South America: why the silence?

Why does the US media care more about riots across the pond than protests happening on its doorstep?

When some 150,000 young people set fire to cars and bus stops, built barricades and clashed with police in Santiago during protests in demand
of free public education earlier this month, there was barely a ripple in the mainstream British and US press. Only the Guardian gave the story a brief mention on the homepage of its website.

It might be tempting to interpret this as an oversight; after all, the riots in England understandably dominated headlines in this country. But while this may account for the silence of the British press, it doesn't explain the lack of interest from the US and other European media.

The relative silence of the US media is especially baffling. US identity, as well as foreign and domestic policy, has been shaped by interactions with Latin America ever since Independence. From the 1846 Mexican War, to the 1954 CIA-sponsored coup in Guatemala, to the Reagan administration's backing of the Contras in Nicaragua in the 1980s, and the ever-present Cuban Question, the US has a long record of engagement with its southern neighbours. Immigration, from Latin America in general and Mexico in particular, has been a dominant theme of US domestic politics for decades, as has the Andean drug trade.

So why the absence of coverage? Many Americans consider themselves heirs to a European, and specifically British, cultural and political heritage. Though there is mixed truth in this, it is perception that matters. Although there are growing numbers of Spanish language television and radio stations, the mainstream US media and the manufacturers of culture in general are predominantly white; they look east towards their Atlantic cousins, rather than south to their Hispanic neighbours.

Another explanation could be practical. Of the ten countries with the highest rates of kidnapping in the world, five are in Latin America. The Blackberry - now almost as ubiquitous a tool for the reporter as a notebook once was - is nicknamed "the phone of death" in Venezuela due to the number of people mugged - and killed - for them. 20 journalists have been killed in Latin America so far this year. This problem is especially endemic in Mexico, where journalists reporting on the drug trade are often silenced.

But not all of Latin America is dangerous, opaque, or geographically hostile. And many other areas of the world that are - parts of Africa and the Middle East, for example - do receive substantial press attention. European nations tend to have a greater interest in former colonies, or those involved in the cold war. Spain, which did have an empire in South America, tends to be more vocal about South American affairs; El Pais even had an editorial on the Chilean student protests.

But though Britain may not have had colonies in South America, it had an informal trading empire there, and Britain almost went to war with the
newly independent United States over the latter's territorial expansion in South America on more than one occasion.

Today, Britain still has interests in Latin America. But as Dr Ramos, an expert on Latin American history at Cambridge University, says:

"Although the UK has important investments in South America (for example, the UK is one of the major investors in Peru), this is not reflected in the coverage the region gets in the British press. Since the 19th century, Britain has seen Latin America as an area of US 'natural' influence."

There are also ideological reasons for the lack of commentary on Latin American affairs in North America. US policymakers and opinion formers are perhaps reluctant to draw attention to the examples of successful social democracy that have taken root in their back yard. The democratic
re-election of Bolivian president Evo Morales, who is implementing a series of pragmatic but quasi-socialist nationalisations, reveals that his anti-imperialist approach is far more popular than the neoliberal policies of the North American-educated elites, often seen as US stooges.

Likewise, social reforms and public works programmes in Argentina, Brazil, Ecuador and Uruguay have enjoyed relative success. And though Hugo Chavez's regime may not be a functional social democracy, the Venezuelan President is popular amongst the working classes, which benefit from his redistributive policies. Chile, meanwhile, is the most economically successful of all Latin American countries, and its citizens are protesting en masse in the capital in demand of more equal education. It is not surprising that this message is not being loudly relayed in America, which is the most unequal country in the developed world.

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George Osborne's mistakes are coming back to haunt him

George Osborne's next budget may be a zombie one, warns Chris Leslie.

Spending Reviews are supposed to set a strategic, stable course for at least a three year period. But just three months since the Chancellor claimed he no longer needed to cut as far or as fast this Parliament, his over-optimistic reliance on bullish forecasts looks misplaced.

There is a real risk that the Budget on March 16 will be a ‘zombie’ Budget, with the spectre of cuts everyone thought had been avoided rearing their ugly head again, unwelcome for both the public and for the Chancellor’s own ambitions.

In November George Osborne relied heavily on a surprise £27billion windfall from statistical reclassifications and forecasting optimism to bury expected police cuts and politically disastrous cuts to tax credits. We were assured these issues had been laid to rest.

But the Chancellor’s swagger may have been premature. Those higher income tax receipts he was banking on? It turns out wage growth may not be so buoyant, according to last week’s Bank of England Inflation Report. The Institute for Fiscal Studies suggest the outlook for earnings growth will be revised down taking £5billion from revenues.

Improved capital gains tax receipts? Falling equity markets and sluggish housing sales may depress CGT and stamp duties. And the oil price shock could hit revenues from North Sea production.

Back in November, the OBR revised up revenues by an astonishing £50billion+ over this Parliament. This now looks a little over-optimistic.

But never let it be said that George Osborne misses an opportunity to scramble out of political danger. He immediately cashed in those higher projected receipts, but in doing so he’s landed himself with very little wriggle room for the forthcoming Budget.

Borrowing is just not falling as fast as forecast. The £78billion deficit should have been cut by £20billion by now but it’s down by just £11billion. So what? Well this is a Chancellor who has given a cast iron guarantee to deliver a surplus by 2019-20. So he cannot afford to turn a blind eye.

All this points towards a Chancellor forced to revisit cuts he thought he wouldn’t need to make. A zombie Budget where unpopular reductions to public services are still very much alive, even though they were supposed to be history. More aggressive cuts, stealthy tax rises, pension changes designed to benefit the Treasury more than the public – all of these are on the cards. 

Is this the Chancellor’s misfortune or was he chancing his luck? As the IFS pointed out at the time, there was only really a 50/50 chance these revenue windfalls were built on solid ground. With growth and productivity still lagging, gloomier market expectations, exports sluggish and both construction and manufacturing barely contributing to additional expansion, it looks as though the Chancellor was just too optimistic, or perhaps too desperate for a short-term political solution. It wouldn’t be the first time that George Osborne has prioritised his own political interests.

There’s no short cut here. Productivity-enhancing public services and infrastructure could and should have been front and centre in that Spending Review. Rebalancing the economy should also have been a feature of new policy in that Autumn Statement, but instead the Chancellor banked on forecast revisions and growth too reliant on the service sector alone. Infrastructure decisions are delayed for short-term politicking. Uncertainty about our EU membership holds back business investment. And while we ought to have a consensus about eradicating the deficit, the excessive rigidity of the Chancellor’s fiscal charter bears down on much-needed capital investment.

So for those who thought that extreme cuts to services, a harsh approach to in-work benefits or punitive tax rises might be a thing of the past, beware the Chancellor whose hubris may force him to revive them after all. 

Chris Leslie is chair of Labour's backbench Treasury committee.