Think there's no alternative? Latin America has a few

Not only have leaders from Ecuador to Venezuela delivered huge social gains – they keep winning elections too

• 
• • Seumas Milne
  • The Guardian, Tuesday 19 February 2013 22.00 GMT

Given what's been delivered to the majority, it's hardly surprising Latin America's social ­democratic and socialist ­governments keep getting re-elected. Illustration: Belle Mellor

 

Ever since the crash of 2008 exposed the rotten core of a failed economic model, we've been told there are no viable alternatives. As Europe sinks deeper into austerity, governing parties of whatever stripe are routinely rejected by disillusioned voters – only to be replaced by others delivering more welfare cuts, privatisation and inequality.

So what should we make of a part of the world where governments have resolutely turned their back on that model, slashed poverty and inequality, taken back industries and resources from corporate control, massively expanded public services and democratic participation – and keep getting re-elected in fiercely contested elections?

That is what has been happening in Latin America for a decade. The latest political leader to underline the trend is the radical economist Rafael Correa, re-elected as president of Ecuador at the weekend with an increased 57% share of the vote, while Correa's party won an outright majority in parliament.

But Ecuador is now part of a well-established pattern. Last October the much reviled but hugely popular Hugo Chávez, who returned home on Monday after two months of cancer treatment in Cuba, was re-elected president of Venezuela with 55% of the vote after 14 years in power in a ballot far more fraud-proof than those in Britain or the US. That followed the re-election of Bolivia's Evo Morales, Latin America's first indigenous president, in 2009; the election of Lula's nominated successor Dilma Rousseff in Brazil in 2010; and of Cristina Fernandez in Argentina in 2011.

Despite their differences, it's not hard to see why. Latin America was the first to experience the disastrous impact of neoliberal dogma and the first to revolt against it. Correa was originally elected in the wake of an economic collapse so devastating that one in 10 left the country. Since then his "citizen's revolution" has cut poverty by nearly a third and extreme poverty by 45%. Unemployment has been slashed, while social security, free health and education have been rapidly expanded – including free higher education, now a constitutional right – while outsourcing has been outlawed.

And that has been achieved not only by using Ecuador's limited oil wealth to benefit the majority, but by making corporations and the well-off pay their taxes (receipts have almost tripled in six years), raising public investment to 15% of national income, extending public ownership, tough renegotiation of oil contracts and re-regulating the banking system to support development.

Many of the things, in fact, that conventional "free market" orthodoxy insists will lead to ruin, but have instead delivered rapid growth and social progress. Correa's government has also closed the US military base at Manta (he'd reconsider, he said, if the US "let us put a military base in Miami"), expanded gay, disability and indigenous rights and adopted some of the most radical environmental policies in the world. Those include the Yasuni initiative, under which Ecuador waives its right to exploit oil in a uniquely biodiverse part of the Amazon in return for international contributions to renewable energy projects.

But what is happening in Ecuador is only part of a progressive tide that has swept Latin America, as social democratic and radical socialist governments have attacked social and racial inequality, challenged US domination and begun to create genuine regional integration and independence for the first time in 500 years. And given what's already been delivered to the majority, it's hardly surprising they keep getting re-elected.

It says more about the western media (and their elite Latin American counterparts) than governments such as Ecuador's and Venezuela's that they are routinely portrayed as dictatorial. Part of that canard is about US hostility. In the case of Ecuador, it's also been fuelled by fury at Correa's decision to give asylum to WikiLeaks founder Julian Assange, who faces sexual assault allegations in Sweden, over the threat of onward extradition to the US. In reality, the real anti-democratic menace comes from the US's own allies, who launched abortive coups against both Chávez and Correa – and successful ones in Honduras in 2009 and Paraguay last year.

Of course, Latin America's left-leaning governments have no shortage of failings, from corruption to crime. In Ecuador and elsewhere, tensions between the demands of development, the environment and indigenous rights have sharpened. And none of these experiences yet offer any kind of ready-made social or economic alternative model.

There is also a question whether the momentum of continental change can be maintained now that Chávez, who spearheaded it, is expected to stand down in the next few weeks. His anointed successor, the former trade unionist Nicolás Maduro, is in a strong position to win new elections. But neither he nor the charismatic Correa is likely to be able to match Chávez's catalytic regional role.
Latin America's transformation is nevertheless deeply rooted and popular, while a discredited right has little to offer. For the rest of the world, it makes a nonsense of the idea that five years into the crisis nothing can be done but more of the same. True, these are economies and societies at a very different stage of development, and their experiences can't simply be replicated elsewhere. But they have certainly shown there are multiple alternatives to neoliberal masochism – which win elections, too.

Don't lose sight of why the US is out to get Julian Assange

Ecuador is pressing for a deal that offers justice to Assange's accusers – and essential protection for whistleblowers

• 
• • Seumas Milne
  • guardian.co.uk, Tuesday 21 August 2012 21.30 BST

A supporter of Julian Assange, the WikiLeaks founder, outside the Ecuadorean embassy in London. Photograph: Oli Scarff/Getty

Considering he made his name with the biggest leak of secret government documents in history, you might imagine there would be at least some residual concern for Julian Assange among those trading in the freedom of information business. But the virulence of British media hostility towards the WikiLeaks founder is now unrelenting.

This is a man, after all, who has yet to be charged, let alone convicted, of anything. But as far as the bulk of the press is concerned, Assange is nothing but a "monstrous narcissist", a bail-jumping "sex pest" and an exhibitionist maniac. After Ecuador granted him political asylum and Assange delivered a "tirade" from its London embassy's balcony, fire was turned on the country's progressive president, Rafael Correa, ludicrously branded a corrupt "dictator" with an "iron grip" on a benighted land.

The ostensible reason for this venom is of course Assange's attempt to resist extradition to Sweden (and onward extradition to the US) over sexual assault allegations – including from newspapers whose record on covering rape and violence against women is shaky, to put it politely. But as the row over his embassy refuge has escalated into a major diplomatic stand-off, with the whole of South America piling in behind Ecuador, such posturing looks increasingly specious.

Can anyone seriously believe the dispute would have gone global, or that the British government would have made its asinine threat to suspend the Ecuadorean embassy's diplomatic status and enter it by force, or that scores of police would have surrounded the building, swarming up and down the fire escape and guarding every window, if it was all about one man wanted for questioning over sex crime allegations in Stockholm?

To get a grip on what is actually going on, rewind to WikiLeaks' explosive release of secret US military reports and hundreds of thousands of diplomatic cables two years ago. They disgorged devastating evidence of US war crimes and collusion with death squads in Iraq on an industrial scale, the machinations and lies of America's wars and allies, its illegal US spying on UN officials – as well as a compendium of official corruption and deceit across the world.

WikiLeaks provided fuel for the Arab uprisings. It didn't just deliver information for citizens to hold governments everywhere to account, but crucially opened up the exercise of US global power to democratic scrutiny. Not surprisingly, the US government made clear it regarded WikiLeaks as a serious threat to its interests from the start, denouncing the release of confidential US cables as a "criminal act".

Vice-president Joe Biden has compared Assange to a "hi-tech terrorist". Shock jocks and neocons have called for him to be hunted down and killed. Bradley Manning, the 24-year-old soldier accused of passing the largest trove of US documents to WikiLeaks, who has been held in conditions described as "cruel and inhuman" by the UN special rapporteur on torture, faces up to 52 years in prison.

The US administration yesterday claimed the WikiLeaks founder was trying to deflect attention from his Swedish case by making "wild allegations" about US intentions. But the idea that the threat of US extradition is some paranoid WikiLeaks fantasy is absurd.

A grand jury in Virginia has been preparing a case against Assange and WikiLeaks for espionage, a leak earlier this year suggested that the US government has already issued a secret sealed indictment against Assange, while Australian diplomats have reported that the WikiLeaks founder is the target of an investigation that is "unprecedented both in its scale and its nature".

The US interest in deterring others from following the WikiLeaks path is obvious. And it would be bizarre to expect a state which over the past decade has kidnapped, tortured and illegally incarcerated its enemies, real or imagined, on a global scale – and continues to do so under President Barack Obama – to walk away from what Hillary Clinton described as an "attack on the international community". In the meantime, the US authorities are presumably banking on seeing Assange further discredited in Sweden.

None of that should detract from the seriousness of the rape allegations made against Assange, for which he should clearly answer and, if charges are brought, stand trial. The question is how to achieve justice for the women involved while protecting Assange (and other whistleblowers) from punitive extradition to a legal system that could potentially land him in a US prison cell for decades.

The politicisation of the Swedish case was clear from the initial leak of the allegations to the prosecutor's decision to seek Assange's extradition for questioning – described by aformer Stockholm prosecutor as "unreasonable, unfair and disproportionate" – when the authorities have been happy to interview suspects abroad in more serious cases.

And given the context, it's also hardly surprising that sceptics have raised the links with US-funded anti-Cuban opposition groups of one of those making the accusations – or that campaigners such as the London-based Women Against Rape have expressed scepticism at the "unusual zeal" with which rape allegations were pursued against Assange in a country where rape convictions have fallen. The danger, of course, is that the murk around this case plays into a misogynist culture in which rape victims aren't believed.

But why, Assange's critics charge, would he be more likely to be extradited to the US from Sweden than from Britain, Washington's patsy, notorious for its one-sided extradition arrangements. There are specific risks in Sweden – for example, its fast-track "temporary surrender" extradition agreement it has with the US. But the real point is that Assange is in danger of extradition in both countries – which is why Ecuador was right to offer him protection.

The solution is obvious. It's the one that Ecuador is proposing – and that London and Stockholm are resisting. If the Swedish government pledged to block the extradition of Assange to the US for any WikiLeaks-related offence (which it has the power to do) – and Britain agreed not to sanction extradition to a third country once Swedish proceedings are over – then justice could be served. But with loyalty to the US on the line, Assange shouldn't expect to leave the embassy any time soon.

A decade ago, Ecuador was a banana republic, an economic basket case. Today, it has much to teach the rest of the world

Could Ecuador be the most radical and exciting place on Earth?

• 
• • Jayati Ghosh
  • guardian.co.uk, Thursday 19 January 2012 19.02 GMT
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President Rafael Correa's approval ratings are in excess of 70%. Photograph: Guillermo Granja/Reuters

Ecuador must be one of the most exciting places on Earth right now, in terms of working towards a new development paradigm. It shows how much can be achieved with political will, even in uncertain economic times.

Just 10 years ago, Ecuador was more or less a basket case, a quintessential "banana republic" (it happens to be the world's largest exporter of bananas), characterised by political instability, inequality, a poorly-performing economy, and the ever-looming impact of the US on its domestic politics.

In 2000, in response to hyperinflation and balance of payments problems, the government dollarised the economy, replacing the sucre with the US currency as legal tender. This subdued inflation, but it did nothing to address the core economic problems, and further constrained the domestic policy space.

A major turning point came with the election of the economist Rafael Correa as president. After taking over in January 2007, his government ushered in a series of changes, based on a new constitution (the country's 20th, approved in 2008) that was itself mandated by a popular referendum. A hallmark of the changes that have occurred since then is that major policies have first been put through the referendum process. This has given the government the political ability to take on major vested interests and powerful lobbies.

The government is now the most stable in recent times and will soon become the longest serving in Ecuador's tumultuous history. The president's approval ratings are well over 70%. All this is due to the reorientation of the government's approach, made possible by a constitution remarkable for its recognition of human rights and the rights of nature, and its acceptance of plurality and cultural diversity.

Consider just some economic changes brought about in the past four years, beginning with the renegotiation of oil contracts with multinational companies. Ecuador is an oil exporter, but had benefited relatively little from this because of the high shares of oil sales that went to foreign oil companies. A new law in July 2010 dramatically changed the terms, increasing the government's share from 13% to 87% of gross oil revenues.

Seven of the 16 foreign oil companies decided to pull out, and their fields were taken over by state-run companies. But the others stayed on and, as a result, state revenues increased by $870m (£563m) in 2011.

Second, and possibly even more impressively, the government managed a dramatic increase in direct tax receipts. In fact, this has been even more important in revenue terms than oil receipts. Direct taxes (mainly corporation taxes) increased from around 35% of total taxes in 2006 to more than 40% in 2011. This was largely because of better enforcement, since the nexus between big business and the public tax administration was broken.

Third, these increased government revenues were put to good use in infrastructure investment and social spending. Ecuador now has the highest proportion of public investment to GDP (10%) in Latin America and the Caribbean. In addition, social spending has doubled since 2006. This has enabled real progress towards the constitutional goals of free education at all levels, and access to free healthcare for all citizens. Significant increases in public housing have followed the constitution's affirmation of the right of all citizens to dignified housing with proper amenities.

There are numerous other measures: expanding direct public employment; increasing minimum wages and legally enforcing social security provision for all workers; diversifying the economy to reduce dependence on oil exports, and diversifying trading partners to reduce dependence on the US; enlarging public banking operations to reach more small and medium entrepreneurs; auditing external debt to reduce debt service payments; and abandoning unfair bilateral investment agreements. Other efforts include reform of the justice system.

One exciting recent initiative is the Yasuní-ITT biosphere reserve, perhaps the world's first attempt to avoid greenhouse emissions by leaving oil underground. This not only protects the extraordinary biodiversity of the area but also the habitats of its indigenous peoples. The scheme proposes to use ecotourism to make human activity compatible with nature.

All this may sound too good to be true, and certainly the process of transformation has only just begun. There are bound to be conflicts with those whose profits and power are threatened, as well as other hurdles along the way. But for those who believe that we are not condemned to the gloomy status quo, and that societies can do things differently, what is happening in Ecuador provides inspiration and even guidance. The rest of the world has much to learn from this ongoing radical experiment.