Transcript Economic Systems

US Southern Command
Area of Responsibility
Overview
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Area of Responsibility
Religion
Economic Systems
Political Systems
US Interests
Area of Responsibility
• Geography
– 1/6th of the world’s surface
– Land mass south of Mexico, waters
adjacent to Central and South
America, the Caribbean Sea, portion
of the Atlantic Ocean
– 31 countries and 10 territories
• Majority of population lives
within 100 miles of the ocean
• Large cities grossly overpopulated
Religion
• Roman Catholicism dominant
– Brought by colonialism and forced
conversion beginning in 1500s
– Dominant religion in 24 of 31
countries,; typically 90% or more
of population
– Number actively practicing and
professing faith are often different
• Roman Catholicism mixed with
indigenous or imported religions
Religion
• Dominant religions in non-Spanish colonies
(British, French, Dutch) fall in line with historic
colonial influence
• Evangelical Christianity surging throughout area in
recent decades
• Hindu, Islam, Judaism and Buddhism on rise due
to recent political and economic changes
Economic Systems
• Long term problems due to end of colonialism
• Foreign debt and worldwide recessions
• Free trade agreements in later twentieth and early
twenty-first century have provided major stimulus
to economies
• Strong economic ties between region and United
States: 50% of crude oil imports into United States
are from this region; 5x greater than imports from
Persian Gulf
Economic Systems
• Poverty
– 1 in 4 live on less that $2/day; 50% of those live
on less than $1/day
– High economic growth = increased demand for
exports = improvements in poverty around
region
– Despite improvements, nearly 70% of
population lives at poverty level or below
– Massive income disparity; one of most unequal
regions in the world
Economic Systems
• Poverty
– Contributing factors to high poverty rate include:
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Rural underdevelopment
Government failures/political instability
Widespread corruption
Lack of infrastructure
Ethnic discrimination
– Impoverished citizens are easy prey for illicit
traffickers, terrorist organizations, and political
demagogues
Economic Systems
• Crime
– One of world’s most violent areas
• Claims more than 100,000 lives/year
• Murder one of 5 main causes of death in several
countries
– 15% of region’s combined annual GDP
– Typically centers around drug trade
• More than 530 metric tons of cocaine smuggled
annually into United States from South America
• Central America becoming new hotbed for activity as
neighboring nations crack down
Economic Systems
• Crime
– Criminal groups take over regions where
government control is absent
– Criminals often collude with—or are actually
part of—local law enforcement
– Illicit trafficking costs legitimate economies
more than $245 billion annually
• $32 billion human trafficking
• $10 billion illegal arms trafficking
• $80 billion exotic wildlife trafficking
Economic Systems
• Crime
– Colombia
• Drug trafficking, extortion, and kidnapping are major
sources of funding for guerrilla groups and right-wing
paramilitary
• Efforts to dismantle major operations fractured
groups into smaller, autonomous organizations
– High crime rate comes from rapid
urbanization w/out infrastructure, income
inequality, culture of violence, lack of
opportunity for youth, corruption
Political Systems
• History of democracy across area
since end of colonialism in
nineteenth century
• Pendulum swings between
democracy and authoritarian
governments
• Cuba is currently only nondemocratic government in region
• Three different types of democracy
common: liberal, social welfare,
and quasi-democracy
Political Systems
• Democracy is challenged by a number of
issues:
– Economics
– Weak administrative capacity
– Anti-democratic opposition
– Drug trafficking
– Guerrilla movements
• Problems are causing many to lose faith in
democracy and support authoritarian rule
US Interests
• Commerce and Trade
– Largest trade market for the United States
– Two-thirds of ships transiting Panama Canal are
going to or coming from US ports, 16% of US
trade
– 17.8% of total US foreign investment worldwide
– 10 of 17 US free trade agreements are with
Central and South American countries
US Interests
• Commerce and Trade
– Total US foreign direct investment equals US
direct investment in Asia, Middle East, and
Africa combined
– Commerce Department and WTO estimate 2011
trade expected to exceed trade w/Europe and
Japan
US Interests
• National Security
– Conventional threats are low; non-traditional
challenges threaten region
– Illicit trafficking, transnational terrorism, crime,
gangs, potential spread of WMD are principal
security challenges
• Counterdrug and Narcoterrorism
– 90% of cocaine and 47% of heroine entering
United States comes from/through Colombia
US Interests
• Counterdrug and Narcoterrorism
– 60% of cocaine shipped from
South America in 2009 was
headed to United States
– As drugs flow into United States,
money, arms, and technology flow
back to region
– Counterdrug operations include
detection, monitoring, tracking,
and interdiction of drug runners
US Interests
• Theater Security Cooperation
– Asymmetic threats require shift in
security efforts
– Coalitions and regional
partnerships provide underlying
conditions for success
Summary
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Area of Responsibility
Religion
Economic Systems
Political Systems
US Interests