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LatinNews Daily - 12 August 2020

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CHILE: Leaping to Argentina’s defence in spat with US over IDB

On 11 August Chile’s foreign minister, Andrés Allamand, criticised the “aggressive” remarks made against Argentina by Mauricio Claver-Carone, the US government’s candidate for leading the Inter-American Development Bank (IDB), saying that they show why his candidacy is “inadequate” and why the IDB election should be postponed.

Analysis: 

Traditionally Chile has been a strong US ally in Latin America. But Allamand’s comments show that the centre-right government led by President Sebastián Piñera is opposed to the attempt by the Donald Trump administration in the US to exert control over the IDB. This has also been rejected by various of other Latin American countries including Argentina, which has presented its own candidate. Chile’s decision to oppose Claver-Carone's bid may help to consolidate relations with Argentina, but it could produce diplomatic tensions with the US.

  • The IDB has been led by a Latin American since its creation. But back in June the Trump administration took the unprecedented step of nominating US national Claver-Carone, senior director for Western Hemisphere Affairs at the US National Security Council and special advisor to President Trump, to the post. 
  • The IDB president is elected by the organisation’s stakeholders with a candidate needing to secure at least 15 votes from 28 member countries. While Claver-Carone’s candidacy has been backed by some Latin American countries, a group led by Argentina complained that his nomination is at odds with an unwritten rule that the IDB would not be controlled by the US. 
  • The Argentine government also objected to Claver-Carone’s bid on political grounds, expressing concerns that as a close Trump ally, Claver-Carone would make IDB loan decisions based on political rather than purely technical considerations. Amid these concerns Argentina called for the suspension of the election, due to take place in September, until next year in order for IDB stakeholders to discuss candidacies and what the bank’s role should be.
  • Mexico, Costa Rica, and Chile have backed Argentina’s proposal to delay the election. However, yesterday in a press conference Claver-Carone accused Argentina of trying to ‘hijack’ the election. “We are seeing a minority effort led by the government of Argentina…to obstruct the election because they have not been able to present or have not wanted to present a competitive vision”, Claver-Carone said. He complained that the suspension of the election will only paralyse the IDB. 
  • Allamand deplored Claver-Carone’s comments during an appearance before Chile’s congress. “The aggressive remarks by Mr Claver-Carone confirm that his election would be very inadequate…the IDB must remain a technical organisation devoid of political controversies”,  Allamand complained. He also defended suspending the election, insisting that Claver-Carone’s bid breaks “the golden rule” that the IDB must have a Latin American president and a US vice president. “It is prudent to suspend the election…and debate the role of the bank in helping member countries with the post [coronavirus] Covid-19 recovery free from [political] tensions”, Allamand concluded. 

 Looking Ahead: The US has yet to respond to Allamand’s comments, but with Claver-Carone warning that “the US will confront” any attempts to obstruct the IDB election, an angry response is likely. 

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