Group items tagged

these days Chavez’s influence is waning across the region as Venezuela’s oil-powered economy has gone bust and concerns have been raised about his governing style, which includes the jailing of opponents.

Ever so quietly, some of the Venezuelan populist’s biggest projects have been abandoned or mothballed, or have yet to take flight, including a pipeline from Venezuela to Argentina, a South American development bank, housing, highways and a continental investment fund.

Latinobarometro found in a February report that Latin Americans perceived Venezuela to be less democratic than other countries, assigning a 4.3 rating to Venezuela, with 10 being the most democratic.

the big news out of Cartagena -- outside of the Secret Service wing of the Hotel Caribe, that is -- was the united front that Latin American countries put up against the United States on several big issues.

whether Cuba should be admitted to the next summit, in 2015, which the United States and Canada opposed and all 30 Latin American countries, both left-wing bastions like Ecuador and traditional U.S. allies like Colombia, favored, thus bringing the meeting to an end without a planned joint declaration

The idea of an "American camp" in Latin America has been an anachronism for some while, but this became glaringly clear in Cartagena. "We need them more than they need us," as Christopher Sabatini, senior director of policy at the Americas Society, puts it. The United States remains the region's largest trading partner, the source of 40 percent of its foreign investment and 90 percent of its remittances. U.S. foreign aid still props up shaky countries like Colombia and Guatemala. But trade with both China and Europe has grown sharply over the last decade. And both big economies like Brazil and Argentina, and smaller ones like Chile and Peru, have experienced solid growth at a time when the United States has faltered. "Most countries of the region view the United States as less and less relevant to their needs,"

The peso plunged 15 percent on Jan. 22 and 23, from around 6.9 pesos to the dollar to 8 pesos, according to Bloomberg News, and has since stablized. It closed on Friday at 8 pesos to the dollar. It weakened by a total of 19 percent in January.

Generous social spending after the economic collapse, like freezing household electricity rates, has widened Argentina’s budget deficit, encouraged energy consumption and increased the country’s dependence on energy imports, eroding the central bank’s hard currency reserves. Inflation is so high that it has become a heated political issue, with economists saying it exceeded 28 percent in 2013 and officials insisting it was 10.9 percent.

If the biggest economic story this century was China’s rise, Brazil was uniquely poised to benefit from it. Rich in iron ore, soybeans and beef, not to mention oil, Brazil was positioned as a supplier of many things China needed. Its annual trade with China, only around $2 billion in 2000, soared to $83 billion in 2013. China supplanted the U.S. as Brazil’s largest trading partner.

Brazil fell under what some economists call the “resource curse,” a theory describing how countries with abundant natural resources sometimes do worse than countries without them. The idea is that the money from commodity sales can lead to overvalued currencies and shortsighted policy-making, leaving such countries badly exposed when the resource boom finally ends.

“Unfortunately, the history is that commodity-dependent economies do not catch up with the U.S.,” said Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management. “Not just oil producers. More countries end up being poorer, compared with the U.S., after they find a commodity than catch up.” Using data going back to 1800, he said commodity-dependent economies typically grow for a decade, then spend as long as two decades wallowing or slipping back.

The news that Brazil has overtaken Britain to become the world's sixth largest economic power is being touted as a sign that that the longtime "country of the future" has finally arrived.

In the past 20 years, Brazil has become well known for turning crisis situations into geopolitical opportunities, becoming a leading voice in international forums devoted to AIDS, poverty, and even the environment. And now, it is doing it again with a challenge that Brazilians understand all too well: a debt crisis.

The IMF contributions stem from Rousseff's intention to maintain a tradition that began under her predecessor, President Luiz Inácio Lula da Silva, of using foreign assistance as a means to strengthen Brazil's international reputation and influence. Yet another example is Brazil's annual contributions to the World Bank, which have averaged $253 million from 2004 to 2009. Brazil was the first nation to contribute -- $ 55 million -- to the World Bank's Haitian Reconstruction Fund. From 2003-2007, Brazil also gave approximately $340 million to fund the U.N.'s operations. Lula also increased Brazil's contribution to the U.N.'s World Food Program from $ 1 million in 2009 to $ 27 million in 2011.