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341. The Course of the Energy Transition in Latin America

Author:
Bartlomiej Znojek and Zuzanna Nowak
Publication Date:
12-2021
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The energy transition in Latin American countries is increasingly important for their economic development and the fight against climate change. These states want to use their potential of renewable energy sources (RES) and raw materials such as lithium deposits to attract investments and increase their participation in global supply chains building the low-carbon economy. The EU and its Member States—Germany in particular—have been more and more involved in cooperation with the region in these areas. Poland can also benefit, for example, through the exchange of experience and the engagement of Polish companies.
Topic:
Climate Change, European Union, Renewable Energy, Economic Development, Supply Chains, and Energy
Political Geography:
Europe, Poland, and Latin America

342. Reforming Patent Law: The Case of Covid‐​19

Author:
Michele Boldrin and David Levine
Publication Date:
10-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Ashort time ago the debate over the proposal to temporarily waive intellectual property rights on Covid‐​19 vaccines was raging worldwide; and the suspension of those rights seemed imminent. Public attention reached its peak in May 2021 when the Biden administration endorsed the idea and committed itself to pursuing it under the World Trade Organization–World Intellectual Property Organization (WTO-WIPO) procedural rules for waiving intellectual property (IP) protection. By suspending IP rights, the administration sought to help low‐​income countries to start producing vaccines more quickly, reducing the rising and dramatic worldwide vaccine inequality.
Topic:
Intellectual Property/Copyright, Inequality, Vaccine, COVID-19, and Patents
Political Geography:
Africa, India, and Latin America

343. The Risk of Automation in Latin America

Author:
Irene Brambilla, Andrés César, Guillermo Falcone, Leonardo Gasparini, and Carlo Lombardo
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
In this paper we characterize workers’ vulnerability to automation in the near future in the six largest Latin American economies as a function of the exposure to routinization of the tasks that they perform and the potential automation of their occupation. We combine (i) indicators of potential automatability by occupation and (ii) worker’s information on occupation and other labor variables. We find that the ongoing process of automation is likely to significantly affect the structure of employment. In particular, unskilled and semi-skilled workers are likely to bear a disproportionate share of the adjustment costs. Automation will probably be a more dangerous threat for equality than for overall employment.
Topic:
Employment, Income Inequality, Economy, and Automation
Political Geography:
Latin America

344. Poverty in Latin America

Author:
Leonardo Gasparini, María Emma Santos, and Leopoldo Tornarolli
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
Despite some progress in recent decades, poverty remains a top social concern in Latin America. A large proportion of Latin Americans live with very low incomes and are deprived in other fundamental welfare dimensions such as education, health, housing and sanitation. The measurement of income and multidimensional poverty in the region has advanced significantly in recent decades. In particular, there has been a remarkable increase in the availability of microdata from national household surveys and of poverty statistics published by governments and other institutions. Yet, the measurement of poverty in Latin America still has some limitations that should be addressed in the years to come. This chapter discusses the measurement of monetary and multidimensional poverty in Latin America, and documents the main patterns and trends. By providing an updated assessment of the level, changes and characteristics of poverty in the region we expect to contribute to the more ambitious debate on its determinants and policy implications. The rest of the chapter is organized as follows. In Section 2 we describe the data sources and main methodological issues regarding the measurement of income poverty, while in Section 3 we document the main patterns and trends over the recent decades. We repeat the sequence for the measurement of multidimensional poverty: Section 4 for methodological issues and Section 5 for evidence. The paper concludes in Section 6 with some brief concluding remarks.
Topic:
Poverty, Income Inequality, Economy, and Sanitation
Political Geography:
Latin America

345. Social Mobility and Economic Development: Evidence from a Panel of Latin American Regions

Author:
Guido Neidhofer, Matias Ciaschi, Leonardo Gasparini, and Joaquín Serrano
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We explore the role of social mobility as a driver of economic development by constructing a panel data set that includes measures of intergenerational mobility of education at the sub-national level in Latin America. First, we map the geography of educational mobility for 52 Latin American regions, as well as its evolution over time. Then, through a novel weighting procedure that considers the participation of cohorts to the economy in each year, we estimate the effect of changes in mobility on economic indicators, such as income per capita, poverty, child mortality, and luminosity. Hereby, we control for several covariates, including migration, educational expansions, initial conditions, and unobserved cross-regional heterogeneity. Our findings show that increasing social mobility had a significant and robust impact on the development of Latin American regions.
Topic:
Development, Economic Growth, Economic Mobility, Equality, and Equality of Opportunity
Political Geography:
Latin America

346. Reasons for Russia’s War on Ukraine and its foreseeable consequences on Latin America

Author:
Nancy Janett García Vázquez
Publication Date:
08-2021
Content Type:
Commentary and Analysis
Institution:
Argentine Council for International Relations (CARI)
Abstract:
This article analyzes the historical and political reasons that, in the author's opinion, have led to the war unleashed by the Russian Federation against Ukraine. It is also its purpose to analyze the war' imediate and mediate impacts at the international level, as well as its eventual consequences in the Latin American region.
Topic:
Security, Politics, War, History, Economy, and Peace
Political Geography:
Russia, Ukraine, Eastern Europe, Latin America, and Caribbean

347. New Avenues for Colombia’s Internationalization: Trade in Tasks

Author:
Ricardo Hausmann and Sebastian Bustos
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
One of the consequences of COVID-19 is the recognition that many tasks can be done from home. But anything that can done remotely, can be done from abroad. Given large salary differences between white collar workers across countries, it would make sense for value chains to try to exploit them. This opens an opportunity for Colombia to further promote its integration into the world global value chains and access new markets. This paper explores the possibility of exporting teleworkable services from Colombia. The goal is to provide useful information to guide strategic interventions to speed-up the development of such service industries in Colombia. We first introduce a definition of teleworkable jobs and describe its occupations and industries along different dimensions. We show that there are many teleworkable jobs in the US, representing a significant share of industry costs. Then, we show that many industries intensive in teleworkable jobs are currently traded across borders. To quantify Colombia’s advantage providing teleworkable services, we study the cost structure of industries and quantify the potential savings in overall costs if the tasks were performed by Colombians. Given Colombia’s current presence and the density around teleworkable industries we can calculate a proxy of the latent advantage in teleworkable services. We propose an index that summarize these dimensions and rank the potential gains from including telework from Colombia in an industry. We end with a set of policy recommendations to move this agenda forward.
Topic:
Human Capital, COVID-19, Labor Market, Skills, and Telework
Political Geography:
Colombia, South America, and Latin America

348. How concerning is Bolsonaro’s recent political and military shakeup?

Author:
Ryan C. Berg
Publication Date:
04-2021
Content Type:
Commentary and Analysis
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
urbulent politics and a deep shakeup in Brasilia have many concerned for the stability of Jair Bolsonaro’s administration. The stampede of ministerial exits started early this week with the resignation of foreign minister Ernesto Araújo. The defense minister followed suit shortly thereafter. By day’s end, six ministers had either resigned or moved to new posts — about one-third of Bolsonaro’s cabinet. Perhaps more concerning than the political overhaul was what transpired one day after the ministerial shakeup: the leadership restructuring within Brazil’s armed forces — occurring, no less, one day before the 57th anniversary of the military coup. The heads of all three major branches — the army, the navy, and the air force — resigned en masse, purportedly over concerns for their independence, handing Bolsonaro the opportunity to handpick their successors. Brazil witnessed something analogous only once before — in 1977, under the turbulent rule of military dictator Ernesto Geisel. This has left some Brazil watchers fretting that an insecure Bolsonaro could be laying the foundations “for his own January 6.”
Topic:
Politics, Military Affairs, Authoritarianism, Democracy, Populism, and Jair Bolsonaro
Political Geography:
Brazil and Latin America

349. Europe’s last chance: How the EU can (and should) become the indispensable actor in Venezuela’s democratic restoration

Author:
Ryan C. Berg and Jorge González-Gallarza
Publication Date:
03-2021
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The EU’s current policy approach toward Venezuela is insufficient to contribute meaningfully to a political transition in the country and protect human rights. Oftentimes, the EU’s policy has been at odds with the US, having permitted unrelated disagreements to cloud its recognition of its strategic interest in a free, prosperous, and democratic Venezuela. The Nicolas Maduro regime’s illicit investment schemes have found fertile ground in the EU at large, with a particular hotspot in Spain. A torrent of investments and acquisitions has allowed corrupt cronies in Maduro’s entourage to engage in unfathomable kleptocracy and stash their ill-gotten gains in the eurozone, vitiating the rule of law in the process. The EU consistently underappreciates the Maduro regime’s multi-faceted security threat, which intersects with and compounds many of the EU’s greatest geostrategic challenges in the post-COVID-19 landscape. China, Cuba, Iran, and Russia are all at once strategic rivals of the EU and enablers of the Maduro regime’s threat to its security. The Joe Biden administration’s commitment to multilateral engagement in Venezuela offers the EU a chance to reclaim transatlantic cooperation and present a common vision for political transition in the country. Beefing up sanctions and developing a coordination mechanism, as well as drumming up humanitarian aid, would constitute serious progress and potentially thrust the EU into the role of indispensable actor in Venezuela’s democratic restoration.
Topic:
Foreign Policy, Development, Sanctions, European Union, Democracy, Multilateralism, and Hugo Chavez
Political Geography:
Europe, Latin America, Spain, and Venezuela

350. Financialization, Deindustrialization, and Instability in Latin America

Author:
Esteban Perez-Caldentey and Matias Vernengo
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The paper analyzes the relation between premature deindustrialization in Latin America with what is termed premature financialization. Premature financialization is defined as a turn to finance, organized as an industrial concern, which is a vehicle for accumulation before the process of industrialization has reached maturity. This contrasts with developed countries where financialization occurs after an advanced stage of economic and social development is reached, and where the growth of the financial sector, beyond a certain threshold, can be detrimental to economic activity. The paper examines the consequences of premature financialization for investment, growth, and financial stability.
Topic:
Economic Growth, Investment, Financial Stability, Financialisation, Deindustrialization, and Instability
Political Geography:
Latin America

351. Quantifying Investment Facilitation at Country Level: Introducing a New Index

Author:
Axel Berger, Ali Dadkhah, and Zoryana Olekseyuk
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
This article introduces a new and unique dataset for measuring the adoption of investment facilitation measures at country level. The Investment Facilitation Index (IFI) covers 117 individual investment facilitation measures, clustered in six policy areas, and maps their adoption for 86 countries. This article presents the conceptual and methodological background of the IFI and provides a first analysis of the level of adoption of investment facilitation measures across countries participating in the investment facilitation for development negotiations in the World Trade Organization (WTO). Our dataset reveals novel insights. Countries which have lower levels of adoption belong to the low-income and lower-middle-income country group and are often located in Africa, the Middle East and to some extent Latin America and the Caribbean. The strong correlation between FDI and the IFI score shows that countries with the lowest levels of FDI, and thus in need of policy tools to attract FDI, have the lowest levels of adoption when it comes to investment facilitation measures. Our dataset has direct relevance for current policy discussions on investment facilitation for development in the WTO but also for domestic-level policy-making. Furthermore, the IFI provides the basis for a future research agenda to assess the design and impact of a future WTO agreement.
Topic:
Development, Investment, and WTO
Political Geography:
Africa, Middle East, Latin America, and Caribbean

352. Building an Energy and Climate Coalition with Latin America and the Caribbean: An Agenda for the Biden Administration

Author:
Mauricio Cardenas and Laurie Fitzmaurice
Publication Date:
06-2021
Content Type:
Commentary and Analysis
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The initial months of the Biden administration’s foreign policy have underscored the importance of defining the type of relations with China (cooperative in some areas, adversarial in others) and revamping relations with Europe on areas of common interest. However, the United States should look closer to home, where it can find some major opportunities for international policy advancement. The Biden administration has a window of opportunity to rethink its relations with and policy toward Latin America and the Caribbean (LAC). In particular, there are very good reasons—political and economic—for putting the energy and climate change agenda at the center of the hemispheric partnership. On the political front, building a hemispheric bloc will increase the influence of its members in global negotiations. On the economic front, the countries in the region offer significant opportunities for trade and investment for the United States. Canada, which earlier in the year pledged to work with the United States on addressing climate change,[1] could also have an interest in promoting and potentially participating in this initiative. Prior to the arrival of the pandemic, the economies of LAC had already been confronting a complex series of economic growth challenges after the end of the commodities supercycle. Many countries in the region faced high levels of public indebtedness, currency depreciation, credit rating risk, insufficient tax revenue bases, and low investment rates.[2] The appearance of the COVID-19 crisis only served to exacerbate these conditions. The LAC region contains 8.4 percent of the world’s population but represents 30 percent of COVID-19 fatalities to date.[3] Forecasts now predict that per capita GDP will remain below the 2019 level at least until 2023.[4] The continuing surge of undocumented immigration into the southern border of the United States, the social and economic impacts of COVID-19, and the growing influence of China in the region could increase political pressure on the United States to develop a coherent policy toward LAC. These urgent and competing dynamics represent an opportunity for the United States to recast its policy toward the region as one of engagement. The United States could utilize the tools of technology and financing focused on energy and climate to put the region on a path toward sustained economic growth and social progress. LAC needs technology and financing to build clean infrastructure, develop alternative energies, and reduce energy poverty.
Topic:
Climate Change, Energy Policy, Environment, Regional Cooperation, and Regionalism
Political Geography:
Latin America, Caribbean, North America, and United States of America

353. National Oil Companies and the Energy Transition: Ecopetrol's Acquisition of an Electric Transmission Company

Author:
Mauricio Cardenas and Luisa Palacios
Publication Date:
08-2021
Content Type:
Commentary and Analysis
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The energy transition strategies of international oil companies have come under increased scrutiny from investors and the media as countries across the globe grapple with targets to reduce greenhouse gas emissions.[1] It is unclear if national oil companies (NOCs) are going to feel the same pressure given their government-majority ownership and, if so, how they will adjust their business models. This commentary explores recent moves by Colombian national oil company Ecopetrol to adapt to the energy transition, especially its bid to acquire a majority stake in Interconexión Eléctrica SA (ISA), an electricity transmission company, for 14.2 trillion Colombian pesos (equal to about $3.6 billion).[2] The proposed acquisition was met with mixed reactions, with some critics suggesting it was an opportunistic move on the part of the Colombian government (which has a majority interest in both companies) to book some revenues and reduce the ballooning fiscal deficit. But rather than analyzing its fiscal merits, this piece analyzes the potential transaction from the viewpoint of Ecopetrol and whether there are lessons from the deal for other NOCs navigating the energy transition. This commentary begins with a brief background on both companies and the potential benefits for Ecopetrol in pursuing a path that is different relative to what some other oil companies are doing in order to adjust their business models. Ecopetrol faces specific as well as regional challenges that make transition strategies used by the European oil companies less attractive. The piece then discusses how, if part of the goal of the acquisition is to accelerate Ecopetrol’s energy transition and to add shareholder value, a number of complementary actions should be taken to help with the governance aspect of this acquisition while at the same time strengthening Ecopetrol’s pledge to become net zero by 2050. For example, in arranging financing, Ecopetrol could explore issuing an environmental, social, and governance (ESG) bond where the proceeds are earmarked for the purchase of ISA, which is already a net-zero company. In addition, the coupon rate could be linked to specific emissions reductions on Ecopetrol’s oil and gas activities. Tying these targets to the coupon rate could be seen as a credible mechanism to ensure that the company will comply with its ambitious climate goals. In addition, we propose that Ecopetrol maintain ISA’s current governance structure unmodified and preserve its operational independence. This would allow ISA to benefit from its investment grade status (which Ecopetrol does not enjoy) and continue to deploy its capital expenditures (CapEx) plan geared toward investing in Latin America’s electricity sector without interference. To conclude, this transaction by itself does not guarantee a successful energy transition for Ecopetrol’s core business. If Ecopetrol’s goal is to diversify its portfolio of activities and reduce its carbon footprint, then it should ensure the sum of the two companies results in synergies that reduce emissions beyond what each one of them can achieve individually. This is not a guaranteed outcome but one that will depend on how ISA performs under Ecopetrol’s ownership, the extent to which this transaction brings new opportunities in the renewable energy space, and how the revenues derived from this acquisition help to finance the decarbonization of Ecopetrol.
Topic:
Energy Policy, Oil, Regional Cooperation, Natural Resources, and Renewable Energy
Political Geography:
Colombia, South America, and Latin America

354. Entrenching the Problem? International Organizations and Their Engagement in Latin America to Address Violence: The Case of the European Union in the Northern Triangle

Author:
Kai Lehmann
Publication Date:
08-2021
Content Type:
Journal Article
Journal:
Contexto Internacional
Institution:
Institute of International Relations, Pontifical Catholic University of Rio de Janeiro
Abstract:
Latin America is the most violent region in the world. Yet, decades of political and financial investment by the international community have not had the desired results. Using the work of the European Union in the Northern Triangle of Central America as a case study, this article asks what explains this failure. Utilizing the conceptual framework of Complexity and Human System Dynamics, it argues that current policies actually entrench the pattern of conditions which lead to, and sustain, violence. It shows how, by reconceptualizing this problem using the concepts of Complexity, policies could be made more effective and sustainable.
Topic:
Regional Cooperation, European Union, Conflict, and Violence
Political Geography:
Europe, South America, Latin America, and North America

355. New Clothes, Old Threads: The Dangerous Right-Wing Offensive in Latin America

Author:
Tricontinental: Institute for Social Research
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
In Latin America, the adoption of the neo-reactionary and alternative right projects of the Global North appears to be a launching pad from which to modify the cognitive maps of the people and to shift political and discursive positions and public agendas to the right. This dossier analyses the right-wing developments in Latin America, identifying how they operate and with what discourses, what social base they mobilise, and their continuities of and ruptures with the history of the right wing in the continent.
Topic:
Politics, Far Right, and Mobilization
Political Geography:
South America, Latin America, and North America

356. Pity the Nation: Honduras Is Being Eaten from within and without

Author:
Tricontinental: Institute for Social Research
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Where does Honduras stand twelve years after the 2009 coup? In our dossier, jointly produced with People’s Dispatch and the Civic Council of Popular and Indigenous Organisations of Honduras (COPINH), we look at the coup against progressive leader and President Manuel Zelaya and the prolonged violence in the country in the years since by examining the assassination of Berta Cáceres, the forced disappearances of five members of the Garifuna community in July 2020, and the concerted attacks on trade unionism to understand the far-reaching impacts of the coup.
Topic:
Governance, Leadership, Coup, and Assassination
Political Geography:
Latin America, Central America, North America, and Honduras

357. Dawn: Marxism and National Liberation

Author:
Tricontinental: Institute for Social Research
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Dossier no. 37 is an invitation to a dialogue, a conversation about the entangled tradition of Marxism and national liberation – a tradition that emerges out of the October Revolution and that deepens its roots in the anti-colonial conflicts of the twentieth and twenty-first centuries. This is an introduction to a wide-ranging conversation that includes many different revolutionary movements, mostly rooted in the continents of Africa, Asia, and Latin America.
Topic:
Socialism/Marxism, Colonialism, Revolution, Liberalization, and Anti-Colonialism
Political Geography:
Africa, Asia, South America, Latin America, and North America

358. Linkages between Inequality, Exclusion, and the Occurrence of Elections with Protest Activity Against Governments

Author:
Paul von Chamier
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Center on International Cooperation (CIC)
Abstract:
There is ample research on the correlation between inequality and exclusion on one side and conflict on the other. For instance, the connection between inequities and violence is one of the underpinnings of the concept of fragile situations, utilized frequently by the World Bank and showcased in publications such as the World Development Report 2011 or Pathways for Peace 2018. It is therefore tempting to draw a logical conclusion that escalating inequality and exclusion can be influenced by both violent conflicts and events such as civilian disorder and political volatility. It also makes sense at an intuitive level as humans are wired to spot unfairness when it affects them, which fits into this hypothesis. The linkage has been in fact proposed since at least the antiquity. For example, in 4th century BCE, Aristotle warned that accumulation of wealth among few Athenians could lead to toppling of the city government. In more modern times, communist revolutionaries were predicting a worldwide violent uprising by the impoverished, agitated by economic injustice. A recent New Yorker article draws the arc between inequities and protests in Latin American countries.
Topic:
Government, Inequality, Violence, and Exclusion
Political Geography:
Latin America

359. Missing Calvo? Latin America’s love-hate relationship with the Investment Treaty Regime

Author:
Lucas Silva Amorim, Mariana Pimenta Oliveira Baccarini, and Henrique Zeferino de Menezes
Publication Date:
10-2021
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
For decades, following the views of the Argentine legal scholar Carlos Calvo, Latin American countries avoided adopting international investment treaties. The Calvo doctrine established that disputes between foreign investors and the state should only be settled by national courts, to the exclusion of international jurisdictions. This position eroded as numerous bilateral investment treaties (BITs) were signed during the 1980s and 1990s, exposing the countries of the region to investment lawsuits. Recently, a crisis of the investment treaty regime has been noticed in the region, with the denunciation of both BITs and the ICSID Convention, the non-recognition of arbitral awards, and the negotiation of a new model of investment treaties. The analysis of the historical process of rise and crisis of the investment regime in the region, through the review of documents and data on its effects, demonstrate that countries have taken measures to restrict the possibility of investor-State arbitration. In this sense, the region seems to be experiencing a return to Calvo's doctrine on the need to guarantee countries’ decision-making autonomy in strategic policies.
Topic:
Treaties and Agreements, Autonomy, Decision-Making, International Investment Agreements, and Policy Diffusion
Political Geography:
Latin America