The Peruvian government announced Thursday that it will meet with Indigenous communities early next year to discuss Peru’s natural resource extraction projects. The meetings, scheduled between February and March 2013, mark the first time the Peruvian government will consult with indigenous communities about controversial projects like Lot 1AB in the northeastern Amazonian region of Loreto. The site is owned and operated by the Argentine company Pluspetrol, whose contract expires in 2015.
Indigenous community leaders of Pastaza, Corrientes, Tigre and Marañón in the jungle region of Loreto have denounced the government and have reported pollution problems as a result of drilling operations that are located near their communities. David Chino, the vice president of the Quechua Indigenous Federation of Pastaza, said that “the government has ignored us and has not obliged the companies to comply with their commitments.”
A report issued in July by a congressional working group that visited the region concluded that the toxicity level at Lot 1AB is so high “that the use of bioremediation to break down the oil would be useless.” The congressional working group’s report identifies the corrosion of the pipelines used to transport the oil as the main cause for the spills.
However, representatives of Pluspetrol claim that the contamination was caused by acts of vandalism. The claims are currently under legal investigation.
“We think it is good that they will hold a consultation,” said Achuar Indigenous leader Andrés Santi, president of the Federation of Native Communities of Corrientes. “But how can they repair all of the damage they have done to us in the last 40 years in just a short time?”
Peru is implementing consultations with Indigenous groups in compliance with the International Labour Organisation’s (ILO) Convention 169 on Indigenous and Tribal Peoples in Independent Countries, which governs projects in ancestral Indigenous territories.
The Peruvian Congress gave their vote of confidence to President Ollanta Humala on his new cabinet early Tuesday morning—Peru’s third cabinet under President Humala, who has one year in office remaining. After 10 hours of debate, 73 legislators voted in support of the new cabinet and 38 opposed it.
The debate largely focused on how the new cabinet will work to address the social conflicts that have plagued the country recently—specifically mining conflicts in Cajamarca—as well as security issues and budget expenditures to respond to increasing social demands.
The prime minister, Juan Jiménez, presented the potential cabinet members to Congress on Monday afternoon. The new cabinet members will have a significant role to play in the forthcoming months since many ministries plan still have yet to spend almost 80 percent of their budgets.
Since the late 1990s, both India and Peru have turned their focus to each others’ regions. New commercial exchanges have filled some gaps in the bilateral, but strategic elements - climate change, multilateral fora, advanced research - must be incorporated if both countries are to benefit from each other.
A distance of 17,789 kilometres separates Kolkata in India from Arequipa, Peru’s second-largest city, and few in either place know of the existence of the other. Yet, commonalities could make them twins. Both have a rich literary culture and embedded intelligentsia; they are the birthplace of Rabindranath Tagore and Mario Vargas Llosa respectively, the only Nobel laureates in literature from either country. Many colourful auto rickshaws in Kolkata and mototaxis in Arequipa are made by the same company – Bajaj. Some even share the same instruction label on how to use the three-wheeler’s steering wheel - written in Hindi. Echoes of Indian songs like “Bole chudiyan, bole kangna,” reverberate in remote corners of the vast Andes mountain range that surrounds Arequipa, in southern Peru. Not only is Bollywood music popular, but every second Arequipeño is familiar with Rishi Kapoor’s debut film Mera Naam Joker. The greatest point of convergence though, is probably Kolkata’s Mother Teresa, who goes by the Spanish name of Madre Teresa de Calcuta in all of Peru. Yet, few there recognize that Calcuta is in India.
Both countries have only recently begun to discover each other. This is attributed more to their evolving geoeconomic priorities, rather than to a focused approach to strengthen the bilateral. Since the late 1990s, both India and Peru have turned their focus to each others’ regions – India to Latin America and Peru to Asia. In 1997, recognizing the growing importance of Latin America especially for natural resources, India’s Ministry of Commerce launched the ‘Focus: LAC programme,’ to broaden commercial ties with Latin America. A year later in 1998, intending to move beyond its traditional trade routes – with the U.S. to its north, Europe to its east and intra-regional trade with Latin America – Peru joined the Asia-Pacific Economic Cooperation (APEC) to gain better access to Asia.
Unfortunately, neither India nor Peru has capitalized on these transformed economic priorities to deepen the bilateral. Though the relationship is cordial, it is purely transactional. A modest bilateral trade of $825 million (January-November 2011) has been confined to copper, vehicles and auto parts, and cotton yarn. Early Indian investors like Bajaj Auto and the Mahindra Group are well-established in Peru; new ones though, like Reliance and Jindal which have targeted Peru’s large mining and hydrocarbon sectors, have yet to see substantial returns. A few Peruvian companies have entered the Indian market; none have made a lasting impression.
Top stories this week are likely to include: India-CELAC dialogue; Jamaica marks its independence; impact of the Antamina spill; Repsol to meet with Venezuela on YPF; and responses to Petrobras’ poor quarterly release.
India-CELAC Dialogue: Tomorrow, Indian Foreign Minister S. M. Krishna will host a troika of high-level diplomats from the Comunidad de Estados Latinoamericanos y Caribeños (Community of Latin American and Caribbean States—CELAC) in New Delhi with the objective being to deepen relations with Latin America. As Chile currently holds the CELAC presidency, Chilean Foreign Minister Alfredo Moreno will lead the delegation that will also include Venezuelan Foreign Minister Nicolas Maduro and Cuban Vice-Foreign Minister Rogelio Sierra. According to India’s foreign ministry, India’s trade in Latin America and the Caribbean (LAC) was over “$25 billion in 2011 and cumulative investments are estimated to be $16 billion mostly in hydrocarbons, minerals, agriculture, pharma and IT;” still, there is “vast untapped potential” for further collaboration. This presents an enormous opportunity for Latin America, notes AQ Senior Editor Jason Marczak: “Greater trade and investment linkages with India will be critical for protecting the region against any decrease in demand caused by a slowing Chinese economy. India represents a growing, untapped middle class.” For more on LAC-India relations, read “The Other BRIC in Latin America: India” from the Spring 2011 AQ. As well, AS/COA notes that diplomatic ties between LAC and India have expanded; between 2002 and 2009 the number of LAC embassies in New Delhi grew from 12 to 18.
Jamaica Rings in Independence: Today Jamaica celebrates 50 years of independence from the United Kingdom. Queen Elizabeth II remains the island’s monarch, but Jamaican Prime Minister Portia Simpson-Miller pledges to loosen ties with Great Britain and make her country a republic. Doing so would maintain Jamaica’s status as a British commonwealth, but would remove the Queen as Jamaica’s head of state and have the prime minister become president. Reflecting on 50 years of independence, Simpson-Miller told TIME Magazine that “despite our challenges, I think we’ve done very well on balance our first 50 years […] Jamaica is more than just the ‘brand’ the world recognizes so well; it’s a place of pride for the people who live here, its educational institutions, its sports achievements, and its science and technology growth.”
Impact of Peruvian Mine Spill: A toxic copper concentrate spilled at the Antamina mine in the Peruvian region of Ancash on July 25 has made over 100 people ill. Antamina’s environmental director has disputed that the material was toxic, instead referring to it as a “dangerous substance that requires a particular handling but not necessarily toxic.” Still, on Sunday, the company was fined for not activating its response plan to the accident. Copper has been instrumental to Peru’s economic ascent, accounting for 60 percent of export income, but “environmental protection has been relatively lax” in the Andean country according to the Associated Press. As more details emerge this week, will the government take additional action?
Repsol Representatives to Meet with Venezuelan Officials on Thursday: Officials from Spanish firm Repsol S.A. will meet with Venezuelan leaders on Thursday to discuss Repsol’s dispute with Argentine firm YPF after Argentina’s government seized a majority share of YPF, formerly held in a joint venture with Repsol. Venezuela has pledged to invest in Argentina to boost its oil production and desires an amicable resolution to the conflict with Repsol and the Spanish government. Repsol has investments in Venezuelan oil and gas fields, according to Bloomberg.
Fallout from Disappointing Petrobras Report: Petrobras posted its worst quarterly report since 1999, registering a R$1.35 billion ($663 million) loss in the second quarter, versus a R$10.94 billion—then equivalent to $6.86 billion—gain one year earlier. Petrobras President Maria Graça Foster blamed the loss in part to an “excessive depreciation” of the real against the dollar. What steps will be taken in response to this report?
Top stories this week are likely to include: post-election protests in Mexico; OAS to issue its report on Fernando Lugo’s ouster; anti-mining protests continue in Peru; Raúl Castro arrives in Vietnam; and ASEAN-Latin America Business Forum gets underway.
PRD Alliance Questions Peña Nieto’s Victory: Although officially declared the winner on Friday by the autonomous Instituto Federal Electoral (Federal Electoral Institute—IFE), Mexican President-elect Enrique Peña Nieto still faces criticism of fraud by second-place candidate Andrés Manuel López Obrador (AMLO) of the Partido de la Revolución Democrática (Party of the Democratic Revolution—PRD) . Ricardo Monreal, AMLO’s campaign manager, accused the PRI of vote-buying at a press conference this morning. In addition, tens of thousands of demonstrators claiming to belong to no political party protested over the weekend in Mexico City decrying the IFE result. Will the situation turn to a repeat of 2006? AQ Senior Editor Jason Marczak notes there’s a clear difference between the 2012 election and what happened six years ago: “With only a few hundred thousand votes separating López Obrador and Calderón in 2006, AMLO saw an opening for a recount through protests and pressure on a still fragile electoral process. But this time, in losing by about 3.5 million votes, AMLO will only serve to discredit his nationwide appeal by crying foul and once again being a sore loser.”
Updates on Lugo’s Ouster: The Organization of American States (OAS) is expected to release its report today on its fact-finding mission last week to Paraguay to investigate former Paraguayan President Fernando Lugo’s removal from office. The delegation was headed by OAS Secretary-General José Miguel Insulza. The U.S. has said it would wait for the OAS verdict to issue a formal statement on the legality of the ouster—a move that has drawn criticism. With Venezuelan Foreign Minister Nicolás Maduro reportedly endorsing a military coup to restore Fernando Lugo to power, the situation in Paraguay is still contentious and perhaps the OAS report will provide more clarity on the issue.
Peruvian Anti-Mining Protests Heat Up: After police clashed with protesters demonstrating against natural resource extraction in northwest Peru, the death toll has climbed to five. A state of emergency has been imposed in the Cajamarca region, and Peruvian President Ollanta Humala has come under fire for his administration’s handling of the demonstrations. Nevertheless, tensions are still high and this week could very likely see a new wave of protests. AQ Editor-in-Chief Christopher Sabatini, who is in Huaraz, Peru this week, notes, “President Humala will have to do something to address the protests, including trying to verify claims of pollution and improving overall access to social services in mining communities—while not appeasing some of the more extreme groups.”
Raúl Castro in Vietnam: After wrapping up a trip to China last week, Cuban President Raúl Castro arrived in Vietnam yesterday for a four-day official visit aimed to strengthen bilateral relations. This is Castro’s first visit to Vietnam as Cuba’s president, and he is scheduled to meet with Vietnamese Prime Minister Nguyen Tan Dung, Community Party General Secretary Nguyen Phu Trong and Vietnamese President Truong Tan Sang. Sabatini observes, “The purpose of the trip is twofold: First, to help Raúl and the group better understand the process of economic and limited political reform that has taken place in Vietnam as a model for Cuba—though the comparison is thin. But second, Cuba—in this and other efforts it has made—is trying to diversify its economic relations and lifeline beyond Venezuela.”
ASEAN, Latin America Deepen Commercial Ties: The third annual business forum between Latin American nations and ASEAN (Association of Southeast Asian Nations) members takes place today and tomorrow in Jakarta, Indonesia. The theme of the forum is: “Towards a Sustainable Future.” ASEAN is comprised of Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam. For more information on the forum, including programs, speakers, organizers, and partners, access its website.
Top stories this week are likely to include: G-20 economic summit in Los Cabos; Rio+20 conference on sustainable development in Rio de Janeiro; the hemisphere reacts to Obama’s immigration policy shift; South Korea’s president and China’s premier embark on separate Latin America tours; and Humala’s approval hits a new low.
G-20 Summit Kicks Off in Mexico: The annual global economic and financial summit known as the Group of Twenty, or G-20, takes place today and tomorrow in Los Cabos, Mexico, after having been preceded by the B-20 business summit. The G-20 is comprised of the European Union members and 19 other major economies; together, they represent 90 percent of the world’s GDP, 80 percent of worldwide commerce and two-thirds of the globe’s population. The world will pay close attention to any developments from the summit, given the fragility of the eurozone and the apparent slowdown in China, which has led to a growth deceleration in Brazil and other economies dependent on Chinese manufacturing. AQ Editor-in-Chief Christopher Sabatini posits, “President Felipe Calderón has promised a major breakthrough on the economic crisis that has the world on edge. But can the G-20 really affect the deeper structural and confidence issues facing the global economy?”
Rio+20 Hits the Ground Running: Although the United Nations Conference on Sustainable Development, or Rio+20, began last week, the high-level meetings take place from Wednesday through Friday after the G-20 concludes. Nearly 115 heads of state are expected to attend this environmental summit, which is the largest UN conference in history—with nearly 50,000 in attendance. However, U.S. President Barack Obama, British Prime Minister David Cameron and German Chancellor Angela Merkel will be noticeably absent. Will Rio+20 produce any tangible results? Notes Sabatini: “What was once considered the starting point of global discussions over environmental issues has unfortunately become just an anniversary. To inject this forum with the importance and urgency that is necessary to change the course of global environmental issues, the United States and other developed nations need to step up—this time for real.”
The Hemisphere Reacts to Obama Policy Shift: Friday’s surprise announcement from the U.S. Department of Homeland Security that the Obama administration will stop deporting young undocumented immigrants with no criminal records and who have completed some college education or military service sent shockwaves around the U.S. and beyond. While critics of the Obama administration, such as Arizona Governor Jan Brewer, derided the move as “backdoor amnesty,” the League of United Latin American Citizens (LULAC) praised the Obama administration for answering “the prayers of families across the nation by implementing a long-awaited change to the current immigration policy.” However, some in Latin America lament the timing of the directive. La Tribuna in Honduras believes that the policy shift “arrived late” for many Hondurans, with La Opinión concurring that the Obama plan came late for “many dreamers.” Says Sabatini: “While appreciated, it’s sad that it’s taken this long to get to an issue that should have been easy three years ago. Has the immigration debate sunk so low and political opportunism climbed so high that this is the most important pro-immigration piece of policy reform that can be passed today—and clearly for electoral reasons?” AQ Senior Editor Jason Marczak agrees: “The president’s executive action is a great moment for the 800,000 undocumented youth who grew up in the United States and will now be able to more fully contribute to our society. But why couldn’t this have been done in late 2010 when the DREAM Act was blocked in Congress? The beneficiaries of this policy could have been legally working without the fear of deportation for the last 18 months if action had been taken sooner.”
South Korean and Chinese Leaders to Visit Latin America: South Korean President Lee Myung-bak will attend the G-20 and Rio+20 conferences, and then depart afterward to Chile and Colombia later this week for bilateral visits. Further, Chinese Premier Wen Jiabao will pay official visits to Brazil, Uruguay, Argentina, and Chile, where he will meet with the presidents of those four countries and deliver a speech at the UN Economic Commission for Latin America and the Caribbean (ECLAC) secretariat in Santiago.
Humala’s Approval Rating Hits New Low: Peruvian President Ollanta Humala’s approval rating has hit its lowest mark since he took office in July 2011, according to a new poll from the Ipsos Apoyo firm published yesterday. His approval rating stands at 45 percent while his disapproval rating is 48 percent. This is likely due to his stance on pushing forward with mining projects and invoking the emergency law to quash protests in northern Peru. Can he turn the unpopular tide? Sabatini says that “President Humala has failed to articulate how his outsider campaign and alleged commitment to social inclusion is different from his predecessors. In the absence of a defined, structured party system, Peruvian presidents are hostage to the vicissitudes of popular opinion—and this can be very dangerous.”
Top stories this week are likely to include: proposed OAS human rights commission reform; OAS meeting underway in Bolivia; Pacific Alliance meeting on Wednesday; Peru-Chile relations; and no end in sight to the anti-mining protests in Peru.
OAS Human Rights Reform Considered: Organization of American States (OAS) member states such as Ecuador and Venezuela are calling for reforms to the Inter-American Commission on Human Rights (IACHR), the independent human rights organ of the regional body. Ecuadorian Foreign Minister Ricardo Patiño called for changes such as cutting funding for the OAS special rapporteur on press freedom, warning that the OAS “will disappear” otherwise, which earned the endorsement of Venezuela. Insulza has further called for renegotiation of the IACHR’s statute and procedures including allowing governments to decide how the IACHR monitors them. Last Friday, the Washington Post editorial board responded to these proposals, writing, “It’s not surprising that Venezuela and its allies would push for noxious initiatives, or that Mr. Insulza would serve as their frontman […] Canada and the United States… and their democratic allies should work to ensure that the Insulza proposals are rejected—and that the OAS is perserved as an institution committed to democracy and human rights.”
AQ Editor-in-Chief Christopher Sabatini concurs: “The reasoning behind the proposals that Insulza is bringing to the General Assembly is unclear. What is clear is that their effect would be to whittle away at much of the independent voice of the Commission—the most effective office in the OAS—and he’s doing it by making common cause with some suspect governments."
Developments at the OAS General Assembly: Representatives from the 35 OAS member states are in Cochabamba, Bolivia, from June 3 to 5 for the organization’s 42nd General Assembly. In addition to the IACHR reforms, other issues on the table include Bolivian President Evo Morales’ desire for forward movement in regard to his country’s lack of access to the Pacific Ocean, a longstanding dispute with Chile. Argentina’s leadership wishes to rally hemispheric consensus around its claim to the Falkland (Malvinas) Islands. OAS Secretary-General José Miguel Insulza briefed the assembly that Latin America is still far from achieving the UN’s Millennium Development Goals (MDGs). The UN has set 2015 as its target date for achievement of the MDGs. But expectations for concrete results are not high, notes Sabatini: "The OAS general assembly has become a theater for overreach and meaningless debate."
Peru Declares State of Emergency amid Mining Protests
The Peruvian government declared a state of emergency yesterday in the southeastern province of Espinar after a week of protests left at least two dead and 70 injured. Espinar residents are protesting a $1.5 billion expansion of the Tintaya copper mine, claiming that the mine’s Swiss owner Xstrata—the largest single mining investor in Peru—does not contribute enough to the local economy. Similar demonstrations took place last year in the province of Cajamarca, where residents protested the expansion of a gold mine.
Brazil Plans Five New Hydroelectric Dams
On May 25, Valor Econômico reported that the Brazilian government is forging ahead with plans to construct five hydroelectric dams in the Tapajos River basin, a tributary of the Amazon. The publication said that environmental studies are underway and bidding for operators will begin next year. Belo Monte—one of the country’s largest hydroelectric construction projects also located in the Amazon basin—encountered numerous obstacles to construction, including lawsuits and worker strikes.
Dilma Announces Changes to Polemical Forest Code
On May 25, Brazilian President Dilma Rousseff issued a number of alterations to the new version of the Forest Code, a legal framework for forest preservation in Brazil. She made 12 line-item vetoes and 32 modifications, most notably nixing amnesty for large-scale illegal deforesters who cleared land before 2008. The law now returns to Congress, where it won’t likely be discussed until after Brazil hosts the UN Rio+20 environmental conference in June.
Read more about the Forest Code in an AS/COA News Analysis on environmental issues in Brazil.
Brazil, Venezuela Rank High in Software Piracy
Four Latin American countries—Argentina, Brazil, Mexico, and Venezuela—make the top 20 in the Business Software Alliance’s annual report on software piracy. Brazil comes out on top (and fifth overall) in terms of value of pirated software at $2.8 billion. But Venezuela leads the pack with the highest rate of pirated software—88 percent.
Venezuela Targets Civilian Aircraft in Drug Fight
The Venezuelan Congress passed legislation May 23 permitting the country’s air force to shoot down aircraft suspected of carrying illegal drugs. Though the government believes the law will help Venezuela in its fight against international organized crime groups, InsightCrime believes “a policy advocating the use of force against civilian aircraft carries risk.”
Poll Shows Narrower Lead for Chávez
A recent survey by Venezuelan polling firm Varianzas puts opposition candidate Henrique Capriles Radonski within five points of his competitor, President Hugo Chávez. The current president leads with 50.7 percent of likely votes while Capriles has 45.5 percent, the poll found. However, 53.3 percent of respondents said they believed Chávez would win in October, compared with 42.4 percent for Capriles.
Peru’s government declared a 30-day state of emergency in the southern Andean province of Espinar yesterday after clashes between anti-mining protesters and police officers. The state of emergency suspends a number of civil liberties, including the right to freedom of assembly. It also grants local police officers responsibility over public order.
Protestors have been demonstrating against the Tinaya copper mine in Espinar, near Cuzco, since last week, blocking highway access to the mine and halting production. Violence escalated last weekend, resulting in the deaths of two civilian protestors and the injury of 46 police officers on Sunday. An additional 30 police officers were injured on Monday. Interior Minister Wilver Calle, who announced the deaths yesterday, did not explain how they occurred other than to say that police were forced to open fire in self-defense.
Protestors claim that operation of the Tinaya mine is polluting two local rivers and damaging the environment. They also say the mine has not contributed sufficiently to the local economy, and are demanding that the mine owner, Xtrata, increase the amount of royalties it provides the local government to 30 percent, from 3 percent. Xtrata, a Swiss-based company and the world’s fourth-largest copper producer, has denied the pollution allegations.
This is not the first time President Ollanta Humala has resorted to declaring a state of emergency to end anti-mining protests. Last December, his government issued a state of emergency in the northern province of Cajamarca in response to protests against the $4.8 billion Conga gold mining project. That project, owned largely by U.S.-based Newmont Mining Co., has been suspended pending further negotiations over the protection of highland water sources.
Top stories this week are likely to include: Hugo Chávez post-radiation therapy; Michel Martelly begins his second year as president; Dominicans head to the polls; Peru minus two ministers; and Brazil creates a new social program.
Chávez Ends Cancer Treatment: Venezuelan President Hugo Chávez returned from Cuba on Friday claiming that he had ended his radiation therapy session in Havana “in a successful manner.” This appears to be the first full week in the past several weeks where Chávez governs the country while on its soil. Despite his repeated absences, the latest poll by Datanálisis reports that Chávez returns home with a 17 percentage point advantage over opposition candidate Henrique Capriles Radonski ahead of the October presidential election. Now the question is whether Chávez is truly recovered; the recently-formed Council of the State casts some doubt. AQ Editor-in-Chief Christopher Sabatini points out, “Sure Chávez says he is in the clear, and we all hope he is. But President Chávez has said that before. Given the chronic lack of transparency of this regime, it’s impossible to know.”
Martelly in Second Year: Haitian President Michel Martelly was sworn in one year ago last Friday, and this is his first full week of the new presidential year. The Associated Press ranks his first year as one of “modest gains” that many in Haiti view with “guarded surprise.” Despite clashes with parliament, Martelly has overseen successes such as reduced tuition for schools, funded by a tax on international phone calls, as well as a steady recovery after the devastating January 2010 earthquake. But it has not been without challenges. According to AQ Senior Editor Jason Marczak, “A top priority in the next few months will be getting to the UN to devote all the resources necessary to control the cholera outbreak. This cannot be a piecemeal approach; it must be dealt with rapidly and comprehensively before more Haitians die.”
Elections in the Dominican Republic: Dominicans elect a new president on Sunday, May 20; the two leading candidates are Hipólito Mejia of the Partido de la Revolución Dominicana (Dominican Revolution Party—PRD) and Danilo Medina of the ruling Partido de la Liberación Dominicana (Dominican Liberation Party—PLD). President Leonel Fernández of the PLD is not running for re-election. Sabatini notes, “This election, and the Dominican Republic’s future, turns really on the ability of the PLD and the political system’s capacity generally to renew itself. The truth is: without broader leadership change across the parties, the political and economic miracle of the DR may be at risk—not now, but in the future.”
Peru and the Ministerial Gap: After last week’s resignation of the interior and defense ministers, Peruvian Prime Minister Oscar Valdés must quickly restore order to President Ollanta Humala’s cabinet. The ministers resigned after a failed operation against the Shining Path rebels killed at least nine soldiers, and they faced a congressional censure. This is not the first ministerial change; the entire cabinet was dissolved by former Prime Minister Salomón Lerner after Indigenous Peruvians protested against the controversial Conga mine. “Increasingly, we’re seeing a government that is shifting more in favor of investor rightism in large part as a recognition of the need of the state to generate revenue to support its social inclusion agenda,” observes Sabatini.
Brazil Combats Extreme Poverty: Brazilian President Dilma Rousseff announced a new social program to fight extreme childhood poverty yesterday. The program, Brasil Cariñoso (Caring Brazil), will spend $4 billion to create 6,000 new daycare units for children and an increased subsidy of the popular Bolsa Família program—and it will affect the most impoverished areas of Brazil, the north and northeast. Marczak says, “The very poor have yet to join in the Brazil miracle, but this newest program has the right ingredients for their young children to have access to many of the foundations needed for success. Once again, Brazil is an example for the region.”