U.S. Faces Rising Resistance to Its Latin American Policy

The U.S., which once considered Latin America its own backyard, is having an increasingly tough time calling the shots in a region where countries like Brazil and China are vying for influence, and where even tiny Honduras stands up to the "Colossus to the North."

While the U.S. remains the dominant player in Latin America, its clout is curtailed by several factors, including Brazil's rise as a regional power, the influence of a clique of anti-American nations led by oil-rich Venezuela, and the growing muscle of China, which sees Latin American resources as key to its own economic growth.

The Obama administration, though popular in much of the region, has found itself squabbling over a host of issues, from Cuba to the U.S. military's use of bases in Colombia to how best to resolve the Honduran crisis.

Honduras stood firm on the ouster of President Manuel Zelaya. The U.S. and other foreign governments pressured the interim government to let Mr. Zelaya serve out his term, which ends in January. But the provisional government hung on long enough to hold Sunday's presidential election without reinstating Mr. Zelaya.

Honduras's refusal to buckle startled the U.S., which has historically cast a long shadow over the country -- the original "banana republic," where through much of the 20th century, American fruit companies exerted enormous influence on governments. In the 1980s, Honduras served as a base for U.S.-backed Contra rebels fighting the Sandinista government next door in Nicaragua.

Analysts say the Obama administration and many Latin American nations underestimated how strongly Honduras's provisional government felt about the threat posed by Mr. Zelaya, a close ally of Venezuela's Hugo Chávez.

"Everybody underestimated just how widespread the fear of Chavismo -- rightly or wrongly -- was in Honduras," says Michael Shifter, vice president for policy at Inter-American Dialogue, a think tank in Washington.

Resenting their historic dependence on the U.S., Latin American countries complain when it ignores them, but condemn what they see as American interference -- all the while looking to the U.S. for answers to Latin American problems.

Contradicting the U.S. used to be "unthinkable," said Moises Starkman, who serves as an adviser to the interim government and also advised Mr. Zelaya. But "we felt our whole system was hanging in the balance," he said.

The U.S. eventually changed course, signaling it would recognize the Honduran vote as the only way to clear the impasse. In doing so, it broke with much of Latin America, including Brazil.

That split is the latest fly in the ointment in relations with the region. Washington was especially angered by Iranian President Mahmoud Ahmadinejad's visit to Brazil, part of a tour during which he also visited Venezuela and Bolivia, and won backing for his country's controversial nuclear program. Brazil has raised questions recently about the expanded U.S. use of military bases in Colombia, while Venezuela has called the move a prelude to U.S. invasion.

One reason the U.S. is having a harder time carrying out its agenda is that Latin America is deeply divided between pro-U.S. nations such as Mexico, Colombia and Peru, and a bloc of populist countries including Venezuela, Bolivia, Ecuador and Nicaragua. Mr. Chávez also has sometimes found allies in Argentina and Brazil.

Brazil's emergence as the hemispheric powerhouse is turning into a challenge and -- in foreign-policy terms -- a disappointment for President Barack Obama, who, like George W. Bush, developed a close relationship with charismatic President Luiz Inácio Lula da Silva. "The world was hoping that it would become a responsible global player and stakeholder, but instead Brazil is behaving like an immature developing country with a chip on its shoulder," says Moisés Naím, editor of Foreign Affairs magazine.

Economic woes have also diminished U.S. influence. China is financing Brazil's state-owned oil company to the tune of $10 billion. "We don't have $10 billion to give. We have deficits, China has surpluses," says Riordan Roett, a Latin America expert at Johns Hopkins University.

The Honduran crisis showed the double standard, when Mr. Chávez complained Washington wasn't doing enough to press Honduras to restore Mr. Zelaya.

Former Mexican Foreign Minister Jorge Castañeda says the crisis is a lesson for Mr. Obama in the limits of cooperation. "You can't follow the Latin Americans given how polarized the region is," says Mr. Castañeda. "You have to take a stance, and hope that the others will follow you."