Recent developments tend to point out that with the Obama Administration the U.S. will end its Lone Power stage and enter the Geopolitical Condominium Stage.
The former stage -- which began with the fall of the Berlin Wall -- lasted until China this year decided to fully enter development finance by means of creating a financial institution in partnership with the leading European powers.
Development finance and the ongoing anti-corruption campaign led by Xi Jinping are the pillars of a new partnership among world powers. And by all accounts Mr Xi is all set to consolidate this kind of society in China.
For the US these two developments open an opportunity to deal with a messy West where Bretton Woods restructuring was postponed as the need to take care of homeland security and the mortgage bubble took precedence. And as China cleans up its house and fosters economic opportunity in Asia, the U.S. can concentrate in following suit in our part of the world.
The starting point has, for a change, been Venezuela. Many have wondered why after so many years of benign neglect the Obama Administration produced a strong worded communiqué declaring the Bolivarian Republic a threat to national security.
The answer lies in the “American Dream” -- which too many now take to mean a house, a car and European vacations.
The truth is that the American Dream has two pillars: economic progress and rule of law. Rule of law is truly threatened by a RICO regime ruling the country that is the South American Gateway to the strategic Caribbean Sea.
According to distinguished Venezuelan economist Francisco Faraco, the ill-gotten fortunes of the top regime leaders and their acolytes are estimated to total $250 billion in undisclosed bank accounts around the world. Some of these accounts are beginning to surface, starting from the collapse of Stanford Bank, then Espirito Santo Bank and now with the U.S. government enacting a law sanctioning Venezuelan government officials responsible for human rights violations, money laundering, drug traffic, and corruption.
And most these funds have been injected into the international financial system through secret accounts lodged in Panama, Switzerland, Monaco, San Marino, Andorra, Hong Kong and the Cayman Islands. These funds transcend penal considerations to threaten world security through the continuous weakening of the rule of law, first in Venezuela but then everywhere in the world that the country’s governing gang sets foot.
As rule of law is battered, economic competitiveness turns into an impossible dream; Because no matter what the best relationship between price and quality is, public works will be auctioned to highest payers of bribes. As price competition is subdued, innovation and enhanced productivity take a rear seat. Jobs then are not created and the middle class suffers.
Continuity and preservation of the American Dream demands observance by all countries and individuals of the Palermo Convention on Transnational Organized Crime. This will softly kill the dreams of Venezuelan despots who seem to look to Russian Oligarchs as role-models.
And as law enforcement agencies in the U.S. and the rest of the world -- including China -- unveil more illicit accounts and proceed to freeze them, order will return to our hemisphere; which is hopefully about to experience a decade of cleansing that by means of eliminating the cost of corruption will set countries onto the path of creating middle classes as opposed to RICO oligarchs.
A long time ago when Venezuela was waking up into the 20th century, an iron fisted ruler was asked by one of his officials what should be done with the enemies of the regime. He answered “wield the full weight of law upon them.” This is exactly what the Obama Administration is doing!!
Also by Beatrice Rangel in her Latin America from 35,000 Feet series
Beatrice Rangel is President & CEO of the AMLA Consulting Group, which provides growth and partnership opportunities in US and Hispanic markets. AMLA identifies the best potential partner for businesses which are eager to exploit the growing buying power of the US Hispanic market and for US Corporations seeking to find investment partners in Latin America. Previously, she was Chief of Staff for Venezuela President Carlos Andres Perez as well as Chief Strategist for the Cisneros Group of Companies.
For her work throughout Latin America, Rangel has been honored with the Order of Merit of May from Argentina, the Condor of the Andes Order from Bolivia, the Bernardo O'Higgins Order by Chile, the Order of Boyaca from Colombia, and the National Order of Jose Matías Delgado from El Salvador.
You can follow her on twitter @BEPA2009 or contact her directly at BRangel@amlaconsulting.com.