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Monday 18 April 2016

Thoughts on Latin America with some emphasis on Central America

At a time when there is on-going focus on the Panama Papers issue it seems appropriate to focus on Panama and its region.

Panama City
Part 1 South America
By Pieter J Wolvaardt, Ambassador, Mexico City, Mexico.
Meintjeskop Ditaba No II/1997

JOHN LE CARRE's latest novel, “The Tailor of Panama" gives a colourful glimpse of the frenzy of Latin American city life.

In this case the city in question is the capital of Panama but those who know the continent will recognise familiar elements; the sometimes charming, sometimes repellent realities which make it such a complex and fascinating area to work in.

The Embassy in Mexico City Is responsible for the following countries in Central America: Nicaragua, EI Salvador, Costa Rica, Panama, Guatemala and Honduras, and the Head of Mission is already accredited to the last four, where South Africa also has honorary representation .
The Embassy in addition occasionally deals with shipping and other matters in parts of the Caribbean.

Whilst Ie Carre's image represents one side of Latin American life, it's important to recognise that with its "... cadre of economic leadership experienced in running large free enterprises in capitalist economies " ... the continent of manana is fast becoming the continent of hoy". (British House of Commons debate, 23rd July 1990)

During the "Link into Latin America Conference" in London on 10  February 1997, Prime Minister John Major said: "Latin America has made remarkable advances in the last decade:
•             democracy has been consolidated throughout the continent
•             there is peace in Central America;
•             free market economic policies are therule rather than the exception;
•             hyper-inflation   has all but disappeared;
•             and there has been large-scale privatisation. "

He also noted:
•          that Brazil's GDP is of the same order of magnitude as China's and 50% larger than India's;    
•          that the Argentine .province of Cordoba alone has a GDP equal to that of Bulgaria;  
•          and that Mexico is one of the most important trading economies in the world, with imports   and exports worth over 100 billion pounds in 1995." ...

Perhaps even more strikingly::
•             the Word Bank expects annual growth in Latin America in the next ten years to be the highest in the world after south-east Asia;
•             over 2,000 Latin American enterprises have been privatised since 1985. Between 1993 and 1995 alone privatisation in Latin America brought in over 10 billion US dollars;
•             the average inflation rate in Latin America has fallen from 340% in 1994 to around 25%;
•             and trade between the four countries of Mercosur has more than doubled in the last five years. It is now worth over 12 billion US dollars a year."

On the same occasion President  Cardoso of Brazil stated that:"In the year 2010, from the perspective of the United States, the Latin American market will be larger than the European and Japanese markets combined. g the ten countries considered to This is probably the reason why Brazil, Argentina and Mexico were listed among strategic partners by the present government of the United States."

President Perez Balladares of Panama remarked that, "It has been said, in fact, that Latin America is a group of countries separated only by a common language" and that, "judicial systems must be transformed, bureaucratic redtape must be reduced, democratic institutions must be strengthened."
Two facts about Latin-America are clear, firstly, that much is still wrong and must be addressed, and secondly that massive strides have been made during the last decade. In many ways parts of our own continent and Latin-America are not dissimilar; who knows, the Sordwana land theory that the two continents were once one is in fact spot-on?

My own fascination with and interest in Latin-America however runs much deeper than the economic/political. To appreciate lhis multi-faceted continent fully colleagues should make an effort to visit out-of-lhe-way places: from Easter Island off the Chilean coast (a la Thor Heyerdal), to the Argentinean ski resort Bariloche; Punta del Este, Uruguay's sea-side resort; Paraguay where all the  Stroessner towns and buildings have suddenly changed names; La Paz in Bolivia and Lake Titicaca where a plane takes forever to lift off; the greyness around Lima where it almost never rains and many houses do not have roofs; the Galapagos Islands of Ecuador where the wild birds still sit on one's shoulder and where Darwin developed his theory of evolution; Brazil's Foz de Iquacu and the alluvial diggers in the Amazon (where colleague Alex van Zyl and I once almost landed in the line of real fire); Bogota's wonderful gold museum; the traffic in Caracas; the Panama Canal (which could have been in Nicaragua had it not been for the danger of earthquakes) and the sky-scrapers of Panama City; the empty spaces of downtown Managua and its ruined cathedral, destroyed in a massive earthquake, and a much alive volcano very near; Costa Rica with a small English-speaking black community on the coast (descendants from the slave-trade via the Caribbean) and allegedly  more hospitals than police/military (a trivial pursuit question); Honduras' hilly capital Tegucigalpa; the fabulous Tikal pyramids in the jungle of Guatemala; the expanse of Mexico with its rich culture.
Not all these places are easy to get to, nor are they necessarily comfortable (on the contrary many require a considerable spirit of adventure) but they as well as so many others, are worth a visit, particularly as so many South Africans are by nature still very euro-centric.

Despite Central America's continuing problems, what has taken place over the last number of years, namely the achievement of relative peace in all these countries, can almost be compared with the miracle of transformation in South Africa.

When President Anti of Guatemala told me at the beginning of 1996 that a peace agreement would be signed by the end of that year between the Guatemalan Government and the Guatemalan National Revolutionary Unity (URNG), to end a 30-year old bloody conflict leaving reportedly more than 100,000 dead, I must confess that I was not fully convinced; however it took place.

Nicaragua was impoverished first by the right wing Somozas, then a bloody civil war aided by the superpowers. The left wing Sandinistas did their fair share in this downward spiral towards the end of their reign and the earthquake inflicted terrible hardship. However, in January 1996 my wife and I attended the inauguration of President Aleman, elected in the first ever successive democratic elections in Nicaragua, with the Sandinistas being defeated at the polIs. Ex-president Violetta Chamarro left with grace and dignity.

In EI Salvador the erstwhile Farabundi Marti revolutionaries took part during February 1996 in democratic elections and, although defeated, gave the governing ARENA a good run for its money.
In Honduras, from where the American guided "Contras" launched their infiltration into neighbouring countries a relative quiet has descended.

Obviously, to state that all problems in Central America have been resolved would be stretching the truth, and in this regard Oscar Arias, a former President of Costa Rica and winner of the 1987 Nobel Peace Prize, recently observed that "... even as Central American countries have achieved important democratic advances, they are far from having won the fight for prosperity.

The danger of popular disenchantment with democracy, which could again make the region ungovernable or, worse, lead to renewed violence is a major concern.

Serious historical, economic and social imbalances will continue for many years to come, and sporadic flashpoints of discontent will probably spark up. Narcotic trafficking and related problems seem destined to become a bigger problem. I nevertheless believe that Central American leaders have come to the conclusion that growth is in general not possible without peace, an they should be commended for this, and supported. There are comparisons to be drawn with Africa.

I have spent much of my 28-year career  in or dealing with Latin America. I t was and remains as stimulating as when I first arrived as a very callow Third Secretary in Rio de Janeiro in 1970.


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