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Buoyed by China trade, nationalist-minded politicians launched a foreign policy meant to reduce the role of the U.S. in Latin America. Brazil blocked a U.S. free-trade initiative for the Americas. They teamed with Venezuela to create a regional security council to supplant one that included the U.S. The foreign minister worked from an office with a huge map of the world upside down, offering the message that the era of emerging markets was at hand. But the world wasn’t upside down. While Brazil tied itself more closely to anti-American governments like Venezuela, Argentina and Iran, some regional neighbors—Chile, Colombia and Peru—went around Brazil and cut individual free-trade deals with the U.S.

Anticipating commodity sales, the government spent increasingly heavily. Government banks supplied Brazilians with easy credit. Brazil subsidized energy bills, issued cheap loans to big companies with government ties and built stadiums to host global events such as the 2014 World Cup and the 2016 Olympics.

Meantime, Brazil produced far less oil than predicted. Production actually shrank in some years, as Petróleo Brasileiro SA, PBR 12.80 % known as Petrobras, struggled with the enormous task of developing oil fields in extremely deep water.

Commodities’ support of the economy allowed Brazilian leaders to put off addressing certain problems that had long bedeviled the nation, such as a political system that tended to breed corruption and a bureaucracy that stymied business innovation. “Brazil became complacent because of the intoxicating effects of China trade,”

Brazil deserves to be broken out of the Latin policy ghetto and, just as the United States has a China policy or Russia policy or India policy, perhaps it is time we really developed an independent, sufficiently complex and flexible, forward-looking, globally oriented, not-for-or-by-beginners Brazil policy.

Spanish filmmakers, Japanese automotive executives and entrepreneurs from the United States and Latin America arrive practically daily — pursuing dreams, living well and frequently succeeding.

“There is this energy here, this feeling that anything can happen,” said Lesley Téllez, a Californian whose three-year-old business running culinary tours served hundreds of clients here last year. “It’s hard to find that in the U.S.”

more Americans have been added to the population of Mexico over the past few years than Mexicans have been added to the population of the United States, according to government data in both nations.

If the country of 112 million people can harness the energy of foreigners and newly educated Mexicans, become partners with the slew of American firms seeking alternatives to China, and get them to do more than just hire cheap labor, economists and officials say Mexico could finally become a more equal partner for the United States and the first-world country its presidents have promised for decades.

“There’s been an opening to the world in every way — culturally, socially and economically.”

global trends have been breaking Mexico’s way — or as President Enrique Peña Nieto often puts it, “the stars are aligning” — but there are plenty of obstacles threatening to scuttle Mexico’s moment.

The challenge, he said, is making sure that the growing interest in his country benefits all Mexicans, not just newcomers, investors and a privileged few.

Mexico has failed to live up to its economic potential before. “They really blew a moment in 1994 when their currency was at rock bottom and they’d just signed Nafta,”

The number of Americans legally living and working in Mexico grew to more than 70,000 in 2012 from 60,000 in 2009, a number that does not include many students and retirees, those on tourist visas or the roughly 350,000 American children who have arrived since 2005 with their Mexican parents. For DiscussionWhy did you decide to move to Mexico?Please share your story in the comments below.

closer ties with Mexico’s beloved and hated neighbor to the north, through immigration and trade, have made many Mexicans feel less insular. Millions of emigrants send money earned abroad to relatives in Mexico, who then rush out to Costco for more affordable food and electronics.

“Europe feels spiritually dead and so does the United States,” Mr. Quemada-Díez said. “You end up wanting something else.”

“We are now more certain about the value of sharing certain things.”

Some of the growth is appearing in border towns where foreign companies and binational families are common. American retirees are showing up in new developments from San Miguel de Allende to other sunny spots around Cancún and Puerto Vallarta. Government figures show that more Canadians are also joining their ranks.

More and more American consultants helping businesses move production from China are crisscrossing the region from San Luis Potosí to Guadalajara, where Silicon Valley veterans like Andy Kieffer, the founder of Agave Lab, are developing smartphone applications and financing new start-ups. In Guanajuato, Germans are moving in and car-pooling with Mexicans heading to a new Volkswagen factory that opened a year ago, and sushi can now be found at hotel breakfasts because of all the Japanese executives preparing for a new Honda plant opening nearby.

Mr. Pace, bearded and as slim as a Gauloises, said he moved to Mexico in 2011 because college graduates in France were struggling to find work. He has stayed here, he said, because the affordable quality of life beats living in Europe — and because Mexico offers more opportunity for entrepreneurship.

Some Mexicans and foreigners say Europeans are given special treatment because they are perceived to be of a higher class, a legacy of colonialism when lighter skin led to greater privileges. But like many other entrepreneurs from foreign lands, Mr. Pace and his partners are both benefiting from and helping to shape how Mexico works. Mr. Rodríguez, the former Interior Ministry official, Cuban by birth, said that foreigners had helped make Mexico City more socially liberal.

Many immigrants say Mexico is attractive because it feels disorderly, like a work in progress, with the blueprints of success, hierarchy and legality still being drawn. “Not everyone follows the rules here, so if you really want to make something happen you can make it happen,” said Ms. Téllez, 34, whose food business served more than 500 visitors last year. “No one is going to fault you for not following all the rules.”

compared with South Korea, where career options were limited by test scores and universities attended, Mexico allowed for more rapid advancement. As an intern at the Korea Trade-Investment Promotion Agency here, he said he learned up close how Samsung and other Korean exporters worked. “Here,” he said, “the doors are more open for all Koreans.” He added that among his friends back home, learning Spanish was now second only to learning English.

There were 10 times as many Koreans living in Mexico in 2010 as in 2000.

Europe, dying; Mexico, coming to life. The United States, closed and materialistic; Mexico, open and creative. Perceptions are what drive migration worldwide, and in interviews with dozens of new arrivals to Mexico City — including architects, artists and entrepreneurs — it became clear that the country’s attractiveness extended beyond economics.

Artists like Marc Vigil, a well-known Spanish television director who moved to Mexico City in October, said that compared with Spain, Mexico was teeming with life and an eagerness to experiment. Like India in relation to England, Mexico has an audience that is larger and younger than the population of its former colonial overlord.

“In Spain, everything is a problem,” he said. “Here in Mexico, everything is possible. There is more work and in the attitude here, there is more of a spirit of struggle and creativity.”

it was not a country that welcomed outsiders; the Constitution even prohibited non-Mexicans from directly owning land within 31 miles of the coast and 62 miles of the nation’s borders.

He struggled to make sense of Mexico at first. Many foreigners do, complaining that the country is still a place of paradox, delays and promises never fulfilled for reasons never explained — a cultural clash that affects business of all kinds. “In California, there was one layer of subtext,” Mr. Quemada-Díez said. “Here there are 40 layers.”

Mexico has allowed dual nationality for more than a decade, and among the growing group of foreigners moving here are also young men and women born in Mexico to foreign parents, or who grew up abroad as the children of Mexicans. A globalized generation, they could live just about anywhere, but they are increasingly choosing Mexico.

Domingo Delaroiere, an architect whose father is French and mother is Mexican, said Mexico’s appeal — especially in the capital — was becoming harder to miss. When he came back here last year for a visit, after two and a half years in Paris, he said he was surprised. “Art, culture, fashion, architecture, design — the city was filling up with new spaces, things that are interesting, daring,” he said. He soon decided it was time to move. Compared with Mexico, he said, “Nothing is happening in Paris.”

Several Latin American leaders would like to succeed him, but no one meets the necessary conditions: Cuba's blessing, a fat wallet, a country that carries enough demographic, political and economic weight, potent charisma, a willingness to take almost limitless risks, and sufficient autocratic control to allow him or her to devote major time to permanent revolution away from home.

Cuba has made Venezuela into its foreign-policy proxy, the Castro brothers need Caracas to remain the capital of the movement for it to retain any vitality. While Cuba is dependent on the roughly 100,000 barrels of heavily subsidized oil Chávez's regime supplies to Cuba daily, the island nation has a grip on Venezuela's intelligence apparatus and social programs. Chávez himself acknowledged last year that there are almost 45,000 Cuban "workers" manning many of his programs, though other sources speak of an even larger number. This strong connection allows Cuba to exercise a vicarious influence over many countries in the region. Caracas's clout in Latin America stems from Petrocaribe, a mechanism for helping Caribbean and Central American countries purchase cheap oil, and ALBA, an ideological alliance that promotes "21st century socialism."

Critical in all of this is the money at Maduro's disposal. The sales of PDVSA, the state-owned oil cash cow, amounted to $124.7 billion in 2011, of which one-fifth went to the state in the form of taxes and royalties, and another fourth was channeled directly into a panoply of social programs. This kind of management makes for very bad economics, a reason why the company needs to resort to debt to fund its basic capital expenditures, and for decreasing productivity,

China has helped mitigate the impact. The China Development Bank and the Industrial and Commercial Bank of China have lent Caracas $38 billion to fund some social programs, a bit of infrastructure spending, and purchases of Chinese products and services. Another $40 billion has been promised to fund part of the capital expenditures needed to maintain the flow of oil committed to Beijing.

, Ashe “gravely misrepresented the United Progressive Party government by implying that bribe money was necessary to gain an audience with me or my colleague ministers. That was never the case during the ten years of our administration.”

they have encountered a residue of corrupt practices from the former UPP regime, involving the abuse of public office and organized misappropriation of state resources.

We intend to have the best and most transparent governance structure in the Caribbean and beyond,” Browne said.

Browne noted that offences may also have been committed in Antigua under the Prevention of Corruption Act, which, he said, would be independently investigated by local law enforcement agencies.

that is their prerogative and there will be no political witch hunt by his government or the political party that he leads.

His empire also fell victim to the sudden end of both the global commodities boom and a wild exuberance for emerging markets - two forces that attracted investors to Batista's vision.

A former Brazilian finance minister, a former energy minister and a former chief justice of Brazil's supreme court joined the OGX board, bolstering the credibility of the polyglot, European-educated "Brazilianaire".

When Batista raised $4.11 billion in OGX's initial public offering in June 2008, interest in Brazil was feverish. Petrobras had just made giant offshore oil discoveries and Brazil was expected to become one of the world's top five oil producers by 2020.

Record demand from China drove up the price of Brazilian soybeans, iron ore, coffee, sugar and other commodities. Oil rose to an all-time high. EBX had also just sold most of its first listed company, iron ore producer MMX Mineração e Metálicos SA, to Anglo American Plc for $6.65 billion, enriching Batista and his investors.

A lot of the people who invested with Batista were not fools, and his rise and fall has followed that of Brazil.

DeGolyer & MacNaughton (D&G), a Dallas-based certification company, estimated OGX's potential resources at 10.8 billion barrels of oil and natural gas equivalent. That would have been enough - if OGX could figure out how to get it out of the ground - to supply all U.S. oil needs for more than a year and a half.

OGX estimated it would produce 1.4 million barrels a day by 2019, equivalent to 70 percent of Brazil's output, or about half of the output of Venezuela, a founding member of OPEC.

Already Brazil's richest man, Batista bragged he would surpass Bill Gates, Warren Buffett and Mexico's Carlos Slim to become the world's wealthiest person. Today he does not even make Forbes' top 100 list.

The consequences of Tubarão Azul's failure quickly spread because of the close links between EBX Group companies. EBX shipbuilder OSX Brazil SA was formed to build and lease a fleet of offshore oil vessels for OGX. Power producer MPX Energia SA is developing gas fields with OGX in Brazil's northeast. Port operator LLX Logística SA is home to OSX's shipyard, a place to store and process OGX oil and to ship Anglo American's iron ore.

Batista may also have been hurt by Brazil's efforts to help his and other companies weather the 2008 U.S. financial crisis and the world economic slowdown that followed. As Brazilian stocks, currency and bonds plunged, EBX stocks briefly fell to levels that were only broken this year.

EBX was one of the main beneficiaries of cheap capital that Brazil's government pumped into the economy to fight the downturn.

In Batista, the government was pursuing its then-fashionable strategy of creating "national champions" while making up for delays in its own infrastructure projects. It encouraged Batista to speed up just as Brazil's boom was about to end.

Batista and Brazil, though, have struggled since. As China slows, commodity prices are falling. In the last year Brazil's Bovespa stock index was the worst performer among the world's 28 largest indexes and the only one to fall in the period.

Ortega is once again trying to build up his military for no good reason.

First, he has signed a deal with a Caribbean-based Hong Kong company to dig a canal to rival the Panama Canal. It is unclear to what degree the Chinese government is party to the deal, but state-owned enterprises are involved. That means the government is involved, so of course we should expect Ortega and his cronies to benefit. Read the piece linked above for more details about the questions being raised over the dubious cost calculations ($40 billion? $50 billion? More?), impact on the environment, impact on private land ownership, and the forceful tactics of the authorities against citizens trying to get information about the project, or simply trying to protect their homes from intrusion by officials escorting Chinese researchers and contractors into their villages.

uled as an illiberal democracy, meaning that the constitution, laws, property rights, and free speech are curtailed whenever it suits the rulers.

If Ortega’s efforts to strengthen ties with Russia and China were simply about commerce and improving his economy, it would make sense. Poor countries regularly try to do such things.

Dujarric said Ban was “shocked and deeply troubled” by the allegations that “go to the heart and integrity of the UN”.

Corruption is not business as usual at the UN.

Those charged in the criminal complaint unsealed on Tuesday in Manhattan federal court included Seng, who was arrested two weeks ago along with his chief assistant, Jeff C Yin, 29, a US citizen whose bail was revoked last week over allegations that he lied to investigators after his arrest.

Other money, they said, was used to lease a luxury car, pay his home mortgage, buy Rolex watches and custom suits, and construct a $30,000 basketball court at his home in Dobbs Ferry, New York, where he was arrested on Tuesday. He opened two bank accounts to receive the funds and then underreported his income by more than $1.2m, officials said.

Prosecutors said two other arrested individuals were involved with Ng. They were identified as Sheri Yan, 57, and Heidi Park, 52, both naturalized US citizens who reside in China and helped facilitate the scheme, prosecutors said.

At the time of the groundbreaking in December 2014, the Chinese government said it was not involved with the project. This and Mr. Wang’s recent setbacks — he has reportedly lost about 80 percent of his $10 billion fortune — make some experts say the deal is probably dead.

Some question whether the canal would even be commercially viable. Few supertankers and massive container ships now afloat will not be able to pass through the expanded Panama Canal set to open soon. And few ports are big enough to welcome those megaships. In the short term, some experts say, the combination of the Panama and Nicaragua canals would lead to overcapacity and price wars.

That aspect has prompted protests from farmers, some of which have turned violent. Experts say Mr. Wang will have to pay only the assessed value, or about 5 percent of the market value, for any lands he takes. But many farmers would not be entitled to even that. In a country that is short of adequate roads and government offices, many do not have formal title to the fields they have cultivated for generations.

But the plan is much broader than just a canal. Mr. Wang’s vision includes new airports, new ports on both ends of the canal, new lakes in the mountains to make sure the canal has enough water, and new islands in Lake Nicaragua to dispose of excavated sediment and rock. Advertisement Continue reading the main story A 1,100-page study of the project, conducted by the British consulting firm ERM and issued five months ago, reinforced the notion of how much is at stake. It recommended further studies in many areas before going forward and noted that a wide range of mitigation efforts would be needed, like reforestation and job training.Some see hope in those efforts. Jeffrey McCrary, an American fish biologist who lives in Nicaragua and worked on the study, supports the project, saying Mr. Wang’s company will have to provide money to clean up environmental damage already caused by deforestation, poor land management, crop fumigation and general dumping into Lake Nicaragua.

milo Lara, a member of the Nicaragua Canal Commission, a group appointed by the government to oversee the project, said many critics of the project were political opportunists. Mr. Lara said the canal plan had been adjusted to deal with problem issues, like potential earthquakes, tsunamis and environmental concerns. And people who might be displaced by it, he said, could be moved to small cities with new schools and services they never had before.

In the meantime, speculating about the canal has become a national pastime, though polls show that Nicaraguans grow less inclined to believe that it will be built.“We used to talk about it every day,” said Carlos Fernando Chamorro, the editor of Confidencial, an investigative magazine. “Now we only talk about it every two days.”Some still hope it will lift this country out of poverty.But in Brito and the nearby city of Rivas, those who expect to be displaced are angry. Teresa de Jesus Henriquez Delgado, 31, is one of the residents who used a stencil to paint “Go Away Chinese!” on the outside of her house. Advertisement Continue reading the main story “I will resist with all of my strength when the bulldozers come to tear down my house,” she said. “I will fight until I die. I have to for my children. They can’t take this land from my family.”

The big issues that divide the United States (and let's not forget, Canada) from its Latin American allies are Cuba, drugs, and immigration. On a trip to Latin America last year, in fact, Obama promised Salvadoran President Mauricio Funes that he would push immigration reform through Congress -- an effort he later abandoned. But for all their recent maturation, Latin American countries are affected by U.S. domestic issues in a way that no other region could be. Latin America therefore suffers from the paralysis of U.S. domestic politics as Europe or Asia does not.

even Washington's closest allies in the region have lost patience with U.S. politics

This year, Guatemalan President Otto Pérez Molina, a former general elected as a hard-liner, dramatically reversed course and spoke up in favor of drug legalization. This earned him extraordinary visits from both U.S. Vice President Joe Biden and Homeland Security Secretary Janet Napolitano. According to Eduardo Stein, the former vice president of Guatemala, Biden said that the United States was eager to discuss drug reform, just not at the summit, while Napolitano reportedly plainly said, "Don't think of raising the issue at the summit." Pérez then went ahead and called a meeting of regional leaders, who could not agree on an alternative set of policies but decided to raise the issue in Cartagena. Pérez later said that drug policy was the only issue discussed at the summit's final closed-door session.

One area is freeing itself from US hegemony and is thriving, but may founder if Chinese and Indian growth slows. Another is increasingly integrated with the US and Canada. Despite its current travails, it will discover a path to prosperity when the US does.

When Newsweek ranked the “world’s best countries” based on measures of health, education and politics, the United States ranked 11th. In the 2011 Quality of Life Index by Nation Ranking, the United States was 31st. Similarly, in recent rankings of the world’s most livable cities, the Economist Intelligence Unit has the top American entry at No. 29, Mercer’s Quality of Living Survey has the first United States entry at No. 31 and Monocle magazine showed only 3 United States cities in the top 25.

On each of these lists, the top performers were heavily concentrated in Northern Europe, Australia and Canada with strong showings in East Asian countries from Japan to Singapore. It is no accident that there is a heavy overlap between the top performing countries and those that also outperform the United States in terms of educational performance

Nearly all the world’s quality-of-life leaders are also countries that spend more on infrastructure than the United States does. In addition, almost all are more environmentally conscious and offer more comprehensive social safety nets and national health care to their citizens.

providing the basics to ensure a high quality of life is not a formula for excess or the kind of economic calamities befalling parts of Europe today. For example, many of the countries that top quality-of-life lists, like Sweden, Luxembourg, Denmark, the Netherlands and Norway, all rank high in lists of fiscally responsible nations — well ahead of the United States, which ranks 28th on the Sovereign Fiscal Responsibility Index.

in 1998, it was the Brazilian government, under President Fernando H. Cardoso, that was running to the IMF for assistance. Brazil was trying to recover from a capital flight of roughly $30 billion dollars, triggered by a lack of foreign investor confidence due to exorbitant debt and recession. To help quell investor speculation that Brazil would default (like Russia did months earlier), the IMF provided a bailout package of $41 billion on the condition that Cardoso prune government expenditures by 20 percent and reform the pension system.

in 2001, after a steep decline in foreign investment, currency depreciation, and a debt crisis in neighboring Argentina, Brazil essentially begged the IMF to help avoid a default on its external debt. This time the government received $15 billion in exchange for reducing federal expenditures and maintaining a primary budget surplus of approximately 3.75 percent through 2005.

Rousseff also wants an expanded role for Brazil within the IMF, along with the other BRICS, mainly through increased quota shares and voting rights. She has joined her colleagues from China, India, Russia, and South Africa in emphasizing that the IMF needs to recognize the importance of the world's largest emerging economies

Rousseff's European strategy is a smart move. By providing financial support in time of need, Brazil can strengthen its partnership and economic relationship with several European countries, as well as with the IMF. And by lending a hand, Rousseff may be able to garner more European support as she strives to boost Brazil's influence within the U.N. system and the IMF. Through these calculated endeavors, Rousseff can signal that Brazil isn't just arriving on the international scene, it's here to stay.

“If I were teaching this in a course,” said Merilee Grindle, president of the Latin American Studies Association and director of the David Rockefeller Center for Latin American Studies at Harvard, “I would take his comments, add them in and use them to generate a far more interesting discussion about how we see and interpret events at different points in time.” And that seems to be exactly what many professors plan to do.

“Open Veins” has been translated into more than a dozen languages and has sold more than a million copies. In its heyday, its influence extended throughout what was then called the third world, including Africa and Asia, until the economic rise of China and India and Brazil seemed to undercut parts of its thesis.In the United States, “Open Veins” has been widely taught on university campuses since the 1970s, in courses ranging from history and anthropology to economics and geography. But Mr. Galeano’s unexpected takedown of his own work has left scholars wondering how to deal with the book in class.

“Reality has changed a lot, and I have changed a lot,” he said in Brazil, adding: “Reality is much more complex precisely because the human condition is diverse. Some political sectors close to me thought such diversity was a heresy. Even today, there are some survivors of this type who think that all diversity is a threat. Fortunately, it is not.”

In the mid-1990s, three advocates of free-market policies — the Colombian writer and diplomat Plinio Apuleyo Mendoza, the exiled Cuban author Carlos Alberto Montaner and the Peruvian journalist and author Álvaro Vargas Llosa — reacted to Mr. Galeano with a polemic of their own, “Guide to the Perfect Latin American Idiot.” They dismissed “Open Veins” as “the idiot’s bible,” and reduced its thesis to a single sentence: “We’re poor; it’s their fault.”

Mr. Montaner responded to Mr. Galeano’s recent remarks with a blog post titled “Galeano Corrects Himself and the Idiots Lose Their Bible.” In Brazil, Rodrigo Constantino, the author of “The Caviar Left,” took an even harsher tone, blaming Mr. Galeano’s analysis and prescription for many of Latin America’s ills. “He should feel really guilty for the damage he caused,”