Absolutely. The problem in Iraq is actually simpler to deal with, its a nice clean military problem. The problem in Latin America is going to require a very intelligent combination of political work and targeted military and diplomatic work, and the trick is that to be effective none of it can have our fingerprints on it.
The problem is that socialism, or perhaps better said, "populism", is almost universal in the political culture, and it leads to the kinds of state-run economies that drive themselves into the ground. And when it happens, their only solution is more socialism.
There is nothing approximating American style conservatism. There are only various gradations of socialists: leftists, center-socialists, and vaguely pro-business socialists, but it always comes out the same. Governments take power and hold it by promising more treats. When they can't deliver, they are dismissed as "corrupt" and another one comes in making the same promises as the last.
This is at least one reason the traditional parties collapsed when they were faced with Chavez. They could offer no philosophical argument to him, because essentially, on a philosophical level, they agreed with him. So faced with a charismatic but genuine autocrat, they folded.
There is nothing like a Republican or Libertarian, or classic-liberal conservative party. So as they drive their countries into the ground, their solutions become increasingly desperate and radicalized. But unless you can turn the political culture around, there is no solution.
The most important work will be to establish a genuine classic-liberal consciousness in the political culture, and genuinely conservative parties to argue the case. Without this, all the spooks and all the soldiering will be fruitless.
Bump!