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Soriek  1yr ago (text post)   1644 thread views

Transnational Thursdays 26

This is a weekly thread for people to discuss international news, foreign policy or IR history. I usually start off with coverage of some current events from a mix of countries I follow personally and countries I think the forum lives in or might be interested in. Feel free as well to drop in with coverage of countries you’re interested in, talk about ongoing dynamics like the wars in Israel or Ukraine, or even just whatever you’re reading.

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El Salvador

While some activists for democracy have been worried by President Bukele looking increasingly nearer to taking an unprecedented second term, he maintains substantial support from the population as well as, uh, bitcoin enthusiasts:

With President Nayib Bukele’s re-election date less than three months away, Bitcoin is seeing continued increases in institutional support within El Salvador, suggesting a strong foundation for the country’s experiment with Bitcoin as legal tender…

Although these two years [since switching from the US dollar to Bitcoin] have been marked by growing pains, many clear signs now exist that El Salvador’s new economic model is gaining acceptance in the broader world economy. For instance, the S&P upgraded the nation’s credit rating in November, citing consistent efforts to manage its debt obligations and overall economic stability. A major boost to this growing stability has been Bitcoin and its new opportunities, as tourism has massively increased with visitors from the US alone doubling since Bukele first took office. Bukele’s administration credits Bitcoin with this success, with Vice President Ulloa calling it the “driving force” of the “rebirth of the country." The data seems to bear this out, as El Salvador has become popular with foreign full-time residents in addition to tourists, due to the ease of using bitcoin in daily life.

Also, El Salvador has now agreed to begin levying substantial fines of $1,130 on travelers coming from Africa and India. Coincidentally, this is exactly the kind of action the US has been requesting of Central America, coming at a time when Bukele doesn’t want too much US criticism of his constitutionally murky candidacy in the election in three months:

El Salvador’s aviation authority said most passengers who have to pay the fee are headed to Nicaragua on the commercial airline Avianca. Because of its lax visa requirements, Nicaragua is a transit point for migrants from Haiti and Cuba, as well as from Africa, who are trying to reach the U.S.

A U.S. embassy spokesperson declined to say whether the U.S. had requested the fee. But the ability to help the U.S. control migration could be a political boon for El Salvador President Nayib Bukele as he seeks reelection despite a constitutional prohibition and faces scrutiny for his human rights record…

While the Biden administration has said Central American nations “ need to step up and do more” to control migration, not all of them have received the request with open arms.

“Most governments have recognized that what is of clear interest to the United States is migration and so therefore it becomes a bargaining chip,” said Pamela Ruiz, Central America analyst for International Crisis Group. “They will either become partners or adversaries on this issue.”

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