Latin America

Lord Garel-Jones Excerpts

Thursday 24th June 2010 Lords Chamber

[Lord Garel-Jones]

My Lords, I begin by paying tribute to the noble Viscount, Lord Montgomery, not just for initiating this debate but for his life-long promotion of Latin America in your Lordships’ House. He is, as they would say over there, “un amigo leal y constante”.

All of a sudden Latin America is in fashion. In my day job in the City, I am frequently approached by leaders of industry with the question, “Do you think we ought to be looking at Latin America?”. The answer is yes, and it is hardly surprising if you look at what is going on down there. I wish to give a few snapshots. Peru’s economy is expanding by more than 6 per cent and foreign direct investment will double in the next five years. It has investment-grade status. Colombia’s GDP is expected to grow by 5 per cent in the next four years. It has never defaulted on a sovereign obligation and should recover investment-grade status any time soon. Chile has investment-grade status, no public debt to speak of, is a member of OECD and has a level of economic, political and social development which rivals that of most European countries. Growth is projected at around 4.5 per cent. Brazil is predicted to be the sixth largest economy in the world by 2015 and is the guardian of one of the largest reserves of natural resources in the world. Growth is predicted at around 8 per cent. Mexico is a member of the G20, is the eleventh largest economy in the world, a member of OECD and has a growth rate of 4.2 per cent. Even in these times of unprecedented difficulty, Argentina is tackling its debt overhang with the firm intention of returning to the international markets at the earliest opportunity. It has a growth rate of 5.5 to 6 per cent. I pick out just one of a whole host of smaller countries, Uruguay, with projected growth of 5.1 per cent this year. It is a small country but about as serious and proper a place as you could hope to find along with other smaller states such as Panama, which has investment-grade status, Costa Rica, which may become the first carbon-free country in the world, the Dominican Republic and others.

That economic success, as the noble Viscount pointed out, has been accompanied by democratic consolidation. In Brazil, the transfer from President Cardoso to President Lula has been exemplary and the upcoming elections will be hard fought, but with one certain winner—the democratic process. In Chile, the deservedly popular left-of-centre President Bachelet handed over to the centre-right President Piñera. It was a real sea change after 20 years of centre-left government. In Uruguay, there was no such ideological shift, but impeccable behaviour by both candidates. As the noble Viscount pointed out, this very weekend Colombia, a country that has been challenged by criminal terrorists for more than 30 years, has upheld its position as the most longstanding democracy in Latin America. There were two interesting and intelligent candidates; there was a proper campaign, a proper process and a President-elect Santos who is eager to build on President Uribe’s record.

Noble Lords might think that people such as myself would be deeply satisfied. Well, not quite. Why, I ask myself, does this great continent with a gross domestic product, as the noble Viscount pointed out, that is almost twice that of India and only a tad short of China’s, remain no more than a bit player in world affairs? Is there some congenital deficiency? By no means. If one steps outside the political world, in almost every other field of human endeavour, we are talking about first division players.

In literature, there are Octavio Paz, Neruda, Vargas Llosa, García Márquez and Borges. The only surprising thing is that only three of them have a Nobel prize. In art there are Botero, Diego Rivera and Oscar Niemeyer. In music, there is what is known as El Sistema in Venezuela, which is perhaps the most exciting classical music experiment in the world, embracing every town and village in the republic and showcased by the Orquesta Sinfónica Simón Bolivar, led by Gustavo Dudamel. The recent appointment of Sonia Sotomayor to the US Supreme Court is just the latest example of citizens of Latin American origin occupying the highest positions in the public, industrial and intellectual life of the United States. We are talking first division here.

So what is wrong? Why is Latin America no more than a bit player? Latin American countries are prisoners of the 19th-century Westphalian model of the nation state—as we all are, up to a point. Here in Europe, after the loss of 60 million lives in two world wars, we have begun to move on from that model. But it is difficult. How does one identify those areas where the pooling of sovereignty with others is the most effective way of advancing our interests and values without losing that all-important and underlying sense of belonging and social cohesion that the nation state provides? It is no easy task.

In Europe, we are moving in that direction. I will not dwell on our successes or many failures. Suffice it to say that Latin America has yet to embark seriously on that journey. For all the Mercosurs, the Andean pacts, the ALBAs, the ALCAs, the CAFTAs, the FTAAs, the bilateral free-trade agreements, and Brazil's membership of the BRICS, the continent remains a collection of 19th-century Westphalian states competing macho-like against one another. It would be impertinent of us here in Europe to lecture Latin America on how to go about its business. There are a number of senior prestigious former presidents— Bachelet, Lacalle, and Zedillo, who are soon to be joined by Lula and and President Uribe. My hope is that they might come together to start the process of really bringing this continent together, because we need them.

In another place, I was sometimes described by political foes as the “Member for Madrid Central”. It was a badge that I wore with some pride. Spain and Portugal have led the effort to put Latin America on to the European agenda. However, as the noble Viscount pointed out, we British have a history there, too. The British Legions fought with distinction in the battles of Boyacá Carabobo, Pichincha and Ayacucho—earning for the British the title of “saviours of my country” from Bolivar. It was here in London that Bolivar, along with Miranda and others, planned the struggle for independence.

There are encouraging signs. The European Union has agreed to set up the EU-LAC Foundation, whose aim is to strengthen EU-Latin American partnership and to encourage further knowledge and understanding between us. The new coalition Government have appointed the honourable Member for Taunton as Minister of State for Latin America, and I know that he is approaching his responsibility with all the relish and enthusiasm that the noble Viscount could wish for.

No doubt, Canning exaggerated a little in 1825 when he famously claimed:

“I have called the New World into existence to redress the balance of the Old”.

That balance has yet to be redressed and I call on our Latin American friends to do just that, and on our Government and the European Union to support them in that endeavour.