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CRITICAL ANALYSIS OF GLOBAL DEVELOPMENTS, TRENDS & IDEAS

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Latin America

Energy Reforms in Latin America: What the Mexican State Needs to Learn

in Academic/Latin America/Politics/Technology by
oil well

The growing importance of developing countries’ national oil companies to the global supply-demand balance raises questions about the emerging policies of association, objectives and regulations of these organisations. In particular, shifts in those policies will have a great impact on the future development of global oil and gas markets, not to mention the socioeconomic development of the companies’ host countries. National oil companies are expected to control a greater proportion of future oil and gas supplies over the next two decades, as these commodities in the mature producing regions of the OECD countries continue to show natural decline of supply. The International Energy Agency projects that most of the new hydrocarbons supply will come from the developing world in the next 20 years. Latin American countries will play a pivotal role in this transition, as the region possesses more than 20% of the world’s known reserves (Ortiz, 2011). Along these lines, Brazil, Colombia and recently Mexico have embarked on major restructuring of their energy sectors. In the early 2000s, the Colombian oil industry was waning: its production started to decline due to a lack of major new discoveries and output fell considerably from 1999 to 2004 (CAEAG, 2010, p. 6).…

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China in Latin America: Sister Country or Neo-Colonialist?

in Asia/Diplomacy/Economics/Latin America by
Rafael Correa Yi Xinping

Ever since the end of the 15th century, Latin America has been seen by outsiders overwhelmingly as a place rich in natural resources. In the 21st century, the most recent outsider, China, is as hungry for its raw materials as any other previous power. It needs Argentinian agricultural products for its fisheries and pig farms to feed its growing middle class. It needs Bolivian and Peruvian iron and copper to continue building its manufacturing industries, and Ecuadorian and Venezuelan oil to fuel them. Past encounters with foreign powers in Latin America reveal a patter of resource extraction and economic dependency that benefited primarily the outside power and the local elite. Some, most notably Venezuelan President Nicolas Maduro, in the region say that relations with China will be different, that China is a partner and a sister country, not an imperialist outside power. These optimists are hoping for a reinvention of the relationship between resource hungry outside powers and natural resource rich nations in the region. Unfortunately, Chinese recent forays into the region appear to be mirroring this tragic historical pattern.

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Decentralization Process in Peru

in Latin America/Law/Politics by
Lima Peru City

Ideally the modern state is supposed to generate the necessary basic conditions for its citizen’s wellbeing and continuously improve its own systems in order to improve its citizen’s quality of living. The globally trending prescription to achieve these aims is decentralization and local governance. Several countries, such as Korea, Brazil, Thailand, Uganda, Indonesia, and Peru, among others, have all recently tried to strengthen local governments. In larger countries and countries with diverse populations, such as Peru, it is especially necessary to disseminate the central government’s power and authority to local and regional governments. In that way, each sub-government can communicate with citizens directly and can serve them faster and more efficiently. According to The Economic Commission for Latin America and the Caribbean (ECLAC), Peru has developed its GDP 5.2% in the past 10 years. In addition, the United Nations Development Program (UNDP) Human Development Index (HDI) shows an increased HDI rate from 0.67 in 2002 to 0.73 in 2012. However, the problem that Peru faces is that the development of the country did not happen evenly in each region, but is rather predominantly concentrated in Lima, the capital of the country and the location of the central government. It would…

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