Gamal Nkrumah yawns as he contemplates outgoing US President Bush's swan song in Peru A disconcerting uncertainty hovers over Latin America and the Pacific Rim countries as a whole. United States President George W Bush presides over a rudderless hulk. Unless the US bucks the trend, it could lose even more power and influence. Several Asia-Pacific Economic Cooperation (APEC) Forum nations, both Asian and in the Americas, would argue that this would be unwarranted. Most APEC nations, however, cannot stomach politicians in the carnivorous mould of the outgoing President Bush. They have lost their appetite for cringing before Uncle Sam. Bush is the lame-duck president whose quacks for democracy have certainly come too late. Fed up with the antics of America, the Pacific Rim countries must now ensure the smoothest possible transition to new leadership. Whether the nations of Asia and the Americas pin their hopes on US President-elect Barack Obama is immaterial. Nothing now can make the US effective as it once was. Russia and China are waiting in the wings. These ructions will certainly strain relations between Asia and America. The former now has the biggest moneybags and may no longer be willing to sit back and let America do the running. Latin American countries are currently looking west towards China and east towards Russia, rather than north towards the traditional US. For its first forays in the Caribbean since the heady days of the swinging 1960s and the special relationship between the defunct Soviet Union and Cuba, Russia is conducting naval manoeuvres in the Caribbean with Venezuela. The US still hankers after its own dominance in its own backyard. And, it is against this dramatic backdrop that the leaders of the 21 member states of the APEC converged on the Peruvian capital Lima this week for their 20th annual gathering. APEC is facing the challenges of development and moral authority. The world economy may well muddle through, but the leaders of APEC agreed to support international financial institutions and private owned banks as well as small and medium scale enterprises. At the APEC meeting, Indonesian President Susilo Bambang Yudhoyono delivered the keynote address entitled "Economic Growth, Inequality and Poverty: The Challenges for APEC's Developing Economies". It was clear from his tone that he was determined to see emerging economies play a more meaningful role in the international arena. Another damp squib? The credit crunch had its origins in finance, and the leaders of APEC, especially those who suffered the Asian financial crisis of 1997, understand all too well that the political uncertainties have to be ironed out. They may have to act more quickly and decisively this time. Some will also be reluctant to take the risk of offending the US. The refashioning of a new Pacific economic order may drag on for years. It needs the cooperation of both Present-elect Obama and a host of cooperative Pacific Rim nations. And, the allies of the US in Asia and the Americas might be forced to undertake fiendishly hard tasks. The stakes are also now much higher. Washington is weighed down by its own worries. Other countries in the sprawling region are feeling the crunch. Thailand, for instance, is embroiled in political turmoil. Washington is determined to give government-busting powers to pro- Western opposition groups and channel funds for "democracy" through many dubious NGOs in the Americas. But this is a self-defeating delusion. It has been doing this for years in Venezuela, Cuba, Bolivia and Nicaragua, but the natives are no longer so jejune. A ramshackle pro-US government responding joyously to every press release emanating from the White House is no longer acceptable, just as a banana republic is not. Even relations with close allies are shaky. Bush barely managed to wrench an APEC endorsement of his plans for international financial regulatory reform and a reluctant nod of approval at his hollow call for free trade from the gathering. With fewer than 60 days left in office, Bush's hopes of seeing through a bilateral free trade deal with Colombia were dashed when the US Congress adjourned without passing an agreement both countries had signed nearly two years ago. Bush unabashed, urged his successor on Saturday to support Colombian President Alvaro Uribe, calling the South American rightist neo- liberal "a good friend and a strong leader". But such words are more a kiss of death than a positive recommendation these days. In any case, Obama condemned the free trade deal with Colombia as a senator, stressing violence by the Colombian authorities against labour unions, so bets are that it is dead in the water. Host country Peru, meanwhile, is undergoing its own political commotion. Peru's principal union, the General Workers' Confederation, backed by opposition forces spearheaded a mass protest to "reject the presence of Bush, who bears responsibility for the financial crisis". APEC comprises Australia, Brunei, Canada, Chile, China, Indonesia, Japan, Hong Kong, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam, who together account for 60 per cent of the world's gross domestic product (GDP). The real news around the conference came from the biggest Asian powers hovering in the wings. Peru's President Alan Garcia and his Russian counterpart, Dmitri Medvedev, met on Monday and promised to work to increase trade and business ties. Trade between Russia and Peru is tiny, worth only some $13-15 million a year. Erstwhile Marxist Garcia enthused, "I am sure that this visit will be the base for relaunching our relationship." Gazprom plans to supply liquefied natural gas to Mexico from Peru, quoting Gazprom deputy chief executive Alexander Medvedev, who was also in Lima. President Medvedev flew to Venezuela and Cuba as part of a week- long tour through South America that underscores Russia's growing opposition to US hegemony in the restless region. Medvedev's four-nation tour of Latin America included meetings with his Brazilian and Chinese counterparts Luiz Inacio Lula da Silva and Hu Jintao respectively. On 24-25 November, he met the leftist Brazilian president during a trip to Brazil, who is keenly interested in the purchase of Russian-made weapons and military technology. In Venezuela, Medvedev met President Hugo Chavez, a key Russian arms client. Not to be outdone, Chinese President Hu Jintao left Latin America after a charm offensive that ruffled feathers in Washington and promises greater trading prospects in the Americas. Beijing has aggressively pursued friendships with fuel and mineral-rich Latin American nations such as Venezuela and also with fuel-starved Cuba. The statement by Bolivian President Evo Morales and Cuba's iconic Fidel Castro issued after the G20 summit could well have been made by them after this tired exercise in futility: "It's boring, filled with platitudes, and says absolutely nothing. It was approved by Bush, a champion of neo-liberalism, who is responsible for genocidal war. To get out of this crisis we have to break with the neo-liberal economic model and the capitalist system." A tone which might grate the ears of some Asian diehard capitalists.
