The "Golden Opportunity" for the South - Foxconn

Employees work on the assembly line at the Foxconn plant in Shenzhen, China.
Photograph: Bloomberg via Getty Images

China's wage hikes could benefit Americas
The Miami Herald

By Andres Oppenheimer

March 3, 2012
Citation: http://bit.ly/wagehikes

Good news for Latin America: wages in China, Vietnam and other Asian countries are rising faster than expected, leading growing numbers of multinational firms to move their manufacturing plants to Mexico and other countries closer to the U.S. market.

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According to economists, Chinese salaries are destined to increase for decades to come with the growing appreciation of Chinese currency, higher educations standards, and a declining workforce.  Most multinational companies will keep plants in China to serve the domestic market as well as neighboring countries in Asia, but will move their export-oriented plants to other parts of the world. The author contends: “Either way, Asia’s rising wages present a fabulous opportunity for Latin America.” He argues in order to lure foreign manufacturing plants and to export increasingly sophisticated goods and services to China, Mexico and Central America will have to reduce their violence rates, and all Latin American countries will have to dramatically improve their education systems, which currently lag far behind those of their Asian competitors. He concludes that Latin American countries that take advantage of this golden opportunity will do great in coming decade and they will have Asia’s rising wages to thank.

In order to persuade China to move plants to Latin America, these countries will have to make adjustments to their educational initiatives to develop a workforce capable of providing these “sophisticated” goods and services. I would argue it is too soon to know what these educational adjustments will look like, but not everyone thinks China’s economic involvement in Latin America is a positive according to an article by Univision: “China in Latin America: Should we be worried?” The article points out China’s investment in Latin America has increased 400% during the past decade which creates a new reliance on Chinese commodity demand and China’s state-run companies, and now additional goods and services. This “golden opportunity” sounds more like a dependency model and its affect on education will run deep. Will Mandarin be the second language of the next generation in Brazil? Will vocational studies focus more on technology? Will China take over in the exploitation of Latin American? The Univision article argues this isn’t a “win-win” situation because Chinese companies do not have to follow the same rules as those from the U.S., Europe, or even Latin America leading to general corruption and increases the likelihood of bribery, smuggling, and poor environmental practices. I conclude Latin American should access this opportunity wisely before overhauling educational practices to cater specifically to the Chinese economic demands.  

The Progress of Education in Latin America

Photograph: Manu Dias/AGECOM Bahia

Moving Latin American Education Forward

Latin Business Chronicle

February 15, 2012

By Gabriel Sanchez Zinny
Citation: http://tinyurl.com/7jahvuo

In the last few decades, Latin America has fared poorly in various international educationtesting assessments. The most well-known, the Program for International Student Assessment, administered by the OECD most recently in 2009, only included nine countries in the region, but the results were not encouraging, as these nine participants finished somewhere between 44th and 63rd place, out of 65 countries tested. Chile placed at the top of the region, with Uruguay close behind, but both countries still ranked well below average. However, there are encouraging signs of education reform in Latin America, and they provide a foundation for improving education throughout the region—a daunting but feasible and necessary task.

Article clipped; see link above for full version

Despite the low grades that Latin America has received on international education testing assessments, there has been a surge in funding for education throughout the region. In the past several years, Latin America nations have, individually, spent about $200 billion per year on education and as a region has received more than $5 billion from multi-lateral organizations. Their approach to education has also recently changed. Once focused on school attendance and retainment of students, ministries of education are now concentrating on investing in the quality of schools. Primarily they are beginning to follow the models of their fellow global nations like Singapore, Finland, and South Korea. Studies in these countries have shown that teachers are the essential school based factor that influences achievement rates of students.

As a result of the large amount of funds required to propel these ventures, Latin America have seen a new set of investors join the education scene. Business companies and other organization have stepped up in order to address these educational woes, providing support when public sectors do not have the resources or capital. Organizations like Argentina's EducAr 2050, Mexicanos Primeo, and Brazil's Todos Pela Educacao, are promoting the value of stronger curricula and effective teachers by integrating improved management skills and introducing technology into the classroom. It is the hope of these regional programs and initiatives to not only provide better support to the education system, but to also improve the learning conditions and quality of education for future generations.

When I initially read this article I was skeptical of Latin America's tactics to solve their problems with the quality of education in their respective countries. Immediately their intentions were good, to invest large sums of money in their education system. However their quick reactions only fulfilled their short term goals. When Latin American countries' focus shifted from short term to long term, they refined their approach and found global models that produced the results that they desired. Even then I was wary of their choice to have outside education systems be the model of achievement for their own. The last time I read an article about Latin America modeling other more "developed" nations' education systems, it ended in protesting on the streets in Chile (see my post Hidden Strife within Chile's Education System). However I was pleasantly surprised that, unlike the case of Chile, less government involvement and more private initiative seem to not only support the financial aspects of education reform, but also the personal side of education.

For me this article touched upon many of the same issues and concerns seen in Jaime's post The Case for Local Business Support for Education in Nicaragua. These companies took an interest in promoting education reform not just because it would improve the achievement of students, but that improving the quality of education now could lead to many other long lasting results. The benefits that society could reap from these investments could transcend present time and support the success of future generations. While this article focused more on national organizations rather than local ones, I feel that the concepts are very much similar. This sense of nationalism and pride propelled these organizations to take a calculated risk and invest in the future of their country's education system in hopes that the results generated would indeed produce an overall benefit to society and not just improve one set of achievement statistics.

Hidden Strife within Chile's Education System

Photograph: Juan Carlos Cardenas/EPA/Landov

Chile student protests point to deep discontent

BBC News, Santiago

August 11, 2011

By Gideon Long

Citation: http://tinyurl.com/3udmf46

Chile is usually regarded as one of the most orderly and stable countries in South America, so the images that have come out of the capital, Santiago, in recent days have been especially shocking.

Thousands of high school and university students have marched through the capital's streets, as well as those of other major cities, demanding a radical overhaul of the education system.

Invariably the demonstrations have ended in violent clashes between masked youths and police officers armed with tear gas and water cannon.

The scenes have been reminiscent of the pro-democracy protests of the 1980s, when Chileans clashed with the forces of General Augusto Pinochet.

Article clipped; see link for full version.

On several occasions in August of 2011, thousands of Chilean students and citizens took to the streets to protest the nation's current education system. For such a "stable" Latin America country, the protests turned quickly violent as Chileans and police clashed ultimately ending in hundreds of arrests and injuries to citizens, policemen, and property. The backlash that the Chilean education system finally received has been masked by its relatively high educational standards in comparison to its Latin American neighbors. However, citizens believe that there are deeper inequalities being perpetuated by the education system. A large blame for these inequalities is placed on the structure of schools. The majority of schools in Chile are privately run, either tuition or voucher based, a much smaller percent are state-run institutions. The unavailability of financial resources amongst Chile's poor and lack of public education has, in the eyes of Chileans, given an unfair advantage to those wealthier citizens. Their call for an end to for profit education has been met by the Chilean government with skepticism and insistence that this demand cannot be met. With the government’s current plan to re-organize and their approval rate rapidly declining, they will have to confront this issue of “educational apartheid.”

Taking a closer look at this issue in Chile, one can see how the social oppressions occurring throughout society have transcended into a contentious problem. From a Neo-Marxist perspective, despite the economic growth that Chile has experienced in the last 10 years, Chilean citizens feel that that the education system has either stagnated or deteriorated during that same time span. When one considers that the increase in revenue could have been put to use to further improve the nation and address the social concerns of its public. Some analysts figure that Chile's embrace of a radical free market has caused this led to a general sense of unease despite the revitalizing affect that it has had on the economy. This makes one questions whether economic success and wealth can in reality lead to development in the face of such social oppressions.

Another point to be learned from this case study is the government's tactic to resolve this issue. Ministry leaders claim that the education system is indeed flawed, but insists that it is not a failure. They look to reorganize the system after successful European models that do have a fair distribution of private and publicly funded schools. However, the nations that they are looking towards as examples, the Netherlands and Belgium, do not have the underlying socio-economic inequalities that are present in Chilean society. My question to the Chilean government would be how do you plan on addressing the central issue, the socio-economic gap, if the model you are recreating does not have and did not address such an issue? Especially since your attempt to model other country's economies has not helped your overall nation's situation. Clearly this social unrest is speaking to larger volumes of underlying issues present in society and something is going to eventually give.

Venezuelan and Iranian Involvement in Nicaragua: Benevolence or Strategy?

Ortega, Chavez, and Ahmadinejad share smiles and a handshake.

Nicaraguan's Worry About Ortega's Foreign Friends

By Dave Graham

Reuters

January 17, 2012

Citation: http://tinyurl.com/893sp2v

MANAGUA (Reuters) - Nicaragua's left-wing President Daniel Ortega has won over many critics at home with a successful drive to cut poverty and spur business-friendly policies in Central America's poorest country. But his choice of friends abroad makes many Nicaraguans worry that the former guerrilla and Cold War icon is dragging down the country's reputation and unnecessarily antagonizing the United States and other Western countries.

Article clipped, see link for details

Nicaraguan President Daniel Ortega recently won his second straight term thanks to his efforts to ameliorate poverty in Nicaragua, with the help of Venezuelan oil money. Both Venezuelan President Hugo Chavez and Iranian President Mahmoud Ahmadinejad were present at Ortega’s inauguration. However, Nicaraguans fear that these relationships are negatively impacting the country and affecting global opinion about Nicaragua. Many Nicaraguans indicated that Ortega fails to think for himself; rather, he is merely Chavez’s puppet. Others voiced concerns over the motives for increased Venezuelan influence in Nicaragua. As of recently, Chavez has contributed money to provide water, electricity, and housing for this impoverished country. The question is, to what end? Regarding increased Iranian involvement in Nicaragua, many Nicaraguans fail to see what benefits Nicaragua will accrue in engaging in such close relations with Iran, a nation that has recently added fire to the global flames with its nuclear program, and one who has also yet to provide any monetary aid to Nicaragua.

First off, there are many ways to define global interconnectedness. The past few years, Iran has strategically cultivated friendships with several Latin America countries, namely Cuba, Venezuela, and Nicaragua. The recent launch of an Iranian Spanish television channel (see: http://www.bbc.co.uk/news/world-middle-east-16809053) and the visit of Iranian President Ahmadinejad to four Latin American countries in early 2012 definitely indicate strategic Iranian involvement in Latin America. While this involvement does not scream of the stereotypical neo-imperialistic efforts of the West in Africa, I cannot help but see the similarities. I mean, Iran’s involvement in Latin America is definitely for its own self-interest. Given Western frustrations with Iran’s nuclear program, Ahmadinejad may be using his Latin American ties to win favor and garner more support for his country who, in the midst of the potential conflict in the Straight of Hormuz, is not quite in global favor. Iran needs some friends right now, and Ahmadinejad is shopping in Latin America.

As the article indicated, the U.S. has issued its perception of the situation, namely that Iran is creating strategic friendships with allies in America’s backyard (big surprise there). But even more significant are the Nicaraguan voices protesting the relationship between Nicaragua and Iran. Obviously, any ‘development’ aid that Iran would provide to Nicaragua would just be a ruse to buy Nicaraguan support. It is strategic because Iran could subversively provide money, which impoverished Nicaragua definitely needs and wouldn’t turn down, and later cash in on that. After all, nothing comes without a price. In my opinion, Iran is using ally partnerships and the promise of future funds to take advantage of Nicaragua. Whatever Iran’s motives are in Latin America, they obviously do not have the best interest of Nicaraguans in mind, which reminds me in a bizarre way of neo-colonialism.

What I also found interesting was the connection between Venezuela and Nicaragua, and the point raised by Nicaraguans about what Chavez’s interests truly are in Nicaragua. It is hard to determine why Venezuela is so deeply imbedded in Nicaraguan affairs, but again, I liken it to a subversive strategic way to ensure that Nicaragua, a country riddled with poverty, is always indebted to Venezuela. In potentially another stretch, this relationship between Nicaragua and Venezuela reminds me of Dependency Theory in the way that Venezuela is perpetuating Nicaraguan dependency by providing Chavez’s petrodollars to help battle Nicaraguan poverty.