TSP TIPS I MUSINGS ON MAIDS I MORE RETIREE REFLECTIONS $3.50 / APRIL 2006 OREIGN ERVICE FJ O U R N A L S THE MAGAZINE FOR FOREIGN AFFAIRS PROFESSIONALS POISED TO FLOURISH? Despite Real Gains, Instability Haunts Latin America CONTENTS April 2006 Volume 83, No. 4 F OCUS ON L A TIN A MERICA F EATURES 20 / PRESSURE GROWS FOR CHANGE IN THE AMERICAS THE POLITICS OF HAVING A MAID / 61 The left’s recent advances in the region come even The decision to hire household help when posted as most of the hemisphere’s economies are performing overseas may seem a no-brainer. But for many FSOs, better than they have in years. it is quite complex. By George Gedda By Alexis Ludwig 27 / BRAZIL: LATIN AMERICA’S SUPERPOWER? LIFE AFTER THE FS: The U.S. and Brazil are fated to work for RETIREES HAVE THE LAST WORD / 66 accommodation, certainly in the hemisphere and More stories and advice about retirement from perhaps in the broader international sphere. the Foreign Service. By Mark Lore By Susan Maitra 33 / COLOMBIA IS COMPLICATED Colombians don’t find it easy to define what went wrong C OLUMNS D EPARTMENTS in their country, or how America can help them rectify it. PRESIDENT’S VIEWS / 5 LETTERS / 6 By Phillip McLean The Pay-for-Performance/ CYBERNOTES / 11 HE AND EXICO HAT S EXT OCP Trade-Off: Poisoned 39 / T U.S. M : W ’ N ? MARKETPLACE / 12 Whoever he is, the next Mexican president will Chalice or Win-Win? FSJ GUIDE TO EXTENDED have a keen appreciation of the complexity of By J. Anthony Holmes STAY HOUSING / 50 managing the bilateral relationship. SPEAKING OUT / 15 BOOKS / 72 By Deborah L. Riner Opening Embassies: FSJ GUIDE TO PROPERTY 46 / SENSING SENSIBILITY IN THE FALKLAND ISLANDS A New Approach Needed MANAGEMENT / 76 By Joseph Schreiber Today’s Falkland Islanders — visibly prosperous, INDEX TO wired and well educated — stand on the fringe FS KNOW-HOW / 18 ADVERTISERS / 82 of globalization. What lies ahead? Make the Most of Your AFSA NEWS / By Jim Dorschner Thrift Savings Plan CENTER INSERT 54 / BOLIVIA AT THE CROSSROADS By Steven Alan Honley Will Bolivia’s new president be a force for positive change REFLECTIONS / 84 or lead the country backward? This is the key question. The Streets of Nuevo Laredo By Peter DeShazo By Michael E. Kelly THE MAGAZINE FOR FOREIGN AFFAIRS PROFESSIONALS OREIGN ERVICE Foreign Service Journal (ISSN 0146-3543), 2101 E Street, N.W., Washington, D.C. 20037-2990 is published FJ O U R N A L S monthly with a combined July/August issue by the American Foreign Service Association, a private, non-profit Editor Editorial Board STEVEN ALAN HONLEY organization. Material appearing herein represents the opinions of the writers and does not necessarily represent Senior Editor TED WILKINSON, the views of the Journal, the Editorial Board or AFSA. Writer queries and submissions are invited, preferably by SUSAN B. MAITRA CHAIRMAN e-mail. 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TELEPHONE: (202) 338-4045. © American Foreign Service CARYN SUKO SMITH W W. J Association, 2006. Printed in the U.S.A. Send address changes to AFSA Membership, 2101 E Street N.W., Editorial Intern LAURIE KASSMAN SHAWN GUAN JOYCE W. N AMDE Washington, D.C. 20037-2990. Printed on 50-percent recycled paper, of which 10 percent is post-consumer waste. Advertising Intern KAY WEBB MAYFIELD MIHO KURISHIMA CHRISTOPHER L. TEAL Cover and inside illustrations by Elizabeth Lada APRIL 2006/FOREIGN SERVICE JOURNAL 3 PRESIDENT’S VIEWS The Pay-for-Performance/OCP Trade-Off: Poisoned Chalice or Win-Win? BY J. ANTHONY HOLMES The first member ingly low initial level and with a long lation and the OCP provisions. Our reaction AFSA re- phase-in. main concern is that the performance- ceived to news that Pay for performance is an unknown pay funding is not guaranteed and could the administration for most of us. From media reports of be reduced or eliminated for budgetary had finally approved DOD/DHS efforts to convert their civil or other reasons. This concern is con- the phase-in of over- servants to a PFP system and the firmed by the provision in the draft seas comparability administration’s Working for America WFAA that guarantees equivalent pay — but only at Act targeting the rest of the Civil funding for only five years after passage. the price of linking it to the conversion Service, one can easily view it as menac- AFSA’s support for the trade-off is of the entire Foreign Service personnel ing, ideological, and anti-employee. But based primarily on one basic calcula- system to a “pay for performance” it is clear from State’s own experience tion. Almost two-thirds of the FS that is (PFP) model — was to liken this trade- with the Senior FS conversion to PFP overseas will receive close to a 20-per- off to “a poisoned chalice.” While I am two years ago that it should be possible cent salary increase when full OCP personally not so negative, this trade-off comes into effect. We reckon that this is extremely serious and entails real We will negotiate to will offset much of the initial PFP risk, risks. It is impossible to measure pre- protect all our members particularly if the Foreign Service pre- cisely its costs and benefits, not now and and construct a pay cedes the Civil Service in adopting it probably not ever. There are simply too and its proponents want to demonstrate many unknowns. Nor is it something system that is that it works. on which AFSA has bargaining rights, fundamentally fair AFSA is very mindful that the FS so we cannot simply accept or reject it. and efficient. has many disparate components and It is a top management initiative and that members could easily find them- AFSA can either try to make the best of to make this work and have a win-win selves in situations that prejudice their it or try to get it defeated legislatively. situation all around. The reality is that competitiveness for PFP increases. We have chosen the former option. the present FS personnel system, with What about those in long-term lan- Getting OCP for the entire Foreign its rank-in-person, not in-job, annual guage training, specialists in small skill Service has long been AFSA’s highest evaluations, and competitive up-or-out groups, or specialists who compete with priority. We came very close last year. system is inherently PFP already. So generalists? We will negotiate to pro- The entire House of Representatives the changes in the system should be tect all our members and construct a passed it, without the PFP quid pro much less dramatic than many of our system that is fundamentally fair and quo, despite White House opposition. members fear. efficient. We anticipate that the ulti- But the Senate proved more difficult, The primary trade-off for FS mem- mate system will be much less winner- and there is no reason to expect a dif- bers will be the loss of the 3-percent take-all than the PFP system imple- ferent outcome this year, particularly automatic, annual, within-grade in- mented for the SFS two years ago. This given the dire overall USG fiscal situa- crease, which over a career accounts for process is likely to play out for much of tion. So AFSA is grateful that after five close to half of one’s salary growth. In the next two years, and we will provide years of rejection, State Department principle, this loss will be offset by an regular updates and ask for feedback as management has won White House equally large pool of performance pay it evolves. But although much work approval for OCP, albeit at a disappoint- money to distribute based on relative remains, AFSA believes that, on bal- performance. Details of the new sys- ance, the administration’s FY-07 budget J. Anthony Holmes is the president of the tem will be negotiated with AFSA after request offers an important plus for our American Foreign Service Association. Congress has passed the enabling legis- members. I APRIL 2006/FOREIGN SERVICE JOURNAL 5 LETTERS Lesser Posts? false statements, suppression of evi- ago. Coming from you, the plea is One inescapable and perverse con- dence, improper seizure of personal more meaningful and perhaps also sequence of Henry Ensher’s clanging property, misrepresentation of regula- more acceptable to policy-makers. defense of promotion priority for tions or other improprieties by those “Among the bilateral issues that those serving in posts linked to “the entrusted to protect us. If DS has to need to be addressed by the American time and attention an issue gets from resort to such means to justify the sus- and Iranian authorities, you list ‘claims our political masters” (January Letters, pension or revocation of security clear- by Iran that the U.S.