Will Mexico Get Its Donald?

Mexicans are mad as hell at a system they see as self-dealing, under-performing and corrupt. That should sound familiar to Americans — not to mention Italians, Britons, and those in every other nation swamped by the populist tide. In Mexico’s case, they’re largely right.

.. Enrique Peña Nieto, the outgoing incumbent, came to office promising to cut the crime rate in half. Instead, Mexico suffered more than 25,000 murders last year, a modern record. He promised an end to corruption. His administration is suspected of spying on anti-graft investigators, and his wife was caught buying a $7 million mansion from a government contractor. He promised economic growth of 6 percent a year. It hardly ever got above 3 percent. The average wage fell by about $1,000 during the Great Recession and hasn’t recovered since.

.. American president, who is also on record saying he couldn’t care less whether his policies hurt them. If AMLO wins, Trump will deserve him.

.. AMLO’s popularity rests on the belief that he will end corruption, bring down crime, and redistribute ill-gotten gains to the people. How, exactly? Just as Trump declared at the 2016 Republican convention that he “alone” could fix a broken system, AMLO seems to have convinced his base that he can just make things happen. “Everything I am saying will be done” is how he punctuates his pledge

.. It’s the way of demagogues everywhere.

.. Trump promises to build border walls, win trade wars, keep us safe from terrorism, and end Obamacare, all at the snap of a finger

..  AMLO promises to fix social inequities that date back 500 years in a single six-year term.

.. compares himself to Benito Juárez, Mexico’s answer to Abraham Lincoln.

.. The idea of steady improvement and gradual amelioration isn’t for him. In Mexico’s current anger he seems at last to have found his moment.

.. it isn’t clear whether the softer rhetoric is anything more than an attempt to allay the fear (which factored heavily in his previous defeats) that he’s a Mexican Hugo Chávez.

.. It especially doesn’t work out well when populist policies collapse (as they generally do) on contact with reality. What typically follows isn’t a course correction by the leader or disillusionment among his followers. It’s an increasingly aggressive hunt for scapegoats: greedy speculators, the deep state, foreign interlopers, dishonest journalists, saboteurs, fifth columnists, and so on.

That’s been the pattern in one populist government after another, from Viktor Orban’s Hungary to Recep Tayyip Erdogan’s Turkey to, well, Trump’s America. Now Mexico risks being next.

The price of electing saviours in Latin America

ON JULY 1st Mexicans are set to elect Andrés Manuel López Obrador as their next president. Since they twice rejected him, in 2006 and 2012, by coalescing behind the opponent with the best chance of winning, that requires some explanation. Mr López Obrador is of the left, but he is a would-be saviour rather than a social democrat. Instead of a better future, he promises to return Mexico to a better, safer past of strong, paternalist government. He invites voters to trust in him, rather than in democratic institutions. As the last two contests showed, in normal circumstances he would not win.

.. But Mexicans are not looking for politics as usual. Under the outgoing president, Enrique Peña Nieto, they suffer rampant crime and corruption, and mediocre economic growth. Each day 85 people are murdered. Voters “want blood”, in the form of systematic punishment of corrupt politicians

.. Many think that centrist politicians have failed them and that things cannot get any worse.

.. Brazilians are in a similar mood ahead of their election in October.

.. one of the front-runners in the opinion polls is Jair Bolsonaro, a crudely authoritarian, misogynistic and homophobic former army officer. Brazil, unlike Mexico, has a run-off vote; Mr Bolsonaro may well figure in it but is unlikely to win it.

.. A recent poll found that 62% of respondents aged 16-24 would leave if they could.

.. It is not the first time Latin Americans have turned, in an emergency, to would-be saviours. In 1990 voters in Peru found one in Alberto Fujimori, an obscure former university rector. A political outsider, he was elected when his country faced a terrorist insurgency, hyperinflation and economic meltdown. When he sent tanks to shut down the congress two years later, polite society was appalled but ordinary Peruvians cheered. Mr Fujimori won a second term in 1995.

..Or take Venezuela. The collapse of the oil price in the 1980s and 1990s weakened a stable social democracy, hollowing out its welfare state, causing bank failures and exposing corruption. In anger, Venezuelans turned to an army lieutenant-colonel, Hugo Chávez, who had led a failed coup ..

.. As the oil price surged again, he became a popular hero. But long before his death in 2013 he had propelled his country towards its current feral state of corruption, brutality and penury.

.. Colombians in 2002 were suffering the tightening grip of the FARC guerrillas over much of the national territory as well as a recession and a banking crisis. They normally chose moderate presidents, but they elected Álvaro Uribe, an intense conservative who promised to be “the first soldier of Colombia” and to double the size of the security forces.

Mr Fujimori and Mr Uribe saved their countries, but in both cases there was a dark side. Mr Fujimori governed as a dictator and resorted to systematic bribery. Mr Uribe appointed officials with links to right-wing death squads.

.. When voters choose candidates they normally wouldn’t, the negative consequences are long-lasting. In Venezuela, Colombia and Peru these include political polarisation.

.. This lasting polarisation is what may face Mexico and Brazil. It is the high price that countries pay when the political establishment fails in its most basic functions of protecting the lives of citizens or preventing the pilfering of public money. When that happens, it is hardly surprising that voters look elsewhere. But the problem with saviours is that, sooner or later, countries have to try to save themselves from them.

 

 

Lobsters, Small-Batch Whiskey and Trump’s Trade War

The cascade of tit-for-tat tariffs has spooked corporate executives, potentially slowing investment, and the Federal Reserve suggested this week that it might have to rethink its economic forecasts if the trade wars continue.

.. The economy is booming, but Mr. Skarich said he was not reaping the benefits. Instead, as a result of Mr. Trump’s trade policies, Mr. Skarich said his nail company may soon be out of business.

.. Mid Continent, the largest American producer of nails, imports steel from Mexico to make its nails. That steel is now subject to the 25 percent tariffs that Mr. Trump imposed on dozens of countries, forcing Mid Continent to raise its prices by nearly 20 percent.

.. Orders have plummeted by 50 percent this month as the company tries to compete with cheaper foreign-made nails. Those foreign manufacturers are not facing higher steel costs, giving them an advantage over Mid Continent.

.. While Mr. Trump might propose that Mid Continent simply buy American-made steel, it might not be so simple: Mr. Skarich notes that the cost of American-made metal is much higher than what the company had been importing from Mexico, meaning it would still have to raise prices for its nails if it used domestic steel.

.. “He ran on ‘Make America Great Again,’ and the point was to defend and protect jobs in the United States,” Mr. Skarich said. “Now here is an action he decides to take that has the potential to cost 500 U.S. citizens their jobs.”

.. China is expected to impose an additional 25 percent tariff on American lobster
.. Trump’s policy was having the unintended effect of further helping Canada’s lobster market, which doesn’t face the same duties when selling to China.
.. For several years, the cranberry industry has been struggling with an oversupply problem that has been eased somewhat by exporting juice and berries to Europe and elsewhere.
.. Wisconsin is one of the world’s biggest cranberry producers and is the home state of Representative Paul D. Ryan
..  exports to Europe were about $127 million last year
.. European tariffs on peanut butter will be a blow for the makers of Peter Pan and Skippy spreads, but it is peanut farmers in Republican-leaning states like Georgia, Alabama, Florida and Mississippi who could struggle the most... The United States and China are the biggest peanut butter exporters in the world, according to the Department of Agriculture, and European tariffs would likely give China an edge in expanding its market share.

.. “If this can give him some leverage to get a deal made, they’d be all for that,” Mr. Broome said. “If it doesn’t work and he’s miscalculated, then it could be a different story.”

We’re Helping Deport Kids to Die

If other countries were forcibly returning people to their deaths, we would protest. But because we Americans worry about refugees swarming across our borders, we help pay for Mexico to intercept them along its southern border and send them — even children like Elena — back home, where they may well be raped or killed.

.. Obama spoke with the Mexican president to discuss how to address the flow, and Mexico obligingly imposed a crackdown to stop these refugees long before they could reach the United States. Mexico deports a great majority of them to their home countries, and the United States is thus complicit when they are terrorized, raped and murdered.

.. Immigration is among the knottiest of challenges, and there is a real risk that welcoming some children creates an incentive that results in other children endangering their lives by undertaking a perilous journey north.

.. historically, Central Americans had a refuge in southern Mexico, and it is unnecessary and cruel now for the U.S. to take the initiative and work so diligently to cut off that safe haven.

.. It’s not that Honduras or El Salvador are tyrannical regimes; rather, the problem is that criminal gangs are out of control. The homicide rate in El Salvador last year, more than 100 killings per 100,000 people, represents a mortality rate of roughly the same magnitude as during the country’s brutal civil war in the 1980s

.. These are not primarily economic migrants. These are refugees, deserving protection. Instead, the United States and Mexico are colluding to send people like them back to the gangs that want to kill them.

.. gang members barged into his home, held his family at gunpoint and said they would kill his two small children unless he paid protection money. So now Emilio is hiding in Mexico with his wife and two children, and getting death threats.

.. Mexico doesn’t seriously screen most people for refugee status before sending them back. In the U.S. in 2014, only 3 percent of minors detained were deported; in Mexico it was 77 percent

.. Indeed, by some accounts, the gangs keep an eye on the buses arriving in San Salvador and unloading deportees, who become sitting ducks.

.. Secretary of State John Kerry rightfully criticized Kenya’s plans to close its Daadab refugee camp and return refugees to Somalia, but the U.S. does something parallel when it works with Mexico to deport refugees to Honduras and El Salvador.