Russia Finds
Banana Republics
More Attractive
By Sergey
Balmasov,
Pravda.Ru
In the last few
years there has
been an obvious
desire for
Russia to come
closer among the
so-called
“Banana
Republics” of
the Central
America
(Guatemala,
Salvador,
Honduras,
Nicaragua, Costa
Rica, and
Panama).
For example, in
1991 the Central
Integration
System was
created to
promote economic
cooperation. In
1997, another
important event
occurred when
the countries of
the region
signed the
“Declaration of
Nicaragua”
regarding the
intent to form a
political union.
If this happens,
the existing
“Banana
Republics” may
become history,
replaced by a
much stronger in
all respects
Central American
state. The
nature of
economic and
political
cooperation in
the future will
depend on
Russia’s
relations with
its individual
parts.
At the moment,
Russia cannot
boast
significant
achievements in
the development
of trade
relations with
the countries of
the region.
While the total
volume of their
trade amounts to
us$110 billion
Dollars, Russia
accounts for
mere 0.1%, which
is a little over
us$100 million
dollars. The top
places in the
trade with these
countries are
shared between
the USA, Mexico
and China.
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The majority of
Russian export
is fertilizers,
paper and
cardboard,
plastic and
plastic items,
and ferrous
metals. The
export from the
countries of the
Central America
to Russia is
represented by
tobacco, coffee,
fruit (mostly
bananas) and
nuts. It also
includes sugar,
cardamom,
timber, seafood,
beef and
poultry. All
countries of the
region import
grains,
fertilizers and
energy
equipment.
Central America
can be also
interesting
because of its
rich resources
that until
recently have
been weakly
developed. The
economy of the
countries is
very dependent
on fluctuations
of world prices
for agricultural
goods; therefore
many of them are
willing to
develop other
sectors as well,
including
mining. First of
all, it is
natural
resources such
as mercury and
sulphur. There
are large
deposits of
non-ferrous
metals (lead,
zinc, and
copper) and
precious metals
(gold and
silver).
Additionally,
according to
geological
research, there
are large
deposits of
asbestos, iron,
titan, chrome,
wolfram, and
platinum.
According to
Guatemala's
President Colom,
his country is
very interested
in cooperation
with Russia in
oil sector
considering that
Guatemala has
significant oil
resources,
although it is
not on the list
of the countries
believed to be
large oil
extractors. It
is worth
mentioning that
there are large
oil resources on
the shelf of the
majority of
Central American
counties which
they are not
capable of
exploiting
without foreign
aid.
Russia has
fruitful
cooperation with
some of them,
including
Nicaragua.
Additionally,
considering
large dependence
of the region’s
countries on the
import of
electric power,
we could suggest
that they would
be interested in
the development
of geothermal
energy and hydro
energy,
considering
significant
natural
capabilities.
Tourism is
another
important area
of cooperation.
To stimulate
this area,
Guatemala
cancelled entry
visas for
Russians in
2009. Other
countries of the
region also
introduced
various
simplifications
of the visa
process and
their leaders
openly state
that they want
to attract
Russian tourists
to their
countries.
Yevgeny
Khakimullin, an
expert in the
countries of the
region, provided
his comments to
Pravda.ru:
“The positive
moment is that
there are no
visa barriers
between the
majority of the
countries, and
tourists can
easily visit
other countries
of the region.
All these
countries are
interesting
because of their
versatile
natural
environment. A
number of
countries,
including
Belies,
Guatemala and
Salvador, boast
monuments that
attract tourists
from all over
the world. I
mean city-states
of the famous
Maya that
virtually have
not suffered in
contemporary
times. However,
serious
disadvantages
are high price
of tour packages
because of long
flights. A
package is no
less than
$2,000. Another
minus is the
lack of good
beaches loved by
Russian tourists
in these
countries.”
Another negative
moment is the
fact that
Central American
countries have
the highest
level of crime
in the entire
world. In
Guatemala, there
are 46 murders
per 100,000
residents a
year. This is
not surprising
because over 50%
of the
population live
below poverty
level.
Yet, Costa Rica
has proved that
the development
of ecotourism
can attract
millions of
visitors from
all over the
world and raise
the country’s
economy to the
unreachable
heights compared
to its
neighbors.
Military and
technical
cooperation is
also very
important. First
of all, it is
Nicaragua, as
well as
Guatemala that
is also
interested in
purchasing of
special
equipment for
divisions
participating in
fighting against
drug mafia.
Guatemala’s Vice
President Rafael
Espada stated in
an interview
with a local
newspaper Prensa
Libre that the
country was
interested in
purchasing
planes, armored
equipment and
other weapons to
fight organized
crime. He said
that the Russian
party suggested
Guatemala could
pay with sugar
and coffee.
But here is a
legitimate
question: what
to do with the
dependency on
the US? In
particular,
during his visit
to Russia,
Guatemala’s
President
expressed his
desire to
refocus his
trade
connections to
Russia. He
acknowledged
that their
cooperation with
the US, Mexico
and in a lesser
extent, Europe,
was a historic
matter. Today,
there is a
strong tendency
in the region
toward
liberation from
one-sided
dependency from
the US.
This is the same
reason the
development of
relations with
local elite
seems to be very
important.
Salvador
President Funes
is the most
popular
president of the
western
hemisphere who
is more popular
than Obama. He
is a former TV
journalist who
became popular
due to exposure
of corruption
and social
inequality. Now
he declared a
merciless war on
local rich who
evade taxes.
Additionally, he
restored
diplomatic
relations with
Cuba destroyed
50 years ago.
This act was a
challenge to
once popular
opinion that
Salvador
remained a US
satellite in all
respects. Funes
is not alone in
this desire and
Guatemala’s
Colom and
Nicaraguan
Ortega share his
position. |
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