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Aalborg Universitet New Latin American Development Strategies in a Changing Economic and Political Context Andersson, Vibeke; Christensen, Steen Fryba Publication date: 2008 Document Version Publisher
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Aalborg Universitet New Latin American Development Strategies in a Changing Economic and Political Context Andersson, Vibeke; Christensen, Steen Fryba Publication date: 2008 Document Version Publisher final version (usually the publisher pdf) Link to publication from Aalborg University Citation for published version (APA): Andersson, V., & Christensen, S. F. (Eds.) (2008). New Latin American Development Strategies in a Changing Economic and Political Context. Aalborg: Institut for Historie, Internationale Studier og Samfundsforhold, Aalborg Universitet. (Development Research Series, Occasional Papers; No. 7). General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.? 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Downloaded from vbn.aau.dk on: september 04, 2015 Proceedings from the conference New Latin American Development Strategies in a Changing International Economic and Political Context Editors: Vibeke Andersson & Steen Fryba Christensen Development Reseach Series Occasional paper No.7 Aalborg University, May 20-22, 2008 Proceedings from the conference new Latin american development strategies in a changing internationa economic and PoLiticaL context Editors: Vibeke Andersson & Steen Fryba Christensen 2008 Research Center on Development and International Relations (DIR) Aalborg University, Denmark and the authors Development Research Series Occasional Papers No. 7 ISSN ISBN Published by DIR & Institute for History, International and Social Studies Aalborg University Distribution Research Center on Development and International Relations (DIR) Fibigerstraede 2, room 93 DK-9220 Aalborg East Phone Fax Layout and word-processing Cirkeline Kappel and Anette Bæk Kjelgaard Print Novagraf A/S The Secretariat Research Center on Development and International Relations Att: Secretary Cirkeline Kappel Fibigerstraede 2, room 93 Aalborg University DK-9220 Aalborg East Denmark Tel Fax or Homepage: New Latin American Development Strategies in a Changing International Economic and Political Context Introduction Vibeke Andersson & Steen Fryba Christensen After a shift to neoliberal development strategies in the first Post Cold War period, Latin American development strategies are now substantially more heterogeneous. Changing international economic and political dynamics such as the economic rise of China and India, as well as the development crises in a number of Latin American countries after a decade of neoliberal reforms, are relevant contextual factors behind this tendency. As a consequence, development strategies have come to vary widely in Latin America both in terms of economic policy and foreign policy choices. Some countries have opted for strong nationalist policies such as the nationalization of energy resources and strong state intervention in the economy, while others maintain more market-driven approaches, while an emphasis on socially oriented policies seems to be on the rise across this divide. Along with this change in economic and social policy orientation a major shift in US- Latin American relations is occurring. This is particularly the case with regard to US-South American relations. After some two decades of alignment following the demise of the Cold War, there are signs that the United States and parts of South America are drifting apart and that U.S. influence in the region has diminished. At the same time, Mexico and Central America are increasingly being integrated with the US economy through economic ties and free trade agreements along neoliberal lines. In South America, several countries are departing from neoliberal development strategies as U.S. influence declines in the region. These trends may mean that the FTAA (Free Trade Area of the Americas) as envisioned by the United States will never become a reality. Relations between the US and its Latin American neighbours have historically fluctuated between close cooperation and open confrontation. After the Cuban Revolution, Cuba has been most consistently at odds with the US, while different US initiatives have been successful in keeping the relationship to Latin American countries relatively friendly. This has particularly been the case in the Post Cold War period. Mexico has joined the United States and Canada in NAFTA and several Latin American countries including the Central American regional grouping 3 have subscribed bilateral free trade and investment treaties with the US. When George Bush Sr. launched his Enterprise for the Americas Initiative (EAI) in 1990 and Clinton invited to the First Summit of the Americas in 1994 to discuss inter alia the idea of a Free Trade Area of the Americas (FTAA) which envisioned creating a free trade area in all of the Western Hemisphere, from Alaska to Tierra del Fuego, with the exception of Cuba that was not invited, Latin American governments were quick to embrace the idea. Only Brazil was somewhat cool to the idea and pursued a tactic of drawing out negotiations, but the feeling was that the Pan-American initiative would be successful in creating one large free trade area in the Western Hemisphere largely according to the principles proposed by the United States. The general assumption was that it would be dangerous for individual nations to stand outside such an area since they would be at a disadvantage in terms of access to the huge US market and in terms of attracting foreign investments. Today, the political landscape is quite different in the Western Hemisphere. Several South American countries have experienced severe economic and development crises in spite of, or perhaps due to, the embrace of neo-liberal reforms of free trade, deregulation and privatization. As a consequence the political tide has turned. Several countries have turned against the US and/or against a neo-liberal agenda largely associated with the United States. As a consequence, the FTAA is stalled and a number of South American countries are moving towards South American regional integration. Brazil and Mercosur form the backbone in this movement. While Brazil is not openly hostile towards the United States, it pursues an independent course in international and regional affairs. Other countries, notably Venezuela are openly hostile towards the current US government of George W. Bush, and completely against negotiating the FTAA which the Venezuelan government of Chávez sees as an imperialist strategy of domination and subordination of all of Latin America. In Bolivia, Venezuela, Ecuador and Argentina privatization reforms have been rolled back with nationalizations and changes in contracts and Argentina has defaulted on its large foreign state debt. Thus, the US strategy of making Latin America safe for business has not been completely successful. South American nations are resisting the move towards an FTAA that would reduce their autonomy through legal disciplines protecting business interests and reducing the room of manoeuvre for democratically elected governments. This kind of disciplines has been introduced in NAFTA and in bilateral agreements between the United States and different Latin American governments. So Latin America is responding in different ways to US initiatives. Some countries are further integrating their economies with the US, notably Mexico and Central America while others are charting a more independent course and stepping out of the shadows of the Eagle. 4 This collection of papers from the conference: New Latin American Development Strategies in a Changing International Economic and Political Context, held at Aalborg University in May 2008 deals with a wide range of topics concerning Latin American development strategies. The collection is divided into three chapters each treating different topics under a common headline. State and Economic Actors In Latin America the state articulates itself differently in different countries. The three case studies in this chapter deal with different actors within the state in three different countries: Chile, Brazil and Mexico. The contributions address the topics of State and actors from different angles but common for the papers is that they show different strategies in state-actor relations in different countries. Gonzalo Fallabella discusses the character and capacity of the Tripartite Agreements between government, unions and employers associations in Chile. He especially examines what the impact has been on economic liberalization and political transition since One of the findings in the paper is that progressive results in Chile are a consequence of full democratization and collective bargaining rights for unions allowing political and social actors to participate in the country s development. The special conditions in Chile s post dictatorship period has somewhat obstructed he possibilities for participation. Tripartism seems to have played a role in establishing an effective framework for transition: a liberal export economy lead by private business and an inclusive social agenda termed growth with equity. But on the other hand Tripartism has not solved the problems in relation to introducing labor and democratic reforms. Ana Margarida Esteves takes the debate on labour and democratic reforms to Brazil, where she discusses bottom-up resistance to neo-liberalism by looking at the Brazilian Forum of Solidarity Economy. The forum is created by social movements working with the peripheral economy with the purpose of facilitating access to resources, providing technical support to enterprises, networking with potential partners and clients and deliberating with the state on policies and policy proposals concerning this sector of the economy. She argues that resistance to neoliberalism and state policies is often played out in a multiplication of experiences, in different parts of the world, which combine political struggle with the development of economic activities based on alternative forms of production. These activities are based on the very same system of principles which their developers aim to see generalized into the mainstream. In Brazil an emerging coalition of movements is going beyond a protest-based strategy, by turning grassroots experiences of non- 5 capitalist production into a form of politics that presents itself as the rationale for a rethinking of the country s development model. Carlos Chavez Becker and Alejandro Natal Martinez discuss an example of an alternative economic model. Their paper is a presentation of a local fair trade grass root organisation in the region of Oaxaca, Mexico. Their findings suggest that excluded groups within the population in this case poor peasants in Southern Mexico can find alternative ways out of poverty by collaborating locally and establishing ties to western NGOs. In Mexico, as elsewhere, the consolidation of the globalization process, and very specially the regional integration, has resulted in groups of the population being excluded from this process. Therefore, in the past two decades, fair-trade emerged as a socially constructed alternative to market and state failures. More and more fair trade organizations are acting as an economic alternative for non-competitive small poor peasants that otherwise would not have any possibilities to participate in the market. Moreover it is an opportunity for local bottom-up indigenous development. Public opinion in Mexico has welcomed fair trade, since evidence indicates that it is also serving communities by launching empowering processes, by rearticulating local social capital; and by forcing public officers in charge of local development to interact with grassroots organizations, NGOs and activists, and other civil society local groups. Development Strategies This chapter is composed of papers that address development strategies from different angles. A number of papers are discussing the Mercosur. One is analysing a specific case of cash transfer for extremely poor people in Mexico, and one is discussing development strategies after the Washington consensus exemplified with the case of Argentina. Pia Riggirozzi discusses on an overall level what governance after the Washington Consensus means in Latin America and, in particular, the articulation of a post-neoliberal project in the case of Argentina. Given the acute socio-political and economic turmoil surrounding the recent crisis in Argentina, it would have been commonly expected for the state to have little or no bargaining position, especially in facing international financial actors conditions to reopening financial channels of support. However, it is argued that the collapse prompted audacious and well-targeted reforms aimed at reverting the neoliberal model and with it a more complete re-evaluation of the role of the state in development. As such, the paper explores the conditions that helped the post-crisis government to 6 reconcile state interventionism and globalisation and how it managed to balance sovereign authority and externally-driven economic demands. Laura Casola analyses Mercosur in a historical perspective from its start in 1991 to present day. Mercosur emerged as a process of integration with objectives that go far beyond the mere cooperation in economic and political issues, also embracing matters like justice, human rights, environment, work and culture. As a project of south-south integration, Mercosur has tried to stimulate internal solidarity in order to fortify the region, becoming, gradually, the third largest trading bloc in the world. Therefore, the strategies followed by Mercosur have changed during the two decades of its existence. In the 1990 s the regional policy was devised under the ideology of the Washington Consensus, oriented to economic aspects and applying a neo-liberal scheme. Yet, the regional crisis that took place since 1999 as a result of the open regionalism imposed a postliberal model of integration whose axes are the human rights and democracy as conditions for development, reviving, in this way, the spirit of the Treaty of Asunción, whose preamble states that the aim of Mercosur is the economic development with social justice for its people. Ana Patricia Silva discusses a specific instrument to curbing extreme poverty in Mexico; the conditional cash transfer programmes (CCT). During the last three decades, Latin America has gone through different economic development periods which have affected its political and social dynamics. As a response to these challenging conditions, the state, sometimes as well in coordination with the civil society, has undertaken diverse social policy measures in order to protect the most vulnerable groups of population. One of the new strategies in order to fight poverty, to foster social inclusion and to overcome inequalities is the conditional cash transfer programmes. The paper analyses to which extend CCT programmes in Latin America are achieving their objective of helping people living in extreme poverty to get out of the intergenerational poverty circle and to develop their own capacities. Using as case studies the El Salvador CCT programme Red Solidaria and comparing it to the Oportunidades CCT programme in Mexico, the paper argues that CCT is a useful tool in the anti-poverty efforts. Raúl Bernal-Meza and Gustavo Alberto Masera discuss Brazil s regional policy as part of a strategy of accumulation of power on the part of Brazil; accumulation of power as a regional power and as a global player. They also discuss Argentina s foreign policy and compares it to Brazil s, in part to see the degree of agreement or disagreement that would have importance for the constitution of a common voice in international politics. Furthermore, Argentina s view of Brazil is analyzed together with bilateral relations between the two countries and Brazil s view of Argentina and 7 Venezuela. Also development problems and energy issues are taken up. All in all this discussion gives a sense of regional integration in Mercosur and South America, the problems that the major countries are facing and how their foreign policy orientations are. This is important in terms of the likely future directions of South American regionalism and foreign policy orientation. Steen Fryba Christensen discusses the importance of regional integration in Mercosur and in South America from the perspective of Brazil s strategy of international insertion and development. It proposes that Brazil seeks regional leadership as a way to aggregate political power and become a stronger global political player and as a way to aggregate economic power. In this strategy Brazil is depicted as competing with the US for influence in the region of South America. The conclusion is that Brazil is the most serious candidate for South American leadership, that in spite of difficult challenges emanating particularly from national-oriented priorities in other South American countries, regional integration is being strengthened. However, some countries are hard to get into Brazil s sphere of influence. The strategy employed towards these countries (Chile, Colombia and Peru) is to increase economic and political cooperation as much as possible with them as part of the strategy of accumulation of power. Free trade agreements, integration processes and energy and infrastructure projects are the means used for this purpose. Identity Formation and Social Movements Common for the contributions in this chapter is the interest in identity formation. Identity formation is constructed and de-constructed on many levels in different social settings in the case studies from Peru, Mexico and Bolivia. Identity formation is here discussed a memory-work approach in studying Peruvian women and their organizations, and as peasants approaches to land reforms in Mexico. The community is seen as a primary setting for identity formation in the work from indigenous communities in Peru, and in Bolivia the state has created parallel institutions to indigenous organization, with the consequence that the state institution have no meaning for indigenous peasants. Christina Hee Pedersen discusses identity formation within feminism and social movements in Peru and she argues for seeing identity as a site of narrative constructions and reconstructions. Her approach to feminism and social movements is focusing on exploring the intersection between individual or collective identities. Memory Work and Reconstructions and Confrontation open up for interweaving research positions, methodological approaches and 8 personal life stories and thus produce insights about the political longings of the Peruvian feminist movement and insights about the meaning of the institutional belongings Isabel Clemente examines the Uruguayan resistance to a political project for a free trade agreement with the US and the eventual failure of this project, focusing on both state and societal actors. She addresses the challenge to the continuity of said policy arising out of the US initiative for a bilateral agreement of free trade that would affect Uruguayan belonging to Mercosur. Her paper examines the contrasting responses from various state bodies and political actors and studies the resistance of civil society actors: the labour movement, the students movement, industr
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