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The trade dependence between the two countries - greater in the case of Brazil, but the Chinese also need certain Brazilian products, such as soybeans - ensures understanding between the two countries.

The relationship between Brazil and China has proved to be particularly pragmatic: neither Jair Bolsonaro has revised his ties with the Asian country as he promised before becoming president (in his first year in office he has not only kept Brazil in the BRICS but even made a highly publicised official trip to Beijing), nor has Xi Jinping punished partner for accusing him of mismanaging the coronavirus pandemic, as has happened with other countries. The convenience of mutual trade relations, revalued by the trade war between China and the US and the current global crisis, has prevailed.

Jair Bolsonaro and Xi Jinping in Beijing in October 2019 [Planalto Palace].

Jair Bolsonaro and Xi Jinping in Beijing in October 2019 [Planalto Palace].

article / Túlio Dias de Assis

visit After years of criticising the "perverse communist government in Beijing", Jair Bolsonaro surprised people at the end of October with a state visit to the Forbidden City, which he himself specially publicised on social networks. On that trip he gave Xi Jinping the shirt of the Club de Regatas do Flamengo (the football team that at the time represented Brazil in the Copa Libertadores, which he would end up winning) and expressed his total conviction that he was in a capitalist country. In November he hosted a BRICS summit in Brasilia.

Bolsonaro's policy towards China had already begun to change shortly after he became president in January 2019, in contrast to his anti-China messages during the election campaign.

In fact, diplomatic relations between the two countries date back to the time of the board Military sample of which Bolsonaro is so proud. In 1974 Brazil recognised the People's Republic of China as the only China, thus allowing, despite being unaware of it at the time, the creation of a huge trade link between the two nations of continental proportions. Since then, as China's openness to China progressed, relations between China and Brazil have increased, so that for almost a decade now China has been Brazil's main trading partner, partner . China's dependence on Brazil is also notable in relation to certain products, such as soya, although for the Chinese, Brazil is the twentieth largest trader partner , since logically they are economies of very different sizes.

When in 1978 Deng Xiaoping decided to open China's Economics to the rest of the world, China's GDP was close to $150 billion, 75% of Brazil's, which was already over $200 billion. Four decades later, in 2018, Brazil's GDP was $1.8 trillion and China's was $13.6 trillion.

Soybeans and pigs

Brazil's greatest commercial and even political rapprochement with China occurred during the presidency of Luiz Inácio 'Lula' da Silva, during which the BRICS was formed, a club that helped create a greater level of economic and diplomatic proximity between member countries. This rapprochement led China to become Brazil's leading trade partner in exports and imports. Brazil's sales to China almost double exports to the US.

Although trade with Brazil represents less than 4% of the total value of goods that China imports annually, the South American country continues to be an important commercial partner for the People's Republic, due to the fact that the main product imported from Brazil is soya, one of the instructions of the per diem expenses habitual of a large part of the Chinese population. More than half of the soya imported by China comes from Brazil and the tendency is for this to increase, mainly due to the trade war with the US - the second main exporter of soya to China -, making Brazil practically the breadbasket of the Middle Kingdom. China is the destination for more than 70% of Brazilian soybean production.

Dependence on China, from the Brazilian consumer's perspective, was accentuated at the end of 2019 due to an exorbitant rise in meat prices. The average between the different Brazilian states hovered between 30% and 40% compared to previous months. Producers were able to substantially increase their profits in the short term deadline, but the popular classes openly protested against the uncontrolled price of a product that is very present on the average Brazilian's regular per diem expenses . The rise in prices was due to a combination of factors, including an outbreak of swine fever that devastated much of China's production. Faced with a shortage of supply in its domestic market, China was forced to diversify its suppliers, and in the midst of a trade war with the US, China had no choice but to turn to Brazil's agricultural potential, one of the few countries capable of meeting China's huge demand for meat. During this period - a brief one, as it gradually returned to the previous status - Brazil managed to obtain a certain coercive power over the Asian giant.

Huawei and credits

Brazil is extremely dependent on China at status subject technology: more than 40 per cent of Brazil's purchases from China are machinery, electronic devices or parts thereof. In the last decade, with the arrival of the smartphone and fibre-optic revolution in Latin America, Brazil decided to make a greater commitment to Chinese technology, thus becoming one of the main international markets for the now controversial Huawei brand, which has come to dominate 35% of the Brazilian mobile phone market. While the US and Europe were wary of Huawei and from the outset placed limits on its markets, Brazil saw Chinese technology as a cheaper way to develop and never let itself be swayed by suspicions of Chinese government interference in subject of privacy. Several deputies of the PSL (Bolsonaro's former party) even visited China in early 2020 to evaluate the possibility of acquiring Chinese facial recognition equipment to help state security forces fight organised crime, proposal which was ultimately rejected by parliament.

With the rise of the controversy over the risks of espionage that the use of the Chinese multinational's technology could pose, some voices have warned of the threat that Huawei's contracting could pose to quite a few government agencies and offices: a couple of embassies and consulates, part of the infrastructure of the Chamber of Deputies, and even the headquarters of the Public Prosecutor's Office and the Federal Justice in some federal states. Although given the lack of accusatory evidence against Huawei, little has been done by the government about it; only the cancellation of some purchases of Huawei devices.

Brazil is the country that has received the second largest amount of public loans from China in Latin America: 28.9 billion dollars (Venezuela is the first with 62.2 billion dollars), distributed in eleven loans between 2007 and 2017, nine of which come from the Bank of China development and another two from the Export-Import Bank of China. Although this is a large amount, it represents a very small percentage of Brazil's public debt, which now exceeds one trillion dollars. Most of the loans granted by Beijing have been earmarked for the construction of infrastructure for resource extraction. In addition, Chinese companies have invested in the construction of two ports in Brazil, one in São Luís (Maranhão State) and the other in Paranaguá (Paraná State).

The rhetoric of the coronavirus

Bolsonaro soon realised his dependence on China and opted for a policy of accommodation towards Beijing, far from his campaign messages. Once again, Brazil opted for pragmatism and moderation, as opposed to ideology and radicalism, in terms of Itamaraty (Ministry of Foreign Affairs) policy. Likewise, in the face of the instability caused by the US-China trade war and Trump's current weak position, Bolsonaro demonstrated pragmatism by not closing himself off to high-potential trade partners because of his ideology, as was seen last November at the BRICS summit in Brasilia.

But at times, rhetoric emerges that is in keeping with the original thinking. In the wake of the coronavirus pandemic, Bolsonaro has in some messages copied Trump's anti-China narrative. A good example is the exchange tweet exchange between Eduardo Bolsonaro, a federal deputy and the president's eldest son, and the Chinese ambassador, Yang Wanming. The former compared the coronavirus to the Chernobyl accident, insinuating total irresponsibility, negligence and concealed information on the part of the Chinese Communist Party. The ambassador responded that the president's son "on his last trip to the US did not contract the coronavirus, but a mental virus", referring to his ideological proximity to Trump.

However, all this status seems to have calmed down after a phone call between the presidents of both countries, in which both reaffirmed their commitments, especially those of a commercial and financial nature. Moreover, once again Bolsonaro seems to be following the Itamaraty's traditional line of neutrality, despite the constant insistence of his instructions in blaming China for the current tragedy. It is clear that economic dependence on China remains much stronger than the ideological principles of Bolsonaro's political base, however Trumpist it may be.

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

Beijing has announced the construction of a fifth base, matching the US base at issue .

While there is widespread international monitoring of the major powers' position-taking in the Arctic, given that global warming opens up trade routes and possibilities for resource exploitation, geopolitical movements around Antarctica go more unnoticed. With any national claims to the South Pole continent frozen by existing agreements, the steps taken by the superpowers are minor but significant. As in the Arctic, China is a new player, and is stepping up its stakes.

Shared camp for research scientists in Antarctica [Pixabay].

▲ Shared camp for research science in Antarctica [Pixabay].

article / Jesús Rizo

Antarctica is the southernmost continent and at the same time the most extreme due to its geographical and thermal conditions, which seriously limit its habitability. Human presence is almost impossible in the so-called East Antarctic, which is two thousand metres above sea level and makes up more than two thirds of the continent, making it the highest altitude continent average. Moreover, since Antarctica is not an ocean, as is the Arctic, it is not affected, except in its continental perimeter, by the increase in sea temperatures due to climate change.

To these difficulties for human presence are added the limitations imposed by international provisions, which have applied a moratorium on any claim to sovereignty or commercial exploitation, something that does not happen in the Arctic. Action in Antarctica is strongly determined by the Antarctic Treaty (Washington, 1959) which, in its articles I and IX, reservation the continent for research scientific and peaceful purposes. In addition, it prohibits nuclear explosions and the disposal of radioactive waste (article V), and any non-peaceful military action (article I).

protocol This treaty is complemented and developed by three other documents: the Convention on the Conservation of Antarctic Marine Living Resources (CCAMLR, Canberra, 1980), the Convention for the Conservation of Antarctic Seals (CCFA, London, 1988) and the Antarctic Treaty on Environmental Protection (Madrid, 1991), which prohibits "any activity related to mineral resources, except for scientific research " until 2048. At final, the so-called Antarctic Treaty System (ATS) "shields" the Antarctic region from exploitation of its resources and increased international tensions, as it also freezes territorial claims for as long as it is in force. However, this does not prevent global powers from also seeking a foothold in Antarctica.

The most recent action corresponds to the People's Republic of China, which aspires to play a major role in the area, as is the case in the Arctic. Already with four scientific instructions sites on the southern continent (the Antarctic instructions Great Wall, Zhongshan, Kunlun and Taishan, the first two permanent and the last two functional in summer), last November it announced the construction of its fifth base (thus equalling the United States at issue ). The new facility, in the Ross Sea, would be operational by 2022.

In relation to these scientific stations, since Xi Jinping came to power in 2013, China has been seeking to create a Specially Managed Antarctic Zone for the protection of the environment around the Kunlun base, something resisted by its regional neighbours, as it would give Beijing dominion over the activities carried out there. This is China's most important base, essential for its programs of study at subject astronomy and, therefore, for the development of the BeiDou, China's satellite navigation system, which is essential for the expansion and modernisation of its armed forces and rivals the GPS (US), Galileo (EU) and GLONASS (Russia) systems. In this respect, and in view of the military implications of Antarctica, the Treaty established the possibility for any country to carry out inspections of any of the instructions sites there, as a way of ensuring compliance with the provisions of agreement (article VII). However, the danger and cost of these inspections have meant that they have been considerably reduced, not to mention that the Kunlun base is located in one of the most climatically hostile regions of the continent.

On the other hand, China currently has two icebreakers, the Xue Long I and the Xue Long II, the latter built entirely on Chinese territory with the Finnish Aker Arctic attendance . Experts believe that, following the construction of this vessel, the People's Republic could be close to building nuclear-powered icebreakers, something that is currently only undertaken by Russia and which would have global consequences.

But the importance of Antarctica for China is not only reflected in the technical and technological advances it is making, but also in its bilateral relations with countries close to the southern continent such as Chile and Brazil, the former with original consultative status and with a territorial claim in the ATS, and the latter with consultative status only. Last September, the Andean country held the first meeting of the Joint Antarctic Cooperationcommittee with the People's Republic, in which, among other matters, the use of the port of Punta Arenas by China as a base for the supply of staff and materials to its Antarctic installations was discussed, conversations that will require further deepening. business As for Brazil, China's CEIEC (China National Electronics Import & Export Corporation) financed a new Brazilian Antarctic base worth $100 million in January.

 

Approximate location of the main Antarctic instructions . In blue, the US instructions , in red, the Russian , and in yellow, the Chinese .

Approximate location of the main Antarctic instructions . In blue, the US instructions , in red, the Russian , and in yellow, the Chinese .

 

Finally, it is worth analysing the weight of the US and Russia in Antarctica, although China is likely to be the most important player in the region, at least until the opening of the Madrid protocol for review in 2048. The United States has three permanent instructions (the instructions McMurdo, Amundsen-Scott South Pole Station and Palmer) and two summer only (the instructions Copacabana and Cape Shirreff), so the construction of the new Chinese base will equal the issue total of the instructions US bases.

For its part, Russia, the dominant power in the Arctic, is also the dominant power in its southern counterpart, at least in terms of issue of instructions, since it has six, four of which operate annually (Mirni, Novolazarevskaya, Progrés and Vostok) and the other two only during the summer (Bellingshausen and Molodiózhnaya). However, it should be noted that Russia has not opened any Antarctic bases since the collapse of the USSR, the most recent being Progrés (1988), although it has tried, for example, to reopen the Soviet base Russkaya, without success. The United States also established most of its Antarctic instructions at the height of the Cold War, in the 1950s and 1960s, except for the two summer ones (Copacabana in 1985 and Cape Shirreff in 1991).

China, by contrast, opened the Great Wall base in 1985, the Zhongshan base in 1989, the Kunlun base in 2009 and the Taishan base in 2014 and, as mentioned above, has a new one pending for 2022.

In addition to the countries mentioned above, another twenty countries have instructions of research in Antarctica, including Spain, which has consultative status in the Antarctic Treaty. Spain has two summer instructions sites in the South Shetland Islands, the Juan Carlos I base (1988) and the Gabriel de Castilla base (1998). It also has a temporary scientific camp located on the Byers Peninsula of Livingston Island.

Categories Global Affairs: World order, diplomacy and governance Articles Arctic and Antarctic

Albania and North Macedonia are forced to accept tougher negotiating rules, while Serbia and Montenegro reassess their options.

Brexit has been absorbing the EU's negotiating attention for many months and now Covid-19 has slowed down non-priority decision-making processes. In October 2019, the EU decided to cool down talks with the Western Balkans, under pressure from France and some other countries. Albania and North Macedonia, which had made the work that Brussels had requested in order to formally open negotiations, have seen the rules of the game changed just before the start of the game.

meeting of the Western Balkans with EU countries, held in London in 2018 [European Commission].

▲ meeting of the Western Balkans with EU countries, held in London in 2018 [European Commission].

article / Elena López-Doriga

Since its origins, the European Community has been evolving and expanding its competences through treaties structuring its functioning and aims. issue The membership of the organisation has also expanded considerably: it started with 6 countries (France, Belgium, the Federal Republic of Germany, Italy, Luxembourg and the Netherlands) and now consists of 27 (following the recent departure of the United Kingdom).

The most notable year of this enlargement was 2004, when the EU committed itself to integrating 10 new countries, which was a major milestone challenge, given that these countries were mainly from Central and Eastern Europe, coming from the "iron curtain", with less developed economies emerging from communist systems and Soviet influence.

The next enlargement round goal is the possible EU membership of the countries of the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia). However, at a summit held in Brussels at the end of 2019 to open accession negotiations for new members, some EU countries were against continuing the process, so for the time being the accession of the candidate countries will have to wait. Some EU leaders have called this postponement a "historic mistake".

Enlargement towards Central and Eastern Europe

In May 1999 the EU launched the Stabilisation Process and association. The Union undertook to develop new contractual relations with Central and Eastern European countries that expressed a desire to join the Union through stabilisation agreements and association, in exchange for commitments on political, economic, trade or human rights reform. As a result, in 2004 the EU integrated the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia (the first member from the Western Balkans). In 2007 Bulgaria and Romania also joined the Union and in 2013 Croatia, the second Western Balkan country to join.

The integration of the Western Balkans

Since the end of the Yugoslav wars in late 2001, the EU has played a very prominent role in the Balkans, not only as an economic power in subject reconstruction, but also as a guarantor of stability and security in the region. The EU's goal is in part to prevent the Western Balkans from becoming a security black hole, given the rise of rising nationalism, growing tension between Moscow and Washington, which fuels tensions between ethnic groups in the region, and China's economic penetration of the area. Clearer progress towards Balkan integration was reaffirmed in the Commission's Western Balkans strategy of February 2018 and in the Sofia Declaration following the EU-Western Balkans Summit held in the Bulgarian capital on 17 May 2018. At the Summit, EU leaders reiterated their unequivocal support for the European perspective of the Western Balkans. "I see no future for the Western Balkans other than the EU. There is no alternative, there is no plan B. The Western Balkans are part of Europe and belong to our community," said the then president of the European committee , Donald Tusk.

Official candidates: Albania and Macedonia

Albania applied for EU membership on 28 April 2009. In 2012, the Commission noted significant progress and recommended that Albania be granted the status of candidate, subject to the implementation of a number of outstanding reforms. In October 2013, the Commission unequivocally recommended that Albania be granted membership status candidate . visit Angela Merkel visited Tirana on 8 July 2015 and stated that the prospect of the Balkan region's accession to the European Union (EU) was important for peace and stability. He stressed that in the case of Albania the pace of the accession process depended on the completion of reforms in the judicial system and the fight against corruption and organised crime. In view of the country's progress, the Commission recommended the opening of accession negotiations with Albania in its 2016 and 2018 reports.

On the other hand, the Republic of North Macedonia (former Yugoslav Republic of Macedonia) applied for EU membership in March 2004 and was granted country status candidate in December 2005. However, the country did not start accession negotiations because of the dispute with Greece over the use of the name "Macedonia". When this was successfully resolved by the agreement of Prespa under the country's new name - Northern Macedonia - the committee agreed on the possibility of opening accession negotiations with this country in June 2019, assuming the necessary conditions were met.

Potential candidates: Bosnia and Herzegovina and Kosovo

Bosnia and Herzegovina is a potential candidate country. Although it negotiated and signed a Stabilisationagreement and association with the EU in 2008, the entrance entry into force of this agreement remained at Fail mainly due to the country's failure to implement a judgement core topic of the European Court of Human Rights. In the meantime, the Parliament of Bosnia and Herzegovina has not reached a agreement concerning the rules of procedure governing its meetings with the European Parliament (twice a year), as these meetings have not been held since November 2015, and this status constitutes a breach of agreement by Bosnia and Herzegovina. 

Kosovo is a potential candidate candidate for EU membership. It declared its independence unilaterally in February 2008. All but five Member States (Cyprus, Greece, Romania, Slovakia, Spain and Cyprus) have recognised Kosovo's independence. Among the countries in the region, Serbia and Bosnia and Herzegovina have also failed to recognise Kosovo as an independent state. In September 2018, the European Parliament went a step further and decided to open inter-institutional negotiations, which are currently underway. However, the fact that not all member states currently recognise its independence is a major stumbling block.

Negotiating accession: Montenegro and Serbia

Montenegro, one of the smallest states on the European continent, has been part of different empires and states over the past centuries, finally gaining independence peacefully in 2006. It applied to join the Union in December 2008; it was granted the status of a country candidate in December 2010, and accession negotiations started in June 2012. By the end of 2018, 32 negotiating chapters had been opened, out of a total of 35.

Serbia 's process began in December 2009 when former president Boris Tadić officially submitted application for membership and also handed over to justice war criminal Ratko Mladić, manager of the Srebrenica massacre during the Bosnian War, who was hiding on Serbian territory. However, the conflict with Kosovo is one of Serbia's main obstacles to EU accession. It was granted country status candidate in March 2012, after Belgrade and Pristina reached an agreement agreement on Kosovo's regional representation. The official opening of accession negotiations took place on 21 January 2014. In February 2018, the Commission published a new strategy for the Western Balkans stating that Serbia (as well as Montenegro) could join the EU by 2025, while acknowledging the "extremely ambitious" nature of this prospect. Serbia's future EU membership, like that of Kosovo, remains closely linked to the high-level dialogue between Serbia and Kosovo under EU auspices, which should lead to a legally binding comprehensive agreement on the normalisation of their relations.

A step back in the negotiations

In October 2019, a summit was held in Brussels, goal to structure the negotiations of the official candidates for EU membership. Both North Macedonia and Albania were convinced that a date would be set to start the long process of negotiations. However, the process reached a stalemate after seven hours of wrangling, with France rejecting both countries' entrance . France led the campaign against enlargement, but Denmark and the Netherlands also joined the veto. They argue that the EU is not ready to take on new members. "It doesn't work too well at 28, it doesn't work too well at 27, and I'm not sure it will work any better with another enlargement. So we have to be realistic. Before enlarging, we need to reform ourselves," said French President Emmanuel Macron.

The then president of the European Commission, Jean-Claude Juncker, considered the suspension to be a major historic mistake and hoped that it would only be temporary. For his part, Donald Tusk said he was "ashamed" of the decision, and concluded that North Macedonia and Albania were not to blame for the status created, as the European Commission's reports were clear that both had done what was necessary to start negotiations with the EU.

In Albania, Prime Minister Edi Rama said that the lack of consensus among European leaders would not change Albania's future EU membership aspirations. He asserted that his government was determined to push ahead with the reforms initiated in the electoral, judicial and administrative spheres because it considered them necessary for the country's development , not just because Brussels demanded it.

In North Macedonia, on the other hand, the European rejection was deeply disappointing, as the country had proceeded to reform its institutions and judicial system and fight corruption; it had also changed its constitution, its name and its national identity. The rejection left the country, candidate official status for the past 14 years, in a state of great uncertainty, and Prime Minister Zoran Zaev decided to dissolve parliament and call elections for 12 April 2020 (later postponed due to the Covid-19 emergency). "We have fulfilled our obligations, but the EU has not. We are the victims of a historic mistake that has led to a huge disappointment," Zaev said.

A new, stricter process

Despite the fact that, according to the Commission, North Macedonia and Albania fulfilled the requirements criteria to become accession candidates, Macron proposed to tighten the accession process. In order to unblock status and continue with the process, which the EU claims to be a priority goal , Brussels has given in to the French president's request by establishing a new methodology for integrating new countries.

The new process envisages the possibility of reopening chapters of the negotiations that were considered closed or of fail the talks underway in one of the chapters; it even envisages paralysing the negotiations as a whole. It aims to give more weight to governments and to facilitate the suspension of pre-accession funds or the freezing of the process if candidate countries freeze or reverse committed reforms. The new method will apply to Albania and North Macedonia, whose negotiations with the EU have not yet begun, while Serbia and Montenegro will be able to choose whether to join, without having to change their established negotiating framework , according to the Commission.

Categories Global Affairs: European Union World order, diplomacy and governance Articles

One of the main instruments for combating poverty loses its relevance between the end of the "golden decade" and the beginning of the "second lost decade".

So-called Conditional Cash Transfers (CCTs) -submission of money to disadvantaged families with a commitment to schooling, medical check-ups or other basic requirements that, along with improving household incomes, sought to promote the options of the younger generation - have over the last two decades helped to significantly increase the class average in Latin America. But once beyond the subsistence level, citizens have recently begun to demand improved services, such as teaching, healthcare or transport - as seen in the protests of recent months in the region - to which CCTs no longer provided an answer. Just as countries were thinking of readapting their policies in response to this change in perspective, the Covid-19 crisis threatened to throw millions of people back into poverty, so cash transfers became necessary again, this time without conditionalities.

Beneficiaries of Brazil's Bolsa Família, one of the pioneering conditional cash transfer programmes [Gov. of Brazil].

Beneficiaries of Brazil's Bolsa Família, one of the pioneering conditional cash transfer programmes [Gov. of Brazil].

article / María Gabriela Fajardo

The first Conditional Cash Transfer (CCT) programmes in Latin America, a pioneer region in the implementation of this instrument, were developed in the mid-1990s in Brazil and Mexico with the intention of "transforming and halting the intergenerational transmission of poverty through the development of human capacities in the most vulnerable families", as stated by a report of ECLAC (United Nations Economic Commission for Latin America and the Caribbean). status The CCTs were designed to provide support to families in poverty or extreme poverty with under-age children. The submission of this monetary aid (also non-monetary) was provided as long as the families complied with basic conditions of health, Education and nutrition for the children.

The implementation of CCTs spread rapidly throughout the region. In 1997, only four countries had any of these programmes: Brazil (Bolsa Escola), Ecuador (Bono Solidario), Honduras (Programa de Asignación Familiar) and Mexico (Progresa). A decade later, almost all Latin American countries had adapted the initiative.

Although in some cases this tool has been controversial, given that some governments have been able to use it as "an instrument of social policy and its targeting is discussed as a strategy to address actions that must operate under restricted budgets", according to the aforementioned report of ECLAC, the truth is that CCTs are considered to have contributed to the socio-economic progress of the region. Alejandro Werner, director for the Western Hemisphere of the International Monetary Fund (IMF), recently pointed this out. "In the last 15 years," he said, giving part of the credit to CCTs, "important progress has been made in the topic area of poverty alleviation and reduction of income maldistribution. In this way, Latin America is probably the region where we see the greatest improvement in income distribution".

agreement Between 2002 and 2014, a time known in Latin America as the "golden decade" (a consequence of the commodities boom ), the poverty rate in the region fell from 45.4% to 27.8%, so that 66 million people overcame that status, according to the Social Panorama of Latin America 2019 published by ECLAC. Additionally, the extreme poverty rate decreased from 12.2% to 7.8%. However, since 2015, the level of poverty and extreme poverty began to increase, patron saint which has continued since then, albeit moderately. For 2019, ECLAC predicted an increase in poverty and extreme poverty to fees of 30.8% and 11.5%, respectively, so that 27 million more people returned to poverty compared to 2014. 

The challenge: from extreme poverty, to the class average

This slight reversal indicates that many who in that "golden decade" gained access to the class average , making this sector of the population a majority for the first time, find themselves in a high Degree of vulnerability. At the same time, these people have seen their expectations of subsequent progress and access to better services from the state unmet after their previous status of survival. The new challenge in many countries was to make public policies revolve around other factors that would allow the consolidation of these people in the class average . This neglect generated discontent that contributed to the large protests in several Latin American countries at the end of 2019.

The increased demands of a better-off population made structural deficiencies more evident. "The region's structural deficiencies have become more evident and their solution is part of the demands of broad social groups, particularly the new generations", according to report Social Panorama. In particular, ECLAC warned about "segmented access to quality public and cultural services".

In Werner's words, "having achieved such a significant reduction in the reduction of poverty also generates an important challenge for policy makers in Latin America, since the design of social policies has to be oriented towards attending to other factors, not to the reduction of extreme poverty. It is not that we have to forget about that, but clearly the challenge now is to focus also on addressing those segments of the population that are no longer in poverty, which are class average ". After underlining the precariousness of this large group of the population that has moved up the social ladder, the IMF's manager for the Western Hemisphere indicated that "clearly the instruments to address this vulnerability are different from the conditional transfer schemes that were implemented in the past", and specifically cited access to quality health and Education .

However, states have faced the need for this paradigm shift without budgetary support. It is evident that the state has little capacity to respond to the new needs of the vulnerable population affected by low levels of education, few opportunities at work and the inefficiency of the pension system.

The countries have found that economic growth, which between 2000 and 2013 hovered jointly around 2%, has been weakening since 2014. Thus, real GDP per capita in the region has declined by 0.6% per year. The causes of this decline in economic growth can be classified into two factors, as Werner explained. Firstly, structural causes have inhibited potential growth due to "low investment, slow productivity growth, a poor business climate Pass , the leave quality of infrastructure and Education". Second, cyclical causes include weak global economic growth and low commodity prices; uncertainty in large regional economies such as Brazil and Mexico, sudden economic stops in stressed economies such as Argentina and Ecuador, and social tensions in the last quarter of 2019.

Coronavirus

The emergence of the Covid-19 pandemic has worsened the economic outlook for Latin America and the Caribbean, for which the April 2020 report forecasts a 5.2% drop in GDP this year. Although the IMF estimates a recovery of 3.4% in 2021, this will not be enough to allay fears of a new "lost decade". In his most recent intervention to comment on these data, Werner warned that between 2015 and 2025 GDP per capita "will be flat".

To cope with this new status, socially aggravated by the health crisis and the suffering of so many people, governments are resorting to direct cash transfers, no longer conditional, to vulnerable households. In a way, it is a return to a stage of need that was even earlier, before the CCTs were extended. It is a return to the urgency of the 1980s, known in Latin America as the lost decade, when countries had to apply shock measures to get out of a severe public debt crisis.

development The president of the Inter-American Development Bank (IDB), Luis Alberto Moreno, believes that it is still too early to speak of a second lost decade, but agrees that the time is ripe for unconditional transfer programmes. "The big question is whether everything we have achieved in the last 15 years in terms of reducing poverty and extreme poverty, with the incorporation of some Latin Americans into the middle classes, is going to be lost or whether, on the contrary, the capacity of the social systems and the governments' drive to increase the debt and the public expense will cushion the effects," Moreno affirms. All the countries "are strengthening the transfer programmes that were developed almost two decades ago, and which have been very successful", although "in this case they will not be conditional, in order to preserve the income of many families".

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

Apart from China, Italy has received aid from Russia and Cuba, making a risky geopolitical move in the European context.

The global spreading of the virus is putting under stress the big ally of the Union, the United States, which is demonstrating its lack of an efficient social health care system. Furthermore, the initial refusal of Washington to send help to the EU was seen as an opportunity for countries like Russia, China and Cuba to send medical and technical support to those countries of the EU that are most affected by the virus. Italy has taken aid send by Beijing, Moscow and Havana, shaking the geopolitical understandings of the EU's foreign policy.

Russia's aid arrived in Italy in the middle of the pandemic crisis [Russian Defense Ministry].

▲ Russia's aid arrived in Italy in the middle of the pandemic crisis [Russian Defense Ministry].

ARTICLEMatilde Romito

The World Health Organisation (WHO) declared Corona Virus (Covid-19) a pandemic on the 11th of March, 2020. The fast widespread of the virus pushed numerous countries around the world and especially in Europe where there is the highest number of confirmed cases, to call for a lockdown. This extreme measure is not only leading the EU and the entire world towards an unprecedented economic crisis, but it is also redefining geopolitics and the system of alliances we were used to.

The pandemic. On January 30, 2020, the World Health Organisation (WHO) declared the first outbreak of novel coronavirus a 'public health emergency of international concern'. In mid-February, numerous cases of corona virus began to be reported in northern Italy and in several European countries. Initially, the spread of the virus mainly hit Italy, which reported the biggest number of cases among the EU states. In March, Italy started with the implementation of social-distancing measures and the consequent lockdown of the country, followed by Spain, France and other European countries. On March 11, 2020, the WHO declared covid-19 a global pandemic. Currently, Europe is the region of the world with the highest number of confirmed cases. According to the WHO, on April 6, Europe reached 621,407 cases compared to the 352,600 cases in America and the 112,524 in Western Asia.

The global lockdown. At first, several major airlines suspended their flights from and to China, in order to avoid further contaminations. Now, the majority of flights in Europe and in other regions have been cancelled. The biggest areas of world are under lockdown and the economic consequences of this are becoming more and more evident. A forced social distancing seems to be the only way to contain the spread of the virus and the closing of national borders is currently at the center of states' policies to combat the virus. However, some European countries, such as Sweden, do not seem to agree on this.

Lack of solidarity

We are assisting to a global situation of 'everybody for oneself,' and this has become highly evident within the EU itself. Individual countries within the Union have shown high levels of egoism on different occasions. The North-South divide within the EU is clearer than ever, particularly between the Netherlands and Austria on the one side, and Italy, Spain, France and Greece on the other side. The former group of countries is asking for compromise and conditions to lend money to the most afflicted ones for countering the crisis, while the latter group is asking the EU to share the debts accumulated in order to save European economies (eurobonds).

The different spread-intensity of the virus in different European countries has shown more than once the fragility of the Union, which demonstrated to be led by the arrogance of the rich. On different occasions European leaders have shown a lack of European identity, solidarity and common vision. For instance, at the beginning of the crisis France and Germany attempted to 'cover with the European flag' medical products directed to Italy, by declaring them 'European products', trying to compensate the initial inaction of the EU. Another example, could be the seizure by the Czech Republic of 110,000 Chinese masks and thousands of breathing supports, which were destined to Italy (March the 21st). Moreover, the lack of unity also came from an unjustified action of protectionism undertaken by Poland, which closed its market to agricultural products coming from Italy on March 18, despite it was already known that the virus could not be spread through such products.

Nevertheless, there are some good and unexpected examples of solidarity. For instance, a good lesson on European solidarity came from the small state of Albania. The Albanian prime minister Edi Rama taught European leaders what it means to be part of the EU by sending a medical unit to the Italian region of Lombardy, despite the numerous difficulties Albania is facing, thus showing that the fight against the virus has no nationality and it cannot leave room for egoistic calculations. Moreover, more recently Germany has accepted to receive and take care of numerous patients coming from Italy, where the majority of health infrastructures are saturated.

Overall, little comprehension and solidarity has been shown between European member states, thus being criticised by the European Commission president, Ursula Von Der Leyen.

Geopolitical tensions

The EU is going through numerous changes in the relations between its members. The closing up of individual countries poses a big challenge to the EU itself, which is founded on freedom of movement of people and goods.

Currently, sending masks and medicines seems to have become the main means for countries to exert influence in global affairs. The global spreading of the virus is putting under stress the big ally of the Union, the United States (US), which is demonstrating its lack of an efficient social health care system. Furthermore, the initial refusal of Washington to send help to the EU was seen as an opportunity for countries like Russia, China and Cuba to send medical and technical support to those countries of the EU that are most affected by the virus, like Italy and Spain. After having seen its hegemonic position in Europe under threat, the US decided to send monetary help to some European countries, such as 100 million dollars to Italy, in order to help in countering the emergency.

At the end, the EU seems to start standing all together. But, did the European countries take action on time? Generally, countries, like human beings, are more likely to remember one bad impression better than numerous good ones. Therefore, are countries like Italy going to 'forgive' the EU and its initial inactivity? Or are they going to fall back on countries like Russia and China, which have shown their solidarity since the beginning?

Furthermore, did the EU take action because of an inherent identity and solidarity? Or was it just a counteraction to the Chinese and Russian help? It seemed that specifically Germany's mobilisation followed the exhortation of the former president of the European Central Bank (ECB), Mario Draghi. He accused Germany and other countries of taking advantage of the virus for imposing a 'conditionality' to the countries that were asking for help. Moreover, in an interview on the Financial Times he called for an exceptional investment in the economies and for a guarantee of the debts, in order to jointly face the crisis, because no country can face this unprecedented threat alone. Now, anti-virus economic action turned into a matter of urgency for Europe and the European Commission is working on a common European response to the crisis.

Future perspectives

Probably, after the end of the virus spread, the world will assist to important changes in the global dynamics of alliances. Russia and China will most likely have one or more European allies to advance their interests in the EU. On the one side, this could lead to a further weakening of the EU governance and to the re-emergence of nationalism on states' behaviour within the Union. And on the other side, it could lead to the development of further mechanisms of cooperation among the EU members, which will go beyond the eurobonds and will probably extend to the sanitary dimension.

To preserve its unity, the European political-economic-cultural area will need to be strengthened, by fighting inequalities with a new model of solidarity. Its future prosperity will most likely depend on its internal market.

Nevertheless, for now the only thing we can be sure about is that the first impression on the EU was very bad and that this situation is going to lead all of us towards an unprecedented economic crisis, which most probably will redefine the political relationships between the world's biggest regions.

Categories Global Affairs: European Union World order, diplomacy and governance Articles

The Alliance maintains its focus on Russia, but for the first time expresses concern about Beijing's actions.

NATO had begun 2020 in the spirit of leaving behind the internal problems of its particular annus horribilis - a 2019 in which the organisation had reached "brain death", according to French President Emmanuel Macron - but the absence of global normality due to the coronavirus crisis is making it difficult to fully implement internship what was agreed at the London Summit, held last December to commemorate the 70th anniversary of the creation of the Alliance. Indeed, the London Declaration expressed concern about China's actions on issues such as 5G.

North Atlantic Treaty Organisation [NATO] member countries

North Atlantic Treaty Organisation [NATO] Member States

article / Jairo Císcar

internship NATO Summits bring together the Heads of State and/or Government of member countries and serve to take strategic decisions at the highest level, such as the launch of new policies (e.g. the New Strategic Concept at the Lisbon Summit in 2010), the introduction of new members to the Alliance (Istanbul Summit 2004, with seven new members), or the advertisement of major initiatives, as was done at the Newport Summit 2014, where the core coalition of what would later become the International Coalition against the Islamic State was announced.

The London Summit took place on 3 and 4 December to celebrate the 70th anniversary of the creation of the Alliance, which had its first headquarters in the British capital. At the work meetings, attended by all 29 member states, the focus was on three main issues: (a) the continuing tension-distension between Washington and Paris; (b) the economic issue, both the trade war between the European and US defence industries and member states' defence investment; and (c) the management of an increasingly fractious Turkey.

a) The Washington-Paris dispute witnessed a new chapter in the two most committed countries' understanding of the Atlantic Alliance. While the US continues to insist on the importance of focusing the Alliance's efforts on an Eastern axis (against Russia and Middle Eastern jihadism), France wants NATO's strategic axis to focus on the South, on the African Sahel. This is a vision shared and supported by Spain, which participates in several missions on African soil such as EUTM-Mali or the Ivory Detachment in Senegal (which provides strategic transport in the area to the countries participating in AFISMA and especially to France). For Southern Europe, the greatest threat is the jihadist threat, and its centre of gravity is in Africa. Macron made this clear.

b) The economic issue remains fundamental, and was addressed at the Summit. Since the 2014 Newport Summit, at which the 29 members agreed to direct their efforts towards increasing expense in defence to at least 2 per cent of GDP, only nine have achieved goal (Spain is at the bottom, with a derisory 0.92 per cent, surpassed only by Luxembourg). The United States, at the forefront of defence investment within NATO, contributes 22% of the entire budget. The Trump Administration not only wants this increase so that the Alliance will have larger, more prepared and modernised armies, but it is framing the increase in an ambitious commercial strategy, with the F-35 "Lightning" as its main product. As an example, Poland: after reaching the required 2 per cent, the country announced the purchase of 35 F-35s and their software and technical support for $6.5 billion. In this way, the US was able to cope with the losses caused by the break-up of agreement with Turkey after the Ottomans purchased the Russian S-400 system. With this acquisition, Poland jo ins the club of seven other NATO members with this aircraft, facing the commercial offensive of the European producer bloc to continue selling "Eurofighter" packages and, especially, the recent Future Combat Air System (led by Airbus and Dassault), of which Spain is a member. Europe wants to create a strong Defence Industry community for reasons of self-sufficiency and to compete in the markets against the US industry, which is why we are facing a "mini" trade war between allied countries.

c) On Turkey, NATO's most uncomfortable member, there was a clear negative feeling. It is an unreliable ally, which is attacking other allies in Operation Inherent Resolve such as the Kurdish militias, considered terrorists by the Ankara government. Looming over the leaders present in London was the fear of a possible invocation of article 5 of the Washington Treaty by Turkey calling for active confrontation in Syria. NATO has little choice, for if it does not stand up to Erdogan, it would be pushing him into the Russian orbit.

London Declaration

The summit's final statement showed a change of focus within the Alliance: until now, Russia was the main concern and, while it remains a priority, China is taking its place. The Declaration can be divided into three blocks.

1) The first bloc functions as an emergency stopgap, intended to satisfy the most discordant voices and create a picture of apparent seamless unity. In its first point, member states reaffirm the commitment of all countries to the common values they share, citing democracy, individual freedom, human rights and the rule of law. As a gesture towards Turkey, article 5 is mentioned as the cornerstone of the North Atlantic Treaty. It is clear that, at least in the short to medium term deadline, Western countries want to keep Turkey as partner, being willing to compromise in small gestures.

Further on, the Alliance stresses the need to "continue to strengthen the capabilities, both of member states and collectively, to resist all forms of attack". With respect to goal , which is paramount for the US and the top-spending states, it says that good progress is being made, but that "more must and will be done".

2) The next block enters subject purely strategic and less political. The Alliance notes that the current international system is under attack by state and non-state actors. It highlights the threat posed by Russia to the Eurasian region and introduces irregular migration as source of instability.

With respect to this stabilisation, the Alliance's main thrusts will be to secure a long-term presence in Afghanistan deadline, a stronger partnership with the UN, as well as a direct NATO-EU partnership . The Alliance wants to increase its global presence and its presence at all levels. The Alliance wants to increase its global presence, as well as its work at all levels. sample is the forthcoming accession of North Macedonia as the Alliance's 30th member, sending a clear message to Russia that there is no place in Europe for its influence.

Clearly, for NATO we are in 4th generation conflicts, with the use of cyber and hybrid warfare. The commitment to 360° security within the Alliance is mentioned. NATO is aware of the changing realities of the battlefield and the international arena, and sample is committed to adapting and update its capabilities.

3) As a third block, for the first time China is mentioned directly as an issue requiring joint decisions. China's emerging leadership in the field of communications and the internet, especially with 5G technology, is of deep concern within the Atlanticist camp. In an operating environment where cyberwarfare and hybrid warfare will change the way in which conflict is dealt with, there is a need to ensure the resilience of societies that are completely dependent on technology, especially by protecting critical infrastructure (government buildings, hospitals, etc.) and energy security. In London, the importance of developing one's own systems so as not to depend on those provided by countries that could use them against consumers was also proclaimed, as well as the need to increase offensive and defensive capabilities in the cyber environment. It was recognised that China's growing influence in the international arena presents both opportunities and risks, and that this is an issue that needs to be closely and continuously monitored.

The Document ends with a statement of intent: "In times of challenge, we are stronger as an Alliance and our people are more secure. Our togetherness and commitment to each other has guaranteed our freedoms, values and security for 70 years. We act today to ensure that NATO guarantees these freedoms, values and security for generations to come".

While it was a bittersweet summit, with many misunderstandings and unfortunate comments, the reality is that, outside of politics, the Alliance is prepared. It is aware of the threats it faces, both internal and external. It knows the realities of today's world and wants to act accordingly, with a greater and more lasting involvement Degree . While words have often remained on paper, this Declaration and this Summit show an Alliance that, with its particularities, is ready to face the challenges of the 21st century - its old ghosts like Russia, and its new threats like China.

Categories Global Affairs: Security and defence Articles Global

The Trump Administration's Newest Migration Policies and Shifting Immigrant Demographics in the USA

New Trump administration migration policies including the "Safe Third Country" agreements signed by the USA, Guatemala, El Salvador, and Honduras have reduced the number of migrants from the Northern Triangle countries at the southwest US border. As a consequence of this phenomenon and other factors, Mexicans have become once again the main national group of people deemed inadmissible for asylum or apprehended by the US Customs and Border Protection.

An US Border Patrol agent at the southwest US border [cbp.gov].

▲ An US Border Patrol agent at the southwest US border [cbp.gov].

ARTICLE / Alexandria Casarano Christofellis

On March 31, 2018, the Trump administration cut off aid to the Northern Triangle countries in order to coerce them into implementing new policies to curb illegal migration to the United States. El Salvador, Honduras, and Guatemala all rely heavily on USAid, and had received 118, 181, and 257 million USD in USAid respectively in the 2017 fiscal year.

The US resumed financial aid to the Northern Triangle countries on October 17 of 2019, in the context of the establishment of bilateral negotiations of Safe Third Country agreements with each of the countries, and the implementation of the US Supreme Court's de facto asylum ban on September 11 of 2019. The Safe Third Country agreements will allow the US to 'return' asylum seekers to the countries which they traveled through on their way to the US border (provided that the asylum seekers are not returned to their home countries). The US Supreme Court's asylum ban similarly requires refugees to apply for and be denied asylum in each of the countries which they pass through before arriving at the US border to apply for asylum. This means that Honduran and Salvadoran refugees would need to apply for and be denied asylum in both Guatemala and Mexico before applying for asylum in the US, and Guatemalan refugees would need to apply for and be denied asylum in Mexico before applying for asylum in the US. This also means that refugees fleeing one of the Northern Triangle countries can be returned to another Northern Triangle country suffering many of the same issues they were fleeing in the first place.

Combined with the Trump administration's longer-standing "metering" or "Remain in Mexico" policy (Migrant Protection Protocols/MPP), these political developments serve to effectively "push back" the US border. The "Remain in Mexico" policy requires US asylum seekers from Latin America to remain on the Mexican side of the US-Mexico border to wait their turn to be accepted into US territory. Within the past year, the US government has planted significant obstacles in the way of the path of Central American refugees to US asylum, and for better or worse has shifted the burden of the Central American refugee crisis to Mexico and the Central American countries themselves, which are ill-prepared to handle the influx, even in the light of resumed US foreign aid. The new arrangements resemble the EU's refugee deal with Turkey.

These policy changes are coupled with a shift in US immigration demographics. In August of 2019, Mexico reclaimed its position as the single largest source of unauthorised immigration to the US, having been temporarily surpassed by Guatemala and Honduras in 2018.

 

 

 

US Customs and Border Protection data indicates a net increase of 21% in the number of Unaccompanied Alien Children from Mexico, Guatemala, Honduras, and El Salvador deemed inadmissible for asylum at the Southwest US Border by the US field office between fiscal year 2019 (through February) and fiscal year 2020 (through February). All other inadmissible groups (Family Units, Single Adults, etc.) experienced a net decrease of 18-24% over the same time period. For both the entirety of fiscal year 2019 and fiscal year 2020 through February, Mexicans accounted for 69 and 61% of Unaccompanied Alien Children Inadmissible at the Southwest US border respectively, whereas previously in fiscal years 2017 and 2018 Mexicans accounted for only 21 and 26% of these same figures, respectively. The percentages of Family Unit Inadmisibles from the Northern Triangle countries have been decreasing since 2018, while the percentage of Family Unit Inadmisibles from Mexico since 2018 has been on the rise.

With asylum made far less accessible to Central Americans in the wake of the Trump administration's new migration policies, the number of Central American inadmisibles is in sharp decline. Conversely, the number of Mexican inadmisibles is on the rise, having nearly tripled over the past three years.

Chain migration factors at play in Mexico may be contributing to this demographic shift. On September 10, 2019, prominent Mexican newspaper El discussion published an article titled "Immigrants Can Avoid Deportation with these Five Documents." Additionally, The Washington Post cites the testimony of a city official from Michoacan, Mexico, claiming that a local Mexican travel company has begun running a weekly "door-to-door" service line to several US border points of entry, and that hundreds of Mexican citizens have been coming to the municipal offices daily requesting documentation to help them apply for asylum in the US. Word of mouth, press coverage like that found in El discussion, and the commercial exploitation of the Mexican migrant situation have perhaps made migration, and especially the claiming of asylum, more accessible to the Mexican population.

US Customs and Border Protection data also indicates that total apprehensions of migrants from Mexico, Guatemala, Honduras, and El Salvador attempting illegal crossings at the Southwest US border declined 44% for Unaccompanied Alien Children and 73% for Family Units between fiscal year 2019 (through February) and fiscal year 2020 (through February), while increasing for Single Adults by 4%. The same data trends show that while Mexicans have consistently accounted for the overwhelming majority of Single Adult Apprehensions since 2016, Family Unit and Unaccompanied Alien Children Apprehensions until the past year were dominated by Central Americans. However, in fiscal year 2020-February, the percentages of Central American Family Unit and Unaccompanied Alien Children Apprehensions have declined while the Mexican percentage has increased significantly. This could be attributed to the Northern Triangle countries' and especially Mexico's recent crackdown on the flow of illegal immigration within their own states in response to the same US sanctions and suspension of USAid which led to the Safe Third Country bilateral agreements with Guatemala, Honduras, and El Salvador.

While the Trump administration's crackdown on immigration from the Northern Triangle countries has effectively worked to limit both the legal and illegal access of Central Americans to US entry, the Trump administration's crackdown on immigration from Mexico in the past few years has focused on arresting and deporting illegal Mexican immigrants already living and working within the US borders. Between 2017 and 2018, ICE increased workplace raids to arrest undocumented immigrants by over 400% according to The Independent in the UK. The trend seemed to continue into 2019. President Trump tweeted on June 17, 2019 that "Next week ICE will begin the process of removing the millions of illegal aliens who have illicitly found their way into the United States. They will be removed as fast as they come in." More deportations could be leading to more attempts at reentry, increasing Mexican migration to the US, and more Mexican Single Adult apprehensions at the Southwest border. The Washington Post alleges that the majority of the Mexican single adults apprehended at the border are previous deportees trying to reenter the country.

 

 

 

Lastly, the steadily increasing violence within the state of Mexico should not be overlooked as a cause for continued migration. Within the past year, violence between the various Mexican cartels has intensified, and murder rates have continued to rise. While the increase in violence alone is not intense enough to solely account for the spike that has recently been seen in Mexican migration to the US, internal violence nethertheless remains an important factor in the Mexican migrant situation. Similarly, widespread poverty in Mexico, recently worsened by a decline in foreign investment in the light of threatened tariffs from the USA, also plays a key role.

In conclusion, the Trump administration's new migration policies mark an intensification of long-standing nativist tendencies in the US, and pose a potential threat to the human rights of asylum seekers at the US-Mexico border. The corresponding present demographic shift back to Mexican predominance in US immigration is driven not only by the Trump administration's new migration policies, but also by many other diverse factors within both Mexico and the US, from press coverage to increased deportations to long-standing cartel violence and poverty. In the face of these recent developments, one thing remains clear: the situation south of the Rio Grande is just as complex, nuanced, and constantly evolving as is the situation to the north on Capitol Hill in the USA.

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

Chinese companies develop four mining projects on the island; Trump offered to buy it out

The melting of the Arctic ice opens up new sea routes and makes certain territories, such as Iceland and especially Greenland, whose enormous size also conceals vast natural resources, particularly valuable. Chinese mining companies have been present in the 'Green Land' since 2008; the Danish government has sought to curb Beijing's increasing influence by directly taking over the construction of three airports instead of having them placed under management . Copenhagen veiled fears that China will encourage Greenlandic independence, while the White House has offered to buy the island, as it has tried to do at other times in history.

Population of Oqaatsut, on the east coast of Greenland [Pixabay].

▲ Population of Oqaatsut, on the east coast of Greenland [Pixabay].

article / Jesús Rizo Ortiz

Greenland is the largest island in the world, with more than 2 million square kilometres, while its inhabitants are less than 60,000, making it the least densely populated territory in the world. This reality, together with the natural wealth still to be exploited and the geographical location, give this Green Earth great geostrategic importance. Moreover, global warming and the struggle for the new world order between the US, China and Russia place this territory dependent on Denmark at the centre of geopolitical dynamics for the first time in its history.

Due to the melting of the Arctic Ocean, new communication routes are emerging between the American, European and Asian continents. These routes, although they will remain subject to limitations in the future, are becoming more and more accessible for longer periods of the year. Greenland is a strategic control and supply point for both the Northern route (following the northern contour of Russia) and the Northwest route (through the northern Canadian islands), not only for goods and commercial ships, but also in terms of security, as the melting of the ocean ice significantly shortens the distances between the main international players.

Greenland's geographical position is core topic, but also what lies beneath the ice that covers 77% of its surface. It is estimated that 13% of the world's oil reserves are found in Greenland, as well as 25% of the so-called rare earths (neodymium, dysprosium, yttrium...), which are essential in the production of new technologies.

Interest from China and the US

The prospects opened up by the increased possibility of navigation through the Arctic have led Arctic powers to develop their strategies. But also China, interested in a Polar Silk Road, has sought ways to be present in the Arctic circle, and has found a gateway in Greenland.

China's foreign policy is largely focused on implementing projects in areas where its financial power is needed, and it is doing so in places where it is needed, such as Africa and Latin America, development . This subject action is also being carried out in Greenland, where Chinese companies have been present since 2008. The main Danish political parties view this connection with Beijing with reticence, but the reality is that many of the Greenlandic population, more than 80 per cent of whom are of Inuit origin, value positively the possibilities for local development investment opened up by Chinese investment. This different perspective was particularly evident when in 2018 the Greenland government promoted three international airports (expansion of the airport in the capital, Nuuk, and construction in the tourist sites of Ilulimat and Qaqortog), which together represented the largest public works contract in its history. Although an offer from the state-owned construction company CCCC was quickly received from China, Copenhagen finally decided to provide Danish public funds and to participate in the ownership of the airports, given the misgivings about the Chinese initiative.

China is in any case present in four previous mining-related projects run by both state-owned and private companies, all of them following the geopolitical purposes of the Chinese government, whose Ministry of Information Technology and Industry has expressed its interest in Greenlandic activity. These four projects are the Kvanefjeld project for rare earth mining, mainly financed by Shenghe Resources; the Iusa project for iron ore mining, fully financed by General Nice; the Wegener Halvø project for copper mining, supported by Jiangxi Zhongrun after a agreement with Nordic Mining in 2008; and finally, the so-called Citronen Base Metal project, at position of China Nonferrus Metal Industry's Foreign Engineering and Construction (NFC).

The United States is not lagging behind in its interest in Greenland. As early as the 1860s, US President Andrew Johnson highlighted Greenland's importance in terms of resources and strategic position. Almost a century later, in 1946, Harry Truman offered the Danish government to buy Greenland for $100 million in gold. Although Denmark rejected the offer, it did agree to the establishment of a US air base at Thule in 1951. This is the northernmost military base in the world, which was core topic during the Cold War and is still in operation today. This base gives the US an advantage not only in the face of the commercial opening of new sea crossings, but also in the face of a hypothetical Sino-Russian coalition seeking to dominate the Northern route. In other words, given Greenland's dual importance (natural resources and security), it is understandable that someone as unconventional as Donald Trump has once again suggested the possibility of buying the huge island, something that Copenhagen has declined to do.

 

Projected pathways through the Arctic; the top row corresponds to the melting that could occur with low emissions, the bottom row in the case of high emissions [Arctic Council].

Projected pathways through the Arctic; the top row corresponds to the melting that could occur with low emissions, the bottom row in the case of high emissions [Arctic Council].

 

At the centre of a 'Great Game

Aside from the current unfeasibility of such an operation subject without taking into account, among other things, the will of the population, it is true that a Great Game is taking place between the main international players to count Greenland among their geostrategic cards.

1) The US already has a military presence in Greenland, as well as good relations with NATO members Denmark and Iceland, so control of the Denmark Strait is guaranteed, as well as the space between Greenland, Iceland and the UK (known as the GIUK Gap), which connects the Arctic with the North Atlantic. However, Washington will have to change its strategy if it wants to take control of Greenland, starting by improving its relations with the Danish government and funding projects on the island.

2) Although not prominent in relation to Greenland, Russia enjoys pre-eminence in the entire Arctic region. It is by far the country with the largest military presence in the area, having reused some of the Soviet installations. It is the hegemonic power along the entire Northern route, considered by the Kremlin to be the main national communication route. Given Russia's absolute empire over this route, the ice that still covers it for much of the year, and US control of its Atlantic side, this route will not (at least in principle) be a real and profitable alternative to the Strait of Malacca, much to China's discomfort.

3) China presented its Arctic policy white paper in 2018, in which it defined itself as a 'quasi-Arctic power'. For the time being, it has set its sights on Greenland as a key point on its Polar Silk Road. The northern route would cut transport time between Asian and European ports by about a week and would be a much-needed alternative to the Strait of Malacca. The big island has so far focused on resource extraction, following its own cautious modus operandi. Moreover, the Chinese funds provide Greenlanders with an alternative to absolute dependence on Denmark, which additionally favours the island's nationalist pretensions.

Categories Global Affairs: Logistics and infrastructure Articles Arctic and Antarctic

The changes, although significant in some cases, will not substantially alter trade flows between the three countries.

The new Free Trade Agreement between the United States, Canada and Mexico is now ready for implementation, following ratification by the congresses of the three countries. The revision of the previous treaty, which came into force in 1994, was called for by Donald Trump on his arrival at the White House, citing the trade deficit generated for the US in relation to Canada and especially Mexico. Although some significant corrections have been introduced, following the main American approaches, it does not seem that the revised agreement will substantially modify trade flows between the three countries.

Presidents Peña Nieto, Trump and Trudeau sign the agreement free trade agreement in November 2019 [US Gov.]

▲ Presidents Peña Nieto, Trump and Trudeau sign the free trade agreement in November 2019 [US Gov.]

article / Marcelina Kropiwnicka

On 1 January 1994, the North American Free Trade Agreement (NAFTA) entered into force. More than twenty years later and under the administration of President Donald Trump, the three partner countries opened a review process of agreement, now called the Free Trade Agreement between the United States, Canada and Mexico (to which each country has given a different acronym: the Mexicans call it T-MEC or TMEC, the Americans USMCA and the Canadians CUSMA).

The text of the TMEC finally ratified by the three countries is broadly consistent with the old NAFTA. However, there are particular distinctions. Thus, it includes stricter rules of origin in the automotive and textile sectors, an updated labour value content requirement in the automotive sector, increased US access to Canadian supply-managed markets, novel provisions related to financial services, and a specification on the establishment of free trade agreements with non-market economies. The joint goal is to encourage production in North America.

New developments negotiated in 2017-2018

The three parties began negotiations in the summer of 2017 and after just over a year they concluded a agreement, signed by the presidents of the three countries in November 2018. The main novelties introduced until then were the following:

1) The agreement revises the regional value content (RVC) percentage for the automotive industry. Under NAFTA, at least 62.5% of an automobile had to be made from North American parts. The TMEC raises the percentage to 75% with the intention of strengthening the countries' manufacturing capacity and increasing the strength of work in the automotive industry.

2) Along the same lines, to support employment in North America, the agreement contains new trade rules of origin to boost higher wages by mandating that 40-45% of auto manufacturing be done by workers earning at least $16 per hour on average by 2023; that's roughly three times the pay a Mexican worker normally receives today.

3) Apart from the automotive industry, the dairy market will be opened to ensure greater access for US dairy products , a demand core topic for Washington. Currently, Canada has a system of domestic quotas that were put in place to protect its farmers from foreign skill ; however, under the new TMEC agreement , changes will allow the US to export up to 3.6% of Canada's dairymarket ,an increase of 2.6% from the original NAFTA provision. Another achievement core topic for Trump was the negotiation of Canada's elimination of what are known as itsmilk classes 6 and 7.

4) Another new aspect is the sunset clause. NAFTA had an automatic sunset clause or a pre-determined end date for the agreement, which meant that any of the three parties could withdraw from the agreement, after a six-month notice of withdrawal notice ; if this did not occur, the agreement remained indefinite. However, the TMEC foresees a duration of 16 years, with the option to meet, negotiate and revise the document after six years, as well as the possibility to renew the agreement after 16 years.

5) The three-country pact also includes a chapter on work that anchors labour obligations at the core of agreement , making enforcement more demanding.

Reforms in Mexico

Precisely to make that last point more credible, US and Canadian negotiators demanded that Mexico make changes to its labour laws to speed up the process of approval and ratification of the TMEC by lawmakers in Washington and Ottawa. US House leaders had doubted Mexico's ability to comply specifically with the labour rights points of agreement. One of President Trump's main objectives in the renegotiation was to reassure US workers that the status of skill would be overcome.

Mexican President Andrés Manuel López Obrador sent a letter to the US congress guaranteeing the implementation of a four-year plan to ensure the achievement of adequate labour rights. López Obrador committed to an outlay of $900 million over the next four years to change the labour justice system and ensure that disputes between workers and employers are resolved in a timely manner. Mexico has also invested in the construction of a Federal Centre for Labour Conciliation and Registration, where labour disputes will be addressed prior to a court hearing.

Obrador showed his commitment to labour reforms by ensuring at least a 2% increase in theminimum wage in Mexico. Most importantly B is that the requirement for direct voting of union leaders will change the way workers' organisations function. With direct elections, decisions on collective agreements will be more transparent. Mexico's plan to improve the working environment will start in 2020.

What's new in 2019 to facilitate ratification

Faced with demands on the US congress , especially from the Democratic majority, to ratify the treaty, negotiators proceeded with two major revisions to NAFTA. One of them aimed primarily at revising a large number of provisions relating to intellectual property, pharmaceuticals and the digital economy:

6) The intellectual property rights chapter seeks to address US concerns to spur innovation, generate economic growth and support jobs work. For the first time, according to the US Trade Representative, the additions include: strict rules against circumvention of technological protection measures for music, movies and digital books; strong protections for pharmaceutical and agricultural innovation; broad protections against theft of trade secrets; and authority for officials to stop suspected counterfeit or pirated goods from official document .

7) A new chapter on digital trade has also been included that contains stricter controls than any other international agreement , strengthening the foundation for the expansion of trade and investment in areas where the US has a competitive advantage.

8) The final draft removes a 10-year guarantee of intellectual property protection for biological medicines, which are some of the most expensive medicines on the market. It also removes granting an additional three years of IP exclusivity for medicines for which a new use is found.

A second group of last minute changes makes reference letter for greater environmental and labour protections:

9) Environment covers 30 pages, outlining obligations to combat trafficking in wildlife, timber and fish; strengthen law enforcement to stop such trafficking; and address critical environmental issues such as air quality and marine litter. New obligations include: protection of various marine species, implementation of appropriate methods for environmental impact assessments, and alignment with obligations under seven multilateral environmental agreements. In particular, Mexico is agreement to improve surveillance to stop illegal fishing, and the three countries agree to stop subsidize fishing for overfished species. To increase environmental accountability, Democrats in the US House of Representatives called for the creation of an inter-agency oversight committee. However, the treaty does not address climate change issues.

10) To ensure that Mexico delivers on its labour promises, House Democrats forced the creation of an interagency committee to monitor the implementation of Mexico's labour reform and compliance with labour obligations. Despite the new and unique 'LVC' requirement, a labour value content rule, it will still be difficult to impose a minimum wage on Mexican automakers. However, US Democrats hope that the condition will force automakers to buy more supplies from Canada or the US, or cause automakers' wages in Mexico to rise.

The finally ratified agreement will replace the one that has been in force for 25 years. Overall, the move from NAFTA to the TMEC should not have a drastic effect on the three countries. It is a progressive agreement that will entail slight changes: certain industries will be affected, such as the automotive and dairy industries, but only to a small extent. In the long run deadline, given the changes introduced, wages should increase in Mexico, which would reduce Mexican migration to the US. Businesses will be affected in the long run deadline, but with back-up plans and new redesigns, the transition process will hopefully be smooth and mutually beneficial.

Categories Global Affairs: North America EconomicsTrade and Technology Articles

27% of Latin America's total private wealth is held in territories that offer favourable tax treatment.

Latin America is the world region with the highest percentage of private offshore wealth. The proximity of tax havens, in various countries or island dependencies in the Caribbean, can facilitate the arrival of this capital, some of which is generated illicitly (drug trafficking, corruption) and all of which evades national tax institutions with little supervisory and coercive force. Latin America lost 335 billion dollars in taxes in 2017, which represented 6.3% of its GDP.

Caribbean beach [Pixabay].

▲ Caribbean beach [Pixabay].

article / Jokin de Carlos Sola

The natural wealth of Latin American countries contrasts with the precariousness of the economic status of a large part of their societies. Lands rich in oil, minerals and primary goods sometimes fail to feed all their citizens. One of the reasons for this deficiency is the frequency with which companies and leaders tend to evade taxes, driving capital away from their countries.

One of the reasons for the tendency to evade taxes is the large size of the Economics underground and the shortcomings of states in implementing tax systems. Another is the nearby presence of tax havens in the Caribbean, which have historically been linked to the UK. These territories with beneficial tax characteristics have attracted capital from the continent.

History

The history of tax evasion is a long one. Its relationship with Latin America and the British Caribbean archipelagos, however, has its origins in the fall of the British Empire.

From 1945 onwards, Britain gradually began to lose its colonial possessions around the world. The financial effect was clear: millions of pounds were lost or taken out of operations across the empire. To cope with this status and to be able to maintain their global financial power, the bankers in the City of London thought of creating fields of action outside the jurisdiction of the Bank of England, from where bankers from all over the world (especially Americans) could also operate in order to avoid their respective national regulations. A new opportunity then arose in the British overseas territories, some of which did not become independent, but maintained their links, albeit loose, with the United Kingdom. This was the case in the Caribbean.

In 1969 the Cayman Islands created the first banking secrecy legislation. It was the first overseas territory to become a tax haven. From offices established there, City banks built up networks of operations unregulated by the Bank of England and with little local oversight. Soon other Caribbean jurisdictions followed suit.

Tax havens

The main tax havens in the Caribbean are British Overseas Territories such as the Cayman Islands, the Virgin Islands and Montserrat, or some former British colonies that became independent, such as the Bahamas. These are islands with small populations and a small Economics . Many of the politicians and legislators in these places work for the British financial sector and ensure secrecy within their territories.

Unlike other locations that can also be considered tax havens, the British-influenced islands in the Caribbean offer a second level of secrecy in addition to the legal one: the trust. Most of those who hold assets in companies established in these territories do so through trusts. Under this system, the beneficiary holds his assets (shares, property, companies, etc.) in a trust which is administered by a trustee. These elements (trust, beneficiary, trustee, shell companies, etc.) are distributed in various Structures linked to different Caribbean jurisdictions. Thus, a trust may be established in one jurisdiction, but its beneficiaries may be in another, the trustee in a third, and the shell companies in a fourth. This is a subject of Structures that is almost impossible for governments to dismantle. This is why when overseas governments agree to share banking information, under pressure from Washington or Brussels, it is of little use because of the secrecy structure itself.

Impact in Latin America

Bank secrecy legislation emerged in Latin America with the goal aim of attracting legally obtained capital. However, during the 1970s and 1980s, this protection on data of current accounts also attracted capital obtained through illicit means, such as drug trafficking and corruption.

During those years, drug lords such as Pablo Escobar used the benefits of the Cayman Islands and other territories to hide their fortunes and properties. On the other hand, several Latin American dictatorships also used these mechanisms to hide the enrichment of their leaders through corruption or even drugs, as was the case with Panama's Manuel Noriega.

Over time, the international community has increased its pressure on tax havens. In recent years the authorities in the Cayman Islands and the Bahamas have made efforts to ensure that their secrecy Structures is not used to launder money for organised crime, but not all territories considered tax havens have done the same.

These opaque networks are used by a considerable part of Latin America's large fortunes. Twenty-seven per cent of Latin America's total private wealth is deposited in countries that offer favourable tax treatment, making it the region with the highest proportion of private capital in these places in the world, according to a 2017 study by the Boston Consulting Group ( agreement ). According to this consultancy firm, this diversion of private wealth is greater in Latin America than in the Middle East and Africa (23%), Eastern Europe (20%), Western Europe (7%), Asia-Pacific (6%) and the United States and Canada (1%). 

Tax havens are the destination of a part that is difficult to pinpoint of the total of 335 billion dollars subject to tax evasion or avoidance in the region in 2017, a figure that constituted 6.3% of Latin American GDP (4% lost in personal income tax and 2.3% in VAT), as specified in ECLAC's report Fiscal Panorama of Latin America and the Caribbean 2019. This UN economic commission for the region highlights that on average Latin American countries lose more than 50% of their income tax revenues.

 

 

The London connection

There have been various theories about the role played by London in relation to tax havens. These theories coincide in presenting a connection of interests between the opaque companies and the City of London, in a network of complicity in which even the Bank of England and the British government could have been involved.

The most important one was expressed by British author Nicholas Shaxson in the book Treasure Island. The thesis was later developed by the documentary film Spiders Web, produced by the Tax Justice Network, whose founder, John Christiansen, worked as advisor for the government of Jersey, which is a special jurisdiction.

The City of London has a separate administration, elected by the still-existing guilds, which represent the City's commercial and banking class . This allows financial operations in this area of the British capital to partially escape the control of the Bank of England and government regulations. A City that is attractive to foreign capital and prosperous is of great benefit to the UK's Economics , as its activity accounts for 2.4% of the country's GDP.

British sovereignty over the overseas territories that serve as tax havens sometimes leads to accusations that the UK is complicit with these financial networks. Downing Street responds that these are territories that operate with a great deal of autonomy, even though London sets the governor, controls foreign policy and has veto power over legislation passed in these places.

Moreover, it is true that the UK government has in the last decade supported greater international coordination to increase scrutiny of tax havens, forcing the authorities there to submit relevant tax information, although the structure of the trusts still works against transparency.

Correct the status

Latin America's problems with tax evasion may be more related to the fragility of its own tax institutions than to the presence of tax havens close to the American continent. At the same time, some tax havens have benefited from political instability and corruption in Latin America.

The effects of domestic capital flight to these places of special tax regimes are clearly negative for the countries of the region, depriving them of increased economic activity and revenue-raising possibilities, and hampering the state's ability to undertake the necessary improvement of public services.

It is therefore imperative that certain corrective policies are put in place. At the national policy level, mechanisms should be put in place to prevent tax evasion and avoidance. At the same time, at the international level, diplomatic initiatives should be shaped to put an end to the Structures of trusts. The OAS offers, in this sense, an important negotiating framework not only with certain overseas territories, but also with its own metropolises, since these, as is the case of the United Kingdom, are permanent observer members of the hemispheric organisation.

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