Costa Rica switched diplomatic relations from Taiwan to Mainland China earlier this month, citing economic reasons as the deciding factor. Costa Rica’s realignment is a small example of how Chinese "checkbook diplomacy" is reshaping Latin American politics. By financing multi-billion dollar infrastructure and public works projects in Latin America, China is receiving contracts for raw materials and foodstuffs that will feed the appetite of its ever expanding economy. On his 2005 tour, President Hu Jintao spoke of a US$100 billion investment in South American infrastructure over the next ten years. Clearly, China is laying the path for a long-lasting presence ...   more »

The World Bank released its annual “governance indicators” yesterday – a set of six variables which is designed to measure governance globally.  The project has many critics, broadly falling into two camps – those that oppose the idea on principle and argue that the World Bank should not be in the business of rating countries on governance or any other metric, and those that find fault with the indicators methodology, which could accurately be described as a “kitchen sink” approach to measuring corruption, political stability and other categories of governance with surveys and other imprecise metrics....   more »

After US President George W. Bush’s long trip to Latin America this spring, the US has announced a number of very small humanitarian and aid initiatives for the region which appear like buy-offs to the uninitiated. Dedicating just $20 million (the cost of a single day of the continuing Iraqi war), the US has put a large hospital ship off the coast of several Central American cities in an effort to buy popularity. One can’t help but notice how much this mini-mission has in common with the itinerant Cuban doctors working in Venezuela.    more »