State Space Models

All state space models are written and estimated in the R programming language. The models are available here with instructions and R procedures for manipulating the models here here.

Thursday, December 11, 2025

World-System (1950-2100) Latin America and the Donroe Doctrine

 


The 2025 National Security Strategy of the United States reinvoked the Monroe Doctrine to justify aggressive military actions against (if not outright invasions of) Latin America countries using a spheres of influence argument as justification. Moreover, previous Geopolitical Alignments (particularly Europe) that have been important to the US have been downplayed using dismissive language such as "...economic decline [of Europe] is eclipsed by the real and more stark prospect of civilizational erasure" as a result of uncontrolled immigration (p. 25).

A lot has been said already about the 2025 National Security Strategy of the United States and I will have more to say in future posts. My question in this post, however, is "what is in the best Geopolitical interests of Latin America?" I have used the LA20 model to make seven forecasts of Latin American growth based on different Geopolitical Alignments (see the graphic above):
  • BAU (Business-As-Usual), that is, no Geopolitical Alignments. In terms of growth, BAU is the best future for Latin America as it provides maximal exponential growth into the Future.***
  • TECH (Productivity) is a variant on BAU with no Geopolitical Alignments but focusing on doing everything to increase productivity.  It provides the next-best rate of Exponential growth.
  • W (World System Linkage) Geopolitical alignment to the World System (the WL20 model) provides the third-best rate of exponential growth.
  • CN (China Linkage) provides the fourth-best rate of exponential growth based on input from the WL20 China model.
  • US (United States Linkage) produces growth-and-collapse, peaking between 2050 and 2100 (based on input from the USL20 model).
  • RW (Random Walk) anything can happen including stagnation.
  • RU (Russia Linkage) produced immediate collapse based on input from the RUL20 model.
The negative forecast for Russian Linkage should give pause to leaders such as Nicolas Maduro of Venezuela. According to ChatGPT:


Also, the exponential performance of the BAU, TECH and W forecasts should be viewed from the perspective of World-Systems Theory where the relationship between Core (US) and and Peripheral (LA) countries is viewed as exploitative.

If US Linkage is not beneficial after 2055, one benefit in the short-term is if the US would clean up the Latin American Drug Cartels. Violence created by Cartel turf Wars and the need to employe drug mules (drug smuggling) is one factor in illegal immigration to the US.

American policy should focus on enlisting regional champions that can help create

tolerable stability in the region, even beyond those partners’ borders. These nations

would help us stop illegal and destabilizing migration, neutralize cartels, nearshore

manufacturing, and develop local private economies, among other things (p.16 of the 2025 National Security Strategy of the United States).


However, according to ChatGPT:

The six forecasts above leave Latin American in a difficult situation: The US and the new "Donroe Doctrine" are intent on maintaining Latin American Dependency. Part of the Doctrine is resisting inroads to Latin America from China. I cannot say I am very confident about Latin America's future.

Notes

** The exponential growth forecasts do not imply that they are the "best" forecasts and the environmental consequences might be quite negative (another possibility that the 2025 National Security Strategy of the United States rejects ("...We reject the disastrous “climate change” and “Net Zero” ideologies"...p.14 ).



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