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CRS INSIGHT


Challenges for U.S. Policymakers in Latin America and

the Caribbean

February 16, 2017 (IN10654)




Related Author


    *Mark P__Sullivan




Mark P. Sullivan, Specialist in Latin American Affairs (msllivanThcr 1    v,7-7689)

The Latin American and Caribbean region has made significant political and economic advances over the past three
decades, but challenges remain. Regular free and fair elections are the norm in most countries; in 2017, presidential
elections are scheduled for EcuadDr in February and Chile and Honduras in November, while parliamentary elections
are due in the Bahamas by May. The quality of democracy, however, has eroded in several countries affected by
organized crime, corruption, and the executive's abuse of power. The rise of leftist populism, most prominently in
Venezuela, has led to the subversion of democratic institutions and erosion of human rights. In Freedom House's 2017
annualre    , Venezuela joined Cuba as the only countries in the Americas categorized as not free. Ten others were
classified as partly freely. The ebbing of populism's electoral appeal (e.g., in Argenina) is a positive development for
democracy, as is Colombia's peace agreement ending a half-century conflict.

The region has faced an economic slowdown in recent years, driven by the global decline in commodity prices and
China's economic slowdown. Regional economic growth contracted 0.7% in 2016, with marked declines in Argentina,
Brazil, Ecuador, and Venezuela. A slower recovery is forecast for 2017, with growth of 1.2% and continued recessions
in Ecuador and Venezuela, countries dependent on oil exports. HaiLi remains one of the world's poorest countries.

In its policy approach toward the region, the Obama Administration emphasized Dartnership shared reSponsibility and
engagemnt. Its policy priorities included efforts to promote economic and social opportunity, combat transnational
crime and advance citizen security, and strengthen democratic institutions. These U.S. goals in the region have been
long-standing, so it is possible the Trump Administration will continue to support them. S  me obs~r, however, are
fearful that the Administration's strong emphasis on border security, trade protection, and deportations could change the
tenor of relations with the region, jeopardize cooperation, and fuel anti-American sentiment. One policy change that has
altered the outlook for relations is  . hrawl from the Trans-Pacific Partnership trade agreement, which would
have deepened economic linkages with Mexico, Chile, and Peru.

Among the significant challenges facing the Trump Administration in the region are the following:


Mexico