Op-Ed

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COHA

Washington Revives the Fourth Fleet: The Return of U.S. Gun Boat Diplomacy to Latin America

• Administration not bothering to conceal implicit threat to the region

• After ignoring Latin America for most of his Presidency, Bush dispatches the Navy

• The steady remilitarization of Panama may provide a safe haven for the revitalized fleet

• FTA with Panama could grant U.S. access to canal zone military facility for Fourth Fleet

• Correa facetiously suggests that Manta be moved to Colombia

The dearth of diplomatic content in the April 24 Pentagon announcement left little mystery regarding the purpose behind Washington’s decision to reestablish the Fourth Fleet to patrol Latin American and Caribbean waters. As Washington shifts its attention back to the Western Hemisphere, it will have to grapple with issues that have been on the back burner for more than a decade. The return of the Fourth Fleet, largely unnoticed by the U.S. press, appears to represent a policy shift that projects an image of Washington once again asserting its military authority on the region, coincidentally coinciding with the announcement that Brazil has just launched a military initiative, the Conselho Sul-Americano de Defesa, embracing two of its neighbors with whom Washington has chilly relations.

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COHA

Still on the Drawing Board: the Banco del Sur a Half Year Later

COHA and the history of the Argentine human rights situation

COHA Director Larry Birns was recently mentioned in Hugo Alconada Mon’s article, “Piden desclasificar los archivos sobre los desaparecidos,” in La Nación. The article may be accessed by clicking on the following link:

http://www.lanacion.com/ar/politica/nota.asp?nota_id=1013271

• In the wake of the third summit of heads of state for the Union of South American Nations (UNASUR), the newest development is the creation of a South American Defense Council. One question still in the air, however, is what happened to the Banco del Sur, the South American development bank that was so heavily hyped a half year ago?
• The Banco del Sur may become an important actor throughout the continent, but for this to happen its members first need to agree on the subscribed capital upon which it will be levied.
• Once the bank’s capital subscription is decided, future challenges await: How to allocate the voting shares distribution and how to achieve high quality portfolios and credit ratings.

In December 2007, presidents from seven of the thirteen South American countries met in Argentina to create the Banco del Sur, a development bank originally advocated by Venezuela’s President Hugo Chávez as a substitute for international financial institutions like the International Monetary Fund (IMF )and the World Bank. However, as the Banco del Sur is still on the drawing board and its purpose still debated, the only relatively fixed points are the countries which have agreed to be members: the leftists Bolivia, Ecuador and Venezuela, and the moderate left-leaning Mercosur countries, Argentina, Brazil, Paraguay and Uruguay. The question at hand is whether the newborn Banco del Sur will be able to live up to the challenges of running a successful sub-regional development bank while still making a coherent and strong ideological statement.

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