Interview: Latin America in the New Global Economy Amid Ukraine Conflict - Toward Freedom

2022-09-17 06:17:11 By : Ms. Beulah Bai

Editor’s Note: Kawsachun News spoke to Ecuadorian economist Juan Fernando Terán on April 2 about Western sanctions, the Ukraine war and how Latin America can protect its economy. The original interview can be found here.

Who is paying the price of western sanctions on Russia? Ecuador’s banana industry has collapsed without the Russian consumer market.

Juan F. Terán: Countries that export food and agricultural goods are in an incredibly difficult position now. Ecuador, Colombia, Brazil and Argentina are among the worst affected. These countries import almost all the supplies they need for agricultural production; fertilizer, agrochemicals and even seeds in some cases. Sanctions have cut off these supplies. We could have prevented this situation.

Latin America lived through a golden era of development and integration during the period of leaders such as [former Ecuadorian President Rafael] Correa, [former Bolivian President] Evo Morales, [former Brazilian President] Lula [da Silva] and others. During these years, a lot of work went into the issue of how the region can start producing its own agricultural supplies. This was a flagship project of [Union of South American Nations] UNASUR. The aim was to guarantee food security in the face of fluctuations in international markets. There was also the proposal for a Latin American-wide bank and a common currency. This could’ve helped the region’s economy survive this current monetary crisis, too.

What’s happening now, though? Let’s look at the case of Ecuador: We have two main sources of income in exports. The first is oil. Logically, the war in Ukraine should have been beneficial because the price of oil has risen, which should mean more income from sales for Ecuador. However, the conservative President Guillermo Lasso had already promised the IMF the payment from future oil sales. Even if the price of oil goes to $300 (per barrel) it won’t benefit ordinary citizens.

JFT: The country also earns a lot by exporting goods such as bananas, coffee, shrimp and flowers. The primary market for Ecuadorian flower production is Russia. Now those producers are facing a dramatic crisis because sanctions have cut them off from their clients. This is a huge industry for Ecuador. In the provinces of Pichincha and Cotopaxi, there are entire regions dedicated almost entirely to flower production. They even have airports there because these flowers are exported to the world by plane. A small part of their production goes to the United States and Europe, but the large majority goes to Russia. Russia is one of the few countries where people buy flowers all year round rather than just for certain dates like Valentine’s Day.

What about our shrimp, coffee, or cacao exports? All that requires fertilizer and other imported agricultural supplies. Now there’s a global shortage, Russia was the world’s leading producer and now they’re sanctioned.

What has been the government’s response?

JFT: Countries can survive this storm if they have an umbrella, but Ecuador doesn’t have a progressive government. It has a neoliberal government. Our economy has no umbrella now.

What has been the neoliberal response to this current crisis? The flower producers were the first to ask for assistance. They asked for loans, so they can sustain themselves temporarily during this drop. President Lasso replied by saying that going into business means assuming risk and that the state has no obligation to bail anyone out. This idea of not bailing anyone out is a great idea in my opinion, but only if it’s applied evenly. We shouldn’t have to bail out the bankers when they have a crisis. But, of course, Guillermo Lasso will never abandon his people. He only abandons small farmers, who are now in crisis.

Electing progressive governments in Latin America is not a question of ideology; it’s also about citizens defending their economy and living standards. If a banker manages to win an election, then these are the results.

Many countries now see Washington as an unreliable ally and are looking to trade in different currencies. Do you think the U.S. dollar will lose its international hegemony? What would that mean for Latin America?

JFT: When the [Brazil, Russia, India, China, South Africa] BRICS countries start trading entirely in Yuan, or any currency that isn’t the dollar, then the world is going to really change. I think we can expect to see this transformation within the next five years. It’ll represent the definitive defeat of the U.S. empire. History shows us that a country’s military power is linked to the power of its currency.

When Britain ruled the world, the British pound dominated international trade. Even Ecuador’s external debt was in pound sterling during those years. The reserves of our central bank were in pound sterling. This came to an end after the end of World War 2 because the U.S. became the new dominant power and built the world’s financial and monetary institutions for its own ends. The current war in Ukraine is also about currency. The U.S. is participating in this conflict against Russia because they need to defend the power of the dollar.

What can the region do?

JFT: Latin America needs to slowly de-link our region from the U.S. dollar. We need to diversify our international currency reserves. Correa began to do this in Ecuador by investing in gold reserves. This was criticized by the opposition at the time. However, this diversification can only happen if we make the necessary changes to our commercial relations. If we’re to start building reserves in the Chinese yuan, then we need to deepen commercial relations with China to achieve this.

I think we should return to the proposal of UNASUR of creating a common Latin American currency with its own central bank. We also need a Latin American payment system. Look at how the U.S. is using SWIFT to cut off any country they don’t like from the global economy. We can’t allow that. It makes us vulnerable. Russia and China are creating their own payment systems. We should have our own as well.

There’s no use in just complaining about U.S. aggression. That’s what they do. They invade and attack countries all over the world. The real problem is that Latin America is exposed and unable to deal with this kind of economic war. In response, we need to turn towards Asia in a serious way. Why isn’t the Ecuadorian government securing new markets for our shrimp and banana in China? There’s huge demand there. Bolivia and Ecuador both have vast mineral wealth, we need to bypass the West and focus on Asia when it comes to trade and investment in these commodities.

U.S. media has attacked countries like Mexico, Brazil and Argentina, for not imposing their own economic sanctions on Russia. Do you think this capricious request from the United States will further break down the U.S. sphere of influence here and across the rest of the global South?

These sanctions are causing an inflation crisis for people everywhere. Europeans are paying 8-9 euros for a gallon of gasoline. In the U.S., it’s $4.75. Up to $6 in places like California and Miami. This is shocking. The sanctions are having a boomerang effect on the U.S. and its citizens. Though not everyone is suffering: Arms manufacturers are not suffering. People like [U.S. President Joe] Biden’s son [Hunter], with shady dealings in the gas business, are not going to suffer.

Financial analysis reports came out this week indicating that if the price of gasoline remains at $4.75 as a national average in the U.S., then the U.S. economy will enter into a recession at the end of this year. None of what they’re doing is reasonable from the perspective of ordinary citizens.

The arrest of journalist Roman Protasevich after his flight was diverted May 23 to the Belarusian capital of Minsk has generated more negative publicity for Belarus’ government and has raised questions about the extent of the new Cold War.

Protasevich, 26, is editor of outlawed Telegram channels that had stirred opposition to President Aleksandr Lukashenko, who has ruled Belarus since 1994. Telegram is a messaging application used on smartphones. High-profile individuals, media outlets and organizations also use it to broadcast one-way communications to their followers.

After the arrest, the Biden administration announced it would re-impose economic sanctions on state-owned companies in Belarus, and that it would add names to the list of sanctioned officials associated with “ongoing abuses of human rights and corruption.”

Dismissing Lukashenko’s claim that Protasevich’s flight contained a bomb threat, the New York Times editorialized that Lukashenko had “gone too far” in “hijacking a commercial airliner to kidnap an opposition journalist.” Aside from urging the U.S. response be “swift,” the Times referred to Lukashenko’s attempt as a “Jason Bourne plot.”

However, when former Bolivian President Evo Morales’ flight was forced to land in Vienna in 2013 because U.S. whistleblower Edward Snowden was thought to be on board, the incident was dismissed as a mistake.

Belarus is one of the last remaining socialist countries in the world and a close ally of Russia, a country the United States has targeted for decades via the first “Cold War”—when it was the former Soviet Union—and thereafter with neoliberal policies and NATO troops at its border. This puts Belarus particularly at risk for U.S. subversion.

The U.S. government has funded opposition movements against Lukashenko, who has been caricatured as a brutal dictator and a “throwback to the regional bosses of the Soviet era,” as the Times depicted him.

While some aspects of the criticism are accurate, Lukashenko has a considerable degree of popular support in Belarus because he resisted Western-imposed privatization programs in the 1990s and preserved a social safety net, resulting in low poverty and inequality levels.

The opposition movement has been depicted heroically even though it was photographed during anti-regime protests in August flying the pre-revolutionary flag, implying its goal was to reverse socialist-type economic programs.

Some of its members have ties to far right-wing networks in Europe that went unreported in the media.

A May 26 profile in the Times depicted Protasevich as a precocious young man who had bravely “resisted his country’s tyranny since he was 16” when he “first witnessed what he described as the ‘disgusting brutality’ of Mr. Lukashenko’s rule.”

His first arrest came when he watched a “clapping protest”—considered an offensive gesture in Belarus—against Lukashenko, causing him to be expelled from high school and his mother to resign as an army academy teacher.

After being forced to abandon his university studies, Protasevich became an opposition journalist in Poland, helped establish a Telegram channel to resist Lukashenko and joined forces with opposition leader Svetlana Tikhanovskaya in Lithuania.

Left out of the fawning portrait was Belarusian courts had determined the Telegram channels he had worked for, Belamova and Nexta, were “extremist” and first set up by people such as Igor Losik, who had served as consultants with the U.S. propaganda organ, Radio Free Europe.

Protasevich furthermore enlisted in a militia that fought alongside the neo-Nazi Azov battalion in eastern Ukraine against Russian backed separatists, was wounded in battle and reportedly worked for the Azov battalion’s press service.

Protasevich’s selfie in an explicitly neo-Nazi brand Sva Stone. It’s extremely unlikely that one can wear these T-shirts without being “in”. pic.twitter.com/brpsUgEpPw

— Volodymyr Ishchenko (@Volod_Ishchenko) May 26, 2021

Photographed in a T-shirt featuring far-right iconography, Protasevich is even suspected of being the young man featured with an assault rifle and military uniform on the front of Azov’s propaganda magazine, which is emblazoned with a large neo-Nazi symbol.

Fitting a century-long pattern of Russophobia, the Times has led the charge for a new Cold War against Russia and has supported regime change in Belarus.

When protests broke out over a contested election last summer, the Times erroneously predicted Lukashenko’s downfall many times, and in April chose not to report on a coup as well as an assassination plot led by an opposition politician holding a U.S. passport.

The biased coverage of Belarus has extended to alternative media like Counterpunch.

On May 31, it ran an article by an anti-Lukashenko playwright, Andrei Kureichik, titled “The Taking of Roman Protasevich,” which used hyperbolic language in characterizing Belarus as a “terrorist and criminal state.” In another exaggeration, Kureichik claimed Lukashenko had established “open air concentration camps” by “employing military weapons and special equipment against peaceful civilians without restrictions or liability.”

No mention was made of Protasevich’s ties to the Azov battalion in the article, nor about foreign backing of the anti-Lukashenko movement. The latter was confirmed by Russian pranksters Vovan and Lexus, who tricked Nina Ognianova, a National Endowment for Democracy (NED) senior European program officer, into admitting the NED had trained and funded the leaders of the protest movement that was working to overthrow Lukashenko.

After writing a book about U.S. bombardiers in World War II titled, Bombs Away: The Story of a Bomber Team, famed author John Steinbeck wrote: “We were all part of the war effort… correspondents were not liars, but it is in the things not mentioned that the untruth lies.”

These words apply very well to corporate media outlets—and sometimes even to the alternative press—when it comes to their coverage of Belarus, where it is in the things not mentioned that the untruth lies.

Jeremy Kuzmarov is Managing Editor of CovertAction Magazine and author of four books on U.S. foreign policy including, Obama’s Unending Wars (Clarity Press, 2019) and The Russians Are Coming, Again (Monthly Review Press, 2018), with John Marciano.

As the International #FreeAlexSaab Solidarity Committee reported June 6, a delegation is in Cabo Verde to meet Venezuelan envoy Alex Saab, who is imprisoned on U.S. orders. They aim to document the conditions of his confinement and demand his release.

Heading the humanitarian delegation is Cape Verdean religious leader Bishop Felipe Teixeira, Cape Verdean politician Pericles Tavares, and human rights activists Sara Flounders of International Action Center and Roger Harris of Task Force on the Americas.



In their first full day in Cabo Verde on June 4, the emergency human-rights delegation met with Saab’s lawyer and the Venezuelan ambassador, tried to meet with the local police commander, and saw first hand the prison-house where Saab is jailed. Heavily armed guards prevented a visit.

The solidarity committee is circulating a petition demanding Saab’s release and it is providing updates on Twitter.

Video of yesterday’s attempt to visit Alex Saab. Intimidating police presence. #FreeAlexSaabDelegation #FreeAlexSaab @FreedomAlexSaab @iacenter @TaskAmericas @RojoCamacaro @ecowas_cedeao @ghananews @CaboVerdeNews @All4GlobalJust @ninopagliccia @OrinocoTribune pic.twitter.com/bmXcm611GC

Below is an edited version of Roger Harris’ May 26 article, which appeared in venezuelanalysis.com, after first being published in Dissident Voice.

The case of Alex Saab raises dangerous precedents in terms of extraterritorial judicial abuse, violation of diplomatic status and even the use of torture to extract false confessions. This is according to Montréal-based international human-rights lawyer John Philpot. He spoke on May 19 at a webinar sponsored by the Alliance for Global Justice and other groups about this example of the long reach of the U.S. empire enforcing its deadly sanctions on some one-third of humanity.

United States Sanctions Venezuela for Being Sovereign

Activist Stansfield Smith of Chicago ALBA Solidarity commented that the Saab case is part of a larger U.S. effort to use “lawfare” to impose its illegal sanctions, which the United Nations condemns as “unilateral coercive measures.” The United States employs sanctions to discipline countries that attempt to develop independently of U.S. domination.

The United States is able to extend its imperial reach through its domination of the international financial system, which is U.S. dollar-denominated and mediated through the monetary exchange known as SWIFT. By controlling the international financial system, Smith explained, Washington can demand banks in foreign countries accept U.S. restrictions or face sanctions themselves.

Venezuela’s resistance to U.S. interference, starting with Hugo Chávez’s Bolivarian Revolution two decades ago, has been punished by the United States with mounting sanctions so extreme that they now amount to an asphyxiating blockade, causing severe shortages of food and medicine. Activist William Camacaro of the Alberto Lovera Bolivarian Circle attested to the impact on the people of Venezuela. This U.S. effort to achieve regime change is, in effect, collective punishment to coerce the Venezuelans to reject their elected government.

Even a report from the U.S. government readily admits “sanctions, particularly on the state oil company in 2019, likely contributed to the steeper decline of the Venezuelan economy.” This crippling blow to its oil industry has impacted Venezuela’s capability to generate electricity, conduct agriculture, and generate income from oil sales to fund social programs and import vital necessities, all of which have negatively impacted the lives of ordinary Venezuelans.

Once a leading oil exporter, Venezuela’s ability to import equipment components for its oil refineries and light oil to mix with its heavy crude has been cut off by the United States, devastating its productive capacity. The United States has even blocked international oil-for-food swaps by Venezuela.

United States Targets Mission to Import Fuel and Food

Alex Saab, Venezuelan special envoy and ambassador to the African Union, was on a mission flying from Caracas to Iran to procure food and gasoline for the Venezuelan CLAP food assistance program. Saab was detained on a refueling stop in the African nation of Cabo Verde and has been held in custody since June 12, 2020.

Saab’s “crime,” according to the U.S. government, which ordered the imprisonment, was money laundering. That is, Washington considers Saab’s international trade circumventing deadly U.S. sanctions to be money laundering.

After a 2-year investigation into Saab’s transactions with Swiss banks, the Swiss government concluded on March 25 no money laundering was involved. The real reason Saab is being persecuted is because he is serving his country’s interest rather than that of the United States. Saab was born in Colombia, but now holds Venezuelan citizenship.

The U.S. mandate for the arrest and extradition of Saab would be like Saudi Arabia demanding the arrest and extradition of a British citizen visiting Italy for wearing short-shorts. In essence, the United States does not have legal jurisdiction over a Venezuelan in Cabo Verde on his way to Iran.

The legal fig leaf for what amounts to a kidnapping was an INTERPOL “red notice,” which was not issued until a day after Saab’s arrest and was subsequently dropped. Saab has specified, “they tortured me and pressured me to sign voluntary extradition declarations and bear false witness against my government.”

Saab’s Distinguished African Defense Team

Saab’s attorney in Cabo Verde, Geraldo da Cruz Almeida, explained to the webinar the absurdity of the politically motivated legal case against his client. Saab has violated neither Cabo Verdean nor Venezuelan law. Moreover, Saab’s diplomatic status should have given him immunity from arrest.

The United States does not recognize Saab’s diplomatic status. But then again, U.S. President Joe Biden maintains the fiction that the self-appointed and Trump-anointed Juan Guaidó is president of Venezuela.

Femi Falana, former president of the West African Bar Association, spoke to the webinar from Nigeria. Attorney Falana represented Saab before the regional Economic Community of West African States (ECOWAS) Court. On March 15, the court ordered Saab’s release and cancellation of the extradition.

Under U.S. pressure, Cabo Verde continues to hold Saab. Attorney Falana has called on Biden to respect the rule of law and human rights in Africa. Activist Sara Flounders of the International Action Center pointed out 15 of the 39 countries under illegal U.S. sanctions are African.

Ranking 175th and 185th among the countries of the world in terms of geographic area and economic size, respectively, the Republic of Cabo Verde is vulnerable to U.S. strong-arm tactics. It is resource-poor and depends on tourism and remittances from abroad. Shortly after Saab’s arrest, the United States gifted $1.5 million to private-sector entities in Cabo Verde on top of some $284 million total in U.S. aid over the last 20 years.

The U.S. State Department describes Cabo Verde as “an important partner” where the “current administration has prioritized relations with the United States and Europe.” The U.S. Bureau for International Narcotics Law Enforcement funds and supports activities in Cabo Verde, while the Boston Police Department works with Cabo Verde police.

Cabo Verde, it should be noted, is important in the history of African liberation. Marxist Amílcar Cabral led the liberation movement of Guinea-Bissau and Cabo Verde Islands and was assassinated in 1973, only months before declaring its independence from Portugal.

Meng Wanzhou, a Chinese national doing business in Canada, is under arrest for “bank fraud” and is fighting extradition to the United States. North Korean Mun Chol Myong has already been extradited to the United States from Malaysia on similar charges to those used against Saab, for doing business according to international law rather than abiding by illegal U.S. measures.

In short, Saab’s is not an isolated case of U.S. misconduct around enforcing its illegal sanctions, but an emerging pattern.

That the United States can engineer the arrest of a diplomat—who has immunity per international law even in a time of war—is a dangerous precedent. That the arrest was extraterritorial is worse. This harkens back to the flagrantly illegal and inhumane U.S. practice of extraordinary rendition, which was used to populate the Guantánamo torture chambers.

The award-winning movie The Mauritanian is about the true story of crusading lawyer Nancy Hollander, who successfully freed a tortured innocent man from the made-in-the-USA hell of Guantánamo. The Hollander character, played in the movie by Jodie Foster, says: “I am not just defending him, I am defending the rule of law.”

The real-life Nancy Hollander attended the webinar. A lawyer’s delegation to Cabo Verde in solidarity with Saab is being planned and a petition campaign on his behalf is underway. These efforts recognize that the defense of Alex Saab is a defense of the rule of international law against illegal U.S. sanctions.

With the possible extradition of a Venezuelan diplomat to the United States on bogus charges, an emergency human-rights delegation organized by the International Campaign to Free Alex Saab was quickly dispatched to Cabo Verde, where he is imprisoned. This island archipelago nation off the west coast of Africa is one of the smallest, poorest and geographically isolated countries in the world. 

The international human-rights delegation did not gain Alex Saab’s freedom. Officials denied them a visit with him. But breakthroughs were made in raising the visibility of the case, which involves enormous political, legal and moral issues with long-term political consequences. 

The case involves the abduction of a diplomat by the world’s sole superpower locked in an unequal struggle to destroy the formerly prosperous, oil-rich country of Venezuela. The attack on Venezuela is not motivated on the U.S. part by the imperfections in Venezuelan society, but on Venezuela’s past successes in fighting poverty, promoting regional integration, and acting like a sovereign nation. Otherwise, the United States would be lavishing aid on Venezuela, instead of on the apartheid state of Israel, the nacro-state of Colombia and the absolute monarchy of Saudi Arabia. 

The kidnapping of Alex Saab is a dramatic and far-reaching effort to enforce the illegal U.S.-decreed policy of economic sanctions. The United States is attempting to impose its will on a country by deliberately attacking the civilian population. Illegal sanctions are a conscious policy of imposing economic havoc to “make the economy scream.” 

Saab, a Venezuelan diplomat abducted by the U.S. government a year ago, has been held under torturous conditions. The United States denying diplomatic immunity violates international law. 

International Campaign to Free Alex Saab 

The powerful corporate media, by omission, can render a news item invisible. The Saab case is virtually unknown in the United States, even among progressive political journalists, left organizations and solidarity activists. Washington’s demand for the extradition of Alex Saab is being covered more extensively in African and Latin American publications. In Venezuela, as expected, the case is well known. 

Among some who are aware of the case, an inordinate concentration on the Saab, the individual, obscures the larger issues of national sovereignty and human rights. 

Gathering information on what was involved was no easy task. The U.S. charge of “money laundering” by a private businessman in a country wracked by extreme shortages hardly created sympathy for Saab’s case. It was only as the actual facts emerged that a support plan evolved for the international solidarity campaign. 

That Saab has withstood a year-long arrest, torture and months of solitary confinement rather than comply with U.S. demands to cooperate indicates he is not just a businessman willing to sell to the highest bidder. 

The four-person human-rights delegation in Cabo Verde knocked on government doors, conducted interviews and spoke with the media. The local activist movement and a strong legal team supported them. The delegation was led by a Cabo Verde citizen, Bishop Filipe Teixeira, OFSCJ, a religious leader who lives in the Boston area and leads a congregation of Cabo Verdeans. Teixeira has a history of participating in social justice campaigns. Tweets, Facebook links and news reports have helped penetrate the wall of silence. 

After collecting thousands of signatures, an international petition is being forwarded to the president and prime minister of Cabo Verde as well as to U.S. President Joe Biden. Several webinars to raise awareness were held, including one with Saab’s lawyers speaking from Cabo Verde and Nigeria. 

Visit: Attorney General’s Office/Department of Justice to request Emergency meeting on US demand for extradition.Letter also be sent #FreeAlexSaabDelegation #FreeAlexSaab @iacenter @TaskAmericas @RojoCamacaro @ecowas_cedeao @ghananews @CaboVerdeNews @All4GlobalJust @ninopagliccia pic.twitter.com/9KyEDXgs4e

Solidarity and people’s movements working together can become a powerful material force, breaking through silence, fear and repression. The focus for international solidarity work in this period is to defend movements and even countries under relentless U.S. imperialist attack and destabilization. This is done without placing unrealistic expectations or creating unrealistic images of how wonderful the internal situation in the targeted country is. Solidarity is not a pass for interference, second guessing, criticism or for euphoric idealism. 

It is essential to focus full attention on the source of the problem—U.S. imperialism—and not get lost in the weeds of criticizing the victim. U.S. sabotage, imposed shortages, mercenary attacks and fueling national antagonism are intended to create and intensify internal divisions. Shortages are intended to increase corruption, side deals, privilege and resentment. The targeted country may be wrongly blamed for the crisis created by U.S. actions. 

Simply put, many progressive goals are thwarted under conditions of illegal sanctions, because that is the purpose of sanctions. The victimized country is obligated to defend itself in the face of destabilization and constant sabotage. 

At each step, keeping the focus on the crime of U.S. actions provides a grounding for progressive solidarity. This is true not only in defending attempts at revolutionary change, such as in Cuba or Venezuela. We also raised the U.S. role in Cabo Verde, a country that clearly didn’t decide on its own to pull Saab from his flight or order him detained. Cabo Verde’s isolation and strategic position simply made that country a convenient location for the long arm of U.S. extraterritorial judicial overreach. 

This case must be used in the global challenge against arrogant U.S. lawlessness. 

This article was originally published by the International Action Center and edited by Toward Freedom. A previous article by Roger Harris delved into the impact of sanctions.

Sara Flounders of International Action Center and Roger D. Harris of Task Force on the Americas were in Cabo Verde June 3-10 on the emergency human-rights delegation organized by the International Campaign to Free Alex Saab. The case can be followed on Twitter.

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