Three members of Pope Francis’ family were killed on a provincial road between Rosario and Cordoba in Argentina this morning. Emanuel Bergoglio, the pontiff’s nephew, remains in the hospital in critical condition after surviving the traffic collision that claimed the lives of his wife and two small children.
The family was traveling to Buenos Aires when they were struck by a truck. Pope Francis just finished a five-day tour of South Korea where he appealed for unification of the Korean peninsula and humanitarian assistance for the economically beleaguered North Korea. The pope, who joked about his own mortality and tenure as the leader of the Catholic Church on Monday, was ”deeply pained” by the news of the crash and asked that believers join him in prayer when informed of the deaths, said Vatican spokesman Reverend Federico Lomabrdi.
Argentina registered 12.6 traffic deaths per 100,000 people in 2010, putting it slightly behind the Chile and United States in traffic safety.
LGBT cyber-activists took to the web last week to publically denounce Mexico City’s 3rd International Lesbian Festival. Through a communiqué posted on Facebook, nearly 20 LGBT organizations and collectives and around 50 individual signatories condemned the festival as a vehicle for perpetuating misogyny and machismo. They also criticized a number of authorities for vouching for the festival and participating in its organization, including Mexico City Labor Secretary Patricia Mercado and Jacqueline L. Hoist Tapia, who is the president of the Consejo para Prevenir y Eliminar la Discriminación (Council to Prevent and Eliminate Discrimination in Mexico City —COPRED).
It sounds counterintuitive that LGBT groups would oppose an event that claims to support their cause and promote equal rights—and which could not even be hosted in more conservative cities in the country today. So why are these groups opposing the festival?
There are a number of reasons: for one, the festival’s promotional materials include highly sexualized images of women clad in lingerie, and the festival’s agenda includes an event called “The Bunny Party,” sparking comparisons to the men’s magazine Playboy. Also drawing criticism is the festival’s “coronation ceremony” and a workshop on applying makeup.
In their communiqué, groups opposing the festival write that “while it is fundamental to have cultural, artistic, political and leisure space for lesbians, we find it appalling that these spaces are provided under the basis of gender stereotypes that are misogynistic and machista. Instead of contributing to the empowerment and freedom of lesbian women from the roles that have oppressed us for ages […] the festival reproduces them with singular joy.” According to the communiqué, the festival’s publicity “only represents white, thin women […]showing women as objects the way male adult magazines would.”
This week’s likely top stories: Marina Silva agrees to face Dilma Rousseff in Brazil’s presidential election; victims of Colombia's armed conflict speak to peace negotiators; Mexico will announce new energy projects; Julian Assange plans to leave Ecuador’s embassy “soon”; classes in Mexico are suspended due to a copper mine’s toxic spill.
Marina Silva agrees to run for president: Former Brazilian Environmental Minister Marina Silva has agreed to run for president in the place of the late Eduardo Campos, who died August 13 in a plane crash in the Brazilian city Santos. Silva’s entry into the race will raise new challenges for President Dilma Rousseff. Although Rousseff maintains her lead in the polls, Silva has quickly gained almost three times the support that Campos had–around 21 percent–and would defeat Rousseff in a hypothetical second-round contest, according to polling company Datafolha. Silva was Campos’ vice presidential running mate for the Partido Socialista Brasileiro (Brazilian Socialist Party–PSB) before he was killed last week, and she also ran for president in Brazil’s 2010 election. Over 100,000 people attended Campos’ funeral in Recife on Sunday, including Rousseff, presidential candidate Aécio Neves from the Partido da Social Democracia Brasileira (Brazilian Social Democracy Party–PSDB), and former president Luiz Inácio Lula da Silva.
Victims of Colombia’s armed conflict address peace negotiators: Twelve victims of Colombia’s 50-year-old internal conflict met with members of the Colombian government and the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) on Saturday to urge a peace agreement in Havana. The participants, whose loved ones are among the 220,000 people killed during the armed conflict, said that they were willing to forgive the killings by the FARC, paramilitary groups, and government security forces, as long as the negotiators reach an agreement. A total of 60 victims’ relatives chosen by the UN, Roman Catholic Church and National University are expected to speak to the peace negotiators in the coming weeks. The negotiators have already reached agreements on three points of the six-point peace agenda, but must still decide on victims’ rights, disarmament, and the implementation of a peace deal.
New Mexican energy projects to be announced: Mexico’s Comisión Federal de Electricidad (Federal Electricity Commission—CFE ) is expected to announce 16 new electricity projects today worth a total of nearly $4.9 billion, according to a report obtained by the daily newspaper El Financiero. The projects—which are expected to include four pipelines, three electricity plants, upgrades to an existing plant, and eight new transmission lines and substations—will be the first auctions under the energy sector reforms signed into law by Mexican President Enrique Peña Nieto last week. Those reforms opened Mexico’s oil, gas and electricity sectors to private investment.
Julian Assange to leave Ecuadorian embassy in London: WikiLeaks founder Julian Assange, who has been seeking refuge at the Ecuadorean embassy in London for over two years, announced Monday that he will be leaving “soon” because of anticipated legal reforms in Britain that would help him avoid extradition to Sweden. Assange did not mention a specific date of departure from the embassy. In 2010, two women accused Assange of sexual assault and rape, and he faces questioning by prosecutors in Stockholm. Yesterday, Ecuadorean Foreign Minister Ricardo Patino, accused the British government of human rights abuses and questioned their commitment to finding a diplomatic solution. Assange denied that he will be leaving the embassy for health reasons, as the UK Press has reported.
First day of classes suspended because of toxic spill in Mexico: A toxic spill at a copper mine in northern Mexico has closed 88 schools in the Mexican state of Sonora due to concerns that contaminants have entered local drinking water. The spill occurred on August 6 at the Buenavista copper mine near the U.S.-Mexico border, reportedly after a poorly-designed holding area containing toxic materials overflowed due to heavy rains. The Sonora state government has distributed clean drinking water to between 80 and 90 percent of local residents, although those living in more isolated areas have not yet received potable water. Classes were supposed to start today in seven municipalities affected by the spill; they are expected to begin later this week.
Missouri Governor Jay Nixon traveled to St. Louis yesterday to address the tense situation developing in Ferguson, a St. Louis suburb, after Michael Brown, an unarmed African-American teenager, was killed by a white police officer on Saturday. Gov. Nixon faces criticism for his slow response to the crisis following four nights of protests that have resulted in police firing teargas and rubber bullets at protestors.
Journalists from Al Jazeera America were also targeted with tear gas on Wednesday night forcing them to abandon their cameras. Two other reporters, Ryann J. Reilly from the Huffington Post andWashington Post reporter Wesley Lowery, were arrested at a McDonald’s. A St. Louis City alderman, Antonio French, and the legislative aid to the president of the St. Louis Board of Aldermen were also arrested.
On Thursday, President Barack Obama responded to the events unfolding in Ferguson by criticizing protestors who have taken advantage of the “tragedy” for vandalism and looting, but also said that “police should not be bullying or arresting journalists who are just trying to do their jobs.” Georgia Congressman John Lewis, himself a victim of police brutality in a 1965 march in Selma, Alabama, has called on the president to “declare martial law” and “federalize the Missouri National Guard to protect people as they protest.”
Ferguson police accused Michael Brown of being combative, but eyewitnesses say that Brown had his hands up and was unarmed before being shot several times. The Ferguson police department has not yet released the name of the officer responsible for the shooting. As the situation has escalated, Gov.Nixon removed the St. Louis County Police from Ferguson, placing Missouri Highway Police in charge of the situation instead.
The situation in Ferguson became calmer on Thursday night as the Missouri Highway Police took over, but vigils and demonstrations were carried out in several other cities including Chicago, Los Angeles, Phoenix, Baltimore, New York and Miami—where eight people were arrested.
In a press release Wednesday, the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) announced that it would create a special fund for reparations for victims of the armed conflict. The group also asked the Colombian government to take tangible actions to protect the rights of said victims.
The release came on the second day of the twenty-seventh convening of the peace talks between the Colombian government and the FARC taking place in Havana. The topic of restitution for the victims of the conflict is the fourth point of a six point peace agenda, and by far the most controversial subject being negotiated. A total of 60 victims’ testimonies will be presented before two teams of negotiators, with the first 12 victims arriving in Havana to testify this Saturday.
In their statement, the FARC recognized that finding a solution to this issue will not be easy but emphasized the necessity of doing so. “This matter is very important because it is going to hand us the keys to clear the path toward the reconciliation of the Colombian family,” said Iván Márquez, the FARC’s chief negotiator. Land reform, political participation of the FARC and drug trafficking have already been discussed, while disarmament and the way in which the final peace deal will be incorporated are the final two topics that have yet to be addressed.
Colombia currently has the greatest number of displaced people in the world at over 5 million due to the armed conflict over the past 50 years. While peace talks have been ongoing since November 2012, both the FARC and the Colombian government continue to blame each other for the over 220,000 individuals killed and the millions more displaced.
Brazilian presidential candidate Eduardo Campos and six other people were killed Wednesday morning when the plane they were traveling in crashed in the coastal city of Santos in São Paulo state. Brazilian television reports said that the plane, a Cessna 560XL, struggled in bad weather and hit a three-story building in the neighborhood of Boqueirao, killing all those aboard.
Campos, 49, the former governor of Pernambuco state, was the presidential candidate for the Partido Socialista Brasileiro (Brazilian Socialist Party). The latest opinion polls showed him in third place behind Brazilian President Dilma Rousseff of the ruling Partido dos Trabalhadores (Workers' Party) and challenger Aécio Neves, of the Partido da Social Democracia Brasileira (Social Democracy Party).
President Rousseff temporarily suspended her re-election campaign and declared three days of national mourning for Campos and the other victims of the crash. Meanwhile, the Partido Socialista Brasileiro must submit the name of a new presidential candidate within 10 days. Campos' running-mate, vice presidential candidate Marina Silva, previously ran for president in 2010 and may be a possible contender.
Eight masked gunmen disguised as airport workers robbed an armored money transportation truck at Arturo Merino Benítez International Airport in Santiago on Tuesday, stealing over 6 billion pesos ($10 million)—the largest robbery in Chile’s history. The truck belonged to the U.S. security firm Brinks, and the money was due to be a loaded onto a flight for delivery at various banks and mining sites in Copiapó and Antofagasta in the north of Chile.
The thieves fled the scene in two vans headed in opposite directors and scattered nails in their wake to thwart potential pursuers, prompting Chilean Vice President Rodrigo Peñailillo to say that the gang was “obviously well organized.” Meanwhile, Chilean Sub-Secretary of the Interior Mahmud Aleuy Peña y Lillo called the security at the airport, which is handled by civil aviation authorities, “an embarrassment.”
Tuesday’s robbery tops a 2006 heist where thieves stole $1.6 million from a similar Brinks truck at the same airport terminal. In that case, the assailants were apprehended by police and are currently serving time in prison.
A Reuters/Ipsos poll released Monday revealed that 51 percent of Americans oppose President Barack Obama's plan to fast track deportations for unaccompanied Central American children apprehended at the U.S.-Mexico border. The online poll had a sample size of 1,566 people.
The poll showed a divide in public opinion over how long the children should be allowed to remain in the U.S. Thirty-eight percent of responders said that the children should be allowed to stay "until it was deemed safe for them to return home," while 13 percent supported an indefinite stay and 32 percent favored immediate removal. The results broke down along party lines, with 48 percent of Democrats, 30 percent of Republicans and 37 percent of independents supporting allowing the children to stay until conditions are safer.
The latest roadblock in addressing the border crisis has been the lack of legal representation available to the minors—many of whom are under the age of 14—during their immigration hearings. Vice President Joe Biden made an appeal to law firms to allow their lawyers to provide pro bono representation to these children after House Republicans stripped federal funding for the legal counsel of the unaccompanied minors on August 1.
The credibility interval of the Reuters/Ipsos poll was plus or minus 2.8 percentage points.
This June, Mexico’s Procudaría General de la República (Federal Prosecutor’s Office–PGR) issued a report that paints a gruesome picture of the country’s freedom of the press situation, releasing worrisome numbers on crimes and homicides committed against reporters and journalists for the past 14 and a half years.
Between January 2000 and June 2014, an average of one journalist has been reported assassinated in Mexico approximately every 52 days. In the 36 months between 2010 to 2012, 35 journalists were killed, and there were 71 homicides against journalists reported between 2006 and 2012, during the administration of former Mexican President Felipe Calderón.
Of the 102 murders cited in the report, which occurred in 20 out of 32 Mexican states, 61 percent of the crimes took place in Chihuahua (16 murders), Veracruz (15 murders), Tamaulipas (13 murders) Guerrero (11 murders) and Sinaloa (7 murders).These five states are no strangers to drug cartels and organized crime.
The report also mentions 27 other types of crimes continuously perpetuated against the press—not just by criminals, but also by the police. These crimes include deaths threats, murder attempts, abuse of power from authorities, illegal detainment, kidnapping, corporal violence, theft, intimidation, illegal wire-tapping, illegal seizure of property, and entering journalists’ homes without search warrants. Additionally, from 2010 through June 2014, 14 journalists have gone missing and today are presumed dead.
El “default” de Argentina tiene tantas lecturas como tenedores de bonos argentinos hay en EEUU. La apreciación sobre si el país está o no en cesación de pagos ha extendido el debate económico al campo político, en donde el concepto “soberanía” se ha agitado de manera preponderante por el gobierno de Cristina Fernández de Kirchner.
Para las calificadoras de riesgo Standard & Poor’s, Fitch y Moody’s, Argentina entró en un default selectivo el 31 de julio tras no cumplir el pago a los llamados “fondos buitres,”ordenado por un fallo del juez norteamericano Thomas Griesa. Sin embargo, para la Comisión Económica para América Latina y el Caribe (CEPAL), el país todavía se encuentra en un litigio inédito en la Corte Suprema de EEUU, y la Asociación Internacional de Derivados y Swaps (ISDA) revertió su apreciación inicial de default para decir que no hubo moratoria en el pago de la deuda–al fin y al cabo, el dinero del 93% de los bonistas está en las cuentas del Bank of New York Mellon.
This week’s likely top stories: President Juan Manuel Santos announces new ministers; Venezuela and Colombia crack down on smuggling; Codelco’s CEO has new plans for Chuquicamata Mine; Bolivia deports an Argentine accused of crimes against humanity; a fire at a Pemex refinery kills at least four people.
President Santos to announce new Cabinet: Colombian President Juan Manuel Santos is expected to announce new Cabinet ministers today as he launches his second term in office. Of the 16 Cabinet positions, Colombian Defense Minister Juan Carlos Pinzón, Minister of Finance Mauricio Cárdenas, and Minister of Foreign Relations María Ángela Holguín will retain their titles, while former Minister of the Interior Aurelio Iragorri will now be Minister of Agriculture, and Juan Fernando Cristo, former president of the Senate, will take Iragorri’s place at the ministry of the interior. At his inauguration address last week, Santos said that in addition to signing a peace agreement with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC), he will focus on education and equality as pillars of his 2014-2018 presidential term.
Venezuela to shut its border with Colombia at night: Effective today, Venezuelan President Nicolás Maduro and Colombian President Juan Manuel Santos have agreed to close the Colombia-Venezuela border between the hours of 10 pm and 5 am each night in an effort to reduce smuggling. Heavily subsidized Venezuelan goods—such as food and fuel—can be sold at much higher prices in Colombia, causing tax losses for the state and profits for drug gangs and guerrilla groups. So far this year, the Venezuelan government has seized 21,000 tons of food and 40 million liters of fuel that were destined for Colombia. Maduro and Santos agreed to the measures on August 1 at a summit in Colombia.
New Codelco CEO says open-pit mine must go underground: Nelson Pizarro, the new CEO of Chile’s state-owned copper mining company Codelco, said on Sunday that Chile’s open-pit Chuquicamata Mine should be transformed into a subterranean mine to make it profitable. Pizarro, who was named Codelco’s CEO at the end of July and will officially take over on September 1, faces opposition from the miners’ unions, who say that the plan to revamp the mine will cause many to lose their jobs because many are not trained to work underground. Pizarro replied that “if the unions don’t do their part, there will be no future for Codelco.” Codelco is currently the largest producer of copper in the world.
Bolivia deports Argentine accused of Dirty War crimes: Jorge Horacio Páez Senestrari, a former infantry captain during Argentina’s 1976-1983 military dictatorship, has been deported back to Argentina after he was captured on Friday in Santa Cruz, Bolivia. Páez was accused of committing crimes against humanity in the Argentine province of Santa Cruz during the dictatorship. He had been temporarily released from prison in San Juan in 2011 to await his trial, but after he failed to attend his hearing, local police and Interpol issued an international alert for his arrest. Now that he has returned to Argentina, Páez’s trial is expected to resume.
Pemex refinery accident in Mexico: A fire that broke out on Friday at a Petróleos Mexicanos (Pemex) oil refinery in Ciudad Madero, Mexico, had killed at least four people as of Sunday night. Seven refinery workers were still hospitalized, according to Pemex officials. The latest explosion happened as workers performed maintenance on an empty petroleum coke tank, which was used to hold a solid carbon by-product of the oil refining process. On July 24, a different fire had broken out at the refinery, injuring 23 workers. Last week, the Mexican government passed secondary legislation to open its energy sector to private and foreign investment for the first time in over 70 years, in an effort to increase production and attract foreign expertise and technology.
Last Friday at 8:37 pm, 223 members of the U.S. House of Representatives voted to expedite the deportation process for unaccompanied Central American children by revising the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008, even though doing so would deport and endanger children, many of whom would otherwise be eligible for asylum. Shortly thereafter, at 9:55 pm, 216 House members voted to end President Barack Obama’s Deferred Action for Childhood Arrivals (DACA) program and deport more than 700,000 current beneficiaries, known as DREAMers.
This ended—for the time being, at least—the saga that had been brewing for weeks over how Congress would address the surge of unaccompanied minors to the border, and the larger immigration reform debate that has been stalled since House Speaker John Boehner (R-Ohio) refused to bring last year’s bipartisan Senate comprehensive immigration reform bill to the floor for a vote.
Now the House has left for summer recess, having passed legislation that the Senate would never approve, and President Obama is left to deal with the mess through executive action.
Colombian President Juan Manuel Santos began his second term yesterday after winning reelection in the second round in June, defeating Óscar Iván Zuluaga who was backed by former President Álvaro Uribe. Santos based his campaign on the promise of a peace, with the hope of coming to an agreement the left-wing guerrilla group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC).
When Santos initiated the process of peace talks with the FARC in 2012, he broke with Uribe, his former mentor, who had a military-based approach toward dealing with the guerrilla groups. In response, the FARC announced a cease-fire—though the group has engaged in some acts of violence since this announcement—and the Colombian government began peace negotiations in Havana, Cuba in November 2012.
The Corte Constitucional de Colombia (Constitutional Court of Colombia) decided on Wednesday that it will allow guerrillas who give up their arms to participate in politics, unless they have been accused of committing crimes against humanity or genocide. This is seen as another victory for Santos, as Rafael Guarín, a former vice minister of defense and uribista, had previously challenged Santos peace reform in court, attempting to block any future political participation of guerrillas in the Colombian government.
Santos will face an uphill battle, with 61 percent of Colombians skeptical that FARC is interested in peace, and 50 percent disapproving of Santos’ approach towards peace. He also has faces opposition from Uribe, who now serves as a senator, and his allies in congress, as well as a smaller guerrilla group, the Ejército de Liberación Nacional, (National Liberation Army—ELN), who have recently been stepping up attacks on infrastructure.
For the past several years, with almost predictable regularity, The Associated Press (AP) has been producing a series of articles supposedly revealing the secret, unaccountable cloak-and-dagger misdeeds of the U.S. Agency for International Development (USAID) in its Cuba program. For all the implied sinister intentions, bureaucratic overreach and shades of John le Carré-like intrigue, though, all the AP has exposed are really just democracy programs—not that different from those that have been conducted in many other countries, often with the support of human rights organizations, local citizens and the international community. The problem is, this is Cuba, where nothing’s ever straightforward.
To be sure, there’s plenty to complain about and cloud U.S. policy toward Cuba even—or especially—when it comes to the work of the U.S.’ official development agency, USAID. First, there’s the odious, ridiculous policy of a 50-plus-year embargo on the island. Sadly, USAID’s democracy work was added to that failed policy in 1997, when Congress forced USAID to develop a democracy assistance program as a component of the Helms-Burton Law.
The law politicized USAID’s democracy work from its inception. Helms-Burton (or, as it is officially and unironically named, the Cuban Liberty and Democratic Solidarity (Libertad) Act) codified the U.S. embargo into law, and established an unprecedented set of human rights and democracy standards that would have to be met before the president could even ask Congress to lift the embargo, thereby unconstitutionally tying the president’s hands in conducting foreign affairs. It also explicitly tied USAID’s development policy to Congress’ political agenda and was (let’s just say) a unique law in U.S. foreign policy.
After 36 years of searching, Estela de Carlotto, president and founder of the Abuelas de la Plaza de Mayo (Grandmothers of the Plaza de Mayo) was reunited with her grandson in a private meeting in La Plata on Wednesday evening. Ignacio Hurbán, named Guido Montoya Carlotto by his biological mother, discovered his true identity after taking a DNA test Tuesday resulting in a 99.9 percent match with the Carlotto family.
Guido met with his grandmother and his aunt and uncles, Claudia, Kibo and Remo Carlotto, in an undisclosed location from 3 pm to 9:30 pm Wednesday evening, catching up on the decades that had passed since Guido was taken from his 23 year-old mother Laura, who was being held prisoner of the state by the Argentine military dictatorship and had her baby stolen from her only five hours after giving birth.
While recuperated children's identities are carefully guarded to protect the individuals who may be suffering from shock, the news of Guido quickly spread to local and national news. The 36 year-old musician was brought up in Olavarría, a town just under 200 miles from Buenos Aires, by a family with no direct connection to the dictatorship.
During the Argentine military dictatorship from 1976 to 1983—during which time more than 30,000 people were taken prisoner, tortured and killed or disappeared—over 500 babies were stolen from prisoners as "botín de guerra" (spoils of war) and adopted by military and other families. Guido is the 114th grandchild to be recovered after the Abuelas started a DNA bank to help reunite stolen children with their biological families.
The impact of finding Guido has spread across the country. The Abuelas, which usually receive between 10 to 40 calls a day regarding identity, had to bring in additional help on Wednesday to attend to the 100 calls received. While the Abuelas are hopeful of reuniting all of the stolen children with their biological families, they are also cognizant of the difficulty of doing so.
“If it took us 36 years to find 114 grandchildren, calculate how much time will have to pass for us to find the rest of the 400 we’re missing,” said Rosa Roisinbilt, vice president of the Abuelas.
Due to the high volume of unaccompanied minors coming from Central America, the Texas state government announced yesterday that it would relax the rules governing the required conditions in its shelters. The regulatory changes reduced the number of square feet required for each child, increased the number of children assigned to a single toilet, sink and shower, and allows the minors to sleep on cots when standard beds are unavailable.
The announcement comes one day after the U.S. Department of Health and Human services said that it would be closing three emergency shelters currently situated on military bases in California, Texas and Oklahoma. The shelter at Fort Sill in Oklahoma could close as early as Friday. More than 7,700 children have been housed at the three shelters since May, many of whom have since been reunited with family.
And in a last-minute vote on Friday—hours before the start of August recess—the Republican majority in the House of Representatives approved legislation that would modify a 2008 anti-human-trafficking law in order to make it easier to deport unaccompanied minors and block President Obama’s 2012 Deferred Action for Childhood Arrivals (DACA) program. The chamber also approved $694 million in emergency funding for federal agencies dealing with the crisis, far less than the $3.7 billion requested by President Obama. It is unlikely that these bills will pass the Democrat-controlled Senate.
On November 29, 2014, Paraguay will celebrate the 33rd anniversary of its establishment of diplomatic relations with the Republic of Indonesia, the world’s fourth-largest nation with over 250 million people. Indonesia is one of the Next Eleven (N-11) Economies, and together with Paraguay, is also a member of the Group of Eleven (G11), whose efforts are focused towards reducing poverty. Both nations became members of the World Trade Organization in 1995.
Because there is great potential to strengthen the commercial, political and economic partnership between the two countries—and due to the deep interest of President Horacio Cartes and his Indonesian counterparts in strengthening the bilateral partnership—the two foreign ministries should take further action to discuss mutually beneficial issues such as bilateral trade, economic growth and cooperation in the industrial and logistical sectors.
In 2012, Paraguay exported more than $19.5 million in goods and services to Indonesia, and there was a significant increase of such imports in 2013, reaching over $121.8 million worth of goods and services. Yet despite the strategic importance of pursuing a Free Trade Agreement between Indonesia and Paraguay, Paraguay is still not a member of the Pacific Alliance, although it is an observer state.
There were 600 fewer homicides in Honduras as compared to the same period last year, President Juan Orlando Hernández announced on Monday. In the first semester of 2014, there were 2,893 murders in the small Central American country, which is home to 8.2 million inhabitants.
Honduras averaged about 19 murders a day in 2013, but President Hernández remained hopeful that the drop in the rate would become a pattern for the embattled country. He blamed the complexities of organized crime and security issues for the elevated number of homicides, and emphasized that patterns and trends will not become apparent to the general populace for several years, as was the case in Colombia and Guatemala. An International Crisis Group report released in June identified the 2009 coup d’état that deposed former President Manuela Zelaya as a primary cause in the increase in drug-related crime in the country.
The high rates of violence contributed to Honduras’ low score in the 2014 Social Inclusion Index where it ranked sixteenth out of 17 countries, behind El Salvador and Paraguay. Social exclusion and the lack of citizen security have been highlighted as two of the primary drivers in the unaccompanied minor crisis at the border.
Lately, Brazil has been in the business of building things from the ground up. From stadiums that hold millions of people to entire market ecosystems, this is challenging work for a government. In anticipation of the World Cup, Brazil received heavy criticism for its infrastructure development. However, Brazil’s efforts at developing an entrepreneurship ecosystem have consistently been touted as a success by many policymakers and investors.
Yet while some Brazilian programs have been relatively successful at addressing superficial holes in the entrepreneurship ecosystem, such as access to financing, the government has yet to address the structural issues from which these problems stem.
Entrepreneurial capital in the form of micro-enterprises and self-run businesses has long been part of the economic fabric of Brazil. However, throughout Latin America in the last 20 years, there has been more focus on encouraging the “opportunity entrepreneur.” As highly skilled individuals eligible for salaried employment these people choose to start their own businesses out of opportunity rather than necessity. It is widely recognized that encouraging these individuals to start entrepreneurial and innovative enterprises creates productivity gains and economic growth within a country.
In the early 2000s, Colombia’s oil industry was weakening. There had been a decrease in new discoveries, followed by a decline in production from a peak of 800,000 barrels per day (b/d) in 1999 to nearly 550,000 b/d in 2004. Exploration and production had moved to increasingly remote areas with higher security risks and risky geology, requiring more capital and technology. As such, the Colombian government remained dependent on Ecopetrol, the state oil company, which represented the entirety of the Colombian oil industry.
Today, Mexico’s oil industry stands in a similar state of decline, as described by a recently released Americas Society/Council of the Americas white paper, “Mexico: An Opening for Energy Reform.” Oil production in Mexico as a whole has fallen from 3.8 million b/d in 2004 to 2.5 million b/d in 2013. Production of the Cantarell oil field, the most lucrative of Mexico’s shallow water reserves, peaked in 2003 at 2.1 million b/d, and is now producing less than one quarter of that.
Just as in Colombia, the problem in Mexico does not lie in a lack of resources, but rather in a lack of capital and technology. Mexico in particular maintains extensive shale deposits that remain largely untapped. The roots that bind Petróleos Mexicanos, or Pemex, and the Mexican government run even deeper than those that once bound Ecopetrol and the Colombian government. Mexico’s state oil enterprise pays for approximately 40 percent of the country’s budget—and since the government acts as both a regulator and an owner, transparency and accountability suffer.
This week’s top stories: USAID is accused of running a secret program in Cuba; Mexican energy reform passes in the lower house; U.S. Republicans pass immigration bills before recess; the value of the Argentine peso drops over debt woes; a bridge in Montería, Colombia collapses.
USAID and Cuba: In a statement this morning, the United States Agency for International Development (USAID) has criticized an Associated Press report that alleges that the agency secretly sent non-Cuban Latin American youth to Cuba to recruit anti-government activists on the island. USAID states that their work “is not secret, it is not covert, nor is it undercover,” and that it was part of “democracy programming in Cuba.” The program, which the AP says was run by USAID and the Washington-based Creative Associates International, allegedly recruited a dozen young people from Venezuela, Costa Rica and Puerto Rico to “identify potential social-change actors” while running civic programs in Cuba, such as an HIV prevention workshop.
Mexico’s lower house passes energy reform: Mexico’s lower house passed secondary legislation to reform the Mexican energy sector on Saturday, making small modifications to proposals submitted by Mexican President Enrique Peña Nieto and the Mexican Senate. The reforms, which must now be re-approved by the Senate, are expected to bring billions of dollars of investment in the production of Mexican oil and shale gas. The reforms will allow private companies to produce oil under production-sharing and profit-sharing contracts with the Mexican government for the first time in nearly seven decades. One of the most controversial components of the legislation is a requirement that the federal government, financed by Mexican taxpayers, pay a portion of Petróleos Mexicanos (Pemex) and the Comisión Federal de Electricidad (CFE)’s pension liabilities.
Immigration bills: In last-minute votes on Friday before the August recess, the Republican-led House of Representatives passed two bills that would modify a 2008 anti-human-trafficking law in order to make it easier to deport unaccompanied minors from Central America, and also block the 2012 Deferred Action for Childhood Arrivals (DACA) program, which defers deportations for undocumented immigrants who arrived in the U.S. as children. The Republican bills have come under criticism from Democrats and U.S. immigrants’ rights groups, who say that the legislation would return children to the violent situations in their home countries that they are trying to flee. Bishop Eusebio Elizondo of the U.S. Conference of Catholic Bishops called the legislation “a low point for our country.” Those in favor of the bills say they will strengthen enforcement and reduce incentive for young immigrants to come to the United States. The legislation approved $694 million in funding for federal agencies to address the surge of migrants, far less than the $3.7 billion requested by President Barack Obama. Congress is on recess this month, and the measures are unlikely to become law due to strong opposition. President Obama said on Friday that he was “going to have to act alone” due to the lack of funding to respond to the surge of young migrants.
Argentine peso could drop 10 percent in value: After last month’s failed negotiations between Argentina and holdout creditors over Argentina’s debt, investors expect a 10 percent drop in the value of the Argentine peso over the next 90 days. Traders’ expectations for the peso hit a six-month low on August 1—at 9.15 per dollar—two days after the country missed its July 30 deadline to pay $539 million in interest to restructured bondholders. The Argentine government has argued that the country is not in default because it has continued to make deposits to its bondholders with the BNY Mellon, though the payments are being held back due to the court ruling by the U.S. district court judge Thomas Griesa, who ruled that holdout creditors must be paid first. Argentina has asked Judge Griesa to find a replacement for mediator Daniel Pollack as negotiations continue, saying that he has been biased in favor of the holdouts.
Collapse of bridge in Montería, Colombia leaves at least 27 wounded: A bridge being built to reduce traffic at Los Garzones airport in the city of Montería in northern Colombia collapsed around 9 p.m. on Sunday and left at least 27 workers wounded, while one worker remains trapped in the debris. It is unclear why the bridge collapsed, although some believe that it may have been an error in engineering in the construction’s wooden framework. Transport Minister Cecilia Álvarez will visit the zone today to make an inspection.
Argentina’s stock market fell 8.4 percent on Thursday after the country slid into what Standard & Poor is calling a selective default. Despite emergency negotiations Wednesday night, holdout bondholders and Argentina’s Finance Minister Axel Kicillof were unable to reach a compromise.
The default crisis was sparked by lawsuits led by Paul Singer for $1.5 billion after the country defaulted on its bonds in 2001. President Cristina Fernández de Kirchner’s administration foreshadowed the default in June after the U.S. Supreme Court upheld a ruling requiring Argentina to pay the full amount owed to hold-out bondholders.
This is the second default the country has seen in 13 years. While Argentina is bracing for higher inflation and increased cost of borrowing, the consequences are not predicted to be as dire as in 2001 when the banking system failed leading to an economic collapse.
Miriam Rodríguez, 43, lives in Cañadas del Florido, a low-income neighborhood in Tijuana, Baja California, the northernmost state of Mexico. Three years ago, on any given day, Miriam and her three children would watch criminals, drug addicts, and vagrants frequent the empty house next door. Their streets were littered with garbage and dead animals.
This is not an uncommon situation in the Mexican neighborhoods, or fraccionamientos, where more than seven million houses were built by developers with mortgages from the government in the last decade. But thanks to the Mexican social impact enterprise Provive, Miriam’s life has since changed.
In the early 2000s, the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (The National Fund for Workers’ Housing Institute—INFONAVIT)—a Mexican state agency funded through payroll contributions that offers affordable housing finance to formal workers—underwent a radical reorganization. The result was a complete transformation in the way housing was constructed and purchased throughout the country.
The restructuring of INFONAVIT stimulated a dynamic through which private developers built thousands of houses that were bought by low and lower middle-income formal employees through credit subsidies and mortgages from INFONAVIT, replacing the traditional incremental construction process. INFONAVIT became the largest mortgage lender in Latin America.
The U.S. has issued a travel ban for a list of unnamed Venezuelan officials who are accused of involvement in human rights abuses after the Venezuelan military and police cracked down on anti-government protests earlier this year.
The ban affects 24 high-ranking officials from Venezuela, ranging from cabinet members and senior judiciary members to members of the military and the police. Venezuelan Foreign Minister and former Vice President Elías Jaua called the move “desperate” and a “reprisal… against the role that Venezuela plays in a new world, in an independent Latin America.”
Diplomatic tensions between the United States and Venezuela had already worsened after a former general and aid to Hugo Chávez, Hugo Carvajal—accused by the United States of drug trafficking and supporting left-wing guerrillas in Colombia—was released from Aruba on Monday. U.S. concerns that Caracas had pressured the Dutch government to release the formal general were confirmed by the chief prosecutor of Aruba, Peter Blanken, but Blanken emphasized that Carvajal was released because of “diplomatic immunity,” and not because of the “actions against Aruba from the Venezuelan government.”
Meanwhile, in Venezuela, the executive secretary of the opposition’s Mesa de la Unidad (Democratic Unity Roundtable–MUD), Ramón Aveledo, resigned from his post on Tuesday, citing the need to renew the opposition movement. Aveledo, who had lead MUD for five years, was responsible for uniting Venezuela’s fractious opposition. Earlier this year, at least 43 people were killed during protests led by students and the political opposition.
In the 2014 Summer issue of Americas Quarterly, Boris Muñoz examines the challenges that Venezuela is facing in his article, Venezuela: How Long Can This Go On?
From the age of 10, Marina Silva would wake up before dawn to prepare food for her father, so that he could set off through the dense jungle before the heat of the tropical sun made it impossible for him to keep working. In Silva’s community of rubber tappers in Brazil’s northwestern state of Acre, survival depended on the collection of natural latex that bleeds like sap from the Amazon’s seringueira tree.
Today, the vice-presidential candidate and former minister of environment draws upon her past experiences in Acre as a model of sustainable living, promoting a government policy of cooperation with forest-dwellers to develop Brazil.
“Gone is the logic of doing for the people,” Silva said last week during the 66th annual meeting of the Sociedade Brasileira para o Progresso da Ciência (Brazilian Society for the Progress of Science–SBPC). “It is [a logic of] doing with the people…a new vision for the development of Brazil…that takes into account sustainability in all of its dimensions: economic, social, environmental, cultural, political, even aesthetic.”
Silva presented her new vision at the conference, held at her alma mater, the Universidade Federal do Acre (Federal University of Acre–UFAC), in the state capital of Rio Branco. The meeting in the oft-forgotten state of Acre united some 5,400 national and international policymakers, rubber tappers, subsistence farmers, student activists, and individuals from over a dozen Indigenous ethnicities.
Human Rights Watch released a report today that documents killings, disappearances and sexual violence against Afro-Colombian communities in Tumaco, a city in southwestern Nariño department. The abuses were reportedly committed by the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia–FARC).
José Miguel Vivanco, Americas director at Human Rights Watch, said that “the FARC has a tight grip over the lives of many Tumaco residents, who are forced to keep silent as the guerrillas plant their fields with landmines, drive them from their homes, and kill their neighbors and loved ones with impunity.”
In addition to the crimes committed by FARC, the report highlights abuses by neo-paramilitaries and police, and the general atmosphere of crime in the state. Nevertheless, Human Rights Watch believes that of the 17 killings that took place in 2013 and 2014, 12 are likely to be attributed to FARC.
Despite the high levels of crime, an increase of 200 policemen in Tumaco has reduced the level of homicides by 41 percent from 2013 to 2014, according to El Espectador. The city has created a five-year plan from 2014-2019 that proposes infrastructure investments such as power plants, improving the port and airport, and building 200 interest-free housing units.
Colombian President Juan Manuel Santos threatened on Tuesday to halt peace negotiations with FARC after continuing attacks—including an attack on the Ariari aqueduct on Saturday, which left around 16,000 people without water in the Colombia state Meta, and an attack on an electrical tower in Buenaventura on Monday, leaving 450,000 without power. After the attack in Meta, Santos stated, “They are digging their own political grave because this is exactly what makes people reject them.”
Santos will begin his second term on August 7, after a competitive election that showcased many Colombians’ skepticism towards achieving peace with the FARC. Out of 17 countries in the hemisphere, Colombia ranked 11th overall in Americas Quarterly’s 2014 Social Inclusion Index, which was released on Tuesday.
Chilean President Michelle Bachelet unexpectedly canceled her trip to Venezuela for today’s Mercosur Summit yesterday afternoon. Alvaro Elizalde, a spokesman for the Bachelet administration, confirmed that Heraldo Muñoz, Minister of Foreign Affairs, will represent the Chilean delegation at the summit in Caracas.
In addition to the Mercosur meetings, Muñoz will also meet with Venezuela’s President Nicolás Maduro’s administration and with the Venezuelan opposition coalition Mesa De Unidad Democrática (Democratic Unity Coalition–MUD), at their request.
Muñoz is expected to express Chile’s interest in restarting and facilitating the stalled peace negotiations between MUD and the Venezuelan government. It is unclear whether he will address the continued imprisonment of opposition leader and former mayor Leopoldo López of the Voluntad Popular (Popular Will) party.
President Bachelet’s absence was attributed to a winter cold and emergency meetings regarding her signature tax, healthcare and education reform.
This week’s likely top stories: Mercosur leaders meet in Caracas; former General Hugo Carvajal returns to Venezuela; California Governor Jerry Brown visits Mexico; Mexican Congress discusses energy reform; Argentina nears its debt deadline.
Mercosur leaders to address Israel at Mercosur summit: Brazilian President Dilma Rousseff is expected to lead Mercosur leaders in condemning Israel’s military offensive in the Gaza Strip at Tuesday’s summit of Mercosur presidents in Caracas. Last Thursday, Israel referred to Brazil as a “diplomatic dwarf” after Rousseff recalled Brazil’s ambassador to Israel and the Brazilian Foreign Ministry cited Israel’s “disproportionate use of force” in Gaza. All five presidents of Mercosur’s full members—Argentina, Brazil, Paraguay, Uruguay and Venezuela—are expected to attend the summit, along with Bolivian President Evo Morales, whose country is in the process of joining the bloc. Argentine President Cristina Fernández is also expected to deliver a speech condemning “vulture funds” only one day before Argentine debt talks are set to expire.
Venezuelan ex-general freed in Aruba: Former Venezuelan General Hugo Carvajal received a hero’s welcome in Venezuela after he was released from detention by Aruban authorities on Sunday. U.S. officials have accused Carvajal of aiding in drug trafficking and supporting left-wing guerillas in Colombia. While Carvajal was waiting to be confirmed as Venezuela’s consul in Aruba, he was arrested last Wednesday at the request of the United States, but the Dutch government finally agreed that he “should have diplomatic immunity as nominated consul to Aruba.” The United States has accused the Venezuelan government of threatening the governments of Aruba and the Netherlands to release the former general.
California Gov. Jerry Brown trade mission to Mexico: California Governor Jerry Brown has arrived in Mexico to discuss immigration and trade with Mexican President Enrique Peña Nieto and leaders from Central America. The governor will meet with Peña Nieto today and with Central American leaders on Tuesday to discuss the wave of undocumented minors arriving in the United States. The focus of the trip will be the economy and trade, and the governor will be joined by a delegation of more than 100 state government, business, economic development, investment and policy leaders to foster trade, educational exchanges, climate change, and tourism between California and Mexico.
Mexico’s Chamber of Deputies to discuss energy reform legislation: Members of Mexico’s lower house will begin discussion today on secondary legislation for Mexican energy reform. The reform will permit the participation of private national and foreign investment in Mexico’s oil and gas company PEMEX and the Comisón Federal de Electricidad (CFE–Federal Electricity Commission) for the first time in the country’s history. The Partido Acción Nacional (National Action Party—PAN) has promoted the creation of a Fondo Mexicano del Petróleo (Mexican Fund for Oil) with profits derived from the oil industry in order to invest in infrastructure and technology. The director of CFE, Enrique Ochoa Reza, emphasized the benefits of the reform, including generating cheaper and more environmentally friendly forms of energy.
Argentina at risk of default as debt deadline nears: Upon the news that the Argentine government will not meet with a debt mediator until tomorrow, Argentina’s government bonds dropped to a one-month low today. The Argentine government has met with court-appointed mediator Daniel Pollack on four occasions, and negotiations over $1.5 billion in unpaid debts remained deadlocked after no progress had been made with talks on Friday. If negotiations are not completed by July 30, or a court delay is not offered, Argentina will default for the second time in only 13 years.
Caracas announced yesterday its opposition to the “illegal and arbitrary” arrest of former Venezuelan general, Hugo Carvajal in the Dutch-administered Caribbean island Aruba. While Carvajal–ex-director of military intelligence in Venezuela and personal advisor of late Venezuelan President Hugo Chávez–awaited his approval as consul in Aruba, he was detained on Wednesday night at the request of the U.S. government for his supposed involvement in drug-trafficking and support of the Colombian guerrilla group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia–FARC).
Carvajal was involved Chávez’s first coup attempt in 1992 and served as the military intelligence chief from 2004 to 2011. In 2008, the U.S. Treasury Department blacklisted Carvajal and other Veneuzlean military officials accusing them smuggling cocaine and providing weapons to FARC rebels. He has also been accused of providing protection and documents of identification for Colombian cartel leaders, including Wílber Varela, in Venezuelan territory.
Although Venezuelan authorities declared the capture illegal because General Carvajal had a diplomatic passport, the Dutch government had never approved of his appointment. The U.S. has have 60 days make a formal request for request an extradition of the former general.
Carvajal is one of three former high-ranking officials from Chávez’s administration that have been charged in drug-trafficking cases. Benny Palmeri-Bacchi, one of these former officials, was arrested upon his arrival in Miami, and yesterday pleaded not guilty to protecting a drug-trafficker who brought cocaine from Venezuela to the United States.
This Friday, presidents of the Northern Triangle countries of El Salvador, Guatemala and Honduras will meet with President Barack Obama in Washington DC to deal with the crisis of unaccompanied minors arriving in the U.S. from Central America.
Migration between these countries is not new, and has been high on the multilateral agenda for years. The U.S., Mexico and Central America share not only geographic proximity, but historical, social, political, economic, and cultural ties.
The non-authorized flow of adults and children between Central America, Mexico and the U.S. continues to alarm all sides, with over 347,000 nationals from Mexico and Central America removed from the U.S. in FY 2013 alone, according to the U.S. Department of Homeland Security (DHS). This comprised about 94 percent of all U.S. deportations in 2013—but does not account for the high numbers of Central American migrants removed from Mexico.
Yet it is the recent spike of minors attempting to illegally cross the U.S.-Mexico border from Mexico and the Northern Triangle—from 19,418 children in FY 2009 to 56,547 in FY 2014—that opened a major inquiry into the recurring immigration crisis, prompting quick political responses and visits between U.S., Mexican and Central American officials.
U.S. Counselor of Department of State Thomas Shannon arrived in Honduras on Wednesday as part of a three-day trip to Central America to address the estimated 52,000 unaccompanied minors from the region entering the U.S. illegally. As part of his trip, Shannon visited repatriation centers and met with leaders of civic organizations and government officials. He also spoke with members of the Red Cross, the Border Police, and immigration officials on the Honduran-Guatemalan border in Corinto, Honduras—an area that has seen high levels of violence and narcotrafficking activity, as well as the transit of thousands of migrants per year.
The unaccompanied minors entering the U.S. are primarily coming from Honduras, Guatemala and El Salvador and many have since been detained by U.S. officials. “Migration is a problem that corresponds to all of the countries involved—the countries of origin, transit and destination. We have the responsibility to work together to look for a solution to the problem,” said Shannon.
Shannon, who is the first Foreign Service Officer to serve as Counselor in 32 years, discussed the importance of addressing the push factors in Central America. “We want to work to assure that migrants, instead of looking for the American dream look for the Honduran dream. We need to build opportunities [in Central America], even though we understand that some of these [children] wish to be [reunited] with their parents, but migration has many causes,” he said.
Shannon’s trip concludes today, just before President Barack Obama is scheduled to meet with Honduran President Juan Orlando Hernández, Guatemalan President Otto Pérez Molina and Salvadorian President Salvador Sánchez Cerén on Friday in Washington DC to discuss the crisis of children migrants.
During the past few months, the United States, Mexico and Central American governments have brought attention to the number of unaccompanied minors fleeing towards the U.S. from Honduras, El Salvador, Guatemala, and Mexico.
A recent study by the Pew Research Center shows that the number of unaccompanied children ages 12 and younger caught at the U.S.-Mexico border this fiscal year rose 117 percent, compared to last fiscal year. U.S. Customs and Border Protection reported that by May 31 this year, unaccompanied minors apprehended at the southwest U.S. border included 13,282 children from Honduras, 11,577 from Mexico, 11,479 from Guatemala, and 9,850 from El Salvador. The Wall Street Journal stated that the total number of unaccompanied children taken into custody at the end of June had climbed to 57,525.
The U.S. Department of Homeland Security published a map that identifies the origins of the unaccompanied children and the factors causing child migration to the United States. In the case of Guatemala, the map indicated that many Guatemalan children come from rural areas and are probably seeking economic opportunities in the U.S., while many children from Honduras and El Salvador are coming from regions with high crime rates and are likely seeking refuge from violence.
Massachusetts voters are split on whether they support Governor Deval Patrick’s plan to temporarily shelter 1,000 unaccompanied young immigrants in the state, according to a Boston Globe poll released today. Half of the 404 voters polled expressed support for Gov. Patrick’s plan, and 43 percent opposed it, with a margin of error of plus or minus 4.9 percentage points. Responses to the poll split along political lines, with 79 percent of Republicans opposing the plan and 69 percent of Democrats supporting it. As of the end of June, 733 minors had already been discharged to Massachusetts.
In an emotional address on Friday during which he called the situation at the southern border a “humanitarian crisis,” Gov. Patrick said the state could provide temporary shelter for up to four months at one of two military facilities in the towns of Bourne or Chicopee. He made clear that all services rendered at either facility relating to unaccompanied minors would be staffed and paid for by the federal government. But the mayor of Chicopee, Richard Kos, strongly opposed using the city’s Westover Air Reserve Base as an option, citing concerns about “security issues and maintaining normal operations.”
While generally regarded as a liberal state, the poll showed that Massachusetts residents are more moderate on immigration issues. Asked whether the migrant children should be allowed to stay in the U.S. after judicial hearings, and only 39 percent answered yes, while 43 percent said they should be deported. And only 52 percent of those polled support a path to citizenship for immigrants already in the country illegally, which is in line with national poll results.
Chinese President Xi Jinping kicked off a two-day tour of Cuba last night, stirring hopes that the China will invest heavily in Cuba’s developing economy. President Xi will meet with President Raúl Castro today in Havana before flying to the eastern city of Santiago de Cuba.
While China and Cuba are close political allies, instability in the Cuban economy stifled efforts to act on deals signed by the two countries for large Chinese investments in Cuba’s nickel, hotel and oil industries between 2000 and 2009. President Castro’s economic reforms—along with the new foreign investment law that offers tax breaks for joint-ventures and more investment security, and development of the Mariel Special Development Zone, which will offer tax and contract incentives unavailable elsewhere on the island—are expected to be used as an incentive for Chinese investment in Cuba’s pharmaceutical and automotive sectors.
President Xi’s visit to Cuba culminates his four-country tour of Latin America. During his visit to the region, the Chinese executive also met with Argentine, Brazilian and Venezuelan officials to finalize key investment deals and launch the new Brazil, Russia, India, China, and South Africa (BRICS) development bank.
China is currently Cuba’s largest creditor and second-largest trade partner.
This week’s likely top stories: Colombia inaugurates a new legislature; Argentina must pay its debt by July 30; Reforms to Peru's environmental agency are criticized; Five Nicaraguans are killed after a Sandinista anniversary celebration; Bolivia allows those as young as 10 to work.
Colombia installs new legislature: As Colombia’s new legislature was sworn in on Sunday, re-elected Colombian President Juan Manuel Santos hailed the installation of a new “Congress of peace.” Though Santos’ Partido de la U (Party of the U) faces a reduced majority in Congress and outspoken opponents like current Senator and former president Alvaro Uribe, Santos said he hoped that the newly-elected legislators would continue to support the government’s ongoing peace talks with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) in Havana. Since the talks began in 2012, the FARC and the government have agreed on three points of a six-point plan, and must still decide on restitution for victims of violence, rebel disarmament, and how to ratify the final peace agreement.
Argentine debt negotiations near deadline: Argentina must reach a deal with its holdout creditors before July 30 or face its second default in 13 years. There is still a possibility that U.S. courts could issue a stay to allow the country to continue negotiating with holdouts, but a default would likely trigger recession, inflation, high unemployment and other economic woes for the country. Argentina has been ordered to pay approximately $1.5 billion to its holdout creditors, but if other bondholders demand the same terms as the holdouts, Argentina said it may have to pay up to $120 billion. Meanwhile, Argentine Cabinet Chief Jorge Capitanich said that the holdouts may try to seize YPF-Chevron assets in the Vaca Muerta shale gas deposit.
Controversial reforms to Peru’s environmental agency: After Peruvian President Ollanta Humala enacted a controversial law on July 11 to reform the country’s Organismo de Evaluación y Fiscalización Ambiental (Environmental Evaluation and Regulation Organization—OEFA), environmental groups, Peru’s ombudsman, environmental authorities and some elected officials say the changes will weaken the country’s environmental protections. The law—which the Peruvian government says will refocus the OEFA on “preventative” rather than disciplinary actions—will streamline the environmental review process and lower fines for all but the largest environmental infractions, among other changes designed to attract mining investment. Meanwhile, the agency faces a lawsuit by the mining sector that could slash its 2014 budget by 40 percent.
Five Killed in Nicaragua: Five people were killed and at least 24 wounded in Nicaragua on Sunday following a Sandinista political celebration. In two separate attacks, two men and two women were killed by gunshots as they traveled on the Pan American highway outside the community of Las Calabazas, while north of Matagalpa, another man was killed. Thousands of Nicaraguans had gathered in Managua on Saturday to celebrate the 35th anniversary of the Sandinista revolution. An anti-Sandinista group reportedly claimed responsibility for the attack on Facebook.
Bolivia legalizes child labor: Bolivian Vice President Alvaro García Linera signed a law last Thursday that will permit Bolivian children as young as 10 to work independently, and will permit 12-year-olds to work for others with parental authorization. The measure was approved by Bolivia’s congress earlier this month. Previously, the minimum working age in Bolivia was 14, but the government said that the new law would help to combat extreme poverty, and reflects the realities of a nation where some 800,000 children are already employed. The International Labour Organisation says that it will study the legislation to decide whether it contravenes international conventions. Human Rights Watch issued a statement in January calling on the Bolivian government to reject a proposal to lower the minimum working age.