The Americas Blog

El Blog de las Americas

The Americas Blog seeks to present a more accurate perspective on economic and political developments in the Western Hemisphere than is often presented in the United States. It will provide information that is often ignored, buried, and sometimes misreported in the major U.S. media.

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U.S. media coverage of the passing of President Hugo Chávez has focused a great deal on the tributes and condolences of leaders of so-called “axis of evil” countries like Iran and Belarus. It has mostly ignored the eulogies coming from the governments of
U.S. media coverage of the passing of President Hugo Chávez has focused a great deal on the tributes and condolences of leaders of so-called “axis of evil” countries like Iran and Belarus. It has mostly ignored the eulogies coming from the governments of
The funeral for Venezuelan president, Hugo Rafaél Chávez Frías, was held the morning of Friday March 8th, at the Military Academy in Caracas, Venezuela. 55 countries sent delegations to the funeral. 33 of them were headed by presidents or heads of government. In a strong show of unity and support, every single one of Latin America’s presidents, and most of the Caribbean’s heads of state were present at Chávez’s funeral (though the presidents of Brazil and Argentina left early).  This is a turnout with few precedents. The death of U.S. President John F. Kennedy in 1963 brought together a total of 19 heads of state. The funeral of President Ronald Reagan in 2004 gathered 36 former and current heads of state. The death of Hugo Chávez brought together at least 38 former and current heads of state. The governments of Spain, France, Portugal, Lebanon, Finland, Sri Lanka, Vietnam, Australia, Syria, Greece, Ukraine, Croatia, Jordan, Slovenia, Turkey, Gambia, China, and Russia sent fairly high level delegations to represent their governments at the funeral. Spain’s royal heir, the prince of Asturias, attended, as did the General Secretary of the Organization of American States José Miguel Insulza, the Reverend Jesse Jackson –who spoke at the funeral, actor Sean Penn, and the much celebrated Venezuelan orchestra director Gustavo Dudamel, who missed one of his shows at the Los Angeles Philharmonic to direct the Simón Bolívar Symphonic Orchestra at the funeral. Though much of the major media has ignored this international show of recognition for the government of Hugo Chávez, these responses to his death are a clear affirmation of respect and acknowledgement for his legacy, from Latin America and around the world.
The funeral for Venezuelan president, Hugo Rafaél Chávez Frías, was held the morning of Friday March 8th, at the Military Academy in Caracas, Venezuela. 55 countries sent delegations to the funeral. 33 of them were headed by presidents or heads of government. In a strong show of unity and support, every single one of Latin America’s presidents, and most of the Caribbean’s heads of state were present at Chávez’s funeral (though the presidents of Brazil and Argentina left early).  This is a turnout with few precedents. The death of U.S. President John F. Kennedy in 1963 brought together a total of 19 heads of state. The funeral of President Ronald Reagan in 2004 gathered 36 former and current heads of state. The death of Hugo Chávez brought together at least 38 former and current heads of state. The governments of Spain, France, Portugal, Lebanon, Finland, Sri Lanka, Vietnam, Australia, Syria, Greece, Ukraine, Croatia, Jordan, Slovenia, Turkey, Gambia, China, and Russia sent fairly high level delegations to represent their governments at the funeral. Spain’s royal heir, the prince of Asturias, attended, as did the General Secretary of the Organization of American States José Miguel Insulza, the Reverend Jesse Jackson –who spoke at the funeral, actor Sean Penn, and the much celebrated Venezuelan orchestra director Gustavo Dudamel, who missed one of his shows at the Los Angeles Philharmonic to direct the Simón Bolívar Symphonic Orchestra at the funeral. Though much of the major media has ignored this international show of recognition for the government of Hugo Chávez, these responses to his death are a clear affirmation of respect and acknowledgement for his legacy, from Latin America and around the world.
On February 27, the office of the Compliance Advisor/Ombudsman (CAO) for the World Bank’s International Finance Corporation (IFC) launched an audit of the lending arm’s $30 million investment in Tegucigalpa-based Corporación Dinant, which produces palm oil and food products. The audit comes in response to widespread claims of violence, intimidation, and illegal evictions carried out by Dinant’s private security guards in Honduras’ Bajo Aguán valley, the center of the country's ongoing land struggle. In offering its resources and reputation to the company, the World Bank and its member countries are complicit in the deaths of countless innocent farmers. The COA’s review began just two days after the United Nations Working Group on the use of mercenaries urged the Honduran government “to properly investigate and prosecute crimes committed by private security guards and to ensure that victims receive effective remedies.” A delegation from the Working Group was in the country from February 18 to 22, when it met with government officials and representatives of civil society and the private sector, including security firms. The delegates voiced their particular concern about the “alleged involvement of private security companies hired by landowners in widespread human rights violations including killings, disappearances, forced evictions and sexual violence against representatives of peasant associations in the Bajo Aguán region.” Dinant is the largest single landholder in the region. An appointed panel of unnamed experts is currently convened in Washington, D.C., to review both the IFC’s adherence to its social and environmental policies and the role Dinant has played in the abuses. Many human rights observers consider the company’s owner, Miguel Facussé, to be one of the country’s most powerful men and hold him responsible for the killings of dozens of campesinos. The audit had been a long time coming. On November 19, 2010, the human rights organization Rights Action wrote a letter to the World Bank’s then-president Robert Zoellick demanding that the financial institution suspend its funding to Honduras. The group cited the “context of grave human rights abuses and lack of independence of the justice system” as grounds to withhold funding, and characterized support for Dinant as “a case of gross negligence of the World Bank's human rights and due diligence obligations.” In the letter, Rights Action also noted that “at least 19 farmers in this region have been killed in the context of conflicts with biofuel industry interests.” (In a new report released two weeks ago, the same group declared that 88 farmers and their supporters have been killed in Bajo Aguán since January 2010, most of them in targeted assassinations.)
On February 27, the office of the Compliance Advisor/Ombudsman (CAO) for the World Bank’s International Finance Corporation (IFC) launched an audit of the lending arm’s $30 million investment in Tegucigalpa-based Corporación Dinant, which produces palm oil and food products. The audit comes in response to widespread claims of violence, intimidation, and illegal evictions carried out by Dinant’s private security guards in Honduras’ Bajo Aguán valley, the center of the country's ongoing land struggle. In offering its resources and reputation to the company, the World Bank and its member countries are complicit in the deaths of countless innocent farmers. The COA’s review began just two days after the United Nations Working Group on the use of mercenaries urged the Honduran government “to properly investigate and prosecute crimes committed by private security guards and to ensure that victims receive effective remedies.” A delegation from the Working Group was in the country from February 18 to 22, when it met with government officials and representatives of civil society and the private sector, including security firms. The delegates voiced their particular concern about the “alleged involvement of private security companies hired by landowners in widespread human rights violations including killings, disappearances, forced evictions and sexual violence against representatives of peasant associations in the Bajo Aguán region.” Dinant is the largest single landholder in the region. An appointed panel of unnamed experts is currently convened in Washington, D.C., to review both the IFC’s adherence to its social and environmental policies and the role Dinant has played in the abuses. Many human rights observers consider the company’s owner, Miguel Facussé, to be one of the country’s most powerful men and hold him responsible for the killings of dozens of campesinos. The audit had been a long time coming. On November 19, 2010, the human rights organization Rights Action wrote a letter to the World Bank’s then-president Robert Zoellick demanding that the financial institution suspend its funding to Honduras. The group cited the “context of grave human rights abuses and lack of independence of the justice system” as grounds to withhold funding, and characterized support for Dinant as “a case of gross negligence of the World Bank's human rights and due diligence obligations.” In the letter, Rights Action also noted that “at least 19 farmers in this region have been killed in the context of conflicts with biofuel industry interests.” (In a new report released two weeks ago, the same group declared that 88 farmers and their supporters have been killed in Bajo Aguán since January 2010, most of them in targeted assassinations.)

In an article by William Neuman, the New York Times reports that “Venezuela had one of the lowest rates of economic growth in the region during the 14 years that Mr. Chávez held office, according to World Bank data.”

According to the latest IMF data, which is the same as World Bank data but includes 2012, Venezuela ranks 15th out of 33 countries in Latin America and Caribbean in GDP growth for 1999-2012.  Countries that grew slower than Venezuela during this period include Brazil, Mexico, El Salvador, Guatemala, Jamaica, Nicaragua, Paraguay, Uruguay and 10 other countries. 

In an article by William Neuman, the New York Times reports that “Venezuela had one of the lowest rates of economic growth in the region during the 14 years that Mr. Chávez held office, according to World Bank data.”

According to the latest IMF data, which is the same as World Bank data but includes 2012, Venezuela ranks 15th out of 33 countries in Latin America and Caribbean in GDP growth for 1999-2012.  Countries that grew slower than Venezuela during this period include Brazil, Mexico, El Salvador, Guatemala, Jamaica, Nicaragua, Paraguay, Uruguay and 10 other countries. 

On Tuesday, Venezuelan president Hugo Chávez passed away after 14 years in office. Below is a series of graphs that illustrate the economic and social changes that have taken place in Venezuela during this time period. 1. Growth (Average Annual Percent)Source: Banco Central de VenezuelaThis graph shows overall GDP growth as well as per-capita growth in the pre-Chávez (1986-1999) era and the Chávez presidency.From 1999-2003, the government did not control the state oil company; in fact, it was controlled by his opponents, who used it to try to overthrow the government, including the devastating oil strike of 2002--2003.  For that reason, a better measure of economic growth under the Chávez government would start after it got control over the state oil company, and therefore the economy.Above you can see this growth both measured from 2004, and for the 1999-2012 period. We use 2004 because to start with 2003, a depressed year due to the oil strike, would exaggerate GDP growth during this period; by 2004, the economy had caught up with its pre-strike level of output. Growth after the government got control of the state oil company was much faster.   2. Public vs. Private Growth – 1999-2012 (Average Annual Percent)Source: Banco Central de VenezuelaThis graph shows the growth of the private sector versus the public sector during the Chávez years.3. Inflation: Pre-Chávez vs. Chávez YearsSource: Banco Central de VenezuelaInflation in Venezuela, consumer price index.4. Unemployment Rate: Before and After Oil StrikeSource: Banco Central de Venezuela, INECAfter the oil strike (and the deep recession that it caused) ended in 2003, unemployment dropped drastically, following many years of increases before Chávez was elected. In 1999, when Chávez took office, unemployment was 14.5 percent; for 2011 it was 7.8 percent.
On Tuesday, Venezuelan president Hugo Chávez passed away after 14 years in office. Below is a series of graphs that illustrate the economic and social changes that have taken place in Venezuela during this time period. 1. Growth (Average Annual Percent)Source: Banco Central de VenezuelaThis graph shows overall GDP growth as well as per-capita growth in the pre-Chávez (1986-1999) era and the Chávez presidency.From 1999-2003, the government did not control the state oil company; in fact, it was controlled by his opponents, who used it to try to overthrow the government, including the devastating oil strike of 2002--2003.  For that reason, a better measure of economic growth under the Chávez government would start after it got control over the state oil company, and therefore the economy.Above you can see this growth both measured from 2004, and for the 1999-2012 period. We use 2004 because to start with 2003, a depressed year due to the oil strike, would exaggerate GDP growth during this period; by 2004, the economy had caught up with its pre-strike level of output. Growth after the government got control of the state oil company was much faster.   2. Public vs. Private Growth – 1999-2012 (Average Annual Percent)Source: Banco Central de VenezuelaThis graph shows the growth of the private sector versus the public sector during the Chávez years.3. Inflation: Pre-Chávez vs. Chávez YearsSource: Banco Central de VenezuelaInflation in Venezuela, consumer price index.4. Unemployment Rate: Before and After Oil StrikeSource: Banco Central de Venezuela, INECAfter the oil strike (and the deep recession that it caused) ended in 2003, unemployment dropped drastically, following many years of increases before Chávez was elected. In 1999, when Chávez took office, unemployment was 14.5 percent; for 2011 it was 7.8 percent.
Venezuelan Vice President Nicolas Maduro’s announced today that President Hugo Chávez had died at 4:25pm. According to Venezuela’s constitution [PDF], new presidential elections are supposed to be held within 30 days. The news could present an opportunity for an improvement in U.S.-Venezuelan relations, but that is unlikely. Earlier in the day, Maduro announced that the Venezuelan government would expel the U.S. military attaché for unsanctioned meetings with certain Venezuelan military officers. While this is of course a significant development in U.S.-Venezuela relations that marks yet further deterioration, unfortunately it seems safe to say that most U.S. media outlets will not provide the crucial context necessary in order to understand current relations and why they are so tense. Maduro mentioned the April 2002 coup d’etat in his press conference today. Declassified C.I.A. and other government documents reveal the U.S. role in that coup against Hugo Chávez. As Scott Wilson, former foreign editor at the Washington Post has explained: Yes, the United States was hosting people involved in the coup before it happened. There was involvement of U.S.-sponsored NGOs in training some of the people that were involved in the coup. And in the immediate aftermath of the coup, the United States government said that it was a resignation, not a coup, effectively recognizing the government that took office very briefly until President Chavez returned. I think that there was U.S. involvement, yes. (Video clip here. This information has however never been reported this fully in the pages of the Washington Post itself.)
Venezuelan Vice President Nicolas Maduro’s announced today that President Hugo Chávez had died at 4:25pm. According to Venezuela’s constitution [PDF], new presidential elections are supposed to be held within 30 days. The news could present an opportunity for an improvement in U.S.-Venezuelan relations, but that is unlikely. Earlier in the day, Maduro announced that the Venezuelan government would expel the U.S. military attaché for unsanctioned meetings with certain Venezuelan military officers. While this is of course a significant development in U.S.-Venezuela relations that marks yet further deterioration, unfortunately it seems safe to say that most U.S. media outlets will not provide the crucial context necessary in order to understand current relations and why they are so tense. Maduro mentioned the April 2002 coup d’etat in his press conference today. Declassified C.I.A. and other government documents reveal the U.S. role in that coup against Hugo Chávez. As Scott Wilson, former foreign editor at the Washington Post has explained: Yes, the United States was hosting people involved in the coup before it happened. There was involvement of U.S.-sponsored NGOs in training some of the people that were involved in the coup. And in the immediate aftermath of the coup, the United States government said that it was a resignation, not a coup, effectively recognizing the government that took office very briefly until President Chavez returned. I think that there was U.S. involvement, yes. (Video clip here. This information has however never been reported this fully in the pages of the Washington Post itself.)
Yesterday afternoon Venezuelan President Hugo Chávez passed away, after a long battle with cancer. The announcement by Vice President Nicolás Maduro came just minutes after Chávez’s death and elicited an immediate wave of obituary pieces by pundits who described Chávez as “divisive”, “authoritarian”, “antagonistic” and “anti-American”, many of them eager to rush the “transition” in the hopes that Chávez’s political project would soon fall apart.  In stark contrast with these predictable characterizations and demonization of Chávez in the major media is the response that Chávez’s death has elicited from his peers, fellow presidents from throughout the Americas. Tributes, messages of solidarity and heartfelt condolences came in from Central and South America, reaffirming support for the ideals of regional unity and independence promoted by Hugo Chávez during his 14 years as president of Venezuela. Very few media outlets noted the outpouring of sympathy from Latin American leaders. “He is more alive than ever, and will keep being the inspiration for all people fighting for liberation,” were the words of president of Bolivia, Evo Morales.  With his voice cracking and struggling to speak, Morales said that he was “hurt, devastated,” by the death of his “compañero and brother.” And repeatedly referred to the liberation of South America forged by Chávez saying that, “the best way to remember him is with unity, unity.” José Mujica, President of Uruguay, expressed the profound pain that Chávez’s death caused him: “Death is always felt, but when it is the death of a great fighter, one that I once defined as the most generous governor that I have ever met, the pain is on another dimension… Its magnitude is bigger than the loss.”
Yesterday afternoon Venezuelan President Hugo Chávez passed away, after a long battle with cancer. The announcement by Vice President Nicolás Maduro came just minutes after Chávez’s death and elicited an immediate wave of obituary pieces by pundits who described Chávez as “divisive”, “authoritarian”, “antagonistic” and “anti-American”, many of them eager to rush the “transition” in the hopes that Chávez’s political project would soon fall apart.  In stark contrast with these predictable characterizations and demonization of Chávez in the major media is the response that Chávez’s death has elicited from his peers, fellow presidents from throughout the Americas. Tributes, messages of solidarity and heartfelt condolences came in from Central and South America, reaffirming support for the ideals of regional unity and independence promoted by Hugo Chávez during his 14 years as president of Venezuela. Very few media outlets noted the outpouring of sympathy from Latin American leaders. “He is more alive than ever, and will keep being the inspiration for all people fighting for liberation,” were the words of president of Bolivia, Evo Morales.  With his voice cracking and struggling to speak, Morales said that he was “hurt, devastated,” by the death of his “compañero and brother.” And repeatedly referred to the liberation of South America forged by Chávez saying that, “the best way to remember him is with unity, unity.” José Mujica, President of Uruguay, expressed the profound pain that Chávez’s death caused him: “Death is always felt, but when it is the death of a great fighter, one that I once defined as the most generous governor that I have ever met, the pain is on another dimension… Its magnitude is bigger than the loss.”
The L.A. Times ran a very nice and uncommon report by correspondent Vincent Bevins about media bias in Brazil on Sunday.  The article notes that most of the major media is still controlled by the same handful of rich families who supported the military co
The L.A. Times ran a very nice and uncommon report by correspondent Vincent Bevins about media bias in Brazil on Sunday.  The article notes that most of the major media is still controlled by the same handful of rich families who supported the military co

Jonathan Schwarz, editor of MichaelMoore.com, wrote a brilliant takedown last week of Sean Wilentz, historian and friend of Hillary Clinton who was angered by Oliver Stone and Peter Kuznick’s Untold History of the United States.  Wilentz’s long diatribe against Stone and Kuznick’s book (also a 10-part film series on Showtime) in the New York Review of Books isn’t much worth reading.  He never really challenges the main thesis of Stone and Kunzick that, with his generally unprovable and superficial objections, he is trying to undermine: that the United States is really an empire, and that empire has been, and remains today, the driving force of U.S. foreign policy; and that actual “national security” concerns have only rarely had anything substantial to do with our wars and assaults on other peoples, including involvement in dictatorships, the overthrow of democratically elected governments, and even genocide. (Stone and Kuznick’s response is here.)

But Schwarz’s response is a very nice read. He nails it when he says that if Cold War liberals like Wilentz were right,

“U.S. cold war policies should have ended with the cold war itself. If the leftists were right, U.S. policies would have continued almost completely unchanged – except for the pretexts provided to Americans.”

A couple of billion people or so throughout the world understand how that turned out. But Schwarz hammers it home because it is apparently not so clear among some intellectuals and journalists here in the heart of the “free world.”

Cold War liberalism was a curse during the Cold War, and remains so today.  It is the dominant framework in discussions about Latin America today, and not just on the right – which conjures up fantasies about left-leaning Latin American countries supporting terrorist camps with Iran – but also among the liberal foreign policy establishment that occupies most of the media space.  In 2009 almost all of these liberals, including journalists, editors, and prominent human rights groups, looked the other way when Washington helped the coup-installed government of Honduras legitimize itself.  Most of them even pretended that the Obama administration was trying to help restore democracy, when there was a mountain of evidence to the contrary.  The deposed, democratically-elected president Mel Zelaya eventually told the world that the Obama administration was actually behind the coup, and there is every reason to believe him, given all the circumstantial evidence.  But don’t expect any investigations or even investigative reporting to shed more light on what the Obama administration actually did to support the coup.

The good news is that Washington today is mostly limited to preying upon weakest, poorest countries in this region, like Honduras and Haiti.  Most of the rest of the region, for the past 15 years, has finally been free to elect their own governments without a U.S. veto.  But we can’t thank Cold War liberals like Sean Wilentz – who felt compelled to raise questions about Obama’s relations with Jeremiah Wright and Bill Ayers during the 2008 presidential campaign – for that progress.  This positive change is due to the fact that their friends have lost power in the hemisphere and the world. 

Jonathan Schwarz, editor of MichaelMoore.com, wrote a brilliant takedown last week of Sean Wilentz, historian and friend of Hillary Clinton who was angered by Oliver Stone and Peter Kuznick’s Untold History of the United States.  Wilentz’s long diatribe against Stone and Kuznick’s book (also a 10-part film series on Showtime) in the New York Review of Books isn’t much worth reading.  He never really challenges the main thesis of Stone and Kunzick that, with his generally unprovable and superficial objections, he is trying to undermine: that the United States is really an empire, and that empire has been, and remains today, the driving force of U.S. foreign policy; and that actual “national security” concerns have only rarely had anything substantial to do with our wars and assaults on other peoples, including involvement in dictatorships, the overthrow of democratically elected governments, and even genocide. (Stone and Kuznick’s response is here.)

But Schwarz’s response is a very nice read. He nails it when he says that if Cold War liberals like Wilentz were right,

“U.S. cold war policies should have ended with the cold war itself. If the leftists were right, U.S. policies would have continued almost completely unchanged – except for the pretexts provided to Americans.”

A couple of billion people or so throughout the world understand how that turned out. But Schwarz hammers it home because it is apparently not so clear among some intellectuals and journalists here in the heart of the “free world.”

Cold War liberalism was a curse during the Cold War, and remains so today.  It is the dominant framework in discussions about Latin America today, and not just on the right – which conjures up fantasies about left-leaning Latin American countries supporting terrorist camps with Iran – but also among the liberal foreign policy establishment that occupies most of the media space.  In 2009 almost all of these liberals, including journalists, editors, and prominent human rights groups, looked the other way when Washington helped the coup-installed government of Honduras legitimize itself.  Most of them even pretended that the Obama administration was trying to help restore democracy, when there was a mountain of evidence to the contrary.  The deposed, democratically-elected president Mel Zelaya eventually told the world that the Obama administration was actually behind the coup, and there is every reason to believe him, given all the circumstantial evidence.  But don’t expect any investigations or even investigative reporting to shed more light on what the Obama administration actually did to support the coup.

The good news is that Washington today is mostly limited to preying upon weakest, poorest countries in this region, like Honduras and Haiti.  Most of the rest of the region, for the past 15 years, has finally been free to elect their own governments without a U.S. veto.  But we can’t thank Cold War liberals like Sean Wilentz – who felt compelled to raise questions about Obama’s relations with Jeremiah Wright and Bill Ayers during the 2008 presidential campaign – for that progress.  This positive change is due to the fact that their friends have lost power in the hemisphere and the world. 

On Friday, February 22, Canadian Broadcasting Company (CBC) Radio’s The Current aired a nearly half-hour story about the Honduras government’s plans to create private, so-called “charter cities.” The show’s featured guest was Honduras president Pepe Lobo’s chief of staff, Octavio Sánchez. For some background, just days after the 2009 coup, Sánchez penned an opinion piece for the Christian Science Monitor in which he argued that democratically elected president Manuel Zelaya’s exile at gunpoint was constitutional. More recently, Sánchez has worked feverishly to make the same case for charter cities. Sánchez’s pitch was briefly contested with a sound bite from Keane Bhatt, creator of the blog Manufacturing Contempt. Bhatt called the plan “social engineering at the behest of an international group of investors,” a point on which he elaborated in an article in the current print edition of the NACLA Report on the Americas. Also, later in the show Rights Action’s co-director Grahame Russell debated the merits of the proposed private cities with Carlo Dade, a professor at the University of Ottawa who endorses the concept. As has been examined elsewhere, the charter cities concept is attributed to NYU economics professor Paul Romer, who envisions it as a path toward a rules-based, law-abiding society. In practice, though, the idea would take advantage of Honduras’ institutional breakdown to invite private corporations to build new cities on already-inhabited land, and to establish lax legal systems and tax codes to further attract foreign capital for low-cost production. Critics, such as economics professor and former Executive Director of the Institute for Fraud Prevention William K. Black, say the charter cities would lead to greater inequality. “Oligarchs . . . see this as yet another way to increase their wealth at the expense of other folks,” Black explained on Al Jazeera’s Inside Story Americas earlier this month. Last September, Romer unexpectedly removed himself from the project after the Honduras government signed its first agreement with a group of private investors, a process which Romer claims should have first been approved by the transparency commission of which he was an appointed member (though the body was never formalized due to challenges in the Supreme Court). The NYU professor considered this an unforgivable affront and divorced himself from his nearly realized utopia.
On Friday, February 22, Canadian Broadcasting Company (CBC) Radio’s The Current aired a nearly half-hour story about the Honduras government’s plans to create private, so-called “charter cities.” The show’s featured guest was Honduras president Pepe Lobo’s chief of staff, Octavio Sánchez. For some background, just days after the 2009 coup, Sánchez penned an opinion piece for the Christian Science Monitor in which he argued that democratically elected president Manuel Zelaya’s exile at gunpoint was constitutional. More recently, Sánchez has worked feverishly to make the same case for charter cities. Sánchez’s pitch was briefly contested with a sound bite from Keane Bhatt, creator of the blog Manufacturing Contempt. Bhatt called the plan “social engineering at the behest of an international group of investors,” a point on which he elaborated in an article in the current print edition of the NACLA Report on the Americas. Also, later in the show Rights Action’s co-director Grahame Russell debated the merits of the proposed private cities with Carlo Dade, a professor at the University of Ottawa who endorses the concept. As has been examined elsewhere, the charter cities concept is attributed to NYU economics professor Paul Romer, who envisions it as a path toward a rules-based, law-abiding society. In practice, though, the idea would take advantage of Honduras’ institutional breakdown to invite private corporations to build new cities on already-inhabited land, and to establish lax legal systems and tax codes to further attract foreign capital for low-cost production. Critics, such as economics professor and former Executive Director of the Institute for Fraud Prevention William K. Black, say the charter cities would lead to greater inequality. “Oligarchs . . . see this as yet another way to increase their wealth at the expense of other folks,” Black explained on Al Jazeera’s Inside Story Americas earlier this month. Last September, Romer unexpectedly removed himself from the project after the Honduras government signed its first agreement with a group of private investors, a process which Romer claims should have first been approved by the transparency commission of which he was an appointed member (though the body was never formalized due to challenges in the Supreme Court). The NYU professor considered this an unforgivable affront and divorced himself from his nearly realized utopia.

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