https://www.youtube.com/watch?v=hl1dMGJ6PE0
The complexity of today's challenges requires broad consensus to ensure the success of the necessary structural reforms, which has not yet been achieved.
The conference "The Major Challenges Facing Latin America" was organized by the Department ofInternational Studies at Universidad ORT Uruguay part of the activities of the Jean Monnet Module (ThinkEur), and took place on Friday, July 14, in the Mauricio Levitin Auditorium on ORT’s Pocitos Campus.
The event was led by Dr. Carlos Malamud—principal investigator at the Elcano Royal Institute and professor of American History at the National University of Distance Education (UNED).
Reform for Growth
"What I want to focus on are the major challenges facing Latin America in the global context," the expert began.
“It’s clear to everyone that a number of problems stemming from the pandemic’s effects still persist, given that Latin America was likely the region hardest hit by COVID-19, ”Malamud said.
He also noted that other internal issues in the region continue to hinder growth: “Issues such as corruption, insecurity, drug trafficking, and organized crime; political problems like polarization, the backlash against ruling parties, populism, and governance; as well as economic challenges.”
“When discussing the lack of growth, one must address the need to undertake various structural reforms that will enable a return to economic growth and stability, ”the expert said.
On this point, Malamud noted that, as is evident throughout the region, “undertaking structural reforms is no easy task. Although everyone proclaims the need to do so, when it comes to actually attempting it, it is difficult to reach the political and social consensus needed to move forward on that path.”
A fragmented region
During the conference, the expert discussed the region's interrelationships, emphasizing that:
“There is a level of fragmentation that prevents even the most basic consensus from being reached on any item on the agenda, and that has brought the regional integration process to a standstill; there is no intergovernmental cooperation.”
He added: “Some problems are unique to Latin America, while others—such as the erosion of liberal democracy—are shared with other regions of the world.”
From this perspective, he stated that it is important to take a comparative view. “If we focus exclusively on what is happening in Latin America, we may end up distorting our proposed solutions to the region’s challenges,” he noted.
Why is Latin America important?
For his part, the expert noted that a recent report by the Elcano Royal Institute, Why Does Latin America Matter?, aims to draw the European Union’s attention to the need to strengthen the bi-regional relationship.
“One of the report’s main conclusions is that Latin America is the only region in the emerging world that aims to reach the income levels of the most developed economies through democracy, rather than from a situation where authoritarianism is the prevailing political system,” Malamud said.
Democracy in Latin America
The expert stated that, according to Latinobarómetro—an annual public opinion survey conducted in Latin America—67% of Latin Americans believe that democracy is the best political system. “But also, when Latin Americans are asked how they see themselves on the ideological political spectrum, 68% place themselves in the center, ”he added.
“There is a strong current of opinion that, beyond the polarization and some protests, is committed to political stability.”
He also noted that “if one compares what is happening in other regions of the emerging world—in terms of respect for human rights or the rules of democracy—Latin America is leading the way.”
Crises
“Whenever people talk about the Latin American economy, the idea of a balance-of-payments crisis, a currency crisis, or some other kind of crisis quickly comes to mind,” the expert said.
In this regard, he noted that, between 1974 and 2003, one in three international crises originated in Latin America. From 2003 to the present, he stated that this figure has risen to one in six.
The European Union, the United States, and China
“China’s global presence is a result of the country’s strong growth over the past 25 years, which has enabled it to become one of the two major international superpowers,” the expert said.
However, he stated that China's presence in Latin America is smaller than its growth in recent years.
“There is constant talk of Chinese loans and the strategic way in which China approaches its expansion, as well as the dominance of these loans over those from the World Bank and regional development banks,” Malamud said.
“But if we look at other aspects, such as military or humanitarian relations, there is a significant difference between China’s presence and that of the United States or Europe in Latin America,” he added.
“When it comes to military ties reflected in arms sales, South America sources its weapons primarily from the European Union, while Mexico and Central America source theirs from the United States,” he said.
The expert also noted that, in the context of migration, Latin Americans tend to settle in the United States or Europe rather than in China.
Latin America and the Russia-Ukraine War
“For the most part, Latin American countries condemn Russia for violating Ukraine’s sovereignty,” Malamud said.
However, he pointed out that there are three countries in the region aligned with Russia: Cuba, Nicaragua, and Venezuela. In addition, countries such as Brazil and Mexico have also been observed to support Russia in certain cases.
When asked about Latin America’s stance on the war, the expert highlighted two points: “On the one hand, the tendency to view the conflict as something distant, and on the other, the strong anti-American sentiment prevalent in the Latin American mindset, which is shared across all social strata.”
In conclusion, he mentioned two important issues that he believed would be addressed at the 2023 EU-CELAC Summit , held on July 17 and 18 of this year, regarding the major challenges facing Latin America:
“The green transition, the transformation of the energy mix, and the expansion of renewable energy, as well as the digital transition.”
These are two major challenges which, according to Malamud, cannot be successfully addressed unless social and political consensus is reached.