina defaulted more than three years ago on $100 billion in loans and interest, Kirchner has taken a hard line in dealing with creditors and foreign investors. Economists and other Latin governments are closely watching whether he can hold that hard line while ensuring that Argentina gets the capital it needs to continue its recovery.
Already leftists in Brazil, Ecuador and Bolivia are calling for their nations to follow Argentina's lead. They want to suspend debt payments and force renegotiations on private creditors and multinational lenders. But even left-of-center economists agree that such moves carry great risks. The populism espoused by Chavez and advocated by his followers would severely damage most Latin American economies by shutting them off from foreign investment, economists argue.
Bolivia, where street protests have forced two presidents from office in the past 18 months, is considered particularly worrisome. U.S. officials accuse Chavez and Cuba's Fidel Castro of seeking to use proxies such as coca farmer-turned-opposition leader Evo Morales to turn Bolivia into a Marxist, anti-American state. Even leftists such as da Silva and Kirchner, who rely on Bolivia for natural gas, have expressed concerns about a potential economic collapse in Bolivia and the splintering of democratic institutions.
Bush administration officials say a government's political shade is less of an issue than a nation's democratic stability. For one thing, the soundness of institutions matters more to investors than whether a government calls itself left or center or right. Foreign investors seek such qualities as consistent and transparent taxes and regulations, and a judicial system not overrun by corruption. The governments that deliver, no matter what their shade, are deemed suitable partners.
Rice `not worried'
"I am certainly not worried about the rise of left-of-center governments," Secretary of State Condoleezza Rice declared before the June summit of the Organization of American States.
But in an interview with the Miami Herald that was released by the State Department, Rice made clear that not all left-of-center governments were viewed the same way. She offered indirect if not exactly veiled criticism of Chavez. And she praised the Brazilians under da Silva: "They have been absolutely committed to a social agenda ... but doing it in a way that is responsible economically."
Da Silva has stuck with his current economic policy even under extreme pressure from his Workers Party base to employ populist and socialist remedies for Brazil's widespread poverty. That shows how deeply certain principles of the Washington Consensus have penetrated Latin American political and economic thinking.
"When Lula came into office, there was a lot of fear about how the government would manage the economy and a lot of confidence about how ethical the government would be," said Ricardo Ribeiro, an economist and political analyst with MCM Consultants in Sao Paulo. "It is ironic that we are seeing just the opposite."
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cmcmahon@tribune.com