Volume 2 Winter 2, Winter/Spring 1990

Hemisphere Volume 2 Article 1 Issue 2 Winter/Spring

1990 Volume 2 Winter 2, Winter/Spring 1990

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A MAGAZINE OF LATIN AMERICAN AND CARIBBEAN AFFAIRS

Winter/Spring1990 Volume Two * Number Two Five Dollars

EDITORIAL STAFF Editor: Anthony P. Maingot COMMENTARY Deputy Editor: Richard Tardanico Associate Editors: Eduardo A. Gamarra, The Aid Morass by Charles Flickner Mark B. Rosenberg Assistant Editor: Sofia A. L6pez Negotiating Shock by Mark B. Rosenberg Book Review Editor: Kathleen Logan Bibliographer: Marian Goslinga Circulation Manager: Adolfo Leyva Graphic Designer: Juanita Mazzarella Baert Copy Editor: Michael B. Joslyn REPORTS Production Assistants: Cristina Finlay, Raquel Jurado, Teresita Marill, Rene Ramos Human Rights: Peruvian Responses by Michael Shifter CONTRIBUTING EDITORS Austerity and Labor by John Walton Janet M. Chernela Raul Moncarz Rodolfo Cortina Dario Moreno El Pacto: There They Go Again! by David Barkin DennisJ. Gayle Lisandro Perez Jerry Haar Luis Salas Bolivia's Perestroika? by Eduardo A. Gamarra Peter Habermann Mark D. Szuchman Rica's Resource Challenges by Lori Ann Thrupp Suzanne Koptur Costa EDITORIAL ADVISORY BOARD Francisco Rojas Aravena Robert A. Pastor Ettore Botta AnthonyJ. Payne FAXFILE Bernard Diederich Guido Pennano Roberto Espindola Alejandro Portes Gustav Franco Sally Price WolfGrabendorf David Ronfeldt Harry Hoetink Selwyn Ryan Vaughan Lewis Steven E. Sanderson FEATURES Larissa A. Lomnitz Saskia Sassen Abraham F. Lowenthal Carol A. Smith Renewal inChile Frank Manitzas Yolande Van Eeuwen Richard Millet Arturo Villar Democracy on a Tether by Brian Loveman Andres Oppenheimer Juan Yafies Rebirth of Consensus by Pamela Constable Hemisphere (ISSN 08983038) is published three times a year (Fall, Winter/Spring, and Summer) The Art of Resistance and Renewal by Hugo Castillo by the Latin American and Caribbean Center of Florida International University. Copyright © 1990 by the Latin American and Caribbean Center, Florida International University. All Grassroots Religion rights reserved. Hemisphere is dedicated to provoking debate on Evangelical Awakening by David Stoll the problems, initiatives, and achievements of Latin America and the Caribbean. Responsibility Divided Nation, Divided Church by Brady Tyson for the views expressed lies solely with the authors. Sipari Mai by Aisha Khan EDITORIAL, CIRCULATION, AND ADVER- TISING OFFICES: Latin American and Carib- bean Center, Florida International University, University Park, Miami, Florida 33199. Telephone: 305/348-2894. FAX: 305/348-3593. FORUM Please address manuscripts and editorial cor- REVIEW the Deputy Editor. respondence to Haiti: New Cast, Old Script by Alex Stepick SUBSCRIPTIONS: US, USVI, PR, and Canada: $14 a year. Elsewhere: $22 a year. Please make check or money order (US currency only) payable to Hemisphere. PUBLICATIONS UPDATE This document was produced at a cost of $9,548.72 or $3.18 per copy. Protestantism in Latin America by Marian Goslinga C M M

The Aid Morass by Charles Flickner

Almost no members of Con- or cancellation of appropriations) Washington. The warmest gress stood forward with Dole, but will occur in October. Only Januaryt was a strange ever was winter bracketed in few criticized him. Senate Appro- maverick Ways and Means Com- by extreme cold in November priations Committee chair Robert mittee chair Dan Rostenkowski and March. The cherry trees Byrd joined in the attack on cur- has shown the courage to offer a and magnolias weren't the on- rent aid priorities, but didn't focus proposal that actually reduces the ly ones confused. The capital city on Latin America. By April the deficit to the Gramm-Rudman tar- itself couldn't decide how to re- Bush administration made it clear get of $66 billion. spond to the astonishing changes that, unless the global sum of With gridlock anticipated for in Eastern Europe and Central foreign aid was expanded, it too next year's budget, the scramble is America. It's blowing hot and cold would favor "shaving" the existing on to stuff additional domestic on the prospects for US aid. levels for traditional recipients, in- and international spending into As many pundits bemoan Wash- cluding Egypt and Israel. the budget for the current fiscal ington's supposedly parsimonious year, which ends on September response to appeals for assistance, 30. There's one obstacle, though. the gap between myth and reality This year's budget is already $4 bil- in the federal government grows lion over the Gramm-Rudman ceil- larger. Perhaps the most common ing. Additional spending for assessment was reflected by a New Panama and Nicaragua, not to York Times headline, "Congress, mention Eastern Europe, requires Hoping to Aid New Democracies, a 60-vote supermajority in the Finds Itself Shackled by Budget." Senate to set aside the budget The executive branch could re- ceiling. spond, if it had a common voice, Following the precedent set "Look, we've sent up to Capitol with several of the contra aid pack- Hill generous appropriations re- ages, the Bush administration quests. Why doesn't Congress get opted to offset its $800-million aid off the dime and act?" package for Panama and Nicara- gua with equal reductions in the Politics on the Hill defense budget. When on Febru- ary 26 the defeat of Daniel Ortega Returning from a December 1989 in Nicaragua's presidential elec- trip to Latin America, Senate tion surprised Washington, Republican leader Bob Dole broke detailed legislation to implement a Washington taboo regarding the the Panama package was put on sanctity of foreign aid levels to hold until it could be combined Israel and Egypt, the Camp David with assistance for Nicaragua. twins. Dole suggested that the This package, too, is to be paid for only way for the US to help emerg- by the Defense Department, but it ing democracies in Eastern has become so bogged down in Europe and Latin America would Capitol Hill politics that Dole be to reduce aid for the current The fiscal 1991 budget process stated that Nicaraguan president major beneficiaries: Israel, Egypt, is dead in the water. With the Violeta Chamorro's "first term Pakistan, and Turkey. Democratic Congress and the may expire before we get the aid Republican president at odds over down there." defense spending and taxes, in- It is clear no supplemental ap- Charles Flickner is a Senate siders are betting that an across- propriation (i.e. stuffing items into Republican staff member. the-board sequester (a kidnapping the current budget) is likely to

Hemisphere . Winter/Spring 1990 Y

become law before mid-summer. similar arrangement is sug- February 28 statement and held Advocates of domestic spending gested-will react to using US several private meetings on the were unwilling to pass a "clean" grant funds to keep alive the myth Hill to discuss the matter. The supplemental budget limited to that the multilateral banks never murder of six Jesuits may have international items on the make bad loans. been the last straw for Republican president's "must do" list without stalwarts on military aid to El adding some of the items they Salvador. It certainly was for deemed urgent or unlikely to sur- Democrats. vive a Gramm-Rudman sequester. The fear in Latin America, that the attractions of newly demo- Bush and Central America cratic Eastern Europe will divert development aid and investment, On March 13 President Bush final- may prove to be greatly exag- ly decided to take personal respon- gerated. Except for Poland, there sibility for expediting both the is little public support for massive Panama package and a newly an- aid to Eastern Europe. Besides, nounced $300-million Nicaraguan some of the new democracies aid package through Congress. know too well the hidden costs of Was he concerned about the hosting a huge aid establishment, health of Panama's president and don't want traditional foreign Guillermo Endara, who was then aid. Clearly US bilateral aid to engaged in a marathon fast Latin America and the Caribbean against the slow US response? will remain far larger than assis- Bush's ability to get his way with tance to Eastern Europe. The Congress should not be under- drug war will insure that. estimated. His veto of the bill to One of the positive results of extend visas for Chinese students the US obsession with Central demonstrated what a dogged America over the past decade is a Bush could accomplish. core of insiders on Capitol Hill The proposed Panama aid who have a lot invested in the package set an unusual precedent. The Brady Plan to reduce the isthmus. Extensive travel and new The administration admitted that commercial debt-service require- friendships bind many of our $130 million would be the US ments of selected countries does leaders with those in Central share of an international effort to not address the problems many America. In Washington those pay off more than $540 million smaller Latin American and Carib- ties count. owed by Panama to the Interna- bean nations have with paying off Latin America and the Carib- tional Monetary Fund (IMF), the loans to the IMF, the World Bank, bean may benefit from the new Inter-American Development and the IDB. While the integrity approach many are taking to East- Bank (IDB), and the World Bank. of these institutions is important, ern Europe. The first question Although US bilateral funds have so too may be their willingness to asked now is, "What are your been used elsewhere in Latin accept that some of their loans plans?" That question is followed America to pay arrears and prime turn out sour, just like any other by, "What do you need?" and the pump for new multilateral banking institution. "How can we help?" There is less bank loans, it has never been done A bipartisan agreement on emphasis on dollar totals. To ask openly. security assistance to El Salvador first, "How much?" is to risk being It will be intriguing to see how is in the works. Secretary of State accused of "throwing money at Congress-not to mention Nicara- James Baker inconclusively ap- the problem," and few politicians gua and Panama, for whom a pealed for such an agreement in a do that in the 1990s. .

Hemisphere . Winter/Spring 1990 Commentary

Negotiating Shock

by Mark B. Rosenberg

office, the US clearly signaled that Economy" (January 1990) is a cities in gasoline, medicine, the "wink-and-nod" days were fascinating document from the andn the basic midst foodstuffs, of growing Rafael scar- over. A $70-million line of credit neoclassical school of economics, Leonardo Callejas was in- from the US Agency for Interna- written at the behest of the Consejo augurated as the new presi- tional Development was put on Hondurefio de la Empresa Privada. dent of Honduras in January hold to lever the outgoing govern- The study outlines two points 1990. Callejas, who leads the Par- ment to initiate strong macro- about the Honduran economy: tido Nacional, won the presidential economic reforms. Honduras had A large and growing fiscal deficit election in November 1989 with earlier been declared ineligible for accounts for the crisis in the more than 50% of the popular new funds by the World Bank and country's balance of payments vote and a commanding majority the International Monetary Fund. and arrears in its foreign debt in the country's unicameral Con- But how does a government obligations. greso Nacional. negotiate "austerity shock" when * Due to efforts to maintain both The new president is the most most of the country's citizens al- the exchange rate and some skilled and capable leader of Hon- ready live in poverty? Callejas him- foreign exchange reserves, the duras in this century. Callejas is in- self recites the ugly figures: 20% of economy's price structure, in in- telligent, disciplined, and forward- the population earns under ternal terms and relative to the looking. His youth belies his US$0.50 a day and the average world market, became extreme- maturity. Just 46 years old, Calle- annual income is under US$400. ly distorted. jas has served in a variety of gov- According to the authors, there ernment posts and as a cabinet Getting Ready is no realistic alternative to fiscal minister. He has campaigned on austerity through revenue in- the PartidoNacional's presidential Confronting imminent economic creases and expenditure cuts. ticket three times, first as a vice- and fiscal apocalypse upon enter- They advocate, then, the "shock presidential candidate in the early ing office, the new president took treatment" from which so many 1980s. Following his party's defeat measures to prepare himself for Latin American and Caribbean in 1981, he cautiously negotiated the thankless task of restructuring countries are now reeling. his ascendancy through a political the Honduran economy. First, The Harberger-Wisecarver thicket characterized by cronyism, Callejas mounted a comprehen- document outlines what the con- old-boy networks, and proverbial sive study team to identify the tent of economic reform should smoke-filled rooms. The force of country's problems and develop be. What it does not address is the his personality and political acu- alternative policy responses. With thorny and perhaps more difficult men were decisive in his rise. the financial assistance of the Na- issue of how the treatment should Now in the office to which he tional Endowment for Democracy, be applied. has long aspired, Callejas presides a PartidoNacional think-tank gave over a ruptured economy and a exhaustive attention to the coun- A "How to" Guide bankrupt government. The try's economic problems. The core party's governing plan for 1990- of this analysis subsequently ap- A Wall Street Journalop-ed article 94 states that per capita income is peared in the government's Plan (January 17, 1990), written by 13% lower than in 1980. In terms de Gobierno 1990-94. Roger Douglas, a former New of economic development, the Second, Callejas enlisted Partido Zealand government official, 1980s were a wasted decade. Nacional advisers to work with two helped to provide the operational Callejas has few economic op- US economists, Arnold C. Har- guideposts that Callejas needed. tions, none of them good. Unlike berger and Daniel L. Wisecarver, Douglas claims that "the idea that his predecessors, he cannot barter to develop a comprehensive plan governments can retain power by use of Honduran territory for a to restructure the economy. refusing to make necessary and blank-check supply of economic "Policies for Efficiency and valuable structural reforms is, in aid. Indeed, even before he took Growth in a Market-oriented fact, nonsense." "Quality"

Hemisphere . Winter/Spring 1990 medium-term policies, he writes, the country's perfervid press, and political power. Yet because the must be enacted by reform- has asked his cabinet members to president has not isolated himself oriented governments without follow his lead. These officials are from the business sector, he con- compromise. Douglas concludes receiving high marks for the plain tinues to enjoy their support. that consensus will develop only if language they use to explain the Along the same "anti-privilege" concessions are not made to spe- government's new policies. lines, the new economic measures cial interest groups. Still another suggestion by rescind the duty-free imports en- To attach the austerity elec- Douglas for would-be reformers is joyed by the armed forces. Calle- trodes to the Honduran body "Don't blink; public confidence jas's efforts to reduce the power politic, Callejas seems to be follow- rests on your composure." Organ- and privileges of the military may ing the principles that Douglas ized labor has already demon- well be the Achilles' heel of the suggests. For example, Douglas strated against the measures, and austerity package. The Honduran argues that "you need quality a number of ministers have been armed forces, however, are no people for quality policies." Calle- chastised behind the scenes by longer empowered with the hard- jas has surrounded himself with private-sector kingpins whose line security mission that the one of the most skilled cabinets market monopolies are threat- regional militarization of the ever assembled in Central Amer- ened by the reform package. Al- 1980s gave them. Riddled with ica. Known derisively by the op- though the package will raise petty personal rivalries and cor- position press as the "Chicago prices significantly, Callejas main- ruption, the military may take its Boys," the cabinet is a clear depar- tains a close working relationship austerity medicine too. Callejas ture from the crony-oriented polit- with key labor union leaders- can succeed without their sup- ical chambas of earlier presidents. some of whom were previously port, but his chances are much it- Douglas further argues that given high positions in the party greater if the military commits his efforts. reform should be implemented in or offices in the presidential self publicly to Douglas's useful column does "quantum leaps" and that "speed palace. This gentle form of co-op- the country's most dif- is essential." Initially Callejas es- tation, which stands in deep con- not address how to deal with the chewed this advice in calling for trast to the fate of labor union ficult issue: Embassy. Most embassy offi- "national concertation." Yet once leaders in other Central American US are jubilant about he understood that it would be im- countries, is distinctively Hon- cials, though, commitment to struc- possible to gain consensus in ad- duran. It should give the presi- the Callejas They are backing vance of strong reforms, Callejas dent the margin of political space tural reform. enthusiasm with aggressive moved swiftly. In early March he needs to implement his policies. their lobbying in Washington for the 1990 he pushed his entire pack- Not that Callejas has been in- economic assistance age, including a floating exchange timidated by his friends in the additional to the reform pro- rate, lowered tariffs, higher sales private sector. In this respect he that is crucial gram. and income taxes, and the stream- seems to grasp Douglas's argu- Callejas has taken the initiative lining of investment regulations, ment that the "abolition of vision and political through the Congreso Nacional. In privilege is the essence of struc- and has the to hold his ground. the process, Callejas accom- tural reform." Even though the perspicacity Nonetheless, he needs all the help plished, at least on paper, what no president and many cabinet mem- can get. If this president can- democratically elected civilian bers are stridently pro-business, he not accomplish structural econom- politician would have dared in the many private-sector leaders view reform, no other Honduran 1980s: the reform of the Hon- them with suspicion because of ic can. . duran economy to make it more the new administration's hold on competitive in the international commercial and financial markets. "Let the dog see the rabbit," another Douglas guideline, has also informed the president's actions. This principle calls for clear and continual statements to the public about the nature of the economic problems, the government's objectives in addressing them, and the costs and benefits of the options pursued. Callejas has therefore opened himself to

Hemisphere . Winter/Spring 1990 Human Rights: Peruvian Responses

by Michael Shifter

rights organizations followed the proach is inadequate. The tradi- record is among the traditional approach and pressed tional approach to human rights- most troubling in Latin the government to honor its legal including the monitoring and America. Since 1987 the and political commitments. criticism of government viola- UN Human Rights Com- In the past few years, however, tions-fails to take into account eru's human rights P mission has ranked Peru two tendencies complicated Peru's the growing impact of abuses by first among nations in the number already unconventional situation: insurgents and the ineffectiveness of desaparecidos. International the growing strength of the of the state. rights organizations, such as Maoist insurgency Sendero Lumi- Thus an alternative approach is Americas Watch and Amnesty In- noso and the progressive weaken- in the making. Seeking not to sup- ternational, point to patterns of ing of the Peruvian state. For plant but to build upon the tradi- summary execution and torture Sendero, "human rights" is a bour- tional approach, the new, more by Peru's security forces. Roughly geois notion, and any form of affirmative one displays several half the population of the dialogue and negotiation is out of characteristics: it documents insur- country's coastal, mountain, and gent atrocities, strives for balance jungle regions lives under a state and consensus, aims to strengthen of emergency. a nonviolent democratic center, Since the early 1980s this grim and stresses the education and situation has prompted Peru's training of key sectors of civil nongovernmental human rights society. The emerging approach organizations to respond. Their responds in part to public opinion response has primarily taken the that wonders whether rights viola- traditional form of monitoring tions might be an inevitable price government violations. Rights to pay for fighting guerrillas. It in- groups have documented abuses cludes a new and fundamental by Peruvian security forces and question: can Peru deal effectively denounced the governments of with insurgent groups within a Fernando Belaunde (1980-85) democratic framework that and Alan Garcia (1985-90). The respects human rights? groups hold the government responsible-through complicity Insurgents and the State or passivity-for violations against its citizens. Sendero Luminoso, which emerged Yet Peru's human rights situa- the question. Meanwhile the nearly a decade ago as an armed tion has never been entirely con- weakened state can neither deal force in the impoverished depart- ventional. The Belaunde and effectively with the insurgency nor ment of Ayacucho, is now in firm Garcia governments were civilian provide basic protection for its command in the coca-rich Upper and democratically elected, in con- citizens. Insurgency and break- Huallaga Valley, and enjoys a sub- trast to the military rule in Uru- down have taken place in a con- stantial presence in Junin, a key guay, Argentina, and Chile during text of unprecedented economic center of food production, trans- the 1970s, which gave the impetus crisis, an expanding drug econ- portation, and communication. to human rights efforts in those omy, and political polarization. Even coastal cities, including countries. Still, Peruvian human Over the last decade the spiral of Lima, are witness to a rise in Sen- political violence has claimed dero activity. Curiously only where more than 18,000 Peruvian lives. there are effective state surro- Michael Shifter is a program officer in In response many of Peru's gates, such as church and peasant the Andean Region/Southern Cone Of- nongovernmental human rights organizations in Puno, have Sen- fice of the FordFoundation. groups realize their traditional ap- dero advances been stalled.

Hemisphere . Winter/Spring 1990 R T S

The insurgency's targets are no longer restricted to government party representatives, police and military officials, and, most tragi- cally, peasants who often have little choice but to collaborate with such government personnel. Sen- dero's aim of gaining local support among the population's organized sectors has meant that the guerrillas' main competitors in this strategy-labor leaders, development workers, priests, judges, teachers, and opposition politicians-have also been threatened, intimidated, and killed. Particular- ly alarming to the country's extensive network of service and research organizations working in rural development was Sendero's brutal assassination of peasant leader Victor Lozano and anthro- pologist Manuel Soto in Huan- cayo in January 1989. Although the municipal elections of Novem- ber 1989 took place without major problems, Sendero's campaign of to such threats. Its policy tends to respond and provide support to pre-election terror against local of- favor military over political strat- the embattled police during the ficials left a vacuum of authority- egies, though the emphasis varies six-hour assault, a dramatic dis- and a climate of fear-in many depending on the region and the play of the Peruvian government's communities. military official in charge. Many lack of coordination in combating Violence also characterizes the analysts observe that in areas such the insurgency. tactics of Peru's second guerrilla as Ayacucho and parts of the jun- An army general directing group, the five-year-old Movi- gle region, the government's military operations in the Upper miento Revolucionario Tupac Amaru counterinsurgency efforts some- Huallaga Valley reportedly had (MRTA). Although widely re- times deepen the resentment of some success in fighting Sendero, garded as much less formidable the local population against the chiefly by appealing to the hearts and worrisome than Sendero, security forces, thereby inadver- and minds of the local population. MRTA (or at least a faction of the tently adding to Sendero's popular But the widely publicized ap- movement) may be adopting some support. proach proved to be at odds with of the Maoist group's tactics, as Such support was evidenced in a drug policy that gave highest evidenced by the January 1990 March 1989, when Sendero success- priority to defeating the drug traf- assassination of Peru's former fully attacked the police base in fickers in the area. defense minister, Enrique L6pez the jungle town of Uchiza, leaving The growth of Sendero and ero- Abujar. ten officers dead. The towns- sion of state capacity help account Faced with economic and politi- people reportedly witnessed pub- for the July 1988 emergence of a cal crisis, the Peruvian govern- lic executions with little outrage. loosely coordinated network of ment has responded ineffectively Nearby military units failed to paramilitary groups known as the

Hemisphere . Winter/Spring 1990 Reports: Human Rights

Comando Rodrigo Franco. (The net- depart from the conventional Juristas,the Comisidn Episcopalde work takes its name from the human rights approach that says Acci6n Social, the Centro de Estudios Alianza PopularRevolucionaria abuses can, strictly speaking, be y Accidn para la Paz, the Instituto Americana [APRA] party official committed only by government Peruanode Educaci6n en Derechos who was killed by Sendero in forces. Humanos y la Paz, and the Centro 1987.) According to a recent Peru- Also rethinking traditional ap- Amaz6nico de Antropologia y Aplica- vian congressional investigation, proaches are Americas Watch, ci6n Prdctica. the Comando is linked to sectors of Amnesty International, and other As the political crisis deepens, the current APRA government. international organizations. For the Red Peruanade Educaci6n en The paramilitary groups have example, in its October 1988 Derechos Humanos is intensifying its murdered several leftists and have report on Peru, Americas Watch activities, working together with threatened and intimidated jour- devotes a full section to "Viola- an array of local organizations-in- nalists, politicians, professors, tions of the Laws of War Com- cluding churches, labor unions, labor leaders, and television permitted by the Insurgents." public and private schools, and sonalities. That the government Human rights groups, national adult and youth groups-through- has failed to recognize, and take and international, are collaborat- out Peru. Such activities can be action against, the Comando has ing in working out the new con- properly measured only in the further frustrated human rights ceptual challenges. long term. Nonetheless, they are efforts. What are the practical implica- supporting sectors ignored by the tions of such new thinking? Many state and perhaps susceptible to Innovative Approaches Peruvian rights groups are target- Sendero advances. ing key institutions that at best are Some human rights groups are Until the last few years, criticism neglected by the state. Since 1988, complementing such activities by of insurgent actions served mostly for instance, the Comisidn Andina exploring alternative perspectives as an appendage to denunciations deJuristashas undertaken a train- on political violence in Peru. Since against government abuses. In ing program for judges, prose- 1987 the Instituto de Defensa Legal striving for greater balance and cutors, and lawyers, aimed at ena- has organized public discussions public credibility, however, some bling them to perform their roles that involve representatives of rights groups are now calling at- more effectively within an other- diverse political tendencies, includ- tention to the abuses committed wise weak judicial system. The ing the Marxist and non-Marxist by both sides in the country's in- three-day courses encourage the left, APRA, and the Frente ternal conflict. use of habeas corpus writs and Democrdtico, the center-right coali- Meanwhile the limitations of focus on ways to secure basic con- tion headed by novelist and traditional frameworks have led to stitutional guarantees. In an effort presidential candidate Mario Var- a reassessment ofjuridical ap- to minimize corruption, promote gas Llosa. Further, in an August proaches to human rights. Some the rule of law, and improve 1989 working paper, the Instituto leading advocates-including human rights conditions, the pro- presents a range of views about a Diego Garcia-Sayan, executive gram provides a service to judicial controversial issue: the supplying director of the Lima-based Comi- personnel, who often are working of arms by the government to si6n Andina de juristas, and Carlos at considerable risk, in places such peasant self-defense committees in Chipoco, one of the founders of as Lima, Ica, Puno, Huancayo, Peru's emergency zones. the Instituto de Defensa Legal- Cuzco, and Trujillo. Peru's human rights situation- argue for the application of inter- Concurrently human rights and the emerging responses of national humanitarian law to deal education in Peru has become some nongovernmental rights with internal armed conflict and among the most sophisticated in groups-is perhaps unique in political violence. They point to Latin America. Through a variety Latin America. Although rights ad- Article 3 of the 1949 Geneva Con- of educational methodologies and vocates in, say, El Salvador and ventions, which focuses on the pedagogic materials, educators Colombia are also increasingly rights of noncombatants and on are fostering the rule of law and stressing principles of humanitar- medical attention to the wounded. the exercise of basic rights and ian law, the extremism of Sendero Garcia-Sayan urges open discus- responsibilities "from below." sets the Peruvian case apart. Also sion about whether Sendero's de Coordinating these efforts is the without parallel in Latin America facto control over some of Peru's Red Peruanade Educaci6n en Dere- is the fact that the victims of territory offers a sound juridical chos Humanos, which consists of six Peru's armed insurgency include basis for maintaining that the in- organizations: the Escuela de Dere- members of popular organizations surgency is guilty of human rights chos Humanos del Instituto de Defen- and social movements with histori- violations. This posture would sa Legal, the Comisi6n Andina de cally close ties to human rights

Hemisphere . Winter/Spring 1990 groups. And while the weakness of the state is not peculiar to Peru, in possibly no other country has this Debt, Environment, Development, Human Rights, Technology, problem been so acute and have Agriculture and Economics... human rights groups so clearly Third WorldQuarterlyhas established a unique reputation over the acted to fill the vacuum and as- past decade as the leading policy journal on contemporary Third sume the offensive. World affairs. Can these incipient human Third World Quarterly lends an unmatched critical perspective on rights efforts help to reverse global problems and provides an analysis of important issues Peru's deteriorating situation? concerning the Asia/Pacific region, Latin America and the The obstacles to reaching out to Caribbean, Africa and the Middle East. diverse sectors of civil society are Third World Quarterly ispublished inJanuary, April, July and considerable, and programs in- October. Each issue runs to approximately 300 pages, over 80 of volving the mass media could be which are devoted to literature and book reviews - both fiction much stronger. Rights groups and non-fiction. themselves wonder about their own impact, often questioning Past contributors have included: whether Peru's fundamental Morris J. Blachman Yasser Arafat Rudiger Dornbusch problems of violence and govern- Kenneth Sharpe Farouq Kaddoumi Ibrahim F I Shihata mental breakdown are amenable Louis Rene Beres James Petras Ali A Mazrui to even innovative and well-con- Peter Flynn Mahathir Mohamad Haleh Afshar ceived strategies. Indeed, in a dis- Oliver Tambo Guy Martin Riodan Roett turbing development, in February Walden Bello James Dinkerley Feroz Ahmad and March 1990 some Lima-based James Painter Raul Alfonsin Arturo Valenzuela Laurence Harris rights organizations were the tar- Barnett R Rubin George Joffe Carolina G Claudia Wright Yezid Sayigh gets of attacks. Hernandez Robert C Johansen Lionel Cliffe The vast majority of Peruvians Naseer Aruri Shridath Ramphal are hoping the next government, Chibli Mallat Alan Garcia Perez Sheldon W Simon scheduled to begin in July 1990, Nader Entessar will do better than the Garcia administration in addressing political 'rice $34.00/£23 p a. violence. Yet none of the presiden- Subscription: Send your order to: tial candidates, including the :irculation Manager, Third World Quarterly, Rex House, surprise first-round and run-off st Floor, 4-12 Lower Regent Street, London SW1Y 4PE winner Alberto Fujimori, engaged in serious discussion about counterinsurgency policy. Their failure to do so was troubling. Please send me Third World Quarterly for one year, starting with Most analysts agree that the the O January Q April O July O October issue. Fujimori government is likely to confront the Sendero insurgency- Name and the process of social disin- tegration-for some time to come. As the politics are played out, Address Peruvian human rights groups will continue their resourceful, often courageous, efforts to but- tress the country's fragile political democracy. . I enclose acheque for made payable to Third World Quarterly.

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Hemisphere . Winter/Spring 1990 Reports: Austerity

Austerity and Labor by John Walton

poor nations to developed ones. unemployment and the more tated the labor move- The middle and lower classes- repressive the policies of government in Latin America. especially the urban poor-are suf- ments, the fewer the number of Austerity policies have fering the heaviest burden of debt strikes and strikers in Latin Amer- crippledhe debt crisisthe region's has devas- servicing. Cuts in government ican countries. In this respect the T living standards, particu- spending mean decreased earn- debt crisis and austerity measures larly those of the popular classes. ings and job losses for state have created a political climate With no end in sight, the debt employees, as well as reduced favorable to government assaults crisis has undermined the develop- food and transportation subsidies on organized labor, as demon- mental hopes of these people and for the urban poor. The sale or strated in cases such as Argentina their institutional representa- closure of state firms also elimi- under Carlos Menem, Bolivia tives-hopes that once defined nates jobs, while import restric- under Jaime Paz Zamora, and Latin America's social objectives. tions hurt small commercial firms Mexico under Carlos Salinas de and national industries that Gortari. After reviewing several Social Consequences depend on foreign equipment. examples of state-labor conflict in Latin America during the 1980s, A central feature of the crisis is the Debt and Labor British scholar Ian Roxborough striking uniformity of "structural concludes that, while each state at- adjustment" policies in debtor The debt crisis has undercut the tempted alternately to divide polit- nations. Under the aegis of the institutional power and living stan- ically the unions and forge a new International Monetary Fund, dards of Latin American labor. social pact, "the general story is structural adjustment involves a These losses are evident in the one of 'muddling through' rather package of austerity measures: magnitude of the regionwide than of a clear strategic plan ... currency devaluation, increased decline in real wages and corre- As the effects of the economic interest rates, decreased imports, sponding rise in both unemploy- crisis have bitten deeper into the lessened regulation of foreign in- ment and underemployment; ac- working class, labor's capacity to vestors, privatization of state- cording to the Inter-American respond has also diminished." owned firms, and above all, Development Bank, "informal" A related trend is that the com- reduced government subsidies for jobs have become the only employ- bination of debt, austerity, and food, transportation, petroleum ment alternative for growing num- economic restructuring has products, education, and health bers of Latin Americans. Labor's reshaped the social basis of the services. This package is intended losses are also evident in drastic political arena to the disadvantage to create "market-driven" econo- reductions in the welfare benefits of organized labor. On the one mies that generate income for previously won by unions, includ- hand, the expansion of informal debt servicing. ing major cuts in real per capita employment and the weakened Yet, according to the UN Con- expenditures on state health and political clout of unions reduce ference on Trade and Develop- education programs. the size of organized labor's follow- ment, structural adjustment is Besides imposing heavier bur- ing. On the other hand, the key leading to economic stagnation in dens on Latin America's lower issues of the last decade and the Latin America and elsewhere in and middle classes, the drop in foreseeable future center on the the Third World, and is accelerat- living standards undermines the politics of consumption-access to ing the transfer of income from ability of labor unions to effective- housing, transportation, educa- ly represent workers, as reflected tion, and health care-rather than in organized labor's diminished the politics of production, the tradi- John Walton is professor of sociology legitimacy, internal divisions, and tional focus of organized labor. at the University of California,Davis. chastened militancy. For instance, "Workplace" issues have not disap- He is completing a book, Cities in labor analyst Edward Epstein ob- peared from Latin America's Revolt, with David Seddon. serves that the higher the rate of political arena, but they tend to

Hemisphere . Winter/Spring 1990 generate less mobilization than, toral support for traditionally or opportunistic follower of and to overlap only partially with, dominant parties (even of the popular initiative. matters like subsidy cuts, price in- putative left), and declining labor Latin America's political future creases, and service reductions. union influence. The political role is uncertain. It combines state Meanwhile the economic, social, of organized labor, however, has austerity policies with instances of and political conditions associated differed from country to country. energetic popular organization. with debt and austerity have given In countries like Peru, Ecuador, The political direction of the rise to new forms of popular or- and Bolivia, organized labor has 1990s depends on whether the ganization and action, including been the principal agent of aus- managers of structural adjustment religious base communities, barrio terity protest, particularly in the prevail, or whether labor and associations, coordinadoras(na- form of general strikes that ally neighborhood organizations as tional networks of regional and workers with students, public well as other local movements local grassroots groups), and employees, and middle-class mer- form a representative and effec- protests (e.g., paros civicos, demon- chants and consumers. More tive alliance. International models strations, general strikes, riots, generally, comparative findings are available for either course- and looting). link levels of urbanization and from Mexico's PartidoRevolu- unionization to variation in the oc- cionarioInstitucional to Poland's Is Organized Labor Irrelevant? currence and severity of austerity Solidarity. The question for organ- protest. Paradoxically, organized ized labor is whether it will follow The trend of domestic politics in labor has been both a key element the well-worn paths of patronage Latin America involves increasing in causing austerity protest and, if or build an independent, demo- popular movements, eroding elec- the evidence is correct, a reluctant cratic social movement. m

PUBLICACIONES EL COLEGIO DE MEXICO

Pilar Gonzalbo Soledad Loaeza y Rafael Segovia (comps) Las mujeres en la Nueva Espafia. Educaci6n La vida polftica mexicana en la crisis y vida cotidiana Takabatake Michitoshi, Lothar Knauth y Daniel Cosfo Villegas (coord) Michiko Tanaka (comps) Historia general de Mexico (2 tomos) Polftica y pensamiento politico en Jap6n, 1926-1982 Varios Historia minima de Mexico Joseph Hodara Prebisch y la Cepal. Sustancia, trayectoria y (versi6n en ingles contexto institucional A Compact History of Mexico) Carmen Ramos (comp) Ana Pizarro (coord) Presencia y transparencia: la mujer en la Hacia una historia de la literatura historia de Mexico latinoamericana Varios Gerardo M. Bueno (comp) Hacia una renovaci6n del crecimiento Mexico-Estados Unidos, 1986 econ6mico en America Latina

Publicaciones peri6dicas

* Historia Mexicana * Nueva Revista de Filologia Hispinica * * Foro Internacional * Estudios de Asia y Africa * Estudios Econ6micos* * Estudios Demogrificos y Urbanos * Estudios Sociol6gicos *

Para mayores informes: Departamento de Publicaciones de El Colegio de Mexico, A.C. Pedidos por correo: Camino al Ajusco 20, 01000 Mexico, D.F. Pedidos por telefono: 568 6033 Exts. 388 y 297

H&misphere . Winter/Spring 1990 Reports: Austerity

El Pacto: There They Go Again! by David Barkin

ow short are our collec- AGS tive memories! Mexico's IN. stabilization efforts of 1987-90 are reminiscent of its tripartite pact between labor, business, and government during World War II. Its purpose was to restrain wage and price increases "so as not to damage wartime production." In a private telegram to Washington, the US ambassador of that moment, George S. Messersmith, pleaded for emergency shipments of corn to Mexico, writing that: "[in spite of the industrial boom] I have not been so pessimistic with regard to the outlook here at any time since I came to Mexico as I am now. The cost of living has gone up tremendously. We are living really on a social volcano here now. The situation of the workers is intoler- able for everything they eat has production as US demands led Crecimiento Econ6mico (PECE) is gone up enormously and wage in- Mexico to switch almost one- nothing novel. PECE promises to creases do not seem to help for quarter of its maize land to oil, reverse the economy's stagflation. the price controls have been inade- edible seeds, and natural fibers for The administration of Carlos quate" (quoted in Stephen Niblo, export. This policy and US opposi- Salinas de Gortari reassures Mexi- "The Impact of War: Mexico and tion to the shipment of corn to cans that Brazil's failed Cruzado World War II," 1988). meet Mexico's needs provoked Plan and Argentina's sorry experi- Mexican collaboration with the widespread domestic opposition. ence are irrelevant. Even without war effort consisted of the whole- Even before the war's end it was looking south, Mexico's austerity, sale acceptance of American clear Mexico had paid dearly for wage freezes, and inflation of the demands to reorient production increased economic activity: it had 1940s should instill serious doubts to the needs of the US economy, granted extraordinary influence about claims that it can resume on terms established by the US to the US in reshaping the Mexi- more equitable growth without government. This reorientation can economy and formulating its first reversing the recent increase caused the major shortfall in food future development policies. The in income inequality and decline distribution of wealth became in living standards. During the much more regressive, setting an early 1940s real wages plunged by David Barkin is professor of economics unfortunate standard for the more than 50% and did not at the UniversidadAut6noma Metro- decades to come. recover until 1971. politana, in Xochimilco, Mexico City. The mainstays of PECE are His recent publications include Dis- Problems and Promises wage and selective price controls torted Development: Mexico in and a drastic reduction in govern- the World Economy (Westview In light of the wartime policy, ment spending, especially for Press, 1990). today's Pacto de Estabilidady social services. Such austerity

Hemisphere * Winter/Spring 1990 imposes a disproportionate bur- since domestic interest rates are proved goods at more attractive den on the working classes, whose three or four times higher than prices to Mexican consumers. share of national income had al- international rates, the cost of ser- Indeed, the private sector has ready fallen from 36% in the vicing peso obligations is twice as responded with a surge in non- mid-1970s to 25% in 1987. Open large as that of the foreign debt. traditional exports such as auto unemployment is rising and pro- Mexico's internal debt offers juicy parts, but foreign competition and duction for the domestic market is compensation for support of price controls have restricted shrinking due to price controls, government policy by the wealthy. Mexico's traditionally important gutted tariff barriers, and tum- Nevertheless, it is an exorbitant generator of employment: produc- bling purchasing power: real price to pay for the inflow of tion of goods for the domestic wages are now lower than those foreign capital required to sustain market. This downward trend in- of the late 1930s. the rest of the economic stabiliza- cludes the sharp decline in pro- PECE identifies inflation as the tion package. duction of basic crops by small major economic problem and the farmers because food imports rekindling of growth as the prin- have reached record levels. Open- cipal objective. The government ing the border to a flood of con- accepts responsibility for much of sumer durables and food imports the recent inflation, asserting that has resulted in a drain on foreign it results from sizable budgetary exchange, and only the wealthy deficits. Officials fail to point out, have reaped the benefits of the however, that these deficits arose Salinas administration's policy. from the state's inability to tax the incomes of the small but politically The Present Danger powerful group of rich Mexicans who control most of the country's Contrary to the official view, infla- wealth. Consequently the state tion is not the most serious of had to finance massive investment Mexico's ills nor is its control the programs and modest social wel- key to economic recovery. As ex- fare programs with inflationary port production is booming, the measures such as foreign borrow- domestic market is in the throes of ing. Despite the avarice of the Policymakers say this package is depression. The reasons are the wealthy, the Salinas administra- necessary to curb inflation and set large-scale decline of the population's programs continue to sub- Mexico on the path to recovery. tion's purchasing power, the sidize their investments in the Superficially they are correct. By shrinking private investment in hopes of spurring economic devel- substantially reducing the budget production for the internal mar- opment, while allowing and even deficit as a percentage of the na- ket, and the allocation of govern- financing massive capital flight by tional product, the Salinas team ment spending away from social these same people. has slashed inflation from its sear- services and infrastructure. For Even as the administration has ing pace of 1987-88 to its tranquil most Mexicans, PECE is driving a hiked revenues and cut costs, the level of a decade ago. And the rate set of nails into their coffins. inherited imbalances continue. of economic growth doubled in The danger of ignoring this On the revenue-boosting and cost- 1989, to about equal with the rate problem is a lesson that should saving side, policymakers have in- of population growth. have been learned from Mexico's creased the value-added tax, im- The technocrats claim this experience during World War II. proved tax collection, imposed scenario is boosting the con- Once again producers are re- some levies on profits, augmented fidence of domestic and foreign sponding with zeal to the govern- prices for public-firm goods and business in the government's ment's changing signals and incen- services, and closed or sold some ability to manage the economy. tives. Unlike the earlier epoch, public firms. Yet servicing the They argue that, along with the domestic shortfalls in basic foods, debt forces the government to opening up of Mexico to interna- raw materials, and industrial borrow additional money, increas- tional competition, such confi- products can be readily supple- ingly from domestic lenders as dence will stimulate private invest- mented by imports-for those foreign banks seek to limit their ment and create a more efficient who can afford them. With the exposure. Since 1980 the internal productive apparatus. They insist advent of liberalized foreign debt in pesos has swelled by 350% that this apparatus will enable trade, imported consumer goods to more than $50 billion--equal to Mexico to compete successfully in are crowding the shelves of up- nearly half the foreign debt. But world markets and provide im- scale stores.

Hemisphere * Winter/Spring 1990 Reports: Austerity

But the livelihood of the farmers remunerative prices for production increases in a very majority of Mexican producers their labor, the government could short time. Political barriers are and workers depends on the erod- induce them to bring their lands more significant: some political ing domestic market. Linked to back into commercial production bosses would find their hegemony this erosion is the disappearance and enable Mexico to regain food threatened as their former clients of jobs and the development of self-sufficiency. In turn, this pro- gained greater autonomy. By new family survival strategies. "In- cess would stimulate rural de- facilitating this autonomy the vented" jobs are burgeoning as mand for goods and services from political monopoly of the Partido people attempt to find niches as the rest of the economy, thereby Revolucionario Institucional might itinerant merchants and informal benefiting every social group in be threatened, especially if the suppliers of assorted services, Mexico. The country's balance of small farmers felt the new pro- while national chains counter- payments and budget would both gram was won in the face of the attack with marketing strategies improve. Although this approach party's opposition. targeted at the shrinking middle would raise consumer prices, the PECE does not even permit and upper classes. Also geared to cost would be small indeed com- consideration of such an alterna- the latter groups are expanding tive. It focuses on inflation and financial services, as people with deceives people into thinking that savings are taking advantage of other ills can be corrected by mini- high returns in Mexico's banking mizing price increases. Reducing system and stock market, as well inflation by deepening the coun- as speculating in construction. try's depression will merely create further problems. What is needed An Alternative Road is a reorientation of thinking about the roots of, and solutions Ironically Mexico's suffering on to, the economic crisis. The crisis this account is needless. The fun- can only be overcome by mobiliz- damental obstacle to prosperity is ing the productive potential of the the official definition of the crisis Mexican people. as afinancial problem. This per- This alternative strategy does spective leads to a search for new not directly challenge the current ways to restructure the debt, gen- export-oriented approach. Mexico erate foreign exchange, and re- has the resources to continue induce government spending. Thus creasing its production for export authorities reject approaches that while broadening its economy to incorporate small producers; in- pared to the prosperity that the incorporate once again basic food stead they favor export industries strategy would generate. Specific production. The alternative using the latest technologies. programs for the needy would be strategy offers essential benefits to Policymakers seem impervious less costly than current commod- millions of small farmers and to the claim that Mexico could be ity support programs. rural and urban workers whose enjoying a thriving internal What are the objections to such job opportunities have become market. In the countryside, idle an apparently simple and inexpen- precarious and incomes have been productive resources in the hands sive program? Some argue that seriously eroded. It would also ac- of small farmers could eliminate Mexico, including its small celerate the incipient process of more than $3.5 billion in food im- farmers, have lost their ability to political democratization. As such ports and create upwards of two produce basic food crops in the the strategy might be threatening million jobs in a short time. In the volume required for national self- to those who benefit most from cities, idle light-industrial capacity sufficiency. Others are frankly the concentrated power and could be mobilized to produce apprehensive about the political wealth that characterizes the reign- consumer goods, construction implications of offering the small ing neoliberal approach. materials, and light machinery to farmers an opportunity to earn All groups in Mexico would supply a reinvigorated domestic the minimum wage. But such ob- have higher incomes if the alterna- market and employ many addi- jections are misplaced: available tive approach were implemented. tional workers. land already in the hands of small Mexico has the potential to both Such an alternative would re- producers, combined with the in- boost its exports and reclaim its quire the reintegration of small creased yields possible with exist- domestic market. Why then must farmers into the main stage of the ing technologies and available its leaders continue repeating the national economy. By offering resources, could assure important mistakes of past decades? .

Hemisphere . Winter/Spring 1990 ~

Hemisphere . Winter/Spring 1990 Reports: Austerity

Bolivia's Perestroika? by Eduardo A. Gamarra

no longer rule Bolivia, his suc- Austerity Begins the dubious record of cesor, Jaime Paz Zamora of the 26,000% inflation, the worst Movimiento de Izquierda Revolucio- On August 29, 1985, Siles's succes- ever in Latin America and the naria, has steadfastly stayed the sor, Paz Estenssoro, surprised seventh highest in recorded n the mid-1980s Bolivia held course since taking office in MNR and the leftist groups that history. With the August 1985 August 1989. had supported his election by an- ascension of Victor Paz Estenssoro To put this situation in context, nouncing the NPE austerity pro- to the presidency, Bolivia experi- it is worthwhile to recall that Paz gram. The NPE represented a enced a dramatic restructuring of Estenssoro and his MNR led dramatic restructuring of the its political economy. By June Bolivia's 1952 revolution. He and development strategy established 1986 a comprehensive austerity MNR presided over the national- 33 years earlier by Paz Estenssoro program, dubbed the Nueva ization of the country's tin in- and MNR. It sought three objec- PoliticaEcondmica (NPE), reduced dustry, a broad-based agrarian tives: the liberalization of the inflation to 10% and, at least ac- reform program, the enactment of economy, the ascendance of the cording to government officials, universal suffrage, and the down- private sector as the central actor established the foundation for eco- grading of the military. More sig- in economic development, and nomic recovery. The transforma- nificant, they initiated a process of the recuperation of state control tion of Bolivia's political economy state-led economic development over key state enterprises. The was so profound that loyalists in that lasted until 1985. latter included the Corporacidn Paz Estenssoro's Movimiento In November 1964 a military Minera de Bolivia, which had been NacionalistaRevolucionario (MNR) coup replaced 12 years of MNR appropriated by the Federacidn proudly labeled it Bolivia's peres- rule with 18 years of military Sindical de TrabajadoresMineros de troika. Even the cautious London dominance over Bolivian political Bolivia, the backbone of the Economist called the recovery "the life. Most military governments, CentralObrera Boliviana (COB), Bolivian Miracle." however, followed (with US Bolivia's powerful labor confedera- Many international officials con- backing) MNR's state-led develop- tion. sider Bolivia's NPE to be the only ment strategy. Responding to Through general strikes that successful austerity program in domestic and US pressure and to paralyzed the nation, COB had Latin America. For Washington, imminent economic collapse, the sabotaged every attempt by the Bolivia has become a showcase of Bolivian military attempted an or- Siles government to impose aus- democracy and an example of derly withdrawal from the politi- terity. In the process, however, it what other nations in the region cal arena in the late 1970s. Only eroded the effectiveness and legiti- could accomplish if they adopted after a tumultuous four-year macy of strikes and other forms of the "correct" free-market policies. period of transition plagued by union protest. Thus, when Paz Domestically Bolivia has estab- coups, countercoups, and aborted Estenssoro's new MNR govern- lished a new political consensus elections was civilian rule ment fired 22,000 mineworkers, around the NPE's premises. Al- achieved. In October 1982 when COB could barely muster enough though Paz Estenssoro and MNR Hernin Siles Zuazo, one of support to call a general strike. MNR's founders, was sworn into Once capable of bringing down office, Bolivia was already experi- governments, COB was reduced encing the worst political and eco- to weak defensive actions to Eduardo A. Gamarrais assistant nomic crisis of its history. During prevent the imposition of even professor of political science at Florida a hapless three-year period, Siles harsher measures. InternationalUniversity and an asso- was incapable of controlling or Bolstering the NPE's credibility ciate editor of Hemisphere. He is the satisfying demands from social was the presence of Harvard co-author (with James M. Malloy) of groups and was largely respon- economist Jeffrey Sachs, who be- Revolution and Reaction: Bolivia sible for precipitating Bolivia's came the government's principal 1964-1985 (TransactionBooks, 1988). record hyperinflation. adviser. Aided by several Bolivian

poIII.Lna pal LIt3 111 ucaLL- to press ahead with the ovember 1989 Paz Snned a state nf'sipop A MAGAZINE OF LATIN AMERICAN AND CARIBBEAN AFFAIRSS nd banishing hundreds teachers. Provoking debate on the region'sproblems, initiativesand achievements .. tism may have replaced Bolivia, but the rota- Providingan intellectual bridge between the concerned publics e patronage among of North America, Latin America and the Caribbean. fitter rivals is the under- for short-term stability. >atronage can guarantee proceeded at a snail's pace. The uraaN~rnprrmmmu num'"rIr the long-term stability of the NPE collapse of the tin market and the At the heart of the NPE's success and Bolivian democracy is ques- decline in the price of natural was the government's ability to tionable. gas-the nation's only sources of neutralize opposition from labor hard currency-threatened to un- and political parties in congress. An Exportable Cure? dermine the government's pro- A so-called Pactopor la Democracia gram. Even when faced with a between the ruling MNR and The NPE's effectiveness is fragile, severe recession and soaring un- former dictator General Hugo and its impact varies by economic employment, Paz Estenssoro Banzer Suirez's Accidn Democrdtica sector and social class. To begin refused to alter the NPE guide- y Nacionalista (ADN) guaranteed a with, the health of the Bolivian lines. His tenacity was finally political base for the government's economy is tied to the export of rewarded in 1987 as the economy policy. For the next three years natural gas to Argentina. Yet Ar- grew for the first time in the Paz Estenssoro used the pact to im- gentina has not met its payments decade, and continued growing, pose three congressionally sanc- on time, and economic reactiva- with inflation stabilizing at 20% tioned states of siege that dealt tion in Bolivia has been severely per year. Bolivian labor a severe blow, from hampered by chronic delays.

Hemisphere . Winter/Spring 1990 Reports: Austerity

Bolivia's Perestroika? by Eduardo A. Gamarra

no longer rule Bolivia, his suc- Austerity Begins the dubious record of cesor, Jaime Paz Zamora of the 26,000% inflation, the worst Movimiento de Izquierda Revolucio- On August 29, 1985, Siles's succes- ever in Latin America and the naria,has steadfastly stayed the sor, Paz Estenssoro, surprised seventh highest in recorded course since taking office in MNR and the leftist groups that history.n the mid-1980s With the BoliviaAugust held1985 August 1989. had supported his election by an- ascension of Victor Paz Estenssoro To put this situation in context, nouncing the NPE austerity pro- to the presidency, Bolivia experi- it is worthwhile to recall that Paz gram. The NPE represented a enced a dramatic restructuring of Estenssoro and his MNR led dramatic restructuring of the its political economy. By. 1986 a comprehensive at program, dubbed the Nu Subscribe now! And get a year (3 issues) of Hemisphere. PoliticaEcondmica (NPE), inflation to 10% and, at 14 O $14 US, Canada, PR, USVI O $22 elsewhere cording to government o established the foundatic nomic recovery. The trar tion of Bolivia's political 4 was so profound that loy; Name Paz Estenssoro's Movimie, Address NacionalistaRevolucionarie proudly labeled it Bolivia City/State/Province/Zip troika. Even the cautious Country Economist called the recoN Bolivian Miracle." Please make check or money order (US currency only) payable to: Many international off Hemisphere sider Bolivia's NPE to be Latin American and Caribbean Center successful austerity progi Florida International University Latin America. For Wash Miami, FL 33199 Bolivia has become a sho Hemisphere is published three times a year (Fall, Winter and Summer). democracy and an exam l what other nations in the ------0-- could accomplish if they adopted after a tumultuous four-year macy of strikes and other forms of the "correct" free-market policies. period of transition plagued by union protest. Thus, when Paz Domestically Bolivia has estab- coups, countercoups, and aborted Estenssoro's new MNR govern- lished a new political consensus elections was civilian rule ment fired 22,000 mineworkers, around the NPE's premises. Al- achieved. In October 1982 when COB could barely muster enough though Paz Estenssoro and MNR Hernin Siles Zuazo, one of support to call a general strike. MNR's founders, was sworn into Once capable of bringing down office, Bolivia was already experi- governments, COB was reduced encing the worst political and eco- to weak defensive actions to Eduardo A. Gamarrais assistant nomic crisis of its history. During prevent the imposition of even professor of politicalscience at Florida a hapless three-year period, Siles harsher measures. InternationalUniversity and an asso- was incapable of controlling or Bolstering the NPE's credibility ciate editor of Hemisphere. He is the satisfying demands from social was the presence of Harvard co-author (with James M. Malloy) of groups and was largely respon- economist Jeffrey Sachs, who be- Revolution and Reaction: Bolivia sible for precipitating Bolivia's came the government's principal 1964-1985 (TransactionBooks, 1988). record hyperinflation. adviser. Aided by several Bolivian

Hemisphere . Winter/Spring 1990 economists, Sachs put forth neo- The Bolivian government which it has yet to recover. For in- liberal recommendations aimed at pioneered innovative schemes to stance, in September 1985 hun- stabilizing the economy and end- reduce its foreign debt. For ex- dreds of labor leaders, including ing hyperinflation through a ample, in 1988 it established a COB leader Juan Lechin, were ar- shock therapy of reducing fiscal debt-for-nature swap under an arrested and banished to remote deficits, freezing wages and sala- rangement with Citicorp and Con- jungle towns. With absolute con- ries, devaluing the currency, and servation International. In 1989 trol over congress, the executive drastically cutting public-sector Bolivia, funded by aid from imposed NPE-related legislation, employment. The government several nations, purchased $300 such as a new tax code, that con- also announced privatization and million of its private debt through solidated the policy of economic similar measures. IMF-mediated channels. Such ac- restructuring. A key to the NPE's success was complishments impressed interna- Although the pact broke down exchange rate stabilization. tional donors. Bolivia is now the during the 1989 election cam- Through liberalization of the third largest US aid recipient in paign, its three-year tenure foreign exchange market and the Latin America, after El Salvador revealed that the success of establishment of a bolsin (auction and Honduras, as well as Latin austerity policies in Bolivia (and mechanism) in the Banco Central, America's highest per capita recip- elsewhere) is related directly to the black market for dollars came ient of Japanese aid. the capacity of governments to es- to a grinding halt. Critics point tablish and maintain stable coali- out, however, that the bolsin also tions. That the Bolivians have created a means for laundering learned this lesson was demon- "narcodollars," profits from the strated by new president Paz cocaine industry. Zamora, a social democrat, who Most analysts argue that the entered into the Acuerdo Patri6tico NPE revealed Paz Estenssoro's with Banzer's ADN before assum- abandonment of the 1952 revolu- ing office in August 1989. Like the tion's goals. Arguably, however, Pactopor la Democracia, the new al- the NPE reflected less a reversal of liance has enabled the executive the system of political economy branch to control opposition from linked to Paz Estenssoro and labor and political parties in con- MNR than an adaptation of the gress and to press ahead with the original revolution to a new set of NPE. In November 1989 Paz realities. For Paz Estenssoro and Zamora imposed a state of siege, his economic advisers, state capi- arresting and banishing hundreds talism had reached its final limits. of striking teachers. Shortly after launching the aus- Pragmatism may have replaced terity plan, Paz Estenssoro ideology in Bolivia, but the rota- claimed the NPE flowed directly tion of state patronage among out of his original approach to formerly bitter rivals is the under- revolutionary change. lying basis for short-term stability. Whether patronage can guarantee Yet Bolivia's economic recovery Implementing Austerity proceeded at a snail's pace. The the long-term stability of the NPE collapse of the tin market and the At the heart of the NPE's success and Bolivian democracy is ques- decline in the price of natural was the government's ability to tionable. gas-the nation's only sources of neutralize opposition from labor hard currency-threatened to un- and political parties in congress. An Exportable Cure? dermine the government's pro- A so-called Pactopor la Democracia gram. Even when faced with a between the ruling MNR and The NPE's effectiveness is fragile, severe recession and soaring un- former dictator General Hugo and its impact varies by economic employment, Paz Estenssoro Banzer Suarez's Acci6n Democrdtica sector and social class. To begin refused to alter the NPE guide- y Nacionalista (ADN) guaranteed a with, the health of the Bolivian lines. His tenacity was finally political base for the government's economy is tied to the export of rewarded in 1987 as the economy policy. For the next three years natural gas to Argentina. Yet Ar- grew for the first time in the Paz Estenssoro used the pact to im- gentina has not met its payments decade, and continued growing, pose three congressionally sanc- on time, and economic reactiva- with inflation stabilizing at 20% tioned states of siege that dealt tion in Bolivia has been severely per year. Bolivian labor a severe blow, from hampered by chronic delays.

Hemisphere . Winter/Spring 1990 Reports: Austerity

I I

-I ill

Several economists argue that Socioeconomic indicators also one more time into the ranks of the health of the Bolivian econ- reveal the slow pace and tenuous the unemployed, growing ten- omy is also tied to the revenues nature of recovery. Unemploy- sions could erupt into an explo- from the booming cocaine trade. ment stands at 20%, salaries sive confrontation. Other economists note that the im- remain extremely low, and prices Despite these negative portents, pact of the drug trade is less than for most products are out of reach Bolivia has become a "model" of speculated. In any case, Bolivia for the majority of Bolivians. stable governance and sound has not found a legitimate way to The potential loss of jobs by economic management. But opti- tap into this industry and must ex- members of a transformed sector mism about the model's export- ercise great caution so as not to of the labor movement presents ability must be tempered by two stir the wrath of Washington's war the most serious domestic chal- considerations. First, the smallness on drugs. lenge to the NPE. After searching of the Bolivian economy made sta- Meanwhile Bolivian industry, in vain for employment, thou- bilization possible with relatively construction, and mining have not sands of Bolivia's displaced miners small amounts of capital. Second, fully recovered. Commerce, espe- migrated to the Cochabamba val- the particularities of Bolivia's socially the import-export sector, is leys to grow coca leaf. After rees- cial and political structure enabled the only profitable venture. But tablishing unions, they emerged the NPE's advocates to defeat with booming contraband, as the most powerful sector of or- their opponents, especially the prominent entrepreneurs have ganized labor. This development labor movement. At least for now, demanded substantial changes in poses major problems for the the NPE's shock therapy has stabi- the NPE tariff policies to protect Bolivian government, which has lized the Bolivian economy, but them from foreign competition attempted to comply with coca the cost is apparently much and bankruptcy. Indications are eradication agreements with the higher than what its neighboring that President Paz Zamora will US. If the government attempts to governments are either willing or yield to these pressures. forcefully "relocate" this sector able to impose on their people. .

Hemisphere . Winter/Spring 1990 a A I * * * Atm A

- Latin America - Latin America

-- Mexico - - Mexico - Bolivia - Bolivia

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- Latin America -- Mexico - Bolivia -- Mexico - Bolivia Reports: Environment

costa Kica , Resource Challenges

by Lori Ann Thrupp

ith a remarkable Impacts, Impediments, and the strings attached to the 27% of its national Weaknesses flow of aid, the US and the Inter- territory protected national Monetary Fund have in national parks In spite of the country's efforts, pushed the Costa Rican state to and in forest, bio- the degradation of Costa Rican implement the twin policies of logical, and Indian resources is worse than ever. domestic austerity and nontradi- reserves, Costa Rica is widely con- Deforestation occurs at the rate of tional export promotion. sidered a successful model for en- 50,000 hectares per year, far Costa Rica has substantially in- vironmental policy. Among its beyond the 3,000 hectares that are creased the value of its nontra- most effective conservation initia- annually reforested. Meanwhile a ditional exports (e.g., palm oil, tives are fiscal incentives for host of problems, including water- tropical fruits), yet this structural reforestation and debt-for-nature shed degradation, soil erosion, adjustment strategy has led to aug- swaps, where international envi- water and air pollution, over- mented imports of cereal to feed ronmental organizations absorb fishing, sanitation and waste the nation's population, and has small portions of the foreign debt problems, and pesticide damage, contributed to worsened rural and in exchange for the maintenance results in rising economic losses urban socioeconomic inequality. of parks or reserves. The nation's for rural and urban Costa Ricans. Moreover the adjustment strategy environmental laws, whose reach Costa Rica's poor bear a dis- has exacerbated the trade deficit extends from pesticide use to proportionate share of the envi- and aggravated pressures on waste disposal, are elaborate and ronmental burden. For instance, natural resources. From an envi- ambitious in principle. Its univer- those peasants who are being dis- ronmental standpoint, the nexus sities and US-linked research insti- placed to marginal lands and can between the Costa Rican and tutes, such as the Organization for least afford fertilizers are the prin- world political economy impedes Tropical Studies, are addressing cipal victims of deteriorating soils. local attempts to promote sustain- environmental issues on a grow- Similarly those people who reside able development. ing scale. Moreover, Costa Rican in the growing informal settle- Against this backdrop the "ecotourism" has blossomed into a ments of urban areas are the main nation's environmental policies multimillion-dollar business. victims of inadequate sanitation. tend to be ad hoc responses to Costa Rica's long-standing ef- A principal reason for the wor- emergencies rather than cohesive forts are indeed significant. Yet a sening of environmental problems efforts at prevention. For one deeper look into its environmental is that the state's policies do not thing, government agencies are problems and policies raises fun- directly address their causes. The commonly pitted against each damental questions: How effective fundamental causes of resource other in turf battles. For example, are the country's conservation ini- degradation in Costa Rica, as in while the Ministerio de Agricultura tiatives and groups? And are they most countries, are political- encourages farmers to clear more confronting its most urgent economic forces rooted in the land and produce more food, the problems? wider international market. The Direccidn Forestaladmonishes them Costa Rican economy revolves to plant trees, not crops. The ab- around the export of coffee and sence of coordination extends to bananas, followed by beef and nongovernment organizations as Lori Ann Thrupp is a postdoctoralfel- sugar, in exchange for manufac- well. low with the Energy and Resources tured goods from the US and Another dimension of ad hoc Group at the University of California, other developed countries. Costa policy is that, though Costa Rica Berkeley. Her publications include Rica's trade dependence has com- has thousands of pages of environ- "Pesticidesand Policies:Approaches to bined with a chronic fiscal deficit mental laws, most of these are Pest-Control Dilemmas in Nicaragua to generate one of the world's weak and unenforceable. Among and Costa Rica, " Latin American highest per capita foreign debts. the reasons are the political con- Perspectives (1988). Given regionwide economic crisis straints of debt and austerity,

Hemisphere . Winter/Spring 1990 which restrict the state's monitor- acquisition of 50,000 hectares for deteriorating resource conditions. ing capacity while they pressure it Guancaste Park by US biologist There are no easy answers to to stimulate economic growth. Daniel Janzen, perpetuates inequi- these problems. It is clear, how- Conservation initiatives, such as table development. This problem ever, that the social dimensions of Direccidn Forestal'stree planting includes the growth of foreign in- conservation cannot be ignored, programs, suffer from poor main- fluence over local decisions and and that the political-economic tenance; and lacking alternatives resources. One aspect of foreign roots of the problems must be and despite laws to the contrary, influence is debt-for-nature swaps. directly confronted. The rural squatters and colonists continue to Such swaps alleviate only a minute poor deeply understand the value deforest public and private lands. percentage of the external debt, of resources as seen from the Meanwhile environmental yet they favor the interests of perspective of their basic needs. regulations often contradict state mainstream environmentalists at The promotion of sustainable, incentives for economic develop- the expense of the basic needs of equitable development requires ment. Thus reforestation efforts the rural poor. that their interests be given clash with laws that enable people Programs to induce the rural priority. to acquire title to land by "improv- poor to adopt environmental con- Among the needed transfor- ing it" through farming and servation have been ineffective. mations is the ending of state in- deforestation. They also clash with They rarely involve participation centives and subsidies for large a measure that grants landowners of the local people and are top- cattle and timber enterprises, an income tax deduction of down in approach. Among such along with state action to elimi- $1,000 for each hectare refor- programs are Direccidn Forestal's nate land speculation in frontier ested. Besides its bias against mid- "demonstration" plots, which em- areas. Such measures must be dle and low-income rural people, phasize large-scale commercial accompanied by land reform to who do not pay income tax, the reforestation using exotic species. redistribute farmland and to trans- measure subsidizes land specula- This practice is usually impossible fer some of the protected area tion by permitting entrepreneurs for small farmers, mainly because into agroforestry programs, as to plant seedlings, receive the de- the size of their landholdings is in- well as state incentives and credit duction, and then let the trees die. sufficient and must be devoted to for establishing agroforestry and Still another weakness stems food crops. soil conservation. A related prior- from the foreign models that form The Direccidn Forestalhas begun ity is the diversification of food the basis of Costa Rican policy. some agroforestry projects that crops needed for feeding Costa Costa Rica emphasizes wilderness are more suitable for the rural Ricans, and the cessation of the protection-a move applauded by poor, yet these projects often over- environmentally and economically mainstream North American and look indigenous agroforestry prac- deleterious emphasis on agricul- European environmentalists-but tices and try (unsuccessfully) to tural exports. wildlife, tourism, and science re- push methods developed in re- Strategies of grassroots "em- search are not interests of the search stations. In addition many powerment" and democratic par- majority of Costa Ricans, who are rural people oppose parks and ticipation are likewise vital, as is poor and neither have access to, forest reserves and have little in- the redirection of some funds nor derive income from, these ac- terest in wilderness recreation. from parks and wildlife protection tivities. Although inequality of Their stance is logical, since either to such strategies. Equally impor- landownership in Costa Rica is they lack farmland and resources tant is the taking of initiative in not as extreme as elsewhere in or, if they are landowners, they the US and other industrial Central America, the problem is are often left to deal with the powers to eliminate problems nonetheless severe: 37% of land- nuisance of wild animals from such as toxic substance exports holders are small farmers who reserves. and investment patterns that ex- own just 1% of all farmland, while ploit Third World labor and the top 1% of landholders own Implications resources. more than 25% of the farmland. There is potential for effective Furthermore thousands of agricul- Costa Rica has given more atten- change in Costa Rica if it can em- tural workers are landless. In view tion to environmental problems phasize policies of social justice of the inequitable distribution of than many other developing and sustainable development. The landownership, the extent of pro- countries, yet the popular image suggested reforms may sound in- tected area is perhaps excessive. of Costa Rica as ecologically feasible and radical; yet until they Given this agrarian structure, progressive is somewhat illusory. happen, rhetoric about solving en- the creation of parks or reserves The country's fragile economy is vironmental problems will remain by wealthy individuals, such as the also aggravating pressures on the empty and superficial. .

Hemisphere . Winter/Spring 1990 a --

Insider briefs on people and institutions shaping Latin American and Caribbean affairs

No Sugar Daddy Watch Out Montecristo at Risk Caribbean and Central American New Exchange of Information The Environmental Project on sugar producers are watching Agreements between the US and Central America reports that El developments in the 1990 Farm Peru and between the US and Salvador's Montecristo Park is at Bill debate in Washington. New Mexico have added to the worries risk because of the Trifinio Plan to US policy on sugar imports will of US banks who fear losing wary develop the border area shared by emerge from these discussions. Latin American depositers. The that country, Honduras, and Foreign producers and US inter- agreements mandate that the US Guatemala (Greenpaperseries, No. ests such as the Sweetener Users Internal Revenue Service and the 4, p. 10). A habitat for the quetzal Association hope Congress will sister institutions of cooperating because of its boundless cloud lower price supports and reduce governments exchange, upon forests, Montecristo has been sub- import quotas. They have tough request, information concerning ject to increasing pressure by opposition, however, including taxes of a resident of either refugees and settlers fleeing the Rep. Kika de la Garza (D-TX), country, including records ravages of the country's civil war. who chairs the House Agriculture provided by financial institutions. In a rare instance of cooperation Committee. Speaking in Florida Already Barbados, Bermuda, among the neighboring countries, in February 1990, the legislator Dominica, the Dominican the Trifinio Plan will allow "un- repudiated a ruling from the Republic, Grenada, Jamaica, and regulated" agricultural, mining, General Agreement on Tariffs and Trinidad and Tobago are sig- and timber development that will Trade (June 9, 1989) that US natories to the agreement. The "increase pressure on the park." sugar import quotas are illegal. participation of Costa Rica, Bolivia, Colombia, Guyana, and Panama is pending. Capital Flow Come Back to Jamaica Latin Finance'sApril 1990 edition Ad agency Young & Rubicam offers a thorough analysis of the of con- Caribbean Commission pleaded guilty to one count Eastern European challenge to spiracy and paid a $500,000 fine A commission to examine the Latin America. Several viewpoints to settle a charge that it violated future of Caribbean development amplify the growing debate on the the Federal Corrupt Practices Act has been named and will be subject. Sir William Ryrie of the to win a Jamaican Tourist Board housed on the Mona Campus of International Finance Corpora- account. In exchange for the guil- the University of the West Indies tion reasons that Eastern Europe ty plea and fine, the Justice in Jamaica. The commission is may not pull investment away Department dropped a federal mandated by the Caribbean Com- from Latin America. Kissinger As- racketeering charge. After settling munity (CARICOM) to develop sociates analyst Alan Stoga states the case, the agency's general the region's economic, that the US needs to concentrate counsel gave his corporate "spin" political, and cultural agendas for the 21st its efforts first on Latin American to the incident. According to the century. Its report on Caribbean trade partners. A former World Wall Street Journal (February 12, economic integration and the im- Bank spokesperson, Frank Vogl, 1990), he stated that the charge pact of Europe's unification must asserts that a "double standard is was "...the most metaphysical be ready for the 1992 CARICOM being applied that falls heavier on felony that I've ever pleaded guil- summit. Among its members are the democracies of Latin America ty to." Dame Nita Barrow of Barbados than on the would be democracies and Vaughan Lewis of the Or- of Eastern Europe." Latin Finance, ganization of Eastern Caribbean a Euromoney magazine, is pub- Edited by Mark B. Rosenberg States. lished in Coral Gables, Florida.

Hemisphere . Winter/Spring 1990 III E

Buried in New York "Llorando se fue" with a Saya beat On the Move from the Bolivian Yungas region, While in Europe in early Febru- reportedly settled for a meager Ertha Pascal Trouillot is Haiti's ary, Mexican president Carlos $260,000. Bolivian nationalism first woman president. Named to Salinas de Gortari pleaded with in- has been fueled by cries that the succeed Lieutenant General dustrialized countries not to for- paltry sum added insult to the in- Prospero Avril, the former su- get about Latin America in the jury of plagiarism. preme court justice presides wake of new markets and invest- over a 19-member council of state ment opportunities in Eastern as Haiti prepares for elections that Europe. In case you missed the may be held in October 1990. story, it was buried in the New A Degree of Change York Times's February 2, 1990, Heraldo Mufioz, one of Chile's the New Business Section, under In February 1990 Miami jour- leading scholars, has been named Trad- York Stock Exchange Bond nalist Pablo Alfonso interviewed a by the Aylwin government to be ing listings. dissident law professor from Chile's ambassador to the Or- Cuba's Universidadde Camagiiey. ganization of American States in The professor outlined the grow- Washington. ing restlessness among Cuba's in- Streamer of Consciousness telligentsia and students. Par- ticularly troublesome to Castro's Newsday's Roy Gutman, who a military ceremony Speaking at regime, he said, are Moscow- authored BananaDiplomacy: The Myer, Virginia, on March in Fort trained Cuban social scientists Making of American Policy in President George Bush 8, 1990, who understand and sympathize Nicaragua, 1981-1987 (Simon and here to add another stated "We're with the need for glasnost and Schuster, 1988), left Washington to the roll call campaign streamer perestroika.The 29-year-old in December 1989 for East Ger- of great of glory, the roster refugee capped his interview by many, where he serves as the American campaigns-Yorktown, declaring that in Cuba "it's more newspaper's bureau chief. Normandy and now Gettysburg, dangerous to have a degree from were at- Panama." Streamers Moscow than to have one from flags of the four US Geoff Pyatt, who served as a staff tached to the Harvard." military services, each represent- assistant to the Inter-American ing a different war or military cam- Dialogue, has joined the US paign from the revolutionary war Foreign Service and is now the to Grenada. Bush went on to say third secretary of the economics that the new streamer was "most Surf's Really Up section of the US Embassy in US soldiers killed in Honduras. of all" for the Lester Moreno, a 17-year-old Panama. Cuban, had been riding the island's waves for nine years. On Marvin Carter, president of the As- March 1, 1990, he caught the "big sociation of American Chambers one" that surfers dream about. of Commerce in Latin America, Saya not Lambada Carrying a backpack loaded with testified before the Congressional While the lambada had Americans fresh water and condensed milk, Joint Economic Committee on that and Europeans trying new contor- he glided from Cuba's Varadero May 22, 1990. He suggested has been a tions to the tune of "Chorando se Beach into an easterly wind that "most of Latin America foi," the Bolivian authors of the hit pushed him and his sail board to victim of benign neglect and/or sued Brazilian and French pro- within 30 miles of Miami, where crisis management by foreign ducers for copyright violations. he was plucked from the ocean by policymakers in both [US political] Los Kjarkas, who composed the US Coast Guard. parties."

Hemisphere . Winter/Spring 1990 Democracy on a Tether by Brian Loveman

elected. The transition, the elec- held, the votes fairly and quickly tian Democrat Patricio tion campaign, and the political counted, and the opposition can- Aylwin took office as debates were colored by an aware- didate, Patricio Aylwin, declared Chile's first elected presi- ness that nothing could be taken the victor. dent since 1970. Thus for granted and that the threat of Shortly after the elections, ended the authoritarian a preventive military coup or Pinochet even invited Aylwin to government of General Augusto government provocation could the presidential palace to discuss Pinochet (1973-90). never be entirely dismissed. the transition. Still, when Aylwin Aylwin's inauguration, sup- Yet Pinochet appeared to suggested that Pinochet leave the ported by the ideologically diverse believe that his historical role in post of commander-in-chief of the Concertaci6nde Partidospot la Demo- Chile, if unappreciated now, army-a position guaranteed to cracia, represented the culmina- would eventually be recognized: a him under the 1980 constitution- tion of a process specified in the hero who had saved the country upon stepping down as president, Chilean constitution of 1980. In a from totalitarian communism, Pinochet politely declined. plebiscite held in October 1988, reestablished law and order, In short the transition occurred voters rejected Pinochet's contin- provided the constitutional foun- as scheduled and a gradual loosen- uation in office. Pinochet's defeat dations of a modern democracy, ing of authoritarian controls over initiated a period of transition in and permitted a peaceful, legal radio, television, the press, and which he would remain in office transition from authoritarian rule political activity was achieved. The until March 1990, with voters to elected government. This vision basic rules of political life, the electing a successor and a con- may have seemed implausible to tutelary role of the military in gress on December 14, 1989. In the majority of Chileans, but, as Chilean politics, and the nation's the meantime, Pinochet and the the events of 1989 and early 1990 economic model have, however, opposition decided upon constitu- unfolded, Pinochet could respond remained strictly those of tional reforms that were approved to his detractors that the transi- Pinochet. Chile was moving from in a July 1989 plebiscite. tion had gone as promised. After a harsh authoritarian regime to a Throughout 1989 there was all, the results of the plebiscite of "democracy on a tether"-a transi- doubt as to whether Pinochet or October 1988 were accepted- tion whose process and pace were his hard-line supporters would even though on the night of Oc- dictated by the Pinochet govern- allow the scheduled elections, or tober 5, 1988, Pinochet and a ment within a framework of whether an opposition candidate small coterie in desperation con- limited bargaining with the op- would be allowed to take office if sidered suspending the vote position bloc. Thus the incoming count. In addition constitutional president and his policy advisers reforms were adopted in the plebi- faced a number of formidable con- Brian Loveman, professor of political scite of July 1989, with prior constraints in further democratizing science at San Diego State University, sultation and negotiations with Chilean politics and in taking im- is the author of Chile (2nd ed.; the opposition. The presidential portant policy initiatives during Oxford University Press, 1988). and congressional elections were their first year in office.

Hemisphere . Winter/Spring 1990 S

Pinochet's Legacies 1990. Among the key measures Pinochet's control and left his were the creation of a relatively in- loyalists in key command posi- The new political system installed dependent central bank with tions. Even moderates in the by the 1980 constitution, even as broad economic and monetary armed forces insisted upon im- modified by the 1989 reforms, was authority and limitations on the plicit guarantees from the Aylwin inherently authoritarian, elitist, public sector's size. They also in- coalition that they would not be and undemocratic. Appointed cluded tenure for government offi- targets of retaliation after March senators, veto power over public cials of the outgoing regime, 1990, that defense policy would policy by a national security coun- guarantees on military budget not be politicized, and that force cil, and the permanent tutelary levels, and a free hand in certain levels and budgets would not be role of the armed forces con- policy and appointment matters drastically reduced. strained the exercise of the for the armed forces, as well as ac- These issues represent funda- popular will through elected rep- celerating privatization of public mental challenges to the unity of resentatives. Moreover the opposi- enterprises. In these ways the Aylwin coalition and to the tion that previously supported Pinochet sought to leave the in- authentic democratization of Marxist or socialist institutions coming administration, in his own Chile. Many Aylwin supporters and policies was emasculated or words, "todo atado y bien atado." once suffered repression or exile. temporized by the 16 years of offi- The challenge facing the Aylwin They represent groups that cial terrorism and repression that administration is to maneuver demand "justice," if not revenge. transformed Chile's state and within the confines of the tether, The transfer of resources from the economy. Arguably Chilean until it can be loosened or cut, bloated military budget to long- politics had been polarized and and to meet some of the pent-up postponed programs of housing, ideological, and a dose of prag- demands of those who struggled education, health, and nutrition is matism and reformism were essen- against the Pinochet government. an obvious way of meeting some tial for democracy to have a of their demands. Yet the risk of chance. But the Aylwin coalition's The Military offending military elites during emphatic moderation represented the first years of transition cannot a powerful acknowledgement of Perhaps the most sensitive and dif- be ignored. It is difficult to im- the tether General Pinochet fas- ficult area for Aylwin's new gov- agine a stable democracy perma- tened upon the caballitos in his cor- ernment is its relations with the nently facing the military sword of ral. Terror and repression had military. Divisions emerged within Damocles: a democracy condi- brought results. the armed forces over support for tioned upon military approval of Pinochet forced most of the op- Pinochet and some of his policies. key policy decisions or even in- position into a cautious and com- Nevertheless, most military of- dividual judicial proceedings. promising mood regarding trial ficers continued to be proud of Thus civil-military relations pose or punishment of the armed their role in "saving Chile from an immediate and critical dilem- forces and security personnel guil- communism." They remained ma for the new government. This ty of human rights abuses. Many committed to a tutelary role in the dilemma was intensified shortly leading opposition leaders future political system, protective after Aylwin's inauguration by an preferred to downplay threats of their institutional and profes- assassination attempt on an ex- against the military in exchange sional prerogatives, and generally member of the military junta, air for a peaceful transition, military insistent on immunity from trial force general Gustavo Leigh. "neutrality," and a gradual depar- or punishment for alleged abuses ture of Pinochet from the scene. perpetrated during the last 16 The Political and Economic Right Pinochet sought to further con- years. strain the Aylwin coalition by In September 1989 the pattern Chile's political right was devas- enacting institutional reforms and of military retirements and promo- tated by the October 1988 plebi- "organic laws" in 1989 and early tions apparently reinforced scite. Lacking alternative civilian

Hemisphere * Winter/Spring 1990 Features: Chile

or military leadership and disor- objectives of satisfying labor, Entrepreneurs, of course, are well ganized by 16 years of govern- entrepreneurs, human rights ac- aware of the vital role of "labor dis- ment tutelage and internal lethar- tivists, the military, and "la gente" cipline" and low salaries (the mini- gy, the political right cannibalized were feasible. The key, the Aylwin mum wage at the end of 1989 was itself in 1989. The major rightist team argued, was for Chileans to less than $60 per month) in parties-acknowledging their in- allow the new government some Chilean export competitiveness ability to retain power without mil- breathing space. and firm profitability. They there- itary intervention-failed to agree Much depends upon the con- fore expressed concern about on a candidate to face Aylwin. tinued expansion of the Chilean several anticipated government in- Hence, while expecting an Aylwin economy. In 1988-89 it experi- itiatives. These include revision of victory in December 1989, they enced dynamic growth, led by ex- the labor code, encouragement of scrambled to capture congression- ports of agricultural, forestry, unionization, and increases in the al and senatorial seats through the fishery, and mineral products. In minimum wage. In addition they gerrymandered election system 1989 the value of exports ex- include tax increases and strength- imposed by the regime. ceeded $8 billion, making Chile ened enforcement of safety, Chile's economic right--a the leading per capita exporter in health, and environmental regula- heterogeneous, dynamic, and Latin America. Moreover a favor- tions, which would raise produc- highly visible force in the 1980s- able balance of trade along with tion costs and diminish "private despaired at the agony of the debt-equity swaps and other incen- property rights." rightist political organizations. tives to foreign investors enabled These concerns represent chal- The entrepreneurs feared a radi- Chile to reduce its foreign debt. lenges for Foxley and the rest of cal shift in macroeconomic and Significant inflows of foreign in- Aylwin's cabinet, especially be- sectorial policies if the Aylwin vestment contributed to the diver- cause the Pinochet government coalition were victorious. In prin- sification of industry and the attempted to limit economic ini- ciple the entrepreneurs were not expansion of the already booming tiatives in three ways. First, it opposed to a limited degree of export sectors. adopted a budget that conflicted political liberalization-as long as The elections of December with the new government's pro- it meant neither serious populist 1989 focused attention on grammatic priorities. Second, it pressures nor an end to the "labor Aylwin's economic program. The established a new central bank discipline" that had made possible new minister of finance, noted with authority over monetary the impressive economic gains of economist Alejandro Foxley, has policy, foreign exchange, and recent years-but they tended to reassured domestic entrepreneurs banking, which were previously favor continuity without Pinochet. and foreign investors that they within the purview of cabinet of- They looked to Aylwin for reas- can expect continuity, with per- ficers. And third, it depleted the surances that his victory would haps some income redistribution special reserve fund accrued from not significantly threaten their through social programs and mod- copper revenue. economic interests. The Aylwin erate tax reforms to generate in- The incoming administration program, however, implied some- come for government programs. faces other economic and fiscal what higher taxes, modest wage and salary gains for labor, and an GD PER CAPIT 1. 110 ambiguous level of income redistribution through government programs. The Aylwin Government In January 1990 president-elect Aylwin named a cabinet that consisted of representatives from a number of coalition parties and widely respected intellectuals and professionals. Aware of the delicacy of the transition, Aylwin and his advisors proceeded with moderation and deliberation. They sought to reassure all sectors that the seemingly incompatible

Hemisphere . Winter/Spring 1990 worries as well. It fears that cop- tively good condition, a number of it by the Pinochet government per prices may decline from their foreseeable dangers confront the and the demands of the millions current high levels and that the in- Aylwin government. Among these of Chileans whose living condi- ternational economy may weaken, are the threat of inflation, vulner- tions declined during the past 16 thereby muffling the expansion of ability to price reductions in cop- years. No government could be ex- Chilean exports. It also fears that per and other key exports, the re- pected to resolve these dilemmas demands for increased salaries quirement to reschedule the debt entirely. Further democratization, and for expanded government payments due in 1990-92, the amelioration of the misery of the spending on social programs and challenges of labor relations and poorest Chileans, and continued economic infrastructure will of demands for an increased share but slower economic growth repre- generate inflationary pressures. of the national income by non- sent an ambitious set of tasks. Foxley reiterated these and entrepreneurial groups, and the The majority of Chileans other concerns between December budgetary constraints bequeathed wanted the transition to proceed 1989 and March 1990. He sug- by the Pinochet government. smoothly and peacefully. The elec- gested the need for a "social pact" No less important is the poten- tions of December 14, 1989, between labor and business tial rise of tensions within the coali- demonstrated the electoral weak- during the transition to avoid the tion. Underlying this potential are ness of both the radical right and inflationary pressures and political the moderate tone of Aylwin's the revolutionary left. Pragma- crises that plagued President Radil economic team, the emphasis on tism, reformism, and a desire for Alfonsin of Argentina in that continuity with marginal redistri- accommodation seemed to pre- country's transition from military bution, and the decision to accept vail. As the government seeks to rule to democratic government. most of the privatization initiatives deal concretely with the chal- The new minister of economy, and to seek further foreign invest- lenges before it, this spirit of Carlos Ominani, emphasized the ment. Resulting tensions would moderation will be sorely tested. need to resist the tendency to pit the coalition's populist and left- Key factors, therefore, will be: adopt "populist measures." In a ist members against its Christian how long can the original coali- sense the Aylwin team has an ad- Democratic leadership. Inasmuch tion be sustained in more or less vantage: for 16 years it studied the as the Aylwin term of office will be original form? What fall-back coali- defects and successes of Pinochet's four years-instead of the eight tion will be created when the first economic policies. They under- specified by the constitution for ministers and programs come stand the constraints imposed by subsequent presidents--early jock- under attack? And how perma- both the international economy eying among the coalition's nent will the new-found pragma- and the political exigencies of partners for electoral advantage tism of social democrats and democratization, and that satisfy- could exacerbate its fragility. socialists be when their constituen- ing the demands of the poorest In sum the new government cies demand faster and more Chileans will, in the short term, faces the challenges of democrati- profound departures from the prove impossible. zation and coalition management, Pinochet legacy? So, while the economy is in rela- as well as the tether fastened upon In the background will be the political right and segments of the BA military, with their implicit threat to "correct" the political course should it head in the "wrong" direction. The Aylwin government's careful management of civil-military relations and the human rights issue will be critical in forestalling a return to authoritarian politics-an outcome most military officers and entrepreneurs, as well as the rightist parties, wish to avoid. March 1990 marked the hopeful beginning of the restoration of democracy in Chile. The restoration would be neither easy nor complete, but most Chileans were looking expec- tantly to the future.

Hemisphere . Winter/Spring 1990 Features: Chile

US-Chilean Prospects and the Aylwin policy agenda. guerrilla-related activity in Colom- Carlos Portales, an expert on US- bia, Peru, and Bolivia, and debt US-Chilean relations were correct, Chilean relations, identified four negotiations. US policymakers but cool, after the plebiscite of Oc- policy concerns: maintenance of a might prove inattentive to the tober 1988. Official and private flow of funds to Chile to support need for economic assistance to sources of US funds, technical as- macroeconomic stability; con- the fragile democratic coalition sistance, and moral support for tinued Chilean access to US mar- headed by President Aylwin. the opposition angered Pinochet kets; removal of sanctions against The success of Chile's transition and disappointed his policy- Chile under the General System to democratic government makers. of Preferences and Tariffs, there- depends primarily upon internal Shortly after the plebiscite a by making Chile eligible for the politics, economic acumen, and a new US ambassador, Charles OPIC program; and approval of favorable world economy. Yet sup- Gillespie, replaced Harry Barnes, an aid package to help finance portive US policies would bolster who played a key role in support- social programs. the Aylwin government and the ing Pinochet's opposition. Ambas- With the advent of the Aylwin democratic transition. Whether sador Gillespie inherited a administration, US-Chilean rela- US policymakers will take ad- number of unresolved bilateral tions seem promising. There is vantage of this opportunity issues, including the assassination danger, however, in that Chile's remains to be seen. * of Orlando Letelier in Washing- transition coincides with dramatic ton, sanctions against Chile under transformations in Eastern the General System of Preferences Europe and the USSR, as well as Editor's Note: This article is based on and Tariffs, exclusion from pro- more urgent matters in Latin a forthcoming chapterin James M. gram benefits of the Overseas America, such as the political fall- Malloy and EduardoA. Gamarra, Private Investment Corporation out from the Panama invasion, eds., Latin American and Carib- (OPIC), and tensions over military the electoral defeat of the Sandi- bean Contemporay Record, vol. 8 assistance programs. Chile's boom- nistas in Nicaragua, drug and (Holmes and Meier, 1991). ing export trade also made the US agricultural and industrial protec- tionism a central concern in bilateral relations. iQUE PASA EN AMERICA LATINA? After resolving the "poisoned grape" matter in April 1989, US- Chilean relations focused upon broader trade issues, while US Let the diplomats in Santiago maintained open and frequent contacts with JOURNAL OF leading Chilean policymakers and potential opposition appointees. INTERAMERICAN Private investors from large US corporations (as well as investors STUDIES AND WORLD AFFAIRS from Europe, Asia, New Zealand, and Australia) expressed confidence in Chile's future. They did Keep you so both in public statements and in new investments in Chilean informed mining, banking and finance, agriculture, and industry. IBM, Exxon, Citicorp, Chase Manhat- tan Bank, and other major US firms committed significant new resources to Chile in 1989. Shortly before the December A GLOBAL UNIVERSITY 1989 elections, a distinguished group of Aylwin supporters visited INSTITUTE OF INTERAMERICAN STUDIES the US. Their purpose was to reas- The North-South Center * P.O. Box 248134 * Coral Gables, FL 33124 sure Americans concerning the political vision of the Concertacin

Hemisphere . Winter/Spring 1990 Rebirth of Consensus

by Pamela Constable

accommodate the winners, is Chilean society remains Correa was a hunted remarkable in itself. But the key plagued by serious breaches, some man, a socialist living un- point is that after years of her- of which have been aggravated by derground in military- metic divisions and harsh, glib authoritarian rule. The historic ruled Chile, furtively judgments, a process of genuine cultural gap between civilians and meeting with colleagues consensus is building in a society the armed forces has widened in crowded soccer stadiums and long polarized by fear and hatred. despite the years of military forcing himself to forget people's "tutelage." Moreover the strain names in case he were arrested has intensified with the prospect and tortured. Today he is Chile's that former or current officers new minister of transportation. may be prosecuted and tried for Not long ago, Manuel Bustos human rights abuses. was languishing in a small village The economy has grown steadi- in southern Chile, legally ban- ly since the severe recession of ished after numerous spells in pris- 1982, but the social gap between on, reviled by officials as a labor rich and poor has become more agitator and political extremist. visible. The hardships of the Today he is photographed smiling average factory worker or migrant and shaking hands with industrial fruit picker-unprotected by leaders, publicly recognized as unions or social services-contrast their equal across the bargaining starkly with the lavish lifestyles of table. the new stockbrokers or grape ex- Not long ago, General Augusto porters who have prospered in Pinochet was planning to project Pinochet's "privatized" economy. his 16-year reign virtually into the Finally, a pronounced political 21st century, contemptuously dis- gap has developed. At one pole missing his Christian Democratic are those who remember and opponents as closet Marxists and cherish Chile's democratic tradi- recycled hacks. Today he has tions. At the other are those who handed over the presidential sash are too young to recall these tradi- to Patricio Aylwin Azocar, 71-year- tions or have become conditioned old leader of the Christian Demo- to believe that the right to buy cratic Party. and sell at will is much more im- Repatching this torn social portant than the right to vote or Healing Wounds fabric has not been easy. The publish a newspaper. mantle of Chile's 150-year democ- Yet events since mid-1988 The change taking place in Chile racy, discarded in anger by so demonstrate that a majority of is more than a shift in power. many respectable citizens in 1973, Chileans, and most leaders across True, the sight of the persecuted is by no means fully refurbished. the political spectrum, are anxious replacing the persecutors, and the The installation of President Ayl- to bury the phantoms of 1973. losers stepping aside peacefully to win and 158 elected members of They are willing to lay down their congress on March 11 inaugu- partisan and ideological preju- rated a tricky and vulnerable dices and to resolve their differ- Pamela Constable is Latin America period of civilian rule. There are ences in a spirit of compromise. correspondentfor the Boston Globe, ample opportunities for sabotage Despite Pinochet's best efforts, and the winner of the 1989 media by factions of the army, the revolu- military rule has made most awardfrom the Latin American tionary left, and the antidemo- Chileans appreciate, rather than Studies Association. cratic right. denigrate, the past.

Hemisphere . Winter/Spring 1990 Features: Chile

Calm and Reason winner. Furthermore the voters support for the president-elect. rejected virtually all congressional Equally significant, the lan- Ever since Pinochet's defeat in the candidates on both political ex- guage of confrontation and ab- October 5, 1988, plebiscite-itself tremes in favor of moderate con- solutes vanished from debate partly a product of the remark- servatives, Christian Democrats, about economic policy. Today's able coalition of diverse and quar- and socialists. tone is one of calm and reason. relsome opposition groups-the Addressing a jubilant crowd of Center-left economists are cham- process of consensus has been 500,000 the next day, Aylwin-a pioning "fiscal prudence" and strengthening by the day. First, reassuring, grandfatherly figure- conservative legislators-elect are over the strong objections of vowed he would "loyally struggle acknowledging the need to be Pinochet, opposition leaders and to make political power an instru- "socially responsible." After two government ministers agreed on a ment to unite and not divide, to decades of ideological warfare and package of constitutional reforms create and not destroy, to close five years of remarkable economic that won easy approval by the old wounds that still pain the na- recovery, a consensus is emerging voters. Next, leftists swallowed a tional soul." From then on the that market capitalism, tempered bitter historic grudge to support a dire warnings of a return to "com- by social consciousness and legal Christian Democrat for president, munist chaos" disappeared, and limitations, is sounder than and the ambitions of dozens of pro-regime leaders moved to statism or socialism as basis for congressional candidates were make prudent peace with their development. negotiated away in order to make former enemies. Manuel Feliu, As for Pinochet, whose rule was a biased and unwieldy electoral head of the major business lobby, based on keeping Chilean society system work. signed a preliminary agreement divided into armed and suspicious Then came the election of with Bustos, head of the largest camps, the forces of history have December 14, 1989. The armed labor confederation. General simply been knitting around him. forces repeatedly pledged to Fernando Matthei, the air force The defeated military president respect the results, and the two commander who had dismissed still wields enough power to pro-government candidates in- Aylwin's coalition as a "clown's severely restrict Aylwin's maneu- stantly recognized Aylwin as the patchwork," expressed his vering room during his transition- al four-year term. But the country is no longer at war, and the old warrior seems an isolated anachro- nism. Will the consensus hold? Of course not: once the euphoria fades, the inevitable rivalries will del Periodismo resurface, the pent-up demands of the poor will intensify, and the days of hard bargaining will begin. Deep-seated mistrust remains on all sides, and powerful The hemisphere's Spanish-language antidemocratic forces continue at work. But all signs indicate a quarterly journalism review makes broad agreement to work within its debut with the 1990s democratic rules, and a new willingness to listen. Soon, German Correa will be negotiating with right-wing One year - four issues - $15 truckers who once sabotaged the Allende government. Soon, Contact former political prisoners will be PULSO debating former regime ministers Central American Journalism Program in the senate. Already a former Florida International University dictator is legally reporting to his North Miami, Florida 33181 democratically elected successor. For a country that was exiled from itself for 16 years, these are miracles enough. .

Hemisphere * Winter/Spring 1990 New Books on Latin America and the Caribbean

Nicaragua Divided La Prensa and the Chamorro Legacy PatriciaTaylor Edmisten "Edmisten puts current Nicaraguan politics into perspective and gives the reader a sense of the complexities of the present situation." -Charles Ameringer, Pennsylvania State University UNIVERSITY OF WEST FLORIDA PRESS March 0972-3 Cloth $19.95

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Hemisphere * Winter/Spring 1990 : i ~ Features: Chile

Art of Resistance and Renewal LA VCTC

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Features: Religion

Evangelical Awakening by David Stoll

School for military officers, in the stops gambling, right there he is bowels of which desaparecidoswere salvaging a big chunk of his sal- to Latin America's said to be held. But it was a sunny ary.... Consider the countries problems? Luis day on the crowded parade where you needn't fear secret Palau, the Argen- ground, and the multitude police, where you can expect jus- W hattine if evangelist, there were a cheered. Palau was not going to tice under the law, where the thought there was. That was why enter into debates about the cur- military is under the guidance of he went to Guatemala in Novem- rent political situation: his mes- the people rather than oppressing ber 1982 to help evangelicals sage was spiritual. Besides, the them, where education is valued, celebrate the 100th anniversary of president of the country was stand- where the press is relatively free," Protestantism there. The eyes of ing beside him. Palau reasoned. "Almost all such all Latin America were on Guate- "Here the one in charge is nations have experienced spiritual mala, he told a huge crowd in the Jesus Christ," declared Efrain Rios awakenings touching society at capital. They could make it the Montt, the born-again army the local level." first reformed nation in Latin general who had seized power Four months later Pope John America. Guatemala could be a eight months before. The tone of Paul II stood on the same spot country where the word of God his voice was harsh, almost bel- and celebrated Mass. His organ- captivated so many military of- ligerent, but hallelujahs rose from izers had vowed to surpass the pre- ficers and entrepreneurs that it the crowd below. "We defend our- vious assembly, and the crowd was brought about a social and politi- selves not by the army or its indeed somewhat larger. But cal transformation. The gospel swords," he proclaimed, referring when the Pope called upon the could liberate Guatemalans from to the most successful counterin- people to hew to their faith, it was the chains of sin, Palau went on, surgency force in Central Ameri- because the Catholic Church was and it could liberate them from ca, "but by the Holy Spirit." losing ground on many fronts. It the chains of poverty, misery, and What Latin America lacked, the could no longer claim Latin Amer- oppression. Through the gospel general and the evangelist felt, ica as its own. The traditional ofJesus Christ, the evangelist was born-again Protestantism; religious monopoly was giving promised, the new Guatemalan only a mass conversion along way, inside the Catholic Church in could build a new society. these lines, a moral transforma- the form of dissident movements At the rear, soldiers lounged tion at the popular level, could and outside the Church in the about the walls of a grim medieval- save Latin America from poverty form of evangelical churches. like structure, the old Polytechnic and chaos. "If we could eliminate infidelity and immorality in Latin What Happened to Liberation America, we could cut poverty by Theology? David Stoll is a doctoral candidatein half in one generation," Palau was anthropology at Stanford University accustomed to claim. "If a man Estimates suggest that since 1960 and the author of Is Latin America gives up immorality with women, evangelicals have tripled to more Turning Protestant? (University of gives up getting drunk and all the than 10% of Latin America's popu- CaliforniaPress, 1990). waste ... that goes with it, and lation. If that same rate of growth

Hemisphere . Winter/Spring 1990 continues, by early in the next cen- put liberation theology into prac- nation is, according to many tury evangelicals will comprise a tice. Although base communities converts, an experience of em- third of the population. Owing to continue to flourish throughout powerment. Whether converts are high rates of Catholic nominalism, Latin America, Berryman esti- getting off the bottle, spreading they are already becoming the mates they have been set up in majority the gospel, or striving to improve of active churchgoers. only about 10% of the parishes. their lot, they often Evangelicals speak of gain- first became a major ing control over their lives and dis- presence in Chile, where they now covering their destiny. claim about 20% of the people, Some of the clearest signs of and in the huge population of grace are North American in ori- Brazil, where they claim about 15%. Since the 1970s Central gin: the evangelist in suit and tie, the stage revival, the trip to an in- America has taken the lead in ternational conference sponsored rapid growth: in Nicaragua evangelicals claim a fifth by Billy Graham. Yet the rhythms of the popula- of the movement are very Latin tion, and in Guatemala a third. American. The vast The figures may majority of be inflated, Latin American evangelicals are but they worry Catholic authori- Pentecostals, who seek ties. Beleaguered parish priests after special gifts of the Holy Spirit-speak- sometimes give even higher figures. ing in tongues, prophecy, and Evangelical inroads are espe- faith healing-which have affin- cially surprising in view of what ities with the emotional states of was supposed to be the wave of traditional folk Catholicism. the future in Latin America: libera- Ironically one of the directives tion theology. The first signs of most often received liberation theology appeared fol- from the Holy is to break away from North lowing the Second Vatican Coun- Spirit American control. cil (1962-65) and its effort Research by to missionaries, many of them asso- renew the Roman Catholic ciated with the Fuller School of Church. Shoring up the Church's World Mission in Pasadena, Cali- popular base with social activism fornia, shows that North Ameri- meant alienating governments cans who try and military establishments. to stay in charge of Persecution by governments Latin American churches When Central America broke end up out and opposition from much of the choking off growth. When mis- in open warfare in the late 1970s, Catholic hierarchy, including sionaries are forced to leave, it is both advocates and enemies of Pope John Paul II, have taken common for churches liberation theology pointed to grow to it as their toll. In a death-squad state faster. After all, once local leaders the reason for new forms of grass- like Guatemala, liberation theol- are on their own, roots support for revolution. the only way ogy seems to have had the unin- Depending on they can make a living is by going your point of view, tended effect of promoting out and spreading the faith. As for "consciousness-raising" was mobi- evangelical growth. When Cath- North American handouts-fre- lizing the masses or an insidious olic activists encouraged the poor new form of subversion. Govern- quently accused of being the to confront power structures, they reason for evangelical ment death squads began to mur- gains-they abandoned the usual role of are more likely to encourage inter- der priests and catechists relig- and sud- ion as an apolitical sanctuary. nal squabbling than to attract last- denly there was a martyr church, Reprisals from the Guatemalan ing converts. with what appeared to be a vast army forced survivors to seek safe Under popular movement behind it. harsh austerity regimes, haven, and they have found it in evangelical churches have become A decade later evangelical conservative born-again churches. for poor people to Protestantism is to be encountered an opportunity As born-again Protestantism be- organize themselves wherever one goes in Latin Amer- in a politically comes a part of the alarming new safe way. Dismissing revolutionary ica, but liberation theology re- power configurations in the agendas as illusory, these groups quires more searching. Author Western Hemisphere, it continues concentrate on the moral strug- Phillip Berryman notes that sev- to be a popular movement on the eral times as many gles of their members to stop people belong level of poor villages and neigh- drinking, hold their families to- to evangelical churches as to the borhoods. What skeptics interpret gether, and work their "Christian base communities" that way up in as an ethic of passivity and resig- the world. Far from representing

Hemisphere . Winter/Spring 1990 Features: Religion

diversionary issues, vice and vir- move focused Sandinista reactions greater freedom to organize tue can determine whether the on the country's evangelicals. In against the revolution. Yet the poor survive in countries being 1980 a US diplomat began to US-sponsored "freedom fighters" torn apart by the international channel money to Nicaraguan pas- pushed Nicaraguan evangelicals debt crisis and social violence. tors through an anti-Sandinista into the line of fire, with such missionary working for In-Depth devastating results that many Evangelism, a Costa Rican spin-off wanted to flee to the US-hardly Invasion of the Sects of the highly regarded Latin the way to build strong local churches as most missionaries In Guatemala the brief rule of America Mission. At one point 600 realize. Efrain Rios Montt in 1982-83 was pastors--40% of the entire Nicara- Fearful of being burned them- more a product of the evangelical guan pastorate-were receiving from selves, the majority of evangelical boom than a cause of it. But he small monthly installments missionaries kept their distance left a powerful impression, preach- this source. from the Reagan administration's ing every Sunday over the air- As soon as the Sandinistas war in Nicaragua. Only a few waves while leading a ferocious began to crack down on evangeli- joined Catholics and ecumenical counterinsurgency campaign. cals suspected of undermining Protestants in opposing it, how- Rios Montt has come to symbolize national defense, they could be ever, encouraging the idea that both the hope and dread over accused of religious persecution. conservative evangelicals are evangelical expansion in Latin This task was undertaken by the pawns of US foreign policy. America. Five years after being Institute on Religion and Democ- deposed by fellow army officers, racy, a neoconservative group As the contra war shows, North he launched a campaign to be dating to the start of the Reagan American missions continue to be elected president in 1991. Early administration. After the US so influential that they can give polls identified him as one of the Congress cut off the contras for local evangelicals a reputation two frontrunners, even though their human rights violations, they do not deserve. US-based the Guatemalan constitution dis- various evangelical groups con- agencies still dominate evangelical qualifies him as the past leader of ferred with Colonel North on how radio and television in Latin a coup. to provide them with "humani- America, supply the major Among the most preoccupied tarian" support. Evangelicals who revivalists, train many of the na- by Rios Montt is the local Catholic came to the aid of the contras-in- tional leaders, and finance the ef- hierarchy, which has spoken out cluding Pat Robertson and the forts to integrate the hundreds of against the "invasion of the sects," Christian Broadcasting Network, Latin American denominations and has accused the US govern- Gospel Crusade, Trans-World Mis- into suitably conservative national ment of encouraging evangelical sions, and the Christian Emer- alliances and councils. Even if the Protestantism as a way to keep the gency Relief Teams-tend to be vast majority of evangelicals now region under control. This idea of charismatic, the style of Pentecos- belong to Latin American-run a born-again planning room deep talism tarnished in the 1987-88 churches, their leaders continue in the National Security Council television scandals. One reason to look to North Americans for (NSC) sounds like a figment of the charismatic Protestants found inspiration. imagination. Obviously it could North persuasive is that he is one Evangelical politics is not just a never explain a popular religious of them, as a member of the function of what missionaries movement, but it might explain Church of the Apostles in Fairfax, want, however. The churches how that movement is being Virginia. resulting from all the splits away manipulated. After all, an NSC of- Together with the Reagan ad- from missions, not to mention fur- ficial named Oliver North was no ministration, these groups por- ther splits ad infinitum, are figment of the imagination, nor trayed Sandinista Nicaragua as a notoriously hard to organize and the way he and the Reagan ad- furnace of religious persecution. lead in any particular direction. ministration used evangelicals as Actually evangelicals were always High-publicity congresses such as part of their "low-intensity" war- free to worship. The Comit6 Evan- "Los Angeles '88," which drew fare against the Sandinistas in gilico Pro-Ayuda al Desarrollobuilt 6,316 Hispanic delegates to Nicaragua. up an impressive pro-Sandinista southern California and made US influence-buying began evangelical alliance supported by evangelicals look like a movement with the Miskito ethnic minority ecumenical Protestants in North coordinated from the US, beg the on the Atlantic Coast, several America and Europe. Gradually question of who is represented years before Oliver North came the Sandinistas learned how to ac- aside from the leaders transported on the scene. Since the Miskitos commodate conservative Protes- to the occasion by North Ameri- are Moravian Protestants, this tants, at the cost of allowing them can sponsors.

Hemisphere . Winter/Spring 1990 The Perils of Protestantism ful capitalism in Latin America, the world yet continues to fail so that is, the kind that benefits the spectacularly for most Latin Amer- Compared to Catholic martyrs majority of people. So believe icans, danger lurks in promising and Marxist revolutionaries, pious evangelists such as Luis Palau, as rewards for Protestant virtue that folk singing hymns in cinder- do a growing number of converts fail to materialize. What happens block chapels are hard to visualize from Central America's monied when debt and disorder choke off as the blazing edge of social classes. Many are to be found in the possibilities for what mission- change in Latin America. Yet as affluent charismatic congregations ary thinker Guillermo Cook has sociologist David Martin points such as the Church of the Word, called "redemption and lift"-the out, these kinds of groups have a which attracted Rios Montt several past capacity of evangelical Protes- long history. From the Protestant years before he took power. Like tantism to help converts move up- Reformation to the Industrial Oliver North, these affluent charis- ward in the social scale? Revolution, in frontier awaken- matics combine free-market So great is the ambiguity and ings in North America and now all ideology with belief in miracles. flux in grassroots religion that it is over the colonized world, con- time to think in terms of an over- gregational forms of social organi- arching religious reformation zation have helped the victims of embracing both liberation theol- capitalist transformation survive it. ogy and evangelical Protestantism. Evangelicals are not alone in The common denominator is con- organizing new congregational gregational social organization- groups in Latin America. Some in the base communities of libera- Catholics are doing so as well by tion theology, in the charismatic promoting base communities and renewal in Roman Catholicism, the charismatic renewal, a and in the evangelical churches. separate revitalization movement Interpreters of varying persua- that has adopted the Pentecostal sions have given base commu- agenda of baptism in the Holy nities an aura of radicalism and Spirit. Each of these Catholic and evangelical congregations an Protestant movements is organ- image of conformism. The reality, ized around the Bible and small, though, is more complicated. voluntary face-to-face groups that However different the ideas of reinforce and discipline their evangelical missionaries and polit- members. Each is encouraging ical activists may be about the poor people to redefine them- direction their struggling believers selves, renegotiate their relations should take, the influence of out- with powerholders, and work out siders has limits. Owing to the new forms of survival in an ever punishment being taken by Latin more menacing political economy. America's poor, there may be less Each is building up new kinds of difference in the future between communities and redefining how base communities and evangelical men are expected to behave congregations than there is now. toward their families. "Tonight we Meanwhile evangelical Protes- are going to weep!" a burly Guate- tantism has become a rising in- malan preacher bellows with his dicator, along with debt, inflation, fists slashing the air. "Tonight unemployment, and violence. It is grown men are going to break Looking for vindication as revolu- also stirring Latin American fears down and cry!" How men treat tionary movements threaten their of deepening subordination to the their families, how children are privileges, they hope to call down US. Is born-again Protestantism socialized, and how people relate the Holy Spirit on Central Ameri- really a vast revitalization move- to authority-basic relationships can capitalism and give it a sense ment, or is it just a manipulated in Latin American culture-are of moral responsibility. bearer of false hopes from the US? being reworked in congregational With their suits and ties, Protes- In Central America, US policy- religion. tant evangelists project an image makers and the religious right Once we draw parallels with US of capitalist prosperity, an old and have made it more difficult to and European Protestantism, it is tragic dream in Latin America. At choose between these two inter- tempting to view evangelical a time when the capitalist market pretations than might otherwise growth as a harbinger of success- is triumphing politically around be the case. .

Hemisphere . Winter/Spring 1990 Features: Religion

Divided Nation, Divided Church by Brady Tyson

hundreds of others were equally Minas Gerais. electorate chose Fernando active on Collor's behalf. Since 1983, when the military Collor de Mello as the coun- The electoral activism and polit- began to relax its iron hand, a try's first popularly elected ical division of the Confederafdo major surprise has been the president in 30 years. Yet the Nacional dos Bispos do Brasil failure of Brazil's ecclesiastical n December 1989 Brazil's electoral campaign laid bare a (CNBB) stem partly from the base communities to emerge as a trend of political polarization Church's travails during the mili- powerful new bloc of electoral sup- within the nation and its Catholic tary dictatorship of 1964-85 and port for populist politicians. Even Church. On one side are interests partly from today's climate of hy- so, the country's 85,000 to that fear rapid, radical social perinflation and widespread im- 100,000 base communities, whose change. On the other side are in- poverishment. Both sides of total membership is three to four terests committed to the expan- Church leadership are painfully million people, are significant in sion of popular participation in aware of the gravity of the nation's the political mobilization of the politics and to a more equitable current economic ills. What poor and as a school for new distribution of wealth. divides the Catholic hierarchy are grassroots leaders. Not only are profound disagreements over the they activists in local development causes of these ills and the pro- and religious issues. The majority From Brazil to Rome posed role of the Church in ad- of their hard-core members are During the electoral campaign dressing them. When the also activists in Lula's Partidodos many bishops and cardinals open- Church's upper echelons speak, Trabalhadores(PT), where they rep- ly or quietly sided with one side or they tend to do so as progressistas resent more than a third of Lula's the other. For example, in an elec- and conservadores, though neither political base. tion-day homily on the conserva- voice is monotonic. The grassroots focus of the tive O Globo network's weekly During the military dictator- progressistas contrasts sharply with television show, Rio de Janeiro's ship the progressive movement the top-down approach of most Cardinal-Archbishop Dom emerged within the Church to conservadores. Such conservadores Eugenio Salles lambasted the "left- defend priests and nuns from generally stress passive acceptance ist parties," repeating almost tex- government repression. The of the religious and sociopolitical tually the charges of conservative evolution of the progressistas,which hierarchy and believe social candidate Collor against his popu- involved the "preferential option change must flow in slow, trickle- list opponent, Luis Inicio "Lula" for the poor," as formulated at the down fashion. This approach da Silva. In contrast, a leading 1968 Medellin and 1979 Puebla reflects the traditional orientation bishop, Dom Mauro Morelli of a conferences of Latin American of the European Catholic Church, diocese that neighbors Rio de bishops, led to its advocating a which deeply distrusts Third Janeiro, was part of a pre-election more communitarian Church. World movements. It appeals to welcoming delegation for Lula This orientation fits the Latin the values of ordem e progresso and was mentioned as a possible American-wide mold of ecclesiasti- through the traditional hierarchy member of Lula's presidential cal base communities. Heading and symbols of the Church, as cabinet. Hundreds of priests open- the progressistasare Dom Paulo provided by Pope John Paul II. ly campaigned for Lula, while Evaristo Arns, a Franciscan who is Since the 1970s individualistic, the cardinal of Sao Paulo; Dom evangelical currents-which Aloisio Lorscheider, a former provide a conservative Catholic president of the Episcopal Con- alternative to fundamentalist Brady Tyson, professor of internation- ference of Latin America who is Protestantism-have broadened al relations in the School of Interna- the cardinal of Fortaleza; and and invigorated the conservadores. tional Service, American University, Dom Luciano Mendes de Almei- At the lead of the conservadores has served as a Methodist missionary da, a Jesuit who is president of are Cardinal Dom Eugenio Salles, in Brazil. de archdiocese, CNBB and .bishop . ... of ., Mariana. of the Rio ,JJaneiro

Hemisphere * Winter/Spring 1990 and Cardinal Karl Ratzinger, a conservative bloc led by Ratzinger this respect Brazil is the world's German, who is president of the and Salles; John Paul II, they largest Catholic nation. Moreover Congregation of Doctrine and believe, is a potential ally. its religious currents are tightly Faith of the Curia, the Vatican's From the progressive stand- bound up with the daunting array powerful administrative body in point, the Pope has manifested and depth of the country's social, Rome. Under Ratzinger's strong deep concern for the poor of cultural, political, and economic leadership, the Curia is even more Latin America, Africa, and Asia; dynamics, as illustrated by the staunchly conservative than John and in spite of his emphasis on spread of evangelical Catholicism. Paul II. It is therefore determined the traditions of hierarchical struc- Not surprisingly the Catholic to discipline, disband, and silence ture and papal authority, he sym- Church of Brazil is an innovator the progressistas,in favor of a tradi- pathizes with the progressive in theological thought and prac- tional European approach. movement's goals. Yet, according tice. Strident criticism of the conser- to the progressistas,the Pope's Meanwhile the profundity of vadores by the political left and the capacity to act on his sympathies is Brazil's economic and social chal- progressistascaused some parishes restricted by the pronounced lenges call for its traditional politi- in Minas Gerais to vote for Collor, conservative bent of the vast cal system-fragmented and out of fear the "communist lean- machinery of the Catholic Church fragmentizing-to yield to a new ings" of Lula and the Frente and by his dependence on the vision. At stake is the democratic Popularwould lead them to "close leadership and bureaucracy of the process of articulating and imple- the churches." During the presi- Curia. The progressistasclaim that menting one or another way out dential campaign, Rio de Janeiro's a result of the organizational of Brazil's current plight. This major daily, OJornaldo Brasil, pub- leverage of Ratzinger and Salles is process will continue to be stimu- lished two or three signed articles that, of the 50 new Brazilian lated by, and reflected in, the pro- each week by leading conservative bishops named during the tenure gressive and conservative sectors Catholic clergy, attacking their of John Paul II, none has been a of its Catholic Church. . counterparts in the progressive progressista:all have represented camp. The conservative perspec- either the moderate or conservative is more culturally pervasive tive blocs, thereby undercutting and widely accepted among Brazil- the influence of the progressistasin ians than that of the progressistas, CNBB. who represent some 10% of the Turnabout electorate. A political disadvantage of the conservadores is their limited Brazilian Dynamics is fair play organization at the grassroots Despite the efforts of the progressis- level, though to some degree the tas and conservadores alike, Brazil- approach of the Catholic evangeli- ian society will continue moving cals-including their aggressive towards a tolerant secularism. Sim- use of the electronic media-is ad- ilar to Italians and French, Brazil- dressing this weakness. ians will tend to respect, but not to Their differences aside, the adhere politically, to any sector of ideologies of both the progressive the Church. The progressistas and and conservative camps are conservadores will remain signifi- anchored in the Catholic Church's cant minority political forces. "organic" view of society. The After all, they wield powerful Church-including John Paul II- symbols and authority, and they has criticized capitalism as well as possess major cadres and organiza- communism, claiming that neither tional resources. The Church in comprises the truly just and order- general, however, does not com- ly society espoused in the mand the attention of most Church's social teachings. This Brazilians. view has propelled a search for an The struggle between the RUN-UF-MILLmaps place the U.S, above. Since elusive "third way" upon which to Catholic progressistasand conser- "upper" is equated with 'superior," this has bred misconceptions and mischief. The Tumrnbout Mop build a harmonious world. Many vadores will continue to be played of the Americas offers a corrective perspective. of the progressive camp's leading out in Brazilian political forums, For students, office, gift giving. In art colors, 17x23" bishops believe that, in their quest English,Spanish or Portuguese. $7.00at book and but its principal arena will be map stores. Or by mail $8.50 pp; (add'l maps $7.00). for such a world, the main oppo- within the Church, including the Foreign $9.50 - Laguna Sales, Dept. K 7040 Via Valverde, San Jose, CA 95135 In Calif. aad 6% s.t. sition within the Vatican is the Vatican and world Catholicism. In

Hemisphere • Winter/Spring 1990 'ort-of-Spain

TRINIDAD

0 Siparia

VENEZUELA

W! Haiti: New Cast, Old Script I by Alex Stepick

The Rainy Season The well-worn cliche, "plus ca old regime-the various divisions by Amy Wilentz. New York: Simon change, plus c'est la meme chose," of the armed forces, the mulatto and Schuster, 1989. 427 pp. $19.95. could hardly be more apt. A elite, and the Duvalierists-scram- military junta, massacred voters, ble to recover their power and fraudulent elections, and repeated constrain the new forces. honking of car horns coups have been punctuated by Most foreigners, and especially awakened me before violence, looting, and apparent journalists, fail to see all these oc- dawn. I was living in the chaos. A few Duvalierists have currences. A few journalists, for- Little Haiti neighbor- been uprooted, killed, or exiled, tunately, are exceptions. They hood of Miami, and my but many remain in place. And learn Creole. Then they venture neighbors were prematurely cele- the physical conditions that shock alone beyond Port-au-Prince and brating the demise of Jean Claude and depress so many from the listen to those who otherwise have Duvalier after the US government developed world persist: the per- no voice. had mistakenly announced his vasive, wretched poverty and the departure. By mid-morning the devastated, eroded landscape. It A Deeper View celebration evaporated. It was all appears utterly hopeless, at only the first of many times that least to most foreigners. Amy Wilentz, who first went to both US authorities and Haitians When writing and talking Haiti as one of the pack covering mistakenly thought Haiti had about Haiti, foreign journalists the impending downfall of Jean really changed. and diplomats tend to fix their Claude "Baby Doc" Duvalier, has Precisely a week later, I was concentration on the succession of produced a book that easily out- again awakened by pre-dawn dictators. Except for quaint and shines the journalistic reports of revelry from the streets. This time sporadic reports on voodoo, their publications such as the New York Duvalier really had left, trans- attention remains riveted on the Times, the Washington Post, and ported to France aboard a US gleaming white national palace Time. Wilentz stayed longer, knew army plane. The celebration con- and the surrounding military bar- more Creole, and talked to more tinued for a number of days, fill- racks. They search for the will and Haitians than any other journalist ing Little Haiti's streets with desires of the Haitian masses by since Bernard Diederich, who people and an impromptu parade talking to those who speak easily detailed Frangois "Papa Doc" of cars. Hope filled the air. understandable English. Then Duvalier's rise to power. Over the next four years the they move on, called by the next Her book details the three scene repeated itself again and crisis in Nicaragua, El Salvador, or years of instability from the fall of again as five governments came perhaps China and Eastern Baby Doc Duvalier in early 1986 and went, each promising im- Europe. They do not have the to the beginning of 1989. While provements and democracy and time to penetrate beyond their scholars will find fault with her each failing to deliver on its dazzling and depressing first im- book, she depicts a Haiti far more promises. Soon the phrase pressions of Haiti. complex and more human than "Duvalierism without Duvalier" Appearances can be deceiving, other journalists describe, and far spread beyond the radical fringe. though, especially in Haiti. Be- more vivid and accessible than tween the violent punctuation scholars report. points and the repetitious riot The hero of her story is Father Alex Stepick is associateprofessor of scenes, social forces move individ- Jean-Berprand Aristide, the anthropologyat FloridaInternational uals; and since Duvalier's depar- diminutive, charismatic Salesian University. His most recent publication ture, subtle rearrangements in priest whose stirring sermons and (with Carol Dutton Stepick) is "People these forces have emerged. Grass- fearless deeds galvanized many of in the Shadows: Survey Research roots organizations have arisen; Haiti's poor in the aftermath of among Haitiansin Miami," Human liberation theology inspires; the Duvalier's departure. Aristide Organization (Spring 1990). press speaks; and the forces of the emerges as a remarkably coura-

Hemisphere * Winter/Spring 1990 F 0 R U M

geous man, as when he walked at the front of a march on Fort Dimanche, the ending point for many of Duvalier's enemies. Sol- diers fired on the crowd, but Aristide marched forward with Bible and microphone in hand, broadcasting the incident live for Radio Soleil (Haiti's Catholic-run radio station). Six were killed and more than 50 wounded. Aristide became a national hero. Later, he himself became the enemy as attacks came both from more conservative forces within the Church and from the armed forces. In a sense Aristide's popu- larity saved him. To martyr him would have roused the masses even more than his stirring sermons. The Church ordered him out of the country, but the book ends in January 1989 with his refusal to leave. Instead he had gone into hiding, sending cas- settes to radio stations urging an uprising: "Alone we are weak; together we are strong. Together, we are the flood. The blessing of the Lord is upon the people. Let his grace descend until the flood itself brings down all Duvalierists, all Macoutes, all criminals from this day forth and forever more, amen" (p. 391). There is no doubt where Wilentz's sympathies lie-with deep, fundamental change, em- powerment of the urban and rural masses, and dechoukaj, "the uproot- ing of the old system"-but the book does not focus solely on Aristide and the popular organizations that arose in the wake of Duvalier's departure. Wilentz provides a voice to the opposing factions within Haitian society. She I.ittk Hnit%. Minmi. nftPr poignantly contrasts herhermcotrst firsthand Little ththu rlnlmf;7/1fd nf"Knhl fBbDc nnr" /F;hr?,nnl e a98 108/;1,rta,I

Hemisphere . Winter/Spring 1990 Review Forum

experiences with Aristide to the provides condensed descriptions nalists typically describe the hor- impressions, stories, and rumors of the Haitian Revolution (1792- rible events, indicating that the sown by his enemies-US Embas- 1804), foreign (especially US) aid, army or "thugs" were responsible. sy officials, American missionaries, the genesis of deforestation and Little effort and few column and voodoo priests formerly close erosion, the evolution of Haitian inches are devoted to addressing to Duvalier. politics from the ashes of the the question of what interests the For example, she persuasively Revolution, and the social and cul- army and "thugs" are defending portrays the views of the mulatto tural meaning of voodoo. These so violently. Similarly journalists elite by focusing primarily on a historical synopses provide a seldom address why a dictator dinner party she attended in framework for interpreting her stays in power. Petionville, the most exclusive sub- travels and exploits with peasants, These omissions imply that the urb of Port-au-Prince. Wilentz ef- political candidates, development sole basis for the stability of non- fectively presents the positions of workers, voodoo priests, mission- democratic regimes is repression. the US Embassy spokesman, as aries, children from the poor Thus comes the expectation that she charts his drift from firm op- neighborhoods, army officials, when a repressive regime is timist as the Namphy junta and vigilantes. removed, democracy and freedom promised democracy, to dejected will follow. skeptic immediately after the elec- This perspective overlooks the tion massacre of November 1987. extent of domestic and interna- International journalists also oc- tional support for the dictatorial cupy a central place, although her regimes. Through both repression portrayal of many of them is less and concession, Papa Doc sympathetic than her picture of recruited and consolidated sup- Haitians, even Duvalierists. port, most obviously in the armed Wilentz, however, apparently forces, but also among civilians did not have any close contacts who gained access to power and within the Catholic Church hierar- wealth. These Duvalierists have chy, the one group that has no struggled unceasingly to retain voice in her book. She accurately their privileges. Moreover the describes the Church as riven by Duvalierist power base was built divisions between progressives upon the solid foundation of un- and conservatives, but no one ar- equal social relationships between gues the cause of the Church as mulattos and blacks and between an institution, its fundamental con- Who's Responsible? city and country, which have ex- cern for maintaining nearly 2,000 The book's most important isted since the French established years of spiritual integrity. While achievement is that it conveys the plantations in Haiti. There are politics have always intruded on, frustrations and failures of Haiti's thus many others, such as mer- and were frequently launched by, recent efforts to obtain democracy chants and those involved in the the Church, politics were usually without implicitly resorting to the assembly industries, who may not restrained if the Church risked ex- racist explanations that commonly be firm Duvalierists, yet who see pulsion or if the society, at least in gird the opinions of non-Haitians. grassroots democratization as a the minds of conservative Church In the wake of the 1987 election threat to their interests. leaders, risked breakdown. The massacre and subsequent military Experts on Haiti will find fault Haitian Catholic Church did expe- regimes, some US officials stated with much that is left out of rience expulsion under Papa Doc, that no one could "expect any- Wilentz's analysis of Haitian social and to some, the politics of Aris- more from Haiti" than dictators, structure. More important, how- tide and other progressives endan- repression, and corruption. The ever, are the details and narrative gered the fundamental cohesion responsibility for terror and cor- she does include, which provide a of the society. While one may dis- ruption was swiftly hung on the sympathetic and compelling ac- agree with the position of conser- regime, and either explicitly or count of the three years of Haiti's vative Church members, it would implicitly upon the entire people struggles after Duvalier fled for have been better for Wilentz to and culture or upon an entire France. u give a voice to those conservative race. forces who, for the moment, have Journalists are more subtle regained the upper hand. than American officials. Rather (Photos by Gary Monroe, Photography Wilentz attempts to provide than directly blaming individuals Department, Daytona Beach Com- context and historical depth. She within Haitian institutions, jour- munity College)

Hemisphere . Winter/Spring 1990 New and Recent Books on Latin America

THE GRAND STRATEGY OF THE UNITED STATES IN LATIN AMERICA Tom J. Farer In this collection of essays, Tom Farer examines critically the stand taken by U.S. foreign policy makers on such issues as right- and left-wing dictatorships, revolution, human rights and national autonomy. In this fascinating manner, fusing sharp observations at times with polemical intent, Farer scrutinizes the key assumptions, including the "Soviet or revolutionary threat," which have guided American foreign policy for Latin America since the end of World War II. Farer describes the grand strategy of the United States in Latin America (he sees very much the same strategic assumptions guiding U.S. policy throughout the Third World) as unrealistic and misguided in terms both of U.S. interests and ideals. His essays combine a sophisticated analysis of Latin American society with assessment of U.S. policy from legal, moral and strategic perspectives. ISBN: 0-88738-155-3 (cloth) 448 pp. $39.95 THREE LATIN AMERICAN SOCIOLOGISTS GINO GERMANI, PABLO GONZALES CASANOVA, FERNANDO HENRIQUE CARDOSO Joseph A. Kahl, new Introduction by Peter B. Evans This is the long overdue second edition of Joseph A. Kahl's masterful Modernization, Exploitation, and Dependency in Latin America. In the book, Kahl describes, examines and introduces the life and work of three of the most important figures in the development of comparative politics and political sociology: Gino Germani (Argentina), Pablo Gonzales Casanova (Mexico) and Fernando Henrique Cardoso (Brazil). As Peter B. Evans points out in his splendid Introduction, the book has not lost its importance and attractiveness in the years that have passed. Rather, the subsequent developments in comparative scholarship, as exemplified in the fate of modernization and dependency theory, have only highlighted the influence of the three Latin Americans. ISBN: 0-88738-169-3 (cloth) $24.95 ISBN: 0-88738-700-4 (paper) 240pp. $14.95 POLITICS AND PETROLEUM IN ECUADOR John D. Martz In this book, John D. Martz probes the differences and similarities between military authoritarianism and democratic pluralism through an analysis of the politics of petroleum in Ecuador. Martz uses a textured and detailed analysis of global oil companies and nationalist politics to trace the growth and evolution of Ecuador's petroleum industry. Against this interplay of politics and the nationalistic struggle against multinational pressures, he compares policymaking under military and civilian government. ISBN: 0-88738-132-4 (cloth) 432 pp. $34.95 REVOLUTION AND REACTION: BOLIVIA 1964-1985 James M. Malloy and Eduardo Gamarra This volume focuses on two decades of political life in Bolivia, from the overthrow of civilian president Victor Paz Estenssoro in November, 1964 until his return to office in August, 1985. The body of the book provides an account of the main contours of political economy in Bolivia from 1964 until 1985. The authors also present an interpretative analysis of the problem of regime formation in Bolivia by focusing on the alternations among various authoritarian and democratic modes of governance. In a concluding chapter the authors provide an analytical framework tying Bolivia into more regional trends concerning the questions of regime formation and transition. Bolivia is seen as an extreme case of a common set of problems that have pervaded the region during this period. ISBN: 0-88738-159-6 (cloth) 256 pp. $29.95

Ne rnwcN 80

Hemisphere . Winter/Spring 1990 Protestantism in Latin America by Marian Goslinga

Protestantism has always maintained a tenuous foothold in Latin America, the 20th century has Althoughwitnessed a veritable upsurge in evangelical missionary activities throughout the region. The resulting success has been at the expense of the Roman Catholic Church and can partly be explained by the latter's failure to align itself with the prevailing forces of change. In general the Roman Catholic Church in Latin America has continued to promote those traditional values and conservative concepts that can no longer fully satisfy large segments of an increasingly restless as well as more sophisticated population. The Protestant churches-mainline as well as the various "sects"-have stepped into this vacuum and, in most countries, have become a power to be reckoned with. The following is an overview of recent publications on the subject.

Anglicanism in Nicaragua, 1745- Bible in Hand: Evangelics March The Central American Evan- 1985. Robert W. Renouf. Anglican in Tikal, Guatemala. Paul Lewis. gelicals: From Protest to Prag- and Episcopal History, v. 57 (Decem- New York Times, v. 138 (June 15, matism. Everett A. Wilson. Interna- ber 1988), p. 382-96. 1989), p. 4. tional Review of Mission, v. 77 (January 1988), p. 94-106. Apuntes para una historia de The "Big Mango" and Christian presbiteranismo en Cuba. Rafael Mission. Roger S. Greenway. Christian Hope for Liberation Cepeda, et al. La Habana: Edi- Urban Mission, v. 6 (November and Popular Movements. Aloisio ciones Su Voz, 1986. 1988), p. 7-55. [About Mexico.] Krohling. Mission Studies, v. 6, no. 1 (1989), p. 35-40. [About Brazil.] At Home in Latin America: British Baptist Missionaries and Anglicanism in a New Context. Baptist Work in the Bahamas. John L. Kater Jr. Anglican and Peter Brewer. Baptist Quarterly, Church Growth in Acapulco: Episcopal History, v. 57 (March v. 32 (April 1988), p. 295-301. 1988), p. 4-37. Planting a Whole Presbytery. Richard Dye. Urban Mission, v. 3 (January 1986), p. 34-38. The Base Movement as a Model La cantera de donde fuimos of "Development." J. J. Krit- sacados: testimonios hist6ricos bautistas.Jose Maria Ruiz, et al. zinger. Missionalia,v. 17 (April A conselhamento pastoral e 1989), p. 31-44. [A comparison of Jorge Pixley, ed. Managua: Centro Intereclesial de Estudios Teol6gi- libertagio. Lothar Carlos Hoch. Latin American and African com- Estudos Teoldgicos (Brazil), v. 29, munities.] cos y Sociales, 1988. [About Nicaragua.] no. 1 (1989), p. 17-40. [Discusses Protestant and Catholic practice.] Befriad Kyrka: Latinamerikansk teologi. Carl Fredrik Hallen- Caribbean Churches and the creutz. Svensk Missionstidskrift, Redemptive Use of Mass Media. La cultura como mediaci6n para v. 77, no. 1 (1989), p. 1-53. Robert Bernhardt. CaribbeanJour- evangelizar la no-creencia en nal of Religious Studies, v. 9 (April America Latina.Jaime Vilez 1988), p. 27-34. Being Evangelized in El Salvador. Correa. Bogota: Consejo Episcopal Tim Dutcher-Walls. ChristianCen- Latinoamericano, 1989. tury, v. 105 (November 30, 1988), Celebration: A Centenary History p. 1084-85. of the Aramalaya Presbyterian Church, Tunapuna, Trinidad, De sectas a sectas: una aproxima- 1881-1981. Marianne Soarez ci6n al estudio de un fen6meno Marian Goslingais the Latin Ramesar, Horace Bhupsingh. apasionante. Angel Saldanra, et al. American and Caribbeanlibrarian at Tunapuna, Trinidad: Aramalaya Mexico: Claves Latinoamericanas, FloridaInternational University. Presbyterian Church, 1988. 1987. [About Mexico.]

Hemisphere . Winter/Spring 1990 Delegates of the World and the Hacia una fe evangelica latino- and Crisis, v. 49 (February 20, Sleeping Giant: Religion as americanista: una perspectiva 1989), p. 93-94. [Review of Faith of Interclass Politics in a Rural bautista.Jorge Pixley, ed. San Jose: a People: The Story of a Christian Panamanian Community. Gloria Editorial DEI, 1988. Community in El Salvador, 1970- Rudolf. UrbanAnthropology and 1980, P. Galdamez (1980).] Studies of Cultural Systems and Haitian Christians Press on Amid World Economic Development, v. 17 Poverty, Violence. David Disch. La lucha por el control religioso (Winter 1988), p. 323-50. Christian Times, v. 33 (May 12, e ideol6gico en la Argentina: 1989), p. 46-48. invasi6n de sectas y corpora- Etica protestante y progreso ciones. Hugo Ortega. Servicio de econ6mico: las colonias agrarias The House Church as a Tool for Informaciones Religiosas, no. 78 holandesas calvinistas en Argen- Urban Evangelism. Donald Jones. (March 1986), p. 15-18. tina y Brasil. Fred Jongkind. Urban Mission, v. 6 (March 1989), Cristianismoy Sociedad, v. 27, no. 1 p. 27-32. [About Paraguay.] Methodism's 150th Anniversary (1989), p. 83+. in Argentina: An Occasion for Re- Iglesia, cristianismo y religi6n en Evaluating the Missionary Role. Familiar Hymns in an Unfamiliar America Central: resumen bibli- Raymond K. DeHainaut. Interna- Context: Congregational Song in ografico, 1960-1980. Guillermo tional Review of Mission, v. 77 the Revival Zion Churches of Melindez. San Jose: Editorial DEI, (January 1988), p. 87-93. Jamaica. Terry E. Miller. Hymn, 1988. v. 40 (January 1989), p. 15-19. Metodismo, campesinado y lucha Inmigraci6n, libertad de cultos y por la tierra: dos experiencias. Five Principles of Indigenous desarrollo econ6mico. Jean Roy H. May. Cristianismoy Church Organization: Lessons Baptiste Bastian, ed. Cristianismoy Sociedad, v. 26, no. 2 (1988), p. 73- from a Brazilian Pentecostal Sociedad, v. 27, no. 1 (1989), p. 5- 90. [About Bolivia and Costa Rica.] Church. Reed E. Nelson. Missiol- 100. ogy, v. 17 (January 1989), p. 39-51. Ministering in Nezahualcoyotl: Is Latin America Turning The Community as the Resource. Die Frommen und die Siinder- Protestant? David Stoll. University Mariano Avila. Urban Mission, v. 6 Zivilisierte und Wilde: Die of California Press, 1990. (November 1988), p. 33-42. Mission der Rama in Mittel- amerikanischen Tiefland. Robin Jesus and El Salvadorean Mission and the Land: Whose Is Z. Schneider. Missiology, v. 14, no. Women. Ruth Mooney. Daughters the Earth? Michael Knoch. One 4 (1988), p. 221-31. [About the of Sarah, v. 15 (May-June 1989), World, no. 141 (December 1988), missionary activities of the p. 8-10. p. 11-14. [About the Evangelical Moravian Church in Central Lutheran Church's Small Farm- America.] Latin America Evangelist. Coral ers' Support Centre in Brazil.] Gables, Florida: Latin America The Fundamentalist Surge in Mission. [Periodical that began in Missionaries to Nepal, Colombia Latin America. Penny Lernoux. 1921 and is still being published Find Freedom. Kenneth H. Sidey. ChristianCentury, v. 105 (January on a regular basis.] Christianity Today, v. 33 (April 7, 22, 1988), p. 51-54. 1989), p. 47-51. Latin American Pentecostalism. God's People Have Suffered Miriam Reidy. One World, no. 135 A New Pentecost Hope in Soli- Enough. Statement by the Angli- (May 1988), p. 6-7. darity. John H. Sinclair. Christian can Bishops at Lambeth. Witness, Century, v. 106 (January 25, 1989), v. 72 (May 1989), p. 20-21. [About Liberation at Ground Level. p. 83-84. [About socioeconomic Central America.] Wayne W. Foltz-Urffer. Christianity conditions in Latin America.]

Hemisphere . Winter/Spring 1990 Publications Update

Nicaragua: On Retreads and Popular Religiosity and Evan- tischer Eschatologie in den Prayers. Susan E. Pierce. Witness, gelization in Latin America. gesellschaftlichen Konflikten v. 71 (April 1988), p. 14-24. Samuel Runz. SEDOS Bulletin, Mittelamerikas. Heinrich Schaifer. [About the Episcopal Church.] no. 5 (May 15, 1988), p. 155-66. Zeitschriftfiir Missionswissenschaft und Religionswissenschaft, v. 73, no. "No somos personas extravagan- Protestantism in Rural Guate- 2 (1989), p. 138-45. tes." Analia Bernardo. Servicio de mala, 1872-1954. Virginia Informaciones Religiosas, no. 110 Garrard Burnett. Latin American (May 1989), p. 16-17. [About Pen- Research Review, v. 24, no. 2 The Revelations of Spiritual Bap- tecostals in Latin America.] (1989), p. 127-42. tists in Barbados: 30th Anniver- sary. Barbados, 1987. One Nicaraguan Christian's Protestantismo e inmigraci6n en Perspective. Gustavo Paraj6n. Brasil: su implantaci6n en el con- The Roots and Fruits of Brazilian Christianity Today, v. 33 (March 3, texto del proyecto liberal moder- Pentecostalism.John P. Medcraft. 1989), p. 48. nizador y las consecuencias del Vox Evangelica, v. 17 (1987), p. 67- mismo. Martin N. Dreher. 94. Panorama del protestantismo en Cristianismoy Sociedad, v. 27, no. 1 Cuba: la presencia de los protes- (1989), p. 59-74. tantes o evangelicos en la historia Surgimiento o invasi6n fun- de Cuba desde la colonizaci6n damentalista a America Latina? espaniola hasta la Revoluci6n. Protestantismo, liberalismo e Bernardo L. Campos. Servicio de Marcos Antonio Ramos. San Jose: magonaria no Brasil do seculo Informaciones Religiosas, no. 99-100 Editora Caribe, 1986. XIX. Lothar C. Hoch, ed. Estudos (April-May 1988), p. 15-17. Teoldgicos (Brazil), v. 27, no. 3 (1987), p. 195-279. Pentecostales enfrentan el desa- Symbols of Salvation: A Local fio continental. Anibal Sicardi. Mayan Protestant Theology. Servicio de Informaciones Religiosas, Das Reich der Freiheit: Uber- David Scotchmer. Missiology, v. 17 no. 110 (May 1989), p. 6. legungen zur Funktion millenaris- (July 1989), p. 269-81.

The Ten-Year Crusade towards the Third Christian Millennium: An Account of Evangelization 2000 and Lumen 2000. Ralph Della Cava. Paper presented at the Conference on "The Right in Latin American Democracies," Columbia University, April 20-21, Mexican Academic ClearingHouse 1990. (MACH) To Be a Poor Church. Mark Materiales Academicos de Consulta Olson. The Other Side, v. 25 Hispanoamericana/Mexican Academic Clearing House (MACH) (March-April 1989), p. 9-10. has been exporting library materials worldwide since 1969. [About Haiti.]

* MACH sells single and multiple copies of Mexican books Too Much Separatism? M. E. Har- and serials, including government publications. rison. Urban Mission, v. 5 (March * MACH handles selective blanket order services for 1988), p. 40-41. [About Evangeli- academic libraries. cal churches in Peru.] * MACH gives free referral service and periodical book lists. Valores morais e liberalismo no protestantismo batista da Bahia Write for further information to MACH, Apartado Postal 13-319, Delegaci6n no seculo XIX. Narli Geralda Benito Jusrez, 03500, Mexico, D.F. Telephone numbers (915) 674-0567 and Teixeira. Estudos Teoldgicos (915) 674-0779. (Brazil), v. 27, no. 3 (1987), p. 269- i 79.

Hemisphere . Winter/Spring 1990