Introduction
The
leading agro-mineral exporting countries, including those engaged with
the world’s leading mining and energy multi-national corporations(MNC)
are also those characterized as having the most independent and progressive
foreign policies. Apparently the primacy of “extractive capitalism”
and commodity-export based economies are no longer correlated with ‘neo-colonial’
regimes.
It
can be argued that the concessions to the extractive MNC and local ‘leading’
classes assures stability, steady revenues and finances the incremental
social expenditures which permit the re-election of the center-left
regimes. In other words a de facto alliance between the “top”
and “bottom” of the class structure is the unstated bases for center-left
electoral successes despite the growing political divergence between
the regimes and sections of the social movements.
The Progressive Camp
There
is a general consensus that regimes in seven countries in Latin America
form what can be called the “progressive camp”: Bolivia, Ecuador,
Argentina, Brazil, Uruguay, Peru and Venezuela.
The
identifying features usually attributable to regimes in these countries
include (1) their past political trajectory: most are led by former
leaders and activists from social movements, trade unions or guerrilla
formations (2) their relatively independent foreign policy pronouncements
especially regarding US intervention and sanctions policies (3) their
ideology rhetoric rejecting US led regional bodies and favoring Latin
American centered organizations (4) their populist electoral campaign
programs regarding social equity, environmentalism and human rights
(5) their vehement rejection of ‘neo-liberalism’ and traditional neo-liberal
personalities, parties and privatizations (6) their strategic perspective
that envisions a prolonged process of social transformation that emphasizes
an agenda featuring modernization, developementalist priorities and
high levels of investment oriented toward global markets (7) their prolonged
political incumbency based on constitutional reforms permitting re-election
justified by the need for completing the transformative vision.
The
progressive camp has a self-image, projected inward to its electorate
as representing a rupture or ‘historical’ break with the past, first
with regard to the traditional neo-liberal oligarchy and secondly with
the ‘statist’ left. In the case of Bolivia, Ecuador and Venezuela
they frequently resort to rhetoric evoking “21st century socialism”.
The potency of the appeal to radical novelty has a limited time span
dependent on the degree to which the regimes pursue policies in variance
with the preceding neo-liberal regime.
The’Left-Right Division’ as Represented by the Progressive Camp (PC)
The
perceptions of the objective and subjective divergence between the progressive
camp and the right vary according to whether they emanate from official
sources or from a critical empirical investigation.
According
to the ideologues of the “Progressive Camp” (PC) there are at least
five major policy areas which reflect the radical rupture with the traditional
neo-liberal right.
(1) Nationalism: (a) the PC through renegotiations
of contracts with extractive MNC secures a higher rate of taxation,
increasing revenues for the national treasury; (b) via increased state
investment it converts wholly owned private firms into public-private
joint ventures; (c) through increases in royalty payments it lessens
‘foreign exploitation’; (d) through the greater presence of ‘local technocrats’
it increases national oversight of strategic economic decisions.
(2) Foreign Policy: The progressive camp has pursued
an independent, if not explicitly anti-imperialist foreign policy.
The progressive camp has established several Latin American and Caribbean
regional organizations which deliberately exclude the presence of North
American and European imperial countries such as ALBA (Bolivarian Alliance
of the Americas) and UNASUR (Union of South American Nations).
The PC has rejected sanctions against Cuba, Iran, Syria and Gaza and
opposed the US backed NATO war against Libya. They criticized
the US position at the Summit of the America’s meeting in april 2012
on at least three major issues inclusion of Cuba, opposition to British
colonial control of the Malvinas and the de-penalization of drugs.
The PC has expressed its opposition to US hegemony, to IMF “structural
reforms” and Euro-US control over international lending institutions.
With the exception of Venezuela, the PC has diversified its export markets.
For example Brazil exports to the US only 12.5% of its goods and services;
Argentina 6.9% and Bolivia 8.2%.
(3) Social Policy: The PC has increased social expenditures,
especially toward reducing rural poverty; increased the minimum wage;
approved salary and wage increases. In a few countries they provide
easy credit and financing to small and medium businesses, have given
legal title to land squatters and distributed plots of uncultivated
public lands as a kind of ‘agrarian reform’.
(4) Regulation: The PC has, with varying degree of
consistency, imposed controls over the financial sector, regulating
the flow of speculative capital and the volatility of financial markets.
With regard to the extractive sector regulations have been relaxed to
permit the large scale inflow of capital and the pervasive use of toxic
chemicals and genetically modified seeds by agro-business. They
have permitted the expansion of mining, agriculture and the timber industry
into Indian and natural reservations. They have financed large
scale infrastructure projects linking extractive enterprises to export
outlets trespassing onto previously regulated, protected natural habitats.
Regulatory norms have been harnessed to facilitate ‘productive’ extractive
developmentalism and to limit the financialization of the economy.
(5) Labor Policy: has been based on a ‘corporatist model’
of business-state-trade union (tri partite) negotiations and conciliation
to limit lockouts and strikes and maintain growth, exports and revenue
flows. Labor policy has been conditioned by the policy of limiting
budget deficits, fixing wage increases, to the rate of inflation.
In line with orthodox fiscal policies, pensions for public sector workers
have been frozen or reduced especially among the middle and high end
functionaries. Traditional job security guarantees have been maintained
not augmented and severance pay has not been raised. Strikes by
public sector workers, especially among teachers, medical staff and
social service workers have been frequent and have led to government
mediation and marginal gains. Government policy has been oriented
toward protecting managerial prerogatives, while respecting and upholding
the legal status, collective bargaining rights of trade unions.
Within nationalized firms, state-appointed directors rule; there
is no move toward worker self-management or ‘co-management’-except in
limited cases in Venezuela. The structure of labor relations follows
the private corporate hierarchical model Labor has, at best, an advisory
role regarding health and safety but no determining influences or investment
within this corporate framework. Pressure via strikes and protest
by trade unions have been necessary, frequently in alliance with community
groups, to rectify the most egregious corporate violations of health
and safety rules. While the progressive regimes publically eschew
neo-liberal “labor flexibility” policies they have done little to expand
and deepen labor prerogatives over the labor and productive process.
The principle difference in labor policy between the progressive regimes
and the traditional right is the ‘open door’ to labor leaders, their
willingness to mediate and grant incremental wage increases, especially
of the minimum wage and generally, the reduction of harsh, violent repression.
Continuities and Similarities between Past Neoliberal and Contemporary
Progressive Regimes
Writers,
academics and journalists on the Right and Center-left emphasize the
difference between the progressive and the past neo-liberal regimes,
overlooking the large scale socio-economic and political structural
continuities. A more nuanced, balanced and objective analysis requires
that these continuities be taken into account because they play a major
role in discussing the limitations and emerging conflicts and crises
facing the progressive regimes. Moreover, these limitations, based
on the continuities, highlight the importance of alternative development
models proposed by popular social movements.
The
agro-mineral export model has demonstrated profound strategic deficiencies
in its very structure and performance. The promotion of agro-mineral
exports has been accompanied by the large-scale, long-term entrance
of foreign capital which in turn determines the rates of investment,
the sources for inputs of machinery, technology and ‘know-how’, as well
as control over the marketing and processing of raw materials.
The MNC “partners” of the progressive regimes have conditioned their
involvement on the bases of (a) the de-regulation of environmental controls;
(b) the termination of price controls and the introduction of “international
prices” for sales to the domestic market; (c) freedom to control foreign
exchange earnings and to remit profits overseas.
They
also control decisions regarding the exploitation of mineral reserves.
Expansion of production is dependent on their own global criteria rather
on the needs of the ‘host’ country. As a result, despite the “re-negotiated”
contracts, which the progressive regimes hail as a “giant advance” toward
“nationalization”, the cumulative losses in revenues and in rebalancing
the economy are substantial. If one looks beyond the agro-mineral
enclave the negative impact to further development are substantial.
The very limited impact that the agro-mineral model has on the economy
as whole has led to occasional conflicts between the MNC and the progressive
host governments. A case in point is the conflict between the
nominally Spanish oil company Repsol and the Argentine government of
Cristina Fernandez in April 2012. Repsol’s behavior illustrates
all the pitfalls of collaboration with foreign overseas extractive corporations.
Repsol refused to increase investments, claiming that local regulated
prices reduced profit margins. As a result Argentina’s energy
bill rose three-fold between 2010 and 2011 from $3 billion to $9 billion.
Furthermore, Repsol repatriated its profits, paid high dividends to
overseas stockholders and thus had little impact in creating domestic
industries producing inputs or refineries to process petroleum.
The attempt by the deceased President Kirchner to increase ‘national
ownership’ by bringing in a local private capitalist, (the Peterson
Group) had no positive impact, merely entrenching Repsol’s control.
When Fernandez took majority shares in order establish public control
and increase local production, the entire Eurozone leadership led by
the Spanish government and the Western financial press launched a virulent
campaign, threatened litigation and predicted economic disaster.
The problem of ‘inviting’ foreign MNCs to invest is that it is hard
to disinvite them. Once they enter a country no matter how unfavorable
their performance, it is difficult to rectify or undo the damage and
move onto a new public centered model of development.
All
the progressive regimes with the possible exception of Venezuela have
signed long-term large-scale contracts with major foreign extractive
multi-nationals. Apart from the increase in royalties these agreements
do not differ greatly from contracts signed by preceding right-wing
neo-liberal regimes.
Evo
Morales signed a large scale exploitation contract with Jindal, and
Indian multi-national to exploit the iron-mine Mutun with virtually
all inputs - machinery, transport, etc. imported and with very limited
‘industrializing’ of the raw iron ore mostly simple iron ‘nuggets’.
The bulk of Bolivia’s gas and oil is exploited by foreign MNC-public
‘joint ventures’ and is shipped abroad, leaving most of the 60% rural
households without piped gas,and resulting in Bolivia’s importing most
of its diesel.
Ecuador
under President Correa, another leading progressive president, signed
two big contracts with foreign oil groups in February 2012, despite
the opposition of the majority of Indian organizations including CONAI.
In Ecuador, as in Bolivia, big oil and gas companies, while raising
objections to the re-negotiations of contracts leading to an increase
in royalty payments and an increased presence of public officials, retain
a privileged position in crucial decisions regarding management, marketing,
technology and investment. Despite claims to the contrary, the
leaders of the progressive regimes sign off on these strategic agreements
without consulting the communities affected. Decisions are based
exclusively on executive privilege. The style and substance of
the distribution of the powers and privileges in the oil and gas agreements
between the progressive governments and the multi-nationals are no different
than what transpired under previous ‘neo-liberal’ regimes. Moreover,
in both Ecuador and Bolivia many of the “technocrats” and administrators
who worked under the previous neoliberal regimes play a prominent role
in running the joint venture.
While
progressive regimes have pursued anti-poverty programs and have registered
some successes in reducing poverty levels, they do so as a result of
the growth of the economy not via the redistribution of wealth.
In fact the progressive regimes have not pursued redistributive polices:
income and land concentrations, including high levels of inequality
remain intact. In fact the hierarchy of the class structure has not
been altered and in most cases has been reinforced by the inclusion
of new entrants into the upper and middle class. These include many
former leaders and activists from the lower middle and working
class who have entered the government as well as ‘new capitalists’ benefiting
from state contract agreements with the progressive regime.
The
financial system has remained intact and prospered under the progressive
regimes, especially because of the regimes tight fiscal policies, build-up
foreign reserves, control over government spending and low rates of
inflation. Financial sector profits are especially high in Brazil,
Uruguay, Peru, Bolivia and Ecuador. Brazil in particular has attracted
large inflows of speculative capital from Wall Streets and the City
of London because of its high interest rates relative to the rates in
North America and Europe.
Alongside
the concentration of ownership in the extractive and financial sector,
the progressive regimes have not introduced progressive taxes to reduce
the disparities of wealth. The income of the agro-business elites
in Bolivia, Argentina, Uruguay, Brazil and Ecuador are several hundred
times that of the bulk of subsistence farmers, peasants and rural laborers.
Many of latter remain subject to brutal working and living conditions.
In many cases the progressive regimes have done little to enforce the
labor and health codes in the giant agro-business plantations while
workers are subject to unregulated toxic chemical sprays.
If
the configuration of ownership and wealth remains relatively unchanged
from the neo-liberal past, the progressive governments have accentuated
the tendencies toward export specialization. Under the progressive
governments the economies have become less diversified and more dependent
on agro-mineral and energy exports, and more dependent on large scale
long term foreign investments for growth. State revenue and growth
are more dependent on primary product exports.
The
free market policies of the progressive agro-mineral export regimes
have stimulated the growth of large scale commercial activity. The commercial
sector is increasingly influenced by the large scale entrance
of foreign owned multi-nationals, like Wal-Mart, who source their products
overseas, undermining local small scale producers and retailers.
The
appreciation of the currency has adversely affected traditional manufacturers
and the transport industry causing significant job losses especially
in textiles, footwear and automobiles in Brazil, Bolivia, Peru and Ecuador.
Moreover, favorable polices promoting large scale agro-mineral exporters
has been accompanied by a credit squeeze on local small business people,
especially, producers for local markets who have been bit hard by the
import of cheap consumer goods (from Asia). Farmers producing
food for local markets have been downgraded in the drive to expand cultivation
of export crops like soya.
In
summary, the progressive regimes have pursued a multi-faceted double
discourse: an anti-imperialist, nationalist and populist rhetoric
for domestic consumption while putting into practice a policy of fomenting
and expanding the role of foreign extractive capital in joint ventures
with the state and a rising new national bourgeoisie. The progressive
regimes articulate a narrative of socialism and participatory democracy
but in practice pursue policies linking development with the concentration
and centralization of capital and executive power.
The
progressive regimes preach a doctrine of social justice and equity and
a practice of co-optation of social leaders and clientalism via poverty
programs for the poorest sectors of society.
The
progressive regimes have combined incremented income policies with large
scale structural changes, benefiting the extractive-primary sector.
Stability of the PC is utterly dependent on the increasing demand for
raw materials, high commodity prices and open markets. The progressive
regimes have successfully linked trade union and sectors of the peasant
movement to the state and have undermined or weakened independent class
organizations and replaced them with corporate tri-partite structures.
The
progressives have successfully ‘reformed’ or replaced the chaotic, de-regulated,
conflictual, racialist policies of their predecessors and institutionalized
“normal capitalism”. They have introduced rules and procedures
favorable to institutional stability, fiscal discipline and incremental
but unequal gains. In other words the “parameters of neo-liberalism”
are now effectively administered and legitimated by faux nationalism
based on greater political autonomy and market diversification.
Centralized executive decision making based on agreements which require
extractive MNC to invest and develop the forces of production is legitimated
by an electoral framework and a multi-class political coalition.
The
domestic and foreign policies of the progressive extractive regimes
reflect two contradictory experiences: their radical origins in
the lead-up to taking power and their subsequent adoption of an agro-mineral
developementalist export strategy, favored by neo-liberal technocrats.
The “synthesis” of these two apparently “contradictory” experiences
finds expression in the adoption of an independent, critical political
position toward imperialist militarism and interventionism and economic
collaboration with the agencies of economic imperialism, namely the
signing of long-term and large scale contracts with US-EU-Canadian agro-mining
and energy multi-nationals. In other words the progressive extractive
regimes have ‘redefined’ or reduced imperialism to mean its state structures
and policies rather than its economic components (MNC) which are engaged
in the extraction of raw materials and exploitation of labor.
In the same fashion, they redefine ‘anti-imperialism’ to mean opposition
to political-military interventions and a ‘fair distribution’ of profits
between the regime and its MNC “partner”.
This redefinition allows the progressive regimes to claim popular legitimacy
on the bases of periodical criticisms of the policies and practices
of the imperial state while collaboration and agreements with the MNC
allow the progressive regimes to retain support from domestic and overseas
business interests. When a progressive regime, as is the case
of Argentina ruled by Cristina Fernandez, decides to “nationalize” or
more correctly secure the majority shares in Repsol, the nominally
Spanish oil multi-national, the entire financial press, the European
Union and Washington denounce the move and threaten reprisals.
In other words the unstated pact between the progressive camp and the
imperial regimes is that political differences are tolerable but nationalist
economic measures are not acceptable. Renegotiations of contracts
to increase state revenues may cause a temporary suspension of new investments
but not a political confrontation. However, the public takeover
of a foreign extractive firm evokes predictable hostility and retaliation
from the imperial states. The Argentine progressive regime’s embrace
of a policy of economic nationalism was, however, enterprise and sector
specific.
The Fernandez regime did not, and has no future plans, to expropriate
other extractive firms, nor was the measure part of a general nationalist
strategy to shift toward greater public ownership. Rather Repsol’s
refusal to increase investments and production was increasing Argentina’s
dependence on imported oil, which was deteriorating its balance of payments
and foreign currency reserves. Repsol’s refusal to comply with
Argentina’s developementalist agenda was based on the Fernandez policy
of maintaining the retail price of oil for the domestic market below
the international price. Repsol’s decline in production was a
way of leveraging the regime to lift price controls. However,
a higher petrol price would have a negative impact on industrial and
private consumers, raising costs and reducing the competitiveness of
the Argentine exporters and domestic producers. In effect Repsol’s
intransigence threatened to undermine the social and political balance
of forces between labor and capital and between extractive exporters
and popular consumers, which sustained the regimes majoritarian coalition.
In brief the measure was nationalist in form but capitalist developementalist
in content.
Even
so the measure polarized the global economy between the imperial west
and the Latin American left, with the usual imperial satraps in Latin
America (Mexico’s Calderon and Colombia’s Santos) backing Repsol.
Divisions between the Progressive Regimes and the Social Movements
Prior
to coming to power via electoral processes, the progressive leaders
maintained close ties and actively supported and participated in the
‘street action’ and mass struggle of the social movements. They
embraced the banners of economic nationalism, ecological conservation
and respect for the natural reserves of the Indian communities, social
equality and reconsideration of the foreign debt including the repudiation
of ‘illegal debts’.
The
social movements played a major role in politicizing and mobilizing
the working and peasant classes to elect the progressive Presidents.
This convergence was short-lived. Once in power the progressive
regime appointed orthodox economic ministers to run the economy.They
adopted the extractive strategy, shifted from a nationalist public sector
economy , designed to diversify the economy, to a ‘mixed economy’ based
on joint ventures with overseas extractive capital. First the
Indian communities of Peru, Ecuador and some sectors in Bolivia went
into opposition, on the bases that their interests were neglected and
they were not consulted. Secondly sectors of the working class
and public employees struck demanding higher salaries, an increase in
public spending .Small farmers and manufacturers demanded economic stimulus
for family farms and local industry rather than subsidies for agro-mineral
MNC, fiscal orthodoxy and export strategies based on lower labor costs
and neglect of the domestic market.
Radical
trade union peasant and Indian leaders of the social movements called
into question the entire agro-mineral extractive strategy, the distribution
and administration of state revenues and expenditures. They reasserted
their support for a social program embracing agrarian reform, including
the expropriation of large plantations and the redistribution of land
to landless peasants. Workers’ leaders called for an industrial
policy to process ‘raw materials’ in order to create manufacturing jobs.
Some trade unionists called for the nationalization of strategic industries
and banks. However, despite some major protests, the bulk of the
followers of the social movements and the majority of their leaders
soon shifted from radical rejection of the extractive model to demands
for a bigger share of the revenues. The progressive regimes attracted
the bulk of the social leaders to tri-partite councils of conciliation
to negotiate and secure incremental changes. The progressive regimes
highlighted their opposition to “neo-liberalism”.
They
redefined it as unregulated capitalism based on low royalties and underfunding
of social programs. The progressive regimes successfully divided
the social movements between “utopian” radical opponents and progressive
reformists. In time of social strife the progressive regimes evoked
a “left-right alliance”, charging their social critics of acting on
behalf of imperialism, impervious to their own collaboration with imperial
based multi-nationals. Presidential appeals, a nationalist populist
discourse and increased revenues which funded increased social expenditures
weakened the left opposition. Moderate but sustained increases
in anti-poverty programs and minimum wages neutralized the appeal of
the radical leaders in the social movements. Despite the progressive
regime’s break with its ‘radical egalitarian roots’ it was more than
able to secure large scale mass electoral support, based on the overall
dynamic growth of the economy and steady growth of income. Both
were underpinned by long-term high commodity prices.
Popular
extractivist presidents repeatedly won elections by substantial majorities
and were able to mobilize sectors of the moderate social movements to
counter anti-extractivist social movements. The high prices of
commodities and multiple opportunities for exploitation of resources
attracted foreign investors despite higher royalty payments. Foreign
investors were attracted by the social stability ensured by the progressive
regimes in contrast to the instability of the previous neo-liberal regimes.
The progressive regimes thrived on economic ties with the MNC and an
electoral alliance with the lower classes.
Case Studies of Extractive Capitalism and the Progressive Camp
While
the seven regimes which form the ‘progressive camp’ share a common development
strategy based on the export of primary commodities there are significant
differences in the levels of diversity of their economies, the nature
and character of the commodities which they export, the degrees of social
polarization and social cohesion and the size and scope of the opposition.
In line with these differences there are also substantial differences
in the degree to which the “progressive and extractive model” is sustainable
or subject to upheaval or reversal.
The
progressive camp can be divided in many ways: between those regimes
based on charismatic leaders and extreme dependence on primary exports
(Bolivia, Peru, Ecuador and Venezuela) and those with developed industrial
sectors and ‘institutionalized political leadership (Brazil, Argentina,
Uruguay). There are also significant differences in the degree
of class and ethnic conflict: Peru, Bolivia and Ecuador are experiencing
significant mass resistance from substantial Indian communities, while
in Brazil, Argentina and Uruguay, where the Indian population is sparse
there is only isolated opposition. In terms of class struggles,
Bolivia, has experienced wide spread protests by health, education,
mining and factory workers. Venezuela has faced lockouts and boycotts
organized by the economic elite (“class struggle from above”). Ecuador
faced widespread protests from the police. Most of the rest of the countries
(Brazil, Argentina and Uruguay) faced limited strikes largely on wage
issues. With the exception of Bolivia, the major trade union confederations
work closely and collaborate with the progressive regimes; in contrast
the peasant and rural workers movements in Brazil, Ecuador and Peru
have retained a greater degree of independence and militancy largely
because they have been the most prejudiced by the agro-mineral export
strategies. In Venezuela and Brazil landlord’s private armies
have played a major role in combatting land reform beneficiaries with
relative impunity.
The
most pervasive and environmental degradation has occurred in Brazil,
where millions of acres of rainforest have been “cleared” during the
decade of Workers Party rule. Chemical exploitation of agriculture
is strong in most countries especially in Brazil, Argentina and Uruguay
where soya production has become a dominant crop. All the major agro-industrial
exporters (Brazil, Argentina and Uruguay) rely on toxic chemicals and
GM seeds with numerous cases of toxic consequences for indigenous residents
and their natural habitat. The issue of toxicity and environmental
degradation resulting from the giant mining and timber companies has
been well documented in Peru, Ecuador and Uruguay. Overall, the greater
the urban population and the more dispersed the rural communities adversely,
affected, the smaller the environmental protest and the likelihood that
NGO ecologists play a leading role in protest.
Since
the extractive industries are outside of the major urban centers; since
most of the major trade union confederations collaborate with the progressive
regimes and secure incremental wage increases and since the overall
economy has been growing and unemployment has declined, macro-economic
imbalances, commodity dependency and related structural vulnerabilities
have not resulted in major confrontations between labor and capital.
The most contentious conflicts which have occurred have been between
the orthodox neoliberal elites backed by US and European powers and
the progressive regimes. Several cases come to mind.
On
April 12, 2002 and in December February 2003 the Venezuelan capitalist
class backed by the US and Spain organized an abortive coup which was
reversed and a petrol industry lockout that was defeated. An uprising
in 2011 led by the police in Ecuador and an abortive coup in Bolivia
were put down successfully, before they gained traction. A large
scale agro business protest in Argentina in 2008 which paralyzed the
agro-export sector against an export tax ended with regime concessions.
In
large part, these “class struggles from above” worked in favor of the
progressive regimes because it allowed them to pose the issue as one
between a popular democratic regime and a retrograde authoritarian oligarchy.
As a result the progressive regimes were able to neutralize, at least
temporarily, internal critics from the left. The defeat of “the
Right” burnished the credentials of the progressive camp and raised
their popularity.
While
popular support was important in sustaining the progressive regimes
against US and EU backed rightest destabilization campaigns, of equal
or greater importance was the backing of the military, sectors of the
business elite and extractive capitalists. The progressives by
adopting “moderate policies” including business subsidies and generous
pay hikes to the military were able to divide the elite, retain support
of the military and isolate the rightwing opposition. The rightwing
has remained electorally marginal and provide very limited leverage
for US-EU interference and influence over the progressive agenda.
The
degree of “progressiveness” within the progressive extractive capitalist
camp varies substantially.
The
Chavez government has advanced an anti-imperialist and socialist agenda
involving the rejection of US coups, wars and blockade of independent
states:it has supported the re-renationalization of oil, aluminum and
other raw material, mining and energy sources.Its extensive agrarian
reform benefiting 300,000 families is aimed at food self-sufficiency.
Universal free public health and higher education and subsidized basic
food prices via publicly owned supermarkets; and large scale low cost
public housing for the poor along with literacy campaigns and the formation
of thousands of neighborhood councils to adjudicate and resolve local
issues have deepened and extended the socialization process
On
a far lesser scale, Bolivia, Ecuador and Argentina have pursued independent
foreign policies. Their partial and selective nationalizations are designed
to increase revenues rather than as part of a long term, large scale
strategy of transformation. They have not followed Chavez’s lead on
agrarian reform and on greater enhancement of social spending on health,
housing and higher education. They offer remote, public lands
of dubious quality as “land reform”. They have been advocates of incremental
changes involving wage and social benefits commensurate with the rise
in revenues from commodity exports and in line with the rate of inflation,
Bolivia and Ecuador have dislodged land squatters and defended the major
agro-business land holdings. The least ‘reformist’ regimes with
the most dubious ‘progressive’ credentials are Brazil, Uruguay
and Peru (under Humala) which have adopted a free market agenda;
they actively promote large inflows of unregulated foreign investments,
degrade millions of acres of the rain forests (Brazil especially) ,
promote agro-business and oppose agrarian reform in all of its forms,
relying on the dispersion of peasants and landless to the cities, towns
where they serve as a labor reserve for capital or join the low paying
informal sector.
These “moderate” progressive regimes have signed military accords with
the US, and adopt a low profile in opposition to US imperial policies
in the Middle East. Their “progressiveness” is found in their support
of regional integration, their opposition to US hemispheric hegemonism
(opposing the US coup in Honduras, blockade of Cuba and interference
in Venezuela) and the diversification of overseas markets. Brazil
leads the way in catering to Wall Street speculators and in government
anti-poverty spending on minimum food baskets. Poverty reduction
is matched by the spectacular growth of millionaires linked to the finance
and agro-mineral export sector. The “moderate” progressives have
the most egregious (and well documented) record of ongoing environmental
degradation. In Peru, Humala has given the green light to mining
exploitation threatening the livelihood of thousands of peasants and
local business in Cajamarca; Presidents Lula da Silva and Dilma Rouseff,
of the Workers Party, promoted the destruction of millions of acres
of the Amazon rain forest and displacement of scores of Indian communities
in a decade. In Uruguay the Broad Front Presidents Tabaré Vasquez
and Mujica promoted the highly polluting Botina cellulose factory contaminating
the Parana River despite mass protests.
In
summary it is difficult to generalize about the performance of the progressive
camp given the divergences in social and economic policies. But
a “report card” of sorts can be drawn up.
All
regimes have lowered poverty levels and increased dependence on agro-mineral
exports and investments. All have signed and/or renegotiated contracts
with extractive MNC’ few have diversified their economies. Those
with a substantial industrial base (Argentina, Brazil, Peru) have suffered
a severe decline in the manufacturing sector because of appreciating
currencies and loss of competitiveness resulting from high prices for
commodity exports. Incremental wage agreements have led to low
level social conflicts in the cities (except in Bolivia) but displacement
of peasants and degradation have intensified conflicts in the interior
between rural communities and the MNC leading to state repression (Peru).
The
social impact of the progressive regimes has the widest variation, with
Venezuela registering the most far-reaching structural changes and the
rest lacking any vision or project for redistributing wealth, income
or land. Their common support for regional integration is matched
by important divergences in accommodation to US military policy. Venezuela,
Ecuador and Bolivia, the members of ALBA, reject military treaties,
while Brazil, Uruguay and Peru have signed military agreements with
the Pentagon.
The
overall economic performance is mixed. Brazil’s economy, especially
its manufacturing sector, is stagnating with zero or negative growth
in 2011-2012, Venezuela is recovering, but with over a 20% rate of inflation
,while the rest of the PC is experiencing steady growth, but increasing
dependence on commodity exports to the Asian (China) market.
Alternatives
to the status quo extractive economies vary enormously. In Venezuela
the regime has made diversification a high priority; the Brazilian and
Argentine regimes are taking protectionist measures to promote industry
with limited success especially as their policies are countermanded
by the real expansion of acreage for soya production and exports.
Uruguay, Peru, Ecuador and Bolivia talk of diversification but have
avoided taking measures to shift to food production and family farming
and have yet to take concrete measures to stimulate local industry
via a publicly funded industrialization policy
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