China’s continual creep into Latin America

Two recent articles on the deepening ties of China and the Western Hemisphere.

Defense One has a piece on Chinese courting Latin American generals with lavish gifts and military training, building strategic ties with those who control the military in Latin America. Here is how the article opens

China has started to woo America’s nearest allies by funding “lavish” trips for Latin American military officers to live and study across the Pacific. Beijing is courting officers from the region, offering to cover the cost of military education and travel, Adm. Kurt Tidd, the commander of U.S. Southern Command, told lawmakers Thursday.

In a separate piece, Briebeart reports that “Adm. Kurt Tidd, the commander of SOUTHCOM, testified that Beijing has already pledged $500 billion in trade funds with various Latin American countries and $250 billion in Chinese direct investment over the next decade, adding:

American grand strategy is almost entirely designed to prevent a regional hegemonic power from being able to roam in America’s back yard. It has long been suspected that  the OBOR was the economic groundwork for a later security architecture. As well, Latin America has a history of military coups. According to research done by Marsteintredet & Berntzen (2008), 8 since 1991 alone. Both articles indicate China is laying the groundwork to act more aggressively in the West. It is not unreasonable to be concerned with this as there is probably a huge demand for their model among certain generals. That is, grow rich but retain political control.

Background on Chile’s Pension System

Alas, benefits have not measured up to people’s unrealistic expectations. The scheme’s founders told workers that if they contributed continuously throughout their careers they would receive a generous 70% of their final salaries upon retirement. And indeed, men who chipped in for 30 years or more earned an average pension of 77% of their final salary. But most workers contributed far less. Women took time off to raise children (and retire earlier than men). Many Chileans spent time in informal jobs or unemployed. On average, they contribute for only 40% of their prime working years.

 

For most people the 10% contribution rate, just half the average in the OECD, a club of mainly rich countries, is too low. As a result, the typical benefit, including a supplement paid to poor people, is 45% of a pensioner’s final salary, well below the OECD average of 61%. Women are worst off. They take home pensions worth 31% of their final salaries, compared with 60% for men. In 2008 the government decided to reward mothers for each child they raised by topping up their pensions, but that does not fully compensate for the shortfall.

You can read more at the Economist here.

Fidel Castro is dead

Here is the NYT write up.

It is difficult to find data that can be compared, but here is reporting on the average Cuban income as of 2015

The survey, which was conducted among 1,067 Cubans in Havana, Santiago de Cuba, Holguín, Camagüey, Pinar del Río, and Cienfuegos in May and June, found that about 27 percent of Cubans earn under $50 per month; 34 percent earn the equivalent of $50 to $100 per month; and 20 percent earn $101 to $200. Twelve percent reported earning $201 to $500 a month; and almost 4 percent said their monthly earnings topped $500, including 1.5 percent who said they earned more than $1,000.

The average poor person with no children living in the United States earns around 12,331 a year. This is 1,027 per month.
Remember that it is results, not intentions, that matter when evaluating public policy.
Viva the revolution.