Friday, April 5, 2013

Asian Globalization and Latin America


In the late 1990s and early 2000s, I collaborated with Steve Heine at Florida International University on a project called “Asian Globalization and Latin America.”  Funded by a U. S. Department of Education Title VI-D grant and sponsored by FIU’s Latin American and Caribbean Center (http://lacc.fiu.edu/), our grant spawned research in Pacific Rim studies and the forerunners of BRICS (the association of the emerging economies of Brazil-Russia-India-China-South Africa). The focus of that early research and dissemination was the multi-level relationships between the established and emerging economies of East Asia and those of Latin America. A large amount of our work dealt with the Japan-Brazil connections, beginning with the arrival at the port of Santos of the Kasato Maru in 1908, and continuing up to the so-called “return immigration” of Nikkei-Brazilian workers to Japan in the late 1980s and into the 1990s. Ironically, the beginning of Japanese immigration into Brazil was motivated by two contrary perceptions of Japanese racial identity: the “Gentlemen’s Agreement” of 1907 between the U.S. and Japan designed to curtail the immigration of Japanese manual labor into California in part as a response to anti-Japanese public opinion, and the re-marketing of Japanese identity as “white Asians” in order to promote immigration as laborers for Brazil’s booming coffee plantations at the beginning of the Twentieth Century. For a detailed discussion of Japanese immigration as part of the “whitening” of Brazil see Jeffrey Lesser’s Negotiating National Identity: Immigrants, Minorities, and the Struggle for Ethnicity in Brazil; also see Searching for Home Abroad: Japanese Brazilians and Transnationalism (Lesser, ed.)

At the same time that we began work on the grant, the second stage of Deng Xiaoping’s economic reforms started opening doors for foreign direct investment in the People’s Republic of China. The Asian globalization issues that developed from this policy revolved around the balancing of opportunities present in the pent-up commercial demands of a country with about a billion inhabitants, against the risks intrinsic in foreign enterprise coupled with at times contradictory stances from a government not accustomed to free-market practices. As we progressed into the first decade of the new millennium, the Chinese economy loomed immense in the world commercial outlook. The economic advantages of large numbers of very low-paid workers, and of minimal workplace regulations in terms of working conditions and salaries, combined to enable a flood of low-cost Chinese goods. The market realities led to China being able to undercut similar goods from Latin American producers even as many of the region’s economies strived to attain more stable and developed economies. Chinese made “knock-off” goods also led to conflicts of international intellectual property rights, a problem that had previous existed in Latin American economies during the periods of import substitution models in the 1970s and 1980s. The 2010s have seen a new role for Chinese products: a move toward not merely “Made in China” but rather “Created and Made in China.” As a Brazilian engineer put it after a 2012 trade show in Europe, in the past we would see armies of Chinese engineers roving the stands taking notes, and four to six months later the Chinese imitation products would hit the world markets. Now it’s the Chinese who have mounted their own stands with original products, especially high-end, luxury designs. In other words, the Chinese have leap-frogged over much of the Latin American industrial production while maintaining their output of lower-end, mass productions. This is viewed by many as an economic threat to the relative stability that the economies of Argentina, Brazil, Chile and Mexico have experienced since the beginning of the recession that struck the U.S. and the Euro Zone.

As I write these words, Kim Jong-un’s saber rattling dominates global concerns regarding Asia. Headlines in Latin America’s major newspapers, such as the Jornal do Brasil and Argentina’s Clarín, share the concerns expressed in all major world media. As North Korean missiles stand poised for launch, international and regional interactions with Japan, China, and other East Asian countries – especially South Korean – also face the threat of disruption and potential global economic impact.

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