The capture of Nicolas Maduro—whose regime infamously expropriated American businesses under predecessor Hugo Chavez—highlights the need for the State Department to take effective action against other would-be delinquents.
The recent capture of Venezuelan strongman Nicolás Maduro by US special forces follows years of documented misconduct. Maduro has long been accused of facilitating narcotics trafficking, deepening cooperation with China’s People’s Liberation Army, and seizing American-owned assets without compensation.
On the latter point, Maduro is hardly alone. In a recently released report connected to the House of Representatives’ appropriations bill for national security, the Department of State, and related programs, lawmakers named a handful of countries where similar issues have occurred. Reports of repeated failures by Mexico to meet cross-border obligations, and unpaid claims tied to the Al Zour refinery project in Kuwait, are but two of the examples. The report directs the Office of the Secretary of State to “utilize the various tools of diplomatic engagement to work with such governments to facilitate the timely resolution of such disputes.” Now, it falls to the full Congress to follow through and pass the measure.
The US Government Must Fight Commercial Debt Evasion
The United States of America is a generous nation. Americans give more, volunteer more, and shoulder more global responsibility than any other people on Earth. That generosity has long been one of our greatest strengths, both at home and abroad.
In matters of foreign aid, Americans understand that circumstances differ. The United States has never engaged in “debt-trap” diplomacy; we do not expect struggling nations to repay assistance on rigid timelines, as long as they are acting in good faith. The purpose of aid is to help countries stand on their own, both for its own sake and in the belief that stability abroad secures Americans at home.
But American generosity cannot and does not extend to private, binding commercial obligations. When foreign governments enter into agreements with American businesses to build infrastructure, provide capital, and ensure services, that work is not an act of charity. The agreements US businesses make with foreign governments are binding obligations. When governments evade those obligations through nonpayment or expropriation, their actions harm the American economy, weaken confidence in lawful commerce, and discourage the kind of private investment that development policy is supposed to encourage. American taxpayers and businesses should not have to foot the bill for the effects of unenforced contracts and debts.
This is not an argument against American leadership abroad or US assistance to allies. I support both. Most of our treaty partners understand that shared responsibility and good faith are essential to lasting cooperation. The worry expressed by Congress in its appropriations report is about a different set of relationships, with which countries outside America’s core alliances systematically enjoy our support yet routinely fail to meet their financial commitments.
The State Department Should Lead the Way on Foreign Debt Issues
That is precisely why, in its appropriations report, Congress is spot-on in giving the State Department the authorization and tools it needs to seek quick, just resolutions of these disputes through all the diplomatic means at its disposal. It is making it clear that the promises made to the United States are not optional, and that accountability is not negotiable. Engagement abroad must rest on fairness, discipline, and respect. These values that matter just as much in international affairs as they do in everyday life.
America should continue to lead, to help, and to stand with those who share our values. But real leadership also means refusing to excuse broken promises.
Generosity guided by accountability is not weakness. It is how strong nations endure. Congress deserves credit for putting this principle back at the center of US foreign engagement, and the full legislature should follow the committee’s—and the Department of Defense’s—lead by moving quickly to approve the appropriations report and make that commitment real.
About the Author: Steve Diminuco
Steve Diminuco is a foreign policy analyst. He is a former deputy director for Global Intergovernmental Affairs and senior conferences coordinator at the US Department of State.
Image Shutterstock / Maglara.
