Winning a Campaign on “Change” is Nothing New in Latin America; What is Next for the U.S?

The United States has just experienced a campaign based on “change we can believe in”; so perhaps the flow of ideas from north to south has finally shifted. Now, more than ever, it is important to look back at Latin America’s recent history and see what can be learned, and why it is important to do so.

 With the immense influence of international financial institutions and leading world powers, much of Latin America experienced the privatization, financial and trade liberalization that made up the neoliberal economic model.  Constrained by debt obligations and structural adjustment programs, governments were often faced with few options for policy alternatives.  The austerity programs that limited government spending did not allow for basic economics prescriptions such as deficit spending during downturns.  Instead, large sources of wealth and power were sold to the private sector to bolster the balance sheets.  While foreign investment skyrocketed, the realm for effective government policy was further diminished. Without power or money, governments were unable to address underlying social issues. As a result, the economic opening only caused further marginalization. The theory that economic opening leads to political opening does seem to be partially true, it has proved to be successful in ending one party rule (the PRI in Mexico, the Colorado Party in Paraguay). However, as previously described, the resulting governments were faced with a severely diminished ability to enact meaningful changes even when their campaigns ran on just that theme (Venezuela, Ecuador).

 As time has passed and results can be more accurately measured, one can see a political backlash against these economic policies.  While one cannot cast a uniform evaluation over the entire region, the governments of Hugo Chavez in Venezuela, Evo Morales in Bolivia, Lula in Brazil and Rafael Correa in Ecuador and Daniel Ortego in Nicaragua represent a fundamental shift in the political economy of Latin America.  This is important not only for the lessons one can learn about enacting real progressive economic and social change, but also because of the immense power these countries could potentially wield in the hemisphere.  

 On the first point, meaningful attempts at participatory democracy, worker led initiatives, and cooperative production could lead to a blueprint for a new social order more aligned with liberty and justice for all.  

 In Bolivia the rural and indigenous support that is leading the crusade against the entrenched interests and corporate elites is one of the finest examples of true participatory democracy. The organization of indigenous people and grassroots movements that have kept this movement alive offer an example of how the marginalized people of a society can work together to implement change. As the rest of the continent backs the government of Evo Morales, it is imperative for the U.S not to alienate itself from the region completely.

 In both Argentina and Brazil there are many examples of worker led company takeovers.  The MST in Brazil and worker led factories like Zanon ceramics in Argentina offer new and progressive modes of production.  Similarly, the cooperative movement in Venezuela extends across a variety of sectors. As more and more research is done on this very important development, we will be able to determine if it is an effective means for reaching a more equitable society. The countries where one can see this so called turn to the left do not just provide examples of progressive action, but are also powerful and strategically important countries.  Brazil has arguably inserted itself on the global scene more so than the rest, and with its immense land and potentially extremely productive economy will continue to rise on the global power scale.  As members of OPEC, despite the recent downward spiral of oil prices, Venezuela and Ecuador are extremely strategic in the global oil market.  It does not need to be argued that oil is more than just a commodity to be traded, but a source of invaluable wealth and power.

 United States policy in the region has been influential in the past to say the least. Now, after the past eight years, marked predominantly by the neglect of the region, the U.S should shift its focus back to what was once dubbed “our own backyard”. Much like past elections in Latin America became referendums on free market ideology so did the recent United States election.  If the current mandate is for change, and a more equitable distribution of wealth is a desirable goal, it would be appropriate to look to our southern neighbors.  How best to keep the momentum from the election going?  Perhaps the answer lies in rural Bolivia.  How best to reduce golden parachutes and the corporate hierarchy? Perhaps the answer lies in the worker led factories in Brazil or Argentina, or the cooperative movement in Venezuela. What is clear is that the one way flow of ideas from the U.S to Latin America must be reversed.  The region is fertile ground for progressive ideas that the U.S must learn from in order to enact true change.

 While the U.S has largely ignored Latin America, despite its efforts to pursue FTAs, other world powers have not.  China has been steadily increasing its trade flows with the region, and Russia appears to be reinserting itself as well (providing military assistance to Venezuela).  As frustration with the Bretton woods institutions and classical power structures like the G8 continue unaltered, developing countries will continue to try and make their voices heard.  The development of ALBA, and plans for a Bank of the South may provide power structures that will rival Western hegemony.  The role of developing countries in a truly globalized world economy will most likely continue to grow.  The developments are welcome, but a shift in the United States policy in the region is needed.  Cooperation must be stressed. The self-imposed alienation from the region must not continue. For these reasons it would seem that the new President may usher in change not just within than U.S but also in the relationship between North and South America. Without the will to look deeply at the region, involving cooperation and comprehension, the chance for real change regarding United States foreign policy in the region will be slim.   One must hope that President-elect Obama will be a good neighbor, and be willing to listen and take advice.