U.S. Perspectives and Foreign Policy in Latin America Essay

U.S. Perspectives and Foreign Policy in Latin America - Essay Example The BBC asserted that while the U.S. government has been busy implementing its war against terrorism in Iran and Afghanistan, its relations with Latin America turned sour, from Mexico down to Peru. Strong anti-American feelings, or what one Peruvian leader called "the neo-liberal economic model that has failed to benefit our nation", converted into a string of electoral victories by what the West perceives as left-leaning governments. 2 A "leftward" drift is apparent in Latin America's southern hemisphere since the start of the decade. In Venezuela, leftist Hugo Chavez garnered 56.93% of the votes in 30 July 2000. In Brazil, center-Left Luis Inacio LULA da Silva won 61.27% in the second round of elections in October 27, 2002. In Argentina, left-leaning Nestor Kirchner was sworn in as president on May 25, 2003 to a four-year term of office after his rival, Carlos Menem, decided to stand down. In Uruguay, Tabar Ramn Vzquez Rosas of the Frente Amplio garnered 51.94% in the October 31, 2004 elections. In Bolivia, left-wing Evo Morales won a historic 54% of the vote in 18 December 2005. In Chile, center-Left Michelle Bachelet's second round votes of 53.49% beat Michelle Bachelet in 15 January 2006. In Peru, center-Left Alan Garcia beat Ollanta Humala in 4 June 2006. 3 Lula is again expected to win in the upcoming run-off elections this 29 October 2006. On December 3, Venezuela's Chavez will face liberal democrat Manuel Rosales. Elsewhere in the region, leftward shifts that are not necessarily anti-U.S. have also been observed in Honduras, Haiti, and Costa Rica. Former Nicaraguan Sandinista Party Chief Daniel Ortega will make another presidential re-election bid in November 2006. II. Independence, Regional Integration and Petroleum Politics Noam Chomsky, the renowned linguist and political analyst, noted in June 2006 that for the first time since the Spanish colonization, many countries in the hemisphere are "moving towards a degree of independence and towards a degree of integration." Petroleum-oil and gas-is a key issue. Chomsky adds that the United states is "terrified" considering that the largest energy producer in the hemisphere is Venezuela, which is one of the five founding members of the Organization of Petroleum Exporting Countries (OPEC). Bolivia, with its vast gas reserves, is second to Venezuela. 4 Last February, U.S. secretary of state Condoleezza Rice accused Chavez of "Latin brand of populism that has taken countries down the drain," and that Venezuela's relationship with Cuba is "particularly dangerous." 5 A controversial figure next to Venezuela's Hugo Chavez is Evo Morales of Bolivia. Last March 2006, Noam Chomsky said of Evo Morales's victory: "Morales' election reflects the entry of the indigenous population into the political arena throughout the continent. Along with other popular forces, indigenous people are demanding control over their own resources, a serious threat to Washington's plans to rely on resources from the Western hemisphere, particularly energy." 6 Otto Reich, former assistant secretary of state for the Western hemisphere and adviser to President George Bush, presents a different view however. In the same BBC interview with Noam Chomsky regarding Evo Morales challenge to the

Macroeconomic Performance and Strategic Decisions Essay - 1

Macroeconomic Performance and Strategic Decisions - Essay Example Kazakhstan is an emerging economy in Central Asia and is one of the former Soviet republics. Each of these countries would be analysed on four main areas. The analysis would outline the four parts of this paper. Part one is a summary of the macroeconomic performance of each country over the last three years (2004-2006). Part two is a critical evaluation of the economy as a target market for exports. Part three is a critical examination of advantages and disadvantages of the economy as a potential source of inputs into a manufacturing company. Part four is an analysis of the strengths and weaknesses of the economy as a location for foreign direct investment or FDI. Table 1 summarises key economic indicators for these countries. The researcher acknowledges the sources in the Bibliography. The UK, with a total GDP of $1.8 trillion growing 3.1% annually is the world's fourth largest economy and has a population of 59 million with high disposable incomes, making it one of the best gateways to penetrate European markets with a per capita income of $30,447 at purchasing power parity. This former world superpower is the world's 6th freest (of 155) economy (Heritage, 2007, p. 381), the 10th (of 125 countries) most competitive nation on earth (World Economic Forum, 2006, p. xvii), and the world's 21st most competitive economy, which includes sub-economies that are not states or countries like Catalonia in Spain (IMD, 2006, p. 7). The Monetary Policy Committee (MPC) of the Bank of England (BOE) keeps a close look at the inflation rate that is only slightly rising between 2 and 3% annually by monitoring interest rates (BOE, 2007). The U.K. uses two inflation measures: the Retail Price Index (RPI) and the Consumer Price Index (CPI). Both are similar but with minor differences in composition, coverage, and weighting of prices in the index. Since December 2003, the CPI has been used for monetary policy with a target of 2.0% on average over time (BOE, 2007). The sterling exchange rate remains strong against the U.S. dollar and stayed within the range of 0.58 to 0.53 by end-2006. The sterling weakened against the Euro as expected from 0.69 to 0.72 by end-2006, a trend expected to last until end-2007 depending on Eurozone interest rates changes. These currency movements were affected by the weakening of the U.S. economy and a strengthening Eurozone with respect to the UK, signifying low currency volatility due to sterling's lack of attractiveness as a medium for short-term capital flows in currency markets caused by the UK's flat interest rate curve (BOE, 2007, p. 2). The UK stock market continued to rise, returning 22.0% up to December 2006, continuing a two-year trend, with the FTSE 100 index closing higher by end-2006. The UK equities market is expected to follow its upward trajectory in 2007 on the back of stable prices and renewed business and consumer confidence. Hong Kong Special Administrative Region (HK SAR) The HKSAR celebrated last July 1, 2007 its tenth anniversary since its handover by the UK to the People's Republic of China. HKSAR retains its unique status as a Special Administrative Region until 2047 and hopes to remain as the world's most liberal capitalist economy whilst at the same time being a part of the largest and most progressive Communist nation with