One month before the Argentine presidential election
〈Ha〉 Intensifying left-right conflict in the ‘polarization swamp’
Argentina’s economic difficulties and security instability are not a problem for a specific country, but a common concern for all of Latin America. First of all, the high-tech manufacturing sector has not been able to develop due to the ‘heaven-fed’ economic structure that relies only on raw materials and exports of agricultural products. According to the World Trade Organization (WTO), as of 2020, Argentina’s agricultural product exports accounted for 65.8% of total exports.
Due to the aftermath of Spanish and Portuguese colonial rule from the 16th century to the early 20th century, polarization by race and class is more severe than in any other region in the world. As a result, regime changes are frequent, but policy sustainability is difficult to ensure, and existing problems are accumulating further, repeating a vicious cycle.
In particular, in Chile and Brazil, where there was a change of government from the right to the left last year and this year, respectively, factional conflict due to political polarization is extreme. In Chile, ahead of the constitutional amendment referendum on December 17, the left and right camps are even willing to engage in physical conflict.
According to the international statistical research website ‘Statista’, the Gini coefficient of most major countries in Central and South America exceeds 0.4 as of 2021. The Gini coefficient, a measure of income inequality, is located between 0 and 1, and the closer it is to 1, the more inequality there is. If it exceeds 0.5, it is considered a dangerous state where a riot may occur.
Colombia (0.542), which has a serious drug problem, is the highest, and major countries such as Brazil (0.489), Mexico (0.454), Chile (0.449), and Argentina (0.423) are all above 0.4. There is a significant difference from Korea’s Gini coefficient (0.339) for 2020 announced by Statistics Korea. Northern Europe’s Denmark is only 0.275.
The income gap between whites and non-whites is also serious. According to UN data in the same year, the percentage of indigenous people in Central and South America living in extreme poverty was 18.5%. It is more than twice the rate of extreme poverty among whites and mixed race people (7.2%). The black poverty rate (10.5%) is also higher than that of whites.
White people from Spain monopolized the operation of gold, silver, and copper mines starting in the 16th century, during the early colonial period, and exploited indigenous people and black people brought from Africa. As this structure was established, a kind of caste system was formed in all major countries, with whites at the top of the income bracket, followed by mestizo (mixed race of whites and natives), mulattos (mixed race of whites and blacks), blacks, and natives.
Hong Seong-woo, an associate research fellow at the Institute for International Economic Policy, said, “Unlike Britain, which allowed a certain degree of economic development in its colonies, Spain’s colonial system was strictly focused on bringing the plundered resources back to the home country. “As a result, Latin America as a whole did not have the opportunity to develop a market economy,” he said. After colonial rule ended, populism and corruption were rampant, and inequality became a social structure that was entrenched for 500 years.
The conflict between the left and right camps is also serious. Left-leaning Chilean President Gabriel Boric, who came to power in March last year, is advocating expansion of the social security system, including nationalizing copper and iron ore companies, which are his core resources, publicizing private pensions, and raising the basic pension.
In particular, he is pushing for a constitutional amendment, saying that the constitution enacted during the time of military-turned-right-wing dictator Augusto Pinochet (in power from 1973 to 1990) should include progressive policies such as allowing abortion, recognition of native property rights, and quotas for women in public institutions. The right wing is also in conflict with the Boric administration, calling for a ban on abortion, privatization of health care, and abolition of property taxes in the constitution.
To amend the constitution, a majority of Chile’s 20 million people must vote in favor. In a referendum held in September last year, it was rejected with only 38% in favor. President Borich, who suffered a major blow to his leadership, is very determined to “pass it this year.” However, it is difficult to guarantee that he will pass this time as well. According to local opinion polling company Kadem on the 17th, 57% of respondents said, “I will vote against the referendum.”
There is also considerable factional conflict in Brazil, led by President Luiz Inácio Lula da Silva, who returned to power after 12 years. Former President Jair Bolsonaro, ‘Brazil’s Trump’, who lost the battle against President Lula, still refuses to admit defeat and is seeking to return to politics.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.