Introduction to Latin America: Twenty-First Century Challenges

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Peadar Kirby

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    Dedication

    For Judy Ress and David Molineaux, dearest friends, who live so generously the values that continue to make Latin America a place of hope

    List of Tables

    • 2.1 Quality of life indicators for Latin America and the Caribbean 20
    • 2.2 Poverty in Latin America and the Caribbean, 1987 and 1998 23
    • 2.3 Human Development Index for regions, 1975 and 1999 25
    • 3.1 Dependence on commodity exports, circa 1913 37
    • 4.1 Latin America's performance, 1945–2000 65
    • 7.1 Impact of unemployment on different groups in Latin America, 1994 and 1999 113
    • 8.1 Cuba's social achievements 130
    • 9.1 Support for and satisfaction with democracy, 2000–1 145
    • 9.2 Levels of confidence in institutions, persons, 1996 and 2001 146
    • 11.1 GDP growth rates by region, 1820–1998 188
    • 11.2 GDP per capita and percentage increase, 1990–2000 192
    • 11.3 Foreign direct investment in Latin America by country and sub-region, 1999–2001 193

    List of Boxes

    • 1.1 Differing interpretations of Latin America 7
    • 2.1 Measuring human development 25
    • 3.1 Illustration of dependence 38
    • 3.2 Brazil develops an automotive industry 43
    • 3.3 Harnessing technology for socialist planning 45
    • 4.1 ‘Many and varied neoliberalisms’ 54
    • 4.2Maquiladoras: Industrialization by invitation 58
    • 4.3 Is dollarization an answer to volatile financial markets? 63
    • 4.4 Stiglitz's verdict on the 1990s in Latin America 66
    • 4.5 Selling sex in the Dominican Republic 68
    • 5.1 Privatization in Argentina 75
    • 5.2 Money and politics 80
    • 5.3 Popular participation in Bolivia 84
    • 5.4 Social funds: Models of the new social paradigm? 86
    • 5.5 Neoliberalism or neostructuralism? 90
    • 6.1 Bolívar's dream 95
    • 6.2 The European Union: A counterweight to the USA? 101
    • 6.3 Different models of regional integration 103
    • 6.4 Rio Group: ‘19 countries with one voice’ 105
    • 7.1 Income and nutrition in Mexico 111
    • 7.2 The informal economy: Engine of job creation 115
    • 7.3 Venezuela: Turning a natural disaster into a human one 118
    • 7.4 ‘Breakdown in community life’ 120 8.1 Are Cuba's blacks deserting the revolution? 135
    • 9.1 Offering Mexicans ‘democracy lite147
    • 9.2 The PT and popular participation in Porto Alegre 151
    • 9.3 Hugo Chavez: The last revolution of the twentieth century? 154
    • 9.4 The UDI: The rise and rise of Chile's new right 157
    • 9.5 Plan Colombia: Towards another Vietnam? 160
    • 10.1 Democratizing Haiti: Civil society's role 165
    • 10.2 ‘Popular participation’ or political control? 170
    • 10.3 Ecuador: Indigenous contest the state 175
    • 10.4 World Social Forum: ‘Another world is possible’ 179
    • 11.1 ‘The sickness of the new millennium’ 190
    • 11.2 Latin American companies go global 194
    • 11.3 ‘An agenda for the global era’ 196
    • 11.4 Argentina's crisis: Is globalization the culprit? 202

    Preface

    For much of the 1990s Latin America and the Caribbean all but disappeared from the horizon of interest of the world's news media. After two decades during which brutal military dictatorships, revolution first in Chile and then in Nicaragua, and guerrilla struggles in El Salvador and Guatemala had captured the world's attention, the casual observer could be forgiven for thinking that the embrace of the free market had magically resolved the region's problems. Indeed, sections of the media explicitly reported that this was so, like the World Bank confusing wishful thinking for fact. Therefore, when Sage Publications' commissioning editor for politics and international studies, Lucy Robinson, suggested to me in late 1999 that the time was ripe for a new introductory textbook on Latin America, she found a ready response. After a decade (and in some countries more) of thorough liberalizing reforms in the economies of virtually all the countries of the region, and at a time when the region's states were, for the first time in its history, ruled by elected civilian governments (with the exception of Cuba), the time did seem ripe for a new introductory overview that would take stock of these sweeping reforms, assess their impact on the lives and livelihoods of Latin Americans, and offer some diagnosis of the region's prospects as it entered the new millennium.

    This daunting undertaking would not have been possible without the support and practical help of a large number of people. Facilitated by being granted a year's sabbatical leave from my academic duties in Dublin City University, I was able to make this book my principal undertaking over that period. Moving with my family to Santiago, Chile, the staff of the Political Science Institute at the Catholic University of Chile provided me with an ideal academic setting in which to undertake my research and begin my writing. While I am grateful to all my colleagues there, both academic and administrative, my special thanks go to Dr Alfredo Rehren, the Institute's director, for his warm welcome to me, to Professor Patricio Valdivieso who could not have been kinder or more helpful in everything from academic contacts to satisfying my need for an occasional drinking partner, and to Ms Adriana Sanchez, the Institute's secretary, who with the greatest efficiency and endless patience provided much needed administrative support. I also wish to thank the students who took my courses and coped with my less than perfect Spanish with good humour. I learnt a lot about Latin America from their contributions to my classes and I was impressed by their high academic standards. As a family, our immense gratitude goes to our dear friends David Molineaux and Judy Ress, whose encouragement and practical support from the moment we first suggested we might move to Chile for a year made sure it happened. Indeed, without David and Judy's hard work we would not have had an ideal house awaiting us when we arrived and our daughters booked into a school that made all the difference in helping them settle in. To Judy and David I dedicate this book. My very special thanks go to the National Committee for Development Education, which gave me a very generous grant to help defray my research costs, allowing me to travel more widely in Latin America to find out at first hand the situation in various countries. The many people who gave me most willingly their time and shared their intimate knowledge of their countries with me are far too numerous to mention by name. Suffice it to say that in Chile, in Mexico, in Argentina, in Venezuela, in Bolivia, in Peru and in Ecuador, I was truly astonished by such people's generosity with their time and their expert knowledge. Many of them gave me books and reports, all of which proved immensely valuable to me in writing this book.1 I only hope that they think it does some justice to the complexity and diversity of each and every national situation throughout Latin America.

    I wish to say a very special word of thanks to Lucy Robinson of Sage, without whose initial suggestion I would never have begun thinking of writing a book like this. From our first meeting she has been constantly supportive and encouraging, as was her assistant, Claire Roberts, with whom I was dealing regularly during the writing of the book. Claire left Sage somewhere between Chapter 7 and Chapter 9 and I wish her well in her new job. Though her replacement, David Mainwaring, arrived late in the life of this project, he took it on with an enthusiasm and commitment for which I am very grateful. I thank all those who read the chapters as they were being produced and whose comments helped me a lot – the two readers whom Sage used as referees and the following friends and acquaintances: Ann Boran of Chester College, Benedicte Bull of the Centre for Environment and Development at the University of Oslo, Cris Kay of the Institute of Social Studies in The Hague, Fernando Leiva of the State University of New York at Albany, and Paddy Reilly of the Development Studies Centre, Kimmage Manor, Dublin. Finally, and of course not least, my heartfelt thanks go to my long-suffering family who always seem to have a distracted and preoccupied partner and father to put up with. I marvel at the positive way both Bríd and Caoimhe embraced the unknown in moving to Chile, to a strange language and far from their friends. I know it wasn't always easy for them but I hope its memories will long remain with them as a positive and enriching experience. And to Toni, who, following initial hesitation and caution, took it all in her stride, both learning a huge amount and giving a huge amount to those with whom she worked in Chile, all I can say is that none of this would have been possible without her.

    PeadarKirbyDublin

    1 All translations of Spanish texts for this book were done by the author.

    Maps

  • Useful Websites

    The following websites will enable the reader to explore further many of the topics covered in this book, keeping in touch with developments and gaining an immediate knowledge of the positions and strategies of key actors.

    This list should be regarded as a set of starting points for exploration. By no means does it exhaust the almost limitless range of possibilities provided by the internet for accessing further information, and readers are encouraged to use the many links provided at the sites listed to take them further. However, one word of caution is advisable when surfing the net: many sites encountered may provide unreliable and unsubstantiated information; indeed, there are those that provide little more than prejudiced opinions not based on fact. Seek to ensure therefore that the site is hosted by a responsible organization and develop the habit of treating information encountered on the internet with caution, always double-checking if there is any doubt about its veracity. If this is done, the internet is an invaluable tool for students, though always as an aid to rigorous analysis, never as a substitute.

    Academic and Policy Analysis

    Two major sites containing a wealth of academic information and analysis relating to Latin America with large numbers of links to other relevant sites are:

    FLACSO is the Latin American Faculty of Social Sciences with centres in a number of Central American and South American countries. Its site, in Spanish, is at:

    The website of the Society for Latin American Studies, SLAS, provides links to all the major academic centres of Latin American studies in the UK and others in Western Europe:

    The US-based Latin American Studies Association, LASA, is at:

    The Americas Program of the Interhemispheric Resource Center has available a range of documentation on US policy and major developments in Latin America, such as NAFTA. It is at:

    The Summit of the Americas Center includes up-to-date information and analysis on developments relating to the Free Trade Area of the Americas and other inter-American projects. It is at:

    Inter-American Dialogue also produces a range of valuable information on the Americas. It is at:

    Organizations

    Many intergovernmental organizations also produce large amounts of high-quality academic and policy-oriented documentation and information. Among the leading ones are the following.

    The UN Economic Commission for Latin America and the Caribbean, ECLAC, is probably the best source of information and data on the economies and societies of the region. Its website, containing a large amount of papers and reports for downloading, is at:

    The website of the Inter-American Development Bank is also a source of large amounts of reports and studies, available for downloading. It is at:

    The United Nations Development Programme, UNDP, has country offices in most of the region's countries. Many of these publish reports on various aspects of development in their country. Access to these is available through the main UNDP website at:

    One principal activity of many national UNDP offices is to produce national or regional human development reports, applying to more local levels the analytical approach of the UNDP's annual Human Development Reports (HDR). There is a special website for the HDRs through which the text of many national and regional reports is also available for downloading. It is at:

    The International Labour Organization, ILO, has regional offices in Latin America and produces studies and reports on labour issues in the region. Its main website in English is at:

    while access to ILO documentation on Latin America is at:

    The website of the Organization of American States, OAS, contains documentation on inter-American political relations. It is at:

    The websites of the two main regional integration models, Mercosur and NAFTA, are:

    A comprehensive database of electoral results for countries of the region is available at the Political Database of the Americas. Its website is at:

    Latinobarometro is a source of reliable region-wide opinion surveys and other information. It is at:

    Sources of information from perspectives more critical of the dominant neo-liberal globalization are the World Social Forum and the Bretton Woods Project. Their websites are at:

    News and Information Sources

    Quality newspapers provide an excellent way of keeping in regular touch with developments in the region. A site containing links to large numbers of newspapers around the world, including throughout the Americas, is:

    A site providing a news service on the region is:

    Nacla publishes regular in-depth analyses of the region from a left-wing viewpoint. Its website, which provides access to the text of many of its publications, is at:

    While it covers the world as a whole and not just the Americas, the liberal US magazine Foreign Policy has a website with valuable links which is an excellent source of information on the Americas. It is at:

    One World is a website which, while covering development issues throughout the world, contains a wealth of up-to-date information and analyses on Latin America. It is at:

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    Index

    This index is in alphabetical, word–by–word order. It does not cover the contents list or preface. Location references are to page number, e.g.:

    indicates that information relating to this aspect can be found starting on page 2 and finishing on page 4

    indicates that information relating this aspect can be found in Box 11.4 which is on page 202, (similarly Table).

    Abbreviations: GDP = gross domestic product; Tab = Table


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