In the wake of Brazilian President Dilma Rousseff officially postponing her October state visit to Washington on Tuesday, Brazil is planning to increase its online independence and bolster its cyber security in the coming months. The decision comes in response to leaked evidence that the U.S. National Security Agency (NSA) had spied on the Brazilian government and the Brazilian national oil company, Petrobras.
To lessen Brazilian’s vulnerability to spying, Dilma intends to store more online data domestically and rout web traffic away from U.S. servers. However, some experts warn that the new measures could lead to a balkanization of the Internet, threatening its current open, interconnected structure. Critics fear that Brazil’s cyber-isolationism could also embolden repressive regimes to control their citizens’ online access.
Ironically, Brazil is in the midst of scaling up its own surveillance system ahead of the 2014 World Cup. Launched in April, the Integrated Command and Control Center (CICC) will not spy on personal communications like the NSA did, but it will monitor all roads and public spaces through 560 camera across Rio de Janeiro. The CICC is also requesting permission from the federal aviation body to use drones for surveillance during the World Cup as they were used during the Confederations Cup in June.
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?
After much speculation, Argentine President Cristina Fernández de Kirchner once again proved she has the guts to move forward with a politically controversial government takeover. This time around Spanish oil company Repsol was the victim. In 2009, another Spanish company, Marsans, was forced to cede the Argentinean flagship airline to the government, and in 2008, $30 billion in private pension funds were nationalized.
Ms. Fernández announced a week ago that her government would expropriate 51 percent of YPF from Repsol, which would give the government control of the company. She cited insufficient investment resulting in energy scarcity as the reason for the takeover.
As with Aerolineas Argentinas' expropriation, the YPF takeover was popularly supported. The majority of Argentineans believe that the state should control strategic resources like oil. According to the consultancy Poliarquía, six out of every ten Argentines support the measure. This figure is lower than the 74 percent support rate reported by a government-friendly poll.
This public support, however, must not be confused with support of the government’s handling of energy policy. Indeed, according to polls, most Argentineans blame the government over YPF Repsol for dwindling hydrocarbon reserves. The public is aware how government price controls and fluctuating subsidies have distorted market forces and made necessary investments less attractive.