It’s Time to Respond to Latin America’s Shifting Winds

Last December’s elections in Venezuela and Argentina strongly suggest that the political winds in Latin America are shifting. In both countries, the authoritarian-populist model of governance championed by late Venezuelan President Hugo Chávez — defined by economic centralization, political polarization, and hostility to the United States — was routed at the polls. There are several reasons why: the collapsing price for oil has translated into plummeting revenues for massive social spending; the slowing growth of the Chinese economy has meant less demand for commodities and primary products; and, critically, epic economic mismanagement has made a hash of the first two.

It may be that lean times lay ahead for Latin producers and consumers. But it also presents excellent opportunities for badly needed course corrections towards market-friendly economic policies, pragmatism, and less confrontation.

The big question is whether we — the United States — are in a position to take advantage of the changing regional mood. For starters, we are in the final year of the Obama administration, and there is unlikely to be much energy for new diplomatic initiatives in the Western Hemisphere.  Frankly, the administration likely believes it has “checked the box” on its Latin America legacy with its controversial decision to normalize relations with Cuba. Beyond efforts to coax some new money out of Congress for the Colombian peace process, they pretty much see their work as done.

Secondly, we are in the middle of a rather unique presidential campaign, where populist voices from the left and right are enjoying an inordinate sway on the policy debate. As a result, issues such as immigration and free trade have become hot buttons — which, unfortunately, adversely affects U.S. policy towards Latin America.

After a rather moribund period in U.S.-Latin relations under the Obama administration, however, we shouldn’t have to wait for a new administration to catch up with the changing dynamics in our hemisphere. There is plenty the Obama administration can do in its final months to re-energize hemispheric relations.

For example, rather than ordering his Cabinet and sub-cabinet officials out to flog his narrow and likely futile Cuba initiative, President Obama should aim higher by launching an energized public diplomacy campaign to reach out to like-minded governments, civil society, and the private sector in the Americas to engage on a range of practical and pressing issues. These include fighting corruption; promoting political accountability and practical economic solutions for the region; and rallying solidarity with the region’s democrats who are struggling in many cases against abusive governments.

There is still time to identify ourselves with a constructive agenda for the Americas — building something that others want to be a part of — by stressing reforms that protect and promote economic freedom, incentivize entrepreneurship, reduce taxes and regulation on productive sectors, and empower job creators and workers.

On corruption, we can exercise our hemispheric leadership with our 40-year experience with the Foreign Anti-Corrupt Practices Act and a host of new data mining and counter-money laundering tools. We ought to re-invigorate the international anti-corruption agreements of the OAS and the OECD, and commit to increased sanctions for individual and national non-compliance.

We also need to restore democracy and human rights as pillars of U.S. policy, not afterthoughts. Luis Almagro, the new OAS Secretary General, has turned into a pleasant surprise, and deserves the strong backing of the United States and other democratic governments so that the OAS can reassert its role in identifying and responding to threats to democracy and human rights.

And, on the broader security questions in the region — the presence of transnational criminal organizations, drug traffickers, and gangs — we still, as a country, have not come to terms with the declining security situation in Central America that is a primary factor in pushing people to leave their homelands for the dangerous journeys north. That is to say, we will never be able to fully control our southern border unless we get serious about helping these countries deal with issues that are causing their citizens to flee

Unfortunately, there are still too many in Washington who regard any sort of engagement by Washington as unwanted intervention. But that view is as outdated as the Castro regime in Cuba that Obama is determined to try to coax into moderation. The region’s future instead belongs to the many more young, modern Latinos — many of whom are U.S.-educated — who embrace the challenges of globalization and see that constructive U.S. leadership can be mutually beneficial.

Commitments to democracy and human rights, far from being Washington impositions, are the product of regional solidarity, and are aspired to by all citizens in the hemisphere. The road ahead remains complex and challenging, but many free-market democrats in the region are eager to begin restoring prosperity, democracy, and security for their people. We just have to exercise the political will to re-join with them in their journey.

Photo Credit: FILIPPO MONTEFORTE / Staff