Every Problem is an Opportunity in Disguise

So Trump wants to limit trade with Mexico. I think it is a great idea. Mexico and Latin America as a whole must take this opportunity to reorganize themselves as a regional power and cut the umbilical cord with the US and the European Union. Latin America is a super power, but divided we fail, thus united we shall stand. Let’s just take a look at the numbers.

Area
While currently Russia is the largest country in the world with 17,098,246 square kilometers, Latin America expands with 19,197,000 square kilometers. Unlike any other country or region, the extensity of the land as well as the diverse topography and climate allows could allow the region to be self-sustainable. Brazil is the third largest producer of iron ore in the world, with Chile, Mexico, Venezuela, Peru and Colombia within the top 30 producers in the world. Regarding energy, the region is the third largest producer of natural gas in the world with and output of 229 billion cubic meters. The region already has the largest oil reserves with 338,298 MMbbl with Venezuela, Brazil, and Mexico having the largest reserves of the region. Chile, Peru and Mexico are among the largest producers of cooper in the world. These are just some example of the natural wealth of the region, but the list goes on and on with a tremendous output in commodities.

Population
Latin America has the third largest population in the world with 626 million people, of which over 400 million speak Spanish and the rest Portuguese. Certainly, Latin America is very rich in cultural diversity, with hundreds of languages spoken in the region, but with a cultural identity that unites the 20 nations.

Notwithstanding the cultural diversity, the unified identity allows for smooth integration. Latin America does not have centuries of cultural antagonism that Europe has had.

Economy
While the US, the EU and China has the largest GDPs with $18,5 trillion $17,1 trillion and $11,3 trillion respectively, Latin America will have the fourth largest economy with $9,5 trillion. The unified size of the economy could allow the region a couple of things: first, an economic integration will allow the regional industry to grow and become more robust. The finance industry, manufacturing, agriculture and commodities will be able to grow and compete in the international markets in a more convenient situation. Second, it will allow the region to be a better world player in international finance and trade deals. Latin America could end being bullied by the US, Europe or China.

Latin America would be a force to be reckoned with, considering that it will also have the second largest army after China.

Challenges
Latin America will have resolve some serious issues in order to achieve a successful integration and become a sustainable and powerful union.
Effective Judicial System
Traditionally, the region has not given enough credit to the benefits of having an efficient judicial system. The levels of corruption in government prevents the local congresses to develop the appropriate laws and budgets to sustain a legitimate and effective judicial system. The purpose of a robust judicial system is to allow people to live in a secure environment. The concept of security must be understood from two angles: first, the security that you can bring your civil claims to court for any civil issues such as contracts and torts. Second the security to know that criminals will be prosecuted and put in jail when they break the law. Currently, it is very difficult to find solution to civil matters in court and the level of impunity in criminal courts is very high.

The best example of the importance of an efficient judicial system is narcotrafficking. Latin America needs to stop the drug wars in Mexico and Central America. The region cannot continue to account for a third of the murders worldwide. Gang violence in Brazil, El Salvador and Honduras, and the development of violent crime in Venezuela and Mexico certainly affects the wellbeing of its citizens. This has to stop. In that same direction, it is extremely important that criminal defendants are granted due process rights and humane treatment. Latin America cannot put people in deplorable prisons that amounts to a death sentence.

Infrastructure
It is quintessential for the region to develop a first class rail and road system. The region needs to be connected with great roads and rails from Mexico to Patagonia, from Brazil to Peru and Colombia. In addition, sea ports and airports must connect people and trade.

With more than two trillion dollars in assets, the largest banks in Mexico and Brazil alone can finance large infrastructure projects in the region. This mass of wealth does not include the financing opportunities from countries like Chile, Argentina, Colombia and Peru. A Latin American Development Bank can create a lot of opportunity for the region to develop. We would not be dependent of the World Bank and the IMF anymore.

Nationalism
Latin Americans need to stop fighting for crumbs. Small economies such as the Central American economies are too protective of insignificant producers just for the sake of protecting what is national. Rivalry between some countries, such as Peru and Chile, Honduras and Guatemala, Venezuela and Colombia needs to stop.

Latin Americans need to realize that we are weak small nations with little chance of success if we stand alone. While Colombia has a significant population of more than 40 million and  a GDP of 700 billion USD, the balance of power is very outweighed with China the EU or the US.

The key to success is to join forces and to find the reasons to be united, not reasons to be divided.

Nationalism has given rise to regimes in Venezuela, Cuba and Nicaragua. The goal in the 21^st century is not to fight capitalism, but to find our regional identity and develop our cultural strength and might. While there is a cultural identity, at the same time, there is a wealth of diversity that we need to embrace. Latin America has developed in the past two centuries with significant waves of immigrants from all over the world. We cannot close our minds to immigration and diversity, and thus, we need to abandon nationalistic banners.

I may be a dreamer, but it was very inspiring when Peruvian President Pedro Pablo Kuczynski and Colombian president Juan Manuel Santos vowed to stand with Mexico in light of president Trumps intention to impose a 20% tax in Mexican goods. I wish Chile and Brazil had supported Argentina in the Malvinas Island war against the UK. I wish, Mexico, Colombia and Venezuela would have supported Nicaragua and El Salvador with the US intervention in the 80s. I wish Venezuela, Ecuador and Brazil would have supported Colombia with the FARC.

Will this tax affect Mexico? I have no doubt that restrictive trade policies in the US will affect Mexico and any other country that Trump plans to attack with trade restrictions. Smaller economies such as Mexico’s and the rest of Latin America need to take this opportunity to become a stronger union. Mexico’s future is not to depend on the US racist underestimation of the Latin economies, but rather to acknowledge its strength and to become a power player in the region. By the same token, Latin America’s future is to be united and to become a power house.

So, am I afraid of Trump’s nationalistic policies? No, I am not. I am more afraid of the traditional lack of vision of Latin Americans. It’s time to unite and awake the sleeping giant within.