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Tuesday, September 1, 2015

To Compete With China, The United States Should Promote A "Hemispheric Federation"

Given the ready alternatives of tunneling, "bridging" and blasting, there is no way a "wall" can keep motivated Mexicans out. 

Alan: Last evening, in conversation with friend Byron, I recalled this remarkable fact.

In 1955, Mexico's per capita income was higher than Spain's. (No typo.)


Currently, Spain's per capita income is 32,700 PPP dollars while Mexico's per capita income is 16,110 PPP dollars. (PPP stands for "Purchasing Power Parity".)


Spain's stunning transformation from "basket case" to one of the world's most desirable places to live culminates a developmental process which occurred in my own lifetime, a process largely attributable to Spain's membership in the European Union. 


In May and June of this year, I spent a month in Spain and was breath-taken by the exuberance of Spanish culture and the widespread prosperity of the Spanish people.

Not only has Spain's EU membership been beneficial, the developmental steps Madrid had to take to earn entrance to the EU were also indispensable precursors of Spain's current prosperity. 

As demonstrated by Spain's late 20th century experience, a motivational combination of carrots and sticks can create prosperity -- and correlative political development -- and achieve these ends in very short order.

Currently, the United States contemplates the not distant prospect of Chinese economic and political preeminence. (Beijing has already "annexed" sub-Saharan Africa and is making significant inroads across Latin America.)

How does a country with 319,000,000 citizens sidestep the onrushing steamroller of a nation whose population (and consequent domestic market) is four times bigger?

The answer is twofold.

First, the United States should promote a Hemispheric Union modeled roughly after the European Union.


Second, once established (20-30 years out) the Hemispheric Union will join a larger Federation with the European Union.


Currently, a Hemispheric Union would number 958 million people with the following demographic breakdown: United States - 319,000,000. Latin America - 604,000,000. Canada - 35,000,000.


Add the European Union's 503,000,000 inhabitants to a newly-established Hemispheric Union and The Overarching Federation outnumbers China's population of 1,357,000,000 by 7.7%.


Of equal or greater importance is the fact that China already lacks sufficient land to adequately support its existing population whereas The Americas could easily double -- if not treble --their population... not that such expansion is desirable, but in geopolitical theory these elements must be taken into account.


In 20 - 30 years, The Overarching Federation will be a global giant that dwarfs China. 


Before creating a Hemispheric Union however, Latin American polities would need to demonstrate clearly-defined "threshold requirements" for human rights, equal opportunity, environmental integrity and governmental  transparency. 


Those nations that meet these benchmarks will be rewarded with federation membership, resulting in open borders and equal economic opportunity across borders.


Although many will claim that Latin American nations could ever "meet muster," the fact is that many countries "south of the border" already have thriving economies based on relatively open markets and "state-of-the-art" market mechanisms. 


Among them are Brazil, Chile, Colombia, Costa Rica and Uruguay with a combined population of 274 million people.

Although Argentina has been sluggish, it enjoys a highly-educated populace whose capital city -- with 3 million sophisticated inhabitants -- approximates a "European" city.

Add Argentina's 42 million people and Mexico's 122 million and we have 438 million people belonging to polities that can easily achieve "escape velocity."

With properly devised "punishments and rewards," the achievement of Federation benchmarks is not only possible but both precedented and overwhelmingly likely. 


Recall Spain's great leap forward - from 2nd world status in 1955 to European Union membership in 1986 (after initial application in 1977). 



History of The European Union

Concerning Mexico's unique status as the only Latin American country to share a border with the United States, I will mention that the Mexican people - when made aware that "the border" will "open" if its government achieves Federation benchmarks - will, in no uncertain terms, inform its traditionally corrupt leadership that if The Ruling Class doesn't "shape up" it will be overthrown even it doing so requires a revolutionary reign of terror. 


Although I do not expect carnage, the real possibility that it could occur is already being discussed by North Carolina's Mexican community of which I am an "honorary member." 

The 65 year old Mexican couple that shares my home - a devoutly Catholic couple who "have always played by the book" - now speak as if armed uprising is nearly inevitable.


Should a Mexican Civil War be anything like Syria's, Uncle Sam should expect an irrespressible deluge of Mexican refugees who would rather risk death crossing the border than being caught in the midst of continual chaos.


The only way for Uncle Sam to forfend such chaos is to offer the Mexican people the "prosperity alternative" that their own government has blocked.


All that stands in the way of the geo-political necessity outlined above is American xenophobia exacerbated by American "Exceptionalism." 



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