Inequality has many faces. For example, the indecent wealth of a few and the poverty of many. The impossibility of many children to get an education, because in Latin America education is expensive. Covert racism, violence against women, against indigenous peoples, against certain ethnic or sexual minorities. Or the inequality caused by crime. And the consequence of all this is the migration from Central America and Mexico to the United States, and from Venezuela to Colombia, Chile or Peru.
The reasons for this inequality are rooted in the time of colonialism – in the reckless exploitation of the local population and also the reckless economic model for draining local resources and growing monocultures. For two centuries, however, the Spaniards and Portuguese have no longer been masters of Latin America, and the responsibility for the situation of the population lies with the independent states there. Asking for an apology from the nation of former conquistadors, as Mexican President Andres Manuel Lopez Obrador did, is a cheap trick and an attempt to blur personal responsibility.
Why are there no strong economies?
No Latin American country has been able to build a strong economy of its own. The wealth of farmers from Brazil, Argentina, Paraguay and Uruguay is due to the ruthless destruction of nature. Growing monocultures – usually genetically modified soybeans and wheat – is also an export-oriented industry that neither creates many jobs nor leads to progress. Whether we are talking about banana plantations in Ecuador, sugar cane in Honduras or avocado plantations in Chile – the damage done to nature is enormous and the benefits to the local population are relatively low.
No less catastrophic with the exploitation of resources. Mexico and Brazil have strong automotive industries, but they are only suppliers to American and European concerns. They do not have their own car industry. And the aircraft company Embraer, founded after World War II, does bring prestige to Brazil’s 211 million, but only 18,000 jobs.
At the same time, Latin America has the best preconditions for the creation of a strong common economic space and a coordinated industrial policy – much better than those of the European Union: a huge monolingual region, huge reserves of natural resources. resources that could be managed far more effectively together than by individual nation states, sufficient natural resources to production of energy, a young and knowledge-hungry population.
Political course and economic success
Last but not least, the continent has a common history, in which, indeed, there are some partial regional wars, but not as many catastrophes as the two world wars. Nevertheless, the countries of the region have never created a Latin American economic union, but only competing regional conglomerates such as Unasur, Mercosur or Alianza Pacifica.
However, it is clear that there is no mandatory direct link between the political course and economic success. Almost half of the population in Colombia and Argentina lives in poverty, although one has a right-wing government and the other a left-wing government. The common denominator is that both governments blame previous rulers. Neither the glorified right-wing national populist Juan Perón in Argentina, nor the charismatic left-wing populist Lula in Brazil, Rafael Korea in Ecuador or Evo Morales in Bolivia have managed to build strong national economies, let alone Hugo Chavez and his successor in Nicola.
Revenues from the sale of raw materials at the beginning of the new century could be used to improve competitiveness and enter world markets – mostly through investments to improve the quality of education and make it accessible to all. This would also raise their technological level. Instead, it has relied on social programs that reduce the suffering of the poor to some extent, but do not help them take control of their future at all. Or if we have to use the metaphor: instead of being given fishing rods and fishing nets, people are thrown some fish.
Clientelism and corruption
This form of clientelistic politics also flourishes thanks to political systems that provide the respective presidents with strong power and the opportunity for easy re-election. And where the constitution prohibits the re-election of the head of state or other political bodies, corruption is widespread. He who has only one managerial term is not particularly interested in sustainable development, but mainly thinks about how to use the short time he has to grab more for himself.
The principles of mutual control and separation of powers do not work well in Latin America, and tendencies to undermine them are intensifying. The great inequalities in Latin America can be reduced with just one common effort. This requires political will and a willingness to co-finance the state. The call for higher taxes for the rich is more than justified.
But there are not enough rich people in the region to pay for better education, health care, better-functioning police, more efficient infrastructure and, in general, a better future for all. Therefore, the tax burden must cover the middle class in solidarity. And without political will that goes beyond the demands of ordinary protests, a better state cannot be created.
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