This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Latin America's neutrality in a bipolar world
Article analyzing how the supposed neutrality of Latin American (LA) countries in the face of the rivalry between the US and China is taking place. After analyzing 31 resolutions representing 'values' (human rights, sovereignty and territorial integrity) and 'economic interests' (trade and development, economic sanctions) voted in the United Nations General Assembly (UNGA) between 2001 and 2023, in which the US and the European Union (EU) voted on the opposite side to China (and Russia), the article concludes that LA pursues its own national interests by aligning with the different blocs on different issues: on values they do so with the US and the EU, and on economic interests they do so with China and their emerging peers.
Main takeaways:
- State self-interest or neutrality with regard to China and the US: According to the article, the votes taken by Latin American countries in the UNGA have not avoided aligning themselves with either of the two blocs, abstaining in order to maintain neutrality when there was an opposing stance between the two. Instead, Latin American countries have voted according to their own national interests, aligning themselves with the different blocs on different issues: in terms of values, they do so with the US and the EU, and in terms of economic interests they do so with China and their emerging peers. This has occurred irrespective of the political party of the government in power.
- Differences between the US-China rivalry and the Cold War (US-Russia):
- The current rivalry is limited to the economic and technological plane, and unlike what happened during the cold war, it is not yet manifested on the ideological or military plane (with the exception of Taiwan).
- The USSR had strong economic ties mainly with the countries in its orbit (Warsaw Pact) and hardly any economic ties with emerging countries. China today is the most important trading partner of more than 100 emerging countries, including Brazil and Argentina.
- The current rivalry is limited to the economic and technological plane, and unlike what happened during the cold war, it is not yet manifested on the ideological or military plane (with the exception of Taiwan).
- Latin America, the emerging region most aligned with Western values. While Russia would have aligned itself with China in all votes, the democratic countries of Latin America (excluding Cuba, Nicaragua and Venezuela, which aligned themselves with China and Russia) mostly align themselves with the Western bloc when it comes to resolutions on values: human rights and sovereignty and territorial integrity. They do so 79.5% of the votes (Brazil 60 per cent and Mexico 80 per cent), compared to 37% in the Middle East and North Africa, 25% in Sub-Saharan Africa and 19% in emerging Asia.
- Latin American countries are mostly aligned with China on the resolutions referring to economic interests: trade and development and economic sanctions. 90.5% of Latin American countries vote with China on trade and development resolutions and 97% on economic sanctions.
Filter results
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.