[PINR] Nov. 8, 2004: Uruguay and Latin America

[nosmokes]

Power and Interest News Report (PINR)

http://www.pinr.com
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November 8, 2004:



"Uruguay Completes the Leftward Realignment of the Southern Cone"
Drafted by Dr. Michael A. Weinstein on November 8, 2004
http://www.pinr.com

The election on October 31 of Tabare Vazquez as president of Uruguay confirms a political realignment toward the left has been taking place in South America during the past several years. With the victory of the Broad Front -- a coalition of democratic socialists, communists and former Tupamaro urban guerrillas -- Vazquez completes the hold of the democratic left over the continent's "southern cone," which also includes Brazil, Paraguay, Chile and Argentina.

The major geostrategic consequence of Vazquez's election is the loss by the United States of its last willing partner in the projected Free Trade Area of the Americas (F.T.A.A.), which is meant by Washington to create a hemispheric trading bloc dominated by the U.S. Outgoing Uruguayan President Jorge Batlle was a staunch supporter of U.S. aims and had negotiated a bilateral trade pact with Washington before the defeat of his Colorado Party in the elections. That deal will now probably not go through, depriving Washington of its last opportunity to pursue its strategy of forging bilateral agreements as stepping stones to the F.T.A.A., which has met increasing resistance in the region as a comprehensive framework.
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- Realignment Toward the Left

Due to a persisting public debt overhang, domestic politics in the southern cone are determined in great part by each government's relations with international lenders, particularly the International Monetary Fund (I.M.F.). U.S. leverage in the region is primarily achieved through the requirements imposed on countries by the I.M.F. when they ask for debt extension or relief. Those requirements, which are often grouped under the rubric of "neoliberalism," include maintaining a strong currency, privatizing state industries, practicing fiscal austerity, deregulating foreign investment and easing trade restrictions.
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- Uruguay

The case of Uruguay illustrates in particularly clear and stark form the conditions that have generated a realignment toward the left in the southern cone. The country's nearly $12 billion debt is equal to its gross domestic product and Montevideo had to negotiate a debt swap with private creditors in 2003 that extended the maturity dates on half of its public obligations.
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- Conclusion

As is the case for all the left-of-center governments in the southern cone, the new administration in Montevideo will not face favorable conditions for realizing its welfare policies, which are essential for sustaining popular support. It will, however, join an emerging regional bloc that might be able to work cooperatively for economic development and integration, eventually fostering the desired social and economic results.
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complete article at http://www.pinr.com
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- The Power and Interest News Report (PINR) is an analysis-based publication that seeks to, as objectively as possible, provide insight into various conflicts, regions and points of interest around the globe. PINR approaches a subject based upon the powers and interests involved, leaving the moral judgments to the reader. This report may not be reproduced, reprinted or broadcast without the written permission of [e-mail]. All comments should be directed to [e-mail].

[Judi Lynn]

1. This is really interesting....

From the article:

Faced with the constraint of needing international financial support, Vazquez announced in advance of the election that he was committed to a "cautious and gradual" process of peaceful change that would include honoring an I.M.F. austerity program. He also committed to naming Danilo Astori, the most globalization-oriented member of his coalition, as economy and finance minister, easing the fears of international lenders and investors. In order to win popular support for his coalition, he promised, following Lula in Brazil, to institute an emergency food program and to stimulate the economy and restore diplomatic relations with Cuba. He pledged to intensify political and economic cooperation with Uruguay's southern cone neighbors, embracing the Mercosur alternative. Vazquez is unlikely to reverse resistance to privatization, which has been stalled after a referendum in which plans to privatize Uruguay's energy sector were rejected. A projected referendum on private ownership of the water utility is expected to have the same result.
(snip)

You know _Bush will dispise this man and his many supporters who care about their country. _Bush undoubtedly felt he controlled the hemisphere in all important ways already, with just some threatening and bullying left to do before everyone fell into line, eventually.

They want their own FREEDOM. Funny he doesn't get it. No one can be free if he doesn't benefit. Simple. If he's not in charge, they're not going to be free.

Good luck to all the longSUFFERING people who have been so helpless in the past. They were not organized then, and didn't have the painful, fiendish history about what nutso right-wing American pResidents could do, to educate them in the past.

[bemildred]

2. Well, they didn't meddle much either.

No oil maybe, or too close to Argentina, which is not our
buddy right now.

[bemildred]

3. Thanks for posting.

I was wondering about this, and information is hard to find.