LatAm experiences eventful year in 2016

The year 2016 was eventful for Latin America as it hosted two eye-catching international events, saw a further detente between Cuba and the United States, and witnessed government changes in two major economies and some countries' struggle in recession.

The first Olympic Games and Paralymic Games in South America were held in August in Rio de Janeiro. Despite fiscal constraints, Brazil's federal and state governments made them a success, injecting confidence into not only Brazilians, but all Latin Americans.

"Latin America was in focus when the Olympic Games were held in Rio. This was the first time they were held in South America, which showed to the world the glamour of Brazil," said Evandro Carvalho, an international law expert at the Getulio Vargas Foundation of Brazil.

Three months later, the focus was shifted to Lima, where the 24th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting was convened, with regional decisionmakers putting forward the Free Trade Agreement for the Asia Pacific to counter the rising protectionism in the United States.

At the year-end, Colombia sealed its full peace accord with the country's leading rebel group, the Revolutionary Armed Forces of Colombia, ending the largest and longest civil war on the continent. The victory came after Colombian President Manuel Santos won the Nobel Prize for Peace and a dramatic referendum aborted the previous peace agreement.

"Progress has been made for the peace process of Colombia. The civil war lasted for a very long time in Colombia. Its solution will contribute to the peace and stability of the whole Latin America," Mauricio Santoro, professor of international relations at the Rio de Janeiro State University of Brazil, told Xinhua.

The peace pact was negotiated for four years in Cuba, which saw a detente with the United States, renewed political understanding with the European Union (EU) and expanded exchanges in various fields with Russia.

In November, Cuba was plunged into sadness by the death of its revolutionary leader Fidel Castro.

"Fidel Castro passed away last month, a symbol of the end of the 20th century. As the most renowned political figure in Latin America, he stood for the Cold War and the Cuban Revolution. His personal influence has not been confined to Latin America, but extended to many countries. His death means more changes in Cuba," said Santoro.

In 2016, Latin America also handled some difficulties, particularly economic recessions and political turmoils.

"There were difficulties and challenges for Latin America in 2016, primarily the economic and political crises in Brazil and Venezuela. Brazil is the largest country in Latin America, influencing the whole region in various regards, while the problems in Venezuela have led to regional instability," said Santoro.

Former Brazilian President Dilma Rousseff was impeached in August due to fiscal wrongdoings. Her successor Michel Temer has not managed to contain the wild recession, let alone the consecutive political scandals that implicate his cabinet members and parliamentarians.

Amid a soaring inflation and an extreme shortage of goods, Venezuelan President Nicolas Maduro is still vying against the opposition force, which controlled the National Assembly in January and remains determined to strip his presidency through a plebiscite.

"The economic cycle has already reversed, with commodity prices falling, and the economies of these countries are very dependent on these products (like minerals and oil). Clearly, it leads to two problems: economic problems and political problems," Mario Torrico, a political analyst at Mexico's research institute FLASCO, told Xinhua.

Meanwhile, for Mexico, the second largest economy on the continent, its exports have been overshadowed as U.S. President-elect Donald Trump repeatedly said he would renegotiate the North America Free Trade Agreement, almost the lifeline for the neighbor country.

On the political front, the so-called leftist governments of Brazil and Argentina were taken over by center-right leaders, arousing concerns that the elites will surge and the common welfare will be cut down.

In Brazil, the largest economy in Latin America, a 14-year-long ruling by the Workers' Party lifted millions to the middle class through extensive social welfares, but the new government is poised to cut such programs in the name of revitalizing the economy.

"Latin America managed to lift millions out of poverty, but now that the cycle is off. Poverty is likely to grow. People won't like to return to lower levels of well-being and, basically, what can happen is that political crises are on the rise," said Torrico.

The Economic Commission for Latin American and the Caribbean (ECLAC)predicted that the regional economy would contract by 0.9 percent in 2016. However, after a difficult year, the regional economic activity is expected to pick up in 2017 with an average growth of 1.5 percent, according to ECLAC.

Weighing the uncertainty, Latin America is looking for a way out, especially for trade and development, to counter the chill and tide over the recession.

Countries like Brazil, Argentina and Cuba resumed contacts with the United States and EU, while turning to the East for more markets, particularly the Chinese market.

"As Brazil's largest trade partner, China has maintained healthy trade ties with Latin America this year," said Santoro.

Carvalho echoed his view, saying: "I want to emphasize that the China-Latin American ties have been cemented this year and seen progress. The stable and consistent development of the ties will have a positive impact on our regional countries."

In the eyes of these analysts, a wiser and more confident China has become a beacon light for Latin America both economically and philosophically.

"China is now more open and confident in its national policy than some Western powers, which will surely bring changes to the global pattern," added Carvalho.

source: Xinhua