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Begin New Search Political Geography Latin America Content Type Policy Brief Publication Year within 3 Years

11. The Impact of Populist Executive on the Inflow of Foreign Direct Investment in Latin America

Author:
Seungho Lee
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Populist forces have been resilient in Latin America and continue to cause instability and uncertainty across the region. Populist figures in the region first rose to prominence during the period of import substitution industrialization in the 1930s, capitalizing on the growing demands for mass politics and better social benefits from the rapidly expanding urban working class. Populism, which had been rampant in Latin America for more than 30 years since then, seemed to fade into obscurity with military regimes which have dominated regional politics in the 1960s and 1970s. However, after a series of democratic transitions, Latin American democracies witnessed yet another wave of populism. A notable number of candidates with a populist discourse have achieved victories in presidential elections in the 1980s and 1990s. With the wave of democratization and the accumulation of public dissatisfaction due to a series of economic crises, some so-called neopopulists took power in a number of Latin American countries. They attracted voters by combining neoliberal economic policies with the typical “us-versus-them” discourse, demonstrating that any economic ideology can be linked to populist ideas. The new millennium witnessed another tide of populist presidents across the region. While a rapid transition to neoliberal policies led to various socioeconomic problems, traditional parties and politicians could not respond effectively to the emerging problems. This time around, left-wing populist figures dominated the region’s political landscapes, combining populist ideas with so-called 21st-century socialism. While the era of radical left-wing populists came to an end, new breeds of populists appeared one after another and were elected to office in the 2010s. Not many expect that populist executives will cease to exist across the region in the near future. Social and economic inequality is worsening in the aftermath of COVID-19, and the public distrust of established party politics and existing democratic institutions is growing more than ever. All in all, there is fertile ground for populist forces to spread even more, who claim that they are the only ones who can eliminate the "incompetent and corrupt" establishment and truly represent the "virtuous" people. Against this backdrop, there is a growing need to improve our understanding of the characteristics of populist governments that have repeatedly emerged in the region. Among many channels through which populist rule influences Latin American countries, Lee et al. (2022) dedicate one of their chapters to analyzing the impact of populist rule on the inflow of foreign direct investment, a variable of much importance in Latin American economies.
Topic:
Foreign Direct Investment, Populism, and Instability
Political Geography:
Latin America

12. A post-Western global order in the making? Foreign policy goals of India, Turkey, Brazil and South Africa

Author:
Sinikukka Saari, Toni Alaranta, Bart Gaens, Katariina Mustasilta, and Lauri Tahtinen
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
India, Turkey, Brazil and South Africa are striving for a more multipolar, post-Western world order in which they would not be seen merely as auxiliary powers to the bigger players, but as independent great powers. For them, a key foreign policy goal is to transform global governance institutions. They all call for a permanent seat for their country on the UN Security Council. To achieve that, the states need backing from more than the Western states – and this logically strengthens the multi-aligned logic of their foreign policies. India, Turkey, Brazil and South Africa see Russia’s war of aggression in Ukraine and the Western countermeasures from their own perspective. They describe Russia’s invasion as a violation of international law, but see the war primarily as a Western concern, not theirs. Although these states are critical towards the West, they are not anti-Western and they all value multilateral institutions; their foreign policy goals and features offer opportunities for the EU to engage with them, but that needs to happen on a more equal footing than what has traditionally been the case.
Topic:
Foreign Policy, UN Security Council, Multipolarity, International Order, and Russia-Ukraine War
Political Geography:
Africa, Turkey, India, Asia, Brazil, and Latin America

13. Mexico’s domestic decay: Implications for the United States and Europe

Author:
Lauri Tahtinen
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
President Andrés Manuel López Obrador (AMLO) has challenged Mexico’s democratic institutions, including the electoral commission INE, and relies on the military to run sectors of the economy and to provide internal security. Recognizing the continuing strategic importance of its southern neighbor, the United States is attempting to “friend-shore” American industry to Mexico despite trade disputes. Mexico’s economic convergence with the US is giving way to ideological divergence. In the past year, Mexico has called NATO’s stance on Ukraine “immoral” and openly aligned with the leftist, anti-US dictators of Cuba, Nicaragua, and Venezuela. Mexico’s internal development and shifting external stance could spark a return to a United States focused on the protection of its 19th-century borders instead of its 20th-century global footprint. European attention to the future of Mexico can help diversify the country’s trade and other partnerships, as well as shine a light on its democratic decay.
Topic:
Security, Defense Policy, Democracy, Europe, and Economic Policy
Political Geography:
Europe, Latin America, North America, Mexico, and United States of America

14. Monetary policy in Latin America: The easing cycle has begun

Author:
Alejandro Werner
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Latin America’s central banks acted promptly and decisively to contain the medium-term consequences of the global inflation shock. Since then, however, headline and core inflation have come down within the region, real growth has slowed, and the US Federal Reserve appears to have settled on a (however brief) pause of its own tightening cycle. Werner says the time has come for a gradual return to looser financial conditions in Latin America. Brazil, Chile, and Peru have already started the process of cutting rates, and there seems to be significant space to continue; Mexico should follow, with Colombia waiting for more clear signals.
Topic:
Monetary Policy, Inflation, Interest Rates, and Central Bank
Political Geography:
Latin America

15. A shared EU-US economic agenda for the world: Engagement as an imperative

Author:
Lauri Tähtinen
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
It is time for the European Union and the United States to build a shared, positive economic agenda towards third countries. Such an agenda would build upon the bilateral relationship but not focus on it. It would still be shared, even if the parties may have distinct reasons for supporting different aspects of it. The first elements of a shared economic agenda are evident in the EU-US Trade and Technology Council projects for Jamaica and Kenya. However, the political window for further alignment between the US and the EU, as well as for European trade deals, may be closing in 2024. Future initiatives should take into account major economies such as Brazil, Mexico, and Indonesia. The entry into force of the EU-Mercosur agreement should be a high-level priority for both Washington and Brussels. The current state of the EU-US relationship is characterized by a divergence in technology, industrial policy, and environmental policy. To move onto a path of convergence, Washington must reassess its exaggerated fears regarding the regulatory power of the EU, and use the spread of European standards as a means towards shared ends.
Topic:
Environment, Industrial Policy, Science and Technology, Bilateral Relations, European Union, and Economic Policy
Political Geography:
Europe, Latin America, and United States of America

16. The Resilience and Sustainability Trust: Early Learning and Challenges from Costa Rica and Rwanda

Author:
Andrew Wainer
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
In 2022, as part of the IMF’s recent efforts to re-channel Special Drawing Rights, it created the Resilience and Sustainability Trust (RST), facilitating the transfer of concessional finance from high- to lower-income countries for climate resilience and pandemic preparedness. It is the first new such facility following the polycrises of the early 2020s. Demand for the RST is strong and learning from its pilots can inform how future RST financing can be used most effectively. This research provides case studies of two RST pilots: Costa Rica and Rwanda. Lessons from the pilots are not only relevant for future RST recipients. The RST is operational, and therefore, uniquely worthy of analysis in terms of how additional financing—above and beyond the RST—can be effectively integrated. Our analysis finds that the RST is becoming the IMF’s de facto climate finance facility; is government-driven; is being awarded to countries with strong governance and climate credentials; and that authorities are banking on using the RST to attract additional climate finance. At the same time, the RST faces the challenges of being too small to confront climate resilience; has questionable priorities in terms of supporting climate over poverty reduction in low-income countries; is almost tripling the number of IMF program conditions some countries are facing; and is escalating IMF policy influence over governments in an area where the IMF has limited experiences.
Topic:
International Monetary Fund, Finance, Sustainability, Resilience, COVID-19, and Sustainable Development
Political Geography:
Africa, Latin America, Rwanda, and Costa Rica

17. Forest-Based Carbon Markets: Pitfalls and Opportunities

Author:
Julián Cárdenas and Juan Jose Guzman Ayala
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Forest-based carbon markets could become an important source of income for countries in Africa, Latin America and Asia-Pacific. Estimates indicate that under a high carbon prices scenario, the value of the forest-based carbon credit market could increase from US$1.3 billion in 2021 to US$25 billion per year by 2030. Apart from the climate and monetary benefits, forest based carbon markets also have pitfalls that must be avoided. Without the right institutions in place, at the national and local level, forest projects can generate negative externalities, such as population displacement, increases in food prices, and biodiversity degradation. The value chain in carbon credits involves a number of high value-added upstream and downstream activities that tend to take place outside the countries where the projects are located. Industrial policies are required for host countries to receive a higher share of the revenue stream, including in areas such as structuring, monitoring, verification, and surveillance. Countries need to promote actions in labor training, research and development, and access to long-term capital. The paper proposes the creation National Carbon Federations as institutions to resolve several market failures, while preventing conflict, ensuring adequate savings of the additional income, and strengthen democratic governance. These organizations can also provide key public goods, so that local communities benefit from the development of carbon credits from tropical forests.
Topic:
Climate Change, Environment, Climate Finance, Forests, and Carbon Markets
Political Geography:
Latin America

18. Mapping the “Women, Peace and Security” agenda in Latin America: a comparison of the UN’s National Action Plans

Author:
Paula Drumond, Tamya Rebelo, Isa Mendes, and Ana Velasco
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
BRICS Policy Center
Abstract:
Adopted on October 31, 2000 by the United Nations Security Council (UNSC), Resolution 1325 has since then been one of the main references for the development, strengthening, and expansion of policies aimed at promoting gender equality, giving rise to the so-called Women Peace and Security (WPS) agenda. This Policy Brief aims to map and systematize the diffusion of the WPS agenda in Latin America. This analysis aims to reflect on the contours of the agenda in the region and deepen the understanding of how Latin American countries engage with this global normative framework. Based on an analysis of the National Action Plans (NAPs) adopted so far by countries in the region (Chile, Argentina, Paraguay, Brazil, El Salvador, Guatemala and Mexico), the work reveals how the agenda is being adopted in these different contexts, seeking to identify existing convergences and particularities. The mapping and analysis of the NAPs are organized around three main aspects: (i) their elaboration process and the actors involved; (ii) the content, objectives, and measures adopted; and (iii) implementation and monitoring strategies. The goal is to offer a general diagnosis of the national engagements with the agenda, summarizing the main advances, limitations, and recommendations to promote its implementation in the region.
Topic:
Security, Development, United Nations, Women, Peace, and Equality
Political Geography:
Latin America

19. Digital Divide in Latin America and Opportunities for South Korea-Spain Cooperation

Author:
Angela Sagnella
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The purpose of this brief report is to sketch the current characteristics of the digital divide in Latin America, especially following the effects generated by the spread of the Covid-19 pandemic, in an attempt to understand its crucial aspects and possible outlooks. In this regard, South Korea-Spain future cooperation on digitalization in Latin America will be discussed, as the two countries – by virtue of the long diplomatic tradition that unites them – are developing new horizons of cooperation to fill digital gaps in Latin America.
Topic:
Economics, Science and Technology, COVID-19, and Digital Cooperation
Political Geography:
South Korea, Latin America, and Spain

20. Income and Consumption Inequality in Latin American Countries

Author:
Sungwoo Hong
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The recent large-scale protests across Latin America show the seriousness of this inequality in the region. Accumulated complaints about poverty, inequality, and the gap between the rich and the poor are the root causes of the massive protests in Chile that broke out in October 2019 and the demonstrations in Colombia that started in April 2021. This brief looks into the following questions: 1) how profound is inequality in Latin America, and has there been no notable change in its pattern over time? 2) Are the current conditions of poverty and inequality and patterns of inequality the same across Latin American countries?
Topic:
Poverty, Income Inequality, Consumption, and Income
Political Geography:
South Asia and Latin America