The unprecedented return of democracy, the emergence of open economies, the globalization of trade and finance, the international influence of non-state actors, and other trends have produced anomalies that confound the traditional paradigm's expectations. Integration and Independence . Latin American and Caribbean countries have stopped automatically looking northward or deferring to the United States in security matters. The ability of Washington to influence regional events is weakening. The existing paradigm does not envision a region in which trade and investment are integrating states and the presence of many extra-hemispheric interests has grown dramatically.
Nations have stronger economies today.
The region as a whole is becoming a relatively stable market in the global economy, and the United States faces strong and growing economic competition for the first time since 1945. Latin American governments are cultivating investment, as well as political and security relationships, with the European Union, Japan, China and others. External actors present a new counterbalance to the weight of U.S. influence in the hemisphere. Multilateral and Bilateral Focus. While bilateral arrangements are important, multinational plans, procedures and institutions are a necessity.