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Im-Politic: More Evidence That it Really is a Biden Border Crisis

03 Sunday Jul 2022

Posted by Alan Tonelson in Im-Politic

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Alejandro Mayorkas, Biden, Biden administration, Biden border crisis, Central America, El Salvador, Gallup, Guatemala, Honduras, Im-Politic, Immigration, Mexico, migrants, migration, Northern Triangle, polling

If there’s something that “everybody knows” about the floods of Latin Americans who keep trying to migrate to the United States, legally and not, it’s that they’re acting out of desperation because their countries are such terrible places to live. As stated just this morning by Alejandro Mayorkas, U.S. Secretary of Homeland Security, in the wake of news that 53 migrants found dead in the back of a sweltering tractor trailor that had snuck them across the U.S.-Mexico border paid the ultimate price for risking the dangerous journey northward:

“The migration that is occurring throughout the hemisphere is reflective of the economic downturn, increase in violence throughout the region, the — the result of the COVID-19 pandemic, the results of climate change.”

Surely the perils that have long faced Latin Americans (and many others) seeking new lives in America have been grave, and the living conditions (and physical dangers) in their home countries have often been appalling.

But what, then, is the explanation for four straight years of polling data from Gallup that consistently show the populations of some of the leading sending countries to be among the happiest on earth?

Recently, through an annual series of Global Emotions Reports, Gallup has tried to measure “positive and negative experiences” in most of the world’s countries to determine their people’s “day-to-day emotional states – such as enjoyment, stress, or anger – as well as their satisfaction with their lives.” Countries are then scored on a scale of 100, with the highest marks indicating where people by an average of these measures are happiest. (See here and here for these descriptions.) 

So it’s more than a little interesting that for most of the last four years (through 2021), the world’s happiest countries have included El Salvador, Guatemala, Honduras, and Mexico. Because, after all, the first three comprise Central America’s “Northern Triangle,” and collectively become the source of the largest number of immigrants arrested at the U.S.’ southern border as of fiscal year 2021. The latter remains the country that’s generated the most arrestees of any individual country. Here are the annual results from Gallup, including their score on that 100 scale and their global ranking.  (For links to the downloadable 2018-2020 reports and the 2021 report, see here.)  

                                    2018              2019            2020            2021

Guatemala                 3d (84)         2d (84)     not surveyed       n/a

Honduras                   4th (83)         5th (81)     not surveyed   3d (82)

El Salvador                4th (83)         2d (84)        1st (82)         3d (82)

Mexico                      3d (84)          4th (82)           n/a               n/a

As is clear, Honduras and El Salvador have been among the top five happiest countries for three of these four years. Mexico and Guatemala made this list in 2018 and 2019.

Unfortunately, when it comes to 2020, Guatemala and Honduras were not surveyed. And because Gallup hasn’t provided the scores and rankings for every country it’s studied, no results were available for Mexico in 2020 and 2021, and for Guatemala in 2021.

But as Gallup noted in 2020, “While several of the countries that usually top the list every year, including Panama, Honduras and Guatemala, were not surveyed in 2020, the region is still well represented on the Positive Experience Index. El Salvador leads the world with an index score of 82.” So it sounds like the pollsters believe that countries for which data is missing or not reported stayed pretty happy.

Also striking – the happiness scores of these four major sending countries were not only among the world’s highest. They were way above the global averages, which respectively were 71, 71, 71, and 69.

Polls, as I’ve repeatedly said, are by no means perfect, and polling in developing countries can be especially tricky because inhabitants often do live in dangerous environments where even the authorities (and often especially the authorities) can’t be trusted.

But these Gallup results are consistent over several years. And they are so at odds with the conventional wisdom about the deep-seated socio-economic reasons for hemispheric migration that they seem to add to the evidence that the recent surge stems less from changes in those root causes — or perhaps from these root causes at all (as opposed to seeking improvement, not survival or freedom) — and more from the more permissive immigation measures and rhetoric emanating from the current U.S. administration from Day One. That is, the recent situation really is a “Biden border crisis.”

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Im-Politic: Biden’s Latest Americans Last Immigration Policy

28 Friday May 2021

Posted by Alan Tonelson in Im-Politic

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America First, Biden, Border Crisis, border security, Central America, Chobani, cities, corruption, crime, El Salvador, foreign aid, gang violence, governance, Guatemala, Honduras, Im-Politic, immigrants, Immigration, inequality, Kamala Harris, Mastercard, Microsoft, migrants, Northern Triangle, racial economic justice, urban poverty

As known by RealityChek regulars, I’m deeply skeptical that the Biden administration can bring migrant flows from Central America (or similar regions) under control by adequately improving the miserable local conditions that (understandably) drive so much flight northward to begin with. But the first detailed description of this policy that I’ve seen not only ignores all of the intertwined institutional, governance, and cultural obstacles to turning regions like Central America’s Northern Triangle (El Salvador, Guatemala, and Honduras) into even approximations of success stories. It also casts real doubt on the seriousness of the vaunted domestic social justice and inequality commitments made both by President Biden and by at least some of the U.S. corporate sector.

As argued by a White House Fact Sheet released yesterday, support for economic development in these long-impoverished, abusively ruled countries will “require more than just the resources of the U.S. government.” Also essential “to support inclusive economic growth in the Northern Triangle” will be the “unique resources and expertise” of the private sector.”

It’s true that only three completely private, profit-seeking American companies have responded so far to the “Call to Action” for business involvement issued by Vice President Kamala Harris, who’s the administration’s designated czarina for dealing immigration-wise with the Northern Triangle. But let’s say lots more get involved.

Why would anyone capable of adult thinking believe that their efforts will succeed? After all, the administration acknowledges that economic success in the region depends on overcoming its “long-standing impediments to investment-led growth.” And it specifies that these obstacles include governments that simultaneously either can’t or won’t carry out their duties in corruption-free ways, and are unable to provide minimal levels of security for their populations against criminal gangs.

Meaning that private businesses will be keen even on setting up the kinds of training and business incubator and internet connectivity programs that predominate in their Northern Triangle plans while threats of violence and extortion remain omnipresent? Maybe they’re planning to cope by hiring massive  private security forces – but such precautions were never mentioned in the Call to Action announcement.

Just as important, here’s another major head-scratcher, especially given the flood of promises over the last year or so from U.S. business circles about promoting racial economic and financial equality. If companies are willing to wade into dangerous environments to educate populations, build or strengthen the infrastructure needed for significant economic progress, and foster new businesses in Central America, why aren’t they focusing their efforts on America’s own inner cities, or at least focusing more tightly on these efforts first? It’s not like their needs aren’t pressing. And although the Northern Triangle countries have actually made some noteworthy progress in fighting violent crime lately, they’re still much more dangerous places than even most of America’s homicide capitals.

Consequently, for companies concerned overall with actual results, it would make far more sense to take an America First approach. Not that Microsoft, Chobani, and Mastercard have ignored their disadvantaged compatriots in practice. But even as their U.S. efforts remain pretty modest (Microsoft, e.g., to date has only launched its digital skills and access improvement program in Atlanta and Texas, and Chobani’s incubator program still seems pretty small scale), they’ve decided to head south of the border(s).

Incidentally, the entire Biden Central America and overall immigration policies are vulnerable to a similar criticism. Since however difficult it’s going to be to spur racial and other economic and social progress at home, the challenge will be far more difficult in foreign countries, a President truly committed both to these vital domestic goals and to staunching migrant flows would focus focus his economic development programs on his own country, and deal with the migrants as an immigration issue – by securing the border. Unfortunately for Americans, Joe Biden has been anything but that President.

Im-Politic: Can Biden Really Solve the “Root Causes” Behind His Border Crisis?

23 Friday Apr 2021

Posted by Alan Tonelson in Housekeeping

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Biden, Border Crisis, border security, CAFTA, Central America, Central America Free Trade Agreement, Colbert I. King, Cold War, Donald Trump, El Salvador, foreign aid, George W. Bush, globalism, Guatemala, Honduras, Im-Politic, immigrants, Immigration, Jorge Castaneda, Kamala Harris, Lawence E. Harrison, migrants, Northern Triangle, race to the bottom, Trade, Washington Post

One of the time-honored practices – and myths – behind globalist U.S. foreign policies has been its faith that turmoil in various parts of the world that allegedly threatens American interests can be either eliminated or reduced to manageable levels with enough foreign aid. The idea is that such assistance will address the social and economic problems thought to be mainly to blame for the instability. So it’s no surprise that the globalist Biden administration has decided that aid programs are the keys to bringing immigration from Central America under control – though not of course right away.

As stated by Vice President Kamala Harris upon being tasked by President Biden to oversee U.S. effort to turn the counties of the region’s “Northern Triangle” into places whose populations won’t be determined to leave, the United States “must address the root causes that cause people to make the trek” northward.

That’s why I sure hope she reads Colbert I. King’s column in Tuesday’s Washington Post before she rolls up her sleeves too far. For as the author notes, the Biden administration plan to turn the Northern Triangle countries (El Salvador, Guatemala, and Honduras) from clearly failed states into (reasonable) success stories isn’t exactly new in its essentials.

And especially in recent years, when conditions in the region ostensibly worsened dramatically, and therefore fueled especially big migrants flows, there’s been no shortage of U.S. aid, especially considering the tiny size of the three economies.

As King details,

“Congress appropriated more than $3.6 billion to fund a Strategy for Engagement in Central America program between 2016 and 2021. The money was supposed to strengthen rule of law, improve the administration of justice, promote economic prosperity, prevent violence and combat gangs, and empower youth and women.

“>In fiscal 2021 alone, U.S. funding amounted to $505.9 million.

“>Between 2013 and 2018, The U.S. Agriculture Department allocated $407 million to Central America to provide school meals, nutritional programs for women, infants and children, and to train and provide technical assistance to improve agricultural productivity.

“>The Obama administration asked for money to help the region in fiscal 2016, and Congress appropriated $750 million, requiring the countries to improve border security, combat corruption and address human rights concerns.”

Then the author – properly – proceeds to ask “What happened to it all?” And what can the Biden administration do to make sure that the $4 billion it plans to spend in the region will work any better if Congress approves this sum?

Moreover, the case against more Central America aid as a Border Crisis game changer is actually stronger than King describes. Because Washington has not only been pouring money into the region for decades. It’s also granted these three Central American countries (and their regional neighbors) tariff cuts and other trade-related assistance aimed at enabling them to export their way to prosperity.

Indeed, as then President George W. Bush declared while lobbying for passage of the Central America Free Trade Agreement (CAFTA) – which was eventually expanded to include the Dominican Republic,

“People have got to understand that by promoting policy that will help generate wealth in Central America, we’re promoting policy that will mean someone is less–more likely to stay at home to find a job. If you’re concerned about immigration to this country, then you must understand that CAFTA and the benefits of CAFTA will help create new opportunity in Central American countries, which will mean someone will be able to find good work at home, somebody will be able to provide for their family at home, as opposed to having to make the long trip to the United States. CAFTA is good immigration policy as well as good trade policy.”

Critics can reasonably argue that these U.S. programs failed to achieve their immigration aims because they were poorly designed. On the aid front, it’s true that too much of the assistance provided by the United States during the Cold War was military or other security assistance that largely helped corrupt governments repress their own people – and fight rebels labeled as tools of the Soviet Union and Cuba.

When it comes to trade, globalist U.S. Presidents did Central America no favors, either. For CAFTA simply plunged the region into a frantic race to the bottom in wages and worker safety that had been sparked by the decision to free up trade indiscriminately with all the very low-income countries (including China, India, and Bangladesh) that also produced the apparel products that have represented Central America’s best hope for prospering via globalization.

At the same time, significant U.S. assistance for Central America continued after the Cold War’s end, and more was targeted at economic development. And the Biden administration has said nothing about U.S. trade policy reforms that actually would give the Northern Triangle – or the rest of Central America for that matter, or Mexico – major legs up on non-Western Hemisphere competitors.

All of which could support the conclusion that no amount of aid or trade breaks can make Central America successful. A globalist administration will be particularly loathe to accept this admittedly depressing proposition, but there’s abundant evidence in its favor. The work of development economist Lawrence E. Harrison, to cite one leading example, has compellingly argued that some counties – and entire regions – simply don’t have what it takes to achieve economic success because of the cultures they’ve evolved.

At the same time, as my friend – and noted political scientist and former Mexican Foreign Minister Jorge Castaneda – has argued, the Central American economies are so small that enough smartly spent U.S. money might be able to overcome even these deep-rooted obstacles.

I can’t say that I know the answer. But the analyses of King, Harrison, and Castaneda all point to the overarching conclusion that the kind of business-as-usual version of the address-the-root-causes of Central America’s failings being contemplated by the Biden administration can’t possibly stem the migrant flow. Moreover, until genuinely promising plans are developed, there will be no substitute for re-securing the border by reinstating the type of Trump-ian controls that minimize the strength of the U.S. magnets that influence migrant flows as surely as the problems of sending countries.

 

Im-Politic: For Biden, It’s Americans Last on Migrants and the Virus

10 Wednesday Feb 2021

Posted by Alan Tonelson in Im-Politic

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asylum seekers, Biden, CBP, CCP Virus, coronavirus, COVID 19, detention, Donald Trump, El Salvador, Guatemala, Honduras, ICE, Im-Politic, immigrants, Immigration, Immigration and Customs Enforcement, Journal of the American Medical Association, lockdowns, Mexico, migrants, Remain in Mexico, stay-at-home, testing, U.S. Customs and Border Patrol, Worldometers.info, Wuhan virus

Some of you might have heard and been concerned about reports that President Biden’s new policies will result in migrants caught by U.S. border authorities being released into the United States without being tested for the CCP Virus. If you knew how much potential for superspread these policies hold, you’d be even more concerned.

Under President Trump, the problem appeared under control because Washington ended the policy of processing migrants who crossed the southern border illegally and then releasing them into the United States to await future hearings on their requests for permanent residency. Instead, apprehended migrants claiming to be asylum seekers, were returned to Mexico (whatever their nationality) until their cases could be brought up. And last March, these policies were extended to all would-be border crossers due to pandemic concerns.

Yet due at least partly to the Biden administration’s immigration-welcoming statements and actions (including during the campaign), migrant flows northward have surged, and current U.S. detention centers have been filling to overflowing despite American court orders preventing them from holding detainees for more than 72 hours in certain facilities in Texas. Worsening the situation has been Mexico’s new refusal in some instances to accept migrants expelled from U.S. territory. (See here for details.) And the new U.S. President seems determined to facilitate immigration inflows generally.

Therefore, the U.S. Customs and Border Enforcement (CBP) agency publicly acknowledged last week that “some migrants will be processed for removal, provided a Notice to Appear, and released into the U.S. to await a future immigration hearing.” Crucially, this practice is proceeding even though CBP doesn’t test arrivals for the CCP Virus unless symptoms are visible. (See the previously linked article for the statement.) 

Which is where the public health threat comes in. Because data from the virus has seemed to be unusually prevalent among these migrants. To begin with, although figures only go through August, a paper published by the Journal of the American Medical Association (JAMA) found that the monthly rate of cases in detention centers was more than 13 times that for the U.S. population as a whole.

Although the JAMA authors wrote that increased testing at the centers only partly explains these high numbers, it also points out that they may also stem from “challenges faced implementing the Pandemic Response Requirements” – like overcrowding. At the same time, they confirm that because asymptomatic detainee testing has been “limited,” even these case numbers could be underestimates. And since migrants tend to be relatively young, asymptomatic cases are surely more common than among legal U.S. residents generally.

The total number of virus cases found among migrants in the detention centers since February has been small – just over 9,300. But the real measure of the danger comes from the incidence of the CCP Virus in the migrants’ main native countries – which look to be sources of large and ever greater greater supply going forward.

Yes, their overall case rates are much lower than their U.S. counterparts, as these data from the Worldometers.info website show:

cases per million

U.S.:                  83,687

Mexico:            14,920

Guatemala:         9,052

Honduras:         15,573

El Salvador:        8,708

One big reason, however, is that they’ve done so little testing, as these numbers from the same source make clear:

tests per million

U.S.:               984,900

Mexico:            37,781

Guatemala:      45,624

Honduras:        39,569

El Salvador:   110,338

Given the immense virus-related uncertainties revealed by these statistics, any measures that increase the numbers of untested migrants in the United States are simply incomprehensible for any government taking seriously the obligation to protect its own population. And given the tight controls already restricting individual, group, and business activities in the United States, these Biden decisions seem even less defensible.

It’s one thing for the new President to reject an America First framework for public policy. It’s quite another to adopt positions that merit the bizarre and perverse label “Americans Last.”

Im-Politic: Time for an America-First Asylum Policy?

26 Monday Oct 2020

Posted by Alan Tonelson in Im-Politic

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asylum seekers, Central America, cities, crime, El Salvador, election 2020, FBI, Golden Triangle, Guatemala, homicide, Im-Politic, Immigration, Joe Biden, migrants, murder, New Nationalism.com, Robert Claude, Trump, WorldPopulationReview.com

One of Joe Biden’s central campaign promises has been to reverse Trump administration moves to curb most forms of legal and illegal entry into the United States by migrants from abroad, and one of the biggest complaints he and other supporters of loosening all forms of immigration restrictions has concerned the Trump policies toward those seeking asylum.

In particular, these critics of the President’s charge that the administration has unjustifiably, and even cruelly, restricted the grounds for a valid asylum claim to the longstanding criteria of persecution or fear of suffering persecution due to their race, religion, nationality, “membership in a particular social group,” or “political opinions.” Among the circumstances the administration was overlooking, as the former Vice President’s website explains, has been was the recent outbreak of gang violence in Central American countries that has supposedly forced numerous residents of El Salvador, Guatemala, and Honduras in particular to flee northward for their lives.

As a result,, Biden has pledged to “restore our asylum laws so that they do what they should be designed to do–protect people fleeing persecution and who cannot return home safely” – including expanding the definition of persecution to include (among other threats) victimization or fear thereof of gang and other major criminal violence.

I’ve backed the Trump stance out of concern that such changes would trigger a completely unabsorbable flood of asylum-seekers and recipients who would be granted entry for reasons having little or nothing to do with longstanding U.S. definition of asylum grounds, and prevalent in every country on earth — and everything to do with an understandable but much less dramatic quest for higher living standards.

So I was grateful to Robert Claude, who puts out the very fine New Nationalism blog, for pointing out to me this past weekend an item he posted over the summer pointing out that several American cities recently have suffered from murder rates that actually are as high or even higher than those of major cities in those three Central American countries (which collectively are called “The Golden Triangle).

Because Robert’s figures only went up to 2017, I decided to investigate a little further. And lo and behold – as of full-year 2019, the story remains the same.

It’s important to note that not all major American cities are Central America-like homicide hotbeds. But significantly, four are. Here are the numbers for murders (and other “non-negligent homicides” for the United States) – drawn from the latest of the FBI’s annual U.S. crime reports, from local news organization accounts for cities not included in the FBI surveys, and from the worldpopulationreview.com website. The figures represent murders etc per 100,000 inhabitants:

San Salvador, El Salvador: 59.1

Guatemala City, Guatemala: 53.5

Tegucigalpa, Honduras: 48.0

St. Louis, Missouri: 64.54

Baltimore, Maryland: 58.27

Birmingham, Alabama: 50.51

Detroit. Michigan: 41.45

Moreover, some U.S. cities are uncomfortably close to Central American murder levels. They include Baton Rouge and New Orleans, Louisiana (31.72 and 30.67, respectively), and Kansas City Missouri (30.49).

Some caveats are important. Each of the Central American cities is considerably larger than the American murder capitals – and scale may affect murder and other crime rates. Moreover, the three Central American cities cited are all national capitals. There’s evidence that in smaller cities in the region, the murder rates are somewhat higher. And it bears observing that the U.S. figures are all for the relevant cities proper. For Tegucigalpa, the numbers may include suburbs. The coverage for the other two Central American cities wasn’t specified.

At the same time, even though most U.S. cities are still much safer than most of their Central American counterparts, keep in mind the trends. For many of these U.S. metropolises, the murder rates have gone up so far this year. According to the U.S. State Department agency that monitors crime and safety conditions generally for U.S. travelers, the murder rates for each of the three Golden Triangle countries (data by city isn’t reported) have fallen substantially in recent years. (See here, here, and here.)

The murder rates in El Salvador, Guatemala, and Honduras are still horrific. But so are those for the four U.S. cities with comparable problems — and for those urban centers which aren’t much safer. Which at least logically raises a big question for the Biden-ites if they win the White House: If they’re determined to permit foreigners to come to the United States for fear of getting murdered, would they give Americans facing the same problems the same right, including the same forms of resettlement assistance?

Im-Politic: When It’s Open Borders for U.S. Stimulus Funds

06 Thursday Aug 2020

Posted by Alan Tonelson in (What's Left of) Our Economy

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CCP Virus, Central America, coronavirus, COVID 19, El Salvador, Financial Times, Guatemala, Honduras, illegal aliens, Im-Politic, immigrants, Immigration, Mexico, Nicaragua, Open Borders, remittances, stimulus, The Washington Post, Wuhan virus, {What's Left of) Our Economy

Ever since the CCP Virus began devastating the U.S. economy, I’ve been calling for the U.S. government to “go big” on stimulus. That means I’ve been especially frustrated with the large number of Congressional Republicans who seem determined to keep down the amount of unemployment and other aid to be provided by the new round of proposed relief legislation that’s still being debated – even after the last supplemental jobless benefits have run out.

Here’s a development, though, that justifies some skepticism about shoveling money out the door as fast as possible: As reported in both The Washington Post and the Financial Times, it’s clear that a pretty sizable share of the income support funds being sent to immigrants in the United States have been forwarded on to their home countries, especially Mexico and the Central American states of El Salvador, Guatemala, Nicaragua, and Honduras. And it’s surely the same story for whatever Paycheck Protection Program monies have been sent to businesses owned by newcomers from these countries. 

In addition, these articles add to the evidence undercutting the common claim (debunked already in RealityChek posts like this one) that even illegal residents greatly benefit the U.S. economy on net because these border crossers wind up spending so much on domestic goods and services, thereby boosting America’s growth and overall employment, and contributing to the national tax base.

Compared with the total size of the U.S. economy and all the stimulus funding provided to date, the sums sent overseas (called remittances) are piddling. Mexico, for example, received $36 billion worth of these payments last year, and are running 10.6 percent higher this year so far. And this source tells us that nearly all came from the United States. Yet the federal government has provided literally trillions of dollars worth of virus-related aid to individuals and businesses.

At the same time, compared with the U.S. population (currently some 330 million), the share born in these countries and living in the United States both legally and illegally remains pretty modest itself – about 14.8 million in 2016 (the latest data available). That’s less than five percent. Further, illegals from Mexico and the Central American countries represented an estimated 46 percent of the total foreign born population in the United States as of 2017, and they’re not eligible for federal relief.  This means that it’s a relatively small number of Americans sending those tens of billions of dollars overseas, and a significant amount of resources transferred abroad per immigrant. (The number of actual senders is even smaller if you just count workers and business owners, and not their non-working family members.) 

Still, at a time of great privation in the United States, why are any government resources going right out the door (other than spending on imports – which of course takes place among these immigrants, too)? Clearly there are currently many millions of Americans for whom collectively about $35 billion would make a real difference nowadays.

By the way, remittances aren’t sent home only by immigrants in the United States from Mexico and Central America. Immigrants from everywhere transfer these funds (including to China, reported to be second biggest recipient country).  But Mexico is Number One by far and the Central American countries rank high as well.  ` 

The remittances information in the Post and Financial Times articles is also difficult at best to square in particular with the claim that illegal aliens are major engines of U.S. growth and prosperity. It’s already well-established that most work in low-wage jobs – so their spending power is pretty modest to start with. Now, both the Post and Financial Times articles report that it’s common for them to send abroad hundreds and even thousands of dollars each month.

These funds are overwhelmingly going to help hard-pressed family members in sending countries, which clearly stems from admirable values. Nevertheless, this is all money that does little, if anything, to enrich the U.S. economy, or create more employment for Americans. Unless you think that families in Mexico or Central America that depending heavily on funds from the United States are spending like gangbusters on imports of U.S.-made goods and services?

Because I’m a “go big” stimulus supporter, I’m in a lousy position logically speaking to insist that legislation going forward contain lots of strings to prevent waste and even fraud.  Those can’t be neglected, but they can’t be top priorities for anyone like me who believes that this is still a full-blown economic emergency. But I’m also wondering how hard it would be for Washington at least to tax funds like remittances that simply leave the country. 

What I’m even less optimistic about, though:  that even when confronted with this new information about remittances from illegals, the bipartisan Open Borders Lobby will stop making transparently absurd claims that that ever more of these newcomers are essential for ensuring continued American well-being, or rebuilding it.

(What’s Left of) Our Economy: U.S. Trade Policy Deserves Blame for the Caravans

24 Wednesday Oct 2018

Posted by Alan Tonelson in (What's Left of) Our Economy

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apparel, asylum seekers, Bangladesh, CAFTA, caravan, Caribbean Basin Initiative, Central America, Central America Free Trade Agreement, China, economic development, El Salvador, globalization, Guatemala, Honduras, immigrants, Immigration, manufacturing, migrants, Multi-Fibre Arrangement, NAFTA, North American Free Trade Agreement, Northern Triangle, Trade, Uruguay Round, Vietnam, World Trade Organization, WTO, {What's Left of) Our Economy

Hot on the heels of the current caravan of Central Americans heading through Mexico to the U.S. border, another such procession is gathering in Guatemala. And these two have followed the flood of unaccompanied migrant children from the area that reached the United States in 2014.

I wish I could tell you that there’s a silver bullet for solving the problem – though nothing could be clearer than that these human tides will keep organizing in even greater numbers if Washington follows the general advice of the Open Borders lobby to view all of the caravan-ers as legitimate asylum-seekers entitled to full due process once they reach the border and request this status. Upon which time current procedures call for recording their claims and then releasing them based on the ludicrous assumption that they’ll report back to immigration court on the appointed date and risk being rejected and thus deported.

What I can tell you is that this crisis has been greatly aggravated by an unforgivably short-sighted U.S. trade policy strategy that emerged in the 1990s. It consisted of indiscriminately liberalizing trade with developing countries, and thereby ignoring the case for targeting trade diplomacy to ensure that countries and regions of greatest importance to the United States receive the lion’s share of the benefits. And the prime victims of this strategic failure – which mainly reflected the determination of offshoring multinational manufacturers and Big Box retailers to gain maximum flexibility to source imported inputs and final products – were the poorer countries of the Western Hemisphere. That group of course includes Mexico and the Central American countries that have sent so many migrants northward.

Interestingly, Central America and the Caribbean countries were placed prominently in line to receive significant shares of the vast U.S. market by a Reagan-era initiative aimed mainly at stemming the spread of left-wing revolutionary forces in the region. But scant years later, any hopes generated by this strategy for fostering more prosperity in these impoverished regions and strengthening the appeal of pro-Western leaders were kneecapped by two big decisions.

The first was the negotiation of the North American Free Trade Agreement (NAFTA) in 1993. The second was the phase out of U.S. and other developed countries’ quotas on apparel imports that was approved the following year as part of the Uruguay Round global agreement that reduced various trade barriers worldwide and created the World Trade Organization (WTO). And the third was the Clinton administration’s subsequent rush to liberalize trade with a host of low-income countries outside the Western Hemisphere.

In principle NAFTA’s tight focus on Mexico was justifiable given Mexico’s size, position as a U.S. neighbor, and history of political, economic, and social policy failure that seemed to be reaching a crisis point. But economic growth and employment could still have been greatly lifted in Mexico and Central American (along with the Caribbean countries) had American trade liberalization stopped or at least paused there.

Yet the quota phaseout forbade Washington from incorporating any strategic or non-economic considerations into apparel trade policy, whether conditions urgently required them or not.  As a result, it ensured that the benefits of freer trade would be greatly watered down (and many garnered by China and the rest of developing Asia in particular), and insult was added to injury by new liberalization deals reached or renewed, or decisions made, regarding Vietnam, sub-Saharan Africa, Jordan, most of developing Asia (in the form of a deal on information technology products, including labor-intensive consumer electronics), and China. Largely as a result, the poorer countries of the Western Hemisphere were left in the dust in the business models of the multinationals and the big retailers.

Nowhere does the opportunity lost by Mexico and Central America come through more clearly than in the apparel trade figures. This sector is almost always the first utilized by developing countries to begin their industrialization and modernization drives mainly because its own labor intensivity means that capital and technology requirements are pretty modest, the relevant skills can be taught fairly easily, and its job-creation promise is substantial.

Here are the figures for apparel imports from Mexico, the three “Northern Triangle” Central American countries, China, and two other current Asian textile giants (Bangladesh and Vietnam) for four key years. Next to them will be the figure for the share of American apparel consumption (market share) won at that point by each. We start with 1997 because that’s the year when the U.S. government began adopting its current dominant system for slicing and dicing trade and manufacturing data – which enables us to see statistics that are apples-to-apples. The second year is 2001 – the year China’s was admitted into the WTO – and thus gained substantial immunity from American laws aimed at curbing predatory trade practices. The third year is 2006 – when Congress approved a Central America Free Trade Agreement (CAFTA) negotiate by George W. Bush’s administration. And the fourth year is last year – the latest for which we have full-year numbers.

1997

Mexico:                       $5.317b                    11.29 percent 

El Salvador:                 $1.052b                     2.18 percent

Guatemala:                  $0.973b                     2.07 percent

Honduras:                    $1.689b                     3.59 percent

China:                          $7.279b                   15.46 percent

Bangladesh:                 $1.442b                      3.06 percent

Vietnam:                      $0.026b                      0.06 percent

2001:

Mexico:                       $8.112b                     12.99 percent 

El Salvador:                 $1.634b                      2.62 percent

Guatemala:                  $1.630b                       2.61 percent

Honduras:                    $2.438b                       3.91 percent

China:                          $8.597b                     13.47 percent

Bangladesh:                 $2.101b                      3.37 percent

Vietnam:                      $0.048b                       0.08 percent

2006:

Mexico:                       $5.514b                       7.16 percent 

El Salvador:                 $1.408b                      1.83 percent

Guatemala:                  $1.685b                      2.19 percent

Honduras:                    $2.519b                      3.27 percent

China:                        $22.405b                    22.09 percent

Bangladesh:                 $2.915b                       3.79 percent

Vietnam:                      $3.226b                       4.19 percent

2017:

Mexico:                       $3.806b                       4.52 percent 

El Salvador:                 $1.920b                       2.28 percent

Guatemala:                  $1.371b                       1.63 percent

Honduras:                    $2.522b                       3.00 percent

China:                        $29.322b                     34.85 percent

Bangladesh:                $5.046b                       6.00 percent

Vietnam:                    $11.613b                     13.80 percent

The big takeaway? Even during the decade after the Central America free trade deal was signed, the three Northern Triangle countries actually saw their share of the U.S. apparel market stagnate or actually shrink. Mexico’s share has been cut by about almost 60 percent. And the business won by China, Bangladesh, and Vietnam has exploded – since 2001 for China, and since 2006 for the two other Asians. Again, the year that the free trade deal that was supposed to benefit El Salvador, Guatemala, and Honduras was inked.

With Mexico, there are of course mitigating factors. Chiefly, although its apparel competitiveness in the U.S. market is way down, its competitiveness in higher value automotive manufacturing in particular is way up. But millions of poor Mexicans still could have benefited from apparel employment, and no such progress has been made in Central America – which is partly understandable since incomes are even lower, and governments and other institutions needed for economic development are so much weaker.

Apparel should have been the great hope for these populations, but that sector’s potential for expanding production (which of course needs to be export-oriented since these countries’ domestic markets are tiny) and employment has been virtually choked off. Just as important, the prospect that apparel wages in the Northern Triangle might rise adequately has been limited, too – since pay throughout developing East and South Asia (even in China, according to the chart below) remains so much lower.

wage2

American trade policy could have lent a big helping hand to Central America had it adopted a strategically sensible set of priorities. But it failed to learn a fundamental lesson of strategy: When everything is a priority, then nothing is a priority. You can see the victims of this failure in the flow of human misery heading up from the Northern Triangle.

Im-Politic: Where Bill O’Reilly is Wrong and Right

25 Wednesday Feb 2015

Posted by Alan Tonelson in Im-Politic

≈ Leave a comment

Tags

Bill O'Reilly, Brian Williams, Buenos Aires, Dabid Corn, El Salvador, Falklands War, Fox News, Hurricane Katrina, Im-Politic, Mainstream Media, media bias, Mother Jones, NBC News, New Orleans

The more I think about it, the clearer it is to me that the best way in this hopelessly political era to discuss the Bill O’Reilly war record controversy is to start by pointing out what shouldn’t matter.

But first, a confession – which foreshadows my conclusion. I’ve been a “Factor” fan and something of an admirer of the “King of Cable Talk” for several years. Not that he hasn’t displayed major flaws. Even if I were Christian, I think I’d find the Fox News host’s “War on Christmas” claims way over the top. O’Reilly seems to have little awareness about the special problems – and prejudices – still facing many African Americans. He seems to believe that, because he finds abortion abhorrent, mainstream contemporary feminism lacks any merit. His grasp of economics, whether it’s fiscal and monetary policy, or trade – well, there simply is none. His foreign policy views are unnecessarily moralistic – even given the unmistakably Islamic and evil terrorist threat confronting America.

At the same time, O’Reilly’s conservatism contains praiseworthy populist elements. He gets in his bones the Wall Street’s responsibility for the financial crisis. He supports raising the minimum wage. He spotlighted the pressures squeezing America’s middle class well before it became fashionable on the Right.

O’Reilly’s non-partisan impulses shouldn’t be forgotten, either. He has unsparingly criticized both Democratic and Republican party figures, and praised the former from time to time. He has strongly condemned the loony – and often prejudice-rooted – personal criticisms hurled at President Obama by many extreme conservatives. He has openly admitted being wrong about supporting George W. Bush’s Iraq War (actually, I think he’s gone overboard here) – even though he favors using (limited, he says) ground forces versus ISIS and expresses full and unjustified confidence that they can leave quickly once their mission is accomplished. And he regularly features both regulars and guests with whom he disagrees.

But none of the above really matters in connection with whether O’Reilly has falsely described his experiences as a foreign correspondent. Nor does it matter that the Mother Jones article that first questioned O’Reilly’s veracity really does look like a political hit piece aimed at retaliating against conservatives and conservative journalists following the tall tales-prompted suspension of NBC News anchor Brian Williams. I don’t even care that Mother Jones author David Corn was not renewed as a Fox News contributor a few years ago, or that some of O’Reilly’s former colleagues at CBS News may be contradicting his account of events in Argentina because they’ve been nursing personal grudges. And there’s no reason to take seriously the argument that O’Reilly shouldn’t be held to Williams-like standards because he’s not hosting a straight news program.

All that matters is whether his claims to have experienced “war zone” conditions are credible based on what we can know about the circumstances and what we can’t know. And I genuinely regret to conclude that O’Reilly has engaged in exaggeration that’s unacceptable for someone with a prominent role in America’s national public policy debate – whether they proudly claim to run a “No-Spin Zone” or not.

The best and fairest analysis I’ve seen of the events O’Reilly covered in Buenos Aires following the British-Argentine Falklands War in 1982 comes from Washington Post media blogger Erik Wemple. His research into not only American sources but Argentine sources (including contemporary local newspapers) convinces me that the Fox host was reporting on a chaotic, violent, and dangerous situation. But it was not one that qualified as the “war zone” he calls it.

This isn’t a huge exaggeration. But neither is it the hair-splitting of which O’Reilly has accused his attackers. A few rounds of live ammo were fired by the police, as well as many more rubber bullets and tear gas. Injuries were suffered, and the fatalities cited by O’Reilly can’t be ruled out, although there is no positive evidence. But no heavier weapons – the kind typical of military operations – were used. The tumult O’Reilly covered lasted a single night. He was not embedded in any units of soldiers, and he didn’t accompany combat forces on his own. In short, he experienced nothing like reporters in real combat zones have experienced in genuine armed conflict for decades. (See these links for some brief descriptions of the World War II coverage of figures like Ernie Pyle, Walter Cronkite, and numerous others who spent prolonged periods on the front or in their air and naval equivalents.)

And this difference counts because O’Reilly has used his claims in efforts to distinguish himself from interlocutors who he depicts as unqualified to hold contrary opinions on military-related topics because they haven’t tasted such danger.

All of which means that O’Reilly’s exaggerations as such sound a lot like Brian Williams’ Iraq war stories. Moreover, just as Williams has been criticized for false reporting in other sets of circumstances (Hurricane Katrina in New Orleans and the fall of the Berlin Wall), so has O’Reilly (for his accounts of his reporting of El Salvador’s insurgency in the 1980s). For some reason, though, the critics haven’t concentrated on those characterizations – and O’Reilly hasn’t addressed them.

The only major differences I can detect entail Williams’ contrition versus O’Reilly’s vituperation, and on NBC’s decision to suspend its star and examine his record versus Fox News’ decision to ignore O’Reilly’s. Bottom line: The Williams and O’Reilly misdeeds haven’t been modern journalism’s worst by a long shot. As a result, I’m open to the argument that both deserve a second chance (at least based on what is known so far). But I agree with those who would reserve forgiveness for those who seek it. So O’Reilly has a ways to go before he qualifies.

One final point: Speaking of journalistic misdeeds, something that’s truly garbage, as O’Reilly might put it, is the implication by Mother Jones authors Corn and Daniel Schulman that the “culture of deception within the liberal media” (their words) slammed repeatedly O’Reilly is a myth. If you doubt this, check out this compilation of confessions from mainstream media journalists. Which means that the worst outcome of O’Reilly’s troubles – including his often abusive counterattacks – could well be undercutting criticisms and concerns about a much more important problem.

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