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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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.