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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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.