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 "Colombia"

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 »

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 »

Elections to Watch in 2015

by Shannon K. O'Neil
Latin America Elections 2015 Argentina's current president and presidential candidate Cristina Fernandez de Kirchner listens to Buenos Aires province Governor Daniel Scioli (L) during a visit to the Luchetti noodle factory in Buenos Aires, October 20, 2011. Argentine President Fernandez looks set to win easy re-election on Sunday after a dramatic comeback that has confounded critics of her unconventional economic policies and combative style. A center-leftist who has given the state a leading role in the economy, Fernandez has rebounded from low approval ratings and angry protests by farmers and middle-class voters that erupted early in her first term. Polls show she could win more than 50 percent of the vote on Sunday (Martin Acosta/Courtesy Reuters).

The region will hold just two presidential elections this year, choosing new leaders in Guatemala and Argentina. More prevalent will be congressional and local elections. Midterms in Mexico, Venezuela, and Colombia in particular may prove bellwethers for the direction of these three important regional economies. Read more »

Guest Post: Latin America, Energy Matrices, and the Future of Climate Change

by Guest Blogger for Shannon K. O'Neil
Latin America, Energy Matrices, Climate Change A Petrobras Oil platform is seen at Guabanara bay in Rio de Janeiro September 24, 2010. Brazilian state oil company Petrobras raised $70 billion on Thursday in the world's biggest share offering, giving the company the financial muscle it needs to tap vast offshore oil reserves (Bruno Domingos/Courtesy Reuters).

This is a guest post by Matthew Michaelides, an intern here at the Council on Foreign Relations who works with me in the Latin America program.

This week world leaders meet in Lima, Peru to discuss the framework for a new UN climate change agreement. The big issues for discussion include financing clean energy projects and implementing cap-and-trade policies, building on the release of a new report by the Intergovernmental Panel on Climate Change (IPCC) and a landmark climate change accord between the United States and China. 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 »

This Year’s Presidential Elections in Latin America

by Shannon K. O'Neil
Voters wait in line to cast their vote in a presidential election runoff at a polling station outside in San Salvador March 9, 2014 (Henry Romero/Courtesy Reuters). Voters wait in line to cast their vote in a presidential election runoff at a polling station outside in San Salvador March 9, 2014 (Henry Romero/Courtesy Reuters).

Earlier this week, Salvadorans headed to the polls to cast their ballots in a presidential runoff election, since on February 2 the candidates failed to reach the 50 percent threshold to avoid a second round. In the runoff’s lead up, Salvador Sánchez Cerén, a former guerrilla commander and the current vice president from the ruling party, looked poised for an easy win over his closest opponent Norman Quijano from the conservative Nationalist Republican Alliance (ARENA). But with the final ballot count separating the candidates by some 0.2 percent of the votes and with allegations of fraud, it seems that the protests and debates surrounding this election are far from over. Read more »

Foreign Direct Investment and Jobs in Latin America

by Shannon K. O'Neil
Employees work at an assembly line at a Ford manufacturing plant in Sao Bernardo do Campo June 14, 2012 (Paulo Whitaker/Courtesy Reuters). Employees work at an assembly line at a Ford manufacturing plant in Sao Bernardo do Campo June 14, 2012 (Paulo Whitaker/Courtesy Reuters).

In 2012 Latin America received its largest amount of foreign direct investment (FDI) to date: $170 billion or 12 percent of global flows. These flows went into a range of sectors from mining and petroleum production to high skilled and low skilled manufacturing to telecommunications and electricity. Read more »

Election Day Roundup

by Shannon K. O'Neil
People wait to vote at Good Shepherd Methodist Church during the U.S. presidential election in Kissimmee, Florida People wait to vote at Good Shepherd Methodist Church during the U.S. presidential election in Kissimmee, Florida (Scott Miller/Courtesy Reuters).

As Americans vote today, a record 23 million Latinos can head to the polls. Here is a roundup of the candidates’ stated views on immigration, regional security, and trade with Latin America—issues that are often of direct interest for this growing voter bloc, but also will more generally affect all Americans over the next four years. Read more »

Evolution of Latin America’s Economies

by Shannon K. O'Neil

I’ve been looking recently at the structural changes in many of Latin America’s economies (through the evolution of their exports). The different trajectories are quite striking, as you can see in the graphs below.

Out of Latin America’s biggest economies, Mexico has transformed the most. In the 1980s the manufacturing sector comprised just 10 percent of total exports; today it is over 75 percent. Mexico’s economic diversification and dynamism, especially in the automotive and electronic industries, have held oil at a steady 10-15 percent of exports for the last twenty years, even as oil prices have risen (though, in fairness, production has also declined). Read more »

U.S. Drug Policy’s Third Way: A Conversation with Gil Kerlikowske

by Shannon K. O'Neil
U.S. National Drug Control Policy Director Gil Kerlikowske addresses the media during an anti-drug addiction meeting in Mexico City (Stringer/Courtesy Reuters). U.S. National Drug Control Policy Director Gil Kerlikowske addresses the media during an anti-drug addiction meeting in Mexico City (Stringer/Courtesy Reuters).

Over the past year, public frustration in Latin America has been mounting toward the international drug control regime. Latin American leaders brought the drug policy debate to the forefront at the Summit of the Americas in Cartagena last April, where the thirty-four heads of state agreed to review and discuss all possible approaches (a process that is now underway). This week at the United Nations General Assembly, Guatemala, Colombia, and Mexico’s governments issued a joint declaration, outlining their recommendations for global drug policy and specifically asking the United Nations to “exercise its leadership and conduct deep reflection to analyze all available options.” Read more »