Volume 3 Number 1, Fall 1990

Hemisphere Volume 3 Article 1 Issue 1 Fall

1990 Volume 3 Number 1, Fall 1990

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Hemisphere

A MAGAZINE OF LATIN AMERICAN AND CARIBBEAN AFFAIRS Fall 1990 Volume Three * Number One Seven Dollars

EDITORIAL STAFF Editor: Anthony P. Maingot COMMENTARY Deputy Editor: Richard Tardanico Trade-offs? The US and the Caribbean by Bob Graham Associate Editors: Eduardo A. Gamarra, Mark B. Rosenberg Bush's Andean Initiative by Eduardo A. Gamarra Assistant Editor: Sofia A. Lopez Book Review Editor: Kathleen Logan Bibliographer: Marian Goslinga EditorialAssistant: Rene Ramos Circulation Manager: Raquel Jurado Copy Editor: Michael B.Joslyn REPORTS ProductionAssistants: Cristina Finlay, Pedro P. Garcia, Teresita Marill, Sontha Strinko Poisoning Ecuador's Oriente by Judith Kimerling and the Natural Resources Defense Council CONTRIBUTING EDITORS Janet M. Chernela Dario Moreno Letter to President Vinicio Cerezo by Philip Benjamin Heymann Rodolfo Cortina Lisandro Perez DennisJ. Gayle Luis P. Salas Bush's Enterprising Initiative by Richard E. Feinberg Jerry Haar Mark D. Szuchman Suzanne Koptur Kevin A. Yelvington Cultivating Exports by Charles Thurston Raul Moncarz EDITORIAL ADVISORY BOARD Francisco Rojas Aravena AnthonyJ. Payne Ettore Botta Guido Pen nano FAXFILE Bernard Diederich Alejandro Portes Wolf Grabendorf Sally Price Harry Hoetink David Ronfeldt Vaughan Lewis Selwyn Ryan Larissa A. Lomnitz Steven E. Sanderson FEATURES Abraham F. Lowenthal Saskia Sassen Frank Manitzas Carol A. Smith Richard Millet Yolande Van Eeuwen Panama: Obstacles to Democracy Andres Oppenheimer Arturo Villar Robert A. Pastor Juan Yai'es Disarming Politics by Luis P Salas

Hemisphere (ISSN 08983038) is published three Hope Restored by I. Roberto EisenmannJr times a year (Fall, Winter/Spring, and Summer) by the Latin American and Caribbean Center of So, What Did Happen? by Peter Eisner Florida International University. Copyright © 1990 by the Latin American and Caribbean Center, Caribbean Trade Policy ina Restructuring World Florida International University. All rights reserved. 1992: The EC and the Caribbean by Paul Sutton Hemisphereis dedicated to provoking debate on the problems, initiatives, and achievements of Latin The View from the Caribbean by Anthony P Gonzalez America and the Caribbean. Responsibility for the views expressed lies solely with the authors. A CBI Report Card by Carmen Diana Deere EDITORIAL, CIRCULATION, AND ADVERTIS- ING OFFICES: Latin American and Caribbean Center, Florida International University, University Park, Miami, Florida 33199. Telephone: (305) 348- 2894. FAX: (305) 348-3593. Please address manu- REVIEW FORUM scripts and editorial correspondence to the Deputy Editor Real-World Economics by Lisa R. Peattie SUBSCRIPTIONS: US, USVI, PR, and Canada: $20 Strategic Choices, Making Policy, Revolutionary Mexico a year; $36 for two years. Elsewhere: $27 a year; $50 for two years. Please make check or money order (US currency only) payable to Hemisphere PUBLICATIONS UPDATE This document was produced at a cost of $4,889.50 or $2.45 per copy. Labor Migration Policy by Marian Goslinga M M

Trade-offs? The US and the Caribbean

by Bob Graham

goods from the Caribbean Basin. their long-term collective eco- taken a potentially posi- Such a pact, then, could jeopardize nomic interests. The debate must tive decision to begin economic growth, as well as de- begin in the Basin, which has the negotiations on a free- stabilize fledgling democracies, most at stake. Since 1983, when the trade pact. Nonetheless, throughout the Basin. Caribbean Basin Initiative (CBI) be- this decision poses chal- came law, the region has taken ad- lenges for a region of great impor- vantage of the program to gain tance to the US: the Caribbean limited duty-free access to US mar- Basin. kets and to attract new foreign in- A US-Mexico trade pact must vestment. In 1990 the US Congress not damage--even inadvertently- passed and President Bush signed US trade ties with the fragile econ- a law strengthening CBI. The 1990 omies of the Caribbean Basin's legislation: emerging democracies. The US * Makes permanent the region's must also be sensitive to the impli- limited duty-free access to the US cations of a US-Mexico agreement market, which was to have ex- for the state of Florida, particularly pired in 1995. for agriculture, its second largest " Expands duty-free treatment to industry. include the assembly or process- It is widely recognized that ing of fabricated components of healthy economies in Latin Amer- 100% US origin. This change ica and the Caribbean translate would affect products ranging into profitable markets for US from electronics to leather goods products. Strong economies also such as shoes and handbags. improve the chances of solving * Separates CBI countries from hemispheric problems such as other world markets for the pur- drug trafficking and immigration. pose of determining injury to US But free trade must be fair trade. industries in unfair trade prac- In the case of agriculture, this tices cases. means negotiating a trade pact that - Extends special treatment for takes into consideration important CBI ethanol products (i.e., fuel) issues such as labor conditions, through 1992. chemical and pesticide regulation, Since 1988 the Caribbean Basin These are modest but useful and food safety. has experienced an unprecedented improvements. CBI supporters The decision by US president election binge. Except for Cuba wanted more but failed in the face George Bush and Mexican presi- and Haiti, democratic rule now pre- of strong resistance from the US dent Carlos Salinas de Gortari to in- vails throughout the region. After a textile, apparel, and shoe indus- itiate trade talks means the US and decade of war and political tur- tries. The Senate even defeated an Mexico will negotiate for a period moil, the US must help its friends effort to reduce-not eliminate- of up to three years to eliminate preserve their hard-won demo- import duties on inexpensive foot- trade barriers. A trade pact be- cratic gains. The best way to do so wear Some US producers will tween the US and Mexico, similar is by fostering economic growth oppose a trade pact with Mexico to the recently ratified US-Canada through trade. as well. Portions of agriculture and agreement, could make Mexican the electronics industry are sure to goods more competitive than Regional Response be among them. US negotiators will have to address these concerns The US and its neighbors in the if they are to forge an agreement Bob Graham is a US senatorfor the Caribbean Basin should respond to with Mexico that has the support of state ofFlorida. this challenge by asking what is in the American people.

2 Hemisphere * Fall 1990 Im

Yet some US economic sectors A New Era facts. What is happening across the as well as the CBI countries stand Atlantic is, of course, extremely im- to lose as a result of a free-trade The US is entering a new era portant. But so too is what is hap- agreement between Mexico and where its national security will be pening in the Americas. the US. Mexico already has two for- increasingly defined in economic This is not the time to walk midable built-in advantages over rather than military terms. Using away It is time, rather, to help the the Caribbean Basin: a large, this calculus, US economic inter- nascent democracies of the Amer- trained labor force and a devel- ests in Latin America overwhelm its icas to consolidate their new politi- oped cross-border transportation economic interests elsewhere in cal institutions and to strengthen system that provides easy access to the world. Further, as Europe their democratic gains through the US market. Moreover, allowing economic growth. Once and for unrestricted entry of duty-free Mex- all, the US must break its destruc- ican textiles and apparel into the tive habit of crisis-driven involve- US could wipe out CBI gains under ment in Latin America and the the so-called Super 807 program, Caribbean. How the US confronts which permits CBI quota-control- this regional challenge will have a led imports of garments made profound impact on the country's from 100% US cut and formed future. fabric. The US must play a leadership Caribbean Basin governments role. The country's success will rest need to decide whether to move largely on its ability to be a good beyond CBI by seeking a free-trade neighbor-to be attentive to the agreement with the US, either in economic changes sweeping the collaboration with Mexico or sepa- world and sensitive to the ramifica- rately. Only they can make this tions for not only the US but the decision. hemisphere as well. The region's countries are well The completion of a free-trade aware of the dangers posed by a moves toward economic integra- pact between the US and Canada US-Mexico pact. That is why Costa tion in 1992 and as economic coop- in 1989 was occasion for regional Rica, Panama, Jamaica, El Salva- eration grows between the Pacific applause. A similar agreement with dor, and Honduras are currently Rim economic giants, the US must Mexico will be hard-wrought and negotiating with the US the out- recognize that economic integra- perhaps controversial, but it will lines of possible free-trade agree- tion in this hemisphere is in the likely produce another round of ments. The five Central American interests of both the US and its hemispheric applause. In its quest presidents are expected to take up neighbors. to open a healthy trade relation- the issue when they meet in Decem- As revolutionary change sweeps ship with Mexico, the US must not ber 1990, and Caribbean countries across the USSR and Eastern Eu- torpedo economic gains by its are already discussing the feasibility rope, it is easy to lose sight of these Caribbean neighbors. u of a regional agreement with the US. In the meantime, however, the US should emphasize that it would welcome a decision in favor of free trade by the Caribbean Basin and would be prepared to negotiate the terms of such a pact. The US must also begin to view its relationship with the Caribbean Basin and Latin America in a broader context of mutual self-interest.

Hemisphere * Fall 1990 3 Commentary

Bush's Andean Initiative by Eduardo A. Gamarra

national Narcotics Matters, moved force the redistribution of funds February 1990 Cartagena along two concurrent fronts. First, promised to the Andean campaign. agreement, the Bush ad- the US exerted pressure on Bolivia, Many South Americans believe the ministration and the Colombia, and Peru to accept longer the Gulf Crisis, the greater governments of Bolivia, military aid as a step toward the will be the leeway for Bolivia, Colombia, and Peru deployment of their armed forces Colombia, and Peru to emphasize claimed a significant victory in the in zones of conflict. Second, the economic recovery and democratic "war on drugs." US officials noted Pentagon crafted an antidrug plan consolidation. Optimism about the that the Latin Americans had final- to engage the Department of De- waning of US interest in the Andes, ly accepted the administration's fense more directly in South Ameri- however, must be tempered by the proposals to escalate repressive can antidrug efforts. The so-called knowledge that current programs antidrug activities. In turn, the An- will not be stopped overnight. dean presidents noted that the US In the US, intra-government turf had finally acquiesced to their battles have also debilitated the An- demands for an "alternative devel- dean strategy. Agencies such as the opment policy" and increased eco- Drug Enforcement Administration nomic aid. The Andean presidents and Customs have been at logger- and President George Bush agreed heads disputing the leadership role that responsibility for combatting of specific antinarcotics activities. the "drug war" should be shared. As an innumerable number of They also agreed that policy distinc- agencies and departments enter tions should be made between con- the drug war, turf battles are likely sumer, trafficker, and producer to become more pronounced. nations. Until the Panama invasion of In short order the Bush admin- December 1989, the US military istration unveiled its Andean strat- had not been receptive to the idea egy to follow up on the promises it of entering the drug war; since made in Cartagena. Claiming that then, General Maxwell Thurman, drugs constituted the major secu- "Thurman Plan" envisioned that- the commander of the Southern rity threat to the US, the admin- strengthened by US-provided logis- Command, has become the key istration unveiled a $2.2 billion tics, training, and equipment-the force behind Pentagon antidrug economic aid package for Bolivia, armed forces of the three countries initiatives. Apart from Thurman, Colombia, and Peru. Nevertheless, would undertake coordinated at- however, the Pentagon has few en- the administration conditioned tacks against cartel targets. Penta- thusiasts for military involvement economic aid on the acceptance of gon reports suggested that if Bush in the Andes. In private, Pentagon military aid by the three countries. gave the order, US special forces officials concede that, if Thurman In a classic example of foreign would be sent to pursue Colom- (who is reported to be seriously ill) policy based on public opinion bian drug lords. were to step down, plans for US polls, the Bush administration military involvement would be aimed to score a quick Panama- Obstacles scrapped. style victory over South American The US Congress is another drug lords. US strategy toward the Since the Cartagena summit, in- likely source of opposition to the Andes, which was engineered prin- ternational factors as well as domes- Andean strategy. A few members of cipally by the Pentagon and the tic conditions in the US and the Congress, such as Peter H. Kosta- State Department's Office of Inter- Andes have threatened to unravel mayer (D-PA), have called for Bush's Andean initiative. Interna- scrapping the military component tionally the cost of deploying and of the strategy. Even some hardline EduardoA. Gamarrais an associate maintaining (perhaps indefinitely) advocates of the drug war, like editor of Hemisphere. US troops in the Persian Gulf may Lawrence J. Smith (D-FL), have

4 Hemisphere Fall 1990 expressed reservations about the tries did not work; its own justice Bolivian government that eco- Andean initiative. system, however, was lenient in its nomic aid will be disbursed only if In the Andean region, opposi- treatment of prominent US citi- the military enters the drug war tion to US antidrug plans emanates zens who violate antidrug laws. In Gelbard has also headed efforts to from governments and grassroots an ironic twist, Colombian presi- delay the signing of trade and in- movements. Such opposition re- dent Gaviria accused the US of vestment agreements as a way of volves around the view that the US lacking the will to fight drug traf- pressuring the Bolivian govern- has done little to support the non- ficking. ment into signing an extradition military options discussed at Similar situations have devel- agreement. Faced with a no-win Cartagena. oped in Bolivia and Peru. In May situation, Paz Zamora's govern- C&sar Gaviria, Colombia's new 1990 Bolivian presidentJaime Paz ment appears to be engaging in a president, pledged to continue Vir- Zamora, after vainly resisting pres- bit of double talk: he will comply gilio Barco's antidrug policy. None- sures from the US State Depart- with US requirements but will theless, he has consistently argued ment, signed Annex III to a 1987 simultaneously attempt to convince that because the drug problem is US-Bolivia antidrug agreement. Bolivians that his government is an issue of law enforcement and A few weeks later he ordered the not giving in to the Americans. not of national security, Colombia Bolivian armed forces into the Most disconcerting to the US will no longer shoulder the human Chapare Valley in return for has been the ambivalence of Peru- costs of the drug war Moreover, $33.2 million in US military aid vian president Alberto Fujimori on September 3, 1990, Gaviria an- and promises that economic aid about the military aid agreements nounced plans to forgo extradition would be disbursed. Even as Paz signed by his predecessor, Alan and cut prison sentences for drug Zamora denied the "militarization" Garcia. On September 12, Fujimori dealers who cooperate with authori- of the drug war, he ordered two announced his government would ties and help prosecute other traf- regiments to initiate antidrug oper- not sign a $36-million military aid fickers. ations. A large antimilitarization package because it would commit The so-called "extraditables" effort had already been mounted Peru to an emphasis on repression had announced in July that they by opposition political parties, rather than economic develop- would unilaterally cease their wave labor, and campesino groups who ment. The Fujimori government of violence if the Colombian gov- feared the consequences of such a believes it must first address the is- ernment promised to review its policy. sues of economic collapse, the extradition policy. Drug-related For example, in July and August Sendero Luminoso and Tupac Amaru violence has plagued Colombia for campesino unions carried out road rebellions, and a generally hostile at least six years; however, since the blockades and strikes, announced political climate, before embarking September 1989 murder of Luis the establishment of armed cam- on a controversial military build-up Carlos Galin and the launching of pesino defense committees, and that could eventually undermine a government offensive to capture called on campesinos in general to formal civilian rule. the drug lords, violence had in- dodge compulsory military service. creased to overwhelming levels. In August, after signing an agree- New Exports Gaviria's modified strategy has re- ment with the campesino unions not sulted in a significant decrease in to militarize its antidrug efforts, The US would do well to listen to violence. Consequently many Co- the government announced it Colombian president Gaviria's calls lombians believe that a strategy of would not order troops into the for "more trade and less aid." The increasing repression and militari- Chapare where confrontation with announcement of Bush's Enter- zation of the antidrug offensive peasants was inevtable. Instead it prise for the Americas Initiative may be less successful than peace- would use US military aid to deploy and that Andean economies would ful alternatives. army units to monitor and prevent be given preferential treatment un- Another reason for shifting ecological damage caused by coca- der the General System of Prefer- Andean attitudes was the trial of paste processing in the Bolivian ences has raised expectations in Mayor Marion Barry of Washing- jungles. Bolivia, Colombia, and Peru. It ton, DC, who once advocated send- Official Bolivian claims that the would be a shame to discover that ing US troops to the Andes to end solution to the drug war requires both initiatives were subordinated the flow of drugs. Barry's convic- more than guns, radars, and heli- to the war on drugs. tion on lesser charges sent a mixed copters has enraged many in the Washington must open the US message to the Andeans. The US US International Narcotics Matters market to Andean products. was prepared to capture, try, and Office, who believe the Bolivians Failure to do so will result in the convict Bolivian, Colombian, and have reneged on previous com- Andean region's continued de- Peruvian drug traffickers, claiming mitments. US ambassador Robert pendence on cocaine as its prin- the judicial systems in those coun- Gelbard has publicly reminded the cipal source of export revenue. *

Hemisphere. Fall 1990 5 Poisoning Ecuador's Oriente by Judith Kimerling and the Natural Resources Defense Council

Oryx (a subsidiary of Sun Oil), and per day and then decline to less Ecuador's Oriente-an British Gas are already negotiating than 8,000 per day when trans- Amazonian region of vast terms of production. ferred to Petroecuador Similarly tropical rain forests and a the facilities Petroecuador recently diverse indigenous popu- took over from Texaco are anti- lation-has yielded a quated, in bad repair, and severely wealth of oil export earnings to contaminated. No oil company has both the government and multina- complied with a new requirement tional firms. The damage inflicted by the Ministerio de Energiay Minas on the Oriente, however, has been that environmental impact state- massive. An estimated 1 million ments be submitted and approved hectares of rain forest have been before the initiation of exploration opened to colonization by incom- or production activities. Some com- ing settlers. Spills from the Trans- panies, such as Conoco, Petro- Ecuadoran Pipeline have dumped canada, and Occidental, have an estimated 16.8 million gallons made efforts to appear sensitive to of oil-compared to the 10.8 mil- environmental concerns, promis- lion-gallon Exxon disaster in Val- ing more stringent controls than dez, Alaska. To make matters those required by either Petro- worse, the Oriente's oil wells gen- ecuador or the newly created Sub- erate more than 4 million gallons Much of the area of proposed secretariode Medio Ambiente. These of toxic waste every day. Nearly half production overlaps the boun- promises, nonetheless, fall short of of Ecuador's oil reserves have been daries of Yasuni National Park, the minimum requirements in the extracted: at the current rate, the Cuyabeno Wildlife Reserve, and US and Canada. Oriente has only 15 years of oil left. Limoncocha Biological Reserve, as well as traditional indigenous Local Impact Ecuadoran Policy lands. All the more troubling are three other matters. First, the The petroleum industry damages Neither Petroecuador, the state oil World Bank is preparing a loan to the ecology of the Eduadoran company, nor the MinisteriodeEner- Ecuador of $100 million, which Amazon at every stage of develop- gia y Minas has the capacity or will would be substantially increased by ment-from seismic exploration to establish meaningful environ- anticipated co-financing, for ex- and exploratory drilling through mental regulation. Their weakness panded oil activities. Second, in production, transport, and refin- is particularly worrisome in view of the near future the government is ing. Furthermore, the industry the pressures on Ecuador to service expected to grant millions of hec- poses a grave threat to the physical its bloated foreign debt and the cur- tares of new concessions spanning and cultural survival of the region's rent oil exploration and develop- the entire Oriente. And third, con- indigenous peoples. Their tradi- ment initiatives by multinational tracts specify that the foreign tional economies, which depend firms. Petroecuador and nine multi- companies relinquish their local on forest products and small-scale national firms are exploring more production facilities to Petro- shifting agriculture, are being un- than 3 million hectares; Conoco, ecuador after a 20-year period, dercut by deforestation and con- thereby leading them to extract tamination. reserves as quickly as possible and For example, the oil-producing Judith Kimerling is an attorney with the to invest little in maintenance. areas of the northern Oriente are NaturalResources Defense Council Regarding the latter problem, home to the Quichua, Siona, Se- (NRDC), in New York City. She and Conoco, which is preparing to ex- coya, and Cofan peoples. Once a NRDC are the authors of "Amazon tract oil from the lands of the zone of pristine rain forest, the Crude:Findings and Recommenda- Huaorani Indians, predicts pro- northern Oriente is now the site tions" (1990). duction will peak at 50,000 barrels of an industrial corridor, several

6 Hemisphere * Fall 1990 R T S

boom towns, uncontrolled coloni- of new oil fields. In so doing it sampling to provide a reliable zation, extensive pollution, and should create a broad-based inde- accounting of the composition, severe poverty. The opening of an pendent commission, including quantity, and fate of all waste oil road has even spread these con- representatives of the indigenous streams and emissions, and to ditions into the Cuyabeno Wildlife peoples and colonists of the Ori- develop waste handling and other Reserve, which was previously set ente as well as nongovernment operational procedures to ensure aside for the Siona and Secoya experts. The purpose of the com- that production activities do not peoples and for the conservation mission would be the formulation threaten human health or the of its striking diversity of plant and and management of a plan to environment. animal life. The colonists of the mend the region's ecological and The international community northern Oriente, who migrate to sociocultural damage and to mini- should ease Ecuador's debt burden the Amazon region from impov- mize further destruction. so that the country can dedicate its erished coastal and mountain limited capital to the diversification areas, find rain forest soil is gen- of the economy, the improvement erally unsuitable for the cultivation of living standards, and the clean- of cash crops such as coffee, naran- up of oil-producing areas. A start- jilla, and cocoa. In addition they ing point is Ecuador's proposal to find the petroleum industry gener- commercial bank creditors to buy ates few employment opportunities. back a portion of its debt based on Tens of thousands of such secondary market prices and to re- colonists live in the shadows of oil strict service payments to amounts production facilities, where pollu- consistent with the goal of sus- tion worsens their plight. For one tained real growth. More compre- thing, it has killed the fish that hensive debt reduction packages used to serve as a major source of should include environmental protein, a key reason for estimated terms, developed in consultation malnutrition rates of 65-98%. Colo- with local nongovernmental or- nists claim pollution is also linked ganizations and representatives of to cancer, birth defects, and vari- local communities. The US govern- ous other skin, gastrointestinal, ment should do its part by reduc- and respiratory diseases. According ing its share of Ecuador's debt and to the World Bank, the zone's pub- by allowing the funding of environ- lic services in general are woefully Texaco-since the early 1970s, mental projects in lieu of interest inadequate. the dominant oil company in the payments. Oriente-should establish a $50- Finally, the US-the world's million fund for initial environ- largest consumer of oil and the A Sustainable Environment? mental cleanup and remediation largest importer of Ecuadoran oil- Ecuador's Oriente is clearly on a in the region. Such a fund, which should conserve oil at home. For in- course toward ecological and so- amounts to a minute fraction of stance, by the year 2010 the US ciocultural disaster Such disaster Texaco's two decades of profits in could save the equivalent of seven cannot be prevented unless the do- Ecuador, should be administered times the oil reserves of Ecuador by mestic and foreign groups respon- by another broad-based inde- implementing programs to insulate sible take decisive action now to pendent committee. buildings and replace furnaces and establish a sustainable environ- The oil companies in the Ori- water heaters. By the same year the ment. ente must revamp their operations US could save the equivalent of 13 The Ecuadoran government to prevent further contamination times the oil reserves of Ecuador by should declare an "environmental and to maximize the efficiency of boosting the fuel efficiency of cars emergency" in the Oriente and a already tapped reserves. They to 40 miles per gallon and light moratorium on the development should begin detailed chemical trucks to 30 miles per gallon. .

Hemisphere * Fall 1990 7 Reports: Criminal Justice

Letter to President Vinicio Cerezo by Philip Benjamin Heymann

democracy are a sham. Democracy of Guatemala and their ap- cannot coexist with unpursued, un- pointed cabinet members have punished terror now made clear that they have A law enforcement system can no intention of using their be simply a means of social control Sbelieveown influence, that the powers,elected andleaders of the less privileged members of resources to help the courts and a society or it can be a system of prosecutors deal with terrorist criminal justice. It may or may not violence against sizeable segments be desirable, on the whole, to im- of the population: students, labor prove the capacity of a developing leaders, human rights workers, nation to investigate and prosecute peasant leaders, political figures to crimes by its poorest and least the left of center, and others. I will powerful sectors. It only becomes explain in a moment my basis for something that can be recognized this conclusion, but first let me dis- as criminal justice, however, if that cuss why the conclusion requires us effort succeeds in treating violent to leave when much important acts by the wealthy and powerful as work remains to be done. subject to the law too. The effective Harvard Law School's Center application of the law to only some for CriminalJustice, like the archi- groups, particularly if they are the tects of the Administration ofJus- poor and powerless, is not an ob- tice program, see the effort to help jective worthy of international the judicial authorities deal with support. It is also ultimately self- violence as, above all, part of an ef- defeating; for any effective law en- fort to bring democracy to Guate- forcement requires local popular mala. But it is a peculiarly stunted support by witnesses and victims. democracy that will survive if many A single judge or even a judge leaders to the left of the ruling accompanied by a prosecutor can- Christian Democratic Party, and not be expected to investigate and even some of its distinguished punish crimes of political terrorism members, are in danger of assas- that, for all they know, may involve sination, and neither the Presi- military intelligence or elements of dent, nor the Minister of Defense, the police. The political and sub- nor the Minister of Government, stantive support of the elected nor the Attorney General has taken President, the Minister of Defense, actions showing any real determina- and the Minister of Government tion to bring this terror to a halt. (who is responsible for the police) Under current conditions there is necessary. Simply imagine the can be no democracy for the United States or Italy or Germany country-there can only be elec- trying to deal with a serious ter- tions among a small privileged rorist threat without using the club. Without free speech and a police and without the powerful right to organize for all non-violent commitment of elected leaders. sectors of the country, claims of This point was made with absolute clarity two years ago when an unusually dedicated and coura- Philip Benjamin Heymann is director geous Guatemalan police chief of the Centerfor CriminalJusticeat furnished the courts with evidence HarvardLaw School. implicating high-level officials in

8 Hemisphere * Fall 1990 the security forces, who were ac- cal figures. A dozen student leaders taken, and shows no inclination to cused "disappearing" students and and others associated with the take, the obvious steps that might others in an infamous "death van." University of San Carlos have been solve these crimes and rebut the The judge who was handling the "disappeared." The bodies of al- otherwise unmistakable conclusion case was kidnapped. At the same most half have now been found, that the government accepts terror time a close associate of his was bearing signs of torture. Trade against the non-violent left. brutally murdered. When the union leaders, particularly those The steps it might have taken judge was released, he in turn associated with the Coca-Cola are those that any democratic na- released all the arrested members union, have been tortured and tion would take. The highest levels of the Treasury Police. Despite in- killed. Human rights workers have of government should make ternational outcry, nothing was met the same fate. Political leaders credible announcements of their said or done by the President, the have been killed. By universal political resolve to fight the crimes, Minister of Defense, or the Minis- report nothing like this has hap- including reference to the right of ter of Government. The files of the pened in Guatemala since the very members of groups expressing radi- case have been kept secret ever dark days of the military repres- cal political views to live and speak since, notwithstanding demands sion. In the face of this, Guate- out. The intelligence branch of from members of the U.S. Con- mala's leaders have done nothing. the army, the most extensive and gress and promises by President Amnesty International reports trained information-gathering Cerezo to provide the file. various reasons for believing that network in Guatemala, should be Not since that case have the army intelligence may have been in- ordered to make whatever informa- police, always led by military of- volved in many of these killings tion it has available to the courts. ficers who are often from army and disappearances. The evidence Special task forces of police and intelligence, undertaken an inves- it cites is equally consistent with the prosecutors, selected so that they tigation that might reveal the in- involvement of lower levels of the could be trusted to perform hon- volvement in political terror of the military or some police forces estly, should be created to devote police themselves or military intel- without high level consent. Such specialized effort and massive com- ligence. Indeed the likelihood of groups still elude the control of the mitments of time to these priority this happening has been reduced top brass, as recent coup attempts cases. substantially by the creation of by rogue officers attest. More The student kidnappings are new policing systems that include powerful individuals and private pattern crimes, likely having been the military police as integrated groups may be carrying out the committed by the same people participants in much of Guate- murders for their own political using more or less the same tech- mala's policing. And until recently agenda. niques. They require a number of the head of detectives, a crucial It does not matter which of people and substantial logistics. position for investigating terrorist these possibilities is true. A govern- Witnesses reported the crimes and attacks, has been a former member ment is responsible not only for were even able to report license of army intelligence (as was the what it orders or assists but also plate numbers on cars. present Chief of Police) Nor have for its tolerance of violent crime The crimes could be solved. the security forces shown any great against others by favored or feared The first and most obvious steps willingness to investigate what may groups. It seems clear to us that the to solve them have not been taken. be privately sponsored terrorism current government of Guatemala There are lingering suspicions of from the right, although these ele- is prepared to tolerate the familiar, the involvement of military intel- ments may also be dangerous to terrible forms of violent repres- ligence. The government of Guate- the leaders of Guatemala's govern- sion-disappearances, torture, mala has revealed its hand. Its ment, as three recent coup at- and death-carried out by private conception of reform in the crimi- tempts suggest. groups or dissident security forces nal justice system does not include Guatemala's leaders have, in the or, perhaps, by the highest levels of making terrorist violence of the last two months, revealed with pain- army intelligence. The United sort that has occurred in the last ful clarity their unwillingness to States and other Western nations several months subject to the laws commit their political support or have provided millions and mil- of Guatemala and effective inves- their police resources, the two es- lions of dollars to improve the tigation and prosecution in the sential ingredients of an anti-ter- administration ofjustice in Guate- courts of Guatemala. rorist effort anywhere in the mala in the last three years. The Under the circumstances we world-to dealing with a recent, Guatemalan government could believe those interested in im- frightening burst of terrorist now count on a significant number provements in the criminal justice violence, very largely against stu- of trained prosecutors, judges, and systems of developing countries dents, labor leaders, human rights police investigators if it wanted to can better use their efforts else- workers, peasant leaders, and politi- punish the terror But it has not where. *

Hemisphere * Fall 1990 9 Reports: Trade and Development

Bush's Enterprising Initiative by Richard E. Feinberg

Enterprise for the Ameri- LatinAmerican Debt Serc to te S cas Initiative, unveiled on June 27, 1990, contains a series of major proposals for trade liberalization and debt reduction. By opening markets, reducing debt service, and promoting environmental conservation, the Bush initiative could help to reinvigorate the region's economy. Its impact, however, will depend on Latin America's capacity to respond affirmatively and on the way the initiative's proposals are implemented. No set of measures to stimulate hemispheric trade and development would be credible unless it promised to substantially reduce the Latin American and Caribbean debt burden, whose weight is lower- ing the region's living standards, impeding its efforts at economic reform, and constricting its import capacity-to the disadvantage of US exporters. The Bush initiative addresses this fundamental problem by building upon the 1988 In numerous cases actual cash flow Debt Reduction debt-reduction plan of US treasury would not be significantly altered, secretary Nicholas Brady. It ex- thereby minimizing the reduction Latin America and the Carib- tends the principle of debt reduc- of US government revenues. None- bean owe US government agencies tion from bilateral debts owed by theless, the cleansing of the books $12 billion. Almost 80% of this low-income countries to bilateral and the regularizing of financial total is owed to the US Agency for debts owed by middle-income coun- transactions would be welcomed by International Development and tries-the category that subsumes debtors and creditors alike. the US Eximbank, the remainder most of Latin America and the How would the initiative reduce being divided between Food for Caribbean. the debt and debt service of Latin Peace and the Commodity Credit The initiative would make de America and the Caribbean? The Corporation. Under current terms, jure what has become de facto: the answer hinges on the program's im- debt service on these claims will nonpayment of many official debts. plementation. The critical variables equal $4.7 billion in 1991-94, or are as follows: $1.2 billion a year * The amount of debt eligible for The Bush administration has RichardE. Feinberg is executive vice reduction and the size of the dis- not provided estimates of the size president of the Overseas Development count. of the discounts that would be ap- Council, in Washington, DC. He is the * The degree of participation of plied to debts. Estimates by the authorof The Intemperate Zone: other bilateral donors. Overseas Development Council The Third World Challenge to US * The terms of debtor-country (ODC) suggest that Latin America Foreign Policy (W. W. Norton, 1983). eligibility. and the Caribbean could save

10 Hemisphere * Fall 1990 $1.6 billion in 1991-94, or $400 mil- this proposal is a reversal of US up arrears. Whether this addition lion a year Savings of more than policy depends on the unspecified restricts eligibility is contingent on $50 million for the entire period meaning of "appropriate." A path- the content of the proposed re- would accrue to a number of coun- breaking aspect of the Brady plan forms. But is such a requirement tries: Argentina, Brazil, Chile, Co- was that it severed the link between necessary? As it stands now, the lombia, Mexico, Peru, Costa Rica, the actions of official agencies and IMF and World Bank reform pro- the Dominican Republic, and the signing of agreements between grams already contain the essential Jamaica. a debtor country and its commer- measures a debtor government cial creditors. This link had placed must take to create a favorable in- commercial banks in the enviable vestment climate. Other Donors position of being able to block offi- Imposing a set of extra con- Detailed information on Latin cial programs and loans, thus aug- siderations would merely delay American and Caribbean debts menting their bargaining power at debt reduction-and hence delay a to bilateral donors other than the the expense of the flexibility of offi- catalyst to investment-as well as ir- US is not available. Yet ODC es- cial agencies. The Bush initiative ritate Latin American and Carib- timates indicate that extending should not be held hostage to the bean leaders. As such it could cost the initiative to other bilateral bargaining strategies of commer- the US government the good will donors would yield an annual cial banks. that the Bush initiative has gener- debt-service savings of between The second addition is that the ated throughout the hemisphere. $1.6 and $2.3 billion. debtor country must "have put in But while it was appropriate for the Customarily, bilateral debts are place major investment reforms in US to take the lead in advocating renegotiated under the aegis of the conjunction with an IDB [Inter- additional debt reduction meas- Paris Club, the donors' cartel for American Development Bank] ures, the Paris Club should require the renegotiation of government- loan or otherwise be implementing the participation of all industrial to-government loans. This arrange- an open investment regime." This nations. Our allies should shoulder ment assures equal treatment of all addition might do more than delay their fair burden of reducing old bilateral donors; otherwise, con- putting the Bush program into ac- debts-since they also stand to cessions granted by one creditor tion; during the interim it could benefit from a more prosperous would make it easier for a debtor also tempt debtor countries to run Latin America. * to service the claims of competing creditors. It would be an unfor- tunate break with tradition if the US were to forgive bilateral debts without other donor countries doing so as well. The debt-reducing impact of the Bush proposals will be greatest if they assume multi- lateral form within the Paris Club Mexican Academic ClearingHouse framework. (MACH) Eligible Countries Materiales Acadimicos de Consulta Debt reduction is typically granted Clearing House (MACH) only when a debtor country ad- Hispanoamericana/Mexican Academic heres to a program of economic has been exporting library materials worldwide since 1969. reform monitored by the Inter- national Monetary Fund (IMF), * MACH sells single and multiple copies of Mexican books the World Bank, or both. The and serials, including government publications. Bush administration, however, is * MACH handles selective blanket order services for proposing to add two more condi- academic libraries. tions, a stance that could seriously delay implementation of the ini- * MACH gives free referral service and periodical book tiative. lists. The first addition would require that, "if appropriate," a debtor Write for further information to MACH, Apartado Postal 13-319, Delegaci6n Benito Juarez, 03500, Mexico, D.F Telephone numbers (915) 674-0567 and must "have agreed with its country (915) 674-0779. commercial lenders on a satisfac- tory financing program." Whether

Hemisphere * Fall 1990 11 Reports: Trade and Development

Cultivating Exports by Charles Thurston

rights to the Concha y Toro label Chilean wines are generally priced companies took a chance in 1988. US imports of the line of in the $3 to $10 range in retail on Chile's wine industry 13 wines nearly doubled from stores. in the 1980s. They found 125,000 cases in 1988 to 300,000 the choice was a good rench, Spanish, and US cases in 1989 (and to an estimated one, but not for Dollar Value F the 500,000 cases in 1990), according Big reason that many of them planted to Carm Tintle, a marketer for "A dollar is a dollar in South money there originally. Banfi. Exports by Concha y Toro America and it has tremendous Investors put their money into now represent more than half of value there," comments Juan Chile and other South American all Chilean wine exports to the US, Larraguibel, president of Los countries with the hope the domes- he says. Andes Importers in Ardsley, New tic market for fine wines would York. Labor costs in Chile are take only off dramatically. That hasn't 15-20% of US rates, which allows happened. What has sharpened wines from the fertile Maipo Valley significantly is the US taste for to compete readily with Californian South American wines, especially products. from Chile. Exports have grown But a competitive product does markedly. not necessarily command market According to figures from the share in a mature-and slowly National Association of Beverage shrinking-US market. After sev- Importers (NABI)-based on US eral difficult years of marketing Customs data-table wine imports Chilean wines, Larraguibel says he from Chile have risen 86%: up has found strong US market accep- from 750,000 gallons in 1988 to tance in 1990 for Chilean Cabernet 1.39 million gallons in 1989. That Sauvignon, Chardonnay, and other rise was the fastest among US for- noble varieties under the Casa de eign suppliers active in the market Lara label, which he imports ex- in both years, NABI indicates. clusively. Sales accelerated further in Part of the reason for the cur- 1990. During the first six months, rent success of Chilean wines is the Chilean exports nearly doubled to heritage of the product. Chilean 1 million gallons compared with wines show a strong French in- 560,000 during the same period in fluence, with much of the root 1989, says NABI president Robert stock grown on vines brought from Maxwell. Chile is now the fourth- France before the great phylloxera largest supplier of wine to the US, One crucial element of the plague that wiped out much of following Italy, France, and Ger- global wine market dynamic that Europe's vineyards in the late many, and has displaced other tra- has aided Chilean wines in the US 18 7 0s. ditional large-volume European is exchange rate. While European Because of its quality, Chilean suppliers like Portugal and Spain. exporters have been forced to ab- wine is being marketed to compete One US company that is partic- sorb translation losses resulting with high-quality California wines. ularly pleased with the US demand from the relative decline of the dpl- Capitalizing on the appeal of the for Chilean wines is Banfi Vintners lar there, profit margins for South two regions, Banfi, for example, in Old Brookville, New York, which American exporters, for whom cur- has blended the exotic Chilean acquired exclusive distribution rencies are tied to the dollar, have image with the sure-selling Califor- been safer nia label, marketing a line under "One of the great factors of the stylized Walnut Crest label for Charles Thurston is a senior correspon- (Chilean) success is that prices are Bodegas y Vinedos Santa Emiliana, dentfor theJournalof Commerce. pegged to the dollar," Tintle says. a Concha y Toro affiliate.

12 Hemisphere * Fall 1990 Cautioning that volume gains Chilean wine is a substitute for have more to do with the success of do not necessarily mean lower European archetypes." Chile's product than Laird will quality wine, John Laird, executive "One should not damn the admit. As an importer of Argen- vice president of sales for New York- achievement that Chile is now the tinean wines, Larraguibel notes based Seagram Chateau & Estate fourth-largest wine supplier (to the commercial US customers often Wines Co., says the current surge US)," says Laird. "I don't think that double up when purchasing South in US consumption of Chilean anyone is buying wine because it's American imports so that they have wines "is not the same as the Aus- Chilean. Chilean wine happens to a broad regional offering. m tralian boom (and bust) of a few be (selling for) a very good price years ago, when the wine offered and the taste appeals to a quality- displayed a big robust kind of style, conscious wine drinker " Editor'sNote: Adaptedfrom theJour- more so than Californian wine. But the source of the wine may nal of Commerce, September 5, 1990.

Feeding the Crisis The Heritage U.S. Food Aid and Farm Policy of the in Central America Conquistadors

Rachel Garst and Tom Barry Ruling Classes in Central Garst and Barry assert that U.S. food America from shipments and assistance in agricul- Conquest to the Sandinistas tural development are hurting rather Samuel Z. Stone than helping the social and economic Foreword by Richard E. Greenleaf crisis in Central America. They reveal

lava Maung/Impact Visuals the negative effects of U.S. food policy "Trenchant observations on why in Central America and make recom- domestic policies have succeeded or mendations for changes in the way failed in each country are coupled food aid is administered. Available in with explanations of their foreign December. $30.00 cl, $12.95 pa policies. Stone's views on North American and European responses to Nebraska Central American conflicts are Available at bookstores or fromn interesting reading." - Richard E. The University of Nebraska Press Greenleaf, Director of Latin American 901 N 17 Lincoln 68588*0520 Studies, Tulane University $35.00

Hemisphere * Fall 1990 13 Insider briefs on people and institutions shaping Latin American and Caribbean affairs

Rights Across the Border Watch Out after documents will be available to researchers through video Mexico's foreign ministry has The Persian Gulf Crisis will have terminals housed in the Casa de urged its US-based consuls to major repercussions for Latin Lonja, a 16th-century building that promote the rights of the 20 mil- America's 1990 trade balance. originally served as a trading center lion Mexicans who live north of the Every increase of $1 in the price in Sevilla. border The ministry's Direcci6n of a barrel of petroleum represents Generalpara Atenci6n de Ciudadanos additional export income of about Mexicanos en el Extranjero has $1.3 billion per year and an in- presented new guidelines on the crease of nearly $500 million in matter to Mexico's 50 US-based import costs for Latin America in ItWas Inevitable consuls. Recognizing the impor- general. ECLAC (CEPAL News, tance of the financial contributions Vol. X, No. 9) projects an upturn The Washington-based Inter- of Mexicans employed in the US, in the value of the region's exports American Quincentennial Fund the ministry warns that if this by as much as $3 billion in 1990, may be the first to promote "hand- group is not "recuperated," it will bringing the trade surplus on some t-shirts" commemorating the become fully incorporated into goods to some $26 billion. 500th anniversary of the encounter the fabric of US society. "Meji- of two worlds. Given the "hype" america is for us the most im- that has already developed around portant nation with which we have the festivities, we can expect a dizzy- to improve our relations." ing array of trinkets, mugs, pen- Quick Quiz nants, pendants, posters, flags, Mexico's leading export to the book bags, specially minted coins, US is oil-in 1989 nearly $4 billion limited edition plates, and maybe worth. But what is the leading US even Chris Columbus look-alike Don't Look at Me export to Mexico? In 1989 US dolls. Fund shirts are colorful and thoughtful, but don't under- Colombians will finally have the op- exports of motor vehicle parts and accessories jumped from al- estimate the depth of tastelessness portunity to rectify many of their to which some merchandisers may constitution's long-standing most $300 million to more than $900 million. According to the sink as the October 1992 event problems. Following the election nears. of delegates to a constitutional as- Washington Report on Latin America sembly in December 1990, they will & the Caribbean (October 1990), meet between February 5 and July "the quantity of US exports in [this 4, 1991, to develop a series of sector] is expected to continue to grow as a result of several [liberaliz- amendments to the 1889 docu- Thumb's Up on Folk Music ment. Why the changes? A Reuter's ing] rules Mexico has put in place story (October 22, 1990) reports this year " A Christian Science Monitor (No- that Colombia's institutional vember 1, 1990) review of Los mechanisms are widely regarded as Folkloristasgives high marks to the antiquated and responsible for the Mexico-based group of musician- country's corruption and violence Where Were You When singers. The article states that its as well as other problems. The judi- I Needed You? Latin American folk music "is as cial system, in particular, is tar- varied as rain forest fauna" and geted for large-scale reform. Spain's Ministry of Culture, IBM- that "affection gleams through Spain, and the Ram6n Areces Foun- each song." With some 20 albums dation are computerizing 9 million to its credit, the group periodically pages of the General Archive of the performs concerts in the US. Its Indies in Spain. When completed next US tours will be in February Edited by Mark B. Rosenberg in 1992, 40% of the most sought- and April 1991

14 Hemisphere * Fall 1990 F I L E

Consenting Partners Latin American Studies at the Uni- education in the Caribbean. Con- versity of Texas. One of Cleaves's tact the ACP Group at Avenue Canada is abandoning its tradi- first acts as director was to coor- Georges Henri, 451, 1200 Brussels, tional stance of low-profile rela- dinate a meeting between Mexican tions with Latin America Belgium. and the president Carlos Salinas de Gortari Caribbean. On the heels of its 1988 and UT officials, which was held in free-trade agreement with the US, Mexico in October 1990. New col- Canada joined the OAS. Now it is laborative efforts were identified participating in discussions with and agreed upon, including the On the Move Mexico and the US to prepare for visit of senior Mexican government Muni Figueres, formerly Costa negotiations on a North American officials to UT's campus in April Rica's minister of foreign trade bloc. To monitor and pro- trade, 1991 to participate in a conference has been named chief of the Inte- mote regional trade, the Canada- on education. gration and Trade Development Latin America Forum has been Division in the Inter-American De- organized in Canada under the aus- velopment Bank's Economic and pices of the North-South Institute. Social Development Department. According to a Forum document Well-Endowed (September 28, 1990), "there is Henry Gil, outgoing deputy perma- growing public interest in the Mexican secretary of eduction nent secretary of the Latin Ameri- North American menage a trois." Manuel Bartlett and US deputy secretary of state Lawrence can Economic System, has been Eagleburger signed an agree- invited by the OAS to participate in ment on November 27, 1990, to the commission to examine the establish the US-Mexico Commis- future role of the Inter-American Worth Reading sion for Education and Cultural System and to prepare a report for Exchange. The commission will the June 1991 OAS General As- The 1980 Mariel boat lift brought support postgraduate university ex- sembly, to be held in Santiago, 120,000 new residents from Cuba changes and research projects in Chile. to the US, some of whom are now the arts, humanities, and social and being deported back to Cuba be- natural sciences. Funding in 1991 Alma Guillermoprieto, a frequent cause of their hard-core criminal will be $3 million, making it the writer for the New Yorker, has been records. An inside account of the largest nonprofit organization pro- named the 1990 Maria Moors trials and travails of a "Marielito" moting educational and cultural Cabot Prize winner by Colombia can be found in Christine Bell's exchange between the US and University. The prize is awarded to The Perez Family (W W Norton, Mexico. those who advance sympathetic un- 1990) The Miami-based story re- derstanding and freedom of the lates the difficulties and adventures press among the peoples of the encountered by Juan Rauil Perez, a Western Hemisphere. former political prisoner in Fidel For Your Information Castro's jails. Anthropologist Larissa A. Lomnitz The Courier:Africa-Caribbean Pacific- and political scientist Fernando European Community is an infor- L6pez Camarra, both from the mative bimonthly magazine of the UniversidadNacional Aut6noma de Fast Start General Secretariat of the ACP Mexico, were named co-winners of Group of States of the European Mexico's 1990 Premio Universidad Peter Cleaves, a former Ford Foun- Community. The September- NacionaL The award recognizes dis- dation representative in Mexico, October 1990 issue carries a superb tinguished careers of social science left the scholarly world for the set of articles on Barbados's eco- research. Lomnitz is a member of private sector in 1982. Now he's nomic and trade environment as Hemisphere's editorial advisory back as director of the Institute of well as the prospects for higher board.

Hemisphere . Fall 1990 15 Disarming Politics

by Luis P Salas

twist of irony, the US invaded Pana- armed resistance and popular ber 1989 US invasion, Panama- ma not only to oust Noriega but to revenge against the PDF and its nian politics revolves around a dissolve the Panamanian military supporters. core issue: the transformation into a civilian police force. The challenge confronted by of the country's military into a President Guillermo Endara was n the aftermath of the Decem- civilian police force. What be- What Now? that of asserting control over the gan as a small police force in the nation's territory as quickly as pos- early 1900s, after Panama sepa- Curiously the blueprint for the US sible while simultaneously assum- rated from Colombia, evolved by invasion did not plan beyond the ing an antimilitary stance. Given the 1950s and '60s into the Pana- elimination of the PDF and the cap- the anarchy in the streets and the ma Defense Forces (PDF), the ture of Noriega. In their haste to desire to reduce the visibility of US country's dominant political insti- launch the military action, the in- troops, Endara gave highest prior- tution. Given the local power of a vasion managers overlooked an ear- ity to the establishment of a Pan- white oligarchy, this evolution pro- lier design that called for reservist amanian security apparatus. One vided a channel of upward political US military police to patrol Pana- option was to abolish the PDF and economic mobility for the non- ma's streets. Furthermore the plan- machinery and constrict a new white masses. It occurred, more- ners did not assume that a civilian force through civilian recruits. over, under the aegis of the US government would be installed im- Another was to erect a new force government, which flexed its mediately. The collapse of the PDF upon the PDF's foundations-that muscles in the context of power and the absence of US military pa- is, to convert the military into a vacuums in Panama and Washing- trols permitted mobs to ransack civilian police force. The Endara ton's interests in controlling the government offices and private government chose the latter and Canal and containing communism businesses for several days. The Washington acceded. in Central America. Yet US policy sight of looting in the presence of Several reasons informed the backfired in the 1980s when Wash- US troops has not been forgotten choice. To begin with, the rebuild- ington winked at the corruption by Panamanians, who blame Wash- ing of a police force from scratch and ignored the repression of the ington for the widespread damages. would have required a massive in- Noriega regime (1982-89) in ex- Having accomplished its mili- vestment in training. Further, it change for Panamanian support of tary objectives, the US turned to was politically urgent that US the US anti-Sandinista policy. In a the formidable task of assisting in troops be removed from the the development and consolida- streets. Many officials were con- tion of a civilian government. The cerned with the threat posed by Luis P Salas, a Hemisphere con- new Panamanian government--a the dispersal of 16,000 armed and tributingeditor, is director ofFlorida fragile alliance of parties united by trained men from the defeated IntenationalUniversity's Centerfor the the goal of ousting Noriega- army. A few senior Panamanian of- Administration ofJustice. He is the sought to coalesce its power and ficials believed that most of the author ofAdministraci6n deJusticia establish its legitimacy as foreign PDF's members had not been as- en Costa Rica (SanJosi:EDUCA, troops patrolled its streets. In addi- sociated with Noriega's corruption 1988). tion it faced the possibility of and human rights abuses.

16 Hemisphere Fall 1990 S

In charge of implementing the military" (Journalof World Affairs, actions, power remains concen- strategy was Vice President Ricardo 1990, p. 9) Meanwhile specialists trated in a national police force. Arias Calder6n, the minister of in the US military have concluded Another problem is suspicion government and justice. Arias that, under any arrangement, of Arias himself. Members of the encouraged PDF soldiers, includ- the Canal would be defenseless Public Force owe their organiza- ing those senior officers deemed against sabotage or missiles. And, tional survival to him; in defending relatively untainted by association as acknowledged in Panama and them he risked his political future. with Noriega, to join the newly the US, Washington possesses The loyalty Arias may command created "Public Force." Arias treaty rights to intervene in within the Public Force is feared by presided over the dissolution of defense of the Canal. Thus Pana- many Panamanians. For one thing, some PDF units and the transfer of manian critics, such as I. Roberto he is the potential beneficiary of others, such as the presidential Eisenmann Jr., editor of the news- the votes the Public Force mem- guard and a health-services bat- paper La Prensa,argue that there is bers and their families can cast in talion, to appropriate ministries. no justification for granting the future elections. For another, con- The bulk of the PDF was assigned Public Force a military role. trol over the armed forces has al- to Arias's Ministry of Government ways been the key to nolitical i ower in Panama. To be sure, the Endara govern- ient has demonstrated its commit- . ... police force's gradual an. In October 1990 the Public Force, Colonel rrera Hassan, was re- command. Hassan's nother colonel, lasted ays after publicly criti- ti-Public Force news- r After several civilians Hemisphere n the job, Endara ap- ahim Asvat, an attor- as confidant as the e's interim head. Short- r, Arias fired 142 of- assignment of a civilian A MAGAZINE OF LATIN AMERICAN AND CARIBBEAN AFFAIR S and the dismissal of so rs without major institu- Provoking debate on the region'sproblems, initiatives and cussions augur well for achievements rol. less, in October 1990 Providingan intellectualbridge between the concerned publics government uncovered of North America, Latin America and the Caribbean. dly led by Herrera's old back the troops in coraing to U oUserver rUCnaru ment renectea in opinion pons ,.iiimqu, province while public Millett, the Washington-sponsored and in town meetings conducted demonstrations were taking place. fusion of police and military func- by the National Assembly, few of The motive, it seems, was to com- tions in several Caribbean Basin those who possess such training are pel the government to negotiate governments "not only failed to willing to become involved. In this with former PDF members. Al- clean up the police, but it contrib- setting, many argue that, despite though this may have been an uted significantly to corrupting the Noriega's downfall and Arias's isolated event, it presents the pos-

Hemisphere * Fall 1990 17 Disarming Politics by Luis P Salas

Luis P Salas, a Hemisphere con- new Panamanian government--a the dispersal of 16,000 armed and tributingeditor, is director ofFlorida fragile alliance of parties united by trained men from the defeated IntenationalUniversity 's Centerfor the the goal of ousting Noriega- army. A few senior Panamanian of- Administration ofJustice. He is the sought to coalesce its power and ficials believed that most of the authorofAdministraci6n de Justicia establish its legitimacy as foreign PDF's members had not been as- en Costa Rica (Sanfosi: EDUCA, troops patrolled its streets. In addi- sociated with Noriega's corruption 1988). tion it faced the possibility of and human rights abuses.

16 Hemisphere * Fall 1990 S

In charge of implementing the military" (Journalof World Affairs, actions, power remains concen- strategy was Vice President Ricardo 1990, p. 9) Meanwhile specialists trated in a national police force. Arias Calder6n, the minister of in the US military have concluded Another problem is suspicion government and justice. Arias that, under any arrangement, of Arias himself. Members of the encouraged PDF soldiers, includ- the Canal would be defenseless Public Force owe their organiza- ing those senior officers deemed against sabotage or missiles. And, tional survival to him; in defending relatively untainted by association as acknowledged in Panama and them he risked his political future. with Noriega, to join the newly the US, Washington possesses The loyalty Arias may command created "Public Force." Arias treaty rights to intervene in within the Public Force is feared by presided over the dissolution of defense of the Canal. Thus Pana- many Panamanians. For one thing, some PDF units and the transfer of manian critics, such as I. Roberto he is the potential beneficiary of others, such as the presidential Eisenmann Jr., editor of the news- the votes the Public Force mem- guard and a health-services bat- paper La Prensa, argue that there is bers and their families can cast in talion, to appropriate ministries. no justification for granting the future elections. For another, con- The bulk of the PDF was assigned Public Force a military role. trol over the armed forces has al- to Arias's Ministry of Government ways been the key to political and Justice, which now administers power in Panama. most of the PDF's former respon- To be sure, the Endara govern- sibilities (e.g., immigration, police, ment has demonstrated its commit- corrections, fire, air force, and ment to the police force's gradual navy) The size of the Public Force civilianization. In October 1990 the is about 13,000 members, com- head of the Public Force, Colonel pared to the PDF's 16,000 mem- Eduardo Herrera Hassan, was re- bers under Noriega. lieved of his command. Hassan's Arias has repeatedly affirmed successor, another colonel, lasted that Panama now has a police only a few days after publicly criti- force-not an army. Nevertheless, cizing an anti-Public Force news- as the sole defender of national paper editor After several civilians security, the Public Force has a turned down the job, Endara ap- clear military mission. In justifying pointed Ebrahim Asvat, an attor- this mission, Arias claimed that ney and Arias confidant, as the drug traffickers linked to Noriega Public Force's interim head. Short- and remnants of the latter's ly thereafter, Arias fired 142 of- paramilitary "dignity battalions" ficers. The assignment of a civilian presented a threat to Panama's to the post and the dismissal of so security. As further justification, many officers without major institu- Arias mentioned Panama's treaty Obstacles tional repercussions augur well for responsibility for defense of the A major problem in building the civilian control. Canal. Public Force is that few civilians Nevertheless, in October 1990 These justifications have been have been trained in issues of the Endara government uncovered challenged by foreign analysts as public security. Moreover, given a plot allegedly led by Herrera's well as the Panamanian press. Ac- the widespread antimilitary senti- brother to hold back the troops in cording to US observer Richard ment reflected in opinion polls Chirriqui province while public Millett, the Washington-sponsored and in town meetings conducted demonstrations were taking place. fusion of police and military func- by the National Assembly, few of The motive, it seems, was to com- tions in several Caribbean Basin those who possess such training are pel the government to negotiate governments "not only failed to willing to become involved. In this with former PDF members. Al- clean up the police, but it contrib- setting, many argue that, despite though this may have been an uted significantly to corrupting the Noriega's downfall and Arias's isolated event, it presents the pos-

Hemisphere . Fall 1990 17 r

Features: Panama

sibility of further rumblings from many other Latin American mili- on the need for a Panamanian the old military establishment. In tary officers, the American training army and the threat posed by the so doing it reinforces the fears of was more successful in teaching guerrilla movement M-20. critics who want the Public Force him [Noriega] the technical skills purged of all PDF elements. of how to control the Panamanian population than in transmitting The Political Key democratic ideas and procedures" When the Public Force was first The US Role (Foreign BroadcastInformation Serv- placed on the streets, its members Following the December 1989 ice, February 21, 1990, p. 29) faced a hostile public: these were invasion, the US military was Pan- the same men who had abused ama's only source of aid. This assis- them for years. The Public Force's tance was to have ended with the members, on the other hand, were arrival of US civilian advisors. the demoralized remnants of a Delays in the availability of non- defeated army, serving under the military assistance funds, however, command of those who had been have meant that the US military their enemies and supervised by continues to supply commodities, the army that had defeated them. such as $500,000 in police cars, to These same tensions remain, com- the Public Force. pounded by a lagging economy By January 1990 US civilian ad- and rising crime rates. visors began to arrive. Among the It is unlikely that another first were advisors from the Drug military government will emerge Enforcement Agency who, besides in Panama in the near future. Still, preparing Washington's legal case as domestic conditions deteriorate, against Noriega, arranged for the the postinvasion honeymoon with dismantling of the PDF narcotics the Endara administration and the unit and assisted in the training of US is ending. Increasingly, then, new personnel. Another arriving Panamanians are calling for US contingent was the International reparations for invasion damage. Criminal Investigative Training As- Further, controversy over the Pub- sistance Program (ICITAP) of the lic Force is straining the ruling Department ofJustice. ICITAP's coalition, especially relations be- mission was to assist in the PDF's tween Vice President Guillermo restructuring into a civilian police Ford and Vice President Arias. force. To this end, ICITAP re- Washington may once again be as- ceived $1.2 million from the Ur- suming its role as mediator in Pana- gent Assistance for Democracy in Still another complication is manian politics-thereby exposing Panama Act of 1990, and has re- that the presence of the Southern itself to the hazards of decades past. quested $5.2 million for first-year Command (SOUTHCOM) in Pana- The key issue is not whether assistance to Panama. Congress ap- ma continues to send mixed sig- Panama has a military or a police, proved another $9.3 million, which nals to the country's armed forces. but whether armed force-under had been previously earmarked as Indeed, it remains difficult to dis- either guise-remains a basic fea- military assistance pipeline funds, tinguish whether US policy ema- ture of domestic politics. In a his- for the purchase of law enforce- nates from the US Embassy or torical context of US intervention, ment equipment. SOUTHCOM. For instance, the Panama's legacy of governance While the technical training appointment of Ambassador through armed force is a product value of these activities is undeni- Deane Hinton, a tough career of an underdeveloped economy able, it must be remembered that diplomat, was meant to bolster the and a highly stratified racial order the PDF had been one of the Carib- leadership authority of the Embas- This set of circumstances spawned bean Basin's most corrupt security sy in the eyes of the Panamanians the PDF-in no small part as an forces. It must also be remembered while diminishing that of the US avenue of upward political and that US assistance in the develop- military. Nonetheless, US military economic mobility for the non- ment and training of Panama's commanders maintain their ap- white majority. Unless local initia- security force was nothing new; petite for public statements on Pan- tive undertakes serious reform of after all, the US trained the PDF amanian political issues. Hence, the country's economic, class, and and Noriega himself. In light of the in a May 1990 speech to the Union racial structures, Panama's quest latter fact, journalist Frederick Club and the Rotary Club, retiring for democracy will once again yield Kemper commented: "As with so general Marc Cisneros commented to governance by armed force. *

18 Hemisphere *Fall 1990 Hope Restored by I. Roberto Eisenmann Jr.

May 1989 election supervised by its ministers are respected as hon- long and hard against more than 300 international ob- est and hard-working. The gov- the regime of General servers, had received a decisive ernment's budget is balanced, the Manuel Antonio Noriega popular mandate. Consequently Panama Canal Treaty is back on and for the establishment Panama's political system returned track, and business is again show- of democracy. Their to its tradition of democracy, toss- ing signs of vigor In the latter struggle was spontaneous, with no ing aside its historical parenthesis respect, the banking sector has crystallized leadership. Though in- of dictatorship. implemented major reforms, the itiated by the middle classes, it commercial sector is almost fully quickly generated support across recovered, the construction in- the class structure. Such support dustry is on the rebound, and a included the business class, which promising new stock market has instead of fleeing the country, as- opened. The most likely sector sumed an active role in the quest of major job creation is export- for democracy. What emerged assembly manufacturing. was Latin America's first clearly nonviolent political movement, which rendered Panama un- On the Agenda governable for Noriega and his There are, of course, many con- narco-military machine while in- cerns. To begin with, Panamanian ternationally isolating the regime politics must involve more than on a multi-ideological plane. In power-seeking and patronage, and world affairs, Noriega became a goverment officials must demon- pariah for the political left, center, strate the leadership necessary to and right. harness the country's obvious ener- gy. Instead of talking the govern- Noriega's Exit ment must act; and its actions should reflect the mandate of The question was not whether the May 1989 election results. the Noriega regime would survive. Di6genes de la Rosa, one of Pan- Rather it was how, when, and at ama's elder statesmen, called that what cost the downfall would oc- election "the Panamanian people's cur Noriega's repressive response Act of Clarity." The elected gov- not only escalated domestic opposi- ernment should strive for clarity, tion but provoked a US military in- avoiding the tangled web of old- vasion. The invasion was tragic in style politics and earning popular terms of lives and property. Never- faith in the new democratic in- theless, most Panamanians wel- stitutions. comed the US intervention as No less important is the creation having saved the country from a of a truly civilian police force. Opin- more prolonged struggle and an President Guillermo Endara's ion polls confirm that the vast even higher cost in lives. The US government is clearly legitimate, majority of the citizenry wants such invasion made possible the installa- and the new supreme court is clear- change and wants it now-before it tion of a government that, in the ly independent and formed by jus- is too late. The US invasion was tices of the highest integrity. The liberating, but it opened a gaping legislature is working effectively, wound in Panama's national including an active minority of psyche, whose bleeding could be- I. Roberto EisenmannJr. is editor of former Noriega operatives. The come more profuse with the pass- La Prensa, in Panama. cabinet may be elitist, but most of ing of time. The only medication

Hemisphere. Fall 1990 19 Features: Panama

that can truly stop the bleeding and heal the wound is Panama's PTm UR P RES demilitarization. Democratic leadership and demilitarization go hand in hand with a series of other necessary Edited and translated with changes. For one thing, the inade- additional selections by quacy of the justice system is caus- ing public frustration to reach Robert Edgar Conrad dangerous levels. A new penal code Based on the Spanish edition is in order and due process must by Sergio Ramfrez be guaranteed if national recon- For the first time in English, ciliation is to take place. A new here are the impassioned words constitution is yet another neces- of the Nicaraguan hero and sity. Such a document should be martyr Augusto C. Sandino, for produced by a constituent assem- whom the recent revolutionary bly-the simplest and most effec- regime was named. From 1927 Marines tive way to achieve participatory until 1933 American fought a bitter jungle war in democracy. Nicaragua, with Sandino as Finally, the problems of poverty their guerrilla foe. The docu- and unemployment should rank ments that make up this book among the government's highest constitute a spontaneous priorities. The new economic autobiography, a record not program announced by Vice Presi- only of Sandino's life but also of dent Guillermo Ford should be pro- a crucial and often overlooked moted vigorously. The message to aspect of the relationship labor and business should be clear- between Nicaragua and the United States. paternalistic protection and hand- outs are things of the past. Legisla- Paper: $17.95 ISBN 0-691-02319-0 Cloth: $55.00 ISBN 0-691-07848-3 tion that protects the employed should take second place to that which fosters new employment. More generally policy should create an economic environment Engendering Democracy in Brazil that favors competitive industry, not inefficient industry whose Women's Movements in Transition Politics survival depends on state inter- Sonia E. Alvarez vention. In the last twenty years, Brazil has witnessed the emergence and development of perhaps the largest, most diverse, most radical, and most successful women's movement in contemporary Latin America. This book tells The Citizenry Speaks the compelling story of the rise of progressive women's movements amidst the Now that hope has been restored, climate of political repression and economic crisis enveloping Brazil in the Panama has the opportunity to be- 1970s, and it devotes particular attention to the gender politics of the final come Latin America's most success- stages of regime transition in the 1980s. ful participatory democracy. After "This is an intelligent and scintillating book-a superior contribution 21 years in opposition, however, both to the burgeoning literature on women and politics and to our Panama's political leaders must understanding of Brazilian and Latin American politics." rise to a new challenge-the chal- -Scott Mainwaring,Helen Kellogg Institutefor InternationalStudies lenge of governing. Paper. $15.95 ISBN 0-691-02325-5 $39.50 ISBN 0-691-07856-4 Whatever happens, Panama's Cloth: leaders must recognize that the citizenry does not want a strong A AT YOUR BOOKSTORE OR government. Twenty-one years of dictatorship have cured them of Princeton University Press that. What the Panamanian people 41 WILLIAM ST. * PRINCETON, NJ 08540 * (609) 258-4900 want and need is a government ORDERS: 800-PRS-ISBN (777-4726) that listens and, with calm and steadiness, acts. a

20 Hemisphere Fall 1990 So, What Did Happen? by Peter Eisner

being tamales and to display por- covering the war There was little the invasion of Panama, nographic photos, a gun collec- chance to evaluate how the war was a wide-eyed public affairs tion, and portraits of Hitler and going. Only later did it become ap- officer told hundreds of Quaddafi conveniently side by side. parent that the US attack on US and foreign journal- These same officers also worked Panama was an assault on an ill- ists detained at a US army with the Panamanian news media prepared force that could offer up base that there was no news. "You when they returned to the air with only scant and sporadic resistance. might as well go home," he said. a unanimous pro-invasion stance. The reporters could not know Some of those assembled were this. They were dependent on the reporters who normally cover Pan- Department of Defense and ripe ama but were off station when the for the performance they were 27,000 US troops invaded in De- about to hear cember 1989. Hardly any foreign The press officer was a starched correspondents were already in the colonel who in better times was the country. The US military held most calm voice of military confidence of the journalists who scrambled in- at Southern Command. For the oc- to Panama on a tight leash for the casion, however, he was regaled in first few days, far from the battle full camouflage, complete with lines at Howard Air Force Base. holstered side arm. There was an The lucky few who were already on edge of danger in it all, and he was station-including the Pentagon the only contact with the war that pool reporters secretly flown to the reporters-clad in designer Panama-complained they were jeans and Banana Republic shirts- systematically blocked from getting could not see. anywhere near the action. "Listen, I'm going to be frank By the end of Operation Just with you," he said, sweat gathering Cause, many reporters had at least on his upper lip and a nervous the vague sensation they had been otherworldly look in his eye. "We and snookered again by Washington. Blame have too many of you here Journalists-and therefore the US Sharing the your safety is our primary concern." public-were submitted to a media- In spite of Southern Command ef- Clearly, in the colonel's (and by management intelligence opera- forts, journalists in Panama could extension, the US military's) view, tion orchestrated by the Pentagon have waged a better campaign. Panama was too dangerous a place and the White House. These were When they were finally set free to let people out on the streets. more concerned with molding after four days, many were at first And if the streets were too danger- public opinion than with providing skeptical when they saw a cheering ous, there was no reporting to be information and details on what populace applauding the US sol- done there. And if there was no was until the Gulf Crisis the largest diers in green. Yet with the re- reporting to be done, then the US military operation since the peated images, and few trips reporters should leave. Some of Vietnam War organized outside the US military the assembled journalists gasped in Psychological operations of- domain, skepticism was suspended disbelief, demanding they be set ficers guided media tours of Gen- in favor of stories closer at hand. free as soon as possible. Most eral Manuel Antonio Noriega's Not that it was easy. In the iso- stayed, but more than 100 re- offices, all too willing to reveal lated environment created by Pen- porters took the colonel's advice cocaine seizures that ended up tagon news management, many and left that same night on a mili- reporters were concerned about tary plane for Houston. The rest their personal safety. Some had were set free the following day. PeterEisner is chief of Newsday's never before been to Panama, and The US did its best to deny ac- Miami bureau. many had no idea how to go about cess and complicate the lives of

Hemisphere * Fall 1990 21 Features: Panama

journalists. Pentagon pool re- confused, these people described The prospect is one of US offi- porters, in particular, complained themselves as patriots-bona fide cials serving up journalistic pablum they spent most of their time wait- opponents of both Noriega and to reporters in a safe, comfortable ing for long and meaningless trips the US invasion. Hundreds who suf- location, while advising that alterna- to places where nothing was hap- fered the consequences of the US tive viewpoints will be both expen- pening. When the reporters asked blitz were-and still are-almost sive and dangerous to obtain. This to be taken to the heaviest fighting totally ignored. They were the scenario plays to the growing ten- at Noriega's headquarters, they anonymous victims of a war that dency of news reporting to provide were refused access. "We told our US officials said ended with little that which is clearly at hand, in- escorts that was where we needed "collateral damage." The reality stead of breaking ground on that to be," Fred Francis of NBC told an was often cruelly different. which is further off. The result is a interviewer "We were told, 'it was distortion that feeds the image- too dangerous. " Francis got news ItWon't Get Easier ... making capabilities of the TV pic- of the invasion on the first day by tures transmitted back home. To watching a TV feed of a Pentagon In the 1990s reporters will likely this hour, most Americans think briefing from Washington. face growing impediments to the that the Panama invasion was a After the fiasco of trying to open exercise of their jobs. Some "clean, surgical operation," to use cover Grenada, where reporters of the impediments will come from Pentagon phrasing, and that Pana- were detained and the Pentagon the government, but some will be manians cheered the US onslaught otherwise blocked them from of their own making. in unison. doing their jobs, US officials said At stake is the balance between There is, however, reporting they would fashion a policy that gaining access to the news and and witnesses that show that the would aid the public's right to making use of it to the fullest ex- US invasion was not as smooth or know. Contrary to that promise, tent possible. The danger is that clean as all that. And ironically treatment of the news media in journalists simply lose interest in enough, some of the best documen- Panama was obstructionist, ineffec- the broader questions of the day in tation for that other vision is clas- tive, and often cranky. The in- the rush to get the story back home. sified material-filmed and then vasion degenerated into a US Are journalists incapable of censored by the Bush administra- misinformation campaign of duti- identifying more than one social tion itself. "Those classified but un- fully published stories about Norie- group? Have they lost the ability to forgettable moments of Operation ga's red underwear, taste in rock hear other viewpoints without Just Cause were also a triumph for music, and attachment to voodoo- deciding that these represent an photographic technology," wrote stories that later proved to be false. unreasonably small minority? Jour- PatrickJ Sloyan, a Newsday Wash- Thanks to a propaganda campaign nalists have the responsibility to ington correspondent. "The pitch- that embarrassed even US civilian search out the cultural diversity of black night of the 1 A.M. H-hour officials, the Southern Command the stories and countries they cover over Panama was transformed into reported finding 50 pounds of The lesson of Panama was not daylight by electronically-enhanced cocaine in Noriega's offices. Six lost on the media managers at the infrared military cameras. Air weeks later, they admitted a slight White House, whose tactics were Force, Navy and Army combat mistake: there had been no co- rewarded with a high media rating photographers recorded-from caine, just tamales. It was, the Pen- for President George Bush. Hot above and below-some of the tagon said, "an honest mistake." after Panama, they warned the 4,500 US paratroopers who took a In the feeding frenzy for stories White House press they could not 17-second plunge into combat about Noriega's exile and his guarantee the safety of reporters from only 500-feet. The same infra- reported vices, US journalists com- covering the February Cartagena red technique was used to record pounded the insult of being invited drug summit. Reporters were sound and sight of the massive fire- to go home, by not venturing far bivouacked instead in the city of fight at the Commandancia, the beyond the range of the US govern- Barranquilla so that Bush, playing Panamanian Defense Force head- ment's public relations managers. the conquering hero, could stop quarters in the crowded slums of Few reporters looked beyond the off for a news conference after the Panama City" (January 14, 1990) altered appearance of a country fact. The image produced by the "It is really dramatic stuff," said under occupation to the more trend-setting Washington press an Army official who viewed the complex realities. The TV images corps ensured a subordinate slot combat photography. But that showed cheering middle-class resi- for the other voices in Cartagena- footage, along with the penulti- dents embracing the US troops. where Colombian, Peruvian, and mate moment when Noriega sur- Nevertheless, many Panama- Bolivian officials argued against US rendered at the Vatican Embassy nians were out of the spotlight but economic pressure and military before Army video cameras, are in the war zone. Impoverished and adventurism. not for taxpayer consumption.

22 Hemisphere * Fall 1990 "Combat photography is for com- count? US cultural prejudice gave If human lives are important, if bat use-internal use," said Robert all importance to 23 US soldiers Colombia and Panama and Peru Hall, an aide to Defense Secretary and almost none to the untold have just as much right to their na- Dick Cheney. To a reporter's de- hundreds of Panamanians who lie tional aspirations as the US does, mand for films of combat and in common graves. No one knows then US journalists may be doing Noriega's surrender, Hall advised how many Panamanians died and an abysmal job of covering the legal action against the Defense under what circumstances those news. Department. "File a freedom-of- deaths took place. Because of a col- information suit." lapsed system of gathering and re- Facing the '90s To be sure, access to the news is porting death statistics, we may a more complicated notion than never know whether the official Journalism in the 1990s has some arriving at the scene. Anyone with death toll among Panamanians of serious questions to ask about its plane fare can gain access to the 516 civilian and military deaths is role in covering government. And far reaches of news events in a at all accurate. one of the greatest false assump- short amount of time, unless some For a journalist, should a Pana- tions that news reporters of the government puts up systematic manian's life be worth any less 1990s will ever make is that the roadblocks. than that of a GI? One could argue government is telling them the Yet access also involves the tools about the concerns of the folks truth. employed, familiarity and sensi- back home, but for a reporter, be- Instead the news media gets tivity to culture, a knowledge of holden to the truth, can patriotism caught up in the simple story of an background history, and the ability get in the way? It seems incredible, American fight in which there were to break away from the pack. And but in 1990 the cynical Fleet Street American casualties for a vaguely it involves having editors back wisdom that "one dead English- defined cause. And then, after home who believe in the independ- man is worth a thousand dead Paki- some wringing of hands, the ence ofjournalistic inquiry instead stanis" is still frighteningly true. camera turns toward another of packaged recapitulation of the And while many Americans were event, and collective memory dis- resident wisdom gleaned from deluged with information about solves. We compound the error by Washington and the nightly news. the 23 US servicemen reported letting the stories drop off the Reporters could have made bet- dead, the US military has not been radar scope as soon as Washington ter use of their belated access by held to task about their deaths casts a benign and neglectful look covering important stories ignored either Where did they die, under askance. by most news outlets. A different what conditions? Were any of the The news machine is plowing notion of news access would have deaths, as in the case of Grenada, other fields right now, be it South identified other voices: the Panama- the result of friendly fire? As with Africa, the Soviet Union, the Per- nian who took up a gun and shot much of the coverage of Panama, sian Gulf, or the democratic open- US soldiers to defend his notion of little was done by journalists to put ing in Eastern Europe. The stories patriotism and homeland; the griev- those numbers to the test. There of war dead and destruction in ing wife who braved the smell of were considerable restrictions on Panama are barely a whisper heard death at the overflowing city reporting, and there was lack of ac- on the journalistic horizon. morgue to identify her husband--a countability by the US government, The US game plan in Panama traffic cop shot in the back by ad- but there was also limited interest was based on secrecy and silence. vancing US soldiers; and the lawyer on the part of many reporters in The government, reveling in the who was dragged from his home at going beyond the most obvious high approval rating garnered for random to be interrogated by US stories. US military opinion shapers President Bush, languishes in the troops about his political beliefs. took advantage of this the same notion that it went like clockwork, "Was catching Noriega worth way the White House press office the deception and lies justified by so much death?" asked an impover- does everyday, by proffering the having accomplished the goal of ished construction worker, after he diverting news story. capturing a renegade former told a US reporter he supported They succeeded. The residing employee. the invasion. He was confused, he perception of the Panama invasion All in all, the image is one of said. He hated Noriega, but captur- is not of troops slogging through journalistic future shock. And if ing the general was not worth so the mud or dying on some foreign the US press is not careful, Panama much bloodshed. battlefield, but long after the is the harbinger of a relationship And what about the death of action was over smiling soldiers that will systematically convert so many people? Was Panama an being hugged by middle-class sup- reporting from its watchdog role anonymous land, where the in- porters in downtown Panama City into a subservient handmaiden of vasion's dead are anonymous souls and blasting loud music at the a manipulative, nonresponsive comprising a questionable body demonized Panamanian dictator government. *

Hemisphere * Fall 1990 23 Features: The Caribbean

1992: The EC and the Caribbean by Paul Sutton

others they are the main source of Understandably, such a prospect mark the 500th anniversary of foreign exchange and providers of has caused alarm in the Caribbean nits 1992 discovery the Caribbean by Europe. will In employment. and acute concern in Brussels, Lon- Europe 1992 will mark a dif- don, and Paris. No solution in sight ferent, but equally important can satisfy all parties. The British event. 1992 as a Threat By the end of that year, government, for example, has yet the European Community (EC) The year 1992 poses its most acute to articulate a position concerning will have transformed itself into a threat to bananas. Under present the EC's possible Caribbean im- single market of 320 million peo- arrangements, banana imports pact. Neither has the Inter-Service ple accounting for 20% of world from the CARICOM countries and Group, which was set up in the trade. This event will have pro- the French dpartements enjoy European Commission in Brussels found implications for the Third preferential access to the British to review the matter and make World, which represents about one- and French markets respectively. proposals. The preferential ar- third of EC imports and exports. In effect, a complex series of licens- rangements set out in the L6me For the Caribbean in particular, ing and tariff arrangements main- Conventions will continue un- the implications are of major sig- tains a market for high-cost changed. Yet the EC now reserves nificance given the longevity of its Caribbean producers to the dis- the right to "establish common ties with Europe and the impor- advantage of lower-cost producers rules for bananas" so long as no tance of trade with the EC to its in Colombia, Ecuador, and Central traditional Caribbean supplier "is social and material well-being. America. Since one of the prin- placed as regards access to, and ad- This transformation will be con- ciples of the EC's unified market is vantages in, the Community, in a sequential for a select number of the free movement of goods be- less favourable situation than in commodities of major importance tween member countries, these the past or present." The Eastern to the Caribbean Common Market preferential trading arrangements Caribbean has therefore won a tem- (CARICOM) Among these com- cannot survive 1992. For instance, porary reprieve, but it has won no modities are sugar, bananas, and bananas imported into any one EC guaranteed long-term concession rum in agriculture; and alumina, country can be freely circulated in sufficient to attract substantial new bauxite, refined petroleum, and another The European consumer investment in the industry. At best, petroleum products in minerals. will benefit from the unrestricted the future for banana exports to Singly or in combination these ac- entry of low-cost Latin American the EC is uncertain. count for 80% or more of exports bananas throughout the EC. In Beyond bananas, a number of to the EC for nine of CARICOM's direct contrast, the high-cost general threats can be identified. 13 member states, while for several peasant producer in the Eastern The most important are trade diver- Caribbean, working difficult ter- sion and investment diversion. The rain in small plots, will lose out in European Commission argues that Paul Sutton is a lecturer in politics at the resulting competition. It has 1992 will stimulate economic the University of Hull, England. He is even been suggested that the Carib- growth, resulting in a rise of EC the editor of Europe and the Carib- bean producer may have to entire- imports by as much as 7%. Even if bean (London. MacMillan, 1991). ly cease production for export. this figure is attained (and there is

24 Hemisphere * Fall 1990 a good deal of dispute among the the idea of 1992 to CARICOM, in the EC for a quality product and experts), the Caribbean is in a European Commission officials new destinations will be intense- poor position to capture the have stressed the opportunities with Eastern Europe and Southeast benefits. Demand for most of the available in the travel, telecom- Asia as especially keen rivals. region's traditional exports is munications, and information- either stagnant or declining. And processing industries. But above although there has been an easing all they have stressed tourism. In 1992 as a Catalyst of the rules of origin in the next fact, the Caribbean has an oppor- As with so much of its relationship L6me Convention, the value added tunity it cannot afford to miss. In with Europe over the last 500 years, necessary for a manufactured or recent years the EC has accounted the predicted effects of 1992 on processed product to benefit from for 10% of tourist arrivals and 25% the Caribbean are rather mixed. duty-free access is still high (a mini- of tourist revenue in the Carib- On the negative side, 1992 consti- mum of 45%) and is defined by a bean. The reasoning goes that tutes both a threat to the long- complex set of rules and lists. European tourists, with more established trade in several Moreover, imports into the EC will wealth and leisure as a conse- commodities and yet another bar- have to meet higher technical stan- quence of 1992, will visit in rier to developing newer trade in dards and satisfy more stringent larger numbers and stay longer manufactured and processed safety rules as the consequence of a Decreased air fares, a predicted products. On the positive side, it harmonization of consumer protec- result of competition and deregu- provides new opportunities in the tion legislation within the EC. lation, will also boost tourism. fast-growing service industries and, Small-scale Caribbean producers, through the L6me Convention, the then, are at a distinct disadvantage, guarantee of a significant amount since they face both the mountain of financial and technical assis- of EC bureaucracy and demand for tance. The balance between profit ever more sophisticated products and loss is narrow, but it is general- that exceed the local industry's ly perceived as favorable from the capacity. Indeed, some CARICOM Caribbean side. Why else would countries may even see an erosion Haiti and the Dominican Republic seek closer links with the EC? And why would the CARICOM states and Suriname continue their membership in L6me as well as their expensive diplomatic mis- sions in Brussels were it not for the real advantages derived from the EC link? Where, then, does the Carib- bean go from here in its relations with the EC? Signs point in one direction. to closer intra-Caribbean cooperation. In a world of increas- The EC has already set aside con- ingly competitive trade blocs the siderable funds from its aid pro- Caribbean has no other choice. gram to the region for tourist Going it alone is no longer a viable development. In addition it has option. A deepening of integration urged joint ventures with Eu- within CARICOM and a widening ropean tourist operators and the of membership to include Suri- development of a coordinated name, Haiti, and the Dominican regional tourist strategy. For its Republic are therefore necessities. part the Caribbean has begun to It is even possible to envisage the

o , respond positively to this chal- link with the EC opening the way tities that may be imported free of lenge. A Caribbean hotel registra- to the incorporation of Cuba and customs duties and plans for the tion system, promotional offices in Puerto Rico at the margin. Europe, abolition of the tariff quota in the EC, and market intelligence which for centuries divided the 1995. Increased sales in the EC will facilities have been established. But Caribbean, is now acting as the almost certainly follow. this new market strategy can only catalyst to bring it together The The greatest benefits, however, be seen as a beginning, not as suffi- onus now lies with the Caribbean are expected in services. In selling cient in itself. Foreign competition to turn this promise into reality a

Hemisphere * Fall 1990 25 Features: The Caribbean

1992: The EC and the Caribbean by Paul Sutton

others they are the main source of Understandably, such a prospect mark the 500th anniversary of foreign exchange and providers of has caused alarm in the Caribbean nits 1992 discovery the Caribbean by Europe. will In employment. and acute concern in Brussels, Lon- Europe 1992 will mark a dif- don, and Paris. No solution in sight ferent, but equally important 1992 as a Threat can satisfy all parties. The British event. By the end of that year, government, for example, has yet the European Community (EC) The year 1992 poses its most acute to articulate a position concerning will have transformed itself into a threat to bananas. Under present the EC's possible Caribbean im- single market of 320 million peo- arrangements, banana imports pact. Neither has the Inter-Service ple accounting for 20% of world from the CARICOM countries and trade. This event will have pro- the French dipartementsenjoy found implications for the Third preferential access to the British World, which represents about one- and French markets respectively. third of EC imports and exports. In effect, a complex series of licens- For the Caribbean in particular, ing and tariff arrangements main- the implications are of major sig- tains a market for high-cost nificance given the longevity of its Caribbean producers to the dis- ties with Europe and the impor- advantage of lower-cost producers tance of trade with the EC to its in Colombia, Ecuador, and Central social and material well-being. America. Since one of the prin- This transformation will be con- ciples of the EC's unified market is sequential for a select number of the free movement of goods be- commodities of major importance tween member countries, these to the Caribbean Common Market preferential trading arrangements (CARICOM) Among these com- cannot survive 1992. For instance, modities are sugar, bananas, and bananas imported into any one EC rum in agriculture; and alumina, country can be freely circulated in bauxite, refined petroleum, and another The European consumer petroleum products in minerals. will benefit from the unrestricted Singly or in combination these ac- entry of low-cost Latin American count for 80% or more of exports bananas throughout the EC. In to the EC for nine of CARICOM's direct contrast, the high-cost 13 member states, while for several peasant producer in the Eastern 'he most important are trade diver- Caribbean, working difficult ter- sion and investment diversion. The rain in small plots, will lose out in European Commission argues that Paul Sutton is a lecturer in politics at the resulting competition. It has 1992 will stimulate economic the University of Hull, England. He is even been suggested that the Carib- growth, resulting in a rise of EC the editor ofEurope and the Carib- bean producer may have to entire- imports by as much as 7%. Even if bean (London. MacMillan, 1991). ly cease production for export. this figure is attained (and there is

24 Hemisphere * Fall 1990 a good deal of dispute among the the idea of 1992 to CARICOM, in the EC for a quality product and experts), the Caribbean is in a European Commission officials new destinations will be intense- poor position to capture the have stressed the opportunities with Eastern Europe and Southeast benefits. Demand for most of the available in the travel, telecom- Asia as especially keen rivals. region's traditional exports is munications, and information- either stagnant or declining. And processing industries. But above 1992 as a Catalyst although there has been an easing all they have stressed tourism. In of the rules of origin in the next fact, the Caribbean has an oppor- As with so much of its relationship L6me Convention, the value added tunity it cannot afford to miss. In with Europe over the last 500 years, necessary for a manufactured or recent years the EC has accounted the predicted effects of 1992 on processed product to benefit from for 10% of tourist arrivals and 25% the Caribbean are rather mixed. duty-free access is still high (a mini- of tourist revenue in the Carib- On the negative side, 1992 consti- mum of 45%) and is defined by a bean. The reasoning goes that tutes both a threat to the long- complex set of rules and lists. European tourists, with more established trade in several Moreover, imports into the EC will wealth and leisure as a conse- commodities and yet another bar- have to meet higher technical stan- quence of 1992, will visit in rier to developing newer trade in dards and satisfy more stringent larger numbers and stay longer manufactured and processed safety rules as the consequence of a Decreased air fares, a predicted products. On the positive side, it harmonization of consumer protec- result of competition and deregu- provides new opportunities in the tion legislation within the EC. lation, will also boost tourism. fast-growing service industries and, Small-scale Caribbean producers, through the L6me Convention, the then, are at a distinct disadvantage, guarantee of a significant amount since they face both the mountain of financial and technical assis- of EC bureaucracy and demand for tance. The balance between profit ever more sophisticated products and loss is narrow, but it is general- that exceed the local industry's ly perceived as favorable from the capacity. Indeed, some CARICOM Caribbean side. Why else would countries may even see an erosion Haiti and the Dominican Republic of the few advances of recent years seek closer links with the EC? And as investment decisions anticipate why would the CARICOM states the greatest gains to be made from and Suriname continue their trade within the EC or with Eastern membership in L6me as well as Europe. The continuing economic their expensive diplomatic mis- marginalization of the Caribbean sions in Brussels were it not for the to the EC is thus a distinct prob- real advantages derived from the ability. EC link? Where, then, does the Carib- bean go from here in its relations 1992 as an Opportunity with the EC? Signs point in one The CARICOM countries stand to direction: to closer intra-Caribbean lose from 1992, but not entirely. cooperation. In a world of increas- First of all, the harmonization of The EC has already set aside con- ingly competitive trade blocs the very different rates of excise taxes siderable funds from its aid pro- Caribbean has no other choice. on products such as cocoa and cof- gram to the region for tourist Going it alone is no longer a viable fee are expected to boost demand development. In addition it has option. A deepening of integration and price within the EC. Some urged joint ventures with Eu- within CARICOM and a widening Caribbean countries stand to gain ropean tourist operators and the of membership to include Suri- from this change as they do as well development of a coordinated name, Haiti, and the Dominican from modifications to the rum regional tourist strategy. For its Republic are therefore necessities. protocol in the next L6mb Conven- part the Caribbean has begun to It is even possible to envisage the tion. The latter augments the quan- respond positively to this chal- link with the EC opening the way tities that may be imported free of lenge. A Caribbean hotel registra- to the incorporation of Cuba and customs duties and plans for the tion system, promotional offices in Puerto Rico at the margin. Europe, abolition of the tariff quota in the EC, and market intelligence which for centuries divided the 1995. Increased sales in the EC will facilities have been established. But Caribbean, is now acting as the almost certainly follow. this new market strategy can only catalyst to bring it together The The greatest benefits, however, be seen as a beginning, not as suffi- onus now lies with the Caribbean are expected in services. In selling cient in itself. Foreign competition to turn this promise into reality. .

Hemisphere * Fall 1990 25 Features: The Caribbean

The View from the Caribbean by Anthony P Gonzalez

of the US will remain a zone of World countries in terms of their world economic and transnational drug trafficking, il- levels of development and relations geopolitical order poses legal immigration, fiscal erosion, with the world economy. This pro- urgent challenges to worsening poverty, environmental cess is bound to accelerate with the the countries of the deterioration, and fragile democ- formation of regional trade blocs, Caribbean. The new racies, but the impact of these which will stimulate economic situation is one of intensifying trends will continue to be felt not transformation in those Third competition for capital and mar- only in the Caribbean but in the World countries that gain entry at kets, based on rapid innovation in US as well. It is doubtful, nonethe- the relative expense of those that the technology and organization of less, that the magnitude of Wash- are left outside. communication, production, and ington's security response will In a multipolar world, the most transportation. It is also one of powerful states will be assuming shifting geopolitical strategies and greater responsibilities within their alignments, as economic transfor- home regions while disengaging mations undercut the arms race of themselves from other regions. old. These trends mean weakened This tendency will make it more demand for the traditional exports difficult for Third World countries of the Caribbean and weakened to hold a few metropolitan powers commitment by its traditional al- accountable for the plight of the lies. Clearly the region stands at periphery. Such ambiguity will be- the crossroads of its economic and come especially pronounced as diplomatic future. What are the within each trade bloc the metro- implications for Caribbean trade politan powers come to share policy? influence with ascending inter- mediate powers (e.g., Brazil and Crumbling Pillars Mexico in Latin America) The within At the core of the Caribbean's emergence of such divisions and outside the Third World will challenges is the crumbling of its approximate that of the past, as likely undercut its diplomatic three geostrategic pillars: the Cold indicated by its modest response to raison d'8tre, in part by War, Third World solidarity, and pulling the Latin American and Caribbean ap- rug out from traditional European market pro- under its nonaligned peals for aid in fighting the drug movement. tection. To begin with, the end of war Yet debate within the US is Finally, the L6m6 IV Conven- the Cold War implies that the open-ended inasmuch as US tion of December 1989 bore testi- Caribbean is of reduced strategic foreign policy is undergoing mony to the erosion of traditional importance in East-West terms and profound revision in the post- European commitments to protect that US development assistance to Cold War climate. the export markets of the region will drop substantially. principle Since achieving independence Caribbean commodities such as Undoubtedly the southern flank in the 1960s, Caribbean countries sugar and bananas. The European have been active in Third World Community (EC) failed to offer ex- efforts to redress North-South port guarantees to the Caribbean Anthony P Gonzalez is a senior lecturer economic imbalances. For more against the impact of the Uruguay in the Institute of InternationalRela- than a decade, however, Third Round. Nor did it offer to safe- tions at the University of the West In- World solidarity has been on the guard Caribbean export guaran- dies, in St. Augustine, Trinidad.His wane, symbolized by the disunity tees from the impact of Europe's recent publicationsinclude "Structural regarding the Uruguay Round of market unification of 1992. The Adjustment Lending and the Carib- the General Agreement on Tariffs Caribbean's trade privileges with bean in L6m IV, "CARICOM and Trade. The key reason is the Europe are vanishing as the EC Perspectives 1990). growing differentiation of Third seeks to globalize its commercial

26 Hemisphere . Fall 1990 ties with the developing world and getting entangled in reciprocal spatial system of production in establish a special trade relation- trade agreements. Given the which export manufacturing based ship with Eastern Europe and the likelihood of such entanglements, on cheap, unskilled labor is fast Mediterranean. it is unclear what CARICOM would receding. This trend is facilitated have to concede in exchange for by telecommunications that permit Trade Options guaranteed market access. The ar- the integration of management gument also overlooks the limita- with technology transfer; that is, Given these trends, it is clear that tions on the development of large management operations can stay at the Caribbean must bolster its specialized firms imposed by home as production activities be- world-market competitiveness-the CARICOM's small market size. come divided among various lo- standards for which are sharply A third perspective proposes the cales worldwide. In this setting, rising. The consensus seems to be widening of CARICOM to include transnational firms increasingly lo- that doing so must begin with some subset of additional countries cate their production activities on domestic and regional policies to in the Caribbean Basin, especially the basis of access to large pro- raise productivity. The corres- the Dominican Republic, Haiti, tected markets. As a consequence, ponding approach to trade policy, and Suriname. This approach the ability of Third World zones to however, is the subject of consider- would scarcely solve the problem create or attach themselves to mar- able debate that centers on five of market size or reduce depend- ket blocs is essential in their com- perspectives. ence on extraregional markets. petitive quest to attract capital. The first perspective claims that, Nevertheless, it could be useful in The locational attraction is en- both as individual countries and strengthening the Caribbean's col- hanced by the possession of skilled through the regional vehicle of the lective negotiating leverage. labor at a reasonable cost. Caribbean Common Market A fourth perspective stresses the An example of the logic of (CARICOM), the Caribbean al- importance of North-South coop- megablocs is Canada's free-trade ready possesses all the access to in- eration, particularly with Latin agreement with the US. Canadian ternational markets it needs. Such America. Yet this option continues policymakers came to realize that access is based on L6me, the Carib- to be frustrated by the economic the inflow of foreign investment is bean Basin Initiative (CBI), and plight of the South, whose revival linked to access to a large pro- the Caribbean-Canadian Trade hinges substantially on the policies tected market. They decided that, Agreement (CARIBCAN) From of the North. Furthermore, eco- while a free-trade agreement would this viewpoint, the problem is how nomic cooperation and integration give US investors a decided edge in to exploit the accessible markets by with South America have always Canada's service, financial, and focusing on product niches. Unfor- been inhibited by the Caribbean's agricultural sectors, it would also tunately, though, market access special arrangements with the enhance Canada's competitive under these schemes is largely il- North. Insofar as these arrange- edge in its key spheres of manu- lusory. The reason is that they ments are dissolving, scope is facturing, such as steel and restrict and exclude many Carib- broadened for links with Latin automobile parts. Canadian bean products, particularly in the America. Still, significantly policymakers, then, are prepared most vital market: the US. In addi- strengthened links with Latin to lose some degree of ownership tion, protectionism, especially America cannot occur until it un- and control of certain economic under CBI, has impeded the flow dergoes substantial economic sectors in exchange for a benefit: of export-oriented capital to the recovery. improved access to the US market shores of the Caribbean. CBI did From the standpoint of a fifth for other economic sectors that foster the expansion of a few non- perspective, the Caribbean needs are internationally competitive and traditional exports, such as ap- to forge ties with the Far East. Such where gains are associated with re- parel, electronics, fruits, and winter ties could indeed be fruitful as turns to scale. Hence, Canada's vegetables, but the region's antici- sources of capital and tourism. It is free-trade decision is based on the pated export take-off did not oc- doubtful, however, that the Carib- security of access to the US market. cur, due mainly to the insecure bean could be a successful ex- The Caribbean's interests are foreign-market access of many of porter to Asia, a possibility that lies similar to Canada's, especially its products. well beyond the immediate objec- given the region's apprehension According to a second perspective of becoming a regionally com- about the possible impact of a US- tive, CARICOM needs to establish petitive exporter Mexico free-trade agreement, a common regional tariff and a which threatens to marginalize the single market for the region's ACaribbean Megabloc Caribbean from transnational flows producers. Yet this argument as- of capital and commerce. Still, sumes CARICOM could negotiate The restructuring of the world while the Caribbean has demon- access to export markets without economy is articulating a new strated substantial interest in join-

Hemisphere Fall 1990 27 Features: The Caribbean

ing such a megabloc, it is unclear Challenges for Diplomacy to increase their access to export whether Canada and Mexico would markets. In view of the Caribbean's favor extending a free-trade agree- What, then, are the prospects for small size and limited development further south. President Caribbean trade? They are favor- ment, reciprocal bargaining should George Bush's Enterprise for the able if Caribbean leaders confront be handled with caution. It should Americas Initiative, however, would head-on the ramifications of the proceed piecemeal, carefully con- create such an extension. new global economic order for sidering the timing of negotiations Whatever the obstacles, there trade diplomacy. Since achieving and the economic sectors to be are compelling reasons why a free- independence in the 1960s, the included. Nonetheless, caution trade agreement should include Caribbean has pursued a course of should not be carried too far- the the Caribbean and South America trade diplomacy based on "non- key is not to lose the benefits of as well. First, the US needs to invite reciprocity" between developed belonging to a free-trade scheme. international competition in order and developing countries. This The most important ingredient to improve its productivity, and, principle of favored treatment for may be a regional platform of nego- in the face of other protected Caribbean trade is reflected in the tiations. Such a platform is absent megablocs, regional competition General System of Preferences, under CBI-one reason for the would be an obvious alternative. L6m6, CBI, and CARIBCAN. Yet policy's failure. A regional plat- Second, insofar as massive popula- the moment has arrived to raise form should be structured so that tions will become engulfed by questions concerning the supposed it enhances the Caribbean's collec- megablocs in Europe and the advantages of nonreciprocity. tive bargaining power In any case, Pacific Rim, the Americas need to Recognition of the dim future of negotiations must go hand-in-hand form a protected hemispheric nonreciprocal, privileged trade ar- with a strategy of achieving eco- market. Third, the US has a stake rangements has caused many less- nomic competitiveness in potential in picking up the economic pieces developed countries to seek some fields of regional strength. Exter- in Latin America and the Carib- form of reciprocal bargaining. nal financial and technical assis- bean as a means of building a Such countries are liberalizing tance must be part of the package. prosperous zone of interdepend- their import policies under struc- The Caribbean's traditional ent trade. tural adjustment programs in order concepts of sovereignty and independence are facing basic challenges. The region might well be inclined to view reciprocal negotiations as a threat to its autonomy. This was precisely the response of the Central American Common Market to the recommendation by the Economic Commission for del Periodismo Latin America and the Caribbean that it enter into a free-trade bloc with the US. Yet, if the Caribbean proves unable to secure a foothold in a restructured world order, the The hemisphere's Spanish-language long-range consequences for the region's development could be quarterly journalism review makes disastrous. its debut with the 1990s Inasmuch as the success of a free-trade agreement depends on the concessions negotiated, Carib- bean diplomats must secure the One year - four essues - $15 support of those US interests that Contact stand to gain from such an agreement. On this score there is room PULSO for cautious optimism. Past bargain- Central American Journalism Program ing and negotiating successes indi- Florida International University cate a respectable Caribbean North Miami, Florida 33181 capacity for diplomacy, and thus for renegotiating the Caribbean's position in the changing world order .

28 Hemisphere * Fall 1990 A CBI Report Card by Carmen Diana Deere

islands of the Eastern Caribbean- under CBI doubled (from 6.7% to exports as beneficial to a coun- have seen spectacular upturns in 13.6%) as a share of the area's total try's economy as a dollar's their exports to the US. exports to the US. Nonetheless, worth of sugar exports? The considering only those items that experience of many countries s a dollar's worth of garment would not otherwise have entered under the Caribbean Basin the US duty-free, such exports ac- Initiative (CBI) suggests not. Since tually dropped (from 5.9% to the 1984 enactment of CBI, some 5.0%) as a share of the total. In Caribbean Basin countries have other words, CBI's duty-free provi- indeed experienced rapid export sions have had a negligible impact growth and significant export diver- on the composition of Caribbean sification. Yet most of the region's Basin exports to the US. countries have not made such ad- Still, the promotional activities vances; and of those that have, of the US Department of Com- export growth and diversification merce deserve some of the credit have failed to generate substantial for the expansion of the region's per capita growth of their econ- manufacturing exports. The reason omies. Why has CBI yielded such is that such activities have raised disappointing results? the Caribbean Basin's economic profile. This raised profile, in turn, An Assessment has encouraged new investment in the region, particularly in its free- In 1984-89 Caribbean Basin ex- trade zones. ports to the US fell, due largely to Yet the fundamental question a sharp drop in petroleum exports remains: has the growth of non- to the US. If petroleum-exporting traditional exports contributed to countries are excluded, the re- economic recovery gion's exports to the US registered in the region? Again, the answer is no. The Inter- a modest 4.1% annual increase. More significant than export American Development Bank re- This increase, however, was just growth has been the extent of ex- of the Caribbean half the growth rate of world exports that most port diversification. Regarding the Basin's economies performed ports to the US; thus, in spite of latter, in 1983-89 manufacturing somewhat better during the CBI CBI, the Caribbean Basin became leaped, while mining plunged, as than during the early 1980s. proportionately less important years percentages of Caribbean Basin Their recovery, however, has been among the world's exporters to the exports to the US. Manufacturing In 1984-89 GDP US. To be sure, the export perfor- paltry and uneven. exports surged in absolute as well per capita mance of CBI beneficiary countries dropped in El Salvador, as relative terms, led by garments- Guatemala, Haiti, and Trinidad has been quite varied. Some of the a rubric excluded from duty-free and Tobago. Meanwhile region's countries-Costa Rica, the GDP per treatment under CBI's supporting capita grew just minimally (0.3% to Dominican Republic,Jamaica, and trade legislation, the Caribbean 1.3% per year) in successful export- Basin Economic Recovery Act ing countries such as Costa Rica, (CBERA) the Dominican Republic, and CarmenDiana Deere is professor of Can the modest rise in the Jamaica. Possibly most striking of economics at the University of Massa- area's nonpetroleum exports to all is that the only country in the chusetts at Amherst. She is co-authorof the US and the more pronounced region to experience robust growth In the Shadows of the Sun: Carib- diversification of its exports be at- in GDP per capita was Barbados: bean Development Alternatives tributed to CBI? The answer is no. the very economy whose exports to and U.S. Policy (PACCA/Westview, In 1984-89 Caribbean Basin ex- the US fell most rapidly in the CBI 1990). ports subject to duty-free treatment period.

Hemisphere * Fall 1990 29 Features: The Caribbean

US MerchandI II fIo the a ribbanasi

1984 1989 Average Annual Growth

Central Caribbean $1,811,632 $2,578,588 7.3%

Central America $2,001,687 $2,276,893 2.6%

Thousands of dollars Source: US International Trade Commission I

The Missing Linkages employment in domestic in- and/or processed overseas and dustries. Similarly, if the value- returned to the US for additional Of course, economic stagnation added content of an export processing. In 1985-89 such ex- or decline can be variously attrib- product consists solely of labor ports doubled (from 12% to 24%) uted to political turmoil, the price costs, and if wages are extremely as a share of total Caribbean Basin of oil, the debt crisis, and austerity low, then even expanding employ- exports to the US. The problem, programs. Why, though, have even ment leads to minimal worker- however, is that these products brilliant export performances been based demand for services and have low value-added content; less associated with so little economic goods produced by domestic in- than one-third of the final value of growth? dustries. Thus economies that com- exports corresponds to local value- The key factor is the composi- pete internationally on the basis of added. As a result they contribute tion of nontraditional exports. The low wages-such as the economies minimally to the region's eco- potential impact of an export com- of the Caribbean Basin-do little nomic growth and development. modity on national economic to spark the development of local Exemplifying this problem is the growth essentially depends on how businesses. Dominican Republic. The country much value-added it generates In sum, production based on ranks as the Caribbean Basin's domestically through two channels: the combination of imported in- largest exporter of 806-807 prod- first, "backward linkages," or busi- puts and low wages cannot foster ucts to the US, and has undergone ness demand for local raw mate- significant growth and develop- impressive export growth under rials and other locally produced ment in national economies. Un- CBI. Nevertheless, the country's inputs such as services and manu- fortunately this combination is GDP per capita has remained stag- factured goods; and second, "for- encouraged by CBI policy. nant, since the new export prod- ward linkages," or worker demand For instance, among the fastest ucts are characterized by low for locally produced services and growing exports of the Caribbean value-added and are inefficient goods. Basin are those that enter the US generators of foreign exchange. Export commodities that rely on under Tariff Code Items 806.3 The 1980-88 value of the Domin- imported inputs and capital goods and 807 (now HTS subheadings ican Republic's free-trade exports have very low value-added content. 9802.00.60 and 9802.00.80) These surged nearly fivefold, while the In contrast, those that are pro- provisions allow partial duty-free value of such exports captured by duced with local raw materials and treatment of products consisting of the Central Bank as foreign ex- other local inputs have high value- US-made components that are as- change-what corresponds to added content, and hence pro- sembled overseas or of US metal domestic value-added-plum- mote greater investment and products that are assembled meted by nearly half.

30 Hemisphere * Fall 1990 _

This evidence suggests that even Basin governments must provide mote new export industries with a major rise in the free-trade ex- the infrastructure to attract inves- strong domestic linkages, such as port of assembled goods may not tors; as a result, substantial local industries that rely on local raw compensate for the loss of foreign resources are diverted from urgent materials and that are oriented to exchange from traditional exports social investments, such as educa- domestic as well as export markets. such as sugar, as has occurred in tion and health. Moreover, since Yet Caribbean Basin govern- the Dominican Republic. Estimates incentive schemes for free-trade ments cannot alter their approach rate the value-added component of zones usually include generous tax unless the US government revises traditional exports at about 90% exemptions for new investors, its own economic policy. Ironically but that of garments assembled neither do these zones produce the August 1990 enactment of CBI- from US-made and cut cloth at badly needed fiscal revenues. II made CBERA a permanent pro- about 25%. So, to maintain the gram and granted new duty-free same level of value-added content Consider an Alternative status to just one category of ex- and to generate the same level of ports: articles assembled or pro- net foreign exchange, a $1-million The evidence indicates that the cessed wholly from US-produced drop in the Dominican Republic's CBI export-promotion scheme is components or ingredients. Put dif- sugar exports would require a $3.6- incapable of promoting significant ferently, CBI-II continues to en- million rise in garment exports. growth and development in Carib- courage the expansion of those The growth of free-trade zones bean Basin economies. Rather industries that contribute least to in the Dominican Republic has than assembly industries, the re- the Caribbean Basin's economic meant thousands of new jobs, espe- gion's governments should pro- growth and development. a cially for young women. Yet wages are extremely low-often barely covering the basic food basket of workers and their families. With such a high portion of wages spent Debt, Environment, Development, Human Rights, Technology, on food, employment in free-trade Agriculture and Economics zones creates marginal forward link- Third World Ouarterly has established aunique reputation over the ages with the rest of the economy. past decade as the leading policy journal on contemporary Third Most assembly plants through- World affairs. out the Caribbean Basin are low- Third World Quarterly lends an unmatched critical perspective on cost investments, with minimal global problems and provides an analysis of important issues capital and job-training require- concerning the Asia/Pacific region, Latin America and the ments. A consequence is that the Caribbean, Africa and the Middle East. plants are particularly "footloose"; Third World Quarlerlyis published inJanuary, April, July and thus they cannot be viewed as long- October. Each issue runs to approximately 300 pages, over 80 of lasting investments or employment which are devoted to literature and book reviews - both fiction sources. Consider the case of Bar- and non-fiction. bados, which prior to CBI was one of the Caribbean Basin's main ex- Past contributors have included: porters of manufactured products. Morris J. Blachman Yasser Arafat Rudiger Dornbusch As free-trade zones proliferated in Kenneth Sharpe Farouq Kaddoumi Ibrahim F I Shihata the area, the major corporations Louis Rend Beres James Petras Ali A Mazrui operating in Barbados closed their Peter Flynn Mahathir Mohamad Haleh Afshar electronics and garment-assembly Oliver Tambo Guy Martin Riodan Roett factories in search of cheaper Walden Bello James Dinkerley Feroz Ahmad James Painter Raul Alfonsin Arturo Valenzuela labor In 1988 semiskilled labor in Laurence Harris Barnett R Rubin George Joffe Barbados earned $2.16 an hour, Carolina G Claudia Wright Yezid Sayigh compared to $0.55 an hour for Hernandez Robert C Johansen Lionel Cliffe Naseer Aruri similar labor in the Dominican Shridath Ramphal Republic. As factories closed, Bar- Chibli Mallat Alan Garcia Periz Sheldon W Simon badian exports to the US plunged. Nader Entessar Only the expansion of the island's tourism industry enabled it to Price $34.00/£23 p a. withstand these difficulties. Subscription: Send your order to: A final consideration is that free- Circulation Manager, Third World Quarterly, Rex House, trade zones are anything but "free" 1st Floor, 4-12 Lower Regent Street, London SW1Y 4PE for the host countries. Caribbean

Hemisphere * Fall 1990 W

Real-World Economics by Lisa R. Peattie

The Informal Economy" Genesis tened did not, of course, go unno- Studies in Advanced and Less ticed. Economist W Arthur Lewis, The idea of an "informal sector" on "development with un- Developed Countries writing was first put forth by the Interna- limited supplies of labor," saw that edited by Alejandro Portes, Manuel tional Labor Organization (ILO) the surplus worker was more likely Castells, and Lauren A. Benton. The in the context of a study of unem- to be shining the visiting econo- Johns Hopkins University Press, 1989. ployment problems in Kenya. Look- mist's shoes or unloading a truck 360 pp. $39.50; $16.95. ing about them, ILO economists than sitting on his hands. The ILO soon realized that both regular analysis simply recognized the pos- employment and its counterpart sibility that low-status economic ac- economy? A natural problem of unemployment were question, you might tivities were not a repository of tradition or a labor reserve for the say, when encoun- modern firms, but rather an active tering a book on part of the larger economy. the topic. Alejandro Latin American economic Portes, Manuel Castells, and Lau- has tended to combine ren A. Benton have uncovered thought the basically "dualist" approach of enough interesting research along traditional economics with a Marx- with enough muddled conceptuali- or neo-Marxist structuralism. zation to show that the question is ist Dependency theory saw the prolif- silly and deserves the many silly an- eration of small firms-particularly swers it has been getting. As Portes in commerce and services-as a and Castells put it, "The informal consequence of the economy is a common-sense no- pathological control of capitalism by the great tion whose moving boundaries powers, especially the US; accord- cannot be captured by a strict defi- ing to the dependistas,economic nition without closing the debate growth in the periphery made for prematurely" (p. 11) the repatriation of profits to the Conceptual clarity is not every- center, leaving the economy of the thing. This "notion" has thrived periphery undercapitalized and on its "moving boundaries"; gener- organizationally stunted. To the tra- ated a vast literature, much of it po- and neo-Marxists, the "in- lemic; constituted the banner of ditional formal" economy was a symptom policy proposals; and launched the of the diseased economy. More political career of economist Her- generally they saw the contrast be- nando DeSoto, whose "otro sendero" "formal" and "informal" as proposes to lead Peru from what tween one aspect of the inherently un- he characterizes as its current state development of capitalism: of mercantilist regulation to Adam the privilege of the few, and that even of "informal" Smith capitalism. most Kenyans were making a living the entrepreneurship in a variety of small unregistered enterprises merely contributed to firms and individual hustles. Chris- super-exploitation by large firms at tening this uncharted world of eco- the top of the system. Lisa R. Peattieis ProfessorEmeritus nomic activity the "informal sector" ILO's formulation made a and senior lecturer in the Department of gave ILO analysts a way to talk whole new set of economic activi- Urban Studies and Planning,Massa- about it, even if they in fact knew ties a respectable topic for study. chusetts Institute of Technology. She is very little about what was actually The first empirical research to ap- the author ofPlanning: Rethinking going on. pear was a group of studies attempt- Ciudad Guayana (The University of Before ILO did its re-naming, ing to measure the informal sector Michigan Press, 1987). the economic activities so chris- statistically and to develop tables

32 Hemisphere *Fall 1990 M

showing its contribution to employ- a concept lumping together house- of the role of cocaine in the econ- ment and production. It soon be- maids and low-paid factory work- omy of Bolivia, how neoconserva- came clear, however, that there ers, or an unlicensed vendor of tive economic strategy in Great were problems in counting activ- shoelaces and a drug dealer with a Britain leads to "informalization," ities that by definition were un- fleet of planes and a senator in his and the dynamics of small firms in registered and that fell within a pocket, could not make much Italy and Spain. Clearly there is no poorly defined category to boot. sense. Nevertheless, I told myself, such thing as "the informal sector," The quantitative approach soon there is a world out there that gave but rather a great variety of infor- gave way to qualitative studies of rise to this idea; let us collect its mal sectors: economic activities out- particular industries or clusters of stories and try to make some sense side the officially sponsored or firms, often focusing on the rela- of them. That is just what the officially regulated spheres. tionship between formal and in- editors of The InformalEconomy The diversity of informal sectors formal activities. At this point the have tried to do. can extend even to a single locality. identification of the "informal" Alex Stepick's chapter on "Miami's with underdevelopment began to Two Informal Sectors" shows how give way. The discovery of exploita- two ethnic enclaves have developed tive relationships between large along sharply different lines. The firms and their informal subcon- resourceful (and US-government tractors in the Third World en- supported) Cuban refugees have countered a growing literature on produced a prosperous small- "informalization" as a way of eco- business sector tied to the larger nomic restructuring in the US and economy. Meanwhile the Haitians, Europe. Meanwhile the lingering excluded from good jobs by racial suspicion that there might be some and ethnic prejudice and from US development potential among the government support by their il- Third World's small entrepreneurs legal status (and prejudice), have met the discovery of a thriving learned to survive at the bottom of pattern of small-firm "flexible spe- the system through self-employ- cialization" in the Red Belt of Italy. ment and casual labor So, we have a fuzzy concept, a The nature of the informal diversity of phenomena to which it economy thus depends on the spe- might apply, and significant intel- cific context. According to T G. lectual interest. Portes, Castells, McGee and his colleagues, "The and Benton realize the thing to do mix of international, national, and is to plunge into the phenomenal microlevel processes is somewhat world to which the various "infor- different in every case" (p. 265) mal sector" arguments refer, rather The boundaries shift with the reg- than haggle over definitions or ar- ulatory activity of the state. As Por- gue a theory of the poorly defined. Comparing Cases tes and his co-editors write, "What Time enough to make sense of it The 15 case studies that make up is informal and perhaps persecuted all later the collection cover an extraordi- in one setting may be perfectly Let me mention that in 1973, nary range. Geographically they in- legal in another; the same activity preparing to go to Bogota with clude Malaysia, Colombia, Italy, may shift its relative location across some Ford Foundation money to Spain, Great Britain, and the US. the formal-informal cleavage many do an exploratory study of the in- Informal activities in the capitalist times; and, finally, the very notion formal sector, I wrote a memoran- economies of Miami, Madrid, and of informality may become irrel- dum to myself called "All That New York can be compared to in- evant in those cases in which state Funny Stuff." In that memoran- formal earnings and outlays in the regulation of economic relations is dum I promised to remember that Soviet Union. There are accounts nil" (p. 298) Juan Carlos Fortuna

Hemisphere * Fall 1990 33 i Review Forum

and Suzana Prates observe that nomic structures. Politics fails to suggest that "the task is how to the activity of the state, in turn, take total command, even in the redefine the struggle for equality reflects shifts in the international socialist world, but on the other in terms other than wage levels, economic order, the "level of devel- hand, nowhere is the economy in- working hours, and benefits at- opment and the benefits achieved dependent of politics. For instance, tached to conventional employ- in the political arena by the work- tightly intertwined with politics and ment. A new Social Contract in ing class" (p. 81), and social divi- the state is the thoroughly illegal which governments would guar- sions and social prejudices. drug industry. antee minimum living standards In the Soviet case, Gregory We have learned to ask: what and security to people and not as Grossman sees the informal sector ought the state to do? What should workers, would do away with the as generated by factors such as the be its policy toward, for example, most socially wrenching conse- ubiquitous presence of socialist "informal" firms? But the compari- quences of decentralization and property broadly regarded as "up son in this volume between the informality" (p. 310) for grabs," the prohibition of most situations in Spain and in the When I was doing my explo- productive activity on private ac- Italian Red Belt suggests another ration of informal activities in count, and the ineffectiveness of sort of question: what are the inter- Bogota, I saw people struggling formal mechanisms. Grossman ests of the state under specific con- with these issues in the context of writes that the "Soviet informal sec- ditions, and what is the state likely their daily work, as entrepreneurs, tor is not so much the fringe of to do in various situations? Will not workers, bureaucrats, and political the formal economy as a complex the centralizing state necessarily organizers. Some informal firms intertwinement with it that is at tend to ally itself with large cor- had been integrated into the old- once symbiotic and parasitic" porate entities and foreign inves- line unions and parties; they were (p. 152) Elsewhere, informaliza- tors? In this real-world economics thoroughly conservative small tion is seen as an employer strategy the national state is another actor businessmen. Under the organiz- for reducing wages in an economy to be observed and understood. ing strategy of the "mass line," thou- of scarcity. Regarding the Italian Moreover, there is ample sands of street vendors marched "Red Belt," Vittorio Capecchi em- material for discussions of labor against regulations intended to re- phasizes the development of an strategy. It is not just that "infor- strict their access to the major thor- entrepreneurial culture and informalization" so frequently occurs as oughfares. I remember especially mal economy of growth within a the consequence of employer at- my discussion with a member of uniquely supportive political tempts to cut wages and shift re- the Confederaci6nSindical de Trabaja- climate, with communist local sponsibility for social welfare to the dores Colombianos (CSTC) on the governments providing technical worker family. There are also wider matter of the "informals." He said education and other services. consequences for class structure. that he personally did not think of According to Bryan Roberts, '"The them as "lumpen"; indeed, CSTC New Categories, New Strategies diverse jobs held by household was sponsoring a union that would members also mean that Guada- join workers in large commercial Confronting these diverse and lajara's low-income population is enterprises with street vendors. Of fascinating phenomena, it seems not clearly differentiated along course, he asserted, the "workers" obvious that the definitions and dis- class lines. A person's job posi- are the spinal column of the Revo- cussions of "the" informal sector tion is unlikely to remain constant lution; the "informals" can simply miss the mark. The issue, rather, is during his or her working life. make a contribution. Yet he paused the emergence of a kind of real- Life history and life cycle, rather for a moment and said. "But you world economics. Instead of "the than class or formal and informal know, they are so much more radi- economy" there are institutions. employment, are thus the differ- cal. In a system like this, as soon as Instead of "industries" and "sec- entiating factors within Guada- someone gets a regular job, they tors" there are entrepreneurs and lajara's low-income population" become so conservative. " firms. Instead of "labor" and "labor (p.54) In studies of the "informal markets" there are employers and In such an economy, should economy" we are finding not only workers with particular purposes labor's strategy be to fight against real-world economics but also real- and characteristics, all in intricate "informalization" and to extend world politics with all its ambi- interaction. The household ap- regulation and social benefits to guities and unpredictabilities. The pears not as merely responding to those now outside the formal sys- study of real-world institutions, economic conditions, but as coor- tem? Or should labor recognize, as ever fuzzy and fascinating, will in dinating and modulating economic the editors suggest, that informali- the end serve as a better grounding activities. Social roles constituted zation is here to stay and that the for action than the deceptive clari- by gender, age, ethnicity, citizen- neo-Marxist image of proletar- ty of economic modeling and aca- ship, and race get built into eco- ianization is an illusion? They also demic political theorizing. .

34 Hemisphere Fall 1990 undercut US interests and caused Cuban migration as fundamentally Strategic Choices great suffering among Cubans. Mas- responding to political events that With Open Arms: Cuban sud writes that US anticommunism are largely dictated by external Migration to the United States exaggerated and distorted the na- political forces ignores the motives by Felix Roberto Massud-Piloto. ture of the Cuban revolution and of the refugees themselves. He Rowman and Littlefield, 1988. caused US policymakers to over- does not address variation in the 168 pp. $28.95. react. This overreaction, he argues, impact of US migration policy on damaged US interests by forcing classes, ethnic groups, and political the revolutionaries to align with sectors in Cuba. Neither does he F6lix Roberto Massud-Piloto has the USSR, as well as by leading to address what the Cuban state has written a compelling and unset- the exodus of Cuba's opposition done to mediate these pressures tling history of the politics of US elites. and how it has failed or succeeded. immigration policies towards Cuba, The third theme of the book is Along the same lines, Massud does Haiti, and Central America. He ex- the unintended domestic political not analyze how economic contra- plores the interplay of ideology consequences of US immigration dictions in Cuban socialism in- and geopolitics in the making of policies. Massud finds that the fluence migration choices. US immigration policies, and how "open arms" policy towards Cubans Nonetheless, Massud's contri- that interplay unfolds in terms of and the restrictive policy towards bution is significant. His provoca- the naked pursuit of power and in- Haitians have exacerbated ethnic tive analysis could serve as a spark terests by the US and, to a lesser and racial tensions in South Flori- for additional research on US im- extent, by a reactive Cuba. da, as black leaders and Haitian mi- migration policy, as well as on US- With Open Arms emphasizes grant leaders in the US see racism Cuban relations in general. three themes. The main theme is behind the divergent treatment of that US ideological and strategic predominantly white Cuban and Gast6n A. Ferndndez considerations, rather than human- black Haitian refugees. St. Olaf College itarian objectives, explain its "open As for policy recommendations, arms" immigration policies towards the author argues that Cuba and Cubans and restrictive policies to- the US share an interest in non- wards Haitians and Central Ameri- ideological bilateral immigration cans. Thus, Massud claims that US agreements. According to Massud, immigration policies towards Cuba Cuba needs a permanent outlet for Making Policy are linked to a strategy of under- political and labor migration. By cutting the island's communist the same token, the US needs to Latin America in the regime by encouraging population avoid the erratic mass migrations International Political System flight from a communist country to of the past, which exacerbate do- by G. Pope Atkins. Boulder, San Fran- a "free" country, thereby draining mestic ethnic and racial conflicts. cisco, and London. Westview Press, it of vital human resources (such as Massud proposes that the US imple- 1989. 421 pp. Paperback. $21 95. physicians, teachers, and techni- ment hemispheric migration policy cians) By way of contrast, the au- that will ease regional foreign- Foremost among this volume's thor emphasizes that restrictive policy tensions. Furthermore, he many strengths is its framework for immigration policies towards contends that it is possible and analyzing Latin America's foreign Haitians and Central Americans essential for the US to adopt a "sin- policy. In employing a systems per- are due to a different strategic as- gle, non-ideological and humani- spective, the book comprehensively sessment. This assessment holds tarian standard for guaranteeing examines the actors, influences, that an "open arms" policy would refugee status" (p. 131) decisionmaking processes, policies, either undercut friendly govern- Despite its provocative insights, and relationships that shape the ments or not significantly contrib- With Open Arms leaves some key is- role of the region in international ute to attaining US objectives in sues unresolved. For example, is affairs. Haiti and Central America. Im- the US state as monolithic in its ap- To his credit, G. Pope Atkins migration policy thus is subsumed proach to immigration policy as wisely limits obtrusive systems ter- under the ideological and strategic the analysis suggests? The reader is minology and esoteric debate, objectives of containment of com- left wondering about possible con- while refraining from deterministic munism and seemingly has no inde- tradictions within the US state and or teleological reasoning. Atkins pendent status as an issue in US how these affect immigration uses the systems approach to iden- politics. policies. The principal weakness, tify and explain tendencies-rather The second theme is that the however, is Massud's seeming ac- than allegedly "inevitable" system- anticommunist ideology behind ceptance of the ideological frame- generated behavior and events-in US immigration policy has actually work he criticizes. His portrayal of the region.

Hemisphere * Fall 1990 35 j) Review Forum

The volume's examination of Revolutionary Mexico ignite long-standing grievances the actors who influence Latin that LaFrance does not systemati- America's role in international af- The Mexican Revolution cally explore. Thus the author says fairs includes hemispheric and non- in Puebla, 1908-1913: The too little about changing patterns hemispheric states, along with Maderista Movement and the of land tenure and rural social rela- nonstate actors. Its analysis of Latin tions Failure of Liberal Reform in Puebla during the Porfi- American states is particularly valu- riato, which may have contributed by David LaFrance. Wilmington: able in showing that foreign policy- to the outbreak of unprecedented making in the US is vastly different Scholarly Resources Imprint, 1989. 288 pp. $35.00. rural violence in the state. Nor from that process in other coun- does LaFrance say enough about tries. In this respect, the book workers in Puebla's growing in- makes the formation of Latin The Mexican revolution has been dustrial sector. American foreign policies much the subject of regional analyses One fundamental weakness of less enigmatic to readers who are that have explored variations in the the book is the author's failure to accustomed to analyzing interna- content and objectives of leaders place the case of Puebla within the tional politics from a US perspec- and participants. David LaFrance's context of the growing literature tive. book outlines several develop- on the Mexican revolution, par- Due to their limited resources ments in narrative form: the evolu- ticularly the more analytical in the arena of international relation of the Maderistaanti-reelection studies. For example, LaFrance tions, Latin American states have movement in the state of Puebla in could have benefited from a discus- traditionally favored using interna- 1909 and 1910; the local revolution- sion of the conceptual perspectives tional organizations as foreign- ary movement that contributed to presented by such authors as John policy instruments. In addressing the fall of Porfirio Diaz in 1911; the Tutino and Arturo Warman to ex- these organizations, Atkins exam- local-level failure of Madero's pro- plain the origins of Puebla's rural ines various attempts at Latin Amer- gram of liberal democracy and movement. Finally, he neither re- ican integration and association, limited moderate reforms; and the lates the findings of this study to ranging from the 19th-century collapse of the Maderistamovement the general literature on the movements for Spanish-American in 1913. LaFrance presents the Mexican revolution, nor says much union to contemporary arrange- names, dates, and some back- about the literature on the revolu- ments for economic cooperation, ground information on the prin- tion in Puebla. such as the Latin American Free cipal actors in Puebla politics The book's introduction is ex- Trade Association, the Latin between 1909 and 1913. The study tremely disappointing. The audi- American Association for Integra- is well documented with sources ence to which the book is directed tion, the Special Latin American from regional and national ar- probably knows enough about Mex- Coordinating Commission, and the chives. ican history so that LaFrance did Latin American Economic System. The book summarizes the not have to present a brief over- He also includes chapters on the course of events in Puebla in a view of its trajectory since the inter-American system and Latin chaotic four-year period, but the period before the Spanish con- American involvement in global reader may be left unsatisfied. La- quest. Yet the book would have and extraregional arrangements, France documents yet does not ade- benefited more from a longer dis- such as the UN, commodity agree- quately explain the nature of the cussion of the revolution's origins, ments, and the Nonaligned Move- revolutionary movement. He dis- the literature on the revolution, ment. cusses the peasantry, the lower and the social conditions in Puebla Perhaps the most valuable class, radicals, and factory workers prior to the revolution. chapter is the conclusion, in which who contributed to Diaz's removal The Mexican Revolution in Puebla Atkins reviews some of the major from power. Nonetheless, he has lit- is a sound narrative political his- theories of Latin American in- tle concrete to say about the ori- tory. What it lacks is a significant ternational relations. His discus- gins of these groups and their analytical and conceptual frame- sion of realism, idealism, Marxism, objectives. For example, the suc- work. In that light, the book liberal developmentalism, and vari- cessful revolutionary movement of should be viewed as a preliminary ous formulations of dependency 1911 was basically a rural insurrec- study that sets up future research theory, as well as of the policy im- tion involving the peasantry, either on regional variation within Puebla plications of each perspective, is a landless or landed. LaFrance notes concerning the social origins and fitting capstone for this excellent several short-term factors that may social content of the revolutionary survey. have contributed to the peasant in- movement. surrection, such as crop failure and MartinJ.Collo high agricultural prices. These fac- RobertJackson Widener University tors, however, served merely to University of Miami

36 Hemisphere • Fall 1990 New from University Presses of Florida a in the 1850s ough the Lens of arles DeForest Fredricks U.S. Policy in Central America obert M. Levine The Endless Debate Previously unpublished, these Dario Moreno photographs document a "An excellent analysis of the evolution of U.S. Central turning point in Cuban life, American policies under the Carter and Reagan admin- as the island was on the istrations that exposes the roles played by competing verge of social, economic, strategic visions and bureaucratic interest groups in shap- and technological moder- ing two of the most dramatic failures in recent U.S. for- nity... .This intriguing eign policy."-Andrew A. Reding, World Policy Institute little album will delight Florida International University Press both students of Latin Cloth $26.95 Paper $14.95 American history and pho- ruene e lanmaa, navana. tography buffs."-Booklist University of South Florida Press Central America and the Middle East Jamaican Sayings Cloth $22.95 The Internationalization of the Crises With Notes on Folklore, Edited by DamidnJ. Ferndndez Aesthetics, & Social Control 'This valuable contribution addresses a neglected dimen- G. Llewellyn Watson sion of the current crisis and goes far to explain why Central American conflict has been so hard to resolve." "A rich and compelling collection that will make a signif- -G. Pope Atkins, U.S. Naval Academy icant contribution to the study of Jamaican/West Indian/ Florida International University Press black folklore and culture."-Daryl Cumber Dance, Cloth $26.95 Paper $15.95 Virginia Commonwealth University Florida A & M University Press eanas January 272 pp. 6 X 9 Cloth $29.95 The Libro de las profecias 4 4B~ of Christopher Columbus a 4 Conchtown USA An en face editon Bahamian Fisherfolk in Riviera Beach, Florida Translationand commentary by Photographs and Text by Charles C. Foster Delno C. West and August Kling *"' Folk Songs and Tales collected by Veronica Huss "Perhaps the most important "The combination of folklore, oral history, and photo- single volume on Columbus ever graphs makes this a work of interest to general readers and published in English... . The scholars alike."-Stetson Kennedy uthors' classification of Columbus's Florida Atlantic University Press sty as 'evangelical' will be contro- April 160 pp. 8 1/2 X 11 Paper $24.95 ial, but is exactly right. He was as nopolitan in his piety as in his Amphibians and Reptiles -ography."-Leonard Sweet, dent, Union Theological Seminary of the West Indies University of Florida Press Descriptions, Distributions, & Natural History May 288 pp. 8 1/2 x 11 Cloth $49.95 Albert Schwartz and Robert W. Henderson " "A definitive synopsis of West Indian herpetofauna. Through your local full-service bookseller, or direct from: -George R. Zug, National Museum of Natural History, University Presses of Florida, 15 N.W. 15th St., Gainesville, Smithsonian Institution Florida 32611. 904-392-1351. Include $3.00 (UPS) or $2.00 University of Florida Press (bookpost) shipping for the first book, $.50 for each additional May 740 pp. 7 X 10 Cloth $75.00 book. Florida residents add 6% sales tax to book price.

Hemisphere * Fall 1990 37 Labor Migration Policy

by Marian Goslinga

overnment policy toward foreign workers-legal as well as illegal-has been much in the news lately. It is G fascinating to see how different countries deal with the issue. Cases such as the Haitians in the Dominican Republic, the Japanese in Brazil, the Mexicans and Central Americans in the US, the Italians in Costa Rica, and the Colombians in Venezuela have posed many of the same dilemmas to the host governments and continue to be a focus of controversy. The literature listed below deals with government policy, although frequently in a roundabout way. A comprehensive bibliography does not exist, and information must be gathered from a variety of sources.

Acuerdo para reglamentar la Braceros haitianos en la Republica Islands.Jannette O. Domingo. contrataci6n de trabajadores no Dominicana. Franc Baez Evertsz. 2d Review of Black PoliticalEconomy, agricolas migratorios mexicanos. ed. Instituto Dominicano de Inves- v. 18 (Summer 1989), p. 37. EstudiosFronterizos,v. 5, no. 12-13 tigaciones Sociales, 1986. 354 p. (January-August 1987), p. 167-74. Enforcing Employer Sanctions: [About current US labor policy El Canal de Panama y los traba- Challenges and Strategies. Michael towards Mexican workers.] jadores antillanos: Panama 1920, Fix, Paul T. Hill.Washington, DC: cronologia de una lucha. Gerardo Urban Institute, 1990. Alien Labor: A Bibliography. Mary Maloney. Panama: Ediciones For- Vance. Monticello, Ill.: Vance Bibli- mato Diecisdis, 1989. 54 p. [This Family Unification, Employer ographies, 1987. 38 p. work proves that the issue of for- Sanctions, and Anti-Discrimination eign workers is not merely a post- under IRCA. Hearing before the Amendments to the Immigration World War II phenomenon.] Subcommittee Reform and Control Act of 1986. on Immigration, Refugees, and International Law of Hearing before the Subcommittee Do outro lado do Atlantico: um the Committee on the Judiciary, on Immigration, Refugees, and In- seculo de imigraqao italiana no House of Representatives, August ternational Law of the Committee Brasil. Angelo Trento; Mariarosario 23, 1988. Washington, DC, 1989. on the Judiciary House of Repre- Fabris,Luiz Eduardo de Lima 150 p. sentatives, November 9, 1989. Branddo, trans. Sao Paulo, Brazil: Washington, DC, 1990. 351 p. Nobel, 1989. [About Italian work- From New [With the IRCA and its subsequent ers on Brazilian coffee plantations.] York to Jamaica: Call amendments, the US has taken a for Apple Pickers. Harold Faber. step towards regulating the supply Domestic Violence, Refugee New York Times, v. 136 (September of foreign labor.] Flows, and International Tension: 6, 1987), p. 42. The Case of El Salvador. Glenn P. The Benefits of Immigrants to Hastedt, Kay M. Knickrehm.Jour- Fuerza de trabajo inmigrante japo- Canada: Evidence on Tax and nal of Refugee Studies, v. 1, no. 3/4 nesa y su desarrollo en el Peru: una Public Services. Ather H. Akbari. (1988), p. 260-76. exploraci6n bibliografica. Amelia CanadianPublic Policy, v. 15 Morimoto. La Molina, Peru: Taller (December 1989), p. 424-35. The Effect of Maquiladora Employ- de Estudios Andinos, Departamen- ment on the Monthly Flow of Mexi- to de Ciencias Humanas, Univer- Big Sugar: Seasons in the Cane can Undocumented Immigration to sidad Nacional Agraria, 1979. 85 p. Fields of Florida. Alec Wilkinson. the United States. Alberto Davila, [An older, but still relevant, work Knopf, 1989. 263 p. $18.95. Rogelio Saenz. InternationalMigra- dealing with the literature on Jap- tion Review, v. 24 (Spring 1990), anese labor in Peru.] p. 96-107. Marian Goslinga is the Latin The Global City* New York, American and Caribbean librarianat Employment, Income and Eco- London, Tokyo. Saskia Sassen. FloridaInternational University. nomic Identity in the U.S. Virgin Princeton University Press, 1991.

38 Hemisphere * Fall 1990 A Guest Worker Program for Immigrant America: A Portrait. The Informal Economy: Studies in Mexicans-and Americans. Gary Alejandro Portes, Ruben G. Rumbaut. Advanced and Less Developed G. Jacobs. The Wall StreetJournal University of California Press, Countries. Alejandro Portes,Manuel (March 24, 1989). 1990. Castells, Lauren A. Benton, eds. The Johns Hopkins University Press, Harvest of Confusion: Immigration Immigration and Illegal Aliens: 1989. 3 6 0 p. $39.50; $16.95. Reform and California Agriculture. Burden or Blessing? Mark A. Siegel, Philip L. Martin. InternationalMigra- et al. Wylie, Tex.: Information Plus, In Search of a Better Life: Perspec- tion Review, v. 24 (Spring 1990), 1989. 112 p. [Includes data from tives on Migration from the Carib- p. 69-95. [The author claims recent US government and private bean. Ransford W. Palmer, ed. immigration reforms have not resources.] Praeger, 1990. solved the debate over agriculture's need for alien workers in the US.] The Immigration Reform and Control Act of 1986: A Preliminary In the Privacy of Our Home: La huelga de los titiles, 1887-1889: Assessment. Wilbur A. Finch, Jr. Foreign Domestic Workers as Solu- un capitulo de nuestra historia so- Social Service Review, v. 64 (June tion to the Crisis in the Domestic cial. OscarR. Aguilar Bulgarelli.San 1990), p. 244-60. Sphere in Canada. SedefArat-koc. Jose: Editorial Universidad Estatal Studies in PoliticalEconomy (Spring a Distancia, 1989. 153 p. [About The Immigration Reform and 1989), p. 33-58. Italian railroad workers in Costa Control Act of 1986 Oversight. Rica.] Hearings before the Subcommittee Labor Migration in Jamaica: White on Immigration, Refugees, and In- Capital and Black Labor, 1850- Identificando trabajadores legales ternational Law of the Committee 1930. Elizabeth McLean Petras. West- mexicanos en la frontera de Es- on the Judiciary, House of Repre- view Press, 1988. 297 p. [About tados Unidos: percepciones y sentatives, May 10 and 17, 1989. Jamaican workers in Panama and decepciones en el anilisis de la Washington, DC, 1990, 661 p. Cuba.] migraci6n fronteriza. Ellwyn R. Stoddard; The Immigration Reform and Oscar Garcia Sinez, Labour Legislation in Canada: Guadalupe Ortega, trans. Estudios Control Act of 1986: Employer A Bibliography. MarianDworaczek. Fronterizos,v. 5, no. 12-13 (January- Liability in the Employment of Un- Monticello, Ill.: Vance Bibliogra- August 1985), p. 95-111. documented Workers. Robert K. phies, 1989. 150 p. $25.00. [In- Robinson, Diana L. Gilbertson. cludes French citations.] The "Illegal Alien" Policy Problem. Labor Law Journal,v. 38 (October Jose R. Hinojosa. BorderlandsJour- 1987), p. 658-64. nal, v. 10, no. 1 (Fall 1986), p. 173- Latin American Labor Studies: 89. The Impact of the Mariel Boatlift An Interim Bibliography of Non- on the Miami Labor Market. David English Publications. John D. Illegal Aliens, Employment Discrim- Card. Industrialand Labor Relations French. Center for Labor Research ination, and the 1986 Immigration Review, v. 43 (January 1990), p. 245- and Studies, Florida International Reform and Control Act. Charles 57. University, 1989. 59 p. [The Center E. Mitchell. Labor Law Journal v. 40 for Labor Research and Studies (March 1989), p. 177-82. Impacts of the 1986 US Immigra- and the Latin American and tion Law on Emigration from Rural Caribbean Center at Florida Inter- Illegal Aliens: Their Employment Mexican Sending Communities. national University also publish and Employers. Barry R. Chiswick. Wayne A. Cornelius. Populationand biannually the Latin American News, 1988. [Based on data from Immi- Development Review, v. 15 (Decem- edited by John D. French, which is gration and Naturalization Services ber 1989), p. 689-705. [Based on available for $5.00 (individual sub- apprehension reports on illegal data gathered through 946 sample scription) and $15.00 (institutional aliens in Chicago.] survey interviews.] subscription).]

Hemisphere * Fall 1990 39 Publications Update

Latin American Labor Studies: A Migration and Development in Sugar and Modern Slavery: A Tale Bibliography of English-Language the Caribbean. Robert Pastor, ed. of Two Countries. Roger Plant.Zed Publications through 1989.John D. Westview Press, 1988. Books, 1987. 177 p. $37.50; $11.50. French. Center for Labor Research [About Haitian workers in the and Studies, Florida International The Mobility of Labor and Capital: Dominican Republic.] University, 1989. 27 p. International Investment and Labor Flows. Saskia Sassen. Cam- A Time Bomb Ticking: Canadian The Long-Term Consequences of a bridge University Press, 1988. Immigration in Crisis. Toronto, Temporary Worker Program: The Ont.: Mackenzie Institute for the U.S. Bracero Experience. Douglas Study of Terrorism, Revolution and S. Massey, Zai Liang. Population La moderna esclavitud: los in- Re- Propaganda, 1989. 39 p. $4.50. [A search and Policy Review, v. 8 documentados en Venezuela. (Sum- critique of current policy.] mer 1989), p. 199-226. [Based on Alcides Gomez J., Luz MarinaDiaz M. an analysis of the "tariff bracero" Bogota: Editorial La Oveja Negra, 3 4 8 U.S. Agriculture and Foreign program allowing Mexicans to 1983. p. [About Colombian Workers: An Annotated enter the US as guest workers, labor in Venezuela.] Bibliog- 1942-64.] raphy. Robert D. Emerson, Anita L. Battiste. U.S. Department of Agri- New Guidelines on Discretionary culture, 1988. Maquiladoras: A Bibliography. Powers. Refuge, v. 9 (May 1990), PriscillaJ.Files. Monticello, p. 15-17. [Issued by the Employ- Ill.: Unauthorized Migration: An Eco- Vance Bibliographies, ment and Immigration 1990. 8 p. Ministry of nomic Development Response. Canada on the subject of reviewing Report of the Commission for the refugee claims.] The Maya of Florida. Allan Burns. Study of International Migration Migration World, v. 17, no. 3/4, and Cooperative Economic De- p. 20-26. [Economic and social Opening and Closing the Doors: velopment, 1990. 149 p. [In its data about the Kanjobal Maya who Evaluating Immigration Reform Working Papers, the Commission have emigrated from Guatemala to and Control. FrankD. Bean, Georges presents the research of distin- Indiantown, Florida.] Vernez, Charles B. Keely. University guished US and foreign inves- Press of America, 1989. 138 p. tigators dealing with migration, Mexican Immigrant Workers in $23.75. [Emphasis on the 1986 Im- labor, and other related subjects. the Southwest: The 1920's and the migration Reform and Control For a complete list of titles in this 1980's. Elaine C. Lacy. Review of Act.] series, contact the Commission at Latin American Studies, v. 1, no. 2 1111 18th Street, NW, Suite 800, (1988), p. 103-20. Out of the Spotlight and into the Washington, DC 20036. Telephone Shadows.Jennifer L. Gordon. (202) 254-4954; FAX (202) 254- 4965.] Mexican Labor and World War II: Migration World, v. 17, no. 5 (1989), Braceros in the Pacific Noithwest, p. 10-17. [About the impact of the 1942-1947. Erasmo Gamboa. Univer- 1986 Immigration Reform and Con- Undocumented Immigration in the sity of Texas Press, 1990. 178 p. trol Act on employers and on the United States: Some Thoughts undocumented.] about Research Challenges, Im- and Recent Policy Initiatives. Las migraciones laborales en Para- pacts Demetrios G. Papademetriou. Studi guay: diagn6stico demografico. Sending $7 Billion Home to Emigrazione Organization of American States, Madre. Patrice Duggan,Joel Mill- (Rome), v. 29 (Septem- ber-December 1988), p. 591-617. 1986. 62 p. man. Forbes, v. 145 (March 19, 1990), p. 139. Undocumented Workers and Las migraciones laborales colombo- Regional Differences in Apparel venezolanas. GabrielBidegain Should Foreign Workers Be Labor Markets. Carolyn Sherwood- Greising,ed. Caracas: Instituto Welcomed? Mitsunobu Sugiyama. Call. FederalReserve Bank of San Fran- Latinoamericano de Investiga- Japan Quarterly,v. 35 (July-Septem- cisco Economic Review, Winter 1989, ciones Sociales, 1987. 175 p. ber 1988), p. 260-65. p. 53-63.

Migrant Workers and the Trans- Situacion del mercado laboral en When Borders Don't Divide: Labor formation of Western Societies. Jap6n en los uiltimos anios. Lourdes Migration and Refugee Movements Stephen Castles. Center for Interna- Franco Cobos. Economia y Desarrollo, in the Americas. Patricia tional Studies, Pessar,ed. Cornell University, no. 103 (March-April 1988), p. 160- New York: Center for Migration 1989. 119 p. 64. Studies, 1988.

40 Hemisphere 'Fall 1990

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