Latin America

Latin American Independence

- Economic Front: hard regulations and economic control from the metropolis through high tributes

- Socio-politic Front: based on revolution ideals coming from the French and the American revolutions.

Background:

- 1781: the Inca Julian Tupac Catari besieged in 2 occations the city of La Paz.

- 1789: Conspiracy in Brazil by miners, landowners, cleric men and professionals against the Portuguese Crown extortions. Led by Joaquim Jose Silva Xavier.

- 1797: Manuel Gual and Jose Maria España led the movements in Venezuela to create an independent republic and to abolish slavery and tributes.

- 1780: the Tres Antonios movement in Chile that dreamed of a democratic republic.

- 1791: in the French territory of Santo Domingo (Haiti) where the revolution managed to establish an autonomous government.

Juntas de Gobierno (government summits)

Due to the war between France and Spain due to Napoleon’s imperial wishes over Portugal and Spain, the South American “caudillos” saw the opportunity to take actions and the year 1810 marked the beginning of a series of government summits in almost all of the Spanish colonies.

Caracas, April 19th, Buenos, Aires: May 25th, Bogota, July 20th, Santiago de Chile, September 18th, Quito, September 19^th

Juan Pablo Morillo

He returns to the colonies in 1815 with the only objective of getting them back. He manages to take Caracas, Cartagena and Bogota, where he establishes the “Terror Regime”. He subjugated all the revolutionary movements in the viceroyalty of Nueva Granada, Alto Peru, Chile and Cusco.

Haiti

- Under the French crown. The independence movement was first led by Toussant Louverture (1791) who was defeated by the French expedition (Napoleon’s brother in-law). But in 1803 the “black opposition” continued under Jean-Jaques Dessalines and on the 1^st of January 1804) the independence was proclaimed under his imperial rule until 1806 when he was assassinated and the new Republic was established.

- Civil war: in 1806 Haiti was divided into two states (north and south) and the war continued until 1820 when Jean-Pierre Boyer was elected president and unified the country.

- Chile: San Martin defeated the Spanish army on Chacabuco in 1817 and in Maipo in 1818. He did not take the presidency, which was taken by O’Higgins, and continued to go northward.

- The Great Colombia: Boyaca battle (1819), Carabobo battle (1821), Pichincha battle (1822). All battles were fought by Simon Bolivar.

- Peru: Junin battle in August 6^th→ Simon Bolivar.

- Bolivia: December 9^th→ Simon Bolivar.

- Brazil: its independence was rather pacific. After Spain withdrew from Portugal, the Portuguese royal family retuned to its country, leaving the firstborn child, Don Pedro, as the regent prince in Brazil in 1821. On the 7^th of September of 1822 he shouted “independence or death”. Weeks later the Empire of Brazil was born with the crowning of Pedro I on October 12^th 1822.

In 1830 took place the end of the Great Colombia with the newly born independent republics of Nueva Granada, Venezuela and Ecuador.

DICTATORSHIPS

“Dictatorship" in Latin America normally refers to right-wing rulers who maintain themselves in power through overwhelming military force.

- New states are like children who need parental guidance.

- Failure of civilian institutions permitted persistent problems of poverty and corruption.

- Caudillo vs. brute military force.

- Fidel Castro: leadership of classic caudillos.

On the other hand, the Somoza and Pinochet dictatorships in Nicaragua and Chile maintained power more through repressive means than through personalist, caudillo styles of government.

Nicaragua

- A series of three Somozas established a family dynasty that ruled the country from 1936 to 1979.

- The United States placed the first Somoza, Anastasio Somoza García, at the head of a national guard in order to continue a fight against the nationalist hero Augusto César Sandino.

- Over time, the Somoza family dynasty became increasingly brutal as it extended complete control over the country.

Chile

- Overthrew the democratically elected government of Salvador Allende in a bloody 11 September 1973 coup.

- In power, Pinochet proved to be vicious, destroying the existing political system, engaging in extensive human rights abuses, and privatizing industry while taking services away from the lower classes.

- Supported by the United States, Pinochet's.

The Revolutionary Government of the Armed Forces came to power in Peru in 1968 under the leadership of General Juan Velasco Alvarado. He announced plans for deep changes in government, including the nationalization of industries, worker participation in the ownership and management of these industries, and a sweeping agrarian reform law designed to end unjust social and economic structures.

Announced plans for deep changes in government, including the nationalization of industries, worker participation in the ownership and management of these industries, and a sweeping agrarian reform law designed to end unjust social and economic structures.

Political Tendencies

Center-left

Are political formations of moderate left, moved away of the revolutionary left or the Communism.

- It includes the social democrats, the democratic socialists and the socio liberalism.

- Professes reformist and non-conservative ideologies.

- Defends the mixed economy and regulation of the market to guarantee equality.

- They are opposite to privatization.

Radical-left

Are political formations of radical left.

- Their policies turn around the equality, based in Stalinists, Marxist, Leninists theories and Trotskism.

- At the moment they include the democratic socialism.

- Total opposition to Capitalism, tendencies to Populism.

- Distribution of the richness only freed to the free game of the forces of the market, only will produce inequity that will take to low income sectors of the population to be excluded.

Radical-left

The offers that the radical left makes to their citizens are :

- Much well-being for today without considering tomorrow needs.

- Assures total employment without taking into account the productivity.

- Offers credits without thinking about repay.

- Uses budgetary funds without measuring the income.

- Is get into debt beyond which it is possible to be paid.

- It maintains for public services low tariffs, thus avoiding new investments.

- It allows less discipline to the population although the disorder affects the rights of the others and stimulates the crime.

Center-right

- Preservative ideas, but they are not radically conservative.

- Promote: liberal democracy, capitalism, market economy, and private property.

- Opposite to socialism and communism.

- They are in favor of the free market:

– Reduced levels of taxes.

– Reduction of the public cost.

– Promote FDI

Colombia-Venezuela Relations

The 2 countries share a border of 2.219 km with very important natural resources. The relationship has been characterised by long periods of distancing and conflict: tensions coming from border security and accumulation of unresolved issues and the paralysis of dialogue and negotiation mechanisms. Brief and sporadic cooperation phases: have taken place once they have managed to overcome the most difficult situations or when they have reached agreements concerning security. Since 1833 Colombia and Venezuela have had very serious border conflicts.

- Arbitrages through Spanish and Swiss commissions.

- 1939 Colombia and Venezuela signed a treaty of non-aggression, conciliation, arbitrage and judicial arrangement that contemplates renouncing to the armed as the political instrument. This treaty gave way to the longest period of cooperation of all history of both countries, between 1941 and 1969 that included a series of agreements and cooperation and the first commission of borders integration.

- Period of 20 years of strong tensions where many of the agreements and treaties they had signed disappeared and stopped working.

- Political differences and the continuance of border issues.

Virgilio Barco –Colombia- and Carlos Pérez –Venezuela- start another period of cooperation where many issues were to be discussed a part from the borders but internal conflicts in both countries started a series of distancing moments, especially because of Colombia’s internal conflict that produced a lot of violent consequences in the border. Once Hugo Chavez and Andres Pastrana are elected both countries take completely different ways. Colombia mortgages part of its diplomacy in exchange for some peace to the United States; but Venezuela takes distance from the North American project and gain autonomy for his own “Revolución Bolivariana” and the 5^th Republic project.

LATIN AMERICAN ECONOMIC INTEGRATION

In Latin America there are a lot of economic integrations among all the countries that belong to the region. All of them, depending on the treaty, bring to the countries benefits on the trading field.

Each one of the treaties is in one of the level of integration.

ALCA (Área de libre comercio de las Américas)

It was signed on December of 1994.
It’s a Free Trade Agreement between all South America, Central America and the Caribbean but Cuba.

It’s a treaty which its purpose is to reduce of tariff barriers. It also wants to promote trade among the region and is a step towards development, improving the welfare level of the population and infrastructure development.

CARICOM (Comunidad del Caribe)

It was signed in 1973 with the Charaguamas treaty.
Its propose is to integrate a common market in the Caribbean region. Also to cooperate in the education, cultural and industrial field.

It has 15 members, among them: Barbados, Guyana, Jamaica and Trinidad y Tobago
Colombia, Venezuela and Mexico play the role of observant.

CAN (Comunidad Andina de Naciones)

The member countries have the same goal: to achieve an integral, autonomous, and equilibrated development.
The Can was signed with the Cartagena Agreement on 26 May 1969.

It has associated countries: Argentina, Brazil, Paraguay, Uruguay and Chile.

Observant: México and Panamá.

Actual members: Bolivia, Colombia, Ecuador and Peru.
Venezuela belonged to the CAN from the years 1969 to 1976. The reason why it went out was because Colombia and Peru signed a FTA with US, also because its president did not get along with the president of Chile, Pinochet.

MERCOSUR (Mercado Comun del Sur)

It was signed in 1991 with the Asuncion treaty and its current members are Argentina, Brazil, Paraguay and Uruguay. This economical integration is a perfect example of a Tariff union. The main objectives are the Free movement of goods, services and factors of production among its country members. They also established and external tariff and a common commercial policy for non members. Harmonization of a common law in order to strengthen the integration process.

AEC (Asociacion de Estados del Caribe)
It was signed on July, 1994.
Its main proposes are:

- To strengthen the regional cooperation and integration process.

- Preserving the environmental integrity of the Caribbean Sea.

It has 25 member states and 3 associate states. Among them are Colombia, Costa Rica, Cuba, Guatemala, Honduras, Venezuela…etc.

FDI in Latin America and the Caribbean

- Main destination for FDI in the region is the services sector: telecommunications, financial services and public utilities. In South America, FDI in natural resources.

- FDI, continues to be greater than in manufacturing. Opposite case in Mexico and the Caribbean Basin countries.

- United States continues to be the region’s principal source of FDI in the region, followed by Spain and then Canada.

MNCs in Latin America

- In 2004 several multinational companies came to the region to acquire local companies.

- Telefónica (Spain) acquires BellSouth Corp. Transaction was over 5,800 million dollars.

- Financial Group Bbva acquires all Bancomer shares in Mexico. 4,200 million dollars.

- Interbrew (Belgium) acquires participation of AmBev in Brazil. 4,117 million dollars.

- Philip Morris (USA) acquires Coltabaco in Colombia. $ 398 million dollars.

- DirecTV bought participation in Sky News Corp and Liberty in Brazil, Chile, Colombia and Mexico.

- Telmex acquired the 20% in Techint and 60% of America Movil.

- The value of these transactions amounted to 27,810 million dollars.

Conditions of the region, characterized by macro-economic and social crisis, discouraged investment of transnational corporations in this markets. Some companies left the region due to this situation. Therefore, in order to take advantage of MNCs in the region, and attract FDI, countries will have to improve policies and institutions that make the international commitments on investment incentives possible.

Corporate Social Responsibility

A socially responsible company is one that carries on a profitable business, but assuming all environmental, social and economic impact on society. Internationally, the phenomenon has grown under the leadership of multinational corporations. In Latin America, Brazil, Chile, Mexico, Colombia and Argentina.

In 2005 over 150 enterprises from Argentina, made contributions in cash or helped an NGOs. The main activities are basic education (78%), then social action and poverty (62%), health (56%) and development of children (51 %). To measure the degree in CSR in a company, the only certificate is the the SA 8000. Created by Social Accountability International (SAI), a nonprofit entity, which was based on the Universal Declaration of Human Rights at the United Nations Convention on Child Rights and eleven conventions of the International Labor Organization. The fourth position in number of certificates is occupied by Brazil, which has about 100 certificates issued. Argentina ranks 18 out of 33 countries registered with SAI, with 5 certified companies. Bolivia is the third and final in South America that takes place, which is ranked 22 with 4 certified companies.

Brazil

Population of 178 million, the fifth largest market opportunity in the world, after China, India, Indonesia and the USA.

Business:

Business in Brazil have various cultural and structural barriers: corruption, governmental inefficiency, legal and bureaucratic complications, excessive taxation, inflation etc. Organized strictly hierarchical lines. Decisions made at the most senior levels of an organization. International negotiators are well advised to understand the corporate structure of any potential partner.

Management Style:

- Managers personal style is considered to be of great significance. Technical abilities.

- Relationships are of key importance.

- Managers follow boss's direct instructions.

- try to be as clear, precise and comprehensive as possible.

CULTURAL DIVERSITY

The term Latin America covers a very complex reality, where there are almost equal diversities and similarities. Hence, if the emphasis is on differences and regionalism, it is possible to deny the existence of Latin America and the essential unity that comes from their very diversity.

Since colonization the union of portugueses and spanish with indians and blacks generated a diversity of ethnicities and cultures that makes one of the most important characteristics of the region. Now a days Latin America is, by definition, land of mixed races, the meeting of people and cultures.

Latin America's population is made up of various ethnic groups, amerinindias, natives of the region, whites, descendants of the Spanish and Portuguese, Mulattoes, the union of whites and blacks, mestizos and Indians, the union of whites and blacks, descendants of Africans. The official language of the reagion is spanish, portuguese only in brasil and french in some carribean islands and the and the majority of Latin americans are catholics.

In our increasingly diverse societies, it is essential to ensure harmonious interaction and willingness to live together individuals and groups with cultural identities as plural, varied and dynamic.

Cultural diversity widens the range of options open to everyone, is one of the roots of development, understood not simply in terms of economic growth but also as a means of access to intellectual, emotional, moral and spiritual satisfaction.

Carnivals in latin america are very representatives, is one of the most popular holidays in Latin America, they were exported by the Spanish and Portuguese and is associated with parades, floats, costumes, folk dances and excesses.

The most important carnival is El Carnaval de Rio de Janeiro, in Brasil, we can say that is the most famous, popular and crowded in the world.

It’s important to highlight the importance of our culture, despite the dominance exerted by spanish and portugueses, native Americans and African Americans managed to preserve significant aspects of the languages, customs, religions, crafts and lifestyles that have made Today´s Latin America a mixture of cultures from three continents.