Research Library

This issue brief examines the various foreign policy strategies advanced by Worker’s Party-led administrations in Brazil since 2003. The brief also analyzes the current political and economic crises that have increased strain on the party’s leaders.

This issue brief explores the relationship between the opening of Mexico’s energy sector and the future of the country’s automotive industry.

The accession of a new king in Saudi Arabia and the kingdom’s intervention in Yemen have overshadowed important moves to reform two of the kingdom’s key institutions. Incoming King Salman has taken steps to prepare Saudi Arabia for a new generation of leaders, both within the royal family and among the world’s largest oil export sector and its marquee company, Saudi Aramco. The changes involve installing new personalities into key positions and shifting the roles of long-serving managers. "Overall, the moves ought to enhance the resilience of the kingdom and its economy by shifting leadership responsibilities to a younger generation," writes fellow Jim Krane.

As the implementation of Mexico’s historic energy reform gets underway, the debate has tended to overlook a key question at the intersection of technology and the new legislation: How can Mexico create an institutional framework supported by policies, laws and organizations to facilitate technology transfers and foster local innovation? Simply put, how will international oil companies transfer technology to Mexican companies and research facilities?

Brazilian President Dilma Rousseff is starting her second term in office facing economic and political problems that feed into each other. These problems can be attributed to a large extent to mistakes her administration made during her first term. Rousseff’s macroeconomic policy proved to be inconsistent, and the choices she made in some key economic sectors, especially energy, were demonstrably disastrous. Rousseff now faces the enormous challenge of reconciling the leftwing populism that led her to victory with the inescapable need to regain the trust of the most dynamic sectors of Brazilian society, including the private sector.

South America is likely facing a "second wave" of Chinese investment. How will China's rise to global economic power — and its transition to a new economic growth model — impact South America?

Although there are enormous potential benefits for Mexico's energy sector in the future, there are also important challenges the country must overcome to fully realize its energy potential. One of them has to do with the land ownership and land use regime in Mexico. As the legislative debate on the new Ley de Petróleos and the Ley de la Comisión Federal de Electricidad (Petroleum Act and Federal Electric Utility Act) proceeded in the summer of 2014, the Mexican Congress anticipated potential land-related conflicts associated with exploration and production activities related to hydrocarbons and new energy-related infrastructure projects. These potential conflicts stem from the fact that all of these projects will necessarily require the right of way to access and work on the resources in the subsoil of privately owned as well as on so-called “socially owned” lands in regions targeted for energy development. Thus, the Mexican Congress sought to avoid land-related conflicts by including language related to land ownership and use in the new energy legislation. The legislation, however, may not be able to prevent such conflicts.

As the United States once again ramps up involvement in Iraq, it makes sense to examine U.S. interests and strategy while considering what might constitute realistic parameters for participation and outcome. In this issue brief, energy fellow Jim Krane explores answers to the question "What are U.S. interests in Iraq and how are they best pursued?"

The Trans-Pacific Partnership Agreement offers an opportunity to deepen U.S.-Mexico economic ties without reopening the still contentious North American Free Trade Agreement for negotiation. It may also serve as a vehicle for advancing the current Mexican government’s economic reform agenda. The leaders of the U.S. and Mexico believe that the TPP will bolster domestic economic growth.

With the recent approval of Mexico's energy reform and the current enthusiasm of South American governments to attract foreign investment in oil, one might be tempted to conclude that the tide of resource nationalism is receding in the region. Nevertheless, the cycles of investment and expropriation that have characterized the oil sector in Latin America are unlikely to go away.