Russian Political, Economic, and Security Issues and U.S. Interests

Jim Nichol, Coordinator
Specialist in Russian and Eurasian Affairs

Russia made uneven progress in democratization during the 1990s, but this limited progress was reversed after Vladimir Putin rose to power in 1999-2000, according to many observers. During this period, the State Duma (lower legislative chamber) became dominated by governmentapproved parties, gubernatorial elections were abolished, and the government consolidated ownership or control over major media and industries, including the energy sector. The Putin government showed low regard for the rule of law and human rights in suppressing insurgency in the North Caucasus, according to critics. Dmitriy Medvedev, Putin’s longtime protégé, was elected president in 2008; President Medvedev immediately designated Putin as prime minister and continued Putin’s policies. In August 2008, the Medvedev-Putin “tandem” directed military operations against Georgia and recognized the independence of Georgia’s separatist South Ossetia and Abkhazia, actions condemned by most of the international community. In late 2011, Putin announced that he would return to the presidency and that Medvedev would become prime minister. This announcement, and flawed Duma elections at the end of the year, spurred popular protests, which the government addressed by launching some reforms and holding pro-Putin rallies. In March 2012, Putin was (re)elected president by a wide margin. The day after Putin’s inauguration on May 7, the legislature confirmed Medvedev as prime minister. Since then, Putin appears to be tightening restrictions on freedom of assembly and other human rights. 

Russia’s Economy 

Russia’s economy began to recover from the Soviet collapse in 1999, led mainly by oil and gas exports, but the decline in oil and gas prices and other aspects of the global economic downturn beginning in 2008 contributed to an 8% drop in gross domestic product in 2009. Since then, rising world oil prices have bolstered the economy. Russian economic growth continues to be dependent on oil and gas exports. The economy is also plagued by an unreformed healthcare system and unhealthy lifestyles; low domestic and foreign investment; and high rates of crime, corruption, capital flight, and unemployment. 

Russia’s Armed Forces 

Russia’s armed forces now number less than 1 million, down from 4.3 million Soviet troops in 1986. Troop readiness, training, morale, and discipline have suffered, and much of the arms industry has become antiquated. Russia’s economic growth during most of the 2000s allowed it to increase defense spending to begin addressing these problems. Stepped-up efforts have begun to restructure the armed forces and improve their quality. Opposition from some in the armed forces, mismanagement, and corruption seemingly have slowed this restructuring. 

U.S. – Russia Relations 

After the Soviet Union’s collapse, the United States sought a cooperative relationship with Moscow and supplied almost $19 billion in aid for Russia from FY1992 through FY2010 to encourage democracy and market reforms and in particular to prevent the proliferation of weapons of mass destruction (WMD). In the past, U.S.-Russia tensions on issues such as NATO enlargement and proposed U.S. missile defenses in Eastern Europe were accompanied by some cooperation between the two countries on anti-terrorism and nonproliferation. Russia’s 2008 conflict with Georgia, however, threatened such cooperation. The Obama Administration has worked to “re-set” relations with Russia and has hailed such steps as the signing of a new Strategic Arms Reduction Treaty in April 2010; the approval of new sanctions against Iran by Russia and other members of the U.N. Security Council in June 2010; the accession of Russia to the World Trade Organization on August 22, 2012; and the cooperation of Russia in Afghanistan as signifying the “re-set” of bilateral relations. However, in late 2012, Russia ousted the U.S. Agency for International Development (USAID) from the country, and criticized the help that USAID had provided over the years as unnecessary or intrusive. H.R. 6156 (Camp), authorizing permanent normal trade relations for Russia, was signed into law on December 14, 2012 (P.L. 112-108). The bill includes provisions sanctioning those responsible for the detention and death of lawyer Sergey Magnitsky and for other gross human rights abuses in Russia.

Date of Report: April 16, 2013
Number of Pages: 84
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Mexico’s Drug Trafficking Organizations: Source and Scope of the Violence

June S. Beittel
Analyst in Latin American Affairs

Violence is an inherent feature of the trade in illicit drugs, but the violence generated by Mexico’s drug trafficking organizations (DTOs) in recent years has been unprecedented and remarkably brutal. The tactics—including mass killings, the use of torture and dismemberment, and the phenomena of car bombs—have led some analysts to speculate whether the violence has been transformed into something new, perhaps requiring a different set of policy responses. Most analysts estimate there have been at least 60,000 homicides related to organized crime since 2006. Some analysts see evidence that the number of organized crime-style homicides in Mexico may have reached a plateau in 2012, while other observers maintain there was a decline in the number of killings. It is widely believed that the steep increase in organized crime-related homicides during the six-year administration of Mexican President Felipe Calderón (2006-2012) is likely to trend down far more slowly than it rose.

Former President Calderón made an aggressive campaign against the DTOs a key policy of his government, which the DTOs violently resisted. Of the seven most significant DTOs operating during the first five years of the Calderón administration, the government successfully removed key leaders from each of the organizations through arrests or by death in arrest efforts. However, these efforts to eliminate drug kingpins sparked change—consolidation or fragmentation, succession struggles, and new competition—leading to instability among the groups and continuing violence. Between 2006 and 2012, fragments of some of the DTOs formed new criminal organizations, while two DTOs became dominant. These two are now polarized rivals— the Sinaloa DTO in the western part of the country and Los Zetas in the east. They remain the largest drug trafficking organizations in Mexico and both have moved aggressively into Central America. Many DTOs and criminal gangs operating in Mexico have diversified into other illegal activities such as extortion, kidnapping, and oil theft, and now pose a multi-faceted organized criminal challenge to governance in Mexico.

Similar to the last Congress, the 113th Congress remains concerned about the security crisis in Mexico. The new government of President Enrique Peña Nieto which took office in December 2012 has proposed a new security strategy that builds on the programs that the Calderón government initiated. These include close U.S.-Mexico security coordination under the Mérida Initiative with police training and judicial reform, and use of the Mexican military to prosecute the campaign against the DTOs in the near term. In his first three months in office, President Peña Nieto has proposed some new approaches—such as establishing a 10,000 strong militarized police force or gendarmarie within a year, revising and expanding crime prevention programs, and refocusing the strategy on lowering violent crime such as homicide and kidnapping. But President Peña Nieto has also tried to shift the national conversation to a more positive message about economic growth rather than remaining focused on organized crime groups and the violence and mayhem that they cause.


Date of Report: April 15, 2013
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Hugo Chávez’s Death: Implications for Venezuela and U.S. Relations

Mark P. Sullivan
Specialist in Latin American Affairs

The death of Venezuelan President Hugo Chávez on March 5, 2013, after 14 years of populist rule, has implications not only for Venezuela’s political future, but potentially for the future of U.S.-Venezuelan relations. This report provides a brief discussion of those implications. For additional background on President Chávez’s rule and U.S. policy, see CRS Report R40938, Venezuela: Issues for Congress, by Mark P. Sullivan.

Congress has had a strong interest in Venezuela and U.S. relations with Venezuela under the Chávez government. Among the concerns of U.S. policymakers has been the deterioration of human rights and democratic conditions, Venezuela’s significant military arms purchases, lack of cooperation on anti-terrorism efforts, limited bilateral anti-drug cooperation, and Venezuela’s relations with Cuba and Iran.

The United States traditionally enjoyed close relations with Venezuela, but there has been considerable friction in relations under the Chávez government. U.S. policymakers have expressed hope for a new era in U.S.-Venezuelan relations in the post-Chávez era. While this might not be possible while Venezuela soon gears up for a presidential campaign, there may be an opportunity in the aftermath of the election.

The Venezuelan Constitution calls for a new presidential election within 30 days; an election has now been scheduled for April 14, 2013. Acting President Nicolás Maduro, who had been serving as Vice President until Chavez’s death, is the presidential candidate for the ruling United Socialist Party of Venezuela (PSUV), while Henrique Capriles, governor of Miranda state, who ran in the October 2012 presidential election, is the candidate for the opposition Democratic Unity Platform (MUD, Mesa de la Unidad Democrática). Many observers expect that the outpouring of sympathy for President Chávez, as well as the fact that Chávez himself called on his supporters to elect Maduro if anything were to happen to him, bode well for Maduro’s election prospects. Whoever wins the election will face enormous economic and political challenges.


Date of Report: April 9, 2013
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Organization of American States: Background and Issues for Congress

Peter J. Meyer
Analyst in Latin American Affairs

The Organization of American States (OAS) is the oldest multilateral regional organization in the world. It was founded in 1948 by the United States and 20 Latin American nations to serve as a forum for addressing issues of mutual concern. Over time, the organization expanded to include all 35 independent countries of the Western Hemisphere (though Cuba currently is excluded from participation). The organization’s areas of focus have also shifted over time, evolving in accordance with the priorities of its member states. Today, the OAS concentrates on four broad objectives: democracy promotion, human rights protection, economic and social development, and regional security cooperation. It carries out a wide variety of activities to advance these goals, often providing policy guidance and technical assistance to member states.

Since the organization’s foundation, the United States has sought to utilize the OAS to advance critical economic, political, and security objectives in the Western Hemisphere. Although OAS actions frequently reflected U.S. policy during the 20th Century, this has changed to a certain extent over the past decade as Latin American and Caribbean governments have adopted more independent foreign policies. While the organization’s goals and day-to-day activities are still generally consistent with U.S. policy toward the region, the United States’ ability to advance its policy initiatives within the OAS has declined. Nevertheless, the United States has remained the organization’s largest donor, contributing an estimated $67.5 million in FY2012—equivalent to nearly 43% of the total 2012 OAS budget.

As OAS decisions have begun to reflect the increasing independence of its member states, U.S. policymakers occasionally have expressed concerns about the direction of the organization. Some Members of Congress assert that the OAS, as it currently operates, advances policies that run counter to U.S. interests, and that the United States should withhold funding until the organization changes. Others maintain that the OAS remains an important forum for advancing U.S. relations with the other nations of the hemisphere and that U.S. policy should seek to strengthen the organization and make it more effective.

Issues receiving congressional attention in recent years have included Cuba’s potential inclusion in the OAS, the organization’s activities to protect democracy and human rights, the creation of regional organizations that could serve as alternatives to the OAS, and constraints on the organization’s budget. These issues are likely to remain subjects of oversight during the 113th Congress.


Date of Report: April 8, 2013
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Haiti Under President Martelly: Current Conditions and Congressional Concerns

Maureen Taft-Morales
Specialist in Latin American Affairs

Haiti shares the island of Hispaniola with the Dominican Republic. Since the fall of the Duvalier dictatorship in 1986, Haiti has struggled to overcome its centuries-long legacy of authoritarianism, extreme poverty, and underdevelopment. During that time, economic and social stability improved considerably, and many analysts believed Haiti was turning a corner toward sustainable development. Unfortunately, Haiti’s development was set back by a massive earthquake in January 2010 that devastated much of the capital of Port-au-Prince and other parts of the country. Poverty remains massive and deep, and economic disparity is wide: Haiti remains the poorest country in the western hemisphere.

Haiti is the Obama Administration’s top foreign assistance priority for Latin American and Caribbean countries. Haiti’s developmental needs and priorities are many. The Haitian government and the international donor community are implementing a 10-year recovery plan focusing on territorial, economic, social, and institutional rebuilding. An outbreak of cholera that began in late 2010 has swept across most of the country and further complicated assistance efforts. While some progress has been made in developing democratic institutions, they remain weak. In May 2011, following yet another controversial election, President René Préval was succeeded by Michel Martelly, a popular musician without any previous political experience. President Martelly’s difficulty in forming a government and political gridlock, especially the inability to begin a long overdue elections process, are hampering reconstruction efforts and frustrating international donors.

The United Nations Stabilization Mission in Haiti (MINUSTAH) has been in Haiti to help restore order since the collapse of former President Jean-Bertrand Aristide’s government in 2004. It currently has 9,464 troops. The mission has helped facilitate elections, conducted campaigns to combat gangs and drug trafficking with the Haitian National Police, and played a key role in emergency responses to natural disasters, especially after the earthquake. Nonetheless, popular protests have called for MINUSTAH’s withdrawal because of sexual abuse by some of its forces and scientific findings that its troops apparently introduced cholera to the country. In February 2013 the U.N. said it would not compensate cholera victims, citing diplomatic immunity.

The main priorities for U.S. policy regarding Haiti are to strengthen fragile democratic processes, continue to improve security, and promote economic development. Other concerns include the cost and effectiveness of U.S. aid; protecting human rights; combating narcotics, arms, and human trafficking; and alleviating poverty. The Obama Administration granted Temporary Protected Status to Haitians living in the United States at the time of the earthquake.

Congressional concerns include the pace and effectiveness of reconstruction, respect for human rights, security issues, counternarcotics efforts and trade issues. Congress is also concerned that overdue Senate and local elections be scheduled quickly and be free, fair, and peaceful.

Current legislation related to Haiti includes P.L. 112-74, P.L. 111-171, P.L. 110-246, P.L. 109- 432, H.R. 651, H.Res. 31, H.Res. 61, and S.Res. 12.


Date of Report: April 8, 2013
Number of Pages: 37
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