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Latinoamérica, entre USA y China – our article in 2019
Peter Kopa, 28.7.2023, Prague
Situation in Latin America today
The information below suggests the following conclusions:
Latin America is of such importance that Latin Americans themselves are the last to become aware of it. This is evidenced by the enormous Chinese investments, which have long since surpassed those of the USA. Europe has preferred to remain in fourth place behind China, the USA and Russia. This situation demands that Latin American governments and peoples overcome domestic corruption once and for all and lay the foundations for a thriving economy based on their own strengths and great natural resources. In this way, dependence on the aforementioned big three can be reduced.
But there are many more factors towards the consolidation of Latin America as an economic and political leading block: to provide fiscal incentives for investment, to create a development bank, to encourage exports and to adapt education to the priorities to be set by the government. At the school level, to favor an integral education, based on traditional values, while combating globalist pressures that demand the embrace of absurd ideologies such as LTGB, WOKE, genderism and the brutal sexualization of children. A number of countries, such as Paraguay, El Salvador and others, have already shown firm rejection in this regard. Other positive factors are the healthy demography, the enormous natural wealth, warm climate and a great logistical facility, thanks to the fact that it is crisscrossed by large rivers and surrounded by oceans.
Then it is essential to favor demographic growth and the stability of laws that guarantee a market and an open economy that can slow down the flight of capital and brains to richer countries. It is worth looking at and studying how the leading countries of the West have managed to progress historically, without state dirigisme, as we can see in Russia and China.
History of the Latin American situation
In 1823, US President James Monroe proclaimed the division of the world into “spheres” and demanded the end of all European interference in the Latin American republics that had become independent. “America for the Americans” was his doctrine, which led to the powerful economic and political expansion of the United States throughout the continent. Monroe’s vision was accompanied by the threat of military intervention if necessary. This attitude changed a few years ago, as can be seen in the link above.
The result is well known: For one hundred and fifty years, and especially during the Cold War, the United States, as the hegemonic power, went so far as to install or remove presidents. Since 1945 the US feared the spread of communism, so the US preferred to support undemocratic regimes, especially in the Caribbean and Central America. CIA interventions have been real, thus laying the foundations of anti-Americanism. But thanks to the USA, Fidel Castro’s Cuban Revolution did not spread to some other countries, as Russia wanted, and American investments have created millions of jobs and have given birth to know-how transfers in many sectors. 20 aňos de infiltración comunista en Latinoamérica
Europe’s attitude today
https://www.youtube.com/watch?v=dTvGiUY_Iy4
https://www.youtube.com/watch?v=uhyc5GIfpC4
BBC Mundo reports on 18.7.23 on the tone of the announcements in Europe, during the summit of leaders of the European Union (EU) and the Community of Latin American and Caribbean States (CELAC) that took place in Brussels. The European Commission announced that Latin America will receive US$50.6 billion over the next four years as part of the Global Gateway, a European investment program for sustainable projects in sectors such as health, education and technology. The Europeans are also rushing to finalize the trade agreement with Mercosur (Brazil, Argentina, Paraguay and Uruguay) that has been under negotiation since 1999.
Throughout the Cold War, Europe never really sided with Latin America, but rather the Realpolitik of German Chancellor Willy Brandt took precedence. Spain, for its part, for three centuries looked upon its former colonies as children who had abandoned their mother. For more than two centuries, the mentality and institutions of the colonial era have remained virtually intact, except that the Creoles took over and became independent from the Spanish. Spain was a colonial power in Latin America for three centuries and never seriously pursued a policy of decolonization.
Does Europe still have some relevance in Latin America today? Yes, because the majority of both the Latin American political “left” and the political “right” represent social democratic ideas, fight for progress and justice and want the EU to become strongly involved, not only as a counterweight to the USA, but also towards China, a fact that is causing more and more concern. Europe and especially the USA have not seen the Chinese onslaught in time.
Chinese influence
While Europe had other priorities, Russia and China seized the moment and massively increased their economic assistance. Without Chinese investments and loans, some Latin American countries would have faced enormous problems or even bankruptcy.
China is investing huge sums in infrastructure projects, such as the gigantic expansion of ports: one of the largest is being built in Ilo (southern Peru), because that is where the Transoceanic highway ends, which runs from Santos to Peru via São Paulo (the highway crosses nature reserves). Another gigantic port is being built in Chancay, north of Lima: “It could become the Shanghai of South America”, they say. Everywhere new airports are being built, transport routes opened, mines expanded.
Since 2000, China has signed 10 bilateral treaties, three of them in Latin America (Chile, Costa Rica and Peru). Since then, it has worked to become the leading investor in the region through its state-owned and private companies, with investments of more than US$ 100 billion annually.
Brazil is the first market where companies from the Asian giant have deposited their capital. Between 2007 and 2021 they have invested more than US$ 70 billion in more than 200 projects in that country. According to figures from the Brazil-China Business Council, in 2021, Chinese firms initiated 28 new projects in the largest Latin American economy, the second largest figure ever recorded in the nation’s history, worth US$ 5.9 billion, which represented an increase of more than 200% compared to 2020. Sooner or later, China will collect its dividends in Latin America, which could mean, in the worst case scenario, the pretension of a deep political and economic colonization, which would go much further than the decreasing influence of the USA in certain countries.
21 countries have already joined the new Silk Road, promoted by Beijing. However, China is already omnipresent: there are far-reaching Chinese plans for Argentina, Beijing’s influence in Brazil, Chile and Peru is growing. Mexico, for its part, benefits enormously from the Chinese companies that are increasingly setting up in the north of the country because of its proximity to the U.S. market.
Russian influence and other factors
Russia, for its part, has not stood idly by and is particularly involved in Venezuela, Nicaragua and Cuba. The country is selectively expanding its media influence through radio and television programs: Russia Today is omnipresent and often influences public opinion. The impact of social networks should also not be underestimated.
Europeans are lagging behind. Deutsche Welle and other Western broadcasters – with the exception of the BBC – have only modest resources, their number of users remains manageable. Added to this is the media presence of the financially strong evangelical churches, which hold very traditional or reactionary positions and can decisively influence elections in countries such as Peru, Guatemala, Brazil and Colombia. The result of all this is a toxic mix that will eventually exert a great influence on political and economic decisions in Latin American countries.
