The Potential and Choice of “Docking” China-LAC Economic Development Strategy                       

Xin Xiaodai (1)

China-Latin America Relations in the Stage of “Constructive Development”           

Zhao Zhongyang, Chen Yuanting (16)

China’s Cultural Diffusion toward Latin America: the Perspective of Literature                                

Lou Yu (31)

Analysis of the Evolution of US-Cuba Relations Based on the Perspective of Levels Analysis of Structural Realism          

Lu Siheng (45)

Analysis on the Development of Cuba’s Foreign Policy since the Updating of Cuban Economic Model                       

 Han Han (60)

On Latin America’s Structural Reforms                       

Jiang Shixue (74)

The National Underpinning of Region-Building in Latin America: Complementarity and Competition                         

Zhang Fan (88)

Impact of Mining on Agricultural Production in Peru, Heterogeneous Impacts and Transmission Channels  

César Del Pozo Loayza, Valerio Paucarmayta Tacuri (110)

Economic Valuation of Improvements in Environmental Services in the Contour of the Huatanay River in Cusco                    

Esther Guzmán Pacheco (125)

Voluntary Contributions to Solid Waste Management in Cusco: Evidence from Behavioral Experiments         

Esther Guzmán Pacheco, César Del Pozo Loayza (154)

Abstracts

1  The Potential and Choice of “Docking” China-LAC Economic Development Strategy

Xin Xiaodai

Abstract: Recently, China and Latin America and Caribbean (LAC) have witnessed a rapid and significant growth in both bilateral trade and FDI linkage. It’s necessary to explore the potential “docking points” of the economic development strategies of both sides in depth. According to a time series data analysis since 1960, this paper conducts a comparative study on the different development courses of China and LAC in the context of China’s New Normal strategy and LAC’s industrialization process. The author finds that there is a concrete common basis in China-LAC cooperation in future. Market-oriented rule and mutually respected attitude should be strictly followed in the process of “docking” the economic development strategies of both sides. In the “docking” process, bilateral trade and FDI linkage are the twin-engines to facilitate both the sustainable development in LAC and the structural reform in China. Although there are challenges ahead, wise policy measures can help deliver a bright future of the China-Lac economic cooperation.

Key words：economic development strategy, “docking”, China-LAC economic cooperation, bilateral trade, FDI, developing countries

16  China-Latin America Relations in the Stage of “Constructive Development”

Zhao Zhongyang, Chen Yuanting

Abstract: The relationship between China and Latin America has gone through the two stages of dependent development and autonomous development, and has now entered a new stage of “constructive development”. The connotations of this relationship include creating a community of shared future for China and Latin America as a strategic goal, establishing new China-Latin America cooperation framework as a strategic path, and adhering the consensus of “win-win” and “not against third parties” as a principle. However, due to the uncertainty of this world and the complexity of economic transformation in both China and Latin America, their relations still face many challenges. There are several major contradictions to be resolved. The first is the gap between the gradual improvement of China-Latin America cooperation mechanism and the unrealistic high expectations of the cooperation. The second is the contradiction between China’s continuing strategic input to Latin America and the limited capacity of Latin American countries to undertake it. The third is the contradiction between the urgent need to promote China-Latin America relations and the significant lack of mutual recognition on both sides. Therefore, China and Latin America need to construct and shape their shared values ​​and cognitive ideas in the future.

Key words: China-Latin America relations, constructive development, common destiny, new stage of development

31  China’s Cultural Diffusion toward Latin America: the Perspective of Literature

Lou Yu 

Abstract：As China has developed increasingly closer political and economic ties with Latin America and the Caribbean, long-ignored cultural ties began to be given more attention and entered the China’s policy agenda in recent years. As for China side, the strength of cultural ties will contribute to mutual understanding between China and Latin America, promote China’s soft power and consequently improve public perception of China in this region. Literature is one of the most important elements of culture and considered to hold the power of touching reader’s hearts and minds. It is well believed that the diffusion of Chinese literature toward Latin America can help achieve these goals. Based on the statement of relations between cultural soft power and literature diffusion, the essay first makes a systematic review of the history of Chinese literature diffusion toward Latin American. In comparison with the history of Latin American literature diffusion in China, the essay goes on to present a full analysis of the imbalance of Chinese literature diffusion toward Latin America, mainly in the form of quantity deficit, influence deficit as well as time lag and second language acquisition lag. As a conclusion, the author gives some suggestions to address these problems.

Key words：Latin America, cultural soft power, cultural communication, literature translation and publication

45  Analysis of the Evolution of US-Cuba Relations Based on the Perspective of Levels Analysis of Structural Realism

Lu Siheng

Abstract: In the history of more than half a century since Cuba’ revolution, the relationship between the United States and Cuba has undergone an important transformation from confrontation to reconstruction. Based on the research framework of levels analysis of Structural Realism, this paper attempts to find out the regularity of the development of U.S.-Cuba relations and its characteristics of historical evolution from three levels. On the international system level, the global political environment transformed from the bipolar pattern to the “one superpower and multiple big-powers”, and then to the multi-polarization pattern. As the declining of American hegemony in the game between big powers, and the transformation of Western Hemisphere geopolitical landscape brought by the rise of the Latin American left-wing forces, for the United States, Cuba has transited from a bargaining chip for the exchange of interests and the maintenance of hegemonic balance of power, to a breakthrough point of strategic redeployment toward Latin America. On the national level, the confrontation and contact between U.S. and Cuba are based on the consideration of safeguarding their own national security and their domestic development. The evolution of traditional values and the pursuits of interest groups greatly reduced the political cost of normalizing relationship between U.S. and Cuba. On the individual level, the strategic focuses and policy preferences of different policy makers evolves in different periods. On the whole, however, ideological divisions between the two countries have gradually faded and their political positions have become more pragmatic.

Key words: The United States, Cuba, structural realism, levels analysis, normalization of bilateral relations

60  Analysis on the Development of Cuba’s Foreign Policy since the Updating of Cuban Economic Model

Han Han

Abstract：In recent years, Cuba has made several diplomatic progresses, such as the resumption of relations with the United States and the successful mediation in the Colombian peace talks. Faced with the internal and external variables, Cuba achieved the “adversative diplomacy”, which attracted the world’s attention. Cuba took diplomatic opportunity as the United States, European Union, Russia and other countries adjusted their diplomatic strategies, especially as China is enhancing its relationship with Cuba. Cuba’s diplomacy faces favorable external environment since Raul Castro came into power and carried “updating” of its socialist regime. Raul followed the independent diplomatic ideas established by Fidel Castro while adopting “updating” policy in the fields of both diplomacy and domestic development. The development of the national economy and improvement of the people’s livelihood have boosted Cuba’s international status. The positive and flexible foreign policy adopted by Raul has achieved the dual goal of maintaining independence and domestic control. Cuba’s foreign policies are increasingly taking advantage of its characteristics in the fields of medicine, religion and culture. The adjustment of foreign policy has benefited Cuba with significant achievements. Yet, the future transition of Cuban diplomacy still faces many challenges.

Key words: international situation, strategic adjustment, Cuban diplomacy, “updating” of socialism

74  On Latin America’s Structural Reforms

 Jiang Shixue

 Abstract:  Structural reforms are expected to tackle supply-side problems. The first generation of structural reforms in Latin America, which began in the “lost decade” of the 1980s, generated both positive and negative results. Therefore, starting from the 1990s, the reforms started to shift from the first generation to the second generation. The tentative assessment of the second generation of structural reforms are encouraging in following aspects: more efforts have been made to promote social development; the role of the state in many areas has been attached greater emphasis; macroeconomic situation has become more stable and financial regulation has been strengthened; some enterprises have witnessed rising competitiveness; and the region has constructed a multilateral pattern for its external relations with the world. To gain a better understanding of its structural reforms, further researches must be undertaken on the following issues: how to judge the long-term results of the reforms; how to understand China’s contributions to Latin America’s economy; how to assess the policies of the left-wing governments; how to make good use of the region’s comparative advantage and upgrade its economic structures on the other; and how to further improve the relationship between the government and the market.

Key words: Latin America, economic, structural reform, market mechanism, comparative advantage, privatization, social policy

88  The National Underpinning of Region-Building in Latin America: Complementarity and Competition

Zhang Fan

Abstract: This paper addresses the region-building process in Latin America around the turn of the century through the perspective of national foreign policy analysis. The two dimensions, i.e., cooperation and integration are identified as the main foreign policy choices of Latin American countries. Analysis of the different national strategies for regional projects reveals that various shallow agreements of these projects had never been fully implemented. The motivations and mechanisms of regional projects display the different avenues that the region is undertaking in terms of regional balance of power, institution-building and collective identity-building. Their interactions with the outside world and among themselves demonstrate that relations between Latin American countries are both complementary and competitive at regional and sub-regional level. The paper also explores the inherent manner of Latin American integration in light of the historical evolution of the three major integrated organizations, i.e., the Pacific Alliance, ALBA and Mercosur, indicating that the member states hold predominantly self-concerned national interests with the individual nation-state being the ultimate frame of reference.

Key words: national foreign policy, regionalism, cooperation, integration, Pacific Alliance, ALBA, Mercosur

110  Impact of Mining on Agricultural Production in Peru, Heterogeneous Impacts and Transmission Channels

César Del Pozo Loayza, Valerio Paucarmayta Tacuri

Abstract: In Peru, the dynamism of the mining sector has generated a contradiction at the macroeconomic level as at microeconomic level. The government promotes private investment in mining; however, this generates strong social and environmental conflicts in rural areas. The objective of this study is to estimate the impact of mining on the agricultural production of rural households in Peru and to explore some transmission channels: land use and labor supply in agriculture. In order to estimate causal effects, we use the interaction between the growth of international mineral prices and the spatial distribution of the mines in the Peruvian territory as source of exogenous variable. We use household surveys between 2001-2010, Differences in Differences estimators and proximity measurements between mining districts and neighboring districts. Evidence suggests that, on average, households in both mining districts and neighboring districts have lower agricultural production and less accumulation of animals compared with controlled households. These results suggest the presence of potential spillover effects of mining in agriculture in larger territorial domains. Regarding transmission channels, mining would be generating changes in land use and reduce the labor force’s margin in agriculture. The empirical results suggest a range of public policies that would contribute to rural development in areas such as land ownership rights, corporate social responsibility and compensation schemes for negative externalities.

Key words: Peru, agriculture, mining boom, labor supply, land use

125  Economic Valuation of Improvements in Environmental Services in the Contour of the Huatanay River in Cusco

Esther Guzmán Pacheco

Abstract: The objective of this research is to estimate the economic value of improvements in water quality and the quality of the urban landscape in the Huatanay River (Cusco, Peru). To that end, 404 household surveys, randomly chosen in the main districts of the city of Cusco, were carried out using dichotomous or double-bounded double-choice questions, considering that the double-question procedure is asymptotically more efficient than the procedure where a question is applied with a single choice. The results suggest that both the willingness to pay for improvements in Huatanay river water quality and for improvements in landscape quality is about USD 1.6 per household for each month. Consequently, the economic valuation of improvements in the environmental quality of the Huatanay River is estimated at USD 1.8 million per year. The valuation of the willingness to pay for improvements in environmental services has a high relevance not only from the academic point of view, but also constitutes the initial stage for the design of a payment mechanism that allows to improve the provision of environmental services in urban contexts in Peru.

Key words: Cusco, water quality, urban landscape, environmental service, willingness to pay

139  Voluntary Contributions to Solid Waste Management in Cusco: Evidence from Behavioral Experiments

Esther Guzmán Pacheco, César Del Pozo Loayza

Abstract: The main objective of this study is to estimate which types of social norms could generate incentives to reduce free-rider behavior in relation to the contribution to public goods and in particular to the contribution to the public cleaning service in the context of the city of Cusco (Peru). Behavioral experiments (Voluntary Contribution Mechanisms - VCM) have been used with various social norms (treatments): threats, penalties (formal, non-formal, centralized) and their combinations. Treatments were randomly applied to a sample of 192 individuals in 12 rounds. The results suggest that the individual contribution is correlated with the group contribution; however, the contextualisation of the contribution scenario for a specific public good (public cleanup) reduces the conditional contribution. Threats constitute an effective social mechanism to reduce free-rider behavior in the study sample, threats increase by 24% contributions to the public good. Evidence shows that for the specific contribution to public cleaning, formal and centralized social norms would increase the contribution to the service by 32%, through the monthly receipt of the water and sanitation company in the city of Cusco. The results of the study can motivate the discussion at the level of the public policy makers regarding solid waste management on the possibility of making institutional changes that allow reducing the high delinquency of the payment of contributions for the financing of the public cleaning service.

Key words: public goods, environmental sanitation service, voluntary supply, free ride, social norm