Summer 2012

For today’s post, I plan on talking about my plans for summer 2012.  Though nothing is concrete, I do have a general idea of what it is I would like to do this coming summer. 

Go to Chile.

How you may ask? Good question.  You see, the USC Dornsife College of Letters, Arts and Sciences has a program titled S.U.R.F., the Summer Undergraduate Research Fund.  With this research stipend which can range up to $3000, I have the opportunity to travel to any country I choose to, or stay in the United States, and conduct research on whatever issue I desire.  The stipend may be utilized to pay for equipment, travel, living expenses, fees and/or other costs that are related to my research work.

Why Chile you may ask? Chile is in an interesting position at the moment.  I’ll be truthful from the get-go and let you know that I am no expert on Chile, far from one actually. I am aware of what has been occurring in the country though.  For the past couple of months, student-led protests have been demanding an innovative framework for education in Chile, a new public education system that will help do away with the high level of inequality in the country.

My plan is to go to the country and interview student protestors, professors and anyone else with a knowledgeable opinion on the topic.  I would like to know what exactly incited these huge, nationwide protests, what has the progress been, what has motivated them to continue to protest after months and what is their ultimate, realistic goal.  My inquiry will not end there though.  Upon gathering all the necessary information, I will conduct an analysis.  Not only will I reflect on my findings, but I will also compare them.  I will compare the protests in Chile to the ones in California.  Nearly two years ago, students protested against the University of California and other public higher-education tuition fee hikes.  The protests seceded after some time with questionable success.  The tuition hikes, on the other hand, remained.  Tuition went up and after a while, students seemed fine with it.  The original push to do away with higher tuition washed away with time.

This is the relationship I would like to study.  I am not an expert right now and I do not expect to be after conducting the research.  I do hope to gain a better understanding of the mentality that drives the students of Chile and compare it to that of those of the United States.  

USC Alternative Spring Break: Honduras

          Today I interviewed for the USC Alternative Spring Break in Honduras.  The Alternative Spring Break program offers students, staff and faculty the opportunity “to engage in service learning and volunteerism in communities outside the Los Angeles area.”  Last year, I was able to attend the ASB trip to Isla Mujeres and Isla Contoy, Quintana Roo, Mexico, both islands off the coast of Cancun.  This trip focused mainly on studying the impact of tourism on Isla Mujeres meanwhile partnering with local schools to do environmental clean-ups, provide English workshops and other beautification projects for the schools and islands.

The purpose of this post is not to highlight how amazing this trip was though, instead, it’s to continue the conversation on the underlying theme for both trips.

THE EFFECTS OF GLOBALIZATION IN LATIN AMERICA

As I mentioned, the purpose of the trip to Isla Mujeres was to gain knowledge on the impact of tourism on the islands and to spread awareness upon reflection. After spending only a week on both islands, it was interesting to realize that the dynamic of the island had been drastically changed due to tourism and the construction of massive beach houses for those Americans wishing to retire there.  Isla Mujeres has been split into two parts essentially, one side for retirees and the other for natives.  The island has an extreme focus on tourism, a huge economic factor for the island, and so I worry for the preservation of the genuine culture of the natives.

The focus for the Honduras trip is different.  We will study social entrepreneurship and how that serves as a remedy to many of those who are disenfranchised.  While there, we will visit “coffee farmers who have previously struggled with agricultural technology and unfair, unethical business practices.”  At the same time though, we will gain knowledge on how the social enterprise has drastically bettered the lives of many of these coffee farmers. 

             I don’t drink coffee, although I do like the smell of it, but that had no weight on my decision to apply to this trip.  This opportunity will provide me with the quintessential experience to broaden my knowledge and to help spread awareness on this issue.  Service learning is a hands-on-approach of providing service to a community meanwhile gaining knowledge and wisdom upon reflection.  What better way to study globalization than to go to the actual fields of coffee and listen to the perspective of “that” group which is rarely heard. As the integration of national economies forms into this global economy, the effect of this takes its toll on those less privileged, and so I would like to hear them out.

            Yes, you have a majority of economist who argue that globalization is a wonderful thing, but it will be interesting to hear how globalization has impacted these people of Honduras, one of the least developed countries in Latin America.

Here's a video for you:

Free Trade Agreements

On Wednesday October 12, 2011, Congress Republicans and Democrats passed three free trade agreements with bipartisan consensus.  South Korea, Colombia and Panama now offer the U.S. the hope for more economic growth as liberalized trade policies eliminate tariffs, barriers and other policies whose aims are to protect domestic manufacturers.

Interestingly enough, and at no surprise of course, controversy was amidst the passage of these three deals.  Concerns over the treatment of unions in the country of Colombia were raised, yet it passed 262 to 167 in the House and 66to 33.  Colombian goods will now be cheaper in the United States. 

“Labor, human rights and several consumer groups haveopposed the agreements… Supporters of the agreements note that they werereshaped under the Obama administration to address some concerns, withprovisions added dealing with auto tariffs in South Korea, labor rightsguarantees from Colombia and assurances about tax transparency in Panama.”

Now, I’m not an expert in the Free Trade Agreements signed, nor have I read them, but they warrant much attention.  Yes, liberalized trade policies may lead to economic growth, but at what costs? A huge concern is over the possible loss of thousands of American jobs, but what about the treatment of the Colombian workers?  Will they remain working under the same conditions? What about their income, will that change?  Ultimately, how will these Free Trade Agreements affect their daily lives?

In moments like these, I may sound extremely cynical but the truth is that it’s better than being naïve.  Of course, the North American Free Trade Agreement has not gone a single day without criticism.  Corporate interests outweigh everything else and at the end of the day, self-interest wins.  Everyone wishes to maximize self-interest as they rationalize personal utility. 

So what of Colombia, Panama and South Korea? I suppose only time will let us know the effects of these new policies.  ‘Till then, let’s see where globalization decides to make its presence at next.

"We live in an interconnected world"

Luis Alberto Moreno, the President of the Inter-American Development Bank, interviewed withThe Economist and touched on several important points when it comes to Latin America, it's future, development and growth.  He mentioned it’s a tense time for the global economy, indeed it is.  Though it’s not really Latin America who we should worry about, it’s the shocks outside Latin America that can affect Latin American economies.

Latin American domestic markets have grown largely with little inflation.  Many of these countries also have extremely large amounts of reserves and small deficits. 

 He mentions that it’s clear that Europe needs to straighten things out.  From the IMF meetings we should see them as the decision making unit.  Shocks in a stock market across the world will certainly be felt on the other side.  Personally, I’m interested to see what comes out of these debates.

To end the interview, Moreno spoke on the development challenges in Latin America.  INFRASTRUCTURE and HUMAN CAPITAL.  How can these countries invest only 2% of their GDP on infrastructure? Infrastructure is extremely important in attracting Foreign Direct Investment, so why not focus more on developing it?

Better infrastructure + Foreign Direct Investment = more capital flow in your country (I don’t believe there’s anything entirely wrong with that)

We then reach the human capital challenge: the quality of education which should lead to betterment in the quality of innovation in the sense of technology.

Both great challenges but I have faith that with Mr. Moreno’s efforts and with the collaboration of the Latin American countries, both of these challenges will be surpassed.

Finally, Latin America has undergone a great evolution, the “advent of democracy” as Moreno puts it.   With this inevitably comes trade liberalization.

Trade liberalization is an interesting topic.  After watching this interview, I can’t help but question the future of Latin America? When will it experience negative effects due to trade liberalization? I hope to continue seeing much development and growth in these countries.  It’s clear that countries like Brazil, Chile, Uruguay and Costa Rica are doing something right.  Let’s wait and see what the future holds for the rest of Latin America.