Latin America and a post pandemic world.

The post pandemic world is becoming one of strong competition for political support, access to capital and investments. Chinese power is obvious and its push against United States does not significantly differ from a similar drive against Great Britain in the past.
Ricardo Israel.
Available information indicates that the CV-19 virus will not disappear and as it has happened before in history, human beings will have to learn how to live together, including periodic vaccinations.
Adaptations will also be needed for the social, political and economic changes in a world that already has winners and losers, and as a result, Latin America seem to be part of the last, and data shows that even Africa could have taken better decisions.
Individual countries could have done better than others, but as a region and compared to other underdeveloped areas, Latin America could have gone back, including its relation with China which has overcome United States as the main trading partner for many nations. As an example, in 2020 its main institutional banks (the equivalent to a Development Bank and an Import-Export Bank) were mostly absent and were not supporting new sovereign loans. This fact should be placed in a record where according to the Washington based think tank the Inter-American Dialogue, since 2005 China had contributed with US$ 136.000 million to large projects.
Africa has been incorporated better to the biggest infrastructure initiative in the world known as the Silk Road, where despite huge investments in individual countries, as a region Latin America is increasingly less important.
China has provided financial support to many underdeveloped countries, mostly to buy from Chinese corporations, but Latin America has not got preferential treatment as a region and outspoken ambassadors have suggested that they are not happy when they are not welcome, and by some political and economic decisions taken.
It is an undeniable fact that elections in Argentina, México, Perú and other countries have produced governments and development roads that are not in favor of open markets and foreign investment. Chile benefited for years of its political stability and economic growth, but the political forces behind those policies are today a minority among those elected to write a new constitution, so probably the new legal framework will be similar to their neighbours.
Asia, particularly China, United States, islands like Australia, small countries like Israel seem to prosper in the new stage, as usual winners and losers. All over the world debt has risen as well as fiscal deficit and increased poverty. Probably we shall witness a sort of battle for scarce resources in terms of political support and access to capital markets.
Political and economic decisions which are today popular in the region belong to those who do not believe in that development model, and this fact will be important in any future renegotiations of foreign debt. Even if there is a continue interest by foreign investors and some countries grow, the new realities could stop investments and produce capital outflow.
Latin America is also experiencing a lack of interest from United States. Only drugs and immigration seem to be important for Washington and not even competing with China arouses enough interest. For the region Biden’s White House does not differ much from Obama’s or Trump’s. Nevertheless, the Spanish or Portuguese speaking region does not know what to do in this new stage. Many countries requested that United States should not intrude, and when this became the new normal there are almost no proposals coming from the region, which is also a relief for castrochavist governments.
Attitudes from governments are decisive, because in areas like mining, for huge transnational corporations to remain is always better than backing out, and thus the deference to agreements is of paramount importance. For the same reason, the present trends are highly visible because they go in an opposite direction to what is taking place in the rest of the world.
The post pandemic world is becoming one of strong competition for political support, access to capital and investments. Chinese power is obvious and its push against United States does not significantly differ from a similar drive against Great Britain in the past.
(*) Lawyer (University of Chile, University of Barcelona), Doctor (Ph.D.) in Political Science (Government, University of Essex), former presidential candidate (Chile, 2013)

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