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AMERICAS QUARTERLY China and Latin America China’s emergence as an economic superpower poses special challenges (and opportunities) for the Americas. How do Beijing’s development, trade and geopolitical goals intersect with regional needs and priorities? How should the U.S. react? Our special section starts on page 50. 6 Americas Quarterly WINTER 2012 AMERICASQUARTERLY.ORG AQ0112_TOC_LAY12.indd 6 1/10/12 11:44 AM TABLE OF CONTENTS WINTER 2012 VOLUME 6, NUMBER 1 Special Section 52 Time for a Strategic Reset ELIZABETH ECONOMY Unless the leadership in Beijing changes course, it faces increasing isolation. 60 China’s Global Rise LOWELL DITTMER In the “new” developing world, China looks for trade partners—not revolutionary allies. 67 Force Projection GABRIEL MARCELLA What is the Chinese military doing in Latin America? 70 charticle: The Fast Ramp-Up RYAN BERGER The economics of the China–Latin America relationship. 74 Much in Common ZHANG MINGDE A senior Shanghai scholar says China poses no threat to the region. 80 Memo to Washington ERIC FARNSWORTH U.S. complacency toward China’s economic activities in the hemisphere is shortsighted. 88 photo essay: East Meets South KEITH DANNEMILLER Mexicans and Chinese learn, play and work together. 96 Competitor or Partner? OSVALDO ROSALES The impact of Chinese exports on four countries in the region. 104 Exporting Corruption ARIEL ARMONY China’s informal business culture fi nds a too-familiar environment in Latin America. 108 Chinese (Un)offi cial Development Aid MARTIN VIEIRO Is China’s assistance to developing countries undermining development? 50 113 Ask The Experts To a new relationship: Chilean Does China represent an economic and political threat President Sebastián Piñera to the U.S. in the hemisphere? Connie Mack, Don (left) toasts his country’s Hanna, Luis Fleischman, and Minxin Pei respond. number one trade partner. PETAR KUJUNDZIC/GETTYPETAR AMERICASQUARTERLY.ORG WINTER 2012 Americas Quarterly 7 AQ0112_TOC_LAY12.indd 7 1/10/12 11:44 AM TABLE OF CONTENTS WINTER 2012 VOLUME 6, NUMBER 1 128 23 28 Departments 3 From the Editor 122 Tongue in Cheek The best of the region’s 28 11 Panorama Agri-tourism in political cartoons. Back to the Future Central America, Guadalajara’s MIKE MCDONALD book fair, South American Alpine 124 Policy Update The newly elected leaders Skiing Cup, good governance Luis Oganes on the importance of Guatemala and Nicaragua in Colombia, Ten Things To Do of foreign exchange reserves. are familiar. So are in Salvador, Brazil, and more. Gregory Elacqua on the the problems they face. impact of Chilean student 18 Hard Talk Will the protests. Ricardo Camargo U.S.–Colombia FTA benefi t Mendes on Brazil’s revived 34 Colombia? Kevin Gallagher protectionist agenda. Going Places? and Gabriel Duque debate. 128 Fresh Look Reviews BARBARA KOTSCHWAR 23 Innovators/Innovations Robert Funk on former Chilean Asia leads Latin America Colombian harpist Edmar President Ricardo Lagos’ new in infrastructure. Castañeda challenges musical conventions. Buscalibros memoir. Paulo Vieira da transforms Latin America’s Cunha on Albert Fishlow’s 44 online book market. Pivot Legal view of Brazil’s economic Media 1.5 campaigns for Vancouver’s transformation. Eric L. Olson SILVIO WAISBORD marginalized. Sebastián Acha reviews Denise Dresser’s New technology has expanded makes voting count in Paraguay. lament on Mexico’s failings. the media choices available 116 Dispatches from the 136 Just the Numbers to Latin Americans. But don’t Field: Quito The tragedy of You following me? The expect it to usher in a new era Colombian refugees in Ecuador. hemisphere’s twittering of citizen engagement. Stephanie Leutert reports. presidents and celebrities. in our The Economic and Political Dynamics of Social Inclusion: Social policy, representation, human next issue: rights, economic growth, and race. Judith Morrison on Afro-Latinos; José Manuel Salazar-Xirinachs on youth unemployment; Marcelo Suárez-Orozco on immigration and mobility; plus heroes of social inclusion. SCOTT LAUMANN; CARLOS JASSO/REUTERS; RYAN DORSETT 8 Americas Quarterly WINTER 2012 AMERICASQUARTERLY.ORG AQ0112_TOC_LAY12.indd 8 1/10/12 11:44 AM FRESH LOOK book reviews 128 Americas Quarterly WINTER 2012 AQ0112_FRESH_LAY12.indd 128 1/9/12 9:31 AM The Southern Tiger: Chile’s Fight for a Democratic and Prosperous Future Ricardo Lagos Palgrave Macmillan, 2012, Hardcover, 258 pages 129 The Southern Tiger: Chile’s Fight for a Democratic and Prosperous Future REVIEWED BY ROBERT L. FUNK by Ricardo Lagos icardo Lagos has been a central model were laid by the dictatorship, fi gure in creating the Chile we the Concertación opened up the econ- Rknow today—a prosperous de- omy, reinserted Chile into the inter- 131 mocracy and a model for much of the national community, instilled and region. Whether as an academic, an expanded basic social services in O novo Brasil: as activist in the struggle for democracy, areas such as health care, and ex- conquistas políticas, a minister of education (1990–1992) panded access to primary, secondary econômicas, sociais e and of public works (1994–1998), a and postsecondary education. By al- president (2000–2006), or once again, most any measure—GDP, household nas relações a major fi gure in the opposition, La- income, poverty, education, health, internacionais gos has been almost omnipresent in government spending, infrastructure, by Albert Fishlow the country’s major policy decisions. connectivity, international trade, or By any measure, he has had an ex- corruption—Chile has made great traordinary career in public service. progress in the last 20 years. In The Southern Tiger: Chile’s Fight Lagos’ recollection of the turbulent 133 for a Democratic and Prosperous Fu- past recounts episodes of cacerolazos ture—written with Foreign Policy (pot-banging demonstrations, mostly El país de uno: magazine managing editors Blake by the middle class), guanacos (water Refl exiones para Hounshell and Elizabeth Dickinson— cannon–bearing trucks used to break entender y cambiar a Lagos retraces some of those steps and up street protests), and fi ghts and di- refl ects on the impact of his policies visions among opposition parties as México both at the time and today. The for- they vied for frontrunner status in by Denise Dresser mer president makes it clear that he electoral battles. For a Chilean reader too views himself as a central player in 2012, a time when social move- in Chile’s democratic and economic ments have swept the country, the transition. Chile of yesterday seems very simi- 135 Two themes emerge in The Southern lar to the Chile of today. Tiger. The fi rst, now a cliché in studies But other longstanding debates FIRST LOOK of Chilean politics, is that of continu- would also resonate: the appropriate The best new books on ity and change; the second is Ricardo economic model for Chile; the need policy, economics and Lagos standing up to authority. for infrastructure; and how to over- business in the On the fi rst theme, Chile is a very come interest groups and other obsta- hemisphere. different country from the one that cles to improve the education system. Lagos’ coalition, the Concertación, in- In these areas and others, Lagos is herited from the regime of General quite candid about the unfi nished Augusto Pinochet in 1990. Although tasks at the end of his term in offi ce. the foundations of today’s economic He expresses frustration at the im- AMERICASQUARTERLY.ORG PORTRAIT OF RICARDO LAGOS BY SCOTT LAUMANN WINTER 2012 Americas Quarterly 129 AQ0112_FRESH_LAY12.indd 129 1/9/12 9:31 AM perfect Transantiago public transpor- continue to be active, or whose chil- ing social policy, democratizing the tation system, the inability to have dren are active, in the public sphere political system and modernizing the a bridge built to the island of Chi- (Lagos’ own son is a senator). economy and infrastructure were ac- loé, the lack of reform to a binomial The lack of renovation among po- complished amid tremendous politi- electoral system that offers some mi- litical (and other) elites stems from cal and ideological opposition. nority parties overrepresentation in longstanding cultural traditions, but At the same time, there is an un- congress, and the centralization of also from political institutions—prin- derlying story in The Southern Tiger FRESH LOOK FRESH Chile’s political system, among others. cipally, the political parties and the of Lagos’ own development. The de- For several of these, he seems to be electoral system—that do not en- scription of the economic debates of pointing the fi nger at his successor, courage the emergence of new ac- the 1960s and 1970s recall a time when Michelle Bachelet: “After I left offi ce tors. These institutions were barely the state still had a predominant role […] the project stalled.” touched during the Concertación’s in encouraging development. While Another sign of how little Chile’s time in offi ce, which, together with Lagos would later preside over one elitism has changed is in Lagos’ retell- the lack of new political leadership, of the world’s most neoliberal econo- ing of more personal episodes. Nam- are at the root of much of the discon- mies, it is not diffi cult to identify the ing colleagues and adversaries from tent in Chile today. origins of his enthusiasm for grand the 1960s onwards, for example, he The fact that public policy chal- infrastructure projects rooted in the mentions many people—from Her- lenges remain similar despite so old, developmentalist model. aldo Muñoz, the current head of the much progress does not mean—as With an income of roughly $15,000 UN Development Programme’s Bu- many young Chileans argue today— per capita, Chile is approaching mid- reau for Latin America and the Ca- that little has been accomplished. dle-income status.