Perspectives
The eclipse of an invisible empire
M Abdul Hafiz
Even as the world nervously watches the naked US aggression in the Middle East and elsewhere to fulfil the neo-cons' dream of building up a spanking new empire in its classical form, the US itself has been witnessing the gradual collapse of an "invisible empire" right in her backyard -- in Latin America. That's the message from the recently-held fourth summit meeting at Mar del Plata, Argentina. The message was clear that the Latin American countries could no longer be taken for granted by the US -- notwithstanding her strong standing and long-term interests in the continent. The waning US influence was writ large on the changing mood of the Latin Americans who amply demonstrated at the summit their growing desire for increased autonomy in their decision-making without US interference. It may be recalled that the US prevented European interference in Latin America by means of the Monroe Doctrine and as a result she faced no rival there. Yet the US shunned the model of European colonialists in their empire building and opted for not taking possession of foreign territories. As and when the attention of an ever-growing United States fell on richly endowed Latin American countries, she instead sent her goods to those countries to capture their markets. The American capitalists -- the banks, multinationals, and financial institutions -- duly patronised by their government heavily invested in railways, mines, and other undertakings and also lent money to the governments in Latin America. In this way American capitalists gained effective control of the smaller countries in the South and ran the banks, railways, and mines there to their advantage. That is to say, the US annexed the wealth, or a great part of it, of these countries. Even in the larger countries they exerted great influence because of their investment and money control. In the process the Americans built-up a vast empire in the South which is in fact, an economic empire wherein the exploitation and domination were exercised without any obvious outward signs. This modern type of empire without shouldering the "white man's burden" went on for the last 100 years in Latin America. As a matter of fact, the economic imperialism is the least troublesome form of domination for the dominating powers. The US was no exception and all she had to do was to bring the methods of exploitation to new perfection. The US-sponsored Free Trade Area for Americas (FTAA) had been one such project with the US grand vision of creating a single market for Americas from Alaska to Argentina. The FTAA has been the most important US project in recent times with its goal set during the first Summit of the Americas in Miami in 1994. The deadline for the conclusion of negotiations for it was January 2005. After several rounds of negotiations in the last ten years there was however a deadlock. The summit at Mar del Plata could not reach a consensus on when and how to resume the stalled negotiations. While the Mercosur countries have major problems with the US on the issue of agriculture and market opening, President Chavez of Venezuela came to the summit vowing to bury FTAA once and for all as part of his crusade against neo-liberalism. Although no one takes seriously the Bolivarian alternative, the Latin Americans are, by and large, sceptical about the recipe being offered by Mr. Bush. The FTAA negotiations are however indicative of the diminishing influence of the US and growing autonomy of Latin American countries from the US economic stranglehold. At the beginning of the FTAA negotiations, the US put forward two conditions: First, all the sub-regional groups such as Mercosur and Andean Community should be dissolved, second, each country should negotiate in its individual capacity and not as part of any sub-regional group. The Latin Americans said "No" to both these conditions and the US had to back down. This was perhaps the turning point when the Latin Americans, for the first time, stood up to the US pressure -- asserting with confidence the determination to pursue their own agenda. The new confidence, it is observed, comes mainly from their collective strength arising from regional integration. For example, Brazil gets more weight when speaking on behalf of Mercosur than as an individual country. Although the regional groups have their own problem of consolidation they are by now permanent phenomena as the leaders have realised the merits of collective strength. This realisation has already led to the launch of the "South American Community of Nations" in 2004. The regional integration is not just about acquiring political clout, it has changed the region's economic orientation also. For example, Mercosur membership has made Brazil more important for Argentina in trade than the US. In economic terms the US importance for Latin America has diminished also for other reasons. China is emerging as a major trade partner and investor in the region. The Chinese president announced in November, 2004 that his country's trade with Latin America would reach $100 billion in the next three years from $30 billion in 2004, and that China would invest $100 billion in the coming decade. In fact, China has replaced the US as the largest consumer of Chilean copper. Venezuela is trying to reduce its dependence on the US market for its oil by diversifying it to new markets, including China. Another reason for the growing divergence in approach between the two Americas is ideological. The political left is rising in Latin America and has already taken over the governments in Brazil, Argentina, Chile, Uruguay, and Venezuela. The leftist candidates elsewhere for elections due next year are leading in opinion polls. The governments in Latin America worry more about their own fundamental problems of poverty and unemployment rather than about the US priorities of the Iraq war and terrorism. They are disenchanted with the Washington Consensus that has failed to address their core development problems. They have also realised that they should find solutions to their problem without depending too much on the US. The Mar del Plata summit has confirmed the trend of declining influence of the US in Latin American affairs and an increasing assertiveness of the Latin Americans in pursuing their own agenda with more confidence. It is only a matter of time before the American economic empire in Latin America may ultimately be dismantled unless, of course, some miracle takes place to protect this hidden American borough. Brig ( retd) Hafiz is former DG of BIISS.
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