President Obama is in Latin America this week. Far from a distraction from the tumult in the Middle East and the economic issues here at home, the trip provides a real opportunity for some creative work in both arenas.
This month marks the 50th anniversary of the “Alliance for Progress,” President John F. Kennedy’s plan to assist Latin America in its efforts to establish democratic governments, pursue more equitable economic and social planning, and pull its people out of poverty. Today, free and fair elections have been held in almost every country in the region. Forty million Latin Americans have risen out of poverty in the last 10 years, and sound macroeconomic and market-based policies implemented in most Latin American countries have led to high levels of growth in recent years. Many countries barely felt the effects of the recent financial crisis.
The region still has challenges. Cuba and now Venezuela are notable exceptions to the widespread march of democratic modernization. In many countries, economic opportunities are uneven and institutions are still weak. Despite these shortcomings, the Western Hemisphere is the most democratic and market-oriented set of countries in the world.
President Obama’s trip to Brazil, Chile and El Salvador is an opportunity to deepen our hemispheric partnerships and tackle today’s global issues. Increasing trade and investment opportunities should be of top priority. U.S. ratification of the free trade agreements signed with Colombia and Panama would enhance economic integration, while opening up export opportunities for Americans. For example, Colombia is already a top destination for many Georgia exports, including poultry products, paper products, electrical equipment and textiles, and eliminating tariffs would give Georgians a significant competitive advantage. Pushing these accords through the U.S. Congress this year, President Obama would demonstrate a strong commitment to the region, which has been turning increasingly to Asia for trade.
In fact, China has surpassed the United States as Brazil’s top trading partner. Brazilian commodities have helped fuel the double-digit growth in China, but there is also a growing concern in Brazil about China’s resistance to revaluing the Yuan. As in the United States, Brazilian manufacturers are losing business to Chinese competitors that benefit from an undervalued Chinese currency. President Obama should take this opportunity to push Brazil further in crafting a joint approach to the issue of currency controls and China.
President Obama should also seek ways to increase hemispheric cooperation on energy security and integration. Brazil has the second-largest proven oil reserves in South America after Venezuela and is among the top 10 sources of foreign oil to the United States. Brazil has emerged as a strong strategic energy player, becoming the world’s leading ethanol exporter. President Obama should reiterate U.S. commitment to the Energy and Climate Partnership of the Americas, which he launched in 2009 to strengthen inter-American collaboration on energy, infrastructure and climate change adaptation, and he should seek new ways to work with Brazil on these initiatives.
The Obama administration should look to Brazil, Chile and El Salvador as messengers in promoting democracy and human rights. These countries have all fought hard for their democracies, emerging out of brutal military dictatorships and civil war to do so. They are recent victors over oppressive autocratic regimes, and their transitions to democracy should be held up as examples in the Middle East, North Africa and elsewhere.
Regional security issues pertaining to illegal drugs, weapons and immigration are also important, and yes, drug-related violence threatens continued growth and development in the region. But the Obama administration has already moved beyond the old paradigm in which Latin America is primarily treated as a source of problems on drugs and security, and it is recognizing that our hemispheric partners can help drive economic growth and political stability.
Amanda Mattingly of Atlanta is a Truman National Security Fellow, term member at the Council on Foreign Relations and former U.S. State Department analyst.
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