Shannon K. O'Neil

Latin America's Moment

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

Posts by Category

Showing posts for "Argentina"

Brazil’s Brewing Trade Debate

by Matthew Taylor
Chinese President Xi Jinping (R) shakes hands with Brazil's President Michel Temer during their meeting at the West lake State Guest House in Hangzhou, Zhejiang Province, China, September 2, 2016 (Minor Iwasaki/Reuters).

Brazil is in the midst of a grand debate on its future in the global economy. The debate has been happening behind the scenes, obfuscated by the fireworks of the Lava Jato corruption scandal, overshadowed by the flashier discussions of political reform and the Temer administration’s fiscal reforms, and hidden from view by explosive scandals, such as the recent meat-packing disaster that threatens one of Brazil’s key export markets. Read more »

Automation is Changing Latin America Too

by Shannon K. O'Neil
Robots assemble a car at Ford Motor Company factory in Camacari, in the northeastern Brazilian state of Bahia, November 14, 2007. Ford invested US $1.2 billion at the Camacari's factory and created a unique environment that consolidates production line with their direct suppliers' own facilities where the models are made for the Brazilian market and exported to other in development countries as well (Paulo Whitaker/Reuters).

While politicians have focused primarily on the effects of trade, automation is rapidly transforming the nature of work. A recent McKinsey report estimates that half of the labor done today can be turned over to machines, fundamentally changing the nature of manufacturing, retail, food services, and data processing among other sectors. They predict that China, India, the United States, and Japan will see the largest and fastest shifts as a combination of easy capital, aging populations, and falling productivity speeds the transition away from a human workforce. By their calculations, nearly 400 million Chinese and 235 million Indian workers compete with robots today. In the United States and Japan, some 60 percent of jobs are susceptible to change. Although positions may not disappear altogether, the work people do will change, as roughly a third of today’s repetitive tasks could be taken over by machines. Read more »

Why Argentina’s Macri Could Have a Rockier Year in 2017

by Shannon K. O'Neil
Argentine President Mauricio Macri gestures during a news conference at the Casa Rosada Presidential Palace in Buenos Aires, Argentina, January 17, 2017 (Reuters/Marcos Brindicci). Argentine President Mauricio Macri gestures during a news conference at the Casa Rosada Presidential Palace in Buenos Aires, Argentina, January 17, 2017 (Reuters/Marcos Brindicci).

Argentine President Mauricio Macri and his team can take a bow for their first year in office. Despite Macri’s outsider status and his party’s limited influence in the Congress, he in short order took on the country’s biggest economic distortions—unifying the exchange rate, resolving the fight with international creditors, cutting energy subsidies, reestablishing credible statistics, and eliminating a whole host of tariffs, quotas, and export licenses. Read more »

Latin America’s Wide-Open Electoral Season

by Matthew Taylor
July 28, 2016 (Reuters/Guadalupe Pardo). July 28, 2016 (Reuters/Guadalupe Pardo).

Half of the eighteen nations of Central and South America will hold presidential elections over the next two years.[1] The number of elections is not unprecedented, but the degree of uncertainty is, given the economic doldrums and political crises that have afflicted the region in recent years. As a consequence of the electoral outlook’s uncertainty, many of the coming year’s events in Latin America will need to be interpreted through the peculiar lens of candidates’ strategic calculations and parties’ maneuvering for advantage at the polls. Read more »

Bringing International Pressure To Bear on Nicolás Maduro

by Matthew Taylor
Venezuela's President Nicolas Maduro (2nd L) and former Spanish prime minister Jose Luis Rodriguez Zapatero (2nd R) speak next to Secretary General of the Union of South American Nations (UNASUR) Ernesto Samper (L) and former president of Dominican Republic Leonel Fernandez, during their meeting at Miraflores Palace in Caracas, Venezuela July 21, 2016 (Reuters/Carlos Garcia Rawlins).

[This post was co-authored with John Polga-Hecimovich*. It is the third of a series that begins with this post.]

The collapse in Venezuela has many potential costs: democratic regression in Latin America; destabilization of neighboring countries, including, potentially, the fragile peace process in Colombia; the possibility of a significant migrant crisis; rising violence, corruption, and criminality; and threats to hemispheric energy security. A mix of frustration with President Nicolás Maduro’s recent moves and apprehension about the potential outcomes of the crisis has led to a frantic search for alternatives, none of which seems particularly likely to be effective on its own. The paucity of alternatives suggests that the best the international community may be able to hope for is to isolate the regime, demonstrate to moderates within the regime that there are costs to sticking with Maduro, and make efforts to ameliorate the worst humanitarian consequences of the crisis. Read more »

Latin America’s Populist Hangover

by Shannon K. O'Neil
Alberto Fujimori, Andres Manuel Lopez Obrador, Argentina, Bolivia, Brazil, Carlos Menem, corruption, Cristina Fernandez de Kirchner, Ecuador, Evo Morales, Getulio Vargas, Guatemala, Honduras, Hugo Chavez, Jimmy Morales, Juan Orlando Hernandez, Juan Peron, Latin America, Luiz Inacio Lula da Silva, Mexico, Nestor Kirchner, Nicolas Maduro, Otto Perez-Molina, Pedro Pablo Kuczynski, Peru, populism, Rafael Correa, Venezuela Argentina's President Cristina Fernandez de Kirchner waves to supporters from a balcony after a ceremony at the Casa Rosada Presidential Palace in Buenos Aires on May 4, 2015 (Reuters/Argentine Presidency).

In my piece published in the November/December 2016 issue of Foreign Affairs, I lay out the economic and political characteristics of populism, analyze why it is receding in Latin America today, and describe what a next wave might look like. I also argue that Latin America’s historical experience with populism provides some bracing warnings to other countries now flirting with such politics. You can read the first three paragraphs of the article below: Read more »

Interview With Jim Zirin: Current Events in Latin America

by Shannon K. O'Neil
Jim Zirin, Conversations in the Digital Age, United States, Mexico, Brazil, Colombia, Venezuela, U.S.-Mexico relations, peace deal, impeachment (Courtesy Jim Zirin)

Last month, I had the pleasure of joining Jim Zirin on “Conversations in the Digital Age” to discuss the U.S.-Mexico relationship, the presidential impeachment in Brazil, Colombia’s peace deal, Argentina’s return to global markets, and the turmoil in Venezuela. You can watch the interview here.

A Game of Inches: The Uncertain Fight Against Corruption in Latin America

by Matthew Taylor
3 out of 3, anticorruption, Car Wash investigation, Claudia Paz y Paz, corruption, International Commission Against Impunity in Guatemala (CICIG), Matthew Stephenson, Sérgio Moro A boy holds a sign which reads, "No more corruption", during a demonstration demanding the resignation of Guatemalan President Otto Perez Molina, in downtown Guatemala City, May 30, 2015 (Reuters/Jorge Dan Lopez).

Harvard’s inimitable Matthew Stephenson this week published a thought-provoking blog post comparing anticorruption efforts in Asia and Latin America. Crudely summarizing Stephenson’s argument, a few years ago many looked to Asia as the gold standard in anticorruption efforts, in part because of the success of independent and effective anticorruption agencies (ACAs) in the region. But recent news of political meddling with Hong Kong’s ACA, brazen kleptocracy in Malaysia’s state development fund, and efforts to water down reform in Indonesia all suggest that the pendulum is swinging in a less positive direction. By contrast, Stephenson is optimistic about the important gains made in recent years in Latin America, including by Guatemala’s International Commission Against Impunity (CICIG), Brazil’s Car Wash investigation, elections in Peru and Argentina that highlighted voter frustration with corruption, and Mexico’s “3 out of 3” reforms. Read more »

Corruption, Politics, and Corporate Transparency in Latin America

by Matthew Taylor
anticorruption, campaign spending limits, corporate donations, corporate transparency, corruption, electoral finance, illegal enrichment, influence peddling, Lava Jato, multilatinas, multinationals, Odebrecht, politics, transparency Gustavo de Hoyos (C), president of the Mexican Employers' Confederation (COPARMEX), holds a placard during a protest to demand senators to approve the original proposal of the National Anticorruption System, at the Angel of Independence monument in Mexico City, Mexico, June 16, 2016. The placard reads: "Businessmen demand to stop corruption. #SNA" (Reuters/Ginnette Riquelme).

It is Latin America’s anticorruption season. Deep beneath the waves of revulsion about scandal, graft, and the general filthiness of local politics has been a profound concern with democracy. In particular, there is a growing awareness that the dangerous liaisons between corruption and electoral finance threaten the stability and legitimacy of elected governments in the region. While there is plenty of good news about the impressive corruption busters who are shaking up settled patterns of corruption and impunity in the region, many of the underlying links between corporate transparency, corruption, and campaign finance remain deeply troubling and potentially destabilizing. Read more »

Argentina and Brazil Grow Together

by Shannon K. O'Neil
Argentina, Brazil, corruption, global supply chains, high expectations, Mauricio Macri, Michel Temer, reform, South America, stagnant growth, trade Hundreds of cars stand in the port of Rio de Janeiro, Brazil December 1, 2015 (Reuters/Ricardo Moraes).

In my piece published this week on Foreignaffairs.com I reflect on Argentina’s and Brazil’s current political and economic situations. I argue that while their current challenges are their own, a potential long-term solution to their problems comes from each other—namely working to build an integrated South American economic hub. You can read the first two paragraphs of the article below: Read more »