Blogs

Entries with Categories Global Affairs Latin America .

[Lilia M. Schwarcz and Heloisa M. Starling, Brazil: a biographydiscussion: Madrid, 2016), 896 pp.]

review / Emili J. Blasco

Brazil: a biography Presenting the history of a vast country like Brazil in a single Issue, although extensive, is not an easy task, if you want to go deep enough. "Brazil. A Biography" (for this review we have used Penguin's English edition, from 2019, somewhat later than the publication of the work in Spain; the original in Portuguese is from 2015) is an account with the appropriate lens. "Brazil is not for beginners," say the two authors in the introduction, expressing with that quotation from a Brazilian musician the way they conceived the book: knowing that they were addressing an audience with generally little knowledge about the country, they had to be able to convey the complexity of national life (of what constitutes a continent in itself) but without making the reading agonizing.

The book follows a chronological order; however, the fact of starting with some general considerations and building the first chapters around certain social and political systems generated successively by the sugar cane plantations, the enslavement of the African population and the search for gold makes the life of Brazil advance before our eyes without having the sensation of a mere shifting of dates. Later comes a 19th century that for Hispanics has the interest of seeing the negative of the history we know with respect to the Spanish American colonies (as opposed to the Spanish case, during the Napoleonic wars the Court of Portugal moved entirely to Rio de Janeiro and independence did not result in several republics, but in a centralized monarchy of its own). And then a 20th century that in Brazil constituted a good compendium of the political vicissitudes of the contemporary world: from the Estado Novo of Getúlio Vargas, to the military dictatorship and the restoration of democracy.

The work of Schwarcz and Starling, professors at the University of São Paulo and the Federal University of Minas Gerais, respectively, focuses on political processes, but always wrapping them with the parallel social and cultural processes that occur together in any country. The Issue provides a lot of information and bibliographical references for all the historical periods of Brazil, without disregarding some in order to deal more with others, and the reader can dwell especially on those moments that are of greater interest.

Personally, I have been more interested in reading about four periods, relatively distant from each other. On the one hand, the attempts of France and Holland in the 16th and 17th centuries to set foot in Brazil (they were not permanently successful, and both powers had to settle for the Guianas). Then the emergence and consolidation in the 18th century of Minas Gerais as the third vertex of the Brazilian heartland triangle (Rio de Janeiro, São Paulo and Belo Horizonte). Then the description of the life of a European-style court in the circumstances of the tropical climate (the monarchy lasted until 1889). And finally the experiences of mid-20th century developmentalism, with Juscelino Kubitschek and João Goulart in a tour de force between democratic compromise, presidential personalism and the undercurrents of the Cold War.

The reading of this book provides many keys to better understand certain behaviors of Brazil as a country. On the one hand, how the immensity of the territory and the existence of areas that are difficult for the State to reach -the Amazon is a clear example-, gives an important role to the Army as guarantor of the continuity of the nation (the success, perhaps momentary, of Bolsonaro and his appeal to the Armed Forces has to do with that, although this last presidency is no longer included in the book). On the other hand, how the division of territorial power between mayors and governors generates a multitude of political parties and forces each presidential candidate to articulate multiple alliances and coalitions, sometimes incurring in a "buying and selling" of favors that generally ends up having a cost for the country's institutionality.

The book's essay was completed before the collapse of the Workers' Party governmental era. That is why the consideration of the governments of Lula da Silva and Dilma Rousseff is, perhaps, somewhat complacent, as a sort of "end of history": since the end of the military dictatorship in 1985, the country would have evolved in the improvement of its democratic and social life until the time crowned by the PT. The "Lava Jato case" has shown rather that "history continues".

Categories Global Affairs: World order, diplomacy and governance Book reviews Latin America

EPP, the Paraguayan guerrilla group that grew out of political carelessness

Emerged in 2008, the Paraguayan People's Army has created a conflict that has already claimed a hundred dead.

Emerged in 2008, the Paraguayan People's Army has created a conflict that has already claimed a hundred dead.

Marxist guerrillas in Latin America are a thing of the past. That conviction led to underestimate the emergence in 2008 of the Paraguayan People's Army (EPP), which since then has carried out a hundred violent actions, especially in rural areas of the northeast of the country. The conflict has claimed a hundred dead and as many wounded; there have also been kidnappings of personalities, which have given the EPP special media coverage. The creation of a controversial special military-police corps has not achieved the goal of putting an end to the group, which has led to criticism of the government's management of the problem.

article / Eduardo Villa Corta

The Paraguayan People's Army (EPP) was considered since its emergence as a small group of radicals that would have little to do. However, in just ten years it has become an organization capable of confronting the Paraguayan State: it has carried out a hundred terrorist actions, including a dozen kidnappings, causing some sixty deaths and a hundred wounded.

EPP influence zones (light red) and places where there have been group  instructions (dark red) [Mikelelgediento].

EPP influence zones (light red) and places where there have been group instructions (dark red) [Mikelelgediento].

With an issue of activists ranging from thirty of its hard core to two hundred if its support networks are considered, the EPP has been a problem for the government for several years, which has not been able to dismantle it: 30 militants have died in confrontations with the forces of law and order and a hundred have been arrested, but the image offered by the authorities is one of ineffectiveness. The Paraguayan government's negative credit is also the fact that it did not take seriously the threat posed by the group 's constitution and its first actions.

The EPP was officially formed on March 1, 2008. Although its founders and main leaders had already planned the creation of this group prior to this date, its roots go back to 1992 and the Patria Libre Party, as documented by researcher Jeremy McDermott. The EPP presents itself as an armed group against the "bourgeois liberal" parliamentary system, but above all it is a Marxist movement that promotes the uprising of Paraguay's peasantry, hence its attempt to take root in the rural northeast of the country.

The 2008 presidential victory of Fernando Lugo at the head of a leftist alliance, putting an end to six decades of political dominance by the Colorado Party, may have encouraged the formation of the EPP, which then believed it was justified in its actions with the removal of Lugo in 2012 through a controversial impeachment trial carried out by the Parliament and labeled by Lugo's supporters as a coup d'état.

The first EPP attack, on March 16, 2008, consisted of the burning of agricultural machinery in the department of Concepción. The next was in December of the same year, with an attack on a barracks in Tacuatí, in the department of San Pedro. Since then, their movements have been centered especially between the south of the first of these Departments and the north of the second.

Despite being a more or less delimited zone, dismantling the EPP is not easy because the EPP's modus operandi makes its movements unpredictable. This is because, as McDermott explains, the group does not act like other insurgent organizations, such as the FARC. The core of the EPP is made up of some 30 full-time fighters, most of whom have family ties. They are led by ringleaders Alcides Oviedo and his wife Carmen Villalba, who are in jail; one of the leaders on the ground is Oswaldo Villalba. In addition, there are about fifty part-time activists, a logistical network that could reach two hundred people and local sympathizers who, without being very involved in the cause, provide information on search operations of the security forces. The group suffered in 2014 the split of one of its columns, which was renamed the Armed Peasant association (ACA) and in 2018, in agreement with the authorities, the EPP split into two groups to face the pressure of the security forces.

The aforementioned figures speak of a small group , far from the 8,000 members that the FARC had in 2016 at the time of their demobilization or the 4,000 members that the ELN currently has in Colombia, or the 3,000 that were attributed to Chile's Manuel Rodriguez Patriotic Front. Although the EPP is more similar to the latter, its operational cessation in 1999 left the FARC as the main training group for those who would later create the EPP, as evidenced by the documentation found in the computer of FARC leader Raul Reyes and the kidnapping of businesswoman Cecilia Cubas, daughter of a former Paraguayan president, at the end of 2004.

This action marked what has been a line of action for the EPP. Since 2008, in addition to extortion and assaults in order to finance itself, the group has carried out kidnappings in order to achieve greater media impact. These have been carried out against relatives of former presidents of the country or personalities with a high political profile , for whose release ransoms in excess of five million dollars have been order , although lower figures have been agreed in negotiations. It is usually agreed to submit part of the money in cash and part in food for the towns surrounding the EPP's area of operations.

The group has also carried out extortions and assaults in those areas where it operates, demanding "revolutionary taxes" from landowners and cattle ranchers, from whom they also steal cattle and food to meet the organization's daily sustenance needs.

Other notable actions carried out by the EPP are bombings. For example, there was an attack against the Supreme Court of Justice in Asunción at the beginning of the group's operations. A more recent attack was perpetrated on August 27, 2016 against a military vehicle in the eastern zone of Concepción: the explosives exploded as the convoy passed by and then the terrorists liquidated the survivors with firearms; eight military personnel were killed in the attack. According to authorities, this event marked a leap in the EPP's operations, from a group seeking economic resources to an organization with greater operational and military capacity.

To confront the EPP, President Horacio Cartes created the Joint Task Force (FTC) in 2013 in response to evidence that police action was ineffective, in part due to possible internal corruption. The JTF is composed of members of the Armed Forces, the National Police and the National Anti-Drug administrative office , under the command of a military officer and reporting directly to the president. The more expeditious nature of this unit has generated some controversy in the social and political discussion .

The EPP's most recent operation was the kidnapping of former Paraguayan vice-president Óscar Denis on September 9, 2020. For the release of Denis, leader of the Authentic Radical Liberal Party and active participant in Lugo's impeachment, the terrorists demand the release of their leaders, Alcides Oviedo and Carmen Villalba, as well as the submission of food supplies for the rural areas where they operate. The deadline set by the organization expired a few days later without the Government attending their request. There have been citizen mobilizations demanding Denis' freedom and the status is being followed in the country with concern, putting President Mario Abdo Benítez in a tight spot.

Categories Global Affairs: Security and defense Articles Latin America

[Francisco Cancio, Enmienda: una revisión de la causa y el actuar argentino en la Guerra de las Malvinas (Náutica Robinsón: Madrid, 2020), 406 pp.]

review / Ignacio Cristóbal

This is an excellent book that analyzes some controversial issues of the Malvinas War (1982). The author, Francisco Cancio, is an expert on the subject and has made a conscientious search for information over the years in his visits to Argentina and the United Kingdom.

It is not a book on the history of the Malvinas War; there are other manuals that explain it very well, but here the author has tried something else. Whoever opens the book should have some knowledge of what happened then in the South Atlantic or else obtain it before going into its pages.

In my case, it was not difficult to get "hooked" by reading the book. From the data the author gives, he had similar experiences to mine. I was also watching the news in the spring of 1982 sitting next to my father, a military man; for our generation it was our first war. And like him, who on his trips to the United Kingdom, I imagine to practice his English language skills, would dive into British bookstores in search of documentation, I also learned about the Falklands when I was in those lands perfecting my English, going to museums and bookstores and to the barracks of Colchester, the city where I spent two summers, to talk to veterans of the conflict. You will be forgiven if, because of this staff involvement, I let my sympathy for the Argentine side go a little, while admiring the professionalism shown by the British troops.

The Malvinas War was a complete war from the military point of view. There were air and naval combats; intervention of submarines and satellites; landing and ground operations of special operations units, as well as actions of units at battalion level. It is very welcome that the first chapter, graduate "Genesis", while introducing the conflict begins to "prick balloons" about the real reason for going to war.

And the chapters go on and on with issues such as the "Super Etendart and the Exocet", where we imagine the Argentine naval pilots training in Brittany, France and leaving the flag very high, as it should have been. The interest increases when the author gets into the intelligence operations to "arm", without an "instruction book", the missiles that were already in Argentina. The French government played a complicated role in the conflict, but the diplomatic aspect (it was a member of NATO) took precedence over the commercial aspect. The French technicians sent to Argentina were the ones who gave the "do de pecho" by siding with Argentina and juggling to avoid creating more problems in the international balance.

The chapter on land operations is excellent and makes a spear in favor of the Argentine forces that had to deal with the enemy and the lack of logistic support from the continent. In those days there was a discussion in the public opinion about the dichotomy "conscript army" versus "professional army". It is clear in the chapter the damage that the Argentines inflicted on the reconquerors, but also their adverse status : the lack of basic means for resistance, counterattack and, why not to say it, hunger and cold. 

The naval part is dealt with in two interesting chapters that tell the story of the submarine "San Luis", which was bothering the British fleet during the whole war. If there had been no war, that submarine would have stayed in port. This is the level of those brave submariners. The other chapter is about the failed meeting, due to the lack of wind, of the two fleets. It is possibly one of the most critical moments of the battle. Had there been wind, the A-4 Skyhawk of the Argentine Navy could have driven the British fleet back to its home ports.

A separate chapter is "La guerra en los cielos" (The war in the skies), which gathers some of the most courageous operations of the Argentine pilots in those days. The author puts us in the cockpits of the fighters whose images still make our hair stand on end. Without wanting to give anything away to the reader, the interview with the former head of the Argentine Air Force in those days is for me the best part of the book. We must not forget that he was a member of the military board and the data he reveals about the "Russianfinancial aid " are very interesting and unknown.

And finally the long-awaited chapter "The Attack on the Invincible", which deals with probably the most compromising war action of the entire conflict. The author scrupulously analyzes the operation of attacking one of the two British aircraft carriers, the Invincible, with a clarity that makes it evident that something happened.

"Amendment" is, therefore, a highly recommendable book for those who already have some knowledge about the Falklands War, but at the same time it can provoke curiosity in other people who, without being initiated in this conflict, can help themselves in the reading by consulting basic information available on the Internet. It was a singular conflict, in which a country in the south of the world put in check the second power of NATO, helped without limits by the first and by a neighboring country. As Admiral Woodward, commander of the British fleet, said in his memoirs: "people do not know how close Britain came to losing the war". A fine final epitaph from a military professional who surely recognized the professionalism, bravery and courage of the enemy.

* Expert in military affairs

Categories Global Affairs: Security and defense Book reviews Latin America

The current president made only one visit, also in the framework the G-20, compared to the six that Bush and Obama made in their first four years.

International travel does not tell the whole story about a president's foreign policy, but it does give some clues. As president, Donald Trump has only traveled once to Latin America, and then only because the G-20 summit he was attending was being held in Argentina. It is not that Trump has not dealt with the region -of course, the policy towards Venezuela has been very present in his management, but not having made the effort to travel to other countries of the continent reflects well the more unilateral character of his policy, little focused on gaining sympathy among his peers.

signature in Mexico in 2018 of the free trade agreement between the three North American countriesdepartment Statedepartment , USA].

▲ signature in Mexico in 2018 of the free trade agreement between the three North American countriesdepartment of State, USA].

article / Miguel García-Miguel

With only one visit to the region, the U.S. president is the one who has made the fewest official visits since Clinton's first legislature, who also visited the region only once. In contrast, Bush and Obama paid more attention to the neighboring territory, both with six visits in their first legislature. Trump focused his diplomatic campaign on Asia and Europe and reserved Latin American affairs for visits by the region's presidents to the White House or to his Mar-a-Lago resort.

In fact, the Trump Administration spent time on Latin American issues, taking positions more quickly than the Obama Administration, as the worsening Venezuelan problem required defining actions. At the same time, Trump has discussed regional issues with Latin American presidents during their visits to the United States. There has been, however, no effort at multilateralism or empathy, going out to meeting them in their home countries to discuss their problems there.

Clinton: Haiti

The Democratic president made only one visit to the region during his first term in office. After the Uphold Democracy operation to refund Jean-Bertrand Aristide to power, on March 31, 1995, Bill Clinton traveled to Haiti for the transition ceremony organized by the United Nations. The operation had consisted of a military intervention by the United States, Poland and Argentina, with UN approval, to overthrow the military board that had forcibly deposed the democratically elected Aristide. During his second term, Clinton paid more attention to regional affairs, with thirteen visits.

Bush: free trade agreements

Bush made his first presidential trip to neighboring Mexico, where he met with then-President Fox to discuss a variety of issues. Mexico paid attention to the U.S. government's attention to Mexican immigrants, but the two presidents also discussed the operation of the North American Free Trade Agreement (NAFTA), which came into force in 1994, and joint efforts in the fight against drug trafficking. The U.S. president had the opportunity to visit Mexico three more times during his first term to attend multilateral meetings. Specifically, in March 2002, he attended the International lecture on Financing for development, organized by the United Nations and which resulted in the Monterrey Consensus; Bush also took the opportunity to meet again with the Mexican president. In October of the same year he attended the APEC (Asia-Pacific Economic Cooperation) summit, which that year was held in the Mexican enclave of Los Cabos. Finally, he set foot on Mexican soil once again to attend the Special Summit of the Americas held in Monterrey in 2004.

During his first term in office, Bush promoted the negotiation of new free trade agreements with several American countries, which marked his Administration's policy in relation to the Western Hemisphere. In the framework of this policy, he traveled to Peru and El Salvador on March 23 and 24, 2002. In Peru he met with the President of that country and with the Presidents of Colombia, Bolivia and Ecuador, in order to reach an agreement to renew the ATPA (Andean Trade Promotion Act), by which the US granted tariff freedom on a wide range of exports from those countries. The matter was finally resolved with the enactment in October of the same year of the ATPDEA (Andean Trade Promotion and Drug Eradication Act), which maintained tariff freedoms in compensation for the fight against drug trafficking, in an attempt to develop the region economically to create alternatives to cocaine production. Finally, in the case of El Salvador, he met with the Central American presidents to discuss the possibility of a Free Trade Agreement with the region (known in English as CAFTA) in exchange for a reinforcement of security in the areas of the fight against drug trafficking and terrorism. The treaty was ratified three years later by the U.S. congress . Bush revisited Latin America up to eleven times during his second term.

 

Own elaboration with data from the Office of the Historian.

 

Obama: two Summits of the Americas

Obama began his tour of diplomatic visits to Latin America by attendance the V Summit of the Americas, held in Port-au-Prince (Trinidad and Tobago). The Summit brought together all the leaders of the sovereign countries of the Americas except for Cuba and was aimed at coordinating efforts to recover from the recent crisis of 2008 with mentions of the importance of environmental and energy sustainability. Obama attend again in 2012 the VI Summit of the Americas held this time in Cartagena de Indias (Colombia). No representatives from Ecuador or Nicaragua attended this Summit in protest against the exclusion of Cuba to date. Neither the President of Haiti nor the Venezuelan President Hugo Chávez attended, alleging medical reasons. The summit again discussed Economics and security issues with special relevance to the war against drugs and organized crime, as well as the development of environmental policies. He also took advantage of this visit to announce, together with Juan Manuel Santos, the entrance into effect of the Free Trade Agreement between Colombia and the US, negotiated by the Bush Administration and ratified after some delay by the US congress . The Democratic president also had the opportunity to visit the region on the occasion of the G-20 meeting in Mexico, but this time the main topic revolved around solutions to curb the European debt crisis.

In terms of bilateral meetings, Obama made a diplomatic tour between March 19 and 23, 2010 to Brazil, Chile and El Salvador, meeting with their respective presidents. He used the occasion to reestablish relations with the Brazilian left that had governed the country since 2002, to reiterate his economic and political alliance with Chile and to announce a US$200 million fund to strengthen security in Central America. During his second term he made up to seven visits, including the resumption of diplomatic relations with Cuba, which had been paused since the triumph of the Revolution.

Trump: T-MEC

Donald Trump only visited Latin America on one occasion to attend the G-20 meeting , a meeting that was not even regional, held in Buenos Aires in December 2018. Among the various agreements reached were the reform of the World Trade Organization and the commitment of the attendees to implement the measures adopted in the Paris agreement , with the exception of the US, since the president had already reiterated his determination to withdraw from the agreement. Taking advantage of the visit, he signed the T-MEC (Treaty between Mexico, the United States and Canada, the new name for the renewed NAFTA, whose renegotiation had been a Trump demand) and met with the Chinese president in the context of the trade war. Trump, on the other hand, did not attend the VIII Summit of the Americas held in Peru in April 2018; the trip, which was also supposed to take him to Colombia, was canceled at the last minute because the US president preferred to remain in Washington in the face of a possible escalation of the Syrian crisis.

The reason for the few visits to the region has been that Trump has directed his diplomatic campaign towards Europe, Asia and to a lesser extent the Middle East, in the context of the trade war with China and the loss of power in the US international landscape.

 

Own elaboration with data from the Office of the Historian.

 

Only one trip, but monitoring of the region

Despite having hardly traveled to the rest of the continent, the Republican candidate has paid attention to the region's affairs, but without leaving Washington, as there have been seven Latin American presidents who have visited the White House. The main focus of the meetings has been economic development and the strengthening of security, as usual. Depending on the reality of each country, the meetings revolved more around the possibility of future trade agreements, the fight against drugs and organized crime, preventing the flow of illegal immigration to the United States or the search to strengthen political alliances. Although the US government website does not list it as an official visit , Donald Trump also met at the White House in February 2020 with Juan Guaidó, recognized as president in charge of Venezuela.

Precisely, if there has been a common topic to all these meetings, it has been the status of the economic and political crisis in Venezuela. Trump has sought allies in the region to encircle and pressure the Maduro government, which is not only an example of continuous human rights violations, but also destabilizes the region. The strong civil service examination the regime served Donald Trump as propaganda to gain popularity and try to save the Latino vote in the November 3 elections, and that had its award at least in the state of Florida.

 

Own elaboration with data from Office of the Historian.

Categories Global Affairs: North America World order, diplomacy and governance Articles Latin America

[Iván Garzón, Rebeldes, Románticos y Profetas. La responsabilidad de sacerdotes, políticos e intelectuales en el conflicto armado colombiano (Bogotá: Ariel, 2020) 330 pp].

review / Paola Rosenberg

Rebels, Romantics and ProphetsThe book "Rebels, Romantics and Prophets" written by Iván Garzón sample the role played by priests, politicians and intellectuals in the internal armed conflict in Colombia and the responsibility they had in it. A war that marked the country politically, economically, socially and ideologically. Revolutionary movements in Latin America were characterized by the use of violence and the employment weapons to reach power; more or less strong depending on the country, guerrilla groups had in any case a great influence on the course of events in the region during the second half of the twentieth century. The essay by Garzón, professor of Political Theory at the Universidad de La Sabana, focuses especially on the role of the Catholic Church in the different movements and on the contradictory ideas and actions that sustained the conflict over time [he summarizes his purpose in this essay as follows video].

"Rebels, Romantics and Prophets" questions and criticizes the responsibility of these groups regarding the resource violence and the use of weapons to achieve social change in Colombia. Iván Garzón challenges the participants of the armed conflict in Colombia to reflect on their role in it and to assume their responsibility to build a better society. In addition, the book aims to open a discussion on the past, present and future of the role and influence of the Catholic Church and intellectuals in society.

The revolutionary waves in Latin America in those years were strengthened by the Marxist ideas of the time. Those ideas defended that the economic development of third world countries was not possible without a rupture of the capitalist market; due to social inequality and class struggle. Therefore, it was necessary to advocate the use of violence in order to come to power. After the triumph of the Cuban revolution in 1959, guerrilla ideas spread rapidly throughout Latin America. Cuba demonstrated that revolution was possible: through armed struggle and Marxist ideas, social development could be achieved. This is how strong revolutionary movements began to emerge in these countries. Colombia was definitely no exception.

One of the young and main protagonists mentioned in the book is Camilo Torres, who was swept up in the revolutionary waves in Colombia. Also known as "the guerrilla priest" or the "Che Guevara of the Christians", Torres was a very influential leader in Colombia in the second half of the 20th century. A guerrilla priest, a hero to some, but a villain to others. Only 37 years old, he died in a troop clash on February 15, 1966, a year after joining the National Liberation Army (ELN) guerrillas. Willing to sacrifice his life and take up arms for his country and social change, Torres affirmed that revolution was inevitable and that it was necessary to contribute to it. Different intellectuals evaluate his figure in the book: some criticize the priest for his "failure" and his incorrect decision to take up arms, others justify him by pointing out that he submitted to a "just war".

Camilo Torres represents the group of rebels, whom the author describes as the "warriors of a failed revolution. They used arms out of an often religious commitment. They justified violence and saw it as a representation of honor, bravery and submission. The rebels decided to take up arms, go out into the bush and join the guerrillas in order to make the Christian faith effective and help the poor. Many of these rebels like Torres focused on Christianity's primary mandate to love their neighbor. They felt an obligation to collaborate in bringing about radical change in the country's political, economic and social Structures . They desired a more just society and sacrificed their lives to achieve it, no matter the means. Many came to the conclusion that the only way to achieve this change was through violent struggle. Their actions sample how the dominant ideas of the time justified the use of violence, going against purely Christian ideas.

In the conflict there was also the group of the "romantics", those who approved of the cause, respected it, but did not get their hands dirty. They were priests, politicians and intellectuals who intervened in the moral and intellectual discussion to justify the reasons for the revolution. They were the passionate ones, the minds behind the acts that directly influenced the warriors who went to the mountains to fight.

Finally, there were the "prophets": the priests, politicians and intellectuals who were completely opposed to armed struggle and the use of violence to bring about change in society. The prophets refused to make a pact with the devil and betray the moral values of the Church. They thought that there were other means to achieve social justice; peaceful and bloodless means. In the end, these were the ones who were right; it was a useless, costly and unwinnable struggle.   

In conclusion, both the rebels and the Romantics found in their moral and political views a full justification for the use of violence. The prophets never approved of this cause, but rather criticized it by emphasizing its secularized and contradictory character. Iván Garzón seeks to open a discussion on the legitimacy or illegitimacy of the use of violence as a political means to achieve justice.

Today, the word revolution continues to be linked to violence due to the many traumatic conflicts experienced by many Latin American nations. In Colombia, as in many other countries, the revolutionaries won ideologically, but not in practice. For this reason, it can be concluded that in general, violent internal conflicts only lead to destabilize countries and end innocent lives. The book attempts to make religious and intellectual participants in the armed conflict reflect on their responsibility or guilt in the armed conflict. This discussion between criticism or justification of the armed struggle is still necessary today due to the constant threat to democratic institutions in Latin America.

Categories Global Affairs: Security and defense Book reviews Latin America

Nicolás Maduro during a broadcasted speech [Gov. of Venezuela].

▲ Nicolás Maduro during a broadcasted speech [Gov. of Venezuela].

ESSAY / Isabelle León Graticola

It is no secret to anyone that Venezuela is going through the most convoluted economic and social crisis in its history, a crisis in which the creators have manipulated the existence of the people, degrading its integrity, and extinguishing everything that once characterized Venezuela.

The country holds a key geopolitical location that serves as a route for North America and the Caribbean to the rest of South America. Likewise, the country is endowed with abundant natural resources like natural gas, iron ore, diamonds, gold, and oil.1 Venezuela has the largest proven oil reserves in the world, with 302 billion barrels in January 2018, emanating an extremely rich country with astonishing potential.2 However, this crisis has not only hindered people's lives but has ironically dissipated the country's resources to consolidate the pillars of the regime to such an extent that today the government of Nicolás Maduro is importing oil from Iran. Inadequate policies that have weakened the society's sense of responsibility and nationalism, decreased foreign investment out of lack of trust, and annihilated the state-led oil production, therefore reinforcing the country's economic downfall and hyperinflation.

The Venezuelan government, headed by Nicolás Maduro, has managed its way to continue holding power despite accusations of corruption, crimes against humanity, and even drugs trafficking involvement. The perplexing partner and political crisis has created an unsustainable and violent context in which poorly informed people are manipulated by the government through speeches that take big significance on how society perceives the actual situation, as well as other countries' statements on the crisis. Up to this point, it has become difficult to understand what keeps bolstering this regime, but if the situation is analyzed from the nucleus, the well-orchestrated rhetoric of Chávez and his successor, Maduro, has contributed to support the ends and sustainment of the regime. 

Since Maduro reached power, poverty motivated violence has been rampant in Venezuela and insecurity has become a significant part of society's dynamics. Consequently, many protests against the government demanding for freedom and better living standards have taken place. Maduro's regime has been forced to employ tools such as fake news and hateful rhetoric to soften the anger of the people by manipulating them and brainwashing the armed forces to avoid uprisings. 

This article aims to analyze how Maduro's rhetoric has maintained a minority in the wrong side of history and a majority in constant battle by making erroneous accusations to third parties to justify the perturbed situation, while the government keeps enriching its wallet at the cost of the people and its smudged operations. Such feverish society gave rise to pure uncertainty, to a place where disinformation takes the form of a lethal weapon for the dangerous context in which it exists.

The background: Chávez's indoctrinated society

First, it is necessary to clarify that the focus of this article is merely on the rhetorical aspect as a pillar of the regime. However, when it comes to the background that has sustained Maduro's administration up to this day, there is a more complex reality, full of crime, death, manipulation, and corruption. Venezuela is an almost abnormal reality because, after more than twenty years, it is still tied to a group of people who have taken absolutely everything from it. From a man that portrayed nothing but hope for the poor, to one who has managed his way sticking to policies damaging to the very people they mean to help, and which, sooner or later, will make the regime collapse.

Hugo Chávez's presidency was characterized by a tremendous and persuasive oratory; he knew how to get to the people. Chávez's measures and campaigns were based on a psychological strategy that won him the admiration of the most impoverished classes of the country. Chávez arrived and gave importance and attention to the big mass of the population that previous governments had systematically neglected. People felt the time had come for them to have what they never had before. Filled with charisma and political mastery, his speeches always contained jokes, dances, and colloquial phrases that were considered indecent by the country's highest class and often misunderstood abroad.

Chávez always built a drastic separation between the ideals of the United States and Venezuela and looked for ways to antagonize the former with his rhetoric. He began to refer to George W. Bush as "Mr. Danger", an imperial literary character of one of the most famous Venezuelan novels, Doña Bárbara.3

Hugo Chávez is one of the most revolutionary characters in Venezuelan history, one who brought the convoluted situation that today perpetuates in the country. Chávez persecuted journalists and political opponents, expropriated lands, nationalized Venezuela's key industries such as telecommunications, electricity, and the refining processes of heavy crudes, and slowly degraded the society as the exercise of power was directed to hold complete control of Venezuela's internal dynamics.4

Chávez extended education and medical assistance to the least favored classes and improved the living conditions of the needy. This policy did nothing but create among these classes a culture of dependence on the government. Chávez's supporters or Chavistas were the pillars that buttressed the government, while the wealthy were cataloged as "squealing pigs" and "vampires. "5 The Chavistas admired Chavez's charismatic character and his constant gifts; he gave them fridges and TVs, gadgets that they could never afford on their own. He also constructed buildings, under the "mission statement Vivienda" initiative, to give people living in slums a 'proper' home. All of this was possible because the oil prices at the time were skyrocketing; he used the oil income to buy his support. The general standard of life, however, continued to be poor. The government knew what to give and how to manipulate to stay in power, and that is precisely what made Hugo Chávez so powerful and almost impossible to defeat despite strong opposition. 

Historically, the United States has opposed left-wing governments in Latin America, so Chávez condemned the US, by referring to them as an imperialist power, or the "Empire". He disgraced US leaders and actions and transferred that anti-imperialistic and anti-capitalist approach to the population, part of which supported him and was blindly loyal to the cause. Chávez's alliance with Cuba under Fidel Castro led to the supply of oil at cut-rate prices, all related to the desire of reducing US economic influence in South America. Chavez's populist initiatives were the tenets of his administration and controversial foreign policy. These, along with his rhetoric and opposition from the Venezuelan wealthy class, deeply polarized the society and gave rise to what Venezuela has today: a divided society that has suffered from the lack of basic necessities, disinformation, and integrity.

Currently, the spokesmen of the Government of Nicolás Maduro address citizens at all hours from public channels and social networks to stir up the disgruntlement of the population toward the external enemy.6 Despite the poorly prepared speeches, the lack of vocabulary, and the improper formulation of sentences, Maduro has kept the colloquial and unformal rhetoric that characterized Chávez, but has failed to draw the connection that the late president enjoyed. The anti-imperialist strategy has been maintained, and, as the justification of the crisis, it has become the epicenter of the regime's speech. Nicolás Maduro's rhetoric revolves around two words: the US and the "Patria", a word frequently used by Chávez.

The base of Maduro's rhetoric: the love for Chávez

Shortly before dying in March 2013, Hugo Chávez appointed Vice President Nicolás Maduro as his successor. Chávez's charisma and legacy are what somehow ensured him that Maduro would provide a smooth transition. After Chávez's passing, Maduro took advantage of the momentum and sentiment that the Chavistas revealed and ensured that if picked, he would follow the steps of his predecessor and would continue to strengthen the 'Bolivarian Revolution'. Along with the continuity with Chávez's legacy, the defense of Venezuelan sovereignty in front of the US, and the social equality became the key messages of his administration.7 Nevertheless, Maduro had little support from the elites and inherited a country that was already economically weak due to the downfall of the oil prices and corruption.

In Chávez's wake, Maduro appealed to the emotion of the audience. He strongly claimed that the people were there for the 'Comandante' and said that "his soul and his spirit was so strong that his body could not stand it anymore, and he was released and now through this universe expanding filling us with blessings and love". He knew what this meant for the people and a crying audience exclaimed "Chávez lives, the fight goes on".

Maduro filled his rhetoric with the love for Chávez. He acknowledged that the Chavistas worshipped him as if he was God and that for ideological reasons, support for Maduro was guaranteed. Nevertheless, others recognized that the situation in the country was not favorable and questioned Maduro's ability to fill the void left by Chávez. When Maduro took power, the country entered a period of reinforced economic decline accompanied by hyperinflation that nowadays exceeds 10 million percent.8 As it was previously stated, the conditions of poverty surpass anything seen before in the country, which is now on the brink of collapse.

Furthermore, Venezuela went through two rounds of mass protests, in 2014 and 2018, that demanded freedom and change. Unfortunately, and as was expected from the government, thousands of violations of human rights were part of the demonstration's dynamics as brutal repression and the unjust imprisonment of demonstrators took place all along. Simultaneously, Maduro managed to call for rallies on the days of the major opposition's marches and retained the populist speech based on ideological arguments and emotional appeals among the minority of supporters to consolidate his power in Venezuela. Last year, in a regime rally on February 23rd, he condemned the elites as he explained that he was certain that from the bottom of his Chavista sentiment of loyalty to this battle, he was never going to be part of one. He stated that Venezuela will continue to be Patria for more many years to come. 

The ongoing crisis has forced many to survive rather than to live, but despite all, Maduro remains in control. Maduro has kept Chávez's anti-imperialist policy and has rejected any minimum support from the United States. The government takes advantage of the hunger and the vulnerable situation of its people and makes sure that it remains as the only source of food. It does not take responsibility and instead, blames the crisis on the 'economic war' that the US has imposed on Venezuela.9 When Juan Guaidó sworn himself the legitimate president, Maduro's supporters started raising firms in a campaign called "Hands off Venezuela", while the US was trying to get humanitarian assistance into Venezuela through the Colombian border in the name of Guaidó. 

In this sense, he explained in the same concentration speech that they were defending the national territory and the right to live freely and independently. Although it may seem ironic, because the government has killed hundreds of people with its police brutality and torture, this rhetoric is what has kept him the support of the hardcore revolutionary followers. The "Hands off Venezuela", was shouted and accompanied by the worst English pronunciation -that characterizes Maduro-, and followed with insults to Guaidó.

As Maduro yelled "puppet, clown, and beggar of imperialism and Donald Trump. If he is the President, where are the economic and social measures that he has applied for the people? It is a game to deceive and manipulate, it is a game that has failed, the coup d'état has failed" as the network audience shouted, "jail him, jail him!". He drew his speech to a hardcore anti-imperialist audience and firmly stated that the US intended to invade Venezuela and enslave it. Maduro finalized his speech by shouting "wave up the flag, up the Patria, for the people in defense of the Revolution".

Recently, the US State Department released a price for the capture of Maduro and his cabinet, not only for the crimes committed against the Venezuelan population, but also because of their involvement in a huge drug-trafficking network. With this, the regime's position has become more vulnerable and simultaneously pragmatic, but as tough actions were taken against possible threats and opposing figures, Maduro's rhetoric remains to deny its status and manipulating those that still support him. In another public speech, he stated that "Donald Trump's government, in an extravagant and extreme, vulgar, miserable action, launched a set of false accusations and like a racist cowboy of the 21st century, put a price on the heads of revolutionaries that are still willing to fight them". He one more time accused the US of being the main cause of the economic crisis of Venezuela.

Nicolás Maduro's speech has always been directed to the hardcore revolutionaries, those that worship Chávez since the beginning and who firmly believe in the socialist cause. Maduro has maintained his rhetoric despite the changes in the internal situation of the country; he has held an enduring method for antagonizing the opposition, the Venezuelan upper class, and the United States. On the other hand, regarding the strategic foreign allies, the regime openly gives declarations to support them, but again to somehow antagonize the United States. Indeed, this was the case of the US assassination of Qasem Soleimani, the Iranian top commander, in which government representatives attended the Iranian embassy to give the condolences in the name of the regime and swore to avenge Soleimani's death. The administration of Nicolás Maduro has no gray areas, everything is either black or white; the opposition, the upper class, the US, and the US-influenced countries are the enemies, and the rhetoric rarely leans toward a conciliatory message, rather has always revolved around these conflicting parties.

What is left

Twenty years have passed since the Chavismo arrived in the country. Nowadays, a passionate minority of the population keeps supporting Maduro. His regime continues to train armed groups to combat discontent headed by opposition leader Juan Guaidó. The Chavismo keeps being strong, but it has been fragmented by those who believe that the revolution ended at the moment Chávez died, and the ones that are convinced that supporting Maduro means being loyal to Chávez. In the case of Juan Guaidó, he keeps doing his efforts. He still has relative support and keeps being a source of hope. Nevertheless, many criticize the fact that he let again the people cool down. A close change is expected, but no one knows what the movements behind are. Meanwhile, the people will continue suffering and trying to survive.

Upon reflection, it can be noticed that Maduro's entire argumentation revolves around a confrontational rhetoric: the US and capitalism against Venezuela; Guaidó against the Patria; the elites against the Revolution.10 Far from recognizing the reality that the country faces and taking actions to improve it, this confrontational approach simply places the blame on those who have tried to bring a change in the internal dynamics of Venezuela. The regime has managed to construct a national united front against a common foreign enemy and to demonize the opposition.

Chávez and Maduro's rhetoric has followed a tangible objective: the Revolution. Maduro's regime up to this point is searching for a way to consolidate its power and sustain itself as the best way to elude a rather somber future in jail. This never-ending nightmare should have long ago collapsed due to the economic catastrophe, hyperinflation, political repression, human rights violations, and the lack of direction for Venezuela. Behind what maintains this structure there is nothing but the exercise of power and the almost absolute control of society. The Patria that they constantly speak of is running out of fuel to keep going. Nonetheless, the rhetorical deceptions of the Bolivarian revolution, which for two decades have appealed to the popular classes, settled in the collective mindset of the Chavismo and brought space for support in the Venezuelan society.

Chávez and Maduro's presidencies have been based on educating and changing the mindset of the population as they wanted; a population that is content with one box of food a month and which, unfortunately, hunts for the easy means to achieve its goals instead of fighting to improve its lot.

Today, the regime is fed on the memory of Hugo Chávez, on his promises, on his battle. As long as it keeps generating an illusion on the supporters, Maduro will appeal to it as a pillar of his administration and of the Revolution.

 

Organization of the Petroleum Exporting Countries. Venezuela facts and figures. 2019, https://www.opec.org/opec_web/en/about_us/171.htm. Accessed 28 Nov. 2019.

2. US Energy Information Administration - EIA - Independent Statistics and Analysis. Venezuela. Jan. 2019, https://www.eia.gov/beta/international/analysis.php?iso=VEN. Accessed 28 Nov. 2019.

3. Livingstone, G. (2013, March 10). The secret of Hugo Chavez's hold on his people. Retrieved March 17, 2020, from https://www.independent.co.uk/news/world/americas/the-secret-of-hugo-chavezs-hold-on-his-people-8527832.html

4. El País. (2007, January 08). Chávez announces the nationalization of the electric service and telecommunications. Retrieved July 01, 2020, from https://elpais.com/internacional/2007/01/08/actualidad/1168210811_850215.html

5. The Guardian (2012, October 08). Hugo Chávez: A victory of enduring charisma and political mastery. Retrieved March 17, 2020, from https://www.theguardian.com/world/2012/oct/08/hugo-chavez-victory-political-venezuela

6. Twitter, F., & Miraflores, P. (2017, July 23). Maduro, his ministers and the corruption of language. Retrieved March 15, 2020, from https://elpais.com/elpais/2017/07/22/opinion/1500746848_239358.html

7. Grainger, S. Hugo Chávez and Venezuela Confront his Succession. Dec. 2012. https://www.bbc.com/news/world-latin-america-20678634. Accessed 29 Nov. 2019.

8. Sánchez, V. Venezuela hyperinflation hits 10 million percent. 'Shock therapy' may be only chance to undo economic damage. Aug. 2019. https://www.cnbc.com/2019/08/02/venezuela-inflation-at-10-million-percent-its-time-for-shock-therapy.html. Accessed 29 Nov. 2019.

9. TVVenezuela. CLAP boxes no longer have what to feed Venezuelans. youtube Sept. 2019. Accessed 30 Nov. 2019.

10. Delgado, A., & Herrero, J. (2019, February 12). Venezuela rhetorics on Twitter: Guaidó vs. Maduro. Retrieved March 18, 2020, from https://beersandpolitics.com/retoricas-de-venezuela-en-twitter-guaido-vs-maduro

Categories Global Affairs: World order, diplomacy and governance Latin America Essays

Members of Colombia's National Liberation Army [Voces de Colombia].

▲ Members of Colombia's National Liberation Army [Voces de Colombia].

ESSAY / Angel Martos

Terrorism and transnational organized crime are some of the most relevant topics nowadays in international security. The former represents a traditional threat that has been present during most our recent history, especially since the second half of the twentieth century. International organized crime, on the other hand, has taken place throughout history in multiple ways. Examples can be found even in the pre-industrial era: In rural and coastal areas, where law enforcement was weaker, bandits and pirates all over the world made considerable profit from hijacking vehicles along trade routes and roads, demanding a payment or simply looting the goods that the merchants carried. The phenomenon has evolved into complex sets of interconnected criminal networks that operate globally and in organized way, sometimes even with the help of the authorities.

In this paper, the author will analyze the close interaction between terrorism and organized crime often dubbed the "crime-terror continuum". After explaining the main tenets of this theory, a case study will be presented. It is the network of relations that exists in Latin America which links terrorist groups with drug cartels. The evolution of some of these organizations into a hybrid comprising terrorist and criminal activity will also be studied.

Defining concepts

The crime-terror nexus is agreed to have been consolidated in the post-Cold War era. After the 9/11 attacks, the academic community began to analyze more deeply and thoroughly the threat that terrorism represented for international security. However, there is one specific topic that was not paid much attention until some years later: the financing of terrorist activity. Due to the decline of state sponsorship for terrorism, these groups have managed to look for funding by partnering with organized criminal groups or engaging in illicit activities themselves. Starting in the 1980s with what later came to be known as narco-terrorism, the use of organized crime by terrorist groups became mainstream in the 1990s. Taxing drug trade and credit-card fraud are the two most common sources of revenues for these groups (Makarenko, 2010).

The basic level of relationship that exists between two groups of such different nature is an alliance. Terrorists may look for different objectives when allying with organized crime groups. For example, they may seek expert knowledge (money-laundering, counterfeiting, bomb-making, etc.) or access to smuggling routes. Even if the alliances may seem to be only beneficial for terrorist groups, criminal networks benefit from the destabilizing effect terrorism has over political institutions, and from the additional effort law enforcement agencies need to do to combat terrorism, investing resources that will not be available to fight other crimes. Theirs is a symbiotic relation in which both actors win. A popular example in the international realm is the protection that Al-Qaeda in the Islamic Maghreb (AQIM) offered to drug traders that smuggle cocaine from South America through West and North Africa towards Europe. During the last decade, the terrorist organization charged a fee on the shipments in exchange for its protection along the route (Vardy, 2009).

The convergence of organizations

Both types of organizations can converge into one up to the point that the resulting group can change its motives and objectives from one side to the other of the continuum, constituting a hybrid organization whose defining points and objectives blur. An organization of this nature could be both a criminal group with political motivations, and a terrorist group interested in criminal profits. The first one may for example be interested in getting involved in political processes and institutions or may use violence to gain a monopolized control over a lucrative economic sector.

Criminal and terrorist groups mutate to be able to carry out by themselves a wider range of activities (political and financial) while avoiding competitiveness, misunderstandings and threats to their internal security. This phenomenon was popularized after the 1990s, when criminal groups sought to manipulate the operational conditions of weak states, while terrorist groups sought to find new financial sources other than the declining state sponsors. A clear example of this can be found in the Italian Mafia during the 1990s. A series of deliberate bombing attacks were reported in key locations such as the Uffizi Galleries in Florence and the church of St. John Lateran in Rome. The target was not a specific enemy, but rather the public opinion and political authorities (the Anti-Mafia Commission) who received a warning for having passed legislation unfavorable to the interests of the criminal group. Another example far away from Europe and its traditional criminal groups can be found in Brazil. In the early 2000s, a newly elected government carried out a crackdown on several criminal organizations like the Red Commandthe Amigos dos Amigos, and the group Third Commandwhich reacted violently by unleashing brutal terrorist attacks on governmental buildings and police officers. These attacks gave the Administration no other choice but to give those groups back the immunity with which they had always operated in Rio de Janeiro.

On the other side of the relationship, terrorist organizations have also engaged in criminal activities, most notably illicit drug trade, in what has been a common pattern since the 1970s. Groups like the FARC, ETA, the Kurdistan Workers Party (PKK), or Shining Path are among them. The PKK, for example, made most of its finances using its advantageous geographic location as well as the Balkan routes of entry into Europe to smuggle heroin from Asia into Europe. In yet another example, Hezbollah is said to protect heroin and cocaine laboratories in the Bekaa Valley, in Lebanon.

Drug trafficking is not the only activity used by terrorist groups. Other criminal activities serve the same purpose. For example, wholesale credit-card fraud all around Europe is used by Al Qaeda to gain profits (US$ 1 million a month). Furthermore, counterfeit products smuggling has been extensively used by paramilitary organizations in Northern Ireland and Albanian extremist groups to finance their activities.

Sometimes, the fusion of both activities reaches a point where the political cause that once motivated the terrorist activity of a group ends or weakens, and instead of disbanding, it drifts toward the criminal side and morphs into an organized criminal association with no political motivations) that the convergence thesis identifies is the one of terrorist organizations that have ultimately maintained their political façade for legitimation purposes but that their real motivations and objectives have mutated into those of a criminal group. They are thus able to attract recruits via 2 sources, their political and their financial one. Abu SayyafThe Islamic Movement of Uzbekistan and FARC are illustrative of this. Abu Sayyaf, originally founded to establish an Islamic republic in the territory comprising Mindanao and the Sulu Archipelago (Philippines), is now dedicated exclusively to kidnapping and marijuana plantations. The former granted them US$ 20 million only in 2000. Colombian FARC, since the 1990s, has followed the same path: according to Paul Wilkinson, they have evolved from a revolutionary group that had state-wide support into a criminal guerrilla involved in protection of crops and laboratories, also acting as "middlemen" between farmers and cartels; kidnapping, and extortion. By the beginning of our century, they controlled 40 per cent of Colombia's territory and received an annual revenue of US$ 500 million (McDermott, 2003).

"Black hole states

The ultimate danger the convergence between criminal and terrorist groups may present is a situation where a weak or failed state becomes a safe haven for the operations of hybrid organizations like those described before. This is known as the "black hole" syndrome. Afghanistan, Tajikistan, Angola, Sierra Leone and North Korea are examples of states falling into this category. Other regions, such as the North-West Frontier Province in Pakistan, and others in Indonesia and Thailand in which the government presence is weak can also be considered as such.

Afghanistan has been considered a "black hole state" since at least the withdrawal of Soviet troops in 1989. Since the beginning of the civil war, the groups involved in it have sought to survive, oftentimes renouncing to their ideological foundations, by engaging in criminal activity such as the production and trafficking of opiates, arms or commodities across the border with Pakistan, together with warlords. The chaos that reigns in the country is a threat not only to the nation itself and its immediate neighbors, but also to the entire world.

The People's Republic of Korea (DPRK) is, on the other hand, considered a criminal state. This is because it has engaged in transnational criminal activities since the 1970s, with its "Bureau 39", a government department that manages the whole criminal activity for creating hard currency (drug trafficking, counterfeiting, money laundering, privacy, etc.). This was proved when the Norwegian government expelled officials of the North Korean embassy in 1976 alleging that they were engaged in the smuggling of narcotics and unlicensed goods (Galeotti, 2001).

Another situation may arise where criminal and terrorist groups deliberately foster regional instability for their own economic benefits. In civil wars, these groups may run the tasks that a state's government would be supposed to run. It is the natural evolution of a territory in which a political criminal organization or a commercial terrorist group delegitimizes the state and replaces its activity. Examples of this situation are found in the Balkans, Caucasus, southern Thailand and Sierra Leone (Bangura, 1997).

In Sierra Leone, for example, it is now evident that the violence suffered in the 1990s during the rebellion of the Revolutionary United Forces (RUF) had nothing to do with politics or ideals - it was rather a struggle between the guerrilla and the government to crack down on the other party and reap the profits of illicit trade in diamonds. There was no appeal to the population or political discourse whatsoever. The "black hole" thesis illustrates how civil wars in our times are for the most part a legitimization for the private enrichment of the criminal parties involved and at the same time product of the desire of these parties for the war to never end.

The end of the Cold War saw a shift in the study of the nexus between crime and terrorism. During the previous period, it was a phenomenon only present in Latin America between insurgent groups and drug cartels. It was not until the emergence of Al Qaeda's highly networked and globally interconnected cells that governments realized the level of threat to international security that non-state actors could pose. As long as weak or failed states exist, the crime-terror nexus will be further enhanced. Moreover, the activity of these groups will be buttressed by effects of globalization such as the increase of open borders policies, immigration flows, international transportation infrastructure, and technological development. Policymakers do not pay enough attention to the criminal activities of both types of organizations. Rather than dealing with the political motivations of a group, what really makes the difference is to focus on its funding resources - credit-card frauds, smuggling, money laundering, etc.

The following section focuses on the crime-terror continuum that exists between illegal drug trade and terrorist networks. This phenomenon has emerged in many regions all around the world, but the case of Latin America, or the Andean region more specifically, represents the paradigm of the characteristics, dangers and opportunities of these situations.

NARCO-TERRORISM CASE STUDY:

When drug trafficking meets political violence

The concept of narco-terrorism was born in recent years as a result of the understanding of illicit drug trade and terrorism as two interconnected phenomena. Traditionally linked with Latin America, the concept can now be found in other parts of the world like, for example, the Golden Crescent (Afghanistan, Iran and Pakistan), or the Golden Triangle (Thailand, Laos and Myanmar).

There is no consensus on the convenience and accuracy of the term "narco-terrorism," if only because it may refer to different realities. One can think of narco-terrorism as the use of terrorist attacks by criminal organizations such as the Colombian Medellin Cartel to attain an immediate political goal. Or, from a different point of view, one can think of a terrorist organization engaging in illicit drug trade to raise funds for its activity. Briefly, according to Tamara Makarenko's Crime-Terror Continuum construct all organizations, no matter the type, could at some point move along this continuum depending on their activities and motivations; from the one extreme of a purely criminal organization, to the other of a purely political one, or even constituting a hybrid in the middle (Makarenko, 2010).

There is a general perception of a usual interaction between drug-trafficking and terrorist organizations. Here, it is necessary to distinguish between the cooperation of two organizations of each nature, and an organization carrying out activities under both domains. There are common similarities between the different organizations that can be highlighted to help policymaking more effective.

Both type of organizations cohabit in the same underground domain of society and share the common interest of remaining undiscovered by law enforcement authorities. Also, their transnational operations follow similar patterns. Their structure is vertical in the highest levels of the organization and turns horizontal in the lowest. Finally, the most sophisticated among them use a cell structure to reduce information sharing to the bare minimum to reduce the risk of the organization being unveiled if some of its members are arrested.

The main incentive for organizations to cooperate are tangible resources. Revenues from narcotics trafficking might be very helpful for terrorist organizations, while access to explosive material may benefit drug trade organizations. As an example, according to the Executive Director of the UN Office on Drugs and Crime (UNODC) in 2004, an estimated US$ 2.3 billion of the total revenue of global drug trade end up in the hands of organizations like Al Qaeda. Another example is the illegal market of weapons emerged after the collapse of the Soviet Union, field of interest of both types of networks. On the other hand, intangible resources are similar to tangible in usefulness but different in essence. Intangible resources that drug trafficking organizations possess and can be in the interests of terrorist ones are the expertise on methods and routes of transports, which could be used for terrorist to smuggle goods or people - drug corridors such as the Balkan route or the Northern route. On the other way around, terrorists can share the military tactics, know-how and skills to perpetrate attacks. Some common resources that can be used by both in their benefit are the extended networks and contacts (connections with corrupt officials, safe havens, money laundering facilities, etc.) A good example of the latter can be found in the hiring of ELN members by Pablo Escobar to construct car bombs.

The organizations are, as we have seen, often dependent on the same resources, communications, and even suppliers. This does not lead to cooperation, but rather to competition, even to conflict. Examples can be traced back to the 1980s in Peru when clashes erupted between drug traffickers and the terrorist Shining Pathand in Colombia when drug cartels and the FARC clashed for territorial matters. Even the protection of crops terrorists offer to drug traffickers is one of the main drivers of conflict, even if they do find common grounds of understanding most of the time; for example, in terms of government, revenue-motivated organizations are a threat to the state as they fight to weaken some parts of it such as law enforcement or jurisdiction, while politically-motivated ones wish not only to undermine the state but to radically change its structures to fit their ideological vision (state-run economy, religious-based society, etc.).

The terrorism and drug connection in the Andean Region

Nowhere has the use of illicit drug trade as a source of funds for terrorism been so developed as in the Andean Region (Steinitz, 2002). Leftist groups such as FARC and Peruvian Shining Pathas well as right-wing paramilitary organizations such as the United Self-Defense Forces of Colombia (AUC) are involved in this activity. At the beginning, the engagement between terrorists and drug traffickers was limited only to fees imposed by the former on the latter in exchange for the protection of crops, labs and shipments. Later, FARC and AUC have further expanded this engagement and are now involved in the early stages of the traffic itself - the main substance being cocaine, and the main reward money and arms from the drug syndicates. The terrorist cells can therefore be considered a hybrid of political and criminal groups. The following paragraphs will further analyze each case.

Peru's Shining Path

Shining Path (SL) started to operate in the Huallaga Valley, a strong Peruvian coca region, several years after its foundation, in 1980. Peru was at the time the world's first producer of coca leaf. The plant was then processed into coca paste and transported to Colombian laboratories by traffickers. Arguably, the desire for profit from the coca business rather than for political influence was the ultimate motive for Shining Path's expansion into the region. SL protected the crops and taxed the production and transportation of coca paste: the 1991 document "Economic Balance of the Shining Path" shows that the group charged US$ 3,000-7,000 per flight leaving Huallaga. Taxes were also levied in exchange for a service that the group provided the coca growers: negotiating favorable prices with the traffickers. In the late 1980s, SL's annual income from the business was estimated at US$ 15-100 million (McClintock, 1998).

The Peruvian government's fight against SL represents a milestone in the fight against the terrorism-crime nexus. Lima set up a political-military command which focused on combating terrorism while ignoring drugs, because a reasonable percentage of the Peruvian population eked out a living by working in the coca fields. The government also avoided using the police as they were seen as highly corruptible. They succeeded in gaining the support of peasant growers and traffickers of Huallaga Valley, a valuable source of intelligence to use against SL. The latter finally left the Valley.

But it was not a final victory. Due to the vacuum SL left, the now more powerful traffickers reduced the prices paid for the coca leaf. SL was no longer there to act as an intermediary in defense of peasants and minor traffickers, so thanks to the new lower prices, the cocaine market experienced a boom. The military deployed in the area started to accept bribes in exchange for their laissez-faire attitude, becoming increasingly corrupted. President Fujimori in 1996 carried out a strategy of interdiction of the flights that departed from the Valley carrying coca paste to Colombia, causing the traffickers and farmers to flee and the coca leaf price to fall notably. However, this environment did not last long, and the country is experiencing a rise in drug trade and terrorist subversive activities.

The Colombian nexus expands

The collapse of the Soviet Union and an economic crisis in Cuba diminished the amount of aid that the FARC could receive. After the government's crackdown, with the help of Washington, of the Medellin and Cali cartels, the drug business in Colombia was seized by numerous smaller networks. There was not any significant reduction of the cocaine flow into the United States. The FARC benefited greatly from the neighboring states' actions, gaining privileged access to drug money. Peru under Fujimori had cracked down on the coca paste transports, and Bolivia's government had also put under strict surveillance its domestic drug cultivation. This elimination of competitors caused a doubling of coca production in Colombia between 1995 and 2000. Moreover, opium poppy cultivation also grew significantly and gained relevance in the US' East-coast market. The FARC also benefited from this opportunity.

According to the Colombian government, in 1998 the terrorist groups earned US$ 551 million from drug, US$ 311 million from extortion, and US$ 236 million from kidnapping. So much so that the organization has been able to pay higher salaries to its recruits than the Colombian army pays its soldiers. By 2000, the FARC had an estimated 15,000-20,000 recruits in more than 70 fronts, de facto controlling 1/3 of the nation's territory. Most of the criminal-derived money in the country comes nowadays from taxation and protection of the drug business. According to the Colombian Military, more than half both the FARC's fronts were involved in the collection of funds by the beginning of the 2000s decade, compared to 40% approx. of AUC fronts (Rebasa and Chalk, 1999).

The situation that was created in both scenarios required created a chaos in which the drug cartels, the cultivation syndicates and the terrorist organizations were the strongest actors. This makes it a very unstable environment for the peoples that lived in the territories under criminal/terrorist control. The tactics of law enforcement agents and government, in these cases, need to be carefully planned, so that multilateral counter-drug/counter-terrorist strategies can satisfactorily address threats existing at multiple dimensions. In the following section, the author will review some key aspects of the policies carried out by the US government in this domain.

The "War on Drugs" and the "War on Terror".

Since 9/11, policies considering both threats as being intertwined have become more and more popular. The separation of counter terrorism and counter-narcotics has faded significantly. Although in the Tashkent Conferences of 1999-2000 the necessary link between both was already mentioned, the milestone of cooperative policies is the Resolution 1373 of the UN Security Council (Björnehed, 2006). In it, emphasis is given to the close connection between terrorism and all kinds of organized crime, and therefore coordination at national, regional and global level is said to be necessary. War on drugs and war on terror should no longer be two separate plans of action.

The effectiveness of a policy that wishes to undermine the threat of illicit drug trade and terrorism is to a high degree dependent on successful intelligence gathering. Information about networks, suspects, shipments, projects, etc. benefits agencies fighting drug trafficking as well as those fighting terrorism, since the resources are most of the times shared. Narco-terrorism nexus is also present in legal acts, with the aim of blocking loopholes in law enforcement efforts. Examples are the Victory Act and the Patriot Act, passed in the US. Recognizing the natural link and cooperation between drug trade and terrorism leads to security analysts developing more holistic theories for policymakers to implement more accurate and useful measures.

However, there are many aspects in which illicit drug trade and terrorist activity differ, and so do the measures that should be taken against them. An example of a failure to understand this point can be found in Afghanistan, where the Taliban in 2000 set a ban on poppy cultivation which resulted in a strong increase of its price, this being a victory for traffickers since the trade did not stop. Another idea to have in mind is that strategies of a war on drugs differ greatly depending on the nature of the country: whether it is solely a consumer like the UK or a producer and consumer like Tajikistan. In regard to terrorism, the measures adopted to undermine it (diplomacy, foreign aid, democratization, etc.) may have minimal effect on the fight against drug trade.

Sometimes, the risk of unifying counter-policies is leaving some areas in which cooperation is not present unattended. Certain areas are suitable for a comprehensive approach such as intelligence gathering, law enforcement and security devices, while others such as drug rehabilitation are not mutually beneficial. Not distinguishing the different motivations and goals among organizations can lead to a failed homogenous policy.

CONCLUSIONS:

Multilevel threats demand multilevel solutions

Terrorism has traditionally been considered a threat to national and international security, while illicit drug trade a threat to human security. This perception derives from the effects of drugs in a consumer country, although war on drugs policies are usually aimed at supplier ones. Although it was already constituting a threat to regional stability during the twentieth century, it was not considered a crucial political issue until 9/11 attacks, when the cooperative link between criminal and terrorist organizations became evident. An example of unequal attention paid to both threats can be found in US's Plan Colombia in 2000: one of the main advocators of the legislation stated that the primary focus was on counter-drug, so the United States would not engage with Colombian counterinsurgency efforts (Vaicius, Ingrid and Isacson, 2003).The same type of failure was also seen in Afghanistan but in the opposite way, when the International Security Assistance Force (ISAF) completely neglected any action against drug traffickers, the trade or the production itself.

The merging of drug trafficking and terrorism as two overlapping threats have encouraged authorities to develop common policies of intelligence gathering and law enforcement. The similarities between organizations engaged in each activity are the main reason for this. However, the differences between them are also relevant, and should be taken into consideration for the counter policies to be accurate enough.

Evidence of a substantial link between terrorists and criminals has been proved all along our recent history. Around the world, leaders of mafias and terrorist commanders have oftentimes worked together when they felt that their objectives were close, if not similar. When cohabitating in the outlaw world, groups tend to offer each other help, usually in exchange for something. This is part of human behavior. Added to the phenomenon of globalization, lines tend to be blurred for international security authorities, and thus for the survival of organizations acting transnationally.

The consequences can be noticed especially in Latin America, and more specifically in organizations such as the FARC. We can no longer tell what are the specific objectives and the motivations that pushed youngsters to flee towards the mountains to learn to shoot and fabricate bombs. Is it a political aspiration? Or is it rather an economic necessity? The reason why we cannot answer this question without leaving aside a substantial part of the explanation is the evolution of the once terrorist organization into a hybrid group that moves all along the crime-terror continuum.

The ideas of Makarenko, Björnehed and Steinitz have helped the international community in its duty to protect its societies. It cannot be expected for affected societies to live in peace if the competent authorities try to tackle its structural security issues only through the counter-terrorist approach or through the organized crime lens. The hybrid threats that the world is suffering in the twenty-first century demand hybrid solutions.

 

BIBLIOGRAPHY .

Bangura, Y. (1997) 'Understanding the political and cultural dynamics of the sierra leone war', Africa Development, vol. 22, no. 3/4 [Accessed 10 April 2020].

Björnehed, E., 2006. Narco-Terrorism: The Merger Of The War On Drugs And The War On Terror. [online] Taylor & Francis. Available at [Accessed 10 April 2020].

Galeotti, M. (2001) 'Criminalisation of the DPRK', Jane's Intelligence Review, vol. 13, no. 3 (March) [Accessed 10 April 2020].

Makarenko, T., 2010. The Crime-Terror Continuum: Tracing The Interplay Between Transnational Organised Crime And Terrorism. [online] Taylor & Francis. Available at [Accessed 3 April 2020].

McClintock, C. Revolutionary Movements in Latin America: El Salvador's FMLN and Peru's Shining Path (Washington, D.C.: United States Institute of Peace Press, 1998), p. 341 [Accessed 10 April 2020].

McDermott, J. (2003) 'Financing insurgents in Colombia', Jane's Intelligence Review, vol. 15, no. 2.

(February) [Accessed 10 April 2020].

Mutschke, R., (2000) 'The threat posed by organised crime, international drug trafficking and terrorism', written testimony to the General Secretariat Hearing of the Committee on the Judiciary Subcommittee on Crime (13 December) [Accessed 14 June 2020].

Rebasa and Chalk, pp. 32-33; "To Turn the Heroin Tide," Washington Post, February 22, 1999, p. A9; "Colombian Paramilitary Chief Shows Face," Associated Press, March 2, 2000.

Steinitz, M., 2002. The Terrorism And Drug Connection In Latin America'S Andean Region. [online] Brian Loveman, San Diego State University. Available at [Accessed 10 April 2020].

Vaicius, Ingrid and Isacson, Adam "'The War on Drugs' meets the 'War on Terror' " (CIP International Policy Report February 2003) p. 13.

Vardy, N., 2009. Al-Qaeda's New Business Model: Cocaine And Human Trafficking. [online] Forbes. Available at [Accessed 14 June 2020].

Categories Global Affairs: Security and defense Latin America Essays

Pandemic reinforces the value of production centers in the same subregions

The free trade zones of Central America and the Caribbean have been an important driving force for the economies of the region. Favored by the increasing globalization of recent decades, they could now be boosted by a phenomenon in the opposite direction: "glocalization", the desirability of having production centers in the same sub-region, close to major markets, to avoid the problems in distant supply chains seen during this Covid-19 crisis that has so affected transportation and communications. The two leading Latin American free trade zone countries, the Dominican Republic and Costa Rica, offer affordable and sufficiently skilled labor at the doorstep of the United States.

One of the free trade zones of the Dominican Republic [CNZFE].

▲ One of the Dominican Republic's free trade zones [CNZFE].

article / Paola Rosenberg

The so-called free trade zones, also known in some countries as free zones, are strategic areas within a national territory that have certain tax and customs benefits. In them, commercial and industrial activities are carried out under special export and import rules. It is a way of promoting investment and employment, as well as production and exports, thus achieving the economic development of a part of the country or of the country as a whole.

Free trade zones are important in Latin America and, in the case of the smaller economies, they are the main production and export hubs. agreement to the association of Free Trade Zones of the Americas (AZFA), there are some 3,500 free trade zones in the world, of which 400 are in Latin America, representing 11.4% of the total. Within this region, they have a special weight in the countries of Central America and the rest of the Caribbean basin. They are particularly important in the Dominican Republic and Costa Rica, as well as in Nicaragua, El Salvador, Colombia and Uruguay (also in Puerto Rico).

These countries benefit from having abundant labor (especially trained in the Costa Rican case) and at low cost (especially in the Nicaraguan case), and this close to the United States. For manufacturers wishing to enter the U.S. market, it may be interesting to invest in these free trade zones, taking advantage of the tax advantages and labor conditions, while their production will be geographically very close to their destination.

The latter is gaining ground in a post-Covid-19 world. The trend toward subregionalization, in the face of the fractured dynamics of globalization, has been highlighted for other areas of the American continent, as in the case of the Andean Community, but it also makes a great deal of sense for greater integration between the United States and the Greater Caribbean. To the extent that the United States moves towards a certain decoupling from China, the free trade zones in this geographic area may also become more relevant.

 

Reproduction of the graphic report of the association of Free Trade Zones of the Americas (AZFA), 2018.

Reproduction of the graphic report of the association of Free Trade Zones of the Americas (AZFA), 2018.

 

Export processing zones

Free zones can be export-oriented (external market), import substitution (internal market) or both. The former may have a high industrial component, either seeking diversification or depending on maquilas, or emphasizing logistics services (in the case of Panama's free zones).

Free zones for exporting products have been particularly successful in the Dominican Republic and Costa Rica. As AZFA indicates, of the $31.208 billion exported from Latin American free zones in 2018, first place went to the Dominicans, with $5.695 billion, and second to Costa Ricans, with $4.729 billion (third place went to Puerto Rico, with $3 billion). Exports from the Dominican Republic's free trade zones accounted for 56% of all exports made by that country; in the case of Costa Rica it was 48% (the third in the ranking was Nicaragua, with 44%).

The Dominican Republic is the country with the highest issue of free trade zones (71 multi-company zones) and its 665 companies generated the highest number of direct jobs (165,724). Costa Rica has 48 free zones (in third position, after Nicaragua), and its 343 companies generated 93,496 direct work (in fifth position).

In terms of the profitability for the country of this economic modality , for every dollar exempted between 2010 and 2015, Costa Rica's free zones generated an average of US$6.2 and US$5 for those of the Dominican Republic (El Salvador ranked second, with US$6).

With specific reference to Costa Rica, a report at the end of 2019 by the Costa Rican foreign trade promotion agency, Procomer, placed the contribution of free trade zones at 7.9% of GDP, generating a total of 172,602 work, both direct and indirect, with annual growth in the issue of jobs averaging 10% per year between 2014 and 2018. These areas account for 12% of the country's formal private sector employment . An important fact about the contribution to the development the local Economics is that 47% of the purchases made by the companies located in the free trade zones were from national companies. An important social dimension is that the zones contributed 508 million dollars to the Costa Rican Social Security Fund in 2018.

The Dominican Republic's free trade zone regime is particularly applauded by the World Bank, which describes the country as a pioneer in this subject productive and commercial promotion instrument, presenting it as "the best-known success story in the Western Hemisphere". agreement to the statistics of the Nationalcommittee of Export Processing Zones (CNZFE), these have contributed in recent years to 3.3% of GDP, thus contributing to the significant growth of the country's Economics in recent years (one of the highest fees in the region, with an average of over 6% until the onset of the current global crisis). The geographical proximity to the United States makes its free trade zones ideal for US companies (almost 40% of investment comes from the US) or for companies from other countries that want to export to the large North American market (34% of exports go to the US).

Categories Global Affairs: Economics, Trade and Technology Articles Latin America

finding of a "significant" amount of oil in off-shore wells puts the former Dutch colony on the heels of neighboring Guyana

The intuition has proved to be correct and the prospections carried out under Suriname's territorial waters, together with the successful hydrocarbon reserves being exploited in Guyana's maritime limits, have found abundant oil. The finding could be a decisive boost for the development of what is, after Guyana, the second poorest country in South America, but it could also be an opportunity, as is the case with its neighbor, to accentuate the economic and political corruption that has been hindering the progress of the population.

Suriname's presidential palace in the country's capital, Paramaribo [Ian Mackenzie].

▲ Suriname's presidential palace in the country's capital, Paramaribo [Ian Mackenzie].

article / Álvaro de Lecea

So far this year, drilling in two 'off-shore' oil fields in Suriname has result positive, confirming the existence of "significant" oil in block 58, operated by the French company Total, in partnership with the American company Apache. Everything indicates that the same success could be obtained in block 52, operated by the also American ExxonMobil and the Malaysian Petronas, which were pioneers in prospecting in Surinamese waters with operations since 2016.

Both blocks are adjacent to the fields being exploited under the waters of neighboring Guyana, where for the moment it is estimated that there are some 3.2 billion barrels of extractable oil. In the case of Suriname, the prospections carried out in the first viable field, Maka Central-1, discovered in January 2020, speak of 300 million barrels, but the estimates from Sapakara West-1, discovered in April, and subsequent programmed prospections have yet to be added. It is considered that some 15 billion barrels of oil reserves may exist in the Guyana-Suriname basin.

Until this new oil era in the Guianas (the former English and Dutch Guianas; the French Guianas remains an overseas dependency of France), Suriname was considered to have reserves of 99 million barrels, which at the current rate of exploitation left two decades to deplete. In 2016, the country produced just 16,400 barrels per day.

political, economic and social status

With just under 600,000 inhabitants, Suriname is the least populated country in South America. Its Economics depends largely on the export of metals and minerals, especially bauxite. The fall in commodity prices since 2014 particularly affected the country's accounts. In 2015, there was a GDP contraction of 3.4% and 5.6% in 2016. Although the evolution then became positive again, the IMF forecasts for this 2020, in the wake of the global crisis due to Covid-19, a 4.9% drop in GDP.

Since gaining independence in 1975 from the Netherlands, its weak democracy has suffered three coups d'état. Two of them were led by the same person: Desi Bouterse, the country's president until this July. Bouterse staged a coup in 1980 and remained at the helm of power indirectly until 1988. During those years, he kept Suriname under a dictatorship. In 1990 he staged another coup d'état, although this time he resigned the presidency. He was accused of the 1982 murder of 15 political opponents, in a long judicial process that finally ended in December 2019 with a twenty-year prison sentence and is now appealed by Bouterse. He has also been convicted of drug trafficking in the Netherlands, for which the resulting international arrest warrant prevents him from leaving Suriname. His son Dino has also been convicted of drug and arms trafficking and is imprisoned in the United States. Bouterse's Suriname has come to be presented as the paradigm of the mafia state.

In 2010 Desi Bouterse won the elections as candidate of the National Democratic Party (NDP); in 2015 he was re-elected for another five years. In the elections last May 25, despite some controversial measures to limit the options for civil service examination, he lost to Chan Santokhi, leader of the Progressive Reform Party (VHP). He tried to delay the counting and validation of votes, citing the health emergency caused by the coronavirus, but finally at the end of June the new National Assembly was constituted and it should appoint the new president of the country during July.

 

Total's operations in Suriname and Guyana waters [Total].

Total's operations in Suriname and Guyana waters [Total].

 

Relationship with Venezuela

Suriname intends to take advantage of this prospect of an oil bonanza to strengthen Staatsolie, the state-owned oil company. In January, before the Covid-19 crisis became widespread, it announced the purpose of expanding its presence in the bond market in 2020 and also, conditions permitting, to list its shares in London or New York. This would serve to raise up to $2 billion to finance the national oil company's exploration campaign in the coming years.

On the other hand, Venezuela's territorial claims against Guyana, which affect the Essequibo -the western half of the former British colony- and which are being studied by the International Court of Justice, include part of the maritime space in which Guyana is extracting oil, but do not affect Suriname, whose delimitations are outside the scope of this old dispute.

Venezuela and Suriname have maintained special relations during Chavismo and while Desi Bouterse has been in power. Occasionally, a certain connection has been pointed out between drug trafficking under the protection of Chavista authorities and that attributed to Bouterse. The offer made by his son to Hezbollah to have training camps in Suriname, a matter for which he was arrested in 2015 in Panama at the request of the United States and tried in New York, can be understood in light of the relationship maintained by Chavism and Hezbollah, to whose operatives Caracas has provided passports to facilitate their movements. Suriname has supported Venezuela in regional forums at times of international pressure against the regime of Nicolás Maduro. In addition, the country has been increasingly strengthening its relations with Russia and China, from which in December 2019 it obtained the commitment of a new credit .

With the political change of the last elections, in principle Maduro's Venezuela loses a close ally, while it may gain an oil competitor (at least as long as Venezuelan oil exploitation remains at a minimum).

Categories Global Affairs: Energy, resources and sustainability Articles Latin America

The high incidence of Covid-19 in the country contrasts with the government's swiftness in implementing measures

Peru has been an example in the Covid-19 crisis for its speed in applying containment measures and for approve one of the largest economic stimulus packages in the world, close to 17% of GDP. However, the high incidence of the pandemic, which has made Peru the second Latin American country in coronavirus cases and the third in deaths, has made it necessary to prolong the restrictions on activity longer than expected. This and lower external demand, weaker than initially forecast, have "more than eclipsed" the government's significant economic support, according to the IMF, which forecasts a 13.9% drop in GDP for Peru in 2020, the largest of the region's main economies.

lecture by Peruvian President Martín Vizcarra (r), in the presence of the head of Economics, María Antonieta Alva (l) [Gov. of Peru].

lecture by Peruvian President Martín Vizcarra (r), in the presence of the head of Economics, María Antonieta Alva (l) [Gov. of Peru] [Gov. of Peru].

ARTICLEGabriela Pajuelo

International media such as Bloomberg y The Wall Street Journal have shown admiration for Peru's young Economics Minister, Maria Antonieta Alva. At 35, after a master's degree from Harvard and some experience in Peru's own administration, Alva designed one of the most ambitious economic stimulus plans in all of South America at the beginning of the crisis.

"From a Latin perspective, Peru is a clear leader in terms of macro response; I could have imagined a very different result if Toni wasn't there," he said. Ricardo Hausmannwho was Alva's professor during his stay at Harvard and leads a team of experts advising Peru and ten other countries to mitigate the effects of the coronavirus. The minister has also become one of the best known faces of President Martin Vizcarra's government among the popular classes.

Peru was one of the first countries in Latin America to apply a state of emergency, limiting freedom of meeting and transit in Peruvian territory and restricting economic activity. To prevent the massive spread of the virus, the government decreed the closure of borders, restrictions on interprovincial movement, a daily curfew and a mandatory period of national isolation, which has been extended several times and has become one of the longest in the world.

This extension, which was agreed upon due to the high incidence of the pandemic, has damaged the economic outlook more than expected. In addition, the prolongation of the emergency in countries to which Peruvian exports are destined has weakened their demand for raw materials and damaged the resurgence of Peru's Economics . This is what the IMF estimates, which between its April forecast and the one updated in June has added nine more points to the fall in Peruvian GDP for 2020. The IMF now considers that Peruvian Economics will fall by 13.9% this year, the highest among the region's main countries. Although the ambitious stimulus package will not have prevented this decline, it will boost the recovery, with a GDP increase of 6.5% in 2021, in turn the strongest rebound among the largest Latin American economies. Regarding this last forecast, the IMF specifies that, nevertheless, "there are significant leave risks, linked to national and global challenges to control the epidemic".

A socioeconomic context that does not financial aid to confinement

Despite restrictive social distancing measures, the pandemic has had a high incidence in Peru, with 268,602 diagnosed cases (in Latin America, second only to Brazil) and 8,761 deaths (behind Brazil and Mexico) as of June 25. These high figures are partly due to the fact that the country's socioeconomic conditions have meant that compliance with containment has not been very strict in certain situations. The social context has hindered compliance with mandatory quarantine due to structural problems such as the fragility of health services and infrastructure, the difficulty in making efficient public purchases, prison overcrowding and the digital divide.

The high level of labor informalityThe fact that in 2019 it was 72%, explains why many people must continue working to ensure their subsistence, without following certain protocols or access to certain material; at the same time, this informality prevents greater tax collection that would help to improve budget items such as healthcare. Peru is the second Latin American country with the lowest investment in healthcare.

On the other hand, inequalityThe Gini index, which in 2018 was 42.8, is aggravated by the territorial distribution of the expense, linked to the centralization of employment of the rural population in Lima. During the pandemic, workers from the country's highlands who have migrated to the capital have wanted to return to their places of origin, as many are not on the payroll and do not have labor rights, in contravention of mobility restrictions.

This social context makes it possible to question some of the approved economic measures, according to some Peruvian academics. The president of the Peruvian Institute of Economics (IPE), Roberto Abusada, warned that Peru's macroeconomic strengths will not help forever. He considered that certain regulations cannot be complied withThe "setting parameters such as body mass index (BMI) or an age limit generates obstacles for this group of people, who could be highly qualified, and could not return to their workcenter".

Economic package

At the end of April, Minister Alva presented a $26 billion economic stimulus package, representing 12% of GDP. Additional measures raised this percentage to 14.4% of GDP a month later, and even then it would have been closer to 17%. Comparatively, this is one of the largest stimulus packages adopted in the world (in Latin America, the second country is Brazil, with a stimulus of 11.5% of GDP).

In agreement with the monitoring that the IMF Peru has adopted measures in three different areas: fiscal, monetary and macro-financial, and in terms of the exchange rate and balance of payments.

First, in terms of fiscal measures, the government approved 1.1 billion soles (0.14% of GDP) to address the health emergency. In addition, different measures have been implemented, among which two stand out: the "Stay in your home" bonus and the creation of the Business Support Fund for Micro and Small Enterprises (FAE-MYPE).

The first measure, for which the government approved approximately 3.4 billion soles (0.4% of GDP) in direct transfers, is a 380 soles (US$110) bond, targeted at poor households and vulnerable populations, of which there have been two disbursements. The second measure refers to the creation of a fund of 300 million soles (0.04% of GDP) to support MSEs, in an attempt to guarantee credit for work capital and to restructure or refinance their debts.

Among other fiscal measures, the government approved a three-month extension of the income tax declaration for SMEs, some flexibility for companies and households in the payment of tax obligations, and a deferral of household electricity and water payments. The entire fiscal support package accounts for more than 7% of GDP.

On the other hand, in terms of monetary and macro-financial measures, the Central reservation Bank (BCR) reduced the reserve requirement rate by 200 basis points, bringing it to 4%, and is monitoring the evolution of inflation and its determinants to increase monetary stimulus if necessary. It has also reduced reserve requirements , provided liquidity to the system with a package backed by government guarantees of 60 billion soles (more than 8% of GDP) to support loans and the chain of payments.

In addition, exchange rate and balance of payments measures have been implemented through the BCR's intervention in the foreign exchange market. By May 28, the BCR had sold approximately US$2 billion (0.9% of GDP) in foreign exchange swaps. International reserves remain significant at over 30% of GDP.

On the other hand, in the area of trade relations, Peru agreed not to impose restrictions on foreign trade operations, while liberalizing the loading of goods, speeding up the issuance of certificates of origin, temporarily eliminating some tariffs and waiving various infractions and penalties contained in the General Customs Law. This was especially true for transactions with strategic partners, as the European UnionAccording to Alberto Almendres, the president of Eurochambres (the association of European Chambers in Peru). 50% of foreign investment in Peru comes from Europe.

Peruvian exports, although the emergence of the coronavirus in China at the beginning of the year led to a slowdown in transactions with that country, mining and agricultural exports remained positive. in the first two months of the yearas indicated by the research and development Institute of Foreign Trade of the Lima Chamber of Commerce (Idexcam). Subsequently, the impact has been greater, especially in the case of raw material exports and tourism.

Comparison with Chile and Colombia 

The status in Peru can be analyzed in comparison with its neighbors Chile and Colombia, which will have a somewhat smaller drop in GDP in 2020, although their recovery will also be somewhat smaller.

In terms of the issue of confirmed Covid-19 cases as of June 25, Chile (259,064 cases) is similar in size to Peru (268,602), although the issue of deaths is almost half (4,903 Chileans and 8,761 Peruvians), which corresponds to the proportion of its total population.

In response to the pandemic, Chilean authorities implemented a series of measures, including the declaration of a state of catastrophe, travel restrictions, school closures, curfews and bans on public gatherings, and a telework law. This crisis came only a few months after the social unrest experienced in the country in the last quarter of 2019.

On the economic front, Chile approved a stimulus of 6.7% of GDP. On March 19, the authorities presented a fiscal package of up to US$11.75 billion focused on supporting corporate employment and liquidity (4.7% of OPIB), and on April 8, an additional US$2 billion of financial aid to vulnerable households was announced, as well as a credit guarantee scheme of US$3 billion (2%). In its June forecast update , the IMF expects Chile's GDP to fall by 7.5% in 2020 and increase by 5% in 2021.

As for Colombia, the level of contagion has been lower (77,313 cases and 2,611 deaths), and its economic package to deal with the crisis has also been smaller: 2.8% of GDP. The Government created a National Emergency Mitigation Fund, which will be partially financed by regional and stabilization funds (about 1.5% of GDP), complemented by the issuance of national bonds and other budgetary resources (1.3%). In its recent update, the IMF forecasts that Colombia's GDP will fall by 7.8% in 2020 and rise by 4% in 2021.

Categories Global Affairs: World order, diplomacy and governance Articles Latin America