A Pattern in Failing States

A sad Christmas day message. It follows the pattern of how failed states decline and break apart.

When I was in college, I had an acquaintance from one of my calculus classes that was a mechanical engineering major. He was from Caracas, Venezuela and was the son of an executive in one of the country’s oil firms. He had been in college in Venezuela and was a few years older than the average college junior or senior. He drove a Porsche and prided himself in doing much of the maintenance and was active in some auto race club in Venezuela. We viewed him as an international “play boy”. After getting his bachelor’s degree he planned to return to Venezuela as an engineer. Among my college acquaintances he seemed to be one of the really wealthy ones. He reflected the oil wealth we saw from students from the Middle East. I had no idea back then how that country’s fortunes could change.

Three years ago I had a graduate teaching assistant in my summer class that was from Caracas as well. Both parents were physicians. By then reports were frequent in the media of the collapse of the Chavez and now Maduro economy as part of the failed Castro-oriented government. We had several conversations about her home country that semester and the next as she worked for my research group. She was married to a Cuban, who was also studying in our country in Washington, D.C. She described her home neighborhood in Caracas as prosperous and peaceful but said she had a several block walk from a nearby bus station when coming in from the airport and that she always wore older clothes and hid her cell phone. She said showing the phone would invite muggers. The last I heard from her, a year ago, was they had jobs in the Washington, D.C. Area and though both homesick for Cuba or Venezuela, were postponing their returns.

This pattern of economic and now social decay encompasses more than this country, Venezuela, extending through Brazil and much of Central America into Mexico. Latin America contains many of the world’s most violent cities with Acapulco in some countings, the world’s most violent. The promise of globalization from the 1980’s to 2010 with export jobs and rising incomes has ended. Regrettably, Venezuela may show the path for many other countries.

National collapses don’t typically happen abruptly. Decay begins in areas such as neighborhoods that then develop higher crime rates. Overall crime measures such as homicide rates are fairly dependable and rising rates correlate with rising decay. In time, cities and then larger geographical areas become unstable. The trend is evident in Mexico where states such as Guerrero (Acapulco), Michocoan, Tamaulipas (Matamoros, Reynosa, Nuevo Laredo) have professional crime groups, cartels, that challenge the state for control.

As “sanctuary hopes” abound in several American cities, the math is not promising. Much of the unanticipated strength of the vote for Donald Trump came from cities and states thought to be safe Democratic areas such as Michigan, Ohio, Pennsylvania, Missouri, West Virginia, etc. These states have cities such as Detroit, Cleveland, Chicago, Pittsburg, St. Louis that were formally bustling manufacturing cities now filed with unemployment and rising crime with St. Louis being among the 50 most violent cities in the world. Those persons, those neighborhoods seem be part of the calculus missed by the pollsters in this year’s Presidential Elections. In Europe, millions are being displaced and overwhelming limited immigrant resources. We see signs of that in the United States. This will be a strong theme in the next four years. Trump proposes to stop immigration. How that is done is not offered and the millions seeking sanctuary grow.

The solutions do not seem apparent.

http://www.nytimes.com/2016/12/25/world/americas/venezuela-hunger.html?_r=0

News Reports on Rising Mexico Violence

ACAPULCO
https://www.theguardian.com/cities/2016/dec/13/gunfire-tourist-resort-acapulco-mexico-torn-apart-violence

I was last there, Acapulco, 20 years ago and it was still a gem on the Pacific situated on a deep port with daredevil divers jumping from the heights along the shore north of the bay. Its prominence came from Hollywood stars making it a favorite retreat from the days of the 50’s and 60’s of Elizabeth Taylor, Frank Sinatra, Brigitt Bardo, John Wayne. My Mexican friends several times a year would drive from UNAM (the national university) or governmental offices in Mexico City on a super highway through Cuernavca slowly descending from over 5,000 feet to sea level as you cross a final mountain ridge down into Acapulco. The city was like central Mexico City, very European or American, but set in one of Mexico’s poorest states populated by rural people attracted to the City from the deep poverty of that part of Mexico that stretches south into Guatemala and El Salvador. Even on my last trip, years ago, the growing presences of Cartels were evident as the four of us headed back to Mexico City were stopped by a Mexican Army patrol that had just been engaged in a firefight with a drug smuggling gang. My three Mexican colleagues had no insight into that event nor did I suspect that we had seen the early start of the movement of drugs from South America along Mexico’s west coast headed for the States.

Mexico’s collapse into drug cartel wars is a warning for us in the States as well as a challenge on how to help Mexico. The new President’s call for building a wall to keep Mexico and Mexicans out is simply a bit naive. Mexico has a population of about 120 million and is the world’s largest customer of Texas’ exports. Here are some aspects:
In 2013, Texas goods exports reached a record-breaking height of $279.5 billion, an increase of 183%, or $180.6 billion, from its export level in 2003
1.1 million jobs were supported by Texas exports in 2013.
Texas’ export shipments of merchandise in 2013 totaled $279.5 billion.
The state’s largest market was Mexico. Texas posted merchandise exports of $100.9 billion to Mexico in 2013, representing 36.1 percent of the state’s total merchandise exports.
Mexico was followed by Canada ($26.1 billion), Brazil ($10.9 billion), China ($10.8 billion), and the Netherlands ($9.5 billion)
https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2014/October/FACT-SHEET-Unlocking-Economic-Opportunity-for-Texans-Through-Trade

And lastly a current accounting of the rising violence again across Mexico from the NY Times. For my take, geographically, Mexico is far and away the most important issue for the United States rather than Syria, Afghanistan, North Korea, etc. These are half a world away and Mexico is NEXT DOOR.
http://www.nytimes.com/2016/12/13/world/americas/mexico-drug-war-violence-donald-trump-wall.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region&region=top-news&WT.nav=top-news