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"

Argentina Defaults

by Shannon K. O'Neil
A woman walks past a graffiti that reads "No to the debt payment" in Buenos Aires, July 28, 2014. Time is running out for Argentina to pay "holdout" investors
suing Latin America's No. 3 economy for full payment on their bonds, or reach a deal that buys more time to avert a default (Marcos Brindicci/Courtesy Reuters). A woman walks past a graffiti that reads "No to the debt payment" in Buenos Aires, July 28, 2014. Time is running out for Argentina to pay "holdout" investors suing Latin America's No. 3 economy for full payment on their bonds, or reach a deal that buys more time to avert a default (Marcos Brindicci/Courtesy Reuters).

Two days ago, Argentina failed to come to an agreement with its holdout creditors and defaulted for the second time in thirteen years. In this piece for Foreign Policy, I explain why this outcome is not so surprising. You can read the beginning of the piece below:  Read more »

Foreign Direct Investment in Latin America Holds Steady in 2013

by Shannon K. O'Neil
Robots weld cars at the Ford Motor Company's Sao Bernardo do Campo facility in Sao Bernardo do Campo, June 14, 2012 (Paulo Whitaker/Courtesy Reuters). Robots weld cars at the Ford Motor Company's Sao Bernardo do Campo facility in Sao Bernardo do Campo, June 14, 2012 (Paulo Whitaker/Courtesy Reuters).

In 2013, foreign direct investment (FDI) in Latin America reached $185 billion according to the latest ECLAC report, continuing the slight upward trend of the last three years. Brazil maintained its number one position as the largest FDI destination, raking in $64 billion (over one third of all regional FDI). Mexico came in second, with some $38 billion (boosted by the $13 billion purchase of the rest of Modelo by Belgian based Anheuser-Busch InBev, a company run by Brazilians). Mexico’s Pacific Alliance partners—Chile, Colombia, Peru—also had a fruitful year, with a combined $47 billion in investment. And despite its economic woes, Argentina garnered $9 billion. Read more »

Kirchners’ New Economic Populism

by Shannon K. O'Neil

Argentina is known for its populists leaders, as well as spectacular economic booms and busts. Yet looking at the economic data of the last fifty years, successive governments have, perhaps somewhat surprisingly, run fairly traditional countercyclical public policies. Government spending generally increased during downturns and slowed during spurts of economic growth. As you can see in the graph below, this trend was more noticeable in the 1960s and 1970s, but continued (if somewhat lessened) throughout the 1990s and early 2000s. Read more »

Latin America: Community Building Across Borders

by Shannon K. O'Neil
Shadows on a slum wall are cast by Nicaraguan immigrants to Costa Rica during a prayer session in the neighborhood of Triangulo de la Solidaridad Shadows on a slum wall are cast by Nicaraguan immigrants to Costa Rica during a prayer session in the neighborhood of Triangulo de la Solidaridad (Juan Carlos Ulate/Courtesy Reuters).

Alongside the tentative formal efforts at economic and political integration, people are also increasingly bringing the region together. A recent uptick in intra-regional movement—through travel, study, and immigration—has allowed Latin Americans to get to know each other better, and in the process bind together both their communities and their economies. Read more »

Latin America: Trading and Investing Together

by Shannon K. O'Neil
Container trucks stand in line as they are stopped on border between El Salvador and Honduras Container trucks stand in line as they are stopped on border between El Salvador and Honduras (Eliana Aponte/Courtesy Reuters).

Economic ties lead Latin America’s integration efforts. Promising some of the greatest concrete benefits—larger markets, improved livelihoods, and enhanced global economic power—leaders and communities alike have tried to integrate the region through three main means: trade, infrastructure, and investment. Read more »

Latin American Integration: Two Hundred Years of Efforts

by Shannon K. O'Neil
A man walks past a banner reading 'Capital of integration' in Caracas A man walks past a banner reading 'Capital of integration' in Caracas (Stringer/Courtesy Reuters).

Latin American integration efforts have been a continuous fixture throughout much of the last century, but in recent years there has been a flurry of new initiatives, with leaders re-emphasizing regional ties. The increasing number of high-profile presidential and ministerial summits have brought renewed promises and commitments to deepen regional political, economic, social, and developmental cooperation, and have spurred the creation of new political and economic bodies tasked with uniting the region. Read more »

Foreign Direct Investment in Latin America Hit Record Highs in 2011

by Shannon K. O'Neil
Employees work at the assembly line of Positivo Computers, Brazil's largest computer producer, in Curitiba (Cesar Ferrari/Courtesy Reuters). Employees work at the assembly line of Positivo Computers, Brazil's largest computer producer, in Curitiba (Cesar Ferrari/Courtesy Reuters).

Last year foreign direct investment (FDI) in Latin America continued its surge, topping $150 billion, an all time high for the region. According to the Economic Commission for Latin America and the Caribbean’s report “Foreign Direct Investment in Latin America and the Caribbean,” the inflows climbed 31 percent—the most of any region and three times Asia’s growth rate—and now represent just over 10 percent of total global investment (breaking into the double digits for the first time as well). Read more »

Violence and Insecurity in Latin America: New Survey Findings

by Shannon K. O'Neil
People in a local bus service travel past a crime scene, where three men were shot dead, in Monterrey (Stringer/Courtesy Reuters). People in a local bus service travel past a crime scene, where three men were shot dead, in Monterrey (Stringer/Courtesy Reuters).

Though specific countries usually capture the headlines for their bloodiness—Mexico, Guatemala, Honduras, and often Colombia—security problems are widespread throughout Latin America. For the region which holds the unfortunate distinction of being the world’s most violent, a new Latinobarómetro report looks at the recent trends, and through survey data,  tries to tease out how this affects perceptions, people, and, more broadly, democracy. Read more »

Latin America’s Economic Outlook

by Shannon K. O'Neil
Source: The 2012 IMF Economic Outlook Report for the Western Hemisphere Source: The 2012 IMF Economic Outlook Report for the Western Hemisphere

The recent IMF economic outlook report entitled, “The Western Hemisphere: Rebuilding Strength and Flexibility,” is overall quite bullish on the region. Fueled by favorable commodity prices and plentiful international credit, it lauds (as much as the IMF does) the steady growth of the past decade. Perhaps as important for the IMF, many Latin American governments have used rising revenues in economically sound ways. The region as a whole has turned deficits to surpluses, and lowered debt to GDP levels by some 15 percent. Many countries invested in targeted social programs, helping reduce regional poverty levels from 44 percent in 2002 to 33 percent in 2008. Read more »

Why the Summit of the Americas Matters

by Shannon K. O'Neil
Colombian policemen stand in front of the Centro de Convenciones in Cartagena Colombian policemen stand in front of the Centro de Convenciones in Cartagena (Jose Gomez/Courtesy Reuters).

The sixth Summit of the Americas on April 14-15 is part of an intense spring of bilateral and regional interactions in the hemisphere. It will bring together thirty-three heads of state from nearly every member of the Organization of American States (OAS) in Cartegena, Colombia, to discuss regional issues ranging from expanding economic ties to turning back a surge in criminal activity. Read more »