The Obama Latin American Program:Expensive, Paternal, and Unrealistic

latin american foreign policySecretary of State Condoleezza Rice is in Mexico today discussing many issues with the Mexican government including border security, drug enforcement, and Latin American relations as a whole. For its part, Mexico seems most concerned about getting the money finally for the Merida Initiative which promises helicopters, special sensors, and police training paid for by billions of American dollars.

The general feeling of Latin America these days toward Washington seems to be gradually sinking. Leaders in Brazil, Venezuela, Chile, and Argentina are reeling after being hit hard by the severe decline of their countries investments in Wall Street. Most of the other countries having nationalized their industries had lesser stakes in the stock market.

Most Americans are familiar with the daily rantings of Venezuelan leader, Hugo Chavez, but increasingly almost every leader of a Latin American country is attempting to bolster his domestic political position by espousing a diplomatic distance from Washington and declaring that the United States must have less influence in the region.

Meanwhile trade with Asian nations, especially China and South Korea, is on the increase. Although American exports of technology and imports of agricultural products as well as oil remain as major portions of bilateral trade there is no doubt that Latin America is looking to expanding trade with China with more fervor than with the United States. Latin American politicians may find that dealing with China which only talks trade and does not talk about human rights is easier than dealing with the meddlesome United States. All to often in the past, the United States has had to play the game of giving some type of foreign aid to corrupt Latin American governments as an “incentive” to enter to talks about reform.

Which brings up the point:What will be the Obama foreign policy plan for dealing with Latin America? The official Obama plan called “Partnership with the Americas” recommends:

  • Doubling foreign aid to Latin America by $50 billion in 2012.

  • Another $50 billion will be used to fight infectious diseases including HIV and malaria.

  • Billions of dollars now owed to the United States by the poorer Latin American countries would be “written off”.

  • To fight illiteracy a $2 billion fund will be started.

  • An independent government agency will be started to loan money for small business start ups in Latin America and to build business schools.

  • To fight the drug cartels the $700 million a year budget will need to be increased to an unspecified amount.

  • Increase the size of the Peace Corps and send thousands to Latin America Mandate clean energy, labor, anti-corruption and environmental standards in revised trade agreements with Latin American countries.

Much of this proposal is noble in the ideal world but realistically is unattainable. Latin America suffers from backward, corrupt and greedy government leaders who are historically the most manipulative in their negotiations. They are using “meddling” by the United States as an excuse for their own failures. The United States will never be able to pay a high enough price in aid to cause real reform in Latin America.

Instead of sending in thousands of Peace Corps workers, in my opinion, it would be better to use faith based organizations and multinational nongovernmental entities. Opposition leaders will identify Peace Corps workers as representatives of a singular foreign government and target them.

From a Latin American point of view having some trade competition between Asia and the United States might increase the value of their exports and improve their economies. However, that improvement will only happen if real government reform does take place. The United States should take notes of the engagement mechanism that was used by the Nixon administration to begin trade with China.

Accountability of use of our financial assistance has always been a difficult issue. Even discussing this issue is very offensive to many Latin American leaders who really just want a free hand out with no strings attached. Therefore, I propose that instead of one sided aid we should really in the future enter in trade deals where each party has its specific interests meet. Free trade is a better instrument of foreign policy than giving away a blank checkbook.

We must negotiate security and law enforcement measures under the concept of mutual benefit. At the same time we must raise the level of threat we consider the drug cartels to the same as that of other terrorists. Given the amount of manpower, weaponry, and propensity for violence they are now propagating we should seriously consider using our military assets against them instead of just the law enforcement model.

Recently illegal immigrants have begun returning home because employment availability is much less due to enforcement and the economic downturn. The ill advised border fence will do nothing to stop illegal aliens, drug cartels or terrorists. Instead of wasting the estimated $70 billion dollars necessary to complete the fence as it is currently planned, this money should be used to increase border surveillance, technology, and patrols. We must find incentives other than payoffs to get the Mexican government to better manage its own borders.

We must have patience and firmness in dealing with Latin America. A careful balance must be established to maintain being a good neighbor without being too “interventional” for this will only result in further alienation between the parties. One sided financial assistance by its very nature requires some form of accountability which damages the good neighbor relationship from the outset. Contrarily, mutually beneficial trade constructed under terms agreeable to both parties is not as paternal an entity. In addition, we cannot afford to waste billions of dollars in foreign aid programs that are likely to be at best misconstrued as invasive or at worst detoured nefariously for misdeeds.
Tony Magaña grew up in McAllen Texas, attended Texas A&M University, holds a doctorate from Harvard University. The co-founder of Contempo Magazine has participated in Valley business for over 20 years.He is a member of the National Association of Hispanic Journalists.
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