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1341. Complementarity and Social Networks

Author:
Yann Bramoulle
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
I investigate complementarity games played on graphs, which model negative externalities embedded in structures of interaction. On the complete graph, the traditional economic analysis applies: the number of agents playing one strategy is proportional to its payoff. I show that, in general and contrary to coordination games, the structure crucially influences the equilibria. On an important class of graphs, called bipartite graphs, the equilibria do not depend on strategies' payoffs. On certain highly asymmetric graphs, an increase in the payoff of a strategy even decreases the number of agents playing this strategy. In most cases, equilibria do not maximize welfare.
Topic:
Economics and International Trade and Finance
Political Geography:
United States and Latin America

1342. Open Doors

Author:
Paul Masson, Michael Pomerleano, and Robert E Litan
Publication Date:
06-2001
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Foreign direct investment in financial firms in emerging markets surged in the 1990s, although not equally in all places. The main beneficiaries: Latin America and Central Europe, with Asia a distant third. This conference report summarizes findings on the impacts—mainly positive—of this significant inflow of funds and managerial and technical know-how, as well as recommendations for policies toward foreign direct investment (FDI) in the future. The main recommendation: countries with restrictions generally should relax them, even when their own financial systems are weak. At the same time, foreign entry gives rise to new policy challenges, supervisory and competitive, which emerging markets need to confront both unilaterally and with cooperation from source country governments.
Topic:
Emerging Markets, International Trade and Finance, and Third World
Political Geography:
Asia, Latin America, and Central Europe

1343. Report from Havana: Time for a Reality Check on U.S. Policy toward Cuba

Author:
Jonathan G. Clarke and William Ratliff
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Official U.S. and Cuban depictions of the effects of the U.S. embargo differ notably from Cuban economic reality. This report, based on the authors' recent visits to Havana and interviews with top Cuban officials, dissidents, and other private citizens, shows that the embargo is not responsible for Cuba's poor economic condition—as Havana claims—nor has it been effective at achieving Washington's goal of isolating the Cuban regime.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States, Cuba, Latin America, Caribbean, and Havana

1344. Rating Banks in Emerging Markets: What Credit Rating Agencies Should Learn From Financial Indicators

Author:
Liliana Rojas-Suarez
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
The rating agencies' and bank supervisors' records of prompt identification of banking problems in emerging markets has not been satisfactory. This paper suggests that such deficiencies could be explained by the use of financial indicators that, while appropriate for industrial countries, do not work in emerging markets. Among the conclusions, this paper shows that the most commonly used indicator of banking problems in industrial countries, the capital-to-asset ratio, has performed poorly as an indicator of banking problems in Latin America and East Asia. This is because of (a) severe deficiencies in the accounting and regulatory framework and (b) lack of liquid markets for bank shares, subordinated debt and other bank liabilities and assets needed to validate the “real” worth of a bank as opposed to its accounting value.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
East Asia and Latin America

1345. Observing the 2002 Mexico Elections

Author:
Marcela Szymanski
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
The Carter Center has a long history of engagement with Mexico with the shared goal of improving the electoral system in that country. In the early 1990s, the Center helped national observer groups to form and sent international observers to assist in domestic election monitoring. It also invited Mexicans to observe the U.S. elections in 1992. In 1994, the Center was among the first international observers to monitor elections in Mexico, and its observations helped shape electoral reforms that framed those and the 1997 elections, which the Center also observed.
Topic:
Democratization and Development
Political Geography:
Latin America and Mexico

1346. Observing Political Change in Venezuela: The Bolivarian Constitution and 2000 Elections

Author:
Laura Neuman and Jennifer McCoy
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Venezuela under President Hugo Chávez undertook a bold experiment to revamp its political system and address economic inequities and poverty. The country held seven votes in two years as voters chose Hugo Chávez to lead them in December 1998 and then supported his radical reform program, beginning with a new constitution. A Constitutional Assembly was elected in July 1999 to draft a new constitution, which voters approved in December 1999. Every elected position in the country was then presented to the voters again in a two-stage election in July and December 2000. While we do not believe that the election irregularities would have changed the 2000 presidential results, the significant politicization of the elections and organizational deficiencies contributed to a lack of confidence in the process and the nonpresidential results, thus leading us to characterize the July 2000 elections as flawed.
Topic:
Democratization and Development
Political Geography:
South America, Latin America, and Venezuela

1347. The Bush Administration and the Future of Transatlantic Relations

Author:
Peter Trubowitz
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
This paper, the first of a planned two-part analysis, examines the institutions of paramilitarism, death squads, and warlords in Latin America, with a focus on the case-studies of Mexico and Peru. It begins with an overview of the small comparative literature on paramilitary movements and death squads around the world, seeking to define and clarify the terminology. The literature on "warlordism" is then reviewed, and the similarities and distinctions between paramilitaries and warlords are considered. Lastly, I examine two case-studies that have not, as yet, received extended attention in the comparative literature: Mexico and Colombia. The paper concludes by summarizing the findings and charting a course for future investigations.
Topic:
International Relations, Foreign Policy, and Government
Political Geography:
United States, Colombia, Latin America, and Mexico

1348. Nongovernmental Terrorism in Latin America: Re-examining Old Assumptions

Author:
Andreas Feldmann and Maiju Perälä
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
For years nongovernmental terrorism in Latin America was considered to be an epiphenomenon of the Cold War, and consequently explained in terms of that war. The persistence of terrorism throughout the region in the 1990s not only has indicated that many of our assumptions concerning the causes of terrorism were misleading, but also has lead scholars to reexamine the phenomenon of nongovernmental political violence. This paper investigates the validity of a number of hypotheses recently explored in the literature by applying a pooled time series cross section regression analysis to data from seventeen Latin American countries between 1980 and 1995. Findings indicate that nongovernmental terrorist acts in Latin America are more likely to occur in countries characterized by widespread state human rights violations. Likewise, evidence is found that nongovernmental terrorism in the region tends to be more prevalent in countries characterized by electoral and associational liberties than by restrictive dictatorships. Association between economic performance or structural economic conditions and the incidence of terrorism is not substantiated by the findings.
Topic:
Cold War, Democratization, and Terrorism
Political Geography:
South America and Latin America

1349. Transforming Labor-Based Parties in Latin America: The Argentine Justicialista Party In Comparative Perspective

Author:
Steven Levitsky
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This article seeks to explain the success or failure of Latin American labor-based parties in adapting to the contemporary challenges of economic liberalization and working class decline. It focuses on party organization, and specifically, on informal and under-institutionalized organizational forms. The article's central claim is that under-institutionalized organizational structures may facilitate party adaptation in a context of environmental crisis. Thus, mass populist parties, which lack the bureaucratic constraints that tend to inhibit change in better institutionalized labor-based parties, may possess a distinctive advantage in the neoliberal period. Although these parties' deep roots in society provide them with relative electoral stability, other populist legacies, such as fluid internal structures, non-bureaucratic hierarchies, and centralized leaderships, yield a high degree of strategic flexibility. The article applies this argument to the case of the Argentine Justicialista Party (PJ), a mass populist party that adapted with striking success in the 1980s and 1990s. In the coalitional realm, the poorly institutionalized nature of the PJ's party-union linkage allowed reformers to easily dismantle traditional mechanisms of labor participation, which contributed to the PJ's rapid transformation from a labor-dominated party into a patronage-based party. In the programmatic realm, the PJ's non-bureaucratic hierarchy and under-institutionalized leadership bodies provided President Carlos Menem with substantial room for maneuver in carrying out a neoliberal strategy that, while at odds with Peronism's traditional program, was critical to the party's survival as a major political force.
Topic:
Government and Politics
Political Geography:
South America and Latin America

1350. Managing Security Challenges in Post-Conflict Peacebuilding

Author:
Sheila Coutts and Kelvin Ong
Publication Date:
06-2001
Content Type:
Working Paper
Institution:
International Peace Institute (IPI)
Abstract:
While a functioning security sector provides the cornerstone for stable and democratic post-conflict societies, the record of the international community in establishing this critical function is mixed. Despite repeatedly having to manage the immediate post-conflict situation in various peace operations in Europe, Africa, Asia and Latin America, the international community still fails to take the state of the local security sector adequately into account when planning its own intervention.
Topic:
Conflict Resolution, Security, Human Rights, International Law, International Organization, Migration, and United Nations
Political Geography:
Africa, Europe, Asia, and Latin America

1351. Aftermath: Women's Organizations In Postconflict El Salvador

Author:
Shelley Sperry
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
United States Agency for International Development
Abstract:
WOMEN'S ORGANIZATIONS proliferated during and after the civil war that ravaged El Salvador from 1979 through 1991. By war's end, more than a hundred different women's organizations existed in El Salvador, each generating local and regional projects and frequently working in the national political arena as well. Unlike women's movements in other Latin American nations, the women's movement in El Salvador has grown stronger in the post conflict period of emerging democracy. The two movements—democracy and women's rights—appear to be mutually supportive. The case of El Salvador suggests that helping women's groups establish autonomy and stability during, rather than following, a conflict may be crucial to ensuring future women's activism and a vital democratic civil society.
Topic:
Civil Society, Development, Gender Issues, and Politics
Political Geography:
Latin America, Central America, and El Salvador

1352. The Guatemalan Peace Process: The Accords and Their Accomplishments

Author:
Luis Pásara
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Kroc Institute for International Peace Studies, University of Notre Dame
Abstract:
Guatemala, one of the poorest countries in Latin America, suffered an internal armed conflict for 36 years. A long and difficult peace negotiation process ended in 1996 with the signing of the most comprehensive and ambitious peace accords in the history of peace agreements. Five years later, the accomplishments of the accords are limited. This article examines the social context in which the accords were negotiated and implemented. It also explores some of its accomplishments and shortcomings, and suggests the first lessons learned.
Topic:
Conflict Resolution, International Law, and Peace Studies
Political Geography:
Latin America and Central America

1353. Caribbean Tourism: Igniting the Engines of Sustainable Growth

Author:
Anthony T. Bryan
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
Tourism drives economic growth in ways that make it one of the best engines for job creation and development for poor countries that possess natural beauty and relevant infrastructure. The industry is highly labor intensive and encourages entrepreneurship. Under its ambit, property owners, restaurants, and local suppliers of goods and services, among others, develop the habits of risk taking without which no economy can realize its full potential. Tourism holds out the prospect of a better life for those stakeholders who make money from it. Not unlike trade, it improves an economy's competitiveness. Trade does so because it stimulates local suppliers to match the quality and variety of imported goods. Tourism does so because returning travelers to a destination demand the goods and services they have seen in other countries (Elliott 2001).
Topic:
Development, Environment, and International Trade and Finance
Political Geography:
United States, Latin America, and Caribbean

1354. Protest and Collaboration: Transnational Civil Society Networks and the Politics of Summitry and Free Trade in the Americas

Author:
Patricio Korzeniewicz and William C. Smith
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
This paper examines the politics of hemispheric integration exemplified by the Summits of the Americas held in Miami (1994), Santiago (1998), and Quebec (2001) and the negotiations over the creation of a Free Trade Area of the Americas (FTAA). Our basic premise is that political and institutional arrangements articulating state, society, and economy in Latin America are currently in the midst of a process of reconfiguration unleashed by the acceleration of globalization and attendant crises of state-centered development strategies. More specifically, we believe the Americas are witnessing the emergence of an ensemble of new social and political actors, among the most salient of which are new social movements and civil society organizations (CSOs), organized in networks operating at the domestic, regional, and global levels.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
United States, America, South America, Latin America, Central America, Caribbean, North America, and Miami

1355. The Impact of MERCOSUR on the Automobile Industry

Author:
Jerry Haar and Thomas A. O'Keefe
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
A transformation of the automotive industry, particularly the segment involved in production of finished vehicles, has taken place in the Southern Common Market (Mercado Común del Sur/Mercado Comum do Sul—MERCOSUR/MER-COSUL) region of South America, at a time when MERCOSUR member states opened their economies to global competition and to participation in an ambitious subregional economic integration project. This Agenda Paper provides an overview of the factors that have contributed to this recent industry transformation. The paper also examines the factors involved in the formal incorporation of the automotive sector into the MERCOSUR project and discusses the impact this development is like-ly have on the subregional automobile industry,
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
United States, South America, Latin America, and North America

1356. Preferential Treatment in Trade: Is There Any Room Left in the Americas?

Author:
Fernando Masi
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
This paper evaluates the costs and benefits of changes brought by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) on special and differential treatment (S); shows how these changes affected the new regional integration processes in the American continent; and examines whether this issue is still a priority of developing countries' agendas. Large concessions offered by developing countries in exchange for access to markets automatically led to “trade graduation.” Thus, S has lost its former significance among developing countries. Moreover, nonreciprocal treatment was retained for least developed countries, which do not even enjoy this type of treatment under the so-called “new trade-related issues” of services, investment, and intellectual property rights.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
United States, America, South America, Latin America, Central America, Caribbean, and North America

1357. Making and Unmaking Authoritarian Peru: Re-election, Resistance, and Regime Transition

Author:
Catherine M. Conaghan
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
One of the time-honored constitutional traditions of Latin America—the ban on immediate presidential re-election—gave way to political change in the 1990s. Cloaked in controversy, the trend began in Peru. In 1992, President Alberto Fujimori led an auto-coup (auto-golpe) that closed Congress and suspended the 1979 Constitution. The auto-coup eventually led to a new Constitution in 1993. The new Constitution lifted the ban on immediate presidential re-election, allowing a president to stay in office for two consecutive five-year terms.
Topic:
Democratization and Government
Political Geography:
Latin America and Peru

1358. When Democracy Isn't All that Democratic: Social Exclusion and the Limits of the Public Sphere in Latin America

Author:
Philip Oxhorn
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
During much of the 1970s and 1980s, the principal political struggles throughout Latin America revolved around the creation of democratic political regimes based on the right to vote. Now that this right has been effectively established in virtually every country of the region, 1 the limits of political democracy as traditionally defined are becoming increasingly apparent (Oxhorn and Ducatenzeiler 1998; Agüero and Stark 1998; Chalmers et al. 1997). These countries are indisputably political democracies, yet the quality of democratic rule leaves much to be desired. Recent studies of the democratic deficits in Latin America have focused on a variety of dimensions (including extremes of economic inequality, poverty, growing levels of criminality, limits on citizenship rights, the weakness of civil society, problems of representation, and the weakness of political parties, among others)
Topic:
Democratization, Development, and Government
Political Geography:
Latin America and Caribbean

1359. Free Trade and Worker Displacement: The Trade Adjustment Assistance Act and the Case of NAFTA

Author:
Jerry Haar and Antonio Garrastazu
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
Trade liberalization, a fundamental feature of U.S. economic policy since the end of the Second World War, has increasingly become a contentious domestic political issue during the last decade. Proponents and opponents of free trade transcend political party affiliation, industry, occupation, geographical locale, income level, age, and other socioeconomic and demographic factors. In addition, the U.S. public and its leaders for the most part hold qualified, mixed, or inconsistent opinions about trade liberalization and the larger and rapidly increasing phenomenon known as globalization. In a February 9-14, 2000, nationwide poll conducted by Princeton Survey Research Associates, a majority of respondents (64 percent compared to 27 percent) stated that free trade with other countries is good for the United States. On the other hand, an NBC News/ W all Street Journal poll several months later asked interviewees to respond to the following statement: “Foreign trade has been bad for the U.S. economy because cheap imports from abroad have hurt wages and cost jobs here at home.” Forty-eight percent of the respondents answered that it has been “bad” and 34 percent “good.”
Topic:
Industrial Policy and International Trade and Finance
Political Geography:
United States and Latin America

1360. Thinking About Environmental Security: Southeast Asia and the Americas in Comparative Perspective

Author:
Frank McNeil and Joseph Stark
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
This paper is styled a “work-in-progress” with good reason. It is the latest, not entirely ripe fruit of a North-South Center project, the “commonalities” study, about the shared challenges facing the developing nations of Latin America and the Caribbean and the developing nations of Asia, particularly those of Southeast Asia. These views have taken their shape, over more than three years, from the authors' reflections about their extensive interviews in both regions with policy “influentials” and knowledgeable academics, as well as through participation in occasional conferences.
Topic:
Security and Environment
Political Geography:
America, Latin America, Caribbean, and Southeast Asia