The Enterprise Blog

Archive for the ‘Latin America’ Category

Roger Noriega

Waterloo for Lt. Col. Chavez?

By Roger Noriega

September 27, 2010, 12:52 pm

chavez-dignifiedVenezuela’s democratic opposition leaders say that they have scored a stunning victory in yesterday’s national assembly elections, with their slate of candidates winning a slight majority of the popular votes cast. Because Venezuelan caudillo Hugo Chavez rigged the rules, the opposition’s majority vote would translate into only about 64 of the 165 assembly seats. But that would leave Chavez with no more than 101 seats—less than the super-majority he needs to force through major reforms.

Now comes the crucial test for the opposition, as they mobilize to demand an honest count and “fair” apportionment of the assembly.

Last night’s results left the bombastic Chavez speechless. He skipped his traditional post-election rally from the presidential palace’s “Balcony of the People” because he literally had nothing to say. His handlers gave him draft remarks for four possible scenarios, but none of them anticipated the major defeat in which Chavez failed to win the two-thirds majority.

Chavez is a master of bouncing back from defeat. No doubt, he is huddling with advisors now, deciding whether to risk a showdown by denying the opposition the symbolic majority in the popular vote or by claiming to have won the requisite 110 seats that will allow him to maintain a rubberstamp legislature. The first test will be whether he can bully his cadre of key supporters to back him in such a provocative course. If so, he will have no trouble rallying his supporters to the streets to try to impose phony results. However, they will be met by an ascendant and emboldened opposition that can credibly claim, “We are the majority.”

Chavez may decide that the wiser course of action is to fudge the popular vote count, stealing a narrow majority for his slate of candidates but acknowledging that he has failed to win the two-thirds of the assembly. There is precedent for this sort of response. In the case of recent electoral setbacks, Chavez stole sufficient votes to give himself a “moral victory” and to claim that he is a “democrat.” Then, he recovers by denying his opponents any effective power. For example, in 2008, after conceding the loss of the mayor’s office in Caracas and several key governorships, Chavez proceeded to strip those posts of all resources and power.

What’s an electoral toss-up in Hugo Chavez’s Venezuela? Tails, he wins; heads, you lose.

Moreover, months ago, Chavez laid the legal groundwork for moving more power to “communal councils,” giving him the option of bleeding power from a troublesome national assembly under the guise of empowering the masses.

However, there is no denying that the “Movement for Democratic Unity” has won a significant political victory that only a few enthusiastic backers might have predicted weeks ago. By refusing to boycott the process, the movement’ s leaders put their faith in the Venezuelan people ahead of their fears about Chavez’s electoral shenanigans. And, by proposing a unified national slate of candidates, they denied Chavez the opportunity to split the opposition vote.

Of course, by renewing some confidence in the electoral process, the democratic opposition has raised the stakes for Chavez in the upcoming 2012 presidential votes. One can hope that the opposition will stay unified as he pulls out all the stops to win reelection.

Although U.S. policy makers will take some solace that the opposition has flourished despite being abandoned by Washington, an electoral setback for Chavez does not necessarily spell instant relief for our security interests. Wishful thinking might suggest that Chavez’s trouble at home might clip his wings and force him to retreat from his international adventurism. However, it is just as likely that he will be forced to solidify his ties to the ruthless regimes in Iran, Cuba, China, and Russia that specialize in holding on to power.

At the very least, the U.S. national security establishment must pay greater attention to these growing, troubling relationships and begin to fashion an effective strategy for defending our interests. That is a process that U.S. foreign policy makers can no longer boycott.

Image by Bernardo Londoy.

chavezIt doesn’t take a rocket scientist to know why Venezuelan President Hugo Chavez would want a nuclear bomb. Although most observers would dismiss the notion of Chavez building such a weapon, a man who used to help build them for the United States didn’t think the idea was so crazy.

Last Friday, the FBI revealed the arrest and indictment of two U.S. citizens accused of plotting to help Venezuela obtain a nuclear bomb. Accused nuclear scientist Pedro Leonardo Mascheroni, who was convinced that he was talking to a representative of the Chavez regime (rather than an FBI undercover agent), offers the following rationale for such a dangerous program:

A deterrence against the U.S. based on conventional weapons is highly inadequate … Venezuela cannot develop deterrence against a U.S. invasion using conventional weapons … The only option for Venezuela is to develop nuclear deterrence … Venezuela would show the world that [it] is a mature nuclear power able to deter a superpower … What we do when we are in Venezuela … is our business, not that of the U.S. government.

Chavez could not have said it better himself.

The U.S. federal indictment continues:

Defendant MASCHERONI discussed how in his program Venezuela would build and test nuclear bombs in secret and would have two nuclear reactors—one open, above ground reactor used for producing nuclear energy and the other, a secret underground nuclear reactor used for producing and enriching plutonium. In his program, Venezuela would build an above-ground micro-fusion facility for developing energy, and an underground micro-fission facility where Venezuela would conduct undetectable tests of ‘micro bombs.’

Justice Department officials have stated that there is no evidence that the Venezuelan government obtained any of the sensitive technology offered by Mascheroni and his co-indicted spouse. However, those who are paying attention to the extraordinarily tight and secretive ties between Chavez and troublesome regimes in Iran, Cuba, Russia, and China might wonder if Mascheroni’s vision is being implemented by a band of rogues at work in the Western Hemisphere while Washington sleeps.

One can hope that the FBI is not the only U.S. agency with its guard up when it comes to Chavez and the bomb.

Image by Agência Brasil.

colombiaMichael Shifter, president of Inter-American Dialogue, has an interesting piece in today’s Washington Post on Colombia’s rapprochement with Venezuela. Among the choice bits:

U.S. relations with Colombia—Washington’s major Latin American ally over the past decade—may be on the verge of some important changes… Although the United States has been Colombia’s closest ally in fighting rebels and drugs, for Colombia the relationship often resulted in isolation from neighbors… Colombians are tired of often-futile visits to Washington aimed at convincing U.S. lawmakers that they should back the trade deal… For Colombia, it seems, as increasingly for the rest of Latin America, it is time to move on in the world.

Shifter is making the case that there is a foreign policy imperative for passing the pending free trade agreement (FTA) with Colombia. The United States has asked a great deal of Colombia, but has blocked an agreement that would be mutually beneficial and is a top priority of the Colombian government. To justify this blockage, initiated by House Democrats in 2008, there has been a prolonged period in which U.S. leaders have criticized Colombian policies without offering any list of specifics that might be redressed.

The argument that FTAs can play an important diplomatic role is not new. It was put forward by Senator John McCain in his presidential run in 2008, for example. But the Obama administration has been slow to embrace it. That reluctance may have been overcome this summer, however. Last month, David Wessel of the Wall Street Journal described a potential turning point in the context of the Korea-U.S. Free Trade Agreement (KORUS):

The attempt to revive the South Korea deal began several weeks ago in a late-afternoon conversation between the president and his chief of staff, Rahm Emanuel. The president was looking for ways to shore up U.S. backing for South Korea after North Korea’s new aggressiveness, had promised to increase U.S. exports and wanted to reinforce U.S. economic ties to Asia. Mr. Emanuel saw the South Korea deal as addressing all three objectives.

A key question, then, is whether the logic supporting the KORUS push will be extended around the world. House Majority Leader Steny Hoyer (D-Maryland) has already argued that it should. Shifter’s article provides the specific reasoning in the Latin American context.

Image by edithbruck

going-southEduardo Enriquez, editor of Managua’s storied newspaper, La Prensa, was in town last week to alert Washington policy makers to Nicaraguan President Daniel Ortega’s gradual asphyxiation of democracy in that country. This scrappy journalist has been a voice for freedom, tilting against the Ortega government as it morphs into a criminal enterprise seeking to monopolize wealth and power in Nicaragua.

In testimony before Congressmen Eliot Engel and Connie Mack at the House Western Hemisphere Subcommittee, Enriquez sounded the alarm. Citing the return of the old dictator’s behavior of the 1980s, Enriquez described how Ortega is manipulating the courts, the constitution, and the National Assembly to maintain his control of the country and a growing share of its economy. Hugo Chavez’s favorite ally in Central America is steadily enriching himself and his cronies at the expense of his fellow Nicaraguans. Meanwhile, Ortega’s ties to Venezuela’s Chavez, Iran’s Mahmoud Ahmadinejad, and his historic ties to the Castros and a now-resurgent Moscow should give pause to U.S. policy makers. This was the message Enriquez took to numerous policy makers, not only in the Congress, but also at the White House, the State Department, and in interviews with Voice of America and AP, among others.

Until now, Ortega’s determined efforts to extinguish democracy in Nicaragua have received little notice in Washington. With the visit of Enriquez to the city, that has changed. His message should continue to resonate, and it’s time for the U.S. government to take notice and take action.

Image by Heiki Quosdorf.

090224-N-2855B-014After winning nearly 70 percent of the 13 million votes cast in Colombia’s Sunday presidential run-off, ex-defense minister Juan Manuel Santos promised to deliver “national unity” and to expand access to “prosperity, health, quality education, and decent housing.” He also vowed to fight “corruption and impunity” and to smooth over the very tense relations between the executive branch and the judiciary. Santos’s election challenges Washington to define a coherent policy by delivering a promised free-trade agreement and continued security aid, both of which face an uncertain future in the Congress.

Santos’s strength matches the approval ratings of his chief backer, outgoing President Alvaro Uribe, whose get-tough strategy has gone a long way toward defeating the narco-guerrilla threat, taming criminality in Colombia’s major cities, imposing the rule of law in untamed rural areas, and restoring economic growth. “Colombians voted overwhelmingly today to support a government program that continues and builds on the progress of the Uribe administration,” Santos acknowledged in his victory speech.

It is significant that the United States has had no closer friend in South America in the last decade than Colombia under Uribe. With Santos’s victory ensuring continued anti-drug cooperation, Colombians will continue to press Washington for approval of a free-trade agreement and crucial security assistance to consolidate the gains of the bipartisan “Plan Colombia” security package, which was authored by a Republican Congress in cooperation with the Clinton administration a decade ago.

Santos soundly whipped Green Party candidate and former Bogota mayor Antanas Mockus, who held a small but apparently illusory lead in many polls in April. Critics of the iron-willed Uribe were delighted to see his favored candidate challenged by the free-spirited Mockus, but Colombians were apparently spooked when the successful mayor failed to show a command of persistent security issues, notably the threat posed by their belligerent neighbor, Venezuelan dictator Hugo Chavez.

Experts commenting in Colombian newspapers, including the daily El Tiempo, opined that Santos should pay particular attention to broad-based economic development to overcome inequality that is caused by a lack of education, training, and healthcare. Another noted the challenge of ending the long war, which has decimated but not eliminated the guerrillas’ ranks. Still others said Santos should make Colombia a leader in regional integration—seeking to overcome the tensions with neighbors Venezuela and Ecuador.

Image by Petty Officer 1st Class Molly A. Burgess, U.S. Navy.

800px-tent_city_in_port-au-prince_2010-01-21It’s been almost three months since the devastating earthquake in Haiti, and a couple of recent videos highlight the important role being played there by entrepreneurs, who are starting businesses in the tent cities to provide needed services to their local communities.

In this video, National Public Radio’s “Planet Money” program reports on the Haitian “entrepreneurs who are kick-starting the local economy.” In February, a Reuters video highlighted how “tent cities in Haiti have become something of an incubator for entrepreneurs.”

The fact that small businesses are flourishing in Haiti’s tent cities after a natural disaster clearly illustrates the entrepreneurial spirit of the Haitian people and the economic concept of “spontaneous order”—the spontaneous emergence of order out of seeming chaos. And it’s also important to note that all of the entrepreneurial activity in Haiti is happening in an environment almost entirely free of government licensing, regulation, or central planning. It’s a great example of the “invisible hand” of the market at work in Haiti’s tent cities.

564px-hugo_chavez_photo_cut_27-06-2008In a private luncheon at a regional summit in Cancún yesterday, Colombian President Álvaro Uribe took his Venezuelan counterpart Hugo Chávez to task for imposing a de facto embargo on Colombian trade and investment. The Venezuelan dictator—who is known for his own bombastic declarations and wild accusations against Colombia—took offense when Uribe compared Chávez’s hostile treatment of Colombia with the embargo on Cuba. Chávez accused Uribe of dispatching assassins to kill him, and he threatened to storm out of the summit. According to diplomats who witnessed the event, Uribe then shouted at Chávez, “Be a man!  You’re brave at a distance, but a coward face-to-face.” The Venezuelan responded by telling Uribe, “Vete al carajo!” the most polite translation of which is, “Go to hell!”

Chávez is not accustomed to being challenged. Indeed, the so-called “international community” has let him off the hook despite hard evidence that he has been waging a proxy war against Colombia for the better part of a decade; computer hard drives captured from a slain guerrilla leader prove that Chávez is providing these terrorists with money, arms, and other material support. Unchallenged, Chávez has repeatedly whipped up nationalist sentiments at home as a cudgel against his internal opposition, put his military on a war footing, and sought to punish Colombia by cutting back on trade.

Ironically, this confrontation came at a summit of Latin American and Caribbean leaders intended to launch a “regional mechanism” that might serve as an alternative to the Organization of American States (OAS). Apparently, Latin and Caribbean diplomats think that a new forum—minus the United States and Canada—might advance their common interests more effectively. However, it is clear from the showdown in Cancún that Chávez is the problem. His polarizing, bullying style has poisoned the atmosphere at the OAS and will undermine confidence wherever he goes.

Image by Marcello Casal Jr. for Agencia Brasil.

Four years after Bolivian President Evo Morales was elected, the poor are poorer and that country’s ethnic, social, and regional divisions are as pronounced and explosive as ever. Nevertheless, Morales has exploited these weaknesses to win a second term yesterday, in elections that may be remembered as the last stand for pluralistic democracy and the rule of law in Bolivia.

Most foreign observers have ignored the fact that Morales recently declared himself a Marxist-Leninist and that a cadre of extremist advisers have brandished fascist tactics to push Bolivia to the brink. The opposition’s only hope was to deny Morales’s movement a congressional majority, but it appears that he will have the two-thirds vote in both houses to authorize his indefinite re-election and to ram through constitutional reforms that will further polarize the country.

Although there may be little for outsiders to do but watch Bolivia disintegrate, chaos in a state where the government is abetting coca production may have serious consequences for countries in the Americas and Europe already impacted by the illegal drug trade.

Unfortunately, as oil revenues drop and as political grievances boil over, Bolivians will not have the institutions to pull together, as Morales would have pulled them apart. An ethnic tinderbox with fierce political, social, and regional differences could produce a failed state in the heart of cocaine country. South American countries that relish seeing the United States expelled from Bolivia will be forced to contend with this crisis on their own.

While leftist authoritarians backed by the budding dictator Hugo Chavez are attacking democracy in Bolivia, Ecuador, Nicaragua, and Venezuela, two elections in Honduras and Uruguay underscore that free elections are embraced by people throughout the Americas.

In Honduras, nearly two-thirds of the eligible voters turned out to elect Porfirio “Pepe” Lobo as their new president. The historically high turnout (20 percent greater than elections four years ago) and 57–38 percent margin of victory is expected to put an end to a political crisis that was sparked by the illegal bid by former president Manuel Zelaya to hold on to power. The United States and several Central American governments already have pledged to recognize these elections. However, new leadership at the U.S. State Department and the Honduran president-elect will have to convince Brazil and other nations to accept the legitimacy of the new government, which takes power in January.

Lobo is a businessman of the Nationalist Party who narrowly lost to Zelaya in 2005. He defeated Elvin Santos, of Zelaya’s Liberal Party, who conceded last night. The real losers were those who cast doubt on the democratic process with the intent of undermining the transition and sustaining the costly crisis. Several leftist governments—following Chavez’s lead—have sought to delegitimize the process, and the Organization of American States refused to observe the elections. However, Lobo’s convincing margin, Santos’ recognition of the free and fair balloting, and the overwhelming turnout should be sufficient to convince any serious government that the Honduran people have spoken, and it is time to move on.

In Uruguay, a former leftist revolutionary secured power at the ballot box, having failed in the 1970s to win power through violent struggle. Jose Mujica won a 5-point margin over former President Luis Alberto Lacalle, who recognized the results. The Uruguayan people gave Mujica a vote of confidence to succeed another leftist, Tabare Vazquez, who has governed with moderation, pursued responsible economic policies, and maintained a very positive relationship with the United States.

During the campaign, Mujica said that he “repented,” and he condemned the “stupid ideologies that come from the 1970s.” He rejected statist recipes and anti-Americanism. “Down with ’isms!,” he shouted during the campaign. “I am more than completely cured of simplifications, of dividing the world into good and evil, of thinking in black and white. I have repented!”

It remains to be seen whether Mujica will choose to continue moderate, market-oriented policies favored by his predecessor Vazquez and his model, Brazilian President Luis Inacio “Lula” da Silva. Uruguayan institutions are so strong and centrist that he will have little choice but to pursue a middle-of-the-road course in domestic affairs. However, Chavez will spare no effort to see if he can teach the new dog old tricks.

Too many patronizing outsiders are quick to seize on the notion that Latin Americans are not mature enough for traditional democracy, primarily as an excuse for the transgressions of dictators on the Right or, lately, the Left. For example, Venezuela’s Chavez and Bolivia’s Evo Morales explain that they have to tear down old institutions to usher in a more just political and social order. It is more than transparent that what they are up to is destroying constitutional separations of power and the rule of law with the intention of consolidating power and holding on to it indefinitely.

When Hondurans were forced to decide between Chavismo and democracy they made the right choice. After months of wrongheaded decisions, the international community can do the right thing and choose democracy, too.

There’s good news and bad news in Cuba.

The bad news: There’s a shortage of toilet paper, and officials in Havana say it will not ease until the end of the year.

The good news: Day-old copies of the Communist party’s newspaper Granma, a traditional substitute, are available for less than a U.S. penny. And that’s six to eight full, if rough, pages per day. (Source)

(H/T) Marian Tupy who says “This I remember from living in communist Czechoslovakia. Except, people used Czech Pravda, not Cuban Granma.”

What will the American people say if it is discovered that their government pulled diplomatic strings to put a friend of drug traffickers back in power in Honduras?

Manuel Zelaya, who was deposed on Sunday for his willful violations of the Honduran Constitution, was never much of a friend of the United States, and rumors of his garden-variety corruption are nothing new. Nevertheless, President Obama issued a zealous statement in the Oval Office on Monday saying that Mr. Zelaya remains the president of Honduras, and he has put his administration on the side of reinstating Zelaya.

But wait. President Obama might want to ask our intelligence and law enforcement agencies what they know about Zelaya’s drug corruption, in light of public allegations that just surfaced.

On Tuesday (June 30), the Associated Press published an accusation by a current Honduran official that Mr.  Zelaya’s government “allowed tons of cocaine to be flown into the Central American country on its way to the United States.” Honduran Foreign Minister Enrique Ortez is quoted as saying, “Every night, three or four Venezuelan-registered planes land without the permission of appropriate authorities and bring thousands of pounds . . . and packages of money that are the fruit of drug trafficking . . . We have proof of all of this. Neighboring governments have it. The DEA has it.”

Although the administration’s left-wing supporters have suggested a reappraisal of the “war on drugs” in Latin America, I am fairly confident that President Obama would draw the line at actually putting the drug smugglers’ friend back in power in Honduras. Drug thugs are streaming southward to Central America, evading Mexico’s stepped up law enforcement efforts. The tiny states of Guatemala and Honduras do not have the security resources to resist the blood-thirsty cartels. Drug-related crime, murders, money laundering, and kidnapping are spiraling upward, and most observers are convinced that officials are vulnerable to threats and bribes.

U.S. officials and private citizens in these countries have intimated to me on many occasions that their governments are complicit in these illegal activities. The public accusations that emerged on Tuesday have a ring of truth to them. And no U.S. diplomat—or commander-in-chief for that matter—will want to be accused in the weeks ahead of turning a blind eye to allegations of drug corruption by Zelaya while they were busy putting him back where he can do some real damage to our security.

The accusations demand immediate scrutiny. Zelaya has been busy this week playing political martyr. But we need to know now how much of saint he ain’t.

President Obama ascended to office knowing little about Latin America. He’ll learn a thing or two from the current debate over Cuba’s readmission to the Organization of American States (OAS), under way now at the group’s annual assembly in Honduras. We’re about to learn whether his goal of “restoring American leadership” means merely running with the crowd.

The OAS is papered over with solemn pledges of upholding “representative democracy” and respecting human rights. Its Inter-American Democratic Charter, signed on the fateful day of September 11, 2001, imposes a clear definition of democracy as a condition of membership in the Inter-American System, including respect for human rights and fundamental freedoms; access to and the free exercise of power in accordance with the rule of law; the holding of periodic, free, and fair elections based on secret balloting and universal suffrage; a pluralistic system of political parties and organizations; freedom of expression and of the press; etc.

One would think that a Stalinist dictatorship in Cuba would not pass muster. Think again. More than two dozen of the 34 OAS member states have reportedly signed on to a draft to lift Cuba’s suspension unconditionally.

The U.S. delegation is pleading with other nations to adhere to the principles of the charter, but most of our Latin and Caribbean neighbors are just fine with handing President Obama a bitter defeat in the interest of solidarity with Fidel Castro. In a few short months, the euphoria over President Obama ushering in a new era of engagement with the region seems to have disappeared—demonstrating the limits of charisma.

Sad to say, President Obama invited this showdown by signaling his “get along, go along” approach at the April summit where he sat silently as leftist pygmies excoriated the United States for all of the region’s ills. When the State Department announced the resumption of anodyne migration talks with Cuba in the midst of the OAS debate, Latin diplomats surmised, “if they can talk, so can we.” Our democratic friends in Brazil, Chile, Mexico, Colombia, Peru, etc. must have concluded from President Obama’s summit performance, “If he isn’t willing to stand up to Chavez to defend democracy and U.S. leadership, why should we?”

Most genuine democrats in the region will see Cuba’s readmission to the OAS as the last act of self-immolation by a club of “states” that is less and less relevant to the people of the region. Our president should never shrink from taking a principled stand on the side of the people. Now, that’s leadership.

Roger Noriega

Castro, Sí, Cubanos, No?

By Roger Noriega

May 6, 2009, 8:09 am

House Ways and Means Chairman Charlie Rangel (D-NY) and U.S. Chamber of Commerce President Tom Donohue held a news conference Tuesday to announce their agreement on a single issue: unilateral concessions to the Castro regime will be good for Cubans. I like it better when these two guys are arguing.

As it happens, their prescription would be a disaster for the Cuban people. The good news is that President Obama says that he has pinned his Cuba policy on respect for human rights and political freedom and is looking for evidence of genuine change in Cuba before considering changes in U.S. sanctions.castro1

Mr. Donohue’s coalition pushed for U.S. agriculture sales to Cuba in 2000, and last year U.S. farmers sold about $700 million in exports to Cuba. He argued at the press conference that U.S. business could make a lot more money trading with the bankrupt communist island and, at the same time, would help undermine the very regime doling out these lucrative deals. Mr. Donohue must know that the Cuban regime has required some farm groups to sign accords committing themselves to working against U.S. sanctions. Are these fervent agents of change going to work against the regime that is cutting them sweetheart deals?   The fact is, one of the best arguments against resuscitating the Castro regime is that the island’s economy is bound to recover mightily once Cubans are truly free, and American business can cash in without sacrificing our principles or the fate of 11 million Cubans.

The question today is not whether to keep the embargo on Cuba but how you go about lifting it. Shall we make unilateral concessions to an illegitimate, abusive, and hostile regime that is clinging to power or shall we save that leverage to use with a transition government that might give Cubans their country back? Anyone who gives a hoot for the Cuban people would have no problem answering that question correctly.

On Sunday, Panamanian voters gave maverick conservative Ricardo Martinelli a 61-to-37 percent win over the ruling party candidate, Balbina Herrera. While one might read this result as a judgment that the country is on the wrong course, it is more of a rejection of the legacy of jailed dictator Manuel Antonio Noriega, with whom Herrera was closely identified. In fact, although Martinelli pledged “real change” and a crack down on crime, he is likely to keep the country moving up a free-market, pro-growth path after he assumes office on June 1.

Panamanians have a knack for using elections to alternate power between the left-leaning Democratic Revolutionary Party (PRD) of dictator Omar Torrijos and a cluster of conservative parties. For example, in 1998, despite the fact that Panamanians approved strongly of the performance of then PRD president Ernesto Perez Balladares, they soundly defeated a constitutional amendment to overturn the ban on presidential reelection. “We like him,” I recall a local telling me the day of the vote, “but we can’t allow a ‘civil dictatorship.’”

Voters subsequently elected opposition figure Mireya Moscoso, whose administration was marred with corruption and weak leadership. The PRD reclaimed the presidency in 2004, with the legendary Torrijos’s unassuming son, Martin, winning a plurality over a splintered opposition. Torrijos has governed these last five years as a centrist, pro-growth leader, and his administration’s policies have produced an impressive economic boom that is evident in the towering cranes that are transforming Panama City. When nearly 80 percent of voters voted 18 months ago to approve a $5.2 billion project to modernize the Panama Canal with a new set of locks to accommodate new vast freighters, the referendum was seen as a vote of confidence in the government. Torrijos used his popularity to win ratification of a free trade agreement with the United States, which is languishing in the U.S. Congress.

Just over a year later, the ruling party was divided by a bitter primary fight that led to Herrera’s victory amid cries of fraud. Allegations of corruption, a slowing economy (which had been galloping at 8 percent to 9 percent annual growth a few years ago), and Herrera’s historic ties to Noriega and to the meddling Venezuelan leftist Hugo Chavez resulted in a landslide for the outspoken Martinelli.

Panamanians should be proud at how they are using democratic elections and able management of the Canal (which one insightful U.S. diplomat told me they are “running as a business, rather than as a public utility”) to build a firm foundation for the future. The Obama administration can do more than issue a press release congratulating Panamanians on a clean election; it should also commit to getting the pending trade agreement through the Democratically-controlled U.S. Congress. Panamanians have earned that strategic partnership.


The American Enterprise Institute takes no institutional positions on policy advocacy or political campaigns. The views expressed on The Enterprise Blog represent those of the individual writers.

AEI