Subnational Economic Nationalism? The contradictory effects of decentralization in Peru

Across the third world, transnational corporations (TNCs) and subnational governments (SNGs) are coming into new forms of contact as a result of liberalization and decentralization. Despite scholarly expectations that subnational governments will respond by seeking out foreign direct investment, in much of Latin America these governments are confronting rather than courting transnational corporations. Conceptualizing this phenomenon as ‘subnational economic nationalism’, the article explores both how subnational governments are challenging neoliberalism and why these challenges often fail to subvert neoliberal outcomes. By examining two struggles against transnational capital that had different outcomes but that took place within a single subnational jurisdiction (Arequipa, Peru), the article argues that decentralization can work at cross purposes. While voters are increasingly demanding that elected subnational officials adopt nationalist positions vis-à-vis TNCs, these same officials often seek financial support from TNCs so that they can compete successfully in the subnational elections that have been introduced by political decentralization.     

China’s road from socialism to global capitalism

Abstract

China’s engagement with global capitalism is driven by the emergence of a statist and private transnational capitalist class. Nevertheless, aspects of China’s foreign policy from the Maoist period still echo today. Consequently, elements of third world solidarity and opposition to Western domination continue to exist as China’s past is redefined to further its transnational strategies in Latin America and the US. The main Chinese investments in South America have been in energy and infrastructure among the left lead countries of the Pink Tide. In the US, Chinese capital has grown despite heated political rhetoric. This paper will examine how economic ties in South and North America reflect past and present conditions, and if China has initiated a non-Western globalisation.     

Transnational Capital,the US State and Latin American Trade Agreements

This paper examines the role of US-based transnational corporations in advancing trade, investment, regulatory and intellectual property rights provisions within NAFTA and DR–CAFTA. I explore the linkages between US firms, the US state and investment patterns in Mexico, Central America and the Dominican Republic in order to develop a framework for understanding the political economy of these regional trade agreements. I locate the timing of each of these agreements within the context of the goals of a transnational interest bloc that includes US-based transnational firms, US state officials and regional business interests and state bureaucracies in Latin America, with each trying to utilise regional agreements as a substitute for failed multilateral initiatives as well as a springboard for advancing a more aggressive set of protections for investors within bilateral investment treaties. In order to determine the extent to which transnational firms based in the USA have influenced these trade agreements, I explore three interrelated aspects of business influence: the extent to which transnational firms with investment interests in Mexico and Central America were involved in organisations that had regular access to key US policy makers; the historical development of a transnational interest bloc that has linked US firms and the US state to transnational capital and state bureaucracies in Mexico, Central America and the Dominican Republic; and the extent to which the same group of transnational firms has been attempting without success to advance a policy agenda in the WTO that incorporates many of the provisions of NAFTA and DR–CAFTA. The failure of this transnational interest bloc to effect substantial changes in WTO policies has led the bloc to rely on regional trade agreements to pursue its interests.     

Deconstructing invisibility: race and politics of visual culture in Brazil

Abstract

This paper aims to discuss race relations and power-building in Brazil. It is well known that the Iberian colonizers developed special ways of imposing their supremacy, dissimulating the skin color standards to provoke some type of beliefs about shade stratification among African descendents, indigenous and mixed-race people. For the first time in South America there are deconstructive projects of that colonial paradigm still alive and strongly embedded in the media landscape. However, new identity politics and attitudes have been emerging amidst this old social cognition. This paper will discuss some speculative thoughts and power-building scenarios on new representations and struggles derived from these lived forms that are emerging in the new racial formations in Latin America. The question is: what will nation-building in the midst of this changing imagery be like? This paper proposes that a civic pedagogy is the only answer to rendering this phenomenon visible.     

Can constituent states influence foreign and security policy? Coalitional dynamics in India

Abstract

The Indian state has undergone significant transformation since the late 1980s, most notably the extensive decentralisation of power, with consequences for the formation and implementation of Indian foreign policy. This article explores the role of India’s constituent states explaining the extent and limitations of their autonomy and influence. It deploys and extends the state transformation approach to incorporate considerations of issue area and coalition type. Under coalitions led by typical national parties, subnational governments are less likely to influence foreign and security policy. Under the same coalition type, they are more likely to behave autonomously on non-traditional security issues such as sharing of water resources with neighbouring countries. They are less likely to behave autonomously on security issues such as the transnational expression of ethnic solidarity. Under coalitions led by atypical national parties or regional parties, subnational governments are likely to exercise a moderate level of autonomy and influence on issue areas such as transnational expression of ethnic solidarity. They are likely to exercise a high level of autonomy and influence on non-traditional security issues such as sharing of water resources. The framework is illustrated through Tamil Nadu’s activism on Sri Lanka, and West Bengal’s position on water-sharing with Bangladesh.     

Imperialism and Resistance: Canadian mining companies in Latin America

David Harvey's concept of accumulation by dispossession is a useful framework for understanding the predatory activities of Canadian mining companies in Latin America. Capitalist imperialism is rooted in the logic of a socioeconomic system that is driven by the competitive pursuit of profit based on the exploitation of labour, and which is prone to over-accumulation. Capital, backed by state power, pursues a spatial fix to resolve the systematic crisis of over-accumulation. The creation of new spaces of accumulation is not an innocuous process; it inevitably involves the forceful and violent reorganisation of peoples' lives as they are subordinated to the whims of capital. Strategies of accumulation by dispossession by capital therefore commonly spawn popular resistance from the affected communities. The Canadian mining industry is the largest in the world, and much of its outward investment targets Latin America. The Canadian company share of the larger company exploration market in Latin America (and the Caribbean) has grown steadily since the early 1990s, up to 35% by 2004, the largest by far among all its competitors, with seven Canadian companies among the top 20 mineral exploration investors in the region from 1989 to 2001. This paper charts these trends of Canadian mining expansion in Latin America and then focuses on the community, environmental and worker resistance it is generating in the cases of Chile and Colombia.     

New Political Movements and Governance in Latin America

ABSTRACT

This article argues that traditional governance in Latin America is in crisis. Globalization and IMF-advocated neoliberal economic policy have left the masses behind, despite the growth of democracy. Traditional governing structures often cannot respond to popular needs, and they are being challenged by a series of new, highly politicized social movements like the indigenous and peasant movements in Bolivia, popular assemblies in Argentina, and the Landless Movement in Brazil. In the process, new forms of popular mobilization and participatory decision making are challenging entrenched authoritarian attitudes and practices and making way for new political-bureaucratic structures and a new political culture.     

Building Support for the Asad Regime: The Syrian Diaspora in Argentina and Brazil and the Syrian Uprising

ABSTRACT

Brazil and Argentina are hosts to two of the largest populations of Syrian descent in Latin America. While Syrian immigrants and their descendants have usually defined their identities based on broad Arab nationalistic references, creating and affiliating themselves to Syrian-Lebanese and/or Arab institutions, the ongoing civil war in Syria has triggered an unprecedented mobilization around specifically Syrian issues. Most diasporic organizations have shown an unconditional support for the Ba?thist regime. This article aims at understanding the political mobilization of the Syrian diaspora in Argentina and Brazil, as well as unveiling how Bashar al-Asad's government has tried to build on their support.     

Privatising the war on drugs

A defining feature of the ‘9/11 wars’ has been the prominent role played by private military and security companies (pmsc). The growth of this market for military and security services has not gone unnoticed. Yet the role pmsc have played in supporting the US-led war on drugs has largely gone under the radar, both literally and figuratively. The aim of this article is to look at the activities of pmsc funded by the USA in Latin America, and to consider the specific consequences that arise from employing them in the field of counter-narcotics. It is argued that the use of pmsc further entrenches a costly and unsuccessful way of dealing with drugs. There is a need to move from a strict prohibitionist stance and consider alternatives to the war on drugs approach, but the use of pmsc creates another strong vested interest in maintaining an increasingly problematic and costly status quo.     

The International Finance Corporation and the emerging market funds industry

Linking the world’s core equity markets with semi-peripheral and peripheral equity markets has been a fundamentally different process from linking core markets with each other. International financial institutions have played a larger role in core‐periphery equity market integration, and issues of corporate governance assume greater importance in the core‐periphery cases. Illustrating these differences, this article considers the creation of the Korea fund, one of the early country funds in an emerging market promoted by the International Finance Corporation (IFC). The case shows that increasingly sophisticated financial instruments, like country funds, alter the structure of the international financial system in such a way as to reposition governments in developing market economies with respect to their domestic financial systems; allow for some international capital inflows without loss of corporate control; and make diversification possible for a transnational class of investors. Moreover, the article proposes that international financial institutions like the IFC can alter the structural context of a particular market within which various financial actors later strike deals. In the light of the process of coalition building elaborated here, the article reserves a role for considerations of both multilateralism and a state’s position in the world system in a body of literature heavily concentrated on state-level political activity.     

“自由”与“不自由”:高科技跨国公司的政治化与国家化

由于高科技或新技术本身具有一定的公共产品特性,并且决定着一个国家的综合国力,因此高科技的发展与一国内部政治及国家间竞争的关联度逐渐加大。一方面,企业利益进一步与国家利益重合,高科技跨国公司在开展跨国业务时愈发受到母国与东道国“政治正确”的规制;另一方面,在逆全球化背景下,国家对技术的理解形成了较为明确的技术主权观念,高科技跨国公司与母国之间的“捆绑”由此亦愈发明显。在此背景下,随着西方排他性技术同盟的形成,非西方的高科技跨国企业遭受打压的态势在中短期内并不会缓解,国家间、企业间的技术合作将极大受阻,全球技术进步的成本和门槛也将因此显著提升,最终影响人类的整体利益。对中国而言,一方面,要继续扩大开放,坚持技术多边主义,积极推动跨国技术合作;另一方面,仍需凸显技术进步过程中的国家角色,建构国家引导下的以高科技跨国企业为主体的技术创新体系,最终实现关键核心技术的自主可控。     

Transnationalization,Social Integration,and Capitalist Diversity in the East and the South

This article analyzes the deep and shallow modes of international integration, semicore, semiperipheral, and peripheral profiles of global insertion, and the presence and absence of transformative state capacity and social cohesion, as interacting dimensions of capitalist diversity in post-socialist Eastern Europe and Latin America. On these grounds, it is argued that Cardoso and Faletto’s dependent development paradigm maintains validity. When adapted to the new conditions, their approach is able to capture the overlapping and divergent aspects of capitalist development in both regions. Recent patterns of development demonstrate that although dependency, stemming from the unequal distribution of resources, roles, and opportunities, continues to be an important aspect of the international division of labor, it ceases to contradict even complex forms of industrialization. Similarly, notwithstanding the asymmetrical power relationships characterizing them, the new transnational integration regimes allow and sometimes help formation of new nation states with improved regulatory capacities. Finally, dependency does not necessarily undermine domestic social inclusion. Rather, it is up to the democratic competition to strike a balance between the requirements of promising international and socially acceptable domestic integration.     

A Coalition of Coalitions: International Cooperation Against Terrorism

The term “coalition against terror” is commonly used, but is fundamentally misleading. Multiple coalitions against terror exist in different issue areasincluding military, financial, law enforcement, intelligence, and reconstruction. These coalitions are independent of each other, and yet inextricably linked, both enabling and constraining each other's actions. Actions taken by the military coalition can undermine the intelligence coalition, for example, by destroying documents and other information during attacks. Overlapping membership may also cause challenges, for countries who disagree with the approach of one coalition many restrict their cooperation with the others. A successful counterterror strategy must account for the interactions of the various coalitions, understanding how actions taken in one area may cause tradeoffs and unintended consequences in others.     

Changing development models in small economies: The case of Jamaica from the 1950s to the 1990s

By examining in detail the successes and failures of different development models in one developing country over a four-decade period, this article sketches a development model for small economies in the 1990s as an alternative to the neoliberal model pushed by the International Monetary Fund. It reviews the experience of Jamaica with various development models from the 1950s to the 1990s, with special attention focused on the experience of the Seaga government of the 1980s. It also draws lessons from the successful development experience of small European countries and of the East Asian Newly Industrialized countries. In normative terms, the alternative development model attempts to combine growth with equity and democracy. In analytical terms, it takes account of the constellation of domestic forces and appropriate political strategies, as well as of international economic and political conditions. The main features are a strong role for the state in economic interactions with transnational corporations, in identification of export markets and promotion of export production, in selective protection of domestic industry with an export potential, in promotion of agriculture linked to industrial development, in improvement of human resources and promotion of regional economic integration. Within these parameters, a crucial role is assigned to the domestic private sector and a complementary one to foreign investment. Distribution is to be addressed primarily through distribution of productive assets and access to health care and education. Evelyne Huber is professor of political science at the University of North Carolina, Chapel Hill. She is a coauthor ofDemocratic Socialism in Jamaica andCapitalist Development and Democracy. She is currently involved in research on the changing role of the state in Latin America and on comparative social policy. John D. Stephens is professor of political science and sociology at the University of North Carolina, Chapel Hill. He is a coauthor ofDemocratic Socialism in Jamaica andCapitalist Development and Democracy. His current research focuses on options for social democracy and comparative social policy.     

The Presidentialist Tradition in Latin America

Abstract

The diffusion of presidentialism to Latin America has led to its distortion. The North American constitutional pattern, termed presidentialism under separation of powers and its most distinguishing feature, presidential leadership, while modeled in Latin America, has rarely led to democratic–constitutional government a la the United States. The institution of the presidency in Latin America is also typical for nondemocratic regimes in the region. One of the most widely accepted and widely professed facts in Latin American politics is the dominant role of the president but, curiously, most discussions of presidentialism are limited to the US and comparisons with Great Britain. Few studies of Latin American chief executives lend shape to the corpus of scholarly literature, despite the region's long experience and ejecutivismo. The gap, and this article, should be taken as a stimulus for more systematic explication, analysis, and research.     

The Enemy of My Enemy is My Friend … The Dynamics of Self-Defense Forces in Irregular War: The Case of the Sons of Iraq

This article assesses the effect that leveraging civilian defense force militias has on the dynamics of violence in civil war. We argue that the delegation of security and combat roles to local civilians shifts the primary targets of insurgent violence toward civilians, in an attempt to deter future defections, and re-establish control over the local population. This argument is assessed through an analysis of the Sunni Awakening and ancillary Sons of Iraq paramilitary program. The results suggest that at least in the Al-Anbar province of Iraq, the utilization of the civilian population in counterinsurgent roles had significant implications for the targets of insurgent violence.     

Characteristics and performance of Japanese foreign direct investment in latin America

This paper describes the characteristics of Japanese foreign investment in Latin America. In examining FDI patterns, we identify the countries and industries most attractive to Japanese multinational corporations, the preferred modes of entry, and the post-entry performance of these subsidiaries. We find that most Japanese FDI has occurred in Brazil and Mexico, that joint ventures are the most common mode of entry, and that performance varies by country and mode. The observations have implications for three groups of executives: managers of non-Latin American firms, managers of Latin American firms, and public policy makers.     

Recent narcotics and mafia research

Abstract

Research into narcotics‐related issues is underway all over the world. No country can afford to ignore the social and economic consequences of drug production, distribution, consumption, or the laundering of the profits thereof. The article examines recent and ongoing research in Latin America, the United States, the United Kingdom, and within the context of the European Community. Latin American studies relate drug production to wider problems of economic development, whereas typical “consumer country” studies are more concerned with criminological aspects and demand reduction policies. The drugs/crime link is seen to be closely bound up with the illegal context of the drugs market, thus the option for legalization is considered. The economic growth of the Italian mafia is explained. The author describes recent international agreements on money laundering and precursor chemicals, and concludes by stressing the value of international cooperation on all aspects of narcotics research.     

Coalitions and corporate choices in Argentina, 1976–1994: The recent private sector support of privatization

After sabotaging almost every privatization since the 1970s, the Argentine private sector suddenly began to support privatizations in 1991. While public choice approaches that stress the cost impact of policy can explain the anti-privatization behavior of the private sector prior to 1991, they are less successful at explaining this recent shift in behavior. This article explains this shift by focusing on political coalitions. By expanding (or reducing) the set of attainable outcomes, political coalitions shape the political choices of firms. Prior to 1991, the rent-seeking private sector led a huge multi-sectoral anti-privatization coalition that repeatedly preempted the Executive from privatizing. In 1991, this coalition disintegrated as a result of a reordering of economic institutions. Devoid of its traditional allies, the private sector chose to acquiesce to privatizations. Thus, political coalitions can be more important in shaping firm behavior than economic considerations such as the cost-impact of public policy or the size of rent markets. This article also explains why, in many countries confronting comparable anti-privatization coalitions, privatizations are likely to emerge with an unexpected mixture of competition-enhancing and competition-restricting policies. Javier Corrales is assistant professor of political science at Amherst College, specializing in comparative and international politics of Latin America. He is currently writing a book on the effects of executive-ruling party relations on the implementation of market-oriented reforms in Latin America. Newspapers and magazines (from Buenos Aires)ámbito Financiero Clarín El Cronista Comercial La Nación Noticias The Review of the River Plate     

csr,Tax and Development

This article explores and critically examines the connections between tax and development on the one hand and tax and corporate social responsibility (csr) on the other. It does so because, while there is increasing recognition of the importance of taxation to efforts to resource the state and to finance ways of tackling poverty, there is a surprising lack of attention to tax avoidance and evasion as a csr issue for transnational corporations operating in the South, even among those companies that pride themselves on being csr leaders. We review evidence of these trends, provide an empirical analysis of how leading firms deal with tax in their corporate reporting and make the case for including taxation as a new frontier in progressive csr.