Shannon K. O'Neil

Latin America's Moment

O'Neil analyzes developments in Latin America and U.S. relations in the region.

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Showing posts for "Argentina"

The Anticorruption Boom and U.S. Foreign Policy

by Matthew Taylor
International Consortium of Investigative Journalists (ICIJ), Panama Papers, Mossack Fonseca, FIFA, anticorruption, corruption, beneficial ownership, UK Anti-Corruption Summit, Nicholas Shaxson, tax havens, Tax Justice Network, Daniel Kaufmann, Alexandra Gillies, Shruti Shah, Foreign Corrupt Practices Act, OECD Convention on Corruption British Prime Minister Cameron is joined by Jim Yong Kim, President of the World Bank Group, (left) Sarah Chayes, a senior associate in the Democracy and Rule of Law Program, (second left) US Secretary of State John Kerry, (third from left) and Nigerian President Muhammadu Buhari, (right), as he opens the international anti-corruption summit on May 12, 2016 in London, England (Reuters/Dan Kitwood).

April and May brought some of the most important movement on the anticorruption front of any two-month period in the past decade. Recapitulating briefly:

– In April, the International Consortium of Investigative Journalists (ICIJ) began release of the Panama Papers, roughly 11 million leaked documents from the Mossack Fonseca law firm detailing the creation of more than 15,000 shell companies and providing information on more than 200,000 offshore entities. The lists touched on a variety of presumably legal uses of offshore firms, but also sprayed egg on a number of prominent faces, including in Russia, Ukraine, China, the United Kingdom (UK), Spain, Chile, Argentina, Iceland, and within the International Federation of Association Football (FIFA), among others. A follow-up manifesto by John Doe, the whistleblower at the heart of the leak, noted the extensive use of offshore accounts as part of a system of “massive, pervasive corruption” in the global economy. If nothing else, the Panama Papers have introduced the concept of “beneficial ownership” to a broader public, and fomented a larger discussion of how the West enables corrupt practices through loose monitoring of offshoring and financial disclosure. Read more »

Macri’s Surprising Honeymoon

by Matthew Taylor
Mauricio Macri, Argentina, Cambiemos, pragmatic Argentina's President Mauricio Macri (L) and Jujuy's Province governor Gerardo Morales (back C) dance as they take part in a carnival celebration in the Argentine northern town of Purmamarca, February 6, 2016 (Argentine Presidency/Reuters).

By all accounts, Mauricio Macri has had a remarkable honeymoon since he was inaugurated December 10, quickly moving to revise Argentina’s economic policies, restructure its relations with the world, and tackle a variety of rule of law challenges, ranging from corruption to the drug trade. President Obama’s trip to Argentina last week was in many ways the capstone to Macri’s dynamic first hundred days in office. The visit signaled a generational shift in U.S. policy toward Latin America, seeking to repair some of the worst damage done by U.S. support of the military dictatorship that took office when Obama was a teenager, but Obama and his entourage of more than four hundred business representatives were even more convincing in their strong praise for the Macri administration’s new openness to foreign investors. Read more »

Argentina’s Congress Returns

by Shannon K. O'Neil
Argentina, bond payments, cerrojo law, coparticipaciones, currency controls, economic reforms, Enacom, energy subsidies, export taxes, federal transfers, INDEC, Judge Griesa, Kirchner, labor negotiations, pago soberano law, President Macri, Sergio Massa The Chamber of Deputies at the Argentine Congress is seen during a session in Buenos Aires, September 10, 2014 (Marcos Brindicci/Reuters).

During his first two months in office Argentine President Macri pushed through reforms to eliminate currency controls, cut export taxes, and remove energy subsidies. He also appointed two new judges to the Supreme Court and enhanced the court’s oversight of security surveillance, postponed promised changes to the legal system, shuffled responsibilities within the cabinet, modified a contentious media law, and annulled a Kirchner decree transferring federal funds to the provinces. All was done without Congress, which entered its three month summer recess on November 30 (before Macri’s inauguration). This will change March 1, as the legislature comes back into session. Read more »

The Political Salience of Latin Americans’ Perceptions of Corruption

by Matthew Taylor
Transparency International, Corruption Perceptions Index, Support Mission against Corruption and Impunity, MACCIH, International Commission Against Impunity, CICIG. corruption, impunity A demonstrator holds a scarf during a march to demand for the resignation of Honduran President Juan Orlando Hernandez in Tegucigalpa August 14, 2015. Thousands of protesters have been continuing demonstrations in Tegucigalpa, calling for the resignation of Hernandez over a $200 million corruption scandal at the Honduran Institute of Social Security (Jorge Cabrera/Reuters).

Once a year, policymakers and the press are forcibly reminded of the terrible costs of corruption. This year, it fell on January 27, when Transparency International’s Corruption Perceptions Index (CPI) was released, inciting the ritual gnashing of teeth and beating of chests about relative national corruption gains and losses. Read more »

Opportunities for U.S. Engagement in Latin America

by Shannon K. O'Neil
Senate Committee on Foreign Relations, Latin America, Pacific Alliance, Colombia's peace negotiations, Luis Almagro, Cuba, Mexico's judicial reforms, anticorruption, Global Magnitsky Act, rule of law, North America, Trans-Pacific Partnership, Central America Regional Security Initiative, International Commission Against Impunity in Guatemala, Alliance for Prosperity (Courtesy U.S. Senate Committee on Foreign Relations)

Last week, I had the privilege of testifying before the U.S. Senate Committee on Foreign Relations at a hearing titled “Political and Economic Developments in Latin America and Opportunities for U.S. Engagement.” Also joining me before the committee were Thomas McLarty, chairman of McLarty Associates, and Eric Farnsworth, vice president of Americas Society and Council of the Americas. Read more »

South America’s Shifting Diplomatic Landscape

by Matthew Taylor
rapprochement, Cuba, U.S.-Brazil relations, Dilma Rousseff, Colombia peace talks, Community of Latin American and Caribbean States, commodities boom, Mauricio Macri, Mercosur, Mauro Vieira, Susana Malcorra, pink tide countries, Democratic Unity Roundtable, Organization of American States, National Assembly, Nicolas Maduro, Unasur, BNDES, Banco do Brasil, Brazil-China Fund, Trans-Pacific Partnership, BRICS, Chinese meltdown Argentine Foreign Minister Susana Malcorra (L) and Brazil's Foreign Minister Mauro Viera speak before the Summit of Heads of State of MERCOSUR and Associated States and 49th Meeting of the Common Market Council in Luque, Paraguay, December 20, 2015 (Jorge Adorno/Reuters).

The past year has altered Latin America’s diplomatic panorama. Among the most significant changes were a U.S. policy turnaround that included U.S. rapprochement with Cuba, a reset in U.S.-Brazil relations cemented during President Dilma Rousseff’s June state visit to Washington, DC, and greater U.S. participation in the Colombian peace talks. In addition to these carefully strategized advances, a variety of far more contingent factors is converging in ways that are likely to shake up established regional alignments within South America. As the region prepares for the fourth Community of Latin American and Caribbean States (CELAC) summit at the end of January, the rightward shift of domestic politics in the region, the woeful state of Brazil’s Rousseff government, and the Pacific turn in trade negotiations are combining in ways that may create a new set of opportunities for regional relations, and will certainly jumble the status quo. Read more »

A Conversation With Mark Jones and Kellie Meiman Hock

by Shannon K. O'Neil
Argentina, President Mauricio Macri Argentina's President Mauricio Macri holds the symbolic leader's staff next to Vice-President Gabriela Michetti (L) and Senate provisional president Federico Pinedo (R) at Casa Rosada Presidential Palace in Buenos Aires, Argentina, December 10, 2015 (Marcos Brindicci/Reuters).

This post features Mark P. Jones, the James A. Baker III Institute for Public Policy’s political science fellow and Joseph D. Jamail Chair in Latin America Studies at Rice University, and Kellie Meiman Hock, managing partner and director of the Brazil and Southern Cone and trade practices at McLarty Associates. Latin America’s Moment recently sat down with Jones and Meiman Hock to discuss Argentina’s outlook. Read more »

New Argentine President Macri’s Economic Challenges

by Shannon K. O'Neil
Mauricio Macri, Argentina Mauricio Macri, presidential candidate of the Cambiemos (Let's Change) coalition, with his daughter Antonia on his shoulders, and his wife Juliana Awada wave to supporters after the presidential election in Buenos Aires, Argentina, November 22, 2015. Conservative opposition candidate Macri comfortably won Argentina's presidential election on Sunday after promising business-friendly reforms to spur investment in the struggling economy (Ivan Alvarado/ Reuters).

Mauricio Macri, mayor of Buenos Aires and leader of the Cambiemos coalition, won yesterday’s presidential run-off, becoming the first non-Peronist president in nearly fifteen years. From his start on December 10 he will face several severe economic challenges: Read more »

Latin America v. Citizens United

by Shannon K. O'Neil
corporate contributions, political corruption, transparency, Operation Carwash, campaign finance, Sheldon Adelson, super PACs, Brazil Supreme Court, Citizens United, Brazil's President Supreme Court's Ricardo Lewandowski, Brazil's President Dilma Rousseff, Brazil's Prosecutor-General Rodrigo Janot and Brazil's Justice Minister Jose Eduardo Cardozo sing the Brazilian national anthem during the ceremony to reappoint to the position of Prosecutor General of the Republic at the Presidential Palace in Brasilia, Brazil, September 17, 2015 (L to R) (Ueslei Marcelino/Reuters).

In a post originally published on ForeignPolicy.com, Shannon O’Neil explains what Brazil and the rest of Latin America can teach the United States about keeping unregulated donations out of elections. Read more »

Latin America’s Middle Class

by Shannon K. O'Neil
middle class, commodity boom, conditional cash transfers, private consumption A woman looks at washing machines in an electrical appliances store in Buenos Aires, Argentina June 22, 2015. On top of that came one of the biggest crises of President Cristina Fernandez de Kircher's presidency at the start of this year when a state prosecutor who accused her of criminal behavior was found dead. Yet voters' memories are short, say political analysts, and the success of the government's unorthodox measures to stabilize the economy and boost consumption is giving it a lift in popularity (Agustin Marcarian/Reuters).

The first decade of the 21st century was a good one for Latin America. A recent Pew Research Center report estimates that some 63 million individuals entered the middle class, measured as earning between ten and twenty dollars a day. Add in the 36 million more members of the upper-middle class, and 47 percent of those in South America—a near majority—are no longer poor. Mexico brought over 10 million people into its middle ranks during the decade, raising the combined share of the middle and upper classes to roughly 38 percent of the population. Read more »