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 "Chile"

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 »

Taking on Corruption in Latin America

by Shannon K. O'Neil
President Perez Molina, corruption, anti-corruption, influence peddling, embezzlement, CICIG Guatemala's former President Otto Perez Molina gestures while being escorted by police officers after a hearing at the Supreme Court of Justice in Guatemala City, September 3, 2015. Perez resigned his presidency and turned himself in to a court on Thursday to face charges in a corruption scandal that gutted his government and plunged the country into chaos days before a presidential election. Congress, in an emergency session, approved the resignation of Perez, a 64-year-old retired general who quit overnight. Vice President Alejandro Maldonado will fill out the remaining months of Perez' term (Jorge Dan Lopez/Reuters).

2015 is shaping up to be the anti-corruption year for Latin America. After resigning last week in the face of a growing corruption scandal, Guatemalan President Pérez Molina now faces trial and potentially jail. Investigations into government corruption have disrupted politics as usual in Brazil, Chile, and Mexico, while scandals continue to unfold in Argentina and Panama. Read more »

Review of State Building in Latin America

by Shannon K. O'Neil
Hillel Soifer, State Building in Latin America, state capacity Cambridge University Press, 2015

Hillel Soifer’s new book, State Building in Latin America, presents an interesting historical perspective on today’s current state capacity in Latin America, and why some countries are so much better able than others to not just control territory but also to deliver for their people. Read more »

Economic Clusters, Productivity, and Growth in Latin America

by Shannon K. O'Neil
Alfred Marshall, Michael Porter, Queretaro aerospace, Chile salmon, Start-Up Chile, Clusters Workers places salmon carcasses into a box to be sent to the world market at the Acuinova Chile salmonera company located some 1,625 km south of Santiago March 5, 2009 (Victor Ruiz Caballero/Reuters).

This post was co-authored by Gilberto Garcia, research associate for Latin America Studies at the Council on Foreign Relations.

How can countries boost productivity and economic competitiveness? Many economists and business leaders turn to economic clusters as an answer. Read more »

Foreign Direct Investment in Latin America

by Shannon K. O'Neil
Foreign Direct Investment, Latin America A Venezuelan worker assembles a motorcycle made of Chinese parts at the Empire Keeway factory in Charallave, outside Caracas December 14, 2011. Every time that Beijing turns the gear of their loans to Caracas, thousands of barrels of oil are shipped to Asia, get tons of goods to South America and create dozens of companies as part of an oiled mechanism that gives millions of dollars to the Government of Hugo Chavez and great benefits to the Eastern giant (Jorge Silva/Reuters).

Foreign direct investment (FDI) in Latin America fell in 2014, down 16 percent to $159 billion according to the latest ECLAC report. This outpaced global declines closer to 7 percent, and fell far behind other emerging markets, which saw investments rise 5 percent on average, and 15 percent in Asia. Read more »

China’s RMB Swap Lines with Latin America

by Shannon K. O'Neil
China, Argentina, swap lines Argentinian President Cristina Fernandez de Kirchner (L) and Chinese President Xi Jinping shake hands and face the media after signing documents during a ceremony at the Great Hall of the People in Beijing February 4, 2015 (Rolex Dela Pena/Reuters).

My colleagues Benn Steil and Dinah Walker recently published a great interactive on the spread of central bank currency swaps since the financial crisis. They find the United States provided developing nations with significant support through swap lines at the height of the financial crisis, but that China has been the most active extender of swap lines since 2009. China now has thirty-one swap agreements outstanding. Read more »

Latin America’s Middle-Income Trap

by Shannon K. O'Neil
Latin America, Middle-income trap A student writes down in her note book on the first day of school in Managua February 11, 2013. Around 1.6 million students are expected to start their new academic year, according to the Ministry of Education of Nicaragua (Oswaldo Rivas/Courtesy Reuters).

In 2014, GDP growth in the region slowed to less than 1 percent. Expectations for 2015 are just slightly better, with forecasters predicting growth of nearer to 2 percent. The downturn reflects external factors, including the European Union’s continuing problems, a slower China, and falling commodity prices. But it also results from domestic barriers that hold these nations back. Read more »