Author Archive
He’s a Politician after All
This might be a shocker to many, but Barack Obama has admitted that he’s a politician after all. After calling NAFTA “a big mistake” and “devastating” just 2 months ago, the presumptive Democratic nominee now thinks that the trade agreement is not that bad.
He justifies this U-turn saying that “Politicians are always guilty of [overheated and amplified rhetoric], and I don’t exempt myself.” This is coming from someone who, on the campaign trail, has attacked those who would say anything to get elected.
Obama Calls Chávez an “Enemy”
Today there is a long interview [in Spanish] in Chile’s El Mercurio with Barack Obama on his views for Latin America. What struck me first was Obama’s claim that he “would start conversations with our enemies in Cuba and Venezuela.” Now, I’m not opposed to his willingness to sit down and talk with unfriendly regimes—I think that’s appropriate in certain circumstances—but what caught my attention was the use of the word “enemy” when referring to Venezuela. I think that constitutes clumsy diplomacy.
The Bush administration has been rather prudent in its approach to Hugo Chávez, despite all the hot air coming from Caracas and the allegations that his government has supported terrorist organizations in the hemisphere. Bush doesn’t even mention Chávez’s name in his speeches, and that drives him crazy. Chávez needs confrontation. His recent—and thwarted—push for a new intelligence law that would have turn Venezuela into a police state was primarily based on his paranoia of a U.S. invasion.
Now that Bush is about to exit the stage, Chávez needs to pick a fight with the next president of the U.S. He recently boasted that his name was being used in the presidential campaign. By calling him the “enemy,” Obama is setting the stage for a confrontation with Chávez in the event that he wins in November. This is exactly what the strongman from Caracas wants.
Obama Should Learn from King Canute
Legendary tale of King Canute:
“King Canute (995-1035) ruler of England, Denmark and Norway, was surrounded by sycophants. One day, he ordered his courtiers to take him to the sea shore, where he challenged them, saying, ‘Do you believe that I can halt the sea?’ None disputed the fact, so Canute commanded the sea to cease its upwards march. But soon Canute’s feet were covered in water, showing that even he was unable to hold back the tide.”
Legendary tale of candidate Obama:
“I am absolutely certain that generations from now, we will be able to look back and tell our children that this was the moment when… the rise of the oceans began to slow and our planet began to heal.”
A Free Market Gem in Guatemala
The L.A. Times has a very fine article today on Francisco Marroquín University, Guatemala’s libertarian institution of higher learning, and its founder, Manuel “Muso” Ayau.
Those of us who have visited UFM can testify as to the passion for liberty that fills the place. It’s certainly a free market gem in the midst of Central America.
A Police State Takes Hold in Venezuela
Many people expected that after his painful electoral defeat in the constitutional referendum last year, Hugo Chávez was going to stop his systematic assault against democracy and civil liberties in Venezuela.
Last week, he decreed a new intelligence law (no need for a National Assembly here) that basically turns Venezuela into a police state. The new law requires that people:
“… comply with requests to assist the agencies, secret police or community activist groups loyal to Mr. Chávez. Refusal can result in prison terms of two to four years for most people and four to six years for government employees.”
The law also stipulates that the police agencies can conduct surveillance activities on the population, like wiretapping, without a warrant. Furthermore, the authorities can deny access to evidence to defendant lawyers under the grounds of “national security.”
It’s interesting how people sympathetic to Chávez around the world, but particularly in Latin America, call anyone who criticizes their beloved leader a “fascist.” They fail to recognize that many of his policies, especially laws like this one, have fascism written all over them.
In Mexico, It’s a War
“The war on drugs has never seemed less like a metaphor” claims The Economist this week, referring to Mexico’s drug violence. The British newspaper is right. Just yesterday, there were 34 drug-related executions in that country. So far this year, there have been 1.356 similar killings in Mexico.
Cato’s Ted Galen Carpenter wrote a few years ago that Mexico risked becoming the next Colombia. It’s seems we’re already there.
Supporting the Bolivarian Revolution
It seems that we will have some company on Thursday for the 2008 Friedman Prize Dinner in New York City. I’ve met these Bolivarian groups before in similar circumstances. Don’t expect much dialogue from them.
Improving the Business Environment in Paraguay… Really?
President Bush addressed the Council of the Americas yesterday, a business organization whose stated goal is to promote democracy and free markets in the Americas. Among the different subjects he touched in his speech, Bush highlighted the work of the Millennium Challenge Account (MCA) in Latin America.
The MCA’s goal is to provide bilateral aid to countries whose policies promote good governance and economic freedom. In Latin America, some of the standard bearers of good governance and economic freedom according to the MCA are Honduras, Nicaragua and Paraguay.
Bush proudly said in his speech that “In Paraguay, we’re working… with local leaders to reduce the cost of starting new businesses.” It sounds quite good, but when you look at the MCA’s Threshold Quarterly Report for Paraguay, you find among the accomplishments of the program this:
The Finance Ministry conducted simulated purchases to detect firms not following local tax regulations, resulting in the suspensions of more than 70 businesses. The business suspensions received significant positive media coverage and have generated greater tax compliance overall.
It sounds like U.S. aid money is being spent to shut down businesses in Paraguay. That hardly fits my idea of encouraging economic freedom in Latin America.
Not as Good as It Seems
Today, Cuba officially lifted its ban on the sale of computers to the general public. Some other prohibitions have also been scrapped in recent weeks: Cubans can now buy cell phones, stay in hotels previously reserved for tourists, and buy appliances like microwaves and TV sets.
Is this a sign of openness from Cuba’s geriatric regime? Not so.
A Cuban dissident I met in Havana last year sent me today an article he wrote about the real motive behind relaxing these bans. It has been reported in the state-controlled media that people purchasing these goods are later being investigated by the authorities who want to know the real sources of their income. As it’s widely known, the average Cuban salary is less than $20 a month, while the cost of most of these goods ranges in the hundreds of dollars. Many Cubans get their extra money from relatives in the United States, but many others run independent (and illicit) small businesses.
My friend tells the story of the first person to purchase an electric bicycle, which cost the equivalent of $1,070. This man had a small butter factory that apparently was very profitable, since he was selling the butter at a lower price than the government. After buying his electric bicycle, the authorities investigated him and discovered his factory. They proceeded to confiscate everything they found in his home, including the bike.
Let’s not forget that, after all, there is still a Castro brother running the show on the island. As my Cuban friend says about the so-called “reforms,” the fact that something is no longer prohibited doesn’t mean that you can do it.
The EU Sides with the Thugs in Bolivia
This Sunday, the department of Santa Cruz, the richest region of Bolivia, will hold a referendum on regional autonomy. Other departments in the eastern half of the country will likely follow suit in the upcoming months. The central government in La Paz opposes the project and calls it “separatist.” Despite that, polls show that an overwhelming majority of “cruceños” will vote in favor of autonomy.
As a consequence, the ruling party has threatened to use violence against the citizens of Santa Cruz who show up to vote on Sunday. It wouldn’t be the first time. Last December, the government forced the approval of a new constitution in a Constituent Assembly while a pro-government mob outside the building prevented opposition assemblymen from attending the session. This year, something similar happened when the national Congress declared these referenda on regional autonomy illegal in a rigged session while mobs outside Parliament prevented opposition Congressmen from entering the building.
This time around, the party of president, Evo Morales, has warned about the possibility of taking thousands of its supporters to Santa Cruz to prevent the vote from taking place. The only way to accomplish this is by force.
So it’s kind of surprising that the European Union is taking sides with those who, over and over again, have used violence to suppress democratic institutions. The French ambassador in Bolivia and representative of the EU in that country has stated that the leaders of Santa Cruz who are pushing for autonomy will have to “assume the consequences” if violence erupts on Sunday. That is, the EU will blame the victims if they get beaten up by government thugs for exercising their democratic rights.
Shame on the EU.
Argentina Decriminalizes Drug Consumption
This just in… A federal court in Argentina has decriminalized the personal consumption of drugs in that country. According to the court’s ruling, punishing drug users only “creates an avalanche of cases targeting consumers without climbing up in the ladder of [drug] trafficking.”
Last month at a UN meeting in Vienna, Argentina’s Minister of Justice, Aníbal Fernández, said that the policy of punishing drug consumers was a “total failure.”
Finally one piece of good news from Argentina.
Looking for Advice in the Wrong Place
Venezuela’s food programs
Five Central American presidents have asked Hugo Chávez for advice in supplying food to their populations. According to Honduras’ president Manuel Zelaya, “Venezuela has many [food] programs that are worth taking a look at.”
Tell that to the thousands of Venezuelans who every day wait in line at supermarkets and stores for hours in order to get simple items such as milk or meat. Hugo Chávez’s policies (such as price controls) have caused serious shortages in a country that is awash with oil money.
I’m sure Central Americans are better off without Chávez’s advice.
Cato on Facebook
Cato on Twitter
Cato on Google+
Cato on YouTube
