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[Eric Rutkow, The Longest Line on the Map: The United States, the Pan-American Highway and the Quest to Link the Americas. Scribner. New York, 2019. 438 p.]

 

REVIEW / Marcelina Kropiwnicka

The Longest Line on the Map: The United States, the Pan-American Highway and the Quest to Link the AmericasThough the title tries to convince the reader that they will merely be exploring the build-up to the largest link between the United States of America and its southern neighbors, The Longest Line on the Map: The United States, the Pan-American Highway and the Quest to Link the Americas covers much more. The book is written in more of a novel-fashion than a textbook-fashion. Author Eric Rutkow, rather than simply discussing the nitty-gritty development of the highway alone, is able to cover historical events from political battles in the homeland of the US to economic hardships encountered among the partner countries. Divided into three main blocks, the book chronologically introduces the events that took place during the Pan-American Highway's construction, beginning with the dream that a railway would connect the two hemispheres.

With the New World just barely beginning to grasp its potential, writer Hinton Rowan Helper's first-hand experience of traveling from the United States to Argentina in the mid-1800s made him come to the realization that there must be an alternative method of traveling between the two countries. After enduring the long voyage, he came to the conclusion, "Why not by rail?" The first quarter of the book hence explains the early attempts made towards linking the wide span between North America and Southern Argentina through the use of a railroad. Thus, when in 1890 the Intercontinental Railway Commission was created, the idea of a Pan-American railway began to flourish and preliminary work began.

The idea was passed on from one indefatigable supporter to another, keeping in mind the cooperative aim of pan-Americanism and the potential for US economic expansion. Yet still by the early 1900s, over half of the projected length of the railway remained unassembled. Despite multiple attempts and investment in building and rebuilding the rail (mainly due to logistical purposes), the project came to a final halt with the realization that the Pan-American Railway was beginning to look like what it was: an unfeasible dream. President Theodore Roosevelt had concluded similarly in 1905, when he gave preference to developing the Panama Canal, regulating the rules of the railway and building the US Navy. In the subsequent and comparatively short chapter of the book, Rutkow introduces the era when automobiles and bicycles were on the rise, causing a demand for the increased construction of roads and exhaustive efforts to build decent thoroughfare within the US. Also made note of in the book was the diverging attention from the railroad as a result of the outbreak of the First World War. These events combined would ultimately cease continuation of the railroad's assembly.

The second half of the book is dedicated to the continuation of the dream of connecting the two spheres using a different method: the building of the Pan-American Highway. Although only a sister to the railway project, the two ideas arise from the same ideal. The new project seemed especially tangible due to the growth of the 'motoring generation' and the strengthened advocacy of Pan-Americanism. The belief was that the highway would foster "closer and more harmonious relations" among the nations in the Americas. Nevertheless, the highway remains unfinished due to a mere 50-mile wide gap, known as the Darien Gap, located between Panama and Colombia ("mere" considering the highway today stretches more than 20,000 miles, connecting Alaska to the southern tip of Argentina).

The most engaging part of the book emerges in the last chapter, when Rutkow attempts at connecting the missing link between the two worlds, but isn't able to, which reminds us that the road remains unfinished. The chapter, which is committed to the Darien Gap, is able to give light to the idea that once, the two spheres had a dream of connecting, contrasting to what we see today with the pressure of erecting walls along the southern US border. Though the dream continues to overcome the gap and finish the road, a new challenge had finally emerged: Panama had changed its policy and refused to finish the pavement.

As for such a well-researched book of one of the largest projects on the American continent, there's a peculiar laxity: the coverage on South America is far less complete in comparison to all the focus that the United States' government efforts to organizing and funding the link received. In terms of critiquing the book as a literary piece, not every quotation within the book would be considered absolutely necessary to telling the story. Ironically there's a certain scarcity when it comes to describing the road itself or its surrounding environment. Perhaps the author makes up for this blunder with his meticulous choosing of maps and images to provide the reader with a context of the environment and era in which the dream was being pursued.

Categories Global Affairs: North America Logistics and infrastructure Book reviews Latin America

Geothermal energy already accounts for 7.5% of the Central American electricity mix, with installed capacity still far below the estimated potential.

Central America's volcanic activity and tectonic movement offer optimal conditions for the region's small countries to take advantage of an alternative energy source to imported hydrocarbons or an ever more polluting coal. For the time being, installed capacity - the largest in Costa Rica and El Salvador - is barely 15% of the most likely estimated potential.

San Jacinto-Tizate geothermal power plant in Nicaragua [Polaris Energy Nicaragua S. A.] [Polaris Energy Nicaragua S. A.].

▲ San Jacinto-Tizate geothermal plant in Nicaragua [Polaris Energy Nicaragua S. A.] [Polaris Energy Nicaragua S. A.].

article / Alexia Cosmello

Central America currently has an installed geothermal capacity of 645 megawatts (MW), far from the potential attributed to the region. This may reach, in the highest band of estimates, almost 14,000 MW, although the most likely estimates speak of around 4,000 MW, which means a current utilization of approximately 15%, according to World Bankdata published in 2018.

The energy obtained constitutes 7.5% of the total electricity generation in Central American countries: a not insignificant figure, but one that still needs to grow. Forecasts point to an expanding sector, although attracting the necessary foreign investment has so far been limited by the risks inherent in this industry and national legal frameworks.

Geothermal energy is a clean, renewable energy that does not depend on external factors. It consists of harnessing the heat of the earth's interior - high temperature resources in the form of hot subway fluids - for electrical and thermal generation (heating and domestic hot water). It is governed by the magmatic movement of the earth, which is why it is a scarce resource and limited to certain regions with a significant concentration of volcanic activity or tectonic movement.

Latin America

These characteristics of the American isthmus are also shared by Mexico, where the geothermal sector began to develop in the 1970s and has reached an installed capacity of 957 MW. The friction of the tectonic plates along the South American and eastern Caribbean coast also gives these subregions an energy potential, although less than that of Central America; its exploitation, in any case, is small (only Chile, with 48 MW installed, has really begun to exploit it). The total geothermal potential of Latin America could be between 22 GW and 55 GW, a particularly imprecise range given the few explorations carried out. Installed capacity is close to 1,700 MW.

The World Bank estimates that over the next decade, Latin America would need an investment of between US$2.4 billion and US$3.1 billion to develop various projects, which would add a combined generation of some 776 MW, half of which would correspond to Central America.

Attracting private capital is not easy, considering that since the 1990s the Latin American geothermal sector has had less than US$1 billion in private investment. Financing difficulties are partly related to the very nature of the activity, as it requires a high initial investment, which is high risk because exploration is laborious and it takes time to reach the energy production stage. Other aspects that have made it less attractive have been the policies and regulatory frameworks of the countries themselves and their deficiencies in local and institutional management .

Geothermal energy, in any case, should be a priority for countries with high potential such as Central America, given that, as the International Renewable Energy Agency (IRENA) points out, it constitutes a source of low-cost electricity generation and also stimulates low-carbon economic growth. For this reason, this organization has order on the governments of the Central American region to adopt policies that favor the use of this valuable resource , and to develop legal and regulatory frameworks to promote them.

The World Bank and some countries with special technological expertise are involved in international promotion and advice. Thus, Germany has been carrying out a geothermal potential development program under the German Climate Technology Initiative (DKTI) since 2016. Cooperating in the project are the Geothermal development Fund (GDF), implemented by the German development bank KfW, and the Central American Geothermal Resource Identification Program, supported by the German Federal Institute for Geosciences and Natural Resources (BGR). The initiative is also supported by the German Agency for International Cooperation (GIZ), which has organized technical courses, together with the LaGeo business , located in El Salvador, for geothermal plant operators, teachers and researchers in the subject, with the goal of achieving better management of the installations and more efficient development of the energy projects.

 

 

By country

Although Central American countries have shown a high dependence on imported hydrocarbons as an energy source , in terms of electricity generation the sub-region has achieved a significant development of renewable alternatives, made available to all members of the Central American Integration System (SICA) through the Electrical Interconnection System for Central American Countries (SIEPAC). The executive director of the administrative office General of SICA, Werner Vargas, highlighted at the beginning of 2019 that 73.9% of the electricity produced at the regional level is generated with renewable sources.

However, he indicated that in order to cope with the growing electricity demand, which between 2000 and 2013 increased by 70%, the region needs to make greater use of its geothermal capacities. Greater integration of geothermal energy would save more than 10 million tons of CO2 emissions per year.

The share of geothermal energy in the electricity mix varies from country to country. The highest share corresponds to El Salvador (26%), Nicaragua (15%) and Costa Rica (12.5%), while the share is small in Honduras (3%) and Guatemala (2.5%).

In Costa Rica, the Costa Rican Electricity Institute (ICE) delivered last July the Las Pailas II geothermal plant, in the province of Guanacaste, at a total cost of US$ 366 million. The plant will contribute a maximum of 55 MW to the electricity network , so that when fully operational it will raise the total installed capacity in the country from 207 MW to 262 MW.

Costa Rica is followed by El Salvador in electricity generation from geothermal energy. The national leader in production is the business LaGeo, manager of almost all of the 204 MW installed in the country. This business has two plants, one in Ahuachapá, which produces 95 MW, and the other in Usulután, with a production of 105 MW. With lower electricity consumption than Costa Rica, El Salvador is the Central American country with the highest weight of geothermal generation in its electricity mix, 26%, double that of Costa Rica.

Nicaragua has an installed capacity of 150 MW, thanks to the geothermal interest of the Pacific volcanic mountain range. However, production levels are clearly below, although they account for 15% of the country's electricity generation. Among the geothermal projects, the San Jaciento-Tizate and Momotombo projects are already being exploited. The first, operated by the Polaris Energy business , was built in 2005 with the initial intention of producing 71 MW, to reach 200 MW by the end of this decade; however, it is currently producing 60 MW. The second, controlled by the ORMAT business and the participation of ENEL, was launched in 1989 with a capacity of 70 MW, although it has been producing 20 MW since 2013.

Guatemala is slightly behind, with an installed capacity of 49 MW, followed by Honduras, with 35 MW. Both countries recognize the interest of geothermal exploitation, but have lagged behind in promoting it. The Guatemalan government's ownprograms of study highlight the profitability of geothermal resources, whose production cost is US$ 1 per MW/hour, compared to US$ 13.8 in the case of hydroelectric power or 60.94 percent for coal.

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

Brazilian congress approves ratification of the Technology Safeguards agreement signed by Trump and Bolsonaro

With the reactivation of its Alcantara launch center, the best located in the world due to its proximity to the Equator, the Brazilian space industry expects to reach a business Issue of 10 billion dollars per year from 2040, with control of at least 1% of the world sector, especially in the area of space launches. Jair Bolsonaro's government has agreed to guarantee technological confidentiality to the US, reaching an agreement that Washington had already tried unsuccessfully before the Workers' Party came to power.      

space launch area of the Brazilian Alcantara space center [AEB].

▲ space launch area of the Brazilian Alcântara space center [AEB].

article / Alejandro J. Alfonso [English version].

Brazil wants to be part of the new space era, in which private initiative, especially that of the United States, will play a major role, along with the traditional role of the national agencies of the major powers. With the Technology Safeguardsagreement , signed last March by Presidents Donald Trump and Jair Bolsonaro, the strategic Alcantara base will be able to launch rockets, spacecraft and satellites equipped with U.S. technology.

The guarantee of technological confidentiality - access to certain parts of the base will only be authorized to U.S. staff , although jurisdiction will remain with the Brazilian Air Force - will mean that Alcantara will no longer have to negotiate contracts with only 20% of the world market, as has been the case until now, something that hindered the economic viability of the base. However, the agreement also has a limiting aspect, since it only authorizes Brazil to launch national or foreign rockets and aircraft that contain technological parts developed by the US.

The new political context in Brazil meant that the agreement was ratified without problems on October 22 by the Chamber of Deputies and on November 12 by the Senate, a very different status from that experienced in 2000, when congress blocked a similar agreement promoted by President Fernando Henrique Cardoso. The subsequent arrival of the Workers' Party to power, with the presidencies of Luiz Inácio Lula da Silva and Dilma Rousseff, cooled relations between the two countries and Washington momentarily set aside its interest in Alcântara.

Brazil's space aspirations go back a long way; its aerospace industry is the largest in Latin America. In the 1960s it developed a first launch base, Hell's Barrier, near Natal. In 1994 the military matrix of the research was transformed into the civilian Brazilian Space Agency (AEB). In addition to the development of satellites, in 2004 AEB launched its first rocket. In 2006 a Brazilian astronaut joined the International Space Station, of which Brazil is a partner.

The Alcântara launch center is located in Maranhão, a state in northeastern Brazil. Alcántara is a small colonial town located 100 kilometers from São Luís, the state capital. The town has 22,000 inhabitants and has access to the sea. The launch center was built during the 1980s and has an area of 620 square kilometers. In addition, the launch base is located 2.3 Degrees south of the equator, making it an ideal location for launching satellites into geostationary orbit. The unique geographic conditions of the launch site attract companies interested in launching small to medium-sized satellites, generally used for communications or surveillance satellites. Unfortunately, the facility suffered a bad reputation when operations were briefly halted due to a failed launch in 2003, resulting in the death of 21 technicians and the destruction of some of the facilities. In 2002 the Agency

The United States is interested in Alcantara because of its strategic location. As mentioned above, the launch site is 2.3 Degrees south of the Equator, which allows U.S. rockets to save up to 30% in fuel consumption compared to launches from Cape Canaveral, Florida. Also, due to its proximity to the Equator, the drag to reach orbit is lower than Cape Canaveral, which means that companies can increase the weight of the rocket or the cargo it carries without adding additional fuel. Thus, this location offers U.S. companies the same advantages enjoyed by their European counterparts who use a launch site in French Guiana, located nearby, north of the equator. The Technology Safeguards agreement signed between Presidents Bolsonaro and Trump in March is intended to attract these U.S. companies by assuring them that U.S. companies that do use the Alcantara facility will have the necessary protection and safeguards so that their technology is not stolen or copied by Brazilian operators or engineers.

The Brazilian government is clearly interested in having the Americans use the Alcantara site. The global space industry is worth approximately $300 billion, and Brazil, which still has a space agency in development, could use the funds from leasing the launch site to further develop its space capabilities. The Brazilian Space Agency has been underfunded for many years, so additional revenue is especially convenient for it. In addition, Brazilian officials have speculated that the investment in the launch site will bring more investment to the Alcantara region in general, improving the quality of life in the area. For example, the Kourou base in French Guiana generates 15% of the GDP of that French overseas territory, directly or indirectly employment 9,000 people. In conclusion, the Bolsonaro government hopes that this agreement will deepen the relationship with the USA, and that it will also provide monetary means to invest in the launch site and its surroundings, and to invest in the Brazilian Space Agency.

 

 

However, this agreement has also been criticized. In 2000, President Cardoso's government attempted to sign a similar agreement with the George W. Bush administration which was ultimately blocked by the Brazilian congress for fear that Brazil would cede its sovereignty to the US. These same fears are still present today. Former Brazilian Foreign Minister Samuel Pinheiro Guimarães Nieto stated that the US is seeking to establish a military base in Brazil, thus injuring the sovereignty of the Brazilian people. Criticism is also directed at the essay of the agreement itself, which states that the money the Brazilian government earns from the US use of the launch center cannot be invested in rockets of exclusively Brazilian development , but can be invested in other areas related to the Brazilian Space Agency.

In addition to arguments about the integrity of Brazilian sovereignty, there is also a defense of the Quilombolas, descendants of Brazilian slaves who escaped their masters, who were displaced from their coastal lands when the base was built. Currently, the government is proposing to increase the size of the Alcantara launch site by 12,000 hectares, and Quilombo communities fear that they will once again be forced to move, causing them further impoverishment. This has been the subject of discussion in both the Brazilian congress and the U.S.congress , with Democratic House representatives introducing a resolution calling on the Bolsonaro government to respect the rights of the Quilombolas.

The Technology Safeguards agreement is mainly a commercial agreement in order to attract more U.S. companies to Brazil for the Alcantara site, which would save money for these companies due to the ideal location of the launch site, while they would have the opportunity to invest in the Brazilian space program. However, due to the controversies mentioned above, some may consider this as a unilateral agreement where only U.S. interests prevail, while the Brazilian government and people lose sovereignty over a strategic site. However, it should be noted that Brazil has traditionally developed an important aeronautical industry (Embraer, recently bought by Boeing, is an excellent example) and the Alcantara base provides the opportunity for Brazil to leap into the new space age.

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

US border patrol vehicle near the fence with Mexico [Wikimedia Commons].

▲ US border patrol vehicle near the fence with Mexico [Wikimedia Commons].

ESSAY / Gabriel de Lange

I. Current issues in the Northern Triangle

In recent years, the relationship between the Northern Triangle Countries (NTC) -Guatemala, Honduras, and El Salvador- and it's northern neighbors Mexico and the United States has been marked in mainstream average for their surging migration patterns. As of 2019, a total of 977,509 individuals have been apprehended at the Southwest border of the US (the border with Mexico) as compared to 521,093 the previous year (years in terms of US fiscal years). Of this number, an estimated 75% have come from the NTC[1]. These individuals are typically divided into three categories: single adults, family units, and unaccompanied alien children (UAC).

As the Economic Commission for Latin America and the Caribbean (ECLAC) reports, over 65% of the population of the NTC are below 29 years of age[2]. This is why it is rather alarming to see an increasing number of the youth population from these countries leaving their homes and becoming UAC at the border.

Why are these youths migrating? Many studies normally associate this to "push factors." The first factor being an increase in insecurity and violence, particularly from transnational organized crime, gangs, and narco-trafficking[3]. It is calculated that six children flee to the US for every ten homicides in the Northern Triangle[4]. The second significant factor is weak governance and corruption; this undermines public trust in the system, worsens the effects of criminal activity, and diverts funds meant to improve infrastructure and social service systems. The third factor is poverty and lack of economic development; for example in Guatemala and Honduras, roughly 60% of people live below the poverty line[5].

The other perspective to explain migration is through what are called "pull factors." An example would be the lure of economic possibilities abroad, like the high US demand for low-skilled workers, a service that citizens of NTC can provide and be better paid for that in their home countries. Another pull factor worth mentioning is lax immigration laws, if the consequences for illegal entry into a country are light, then individuals are more likely to migrate for the chance attaining better work, educational, and healthcare opportunities[6].

II. US administrations' strategies

A. The Obama administration (2008-2015)

The Obama administration for the most part used the carrot and soft power approach in its engagement with the NTC. Its main goals in the region being to "improve security, strengthen governance, and promote economic prosperity in the region", it saw these developments in the NTC as being in the best interest of US national security[7].

In 2014, in the wake of the massive surge of migrants, especially UACs, the administration launched the reform initiative titled the Plan of the Alliance for Prosperity (A4P). The plan expanded across Central America but with special focus on the NTC. This was a five year plan to address these "push factors" that cause people to migrate. The four main ways that the initiative aims to accomplish this is by promoting the following: first, by fostering the productivity sector to address the region's economic instability; second, by developing human capital to increase the quality of life, which improves education, healthcare and social services; third, improving citizen security and access to justices to address the insecurity and violence threat, and lastly, strengthening institutions and improving transparency to address the concerns for weak governance and corruption[8].

This initiative would receive direct technical support and financing from the Inter-American Development Bank (IDB). In addition, major funding was to be provided by the US, which for the fiscal years of 2015-2018 committed $2.6 billion split for bilateral assistance, Regional Security Strategy (RSS), and other regional services[9]. The NTC governments themselves were major financiers of the initiative, committing approximately $8.6 billion between 2016-2018[10].

The administration even launched programs with the US Agency for International Development (USAID). The principle one being the Central American Regional Security Initiative (CARSI), with a heavy focus on the NTC and it's security issues, which allotted a budget of $1.2 billion in 2008. This would later evolve into the larger framework of US Strategy for Engagement in Central America in 2016.

The Obama administration also launched in 2015 the Deferred Action for Childhood Arrivals (DACA), which currently allows individuals who were brought to the US as children, and have unlawful statuses to receive a renewable two-year period of deferred action from deportation[11]. It is a policy that the Trump administration has been fighting to remove these last few years.

Although the Obama administration was quite diplomatic and optimistic in its approach, that didn't mean it didn't make efforts to lessen the migration factors in more aggressive ways too. In fact, the administration reportedly deported over three million illegal immigrants through the Immigration and Customs Enforcement (ICE), the highest amount of deportations taking place in the fiscal year of 2012 reaching 409,849 which was higher than any single one of the Trump administration's reported fiscal years to date[12].

In addition, the Obama administration used educational campaigns to discourage individuals from trying to cross into the US illegally. In 2014 they also launched a Central American Minors (CAM) camp targeting children from the NTC and providing a "safe, legal and orderly alternative to US migration"[13]. This however was later scrapped by the Trump Administration, along with any sense of reassessment brought about by Obama's carrot approach. 

 

Number of apprehensions and inadmissibles on the US border with Mexico [Source: CBP].

Number of apprehensions and inadmissibles on the US border with Mexico [Source: CBP].

 

B. The Trump administration (2016-present)        

The Trump administration's strategy in the region has undoubtedly gone with the stick approach. The infamous "zero tolerance policy" which took place from April-June 2018 is a testimony to this idea, resulting in the separation of thousands of children from their parents and being reclassified as UAC[14]. This was in an attempt to discourage individuals in the NTC from illegally entering the US and address these lax immigration laws.

From early on Trump campaigned based on the idea of placing America's interests first, and as a result has reevaluated many international treaties and policies. In 2016 the administration proposed scaling back funds for the NTC through the A4P, however this was blocked in Congress and the funds went through albeit in a decreasing value starting with $754 million in 2016 to only $535 million in 2019.

Another significant difference between the two administrations is that while Obama's focused on large multi-lateral initiatives like the A4P, the Trump administration has elected to focus on a more bilateral approach, one that goes back and forth between cooperation and threats, to compliment the existing strategy.

Towards the end of 2018 the US and Mexico had announced the concept of a "Marshal Plan" for Central America with both countries proposing large sums of money to be given annually to help improve the economic and security conditions in the NTC. However in this last year it has become more apparent that there will be difficulties raising funds, especially due to their reliance on private investment organisations and lack of executive cooperation. Just last May, Trump threatened to place tariffs on Mexico due to its inability to decrease immigration flow. President López Obrador responded by deploying the National Guard to Mexico's border with Guatemala, resulting in a decrease of border apprehensions by 56%[15] on the US Southwest border. This shows that the stick method can achieve results, but that real cooperation cannot be achieved if leaders don't see eye to eye and follow through on commitments. If large amount of funding where to be put in vague unclear programs and goals in the NTC, it is likely to end up in the wrong hands due to corruption[16].  

In terms of bilateral agreements with NTC countries, Trump has been successful in negotiating with Guatemala and Honduras in signing asylum cooperative agreements, which has many similarities with a safe third country agreement, though not exactly worded as such. Trump struck a similar deal with El Salvador, though sweetened it by granting a solution for over 200,000 Salvadorans living in US under a Temporary Protection Status (TPS).[17]

However, Trump has not been the only interested party in the NTC and Mexico. The United Nations' ECLAC launched last year its "El Salvador-Guatemala-Honduras-Mexico Comprehensive Development Program", which aims to target the root causes of migration in the NTC. It does this by promoting policies that relate to the UN 2030 diary and the 17 sustainable development goals. The four pillars of this initiative being: economic development, social well-being, environmental sustainability, and comprehensive management of migratory patters[18]. However the financing behind this initiative remains ambiguous and the goals behind it seem redundant. They reflect the same goals established by the A4P, just simply under a different entity.

The main difference between the Obama and Trump administrations is that the A4P takes a slow approach aiming to address the fundamental issues triggering migration patterns, the results of which will likely take 10-15 years and steady multi-lateral investment to see real progress. Meanwhile the Trump administration aims to get quick results by creating bilateral agreements with these NTC in order to distribute the negative effects of migration among them and lifting the immediate burden. Separately, neither strategy appears wholesome and convincing enough to rally congressional and public support. However, the combination of all initiatives -investing effort both in the long and short run, along with additional initiatives like ECLAC's program to reinforce the region's goals- could perhaps be the most effective mechanism to combat insecurity, weak governance, and economic hardships in the NTC.


[2] N/A. "Northern Triangle: Building Trust, Creating Opportunities." Inter-American Development Bank. Accessed November 5, 2019.

[3] Orozco, Manuel. "Central American Migration: Current Changes and Development Implications." The Dialogue. November 2018. Accessed November 2019.

[4] Bell, Caroline. "Where is the Northern Triangle?" The Borgen Project. October 23, 2019. Accessed November 6, 2019. 

[5] Cheatham, Amelia. "Central America's Turbulent Northern Triangle." Council on Foreign Relations. October 1, 2019. Accessed November 6, 2019.

[6] Arthur, R. Andrew. "Unaccompanied Alien Children and the Crisis at the Border." Center for Immigration Studies. April 1, 2019. Accessed November 9, 2019. 

[7] Members and Committees of Congress. "U.S. Strategy for Engagement in Central America: Policy Issues for Congress." Congressional Research Service. Updated November 12, 2019. November 13, 2019.  

[8] N/A. "Strategic Pillars and Lines of Action." Inter-American Development Bank. 2019. Accessed November 10, 2019. 

[9] N/A. "Budgetary Resources Allocated for the Plan of the Alliance for Prosperity." Inter-American Development Bank. N/A. Accessed November 10, 2019. 

[10] Schneider, L. Mark. Matera, A. Michael. "Where Are the Northern Triangle Countries Headed? And What Is U.S. Policy?" Centre for Strategic and International Studies. August 20, 2019. Accessed November 11, 2019. 

[11] N/A. "Deferred Action for Childhood Arrivals (DACA)." Department of Homeland Security. N/A. Accessed November 12, 2019.  

[12] Kight, W. Stef. Treene, Alayna. "Trump isn't Matching Obama deportation numbers." Axios. June 21, 2019. Accessed November 13, 2019. 

[13] N/A. "Unaccompanied Alien Children: An Overview." Congressional Research Service. October 9, 2019. Accessed November 10, 2019.  

[14] N/A. "Unaccompanied Alien Children: An Overview." Congressional Research Service. October 9, 2019. Accessed November 10, 2019. 

[15] Nagovitch, Paola. "Explainer: U.S. Immigration Deals with Northern Triangle Countries and Mexico." American Society/Council of Americans. October 3, 2019. Accessed November 10, 2019. 

[16] Berg, C. Ryan. "A Central American Martial Plan Won't Work." Foreign Policy. March 5, 2019. Accessed November 11, 2019. 

[17] Nagovitch, Paola. "Explainer: U.S. Immigration Deals with Northern Triangle Countries and Mexico." American Society/Council of Americans. October 3, 2019. Accessed November 10, 2019. 

[18] Press Release. "El Salvador, Guatemala, Honduras and Mexico Reaffirm their Commitment to the Comprehensive Development Plan." ECLAC. September 19,2019. Accessed November 11, 2019. 

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

U.S. agreements with the Northern Triangle may have had a deterrent effect before entering into force

In the first month following the extension of the Asylum Cooperation Agreements (ACA) to the three Northern Triangle countries, apprehensions at the US border have fallen below recent years. The actual reduction in migrant inflows evidenced by this has to do with Mexico's increased control over its border with Guatemala, but may also be due to the deterrent effect of the advertisement the agreements, whose implementation has not yet fully begun and therefore has yet to demonstrate whether they will be directly effective.

Honduran migrants held by Guatemalan border guards, October 2018 [Wikimedia Commons].

▲ Honduran migrants held by Guatemalan border guards, October 2018 [Wikimedia Commons].

article / María del Pilar Cazali

Attempts to entrance the United States through its border with Mexico have not only returned to the levels of earlier in the year, before the number of migrants soared and each month set a new record high, reaching 144,116 apprehensions and inadmissions in May( U.S.Border Guard figures that provide an indirect assessment of the evolution of migration), but have continued to decline to below several previous years.

The month of October (the first month of the 2020 US fiscal year), there were 45,250 apprehensions and inadmissions at the US southern border, below the figure for the months of October 2018, 2015 and 2016 (though not 2017). This allows us to predict that the total number of apprehensions and inadmissions in the new fiscal year will fall clearly below the record of 977,509 recorded in 2019. This boom had to do with the migrant caravans that began at the end of 2018 in the Central American Northern Triangle (Honduras, El Salvador and Guatemala), following a migratory flow that, with different intensities, began in the 1980s due to political and economic instabilities in those countries.

This migration crisis led President Trump's U.S. administration to implement harsher deportation policies, including changing conditions for expedited deportations. In addition, the White House pressured Mexico with the threat of tariffs on its products if it did not help reduce the flow of migrants crossing Mexican soil, prompting President López Obrador to deploy the newly created National Guard to the border with Guatemala. Trump combined these measures with the negotiation with the Northern Triangle countries of Asylum Cooperation Agreements (ACAs), which were initially improperly referred to as "safe third countries", adding to the controversy they generated.

agreement with Guatemala

Due to US threats to impose tariffs on Guatemala if it failed to reduce the issue of migrants from or passing through Guatemala on their way to the US, the Guatemalan government accepted the terms of an attention announced by Trump on July 26, 2019. The agreement provides that those seeking asylum in the US but who have previously passed through Guatemala will be brought back to the US so that they can remain there as asylees if they qualify. The United States sees this as a safe third country agreement .

A safe third countryagreement is an international mechanism that makes it possible to receive in one country those seeking asylum in another. The agreement signed in July prevents asylum seekers from receiving U.S. protection if they passed through Guatemala and did not first apply for asylum there. The U.S. goal is to prevent migrants from Honduras and El Salvador from seeking asylum in the United States. The responsibility for processing protection requests will fall on Washington in only three cases: unaccompanied minors, persons with a U.S.-issued visa or admission document, or persons who are not required to obtain a visa. Those who do not meet the requirements will be sent to Guatemala to await resolution of their case, which could take years. On the other hand, the agreement does not prevent Guatemalan and Mexican applicants from seeking asylum in the United States.

The president of Guatemala, Jimmy Morales, had previously announced that a similar agreement could become part of the immigration negotiations being carried out with the US. In Guatemala, after the advertisement the agreement, multiple criticisms arose, because the security conditions of both countries are incomparable. To this were added rumors about the true content of the agreement that Morales had signed, since it was not immediately revealed to the public. Faced with this uncertainty, the Minister of the Interior, Enrique Degenhart, declared that the agreement was only for Hondurans and Salvadorans, not for nationals of other Latin American countries, and that the text did not explicitly mention the term "safe third country".

The week following the advertisement, three appeals for legal protection against the agreement were filed before the Constitutional Court of Guatemala, arguing that the country is not in a position to provide the protection it supposedly offers and that the expense it would entail would weaken the economic status of the population itself. However, Degenhart defended the agreement saying that the economic repercussions would have been worse if the pact with Washington had not been reached, because the U.S. tariffs would endanger half of Guatemala's exports and the jobs that accompany these sectors.

These criticisms came not only from Guatemalan citizens, but also from public figures such as Guatemala's Human Rights Ombudsman, Jordán Rodas, citing a lack of transparency on the part of the government. Rodas insisted that Guatemala is not fit to be a safe third country because of its low production, Education, public health and security indicators. Similar ideas have also been expressed by organizations such as Amnesty International, for which Guatemala is not safe and cannot be considered as a safe haven.

In its pronouncement, the Constitutional Court of Guatemala affirmed that the Guatemalan government needs to submit the agreement to the approval of congress in order for it to be effective. This has been rejected by the government, which considers that international policy is the direct skill of the country's president and therefore will begin to implement the decision made with Washington without further delay.

 

Apprehensions and inadmissions made by U.S. border guards, distributed by month during the last fiscal years (FY) [Taken from CBP].

Apprehensions and inadmissions made by U.S. border guards, distributed by month during the last fiscal years (FY) [Taken from CBP].

 

Also with El Salvador and Honduras

Despite all this controversy generated since July as a result of the pact with Guatemala, the US developed similar efforts with El Salvador and Honduras. On September 20, 2019, the president of El Salvador, Nayib Bukele, signed an agreement assimilable to the figure of the safe third country, although it was not explicitly called as such either. It commits El Salvador to receive asylum seekers who cannot yet enter the U.S., similar to the agreement with Guatemala. El Salvador's agreement has the same three assumptions in which the U.S. will have to make a position migrant protection.

The Salvadoran government has received similar criticism, including a lack of transparency in the negotiation and denial of the reality that the country is unsafe. Bukele justified the signature by saying it would mean the extension of Temporary Protected Status (TPS) for the more than 190,000 Salvadorans living in the US. In October 2019, the Salvadoran Foreign Ministry said that this agreement is not a safe third country because El Salvador is not in the serious migratory situations in which Guatemala and Honduras are in terms of the flow of people, so it is only an agreement of non-violation of rights to minimize the number of migrants.

On September 21, 2019 the Honduran government also made public the advertisement of an agreement very similar to the one accepted by its two neighbors. It states that the U.S. will be able to deport to Honduras asylum seekers who have passed through Honduras. Like the other two countries, the Honduran government received criticism that it is not a safe destination for migrants as it is one of the countries with the highest homicide fees in the world.

Despite the criticism generated over the three agreements, in late October 2019 the Donald Trump administration announced that it was in final preparations to begin sending asylum seekers to Guatemala. However, by the end of November, the sending of non-Guatemalan asylum seekers had yet to occur. The inauguration in early January of President-elect Alejandro Giammattei, who announced his desire to rescind certain terms of the agreement, may introduce some variation, although perhaps his purpose is to extract some more concessions from Trump, in addition to the agricultural visas that Morales negotiated for Guatemalan seasonal workers.

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

Some U.S. and Canadian diplomats who were in Havana between 2016 and 2018 are still not fully recovered from ailments they suffered

U.S. Embassy building in Cubadepartment of State].

▲ Building of the U.S. Embassy in Cubadepartment of State].

ANALYSIS / Eduardo Villa Corta

Three years ago, U.S. diplomatic staff stationed in Cuba began to feel physical discomfort supposedly caused by strange sounds to which they had apparently been exposed; Washington spoke of a ˝sonic attack˝, but although the symptoms suffered by those affected have been determined to be anomalous, it has not been possible to establish what caused them. However, although the symptoms suffered by those affected have been determined to be anomalous, it has not been possible to establish what caused them. Was it really an attack? Who was behind it? We review here the main hypotheses and conjectures that have been made, and point out their weaknesses.

In late 2016 and early 2017, several U.S. diplomats stationed in Havana, as well as members of their families, reported suffering from dizziness, vertigo and sharp pains in their ears that could be caused by strange sounds to which they had been exposed. According to their testimonies, the sounds came from a specific direction, and they had heard them in their own residences or, in some cases, in hotel rooms, while people staying in neighboring houses or adjoining rooms had not heard any special sounds. The phenomenon also affected Canadian diplomats in the Cuban capital. In all, some forty people were treated for these symptoms.

Acoustic attack

Echoing the facts reported by its staff in Cuba, in mid-2017 the U.S. State department stated that the symptoms could have been caused by a sonic attack by the Cuban government directed against diplomats and their families. In October 2017, President Donald Trump directly accused Havana: "I believe Cuba is manager; yes, I do."

At the beginning of 2018, the State department issued a travel alertstatement not to travel to Cuba due to a possible health crisis and withdrew a large part of the staff of the diplomatic mission statement in Havana, reducing its activity to the minimum possible. At that time, a total of 24 Americans had been affected.

At the time, the Canadian government also indicated that its diplomats had experienced similar complaints. Ottawa decided to evacuate the families of its employees in Cuba and in early 2019 proceeded to reduce the embassy staff in the face of what appeared to be the appearance of a fourteenth case.

The Cuban government denied from the outset being involved in any harassment operation against the U.S. or Canada. ˝There is no test about the cause of the reported ailments, nor is there any evidence to suggest that these health problems have been caused by an attack of any kind˝, Havana assured. Raul Castro's government offered its cooperation in research the facts, with nothing coming to light that could explain the case. No devices that could have provoked the sounds appeared.

Adding confusion to the status, at least two US diplomats stationed in China, busy at the consulate general in Guangzhou, the largest that the US has in the country, presented in early 2018 also the symptoms already described. Washington evacuated them and issued a health warning about missions in mainland China.

The Associated Press published in October 2017 a recording of the alleged sounds causing the reported ailment, and indicated that government agencies had been unable to determine the nature of the noise and explain its relationship to the bodily disorders caused. Months later, he noted that internal FBI reports did not even establish that there had been an "attack". Other media highlighted the lack of cooperation in the research, due to jurisdictional zeal, between the State department , the FBI and the CIA.

Symptoms of "Havana syndrome".

A medical team from the University of Pennsylvania, at the request of the U.S. Government, examined 21 people affected by what the press began to call "Havana syndrome". The research, initially published in March 2018 in the Journal of the American Medical Association (JAMA), indicated that most of the patients reported problems with report, concentration and balance, and determined that they appeared to have suffered injuries to extensive brain networks.

Further data from the same team extended to 40 patients, released in July 2019, led to the conclusion that the diplomats had experienced some craniocerebral trauma. The results of the MRI scans, compared with those of a group healthy individuals, revealed differences in the white and gray Issue of the brain, in the integrity of the microstructures of the cerebellum and in the functional connectivity of the subnetworks for hearing and spatial vision, but not for executive functions.

This report concluded that the diplomatic staff had been physically injured, although it could not determine the cause. It also noted that the patients do not experience a usual recovery, as they are not recovering quickly from the symptoms, as in other cases of similar "contusions" or ear problems.

IF IT WASN'T AN ATTACK, WHAT WAS IT?

As no clear cause has been established as to what caused the ills suffered by the U.S. and Canadian diplomatic staff and some of their family members, the very reality of an attack has been called into question. Although several alternative explanations have been put forward, none of them are fully convincing.

1) Collective hysteria

Formulation. Some neurologists and sociologists, such as Robert Bartholomew, have suggested that it could be a case of mass hysteria. Given the pressure to which some of the diplomats working in very unfriendly environments are subjected, and the endogamic relationship in which they live, living almost exclusively among themselves, it could explain a mutual conviction of an external attack that even has somatic consequences.

Weak spot. Both the research of the University of Pennsylvania and the State department doctor, Charles Rosenfarb, who appeared before the Senate Foreign Relations committee , came to rule out that the symptoms suffered by the diplomats were due to a mere mental mechanism. It is very difficult that about sixty people, including Americans and Canadians, convinced each other of an aggression of this subject and then almost all of them developed the same brain lesions.

2) Microwave

Formulation. The researcher team at the University of Pennsylvania, while not pointing to any possible cause of the ailments, did not rule out certain assumptions, such as that of microwave affectation. This aspect was insisted upon by research published in 2018 in the journal Neural Computation, which considered the symptoms consistent with exhibition to electromagnetic microwave (RF/MW) radiation.

Weak point. Not all the symptoms shown by patients could be a consequence of exhibition radiation of this subject, which also has a diverging literature on its effects on the human body. Moreover, it is not known that there is a microwave weapon that can affect the brain.

3) Ultrasound

Formulation. A team of computer experts at the University of Michigan suggested in 2018 that it could be a case of exhibition to some ultrasound subject , perhaps coming from malfunctioning listening equipment that mixed multiple ultrasonic signals.

Weak point. The recording of one of the sound episodes - the sample released by AP - is not sufficient to determine its nature. It is also possible that the sound was somewhat different in other cases.

4) Crickets

Formulation. A research from the Universities of California-Berkeley and Lincoln, from the existing sound sample , considered in January 2019 that the possible cause of the attacks was made by cricketsspecifically crickets Anurogryllus muticus. The research was a comparative study between the sound emitted by this variant of crickets and the sample of one of the acoustic episodes in Havana.

Weak point. The sound perceived by the diplomats was directional, so it was not heard by neighboring people. If they had been crickets in their natural environment, the sound would have spread around.

5) Neurotoxins

Formulation. A May 2019 joint study by two Canadian research centers attributed the symptoms suffered by diplomats to exhibition to neurotoxins from pesticides used to spray mosquitoes, a common internship in embassy buildings.

Weak point. The diplomats affected related the beginning of their physical discomfort to situations experienced in their own residences or in hotel rooms, where there was no fumigation.

IF IT WAS AN ATTACK, WHO DID IT?

Given that the previous explanations do not seem entirely solid, the US Government maintains the hypothesis of an attack. If it really happened, who was behind it? Here, too, there are various conjectures.

1) Castro regime

The first option considered, assumed in principle by the US given the public accusations made from Washington, has been to attribute the alleged attacks to the Cuban regime itself. With them, Havana would try to maintain pressure on the Americans, in spite of the formal reestablishment of diplomatic relations, with the goal of marking each other's territory.

Weak point. The incidents began to occur during the Obama Administration, in a context of a ˝honeymoon˝ marked by the reopening of embassies and Barack Obama's visit to Havana. The normal thing is that at the end of 2016, in view of the U.S. elections, the Castro regime would not want to give reasons to the next U.S. president to twist the diplomatic line opened by Obama. It could make sense that after Donald Tump's later revocation of the previous openness measures, Cuba would want to punish the new Administration, but not before seeing the direction it would take; in any case, the attacks would only justify the hard line followed by Trump, which does not benefit the island.

2) A sector of Castroism

Fidel Castro was attributed with an unaccommodating attitude towards his brother Raul's decision to reestablish diplomatic relations with the United States. Although he died in November 2016, people around him might have tried to torpedo that rapprochement, convinced that hostility with Washington was the best way to ensure the survival of the regime as conceived by its founder.

Weak point. Although Fidel Castro's reluctance towards rapprochement with the U.S. is true, it is difficult to think that the most conservative sector within Castroism would dare to boycott so directly Raul Castro's fundamental political line. Another thing is that, after he handed over the presidency of Cuba to Miguel Díaz-Canel in April 2018, some sectors within the regime could make internal movements to send certain messages, but the changeover occurred when most of the acoustic episodes had already taken place.

3) A third country (Russia, China)

The third option would be that a third country generated the attacks. American intelligence indicates that the most viable option in this case would be Russia. Moscow has been keen to return to operating in the Caribbean, as in the Cold War, and aggression against U.S. diplomats in Cuba would fit in with its strategy. It has also been suggested that China might want to repay Washington in its backyard with the same harassment that the Chinese believe they feel from the US in their nearest seas.

Weak point. The return of Russia to the Caribbean is certainly documented, and it is conceivable that Moscow could have promoted a punctual action against some specific goal , but it seems difficult that it would have sustained over time an operation that harms Cuba's sovereignty. As for China's presence in the US neighborhood, it is a less confrontational move than the one carried out by Russia. For the rest, if Beijing had chosen foreign soil in order to better erase the traces of an action against US diplomats, then the cases recorded in Guangzhou would not have occurred.

Categories Global Affairs: North America Security and defense Articles Latin America

Almagro's speech at the opening of the 49th OAS General Assembly in Medellin, Colombia in June 2019 [OAS].

▲ Almagro's speech at the opening of the 49th OAS General Assembly in Medellin, Colombia in June 2019 [OAS].

COMMENTARY / Ignacio Yárnoz

At the General Assembly of the Organization of American States (OAS) held in Medellin last June, the tensions and divisions that currently exist within this international organization became evident. In the first place, these discrepancies were evident in the Venezuelan issue, an issue that took center stage at the meeting with the presentation of migration reports, criticism of the Bolivarian regime and the presence of the Venezuelan delegation representing the Guaidó government headed by Ambassador Gustavo Tarre.

These facts were met with the rejection of most of the Caribbean countries, who left the conference room at the presentation of the reports and declared their refusal to comply with any OAS resolution in which the Venezuelan delegation voted in favor. And the fact is that, in the opinion of the Caribbean countries, Venezuela formally left the organization in March and the presence of Guaidó's delegation as the legitimate representative of Venezuela contravenes international law and the principles of the OAS Charter, given that it represents a government without effective control of the territory or legal legitimacy. But the Caricom countries were not the only ones to express their protest, the delegation of Uruguay also left the conference room and that of Mexico expressed its displeasure at the presence of the Venezuelan opposition as a delegation of plenary session of the Executive Council right.

The controversy, however, not only revealed discrepancies on how to deal with the Venezuelan crisis, but also reflected another underlying reality, which is that Luis Almagro's candidacy for reelection as University Secretary of the organization hangs in the balance.

In December of last year, Uruguay's Almagro formally announced that, at the request of Colombia and the United States, he had decided to run for reelection with the assurance of having the necessary votes. Since then, however, the re-election landscape has darkened. The vote will take place in the first semester of 2020 and to get re-elected Almagro needs at least 18 votes from the 35 countries of the OAS (if we include Cuba, even if it does not actively participate).

Variables

The future of Almagro, who came to the position in May 2015, depends on several factors that will unfold this year. Mainly, the general elections in Argentina, Canada, Uruguay and Bolivia, which will be held between October and November. However, there are other variables that may also affect his reelection, such as the support he obtains from the Lima group countries or the possible division among Caricom members in this regard. Below, we will review these assumptions one by one.

In the case of the Bolivian elections, Almagro has already played his cards and has been accused of having used a double standard by harshly criticizing the Maduro regime, but then not being critical of the possibility of re-election of Evo Morales for a third time. Such re-election is supposedly not legal according to the Bolivian Constitution and was vetoed by the population in a referendum, but President Evo Morales has ignored it under the pretext that preventing him from being a candidate again is against human rights, an argument later endorsed by the Bolivian Supreme Court. The administrative office General administrative office of the OAS, despite not agreement with the "right to be reelected", did not raise any criticism or position against such election supposedly due to the possible Bolivian vote in favor of Almagro, something that could happen if Evo Morales is finally reelected but is not completely certain either. However, if not, he has already earned the animosity of civil service examination candidates such as Carlos Mesa or Óscar Ortiz and opposition leader Samuel Doria Medina who, if elected, would not vote for him.

Regarding Guatemala, the first round of the presidential elections gave the victory to Sandra Torres (22.08% of the votes) and Alejandro Giammattei (12.06% of the votes), who will face each other in the second round on Sunday, August 11. Should Torres be elected, she may align her stance with that of Mexico by adopting a less interventionist policy towards Venezuela and therefore against Almagro. In the case of the victory of Giammattei, a center-right politician, it is likely that he will align his positions with Almagro and vote in favor of him. Guatemala has always been aligned with US positions, so it is doubtful that the country would vote against a candidacy supported by Washington, although not impossible.

As for Argentina and Canada, the position will depend on whether the winning candidate in their respective elections is conservative or progressive. Even in the case of Canada, the possibility of a rejection of Almagro is open regardless of the political orientation of the new government, since while Canada has been critical of the Maduro regime, it has also criticized the internal organization of the OAS under the current University Secretary As far as Argentina is concerned, there is a clear difference between the presidential candidates: while Mauricio Macri would represent continuity in support for Almagro, the Alberto Fernández-Cristina Kirchner ticket would clearly represent a rejection.

Uruguay represents a curious case of how internal politics and political games affect even members of the same party. We must not forget that Luis Almagro was a minister in the government of Pepe Mujica and that his first candidacy for University Secretary was presented by Uruguay. However, given the division in the political training to which he belonged, Frente Amplio, he earned some enemies such as those of the current government of Tabaré Vázquez. That is why Uruguay has been so critical of Luis Almagro despite being a compatriot and fellow party member. However, we should not doubt that he will also have his friends in the party that will change Uruguay's position. If so, no matter which candidate is elected (Luis Lacalle Pou for the National Party or Daniel Martinez for the Frente Amplio), Almagro would have a guaranteed vote: that of the right wing of the National Party by having a more critical thesis with Maduro (in fact, they recognized the Guaidó government as a party and criticized Uruguay's neutrality), or that of the left wing of the Frente Amplio by the contacts Almagro may have, although the latter is still a hypothesis given that the most extreme wing of the party is the one that still has the majority of votes within the Frente Amplio.

Another applicant

However, Almagro's chances for reelection could be frustrated if another aspirant presents his candidacy who could win the sympathy of the Lima group , created in August 2017 and integrated by a dozen countries of the Americas to coordinate their strategy in relation to Venezuela. Peru sounds like the one that could possibly present a candidate: Hugo de Zela, a Peruvian diplomat with 42 years of degree program who in April was appointed Peru's ambassador in Washington and who has played a very relevant role within the Lima group as coordinator. In addition, De Zela knows the structure of the OAS since he has served as chief of staff of the administrative office General on two occasions: first, between 1989 and 1994, when the head of the organization was the Brazilian Joao Clemente Baena Soares; and then between 2011 and 2015, with the Chilean José Miguel Insulza. This candidate, apart from his wide political experience, has the advantage of having been coordinator of the Lima group , which could give guarantees about the partnership between this group and the OAS on the Venezuelan issue.

If De Zela decides to run, the Lima group could break up and split its votes, which could favor the interests of the 14 countries of the Caribbean Community (Caricom), which usually vote as a bloc and have been dissatisfied with Almagro's management of the Venezuelan crisis. In fact, Caricom is already thinking of presenting a candidate that takes into account the interests of these countries, mainly climate change. The names that sound among Caricom members are the ambassador to the OAS of Antigua and Barbuda, Ronald Sanders, or the representative of Barbados to the UN, Liz Thompson.

However, there remains one hope in the Caricom community for Almagro. Saint Lucia, Haiti, Jamaica and the Bahamas broke ranks at the time of voting for the admission of Ambassador Gustavo Tarre appointed by the Guaidó government to represent Venezuela before the OAS (although technically what they supported is that he be appointed as "permanent representative appointed by the National Assembly, pending new elections and the appointment of a democratically elected government"). These four countries, although with a more moderate position than that of the Lima group , joined their position by accepting the designation of said representative with the aforementioned nuance. This is the third occasion so far this year that Caricom has broken ranks on the Venezuelan topic . This could give the University Secretary a trump card with which to play in order to obtain the support of some of these four countries, although he will need skillful negotiation techniques and give something in exchange to these countries, whether it be positions in the general administrative office or benefits in new programs and scholarships for integral development or climate change, for example.  

In conclusion, in the best possible scenario for Almagro and assuming that no country of the Lima group presents an alternative candidate , the candidacy for reelection of the current University Secretary would have 12 assured votes, 4 negotiable votes from St. Lucia, Jamaica, Haiti and Bahamas and 5 pending elections (Guatemala, Canada, Uruguay, Argentina and Bolivia). It is clear that Mexico, a large part of Caricom (Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago) and Nicaragua will vote against. In addition, we must add the fact that any candidacy can be presented up to 10 minutes before the extraordinary General Assembly, which gives even more room for political games in the shadows and last-minute surprises. As we can see, it is a very difficult status for the University Secretary and it will surely mean more than one headache in this arithmetic of votes to get the position. Undoubtedly a fight for the position that will give much to talk about between now and February 2020.

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

In the largest countries in the region, private guards outnumber police officers four to one and have ten times more weapons than in Europe.

High rates of violence in Latin America and the deficient presence of state authority in parts of the territory have led to the proliferation of private security companies throughout the region. There are now more than 16,000 companies in issue industry that involves more than 2.4 million people. The sector faces significant challenges, such as imprecise legality in many cases, a deficit of experience, forms incompatible with civil and human rights in certain places and the risk of escalation of arsenals.

The "boom" of private security in Latin America

article / Martín Biera Muriel

The proliferation of private security companies in Latin America is linked to crime and violence statistics in the region. It is estimated that 19 out of every 20 violent crimes that occur in the world take place in Latin America, where 17 of the 20 most violent cities in the world and 4 of the 5 most violent countries are located.

The status has led to an "explosive growth" in the privatization of security in Latin America, as described in the report "Security for Sale" by the Inter-American Dialogue. The increase in the issue of Private Defense and Security Companies (PMSCs) has been seen not only in countries with acute conflicts, such as Colombia, where in the last ten years there has been a 126% increase, but also in countries with greater social peace and institutionalism, such as Chile, which in five years has seen a 50% increase. The total number of companies dedicated to this function in Latin America reached 16,174 in 2017, as specified at the time by the Geneva Center for the Democratic Control of Armed Forces (DCAF).

The PMSC sector

The term PMSCs includes both the security companies used in developed countries, normally dedicated to guarding establishments or individuals, as well as defense companies that can replace functions usually reserved to the State. The latter developed after the end of the Cold War and have become an important player in international relations, participating in leave and even high intensity conflicts.

These defense companies operate in a framework of complicated legality, whose regulation attempted to be standardized in 2008 with the Montreaux Document, a compilation of legal obligations and best practices aimed at guaranteeing the sovereignty of States and protecting human rights. Although the text applies more directly to situations of armed conflict, it also provides a regulatory framework for security companies in general, given the tenuous borderline between one subject of companies and others, especially in Latin America, where the authority of the State often does not reach the entire national territory, some civil conflicts are particularly virulent and some use the Armed Forces in the fight against criminal violence and the maintenance of public order.

More guards than policemen

The more than 16,000 PMSCs in Latin America employ around 2.4 million people. While security guards issue police worldwide, in many Latin American countries there is a particular imbalance between the issue of police officers and private agents: in Colombia, Brazil and Mexico the ratio is one police officer to four PMSC members; in extremely violent countries such as Honduras and Guatemala the ratio is even one to seven. It is also the case that many members of the police resort to moonlighting, working as police officers during the day and becoming security agents at night in a neighborhood, business or building.

The largest companies are those dedicated to surveillance and escorting VIP clients. The largest are of European and U.S. origin and specialize in one part of the sector, especially in the protection of private property. Most of them operate in cities or in natural resource extraction centers isolated from urban areas. In relation to the frequent criticisms that these companies receive for allegedly supplanting the functions of the legally constituted authority, it is necessary to point out that the legal framework in which the large companies operate is strict and supervised.

degree program of armament

It can be argued that the skill among operators has generated a kind of degree program in which each business wants to offer more efficient services. In turn, as there is a greater issue of agents and more modern weapons, criminals also tend to increase their firepower and capabilities to meet their objectives, which consequently leads companies to also increase the caliber of their weaponry, in a spiral that is difficult to control. Statistics show that Latin America has the highest ratio of firearms per security guard in the world outside those areas affected by conflict. This ratio is ten times higher than the ratio of small arms in Europe.

This has led to criticism of certain PMSCs in Latin America for having contributed, directly or indirectly, to illegal arms trafficking and the growth of armed gangs, generating a vicious circle. For example, in 2015 ninety people were arrested in San Francisco (some of them linked to PMSCs) for belonging to an arms trafficking network linked to the Mara Salvatrucha (MS-13). There have also been cases of theft and misplacement of weapons imported from the region, both by individual private security contractors and by the military itself; these weapons then enter the black market. Thus, more than 40% of illegal arms in El Salvador are linked to some 460 private security companies, despite the obligation to have an official registry for their identification.

Challenges

Reducing the high levels of insecurity is one of the main challenges facing many Latin American countries. The reasons for the persistent violence in their societies are manifold; among them are political corruption and economic inequality. The wealthier classes may consider themselves targets of attempted robbery or kidnapping, but the lower classes also suffer from high crime rates, in their case without the possibility of resorting to private security.

Private security in Latin America faces two major challenges. One is the illegality of part of the sector: illegal companies are growing faster than in the legal sector; in Brazil, for example, the issue of informally employed guards exceeds the number of formal ones. The other is the lack of training or experience of a certain Issue of private guards. Addressing the need for greater legal regulation, and for regulation that is more adjusted to national specificities, and the desirability of greater training will help to reduce the gray zone in which in many cases they operate and the violations of human rights.

Categories Global Affairs: Security and defense Articles Latin America

The deterioration of recent years seems to have been corrected in several indicators on democratic health and economic environment.

Costa Rica has traditionally been a model of democratic functioning in a region with serious institutional deficits, which has earned it a mediating role in different conflicts. The increase of internal problems -strikes, citizen protests, crisis of bipartisanship...- have seemed to have diminished Costa Rica's international prestige in recent years. Is Costa Rica suffering from democratic and institutional deterioration?

Facade of the National Theater of Costa Rica, in San José [Pixabay].

▲ Facade of the National Theater of Costa Rica, in San José [Pixabay].

article / Ramón Barba

The political unrest of recent years in Costa Rica, in a regional context of the "angry vote" and the consequent "outsider phenomenon", has given the impression of a setback in the country's institutional virtues. The goal of this article is to determine, based on different indicators of democratic health and economic and political satisfaction, whether there are objective data that ratify this perception.

For this purpose , we will first analyze a set of indicators developed by the World Bank, the Konrad Adenauer Foundation and The Economist magazine, and then we will also take into account some results of the Latinobarómetro survey . We will compare the values recorded in 2010, 2013, 2016 and, when possible, 2018.

Indicators

As for the Democracy Index prepared by The Economist, although Costa Rica maintains its second place among Latin American democracies, behind Uruguay and ahead of Chile (these are the three countries that usually obtain the best grade the different institutional parameters of the region), in the last decade a Costa Rican democratic decline is observed, apparently overcome in the most recent report. From a score of 8.04 achieved in the 2010 Democracy Index, Costa Rica dropped to 8.03 in 2013 and 7.88 in 2016, to regain ground in 2018 with an 8.07. The country remains the best democracy in Central America, followed at a distance by a stable Panama.

The deterioration of recent years has also been picked up by the development Index of Democracies in Latin America (IDD-LAT) of the Konrad Adenauer Foundation, which has not yet published data referring to 2018, so this index cannot endorse whether there has been a recent recovery. In 2010, Costa Rica had a score average of 9.252; it barely varied in 2013, with a figure of 9.277, but dropped clearly in 2016, with 8.539 points. The components of the index that suffered the most were welfare policy creation and economic efficiency, where it dropped from 1st and 5th place, respectively, to 8th and 12th. The fact that Costa Rica remained between 1st and 3rd place in civil and political rights and in institutional and political efficiency in those years sample that the social concern of those years was more in the economic sphere than in the institutional sphere.

The World Bank's Good Governanceindicators also showa slight decline in the case of Costa Rica between 2013 and 2016data more recentdata have not yet been published). Regarding the Rule of Law and Government Effectiveness scales, the score dropped from 0.6 and 0.5, respectively, to 0.5 and 0.4. There has been little change in the Control of Corruption score.

 

citizen evaluation

The above indicators are prepared by experts who, by applying standardized criteria, seek to offer an objective estimate. But we also wanted to take into account the opinion of the citizens themselves, as expressed in the Latinobarómetrosurvey . These can be useful to indicate the perception that exists among the population regarding the institutional health of the country: satisfaction with the government system and the economic system.

The value of democracy remains high in Costa Rica, despite a negative trend in the region as a whole. Attending to four values that Latinobarómetro has included in its surveys corresponding to the years here chosen for our comparison, we see that indeed in 2016 the citizen perception was that of a worsening of status, but in 2018 an improvement is observed, reaching even more positive levels than in 2013. As for the evaluation of democracy, its consideration as the best system of government dropped from 77% to 72% and then has risen again to 77%, while its categorization as a preferable system has been increasing: 53%, 60% and 63%.

The perception of the economic environment, meanwhile, had a blip in 2013, but today it is in better condition. The statement "progress is being made" fell from 15% to 12%, but in 2018 it reached 22%, while satisfaction with future personal economic prospects fell from 45% to 20% to stand in 2018 at 52%.

 

Political unrest

Costa Rica is a country that retains strong institutions, although the political landscape is more divided, as test by the end of the two-party system (1953-2014), due to the decline in support for the National Liberation Party (PLN) and the Social Christian Unity Party (PUSC) and the emergence of the Citizen Action Party (PAC), to which the country's current president, Carlos Alvarado, belongs.

Corruption issues such as the "cimentazo case", the high public debt that has forced cutbacks in a country with certain well-established social benefits and a regional and international environment prone to populist solutions may be behind the political unrest observed in Costa Rica in recent years.

This occurs in a context of the "angry vote" in Latin America, which arises as a consequence of the political actions of the last twenty years in the region and a strengthening of the middle classes. Citizen dissatisfaction has led to the emergence of outsider politicians: people with relative popularity, short political degree program , without a determined strategy and with an "anti-political" speech . This is a patron saint that, although it is present in the emergence of the PAC, in any case does not fully correspond to the personality of President Alvarado, who actually seems to have contributed to redirect the Costa Rican restlessness.

Conclusions

Thus, from the analysis of the data observed here, it can be concluded that there was indeed a slight deterioration in both institutional circumstances and especially in economic conditions or expectations between 2013 and 2016, but the different scales have returned in 2018 to previous values, even improving in some cases to levels of ten years ago. This is something that can be observed both in the indicators in the position experts that follow standardized objective procedures and in the surveys of subjective citizen perception.

The sample used and the temporal sampling carried out have not been exhaustive, so it is not possible to specify whether the variations observed here are circumstantial fluctuations or part of a trend pointing in a certain direction.

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

The upcoming gas self-sufficiency of its two major buying neighbors forces the Bolivian government to look for alternative markets

Yacimientos Pretrolíferos Fiscales Bolivianos (YPFB) gas plant [Corporación YPFB].

Yacimientos Pretrolíferos Fiscales Bolivianos (YPFB) gas plant [Corporación YPFB].

ANALYSIS / Ignacio Urbasos Arbeloa

Bolivia, under Evo Morales, is the only economic success story of all the Latin American countries that embraced left-wing populism at the beginning of this century. Together with Panama and the Dominican Republic, Bolivia has achieved the highest GDP growth in the region in the last five years, and all this in a difficult context of decline on the part of its main trading partners: Argentina and Brazil[1]. The political stability brought by Evo Morales since 2006, coupled with prudent counter-cyclical macroeconomic policies and a new hydrocarbon management are part of the formula for this success. Nevertheless, there are enormous economic and political risks for Bolivia. On the one hand, natural gas accounts for 30% of exports and its destination is exclusively Brazil and Argentina, countries that are close to gas self-sufficiency. Finding alternative routes is not an easy task for a landlocked state, with a diplomatic conflict with Chile and separated by the Andes Mountains from Peru. Moreover, the Bolivian government's bid to exploit lithium through national companies that integrate its processing to favor industrialization is a risky strategy that could leave the country out of the growing world lithium market. Finally, Evo Morales and the MAS have followed a growing authoritarian trend, allowing the reelection of the president, undermining the separation of powers and the recent 2009 constitution. The new Bolivia faces in the next decade the challenge of reorienting its natural gas exports, diversifying its Economics and consolidating a real democracy that will allow a sustained growth of its Economics and its role as a regional actor.

Natural Gas: at the center of the 21st century political discussion

During the failed oil explorations in the Chaco in the 1960's, abundant natural gas reserves of great economic potential were finding . Although it was a less valuable resource than crude oil, an incipient gas industry was soon developed by foreign companies, mainly American, such as Standard Oil. In 1972, the first nationalization took place, with the emergence of YPFB as the state business in charge of the exploration, production, transportation and refining of Bolivian energy resources in partnership with foreign companies. That same year, the first export gas pipeline to Argentina was built. By 1999, Bolivia will export natural gas to Brazil through the Santa Cruz-Sao Paulo pipeline, whose project took more than eight years of negotiations and construction work and introduced Petrobras as a major player in the sector. Thus, Bolivia enters the 21st century with a growing gas industry, mostly privatized by the first government of Gonzalo Sánchez de Lozada, and boosted by a very favorable fiscal model for foreign companies[2].

The year 2001 marked the beginning of a convulsive political stage in Bolivia with the so-called Water War. A wave of protests arose from the privatization of municipal water services in the framework of financial negotiations between the IMF and the government of Hugo Banzer. At the nerve center of these protests in Cochabamba emerged the figure of Evo Morales, a coca growers' leader who will increase his popularity unstoppably. Gas became the protagonist in 2003, with a new wave of protests against the construction of a natural gas pipeline from Tarija to Mejillones (Chile) for consumption by the Chilean mining industry and export to Mexico and the USA in the form of LNG. The civil service examination the project argued the historical incoherence of contributing Bolivian resources to the exploitation of the mining region lost to Chile in the War of the Pacific (1879-1883) and which deprived Bolivia of an outlet to the sea. In addition, an alternative, more costly gas pipeline through Peru was proposed, but which would supposedly benefit the northern region of Bolivia and would not be a national humiliation. The protests took a nationalist and indigenist turn and became a real revolution that blocked La Paz, the international airport and plunged the whole country into violence and shortages. President Lozada resigned and most of his government fled abroad, while the project was cancelled and buried forever.

The new president Mesa came to power with the promise to call for a binding referendum on gas, the establishment of a Constituent Assembly and a reform of the Hydrocarbons Law, including a review of the privatization processes. The referendum ended up giving the victory to Carlos Mesa's proposals, although with a leave participation and a confusing essay of the questions. President Mesa, unable to capitalize on the legitimacy granted by the plebiscite Withdrawal to the position , called early presidential elections in 2005, which brought to power the first indigenous president in the history of Bolivia, Evo Morales, with an absolute majority. Natural gas thus became the main catalyst for political change in Bolivia.

Hydrocarbon reform

The arrival of Evo Morales brought about a profound change in the hydrocarbons legal framework . In 2006, the new hydrocarbons law "Heroes del Chaco" was enacted, nationalizing Bolivia's energy resources, expropriating 51% of the shares of companies involved in the sector and establishing a direct tax on hydrocarbons of 50% subject to an extra 32% royalty to YPFB in those fields with more than 100 mcf of annual production[3]. This legislation, in the words of Evo Morales "turned the tables, going from 18% to 82% of the State's income on hydrocarbons"[4]. The legislation, although adorned with radical revolutionary rhetoric, has proven to be moderate and viable in the medium term, since it allows in the internship much less burdensome tax formulas for energy multinationals and did not imply large expropriations of assets. As can be seen in the graph below, tax revenues from natural gas have grown enormously since 2005, the year of the reform, without dramatically affecting natural gas production. In addition, this reform was accompanied by record highs in the price of raw materials in 2006, 2007 and 2008, cushioning the percentage reduction in foreign companies' revenues. In 2009 Bolivia included in article 362 the primacy of oil service contracts, a formula in which multinationals do not obtain any rights over the hydrocarbons extracted, but are remunerated for the services rendered. 

Since the reform, exports have been relatively stable, buoyed by growing demand in both Brazil and Argentina. The most controversial case occurred in the particularly cold winter of 2016, when Bolivia halted exports due to maintenance work at the Margarita field. This event unmasked a stubborn reality about Bolivia's proven natural gas reserves and the need to increase exploration and drilling work in the country. Bolivia's current reserves amount to 283 bcm (10 tcf), enough for only 10 years of export activity at the current rate. Aware of this limiting status , the YPFB corporation has launched an investment campaign for 2019 amounting to US$ 1.45 billion, of which US$ 450 million will be dedicated to exploration work[5]. Much of the investment in the sector in recent years has been aimed at industrializing natural gas production instead of exploration work, building refining plants such as the Bulo Bulo ammonia and urea plant[6]. Total, Shell, Repsol and Petrobras are currently working in exploration and production[7]. This effort is intended to respond to the IMF report that considered Bolivia's natural gas reserves to be too scarce to turn the country into a regional energy center, Evo Morales' greatest aspiration[8]. For YPFB, there are probable reserves of 850 bcm (35 tfc) that would guarantee a long life for the gas sector, but it should rethink its fiscal policy in order to attract foreign companies, which currently account for only 20% of total investment[9].

The future of Bolivian natural gas

agreement to the contracts signed with Brazil (1999) and Argentina (2005), export prices are indexed to a basket of hydrocarbons, which in general has guaranteed Bolivia a very favorable price, higher than the Henry Hub price, but which makes the country equally dependent on fluctuations in international commodity prices. However, the revolution of non-conventional technology and new forms of transportation, now more economical, such as LNG, are transforming the reality of the natural gas market in the Southern Cone. This new situation, linked to the end of the contracts with Brazil in 2019 and Argentina in 2026, puts in check the future of the main asset of Bolivian Economics .

As sample in the graph, the Bolivian trade balance and its fiscal stability depend on the exported volumes of natural gas and its international price. The survival of the current Bolivian economic model and the presidency of Evo Morales depend to a large extent on the income derived from this hydrocarbon, which is a fundamental factor for the future of the Plurinational Republic of Bolivia.

Brazil

Since 1999, Brazil has become the main destination for natural gas exports, being Bolivia's only client in the 2001-2005 period. This position allowed Petrobras to entrance as the main investor in the sector until the year of nationalization, which meant an important diplomatic friction between both countries. It was the complicity between Morales and Lula, as well as the importance of maintaining harmony between the leftist governments in the region, which allowed avoiding a major confrontation between the two countries. Despite the words of Petrobras' president in 2006, Sergio Gabrielli, announcing the end forever of the company in Bolivia, it has continued to be an important investor due to the profitability of its activities and the strategic importance of Bolivian gas for Brazil.

It seems clear that natural gas will play an important role in Brazil's future, since the main source of electricity in the country, hydroelectric power, requires other sources to replace it when there is a shortage of rainfall, as occurred between 2012 and 2014. This context favored the entrance of natural gas in the electricity mix, which went from 5% in 2011 to 25% by 2015[10]. However, Brazil started a decade ago with the revolutionary pre-salt hydrocarbon exploitations, which have allowed the country to increase its crude oil production from 1.8 mbd in 2008 to 2.6 mbd in 2018. Natural gas production associated with these fields is expected to enter the Brazilian market as the necessary infrastructure connecting the off-shore fields to the still insufficient pipeline network is built, something that is expected to improve with the entrance of private players into the sector following the 2016 energy reform. Likewise, Brazil already has 3 plants to import LNG, allowing it to diversify its imports, as it did during 2018 when Bolivia was unable to supply the 26 million cubic meters per day agreed in 1999. All this puts Petrobras and Bolsonaro, located in the ideological antipodes of Morales, in a privileged position for negotiation, and who could bet on increasing imports of the increasingly cheaper North American LNG and reduce the Bolivian gas Issue In any case, due to certain non-compliances in the supply of gas from Bolivia, the contract will be extended for at least two more years until the outstanding volumes to be submit , which Brazil has already paid for, are reached.

Argentina

The other natural gas market for Bolivia is also undergoing profound transformations, in this case derived from unconventional shale and tight oil techniques. The Vaca Muerta field, considered one of the largest shale deposits in the world, has begun to produce the first returns after years of investments by YPF and other multinationals. Despite Argentina's economic instability and the fiscal reforms demanded by the IMF which will delay the total development of this giant field[11], it is expected that by 2022 its production will cover approximately 80% of Bolivian imports, returning to the path of self-sufficiency achieved in much of the 1990s and 2000s[12]. For the time being, Argentina has already managed to renegotiate the volumes of natural gas imported in summer and winter in a way that is more favorable to domestic demand[13]. In addition, Argentina authorized natural gas exports to Chile after 12 years of interruption[14] and made its first LNG export in May 2019[15], which are early signs of growing domestic production.

It seems clear that the Argentine market will not have a long run for Bolivian natural gas and will probably end its imports when the contract expires in 2026. Other options include using the entire Argentine pipeline network as a transit to other destinations via LNG or to neighbors such as Uruguay, Paraguay or even Chile.

Peru

For some months now, Bolivia has been engaged in a public diplomacy campaign to extend a gas export pipeline to Puno, a Peruvian city located on Lake Titikaka. Although Peru has significant natural gas production in Camisea that allows it to export large quantities of LNG, the country launched a program known as Siete Regiones (Seven Regions) to universalize access to natural gas. Southern Peru can be supplied more economically through Bolivian imports due to the proximity of the La Paz pipeline, but there is reluctance, especially in the civil service examination fujimorista, to import a surplus good in the country. This formula would be integrated into a plan to export liquefied petroleum gas from Bolivia to the same area, while Peru would build a gas pipeline to import oil and derivatives from the Pacific port of Ilo to La Paz. For Bolivia, the Peruvian market may be a temporary solution while exports continue to diversify, but it will have an early expiration date given the Peruvian natural gas reserves, double the Bolivian reserves, and the logical trend towards greater domestic production to cover the demand of the entire country. Likewise, it seems sensible to think that the Peruvian coast will in the future be one of the points through which Bolivia could export its natural gas in the form of LNG if the regional market is saturated.

Chile

From an economic point of view, Chile is the most attractive country for Bolivian exports. It lacks natural gas reserves and its mining area, with high energy demand, is located in an area relatively close to Bolivia's network of gas pipelines and deposits. However, the now century-old dispute over Bolivia's original territories annexed by Chile in the War of the Pacific (1879-1883) has been an insurmountable obstacle in the present century. It is worth mentioning that during the 50's and 60's Bolivia exported oil to Chile and the USA through the Sica Sica-Arica pipeline; that is to say, the refusal to export natural gas to Chile has been a flag used by Evo Morales and not a historical tradition in the relationship between these countries.

After the huge mobilizations caused by the Gas War, Evo Morales was able to catalyze popular fervor and use the territorial dispute to increase his popularity. In fact, a good part of his efforts in the previous legislature were focused on achieving the longed-for exit to the sea through the International Court of Justice in The Hague. In 2018 this court ruled favorably for Chile, ruling that this country has no duty to negotiate with Bolivia a territorial settlement. Morales' refusal to export natural gas to Chile looks set to continue for the duration of his presidency.

However, the 1904 Treaty of Peace and Friendship signed by both states grants Bolivia full customs autonomy in the Chilean ports of Arica and Antofagasta and the right to keep goods in transit for 12 months, with free storage for its imports, and 60 days of free storage for its exports. These conditions seem ideal for the construction of an LNG plant in Arica or Antofagasta to export natural gas by sea while supplying the Chilean north, in need of cheap natural gas to displace coal. The difficult political relations between both countries complicate the viability of this project, which should not be discarded when Morales leaves the presidency and there is greater harmony, as happened with Pinochet and Banzer in power.

Domestic consumption

Domestic consumption of natural gas in Bolivia has grown at an annual rate of 4.5% in the 2008-2018 period, driven by subsidized prices for consumption and the implementation of state projects that aim to provide added value to natural gas extraction, such as the Bulo Bulo urea plant or the Mutún steel industry. Bolivia's per capita income and electricity consumption are expected to continue to increase over the next decade. If the natural gas subsidy Issue grows similarly while export revenues decline, Bolivia's delicate fiscal balance could take a similar path to that of Argentina. The process of domestic industrialization through natural gas does not seem far-fetched either, as long as it is based on market rules and not at the expense of public finances. The country has already achieved self-sufficiency in fertilizers and is already a growing exporter, an example of the economic diversification pursued by the Morales government.

The question: Is there a market for everyone?

After reviewing the regional context, it may appear that the natural gas market in South America will be saturated by future oversupply. As can be seen in the graph, natural gas demand in the Bolivian neighborhood will increase from 107 bcm to 140 bcm per year by 2030. Peru, Argentina and Brazil are likely to increase their production and may reach self-sufficiency during the 2020s. This complicates the commercialization of Bolivian gas, but does not make it impossible. In the first place, the geographical reality of South America makes certain cross-border projects more economical than other internal ones, as in the case of southern Peru. Likewise, the increasingly lower costs of exporting gas by sea make it possible to find a market for surplus regional production, as in the case of Peru, which concentrates its gas exports to Spain. In a context of increasing energy interconnection, Bolivia will be able to continue exporting natural gas, albeit from a less privileged position and having to invest in export infrastructure. The major challenges are focused on increasing exploration activities by attracting more foreign and private investment, as well as the search for new markets, with the Chilean issue being a central element in this discussion.

 


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