Sharing the Wealth

The measurement that most differentiated the USA and Canada from countries in Latin America, once upon a time, was the size and power of the middle class. As this difference continues to erode, a bit of soul searching is in order. Overall, Latin America's middle class has grown in the past decade, while the USA's continues to contract in size and purchasing power.

Last year I reported on the increasing tendency among the majority of Latin American countries to lean left politically. Now the USA will inaugurate its 44th president amidst its own profound shift to the left. The 2008 election was a massive rejection of trickle-down economics, a theory that led to enormous global problems for 2009 and beyond.

U.S. workers are earning less while their CEO’s have earned pay increases equivalent to more than 900% since 1970, even while bankrupting their companies. The average hourly wage rate has failed to keep up with inflation over the past four decades. In other words +900% for CEOs and +0 for workers. Source: Paul Krugman, sole 2008 recipient of the Nobel Prize in Economics.

And deregulation has enabled record-breaking corporate bankruptcy rates. The most publicized of 2008’s systematic failures occurred in the investment banking sector. This led to a trillion dollar taxpayer bailout which is now spilling over into the manufacturing sector. Add to this billions of dollars in bankruptcy filings from home-builders and media conglomerates. Consider bankrupt retailers such as Sharper Image, Mervyn’s, Linens & Things, and Circuit City.

The travel industry has been hit particularly hard with bankruptcies such as Aloha Airlines, ATA, Frontier Air, and Advantage Rental Car. In my holiday travels I have observed stunning vacancy rates at my favorite beachfront hotels.

Clearly, Henry Ford was correct to encourage corporations to pay their workers a good wage if they hope for the general public to afford their products. A free market is of little value when sellers can’t find buyers. Economic “trickle-down theory” has been proven to be of very little value, based on 38 years of stagnant hourly wages. In this context, a political shift to left is inevitable.

In 2009 the USA joins its hemispheric neighbors in embracing the enlightened self-interest of “sharing the wealth”, a necessity explained to ‘Joe the Plumber’ by then-Senator Obama. Government regulation is obviously necessary at some greater level than has been advocated by Wall Street lobbyists. We don’t have to call it socialism. We do need to recognize what we have in common with our neighbors and work together for a better tomorrow.
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In the immortal words of Hanna-Barbera's Snagglepuss (pictured) ... "Exit, stage left already!"

Message from the Heart of the World

Recent reports detail how Latin America is taking a leadership role on climate change. New data from the Word Bank quantifies this region’s leadership in reducing the level of greenhouse gases pumped into the atmosphere. Latin America’s efforts go beyond many government’s efforts, including most G-7 nations; and, notably, the world’s two largest emerging economies.

Carbon dioxide emissions in Latin America are 74% lower, per unit of power, than China & India’s emissions. Why? Hydroelectric power and bio fuel usage are two areas where Latin America has pioneered advantages. It is with enlightened self-interest that countries like Brazil and Mexico tackle environmental challenges. Brazil’s Amazon Basin and Mexico’s Gulf Coast are critical habitats threatened by global warming.

Such habitats are critical because their disappearance would trigger greater global warming. Already the conversion of Amazon rainforest habitat to farms represents 50% of Brazil’s total emissions. The world average for emissions from deforestation is 17%. New World Bank data predicts crop failures caused by global warming will cut farm revenue in half as soon as the year 2100.

Two other critical habitats in Latin America are the glaciers in Patagonia and the barrier reefs along C. America’s Caribbean coast. In Belize, the rising ocean temperature is causing coral in the world’s second largest reef system to emit algae that threaten the coral that produce them. Honduras is experiencing similar degradation off the coast of the Bay Islands.

The world’s most powerful economies are being invited by Latin American nations to lead developing economies on issues related to climate change. For now, Latin America is providing much needed leadership by way of example.

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Climate change warnings have been coming from Latin America for decades. . The Kogi sounded this alarm in 1990, long before Al Gore redefined the problem. Columbia’s Kogi civilization has avoided contact with industrialized society (much like the Amish). A typical Kogi village appears in the photo above. Like the Amish, the Kogi seek balance with nature.

The Kogi view themselves as “elder brothers” to modern man, having descended from the Tairona civilization which dates back to the 1st Century. They existed and thrived long before their lands were decimated by “younger brothers” of colonizing civilizations arriving in the region more than 1,000 years later. The Kogi see themselves as custodians of our planet and meditate on its future. They see climate change because their mountain is dying. Their mountain lies in the Sierra Nevada de Santa Marta near Columbia’s border with Venezuela, the highest coastal mountain in the world.

The Kogi do not see us as sleeping (as some Hindu and Oriental religions do); they see their little brothers as dead or dying, as “shadows of the energy of what they could be”, according to Drunvalo Melchizedek. This is because the Kogi have witnessed the destruction of mother Earth caused by industrialized cultures. The Kogi invited NPR to broadcast their message which translates as "Younger brother, you are killing our mother".

The Bush Administration ignored the climate change alarm, while Latin American governments continued to take and recommend actions that will heal the ecology that sustain us. To learn more, see the BBC film “Message from the Heart of the World” by making a donation to the Tairona Heritage Trust. Also, read the book “The Heart of the World” for the story told by The Kogi Mamas (priests) to Alan Ereira.

Hemispheric Relations

The balance of power in the Americas has been shifting for more than a decade. N. America’s clout in C. & S. America is at its lowest point in decades of decline. The dollar still goes further when it goes south. However, the USA’s economic meltdown has led to the raising of Latin American eyebrows. For decades we have preached about financial austerity measures. Our neighbors now question the value of economic advice from an economy reeling wildly out of control.

South, Central & North America have each had their share of revolution and civil wars since the 18th Century. Recently, unrest in Latin America has been too often instigated by the USA. Who can name one major Latin American country where the U.S. government did not meddle, finance opposition governments, send covert operatives, or otherwise intervene in affairs outside our borders? We've been a bully with our neighbors, in too many cases. The Bush Doctine of overt pre-emption is just a new twist on a long history of covert pre-emptive actions.

Congress continues to fund intervention in Latin America in its unwinnable “war on drugs”. Yet, the current administration can’t even take care of domestic problems and is running up record deficits. We are overextended and in debt to foreign governments, which was once the norm in Latin America. Our neighbors see the USA as increasingly unreliable and, when it comes to advice about their financial markets, they see the U.S. position as hypocritical.

How does this effect tourism? First of all, we must go beyond the U.S. State Dept. to get a useful travel advisory. Visiting host country's websites is quite helpful. For objective advice in English, visit websites from the governments of Canada, the UK, and Australia. We do this for our clients. We find our own State Dept’s information to be the least useful, the most biased, its not geographically specific, and its not updated frequently enough.

In my work, we don’t rely on vague State Dept. advisories. We prefer detailed, up-to-date analysis on protests or conflicts taking place in Latin America. We prefer pertinent details and nuanced analysis. The U.S. State Dept. plays politics with travel advisories, knowing that tourism is a key revenue source for rival leftist governments in Latin America. Do we have a problem with peaceful protests of misguided government policies here or there? Not necessarily. Does the State Dept. use objections about a government’s policies to overstate a travel advisory? Yes.

The result of this hemispheric shift is positive for tourists. North, Central & South Americans are becoming closer neighbors on economic terms. We have a shrinking middle class. We're engaged in nasty wars. Our economies are crippled. We’re facing the same struggles and this brings people together. The current administration’s misguided policies have eroded our economic standing in the world. We’re slipping from the “1st world” to the 2nd as Latin America has been reaching up from “3rd world” to the 2nd. We’re meeting our neighbors in the middle, slowly but surely.

The poverty rate in Mexico has dropped from 21 percent to 18.5 percent over the past 10 years, said a report published by the Organization for Economic Cooperation and Development (OECD). The poverty rates in Turkey are 17.5 percent and in the United States 17 percent. Denmark and Sweden are with less inequality with only 5.5 percent of poor people. Out of dozens of countries in the OECD study, only Turkey and Mexico have more poverty to the USA. We are not even close to the top of the list on this measure because too many of U.S. workers earn less than half the median wage - a two class system is growing and the middle class is shrinking. Denmark and Sweden are 1st world countries. The USA and Turkey have the same levels of poverty, a level very close to Mexico's.

Approach the USA's 2nd world reality frankly, with humility, and you’ll make many friends when traveling. Increasingly, we're in the same boat and it may be a banana boat. According to Micheal Shifter, an Inter-American Dialogue Analyst in DC, "Latin Americans have every reason to view the U.S. as a banana republic. U.S. lectures to Latin Americans about excess greed and lack of accountability have long rung hollow, but today they sound even more ridiculous."

Bush has the lowest ranking of any U.S. President in the history of polling. In Latin America, his poll numbers are as low as Venezuela’s Hugo Chávez and Cuba’s Fidel Castro, places where people have little control over their own lives and where the middle class is nonexistent. What lesson will we take from this emerging reality?

The USA has done much good in the hemisphere, and more than a little harm. Now, more than ever, it is time to work together with our neighbors for a better future, and treat them the way we would like to be treated. For a related report, see the one below about Argentina…

Latin America via Edmonds

The side entrance to our office was lost in a dead sea of beige-painted bricks until Los Angeles-based muralist Carlie Monnier jazzed things up for us.

Here you see her rendition of our logo and a mural which invites visitors to stroll off the alley right into a Latin American pueblo scene. We're a proud sponsor of Edmond's monthly art walks but Carlie's stylings will delight visitors daily. To see more of this amazing artist's work, visit http://www.cmurals.com/

Come visit us any 3rd Thursday from 5-8pm to discuss your next change in latitude and visit 30 neighboring art venues all within walking distance of Main Street in downtown Edmonds.

U.S. Foreign Policy in Latin America

The following excerpts are from Nadia Martinez, a native of Panama and an associate fellow with the Institute for Policy Studies in Washington, D.C. Ms. Martinez recently became a U.S. citizen and wrote about "Respecting Our Neighbors to the South" in Yes! Magazine, Summer 2008.

"The United States become notorious during the 20th century for backing brutal dictators under the guise of preventing a communist takeover of Latin America. Past military interventions in Guatemala, Nicaragua, Panama, and elsewhere, and support of repressive regimes like that of Augusto Pinochet in Chile have made Latin Americans skeptical of U.S. motives. More recently, U.S. policy toward the region has focused on two issues: drugs and free trade. Both policies have harmed the economic and political lives of the region.

Today, Latin America is undergoing a transformation as indigenous and social movements are rising up and demanding a say about the future. Elected leaders in Argentina, Bolivia, Ecuador, Nicaragua, Venezuela, and to varying degrees, Brazil, Chile, and Uruguay are asserting themselves as symbols of an independent and even defiant Latin America. And votes in those countries are overwhelmingly backing them.

So how should the United States respond? A successful policy begins with respect. The U.S. should give the elected governments the space to succeed rather than flooding discredited opposition movements with aid in an attempt to influence elections and undermine governments as they are doing in Bolivia and Venezuela.

Respect can be shown also through abandoning our insistence on so-called "free" trade policies, which favor transnational corporations over the environment and the rights of workers. Instead, we can join the region's move toward fair trade policies that support sustainable development in poor countries and protect small farmers from unfettered competition with heavily subsidized agribusiness. Our trade policies should be based on the idea that our hemisphere is more secure when all peoples can develop diversified economies that meet local needs first, and raise people out of poverty and hopelessness. Strong local economies would also reduce pressure on poor people to migrate, easing much of the illegal immigration in the United States.

Respect can be extended by ending the senseless war on coca farmers, which has fueled conflict and human rights abuses. Instead, we could help countries deal with drug trafficking, money laundering, and other organized crime through good policing - if they request the help."

The time has passed for heavy-handed interventionist policy, especially in our own hemisphere. Read more from Nadia Martinez about What the Rise of Democratic Movements in Latin America Means for the Rest of the World.

Obama: A Better Neighbor for Latin America

Barack Obama is now the presumptive Democratic nominee and is likely to defeat Republican John McCain in this year's race for the presidency. What type of friend will Mr. Obama be to our neighbors in the hemisphere? It is a good time to consider Mr. Obama's positions and statements concerning Latin America:

(Photo Credit: Alex Brandon/Associated Press)

1. Mr. Obama recognizes that we have neglected our neighbors. "As has been the case throughout the world, our standing in the Americas has suffered as a result of the misguided policies and actions of the Bush Administration. The United States can ill afford this deterioration of our standing. With each passing day, we draw closer together to our neighbors to the south. This convergence creates new challenges, but it also opens the door to a more hopeful future."


2. Mr. Obama will make Latin American relations a higher priority; he sees Mr. Bush's declaration of 2007 as 'the year of engagement with the Americas' as too little, too late. "One year of engagement out of seven is simply not good enough. In light of the Bush Administration’s woeful record, creating false expectations does more harm than good. We must be realistic about the challenges we face, and what we are doing to address them. We must devote our full time, and our respectful attention to our relations within the hemisphere. "


3. Neither of this year's candidates for President could have a weaker energy policy than Mr. Bush put forth. To his credit, Mr. Obama recognizes Latin America's energy policy successes. "Brazil’s more than 30 years of renewable fuel technology investments allowed it to achieve energy independence last year. Ethanol now accounts for 40 percent of Brazil’s fuel usage. More than 80 percent of cars sold in Brazil today are flex fuel vehicles—capable of running on gasoline, ethanol, or a mixture thereof. Greater Brazilian production of renewable fuels could boost sustainable economic development throughout Latin America, and reshape the geopolitics of energy in the hemisphere, reducing the oil-driven influence of Venezuela's Hugo Chavez. The more inter-hemispheric production and use of ethanol and other biofuels occurs, and the more such indigenously-produced renewable fuels are used to replace fossil fuels, the better it is for our friends in the hemisphere."


4. Mr. Bush has been a fair-weather neighbor. Mr. Obama envisons a more altruistic approach to Latin American relations. "In Uruguay, President Bush has the opportunity to forge closer ties with President Tabaré Vázquez, and to show that the United States is ready, willing, and able to work productively with democratic-left governments. The United States is seen as supporting democracy when it produces a desired result. It is vital to reverse that trend."


5. Intelligent people realize the war on drugs is a poor use of taxpayer resources, as is building prisons to house nonviolent drug users. Mr. Obama understands that billions of dollars in US aid has gone toward war profiteering and the spraying of poisons on villages in S. America to kill crops such as coca. These herbicides poison local water tables. Mr. Obama is against Plan Columbia. He is not the first candidate to use drugs, but he is the first to be honest about it. Mr. Obama proposes giving first-time, non-violent offenders a chance to serve their sentence in rehabilitation programs rather than prisons. He understands that monies would be better invested in reducing the market in the US through prevention and recovery programs. Mr. Obama has pledged to fund job training, substance abuse and mental health counseling to ex-offenders, rather than militarization of Columbia and Mexico. Bill Clinton answered a question about his drug use by saying he had tried marijuana, but "didn't inhale." When asked, "Did you inhale?" Mr. Obama replied, "That was the point." It has been said that such honesty speaks to a generational change in politics, that new voters are more concerned with their leader's truthfulness than with their youthful transgressions. (John K. Wilson, 2007)


6. Mr. Bush's solution to the immigration question is to build fences between the USA and Mexico. This appallingly short-sighted and damaging act is a return to backward Berlin-wall thinking (and a billion dollar gift to Mr. Bush's contractor buddies in Texas). Mr. Obama voted against the Coburn Amendment (SA 1311) to S. 1348 to increase border control by requiring construction of the border fence. He prefers a policy approach. "The relationship between the United States and Mexico is among our most important in the world. But our complex relationship with Mexico has become captive to a single issue: the immigration debate in our country. There is consensus that our immigration system is broken. It is past time to fix it, and I am proud of my own support for a workable solution."

In summary, Mr. Obama will be a much better neighbor than Mr. Bush. He should visit Latin America early in his administration, and often. Mr. Obama has pledged to do so, adding... "We ignore Latin America at our own peril."

What is the sense in ignoring our neighbors until they can help us? I submit that this is ugly behavior. Unlike Mr. Bush in Austin, Mr. Obama helped his neighbors in Chicago before being elected to office. I am confident that he will expand upon this neighborliness when he moves to D.C.

Value Vacations

Dear Readers,

Where is your perfect destination? What makes a travel destination perfect? No matter your price range, value is a worthwhile consideration. Why pay 50% more for anything, especially upscale accommodations at peerless destinations?

Consider what you'll pay for 2 weeks in Hawaii, Europe, Canada, or Australia. $4000 per person, plus air, for budget accommodations in a group of 26 people. For the same amount of money and time exploring Latin America without the herd, you can live in high style. The photo here is our favorite place in Hawaii. We love Hawaii, but what about value?

This month Kiplingers polled 2200 travelers about their annual vacation plans asking, "Have high gas prices and the economic downturn forced you to reconsider travel plans for this summer?"

39% say no.
23% say they'll vacation closer to home.
31% say they won't be taking a trip this year.
7% are not sure.

We have good news for the 61% of you who are reconsidering your vacations. Latin America is nearby and full of incredible spas, nature-based resorts, and upscale countryside destinations. Stay out of the cities and you'll enjoy luxury vacations for the price others are paying to be herded like cattle into modest quarters.

Or you'll stay twice as long for the same investment. Or maybe you'll take your entire family for the price of a couple's vacation in N. America? Cost is not the most important vacation consideration, but value ranks high in my book. Ask me where I'm vacationing this year, and how it compares to my favorite places - even in Asia - on any measure. Latin America is an incredible value right now - on every measure.

Peace & Prosperity,
Mango Steve

Welcome!

This is the dawn of my travel blog which will provide "digital postcards" from paradise beginning in August 2007.