How Venezuela came to claim the region’s highest murder rate.
Mention violence in Latin America today and most people think of Mexico. But if you want to talk about murder, the region’s hot spot is somewhere else entirely: Venezuela. After a decade under President Hugo Chávez, Venezuela’s homicide rate has increased by about 140 percent, making Venezuela one of the most violent countries in the world. Even in the context of Latin America, where homicide rates hover at three times the global average, Venezuela now holds top rank — by far the highest in South America, with a violent death rate of 48 per 100,000 — more than twice that of Mexico. These murders occur mostly at night and spike every two weeks around payday. Young people are increasingly the victims, three times more likely to be killed today than 10 years ago.
Not surprisingly, Venezuelans see crime and public safety as the No. 1 challenge for their country. According to Latinobarometer, a well-regarded regional polling agency, Venezuela is the only Latin American country where crime is cited as both the most important national and personal issue. The violence was a major issue in last November’s regional elections, with both Chavistas and opposition leaders blaming their opponents for the scourge. Perhaps unsure who was culpable, voters split their allegiance and the vote was a draw.
See the entire article at Foreign Policy Passport here.
This Sunday Venezuelan voters will go to the polls to decide whether elected officials, including President Hugo Chávez, can run for re-election indefinitely. Chávez has thrown the full force of the government behind the yes vote, while the opposition and student movement have brought hundreds of thousands into the streets for the “no.” Many inside Venezuela and abroad believe this referendum could be the last straw, breaking Venezuela’s fragile and imperfect democracy if passed. Overlooked by optimists and pessimists alike is the real decider of Venezuela’s political future – the economy.
The referendum does matter. Ten years of single strong executive rule have taken a toll on the country’s democratic institutions. The referendum’s passage would open the possibility for Chávez to run again in 2012, and indeed to remain in office for decades to come. But, Chávez would still have to win reelection – and that may now prove to be the most difficult part.
High oil prices granted Chávez an extraordinary political honeymoon. Multi-year double digit economic growth, historically low unemployment, and prolific public spending on social programs fueled the adoration of previously excluded sectors of society. Skyrocketing consumption and the halving of poverty levels won the approval of the middle class. In fact, according to the pollster Latinobarometer, Venezuelans are among the most satisfied with their democracy in the region.
With the formation of ALBA, Unasur, IIRSA, and many others, Latin American nations are pushing towards a new era of economic, political, and social integration. But how innovative are these efforts really? Will they differ from the failed attempts of the past? I recently wrote the following article for World Politics Review on the promise and perils of the region’s integration.
The Promise and Perils of South American Integration
Shannon O’Neil
January 12, 2009
World Politics Review
In the 21st century so far, regional integration has been one of the most notable elements of South American foreign relations. Picking up speed in recent years, the continent’s heads of state have enthusiastically met in numerous summits, promising increased political, economic, social, and development cooperation. Across the spectrum, governments are expanding current integration frameworks and entering into new agreements. Expectations are no less grand. As Brazil’s President Luis Inacio “Lula” da Silva recently stated, “South America, united, will move the board game of power in the world, not for its own benefit, but for everyone’s.” Read the entire article here.
Sunday’s regional elections in Venezuela saw a record turnout of 65% of eligible voters. This is high both by Venezuela’s standards (45% of voters came out for the 2004 regional elections) and by global standards (about 62% of voters came out during the U.S. presidential election this year). In the short-term, President Hugo Chavez and the opposition ended in a draw, as the opposition gained control over the mayorship of Caracas and 4 states (including the 2 most populous), but the PSUV (Chavez’s party) maintained control of 17 states. In the long-term, though, this is an important victory for the opposition. Even though they won only 5 of the 22 territories, they will govern nearly half of Venezuela’s population. This grants the opposition a better platform to share their concerns with the general population and to build a political base for future elections. It also means Chavez will also have to tolerate – and even cooperate with – opposition regional governments in order to keep the trappings of democracy. For a few more thoughts on the subject, I talked to PBS’s World Focus last night:
This opinion piece I wrote for the Washington Post lays out many of the findings and recommendations of the Council on Foreign Relations sponsored Independent Task Force on U.S.-Latin America Relations, for which I served as Director.
The report has gotten some great feedback so far, and I hope will help jumpstart a new conversation within the next Administration and Congress with regard to the region.
The Task Force report co-chairs, Charlene Barshefsky and General James T. Hill, published an editorial yesterday in the Miami Herald. It lays out the main themes of the report, in particular the call to recognize that U.S.-Latin American relations is increasingly about U.S. domestic policy.
After taking a 3 plus month maternity hiatus, I am back and will be posting regularly again.
To kick things off, here is a link to a new Independent Task Force report from the Council on Foreign Relations, titled U.S.-Latin America Relations: A New Direction for a New Reality. The Council brought together 19 individuals of various interest and expertise under the chairmanship of Charlene Barshefsky and General James T. Hill. As director of the project, I can attest to the long hours of intense and at times spirited discussion among its members.
The group decided that U.S. policy should focus on four critical areas: poverty and inequality, public security, migration, and energy integration. The main recommendations are the following:
Poverty and Inequality:
U.S. should expand targeted assistance for poverty alleviation and institution building by fully funding the Millennium Challenge Account and developing new initiatives to reach the poor regions of the larger middle income countries. These programs should reflect the priorities of Latin American governments and also involve restructuring and integrating the programs of various U.S. government bureaucracies and multilateral institutions.
Alongside aid, the United States should approve pending free trade agreements with Colombia and Panama and extend trade preferences to Bolivia and Ecuador to encourage productive relations with these complex countries.
Public Security:
The United States should assist Latin American countries in strengthening their law enforcement and judicial systems. Only through strong institutions can criminal networks and drug traffickers be controlled in the long term. The United States should also focus more on the demand side of the drug equation, working closely with other large drug consuming nations, specifically those in the European Union.
Migration:
Push through a comprehensive reform in 2009. This must deal with border security, employer responsibility, some sort of regularization of the 12 million unauthorized workers here today, and a flexible guest worker program to deal with future labor demands.
Energy Security:
The United States should provide FDI incentives to help build energy infrastructure i the region. It should also sponsor regional and subregional working groups to forward best practices.
Finally, the task force touches briefly on 4 bilateral relations. It recommends deepening U.S. relations with Brazil to promote global trade negotiations and manage energy demands; strengthening cooperation with Mexico to stop narcotics trafficking, increase U.S. investment in energy production, and reform immigration policies; using multilateral institutions to address foreign and domestic policies of Venezuela; and opening informal and formal channels of communication with Cuba, with the eventual goal of lifting the embargo.
This Sunday Venezuelans will vote on a referendum comprising 69 changes to the existing Constitution. Many of these push the country further toward Chavez’s 21st Century Socialism, expanding pensions for the elderly and reducing the workday to six hours. Others strengthen the power of the President and Chavez in particular, extending the Presidential term and allowing unlimited reelection, giving the President the power to appoint many more government officials, and limiting some civil liberties during states of emergency.
The polls show varying results, with some proclaiming a majority in support of the changes and others showing a majority against the proposals. What will really matter is turnout. Here, the “yes” vote has an advantage, since the government is already canvassing the media and will undoubtedly use state resources to encourage supporters to get to the polls. This mobilization will matter.
In addition, Chavez has played again the international anti-imperialist card in the lead up to the referendum. Chavez’s recent international outbursts, first with the King of Spain and more recently with Colombian President Uribe, deflect from the growing domestic discontent and confusion. His evocation of former Spanish Prime Minister Jose Maria Aznar, who along with President George W. Bush tacitly supported the 2002 coup attempt against his government, seems designed to rally supporters before the upcoming vote, implicitly reminding voters of the turmoil brought on by political polarization. If that isn’t enough, the violence in recent weeks toward the opposition may scare some “no” voters away on Sunday.
Finally, the opposition has not been able to rally around one position, “ unlike more successful “no” campaigns, such as that leading up to Chile’s 1988 referendum. Some, notably those loyal to the old Accion Democratica political party are calling for a boycott. Others, including former Presidential candidate Manuel Rosales and his followers, are rallying for the no vote. And few seemed to have reached out to Chavez’s former defense minister, General Raul Isaias Baduel, who has criticized the proposals as effectively realizing a constitutional “coup.”
Whether the opposition can galvanize the uneasiness with these reform proposals, which encompasses not just the traditional opposition but student movements and many moderate Chavez supporters, will be answered on Sunday.
The one area of real triumph for market-oriented reforms in Latin America was inflation. Unlike the uneven record on poverty, inequality, and economic volatility, structural adjustment and austerity programs of the early 1990s ended high and hyper inflation. These programs brought the Latin American average from 235% per year in the early 1990s to less than 8% by the turn of the century. Low and steady inflation has been a crucial element for attracting both foreign and domestic investment, increasing economic production, and encouraging the economic growth of the last several years.
But heterdox economic policies – reminiscent of Sarney’s Brazil, Alfonsin’s Argentina, and Garcia’s Peru (the first time around) – have reemerged. In both Argentina and Venezuela, the Kirchner and Chavez governments are using wage and price controls on basic goods as key parts of economic policy. Venezuela has gone a step further to reintroduce public control and management of “key” industries, including telecommunications, oil, and now perhaps steel and the banking sector. These policies are bringing back worries of inflation and leading to shortages in basic goods.
Venezuela’s inflation for 2006 topped 17%, the highest in Latin America. Most expect it to surpass 20% this year. Argentina too has seen increasing inflation, from a negative rate in the late 1990s to 10% last year. As worrisome, Kirchner fired the head of the national statistics agency, INDEC, briefly replacing her with a more malleable political appointee until public clamor forced the promotion of a INDEC senior employee.
Shortages in these economies are as important, and hamper both consumer-led and manufacturing-led growth. A recent Wall Street journal article argues that Chavez’s threat to nationalize the steel and banking industries has as much to do with the issue of shortages as with nationalism. News articles, as well as personal conversations, show that shortages and economic bottlenecks are again appearing in Argentina. These mismatches are hampering growth, not to mention the quality of life of individuals within the country.
Poverty, inequality, and equal opportunity are key issues for the future of Latin American nations. Government programs to directly improve the health care, education, and resources of the poor are important and laudable. But, these governments should not overlook the dire effects of inflation on poverty and inequality. Inflation hits the poor the hardest. They are the ones least likely to receive compensatory pay raises, and are those unable to hedge their savings in indexed accounts or abroad. High inflation will wipe out any benefits of direct assistance programs, leaving individuals certainly no better off and most likely in a much worse situation. This means that as governments are designing programs for the poor, they need to include measures to keep inflation low, be that independent monetary policy, controlled deficits, and better financial regulation. Only with this combination will governments be able to truly help those at the bottom of the pyramid.
Mexico: Countering Drug Violence Three weeks ago, Reynosa, Mexico–just across the Rio Grande from McAllen, Texas–exploded in violence. The Zetas and the Gulf cartels, once allies, began what may become a fight to the death. But what happened some eight hundred miles to the west on Saturday in Ciudad Juarez, when three U.S. consulate workers–two of them U.S. citizens–were killed in their cars in broad daylight wasn’t likely masterminded by drug cartel leaders.
Brazil as an Emerging Power: The View from the United States The United States has always seen Brazil as a significant regional powerhouse, but its perceived importance has risen in the last decade. Due to Brazil’s economic strength, its hemispheric leadership, and its growing geostrategic role through multilateral international forums, it has become a vital player in both regional and global politics across numerous dimensions. While US recognition of Brazil’s political and economic emergence brought the question of how Washington should manage relations with Brasilia to the fore, the ability to translate this new awareness into concrete bilateral policies and partnerships remains difficult. Whether the US and Brazil will be willing and able to form a ‘special relationship’ remains unclear.