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  • HONDURAS: Corruption stalks presidential frontrunner

    Patrick de Courcy 14 October 2021 Hits: 6371

    The frontrunner in the Honduran presidential elections on 28 November, Nasry Asfura, is trying to fend off corruption allegations after his name cropped up in the Pandora Papers. Asfura, who is standing for the long-ruling right-wing Partido Nacional (PN), became the majority shareholder of an offshore company in Panama in 2007. Asfura insisted that everything was above board but he has been dogged by corruption allegations while serving as mayor of Tegucigalpa. Recent opinion polls suggest the presidential race is close enough that the disclosure could potentially impact the result of the elections.

    During a campaign rally in Choloma, in the north-western department of Cortés, on 4 October, Asfura promised to “create jobs and combat corruption”. Along with his ‘pro-family, pro-life’ mantra, this was the same message he delivered in the municipalities of El Paraíso, in the eponymous southern department, on 1 October, and Sabanagrande, in the neighbouring department of Francisco Morazán, the following day. What made it different, however, was the external circumstances.

    On the day of the Choloma rally, the International Consortium of Investigative Journalists (ICIR) released the Pandora Papers. The leaked data obtained by the ICIJ show that a Central American law firm, Alcogal, set up an offshore company in Panama in 2006 called Karlane Overseas SA, transferring all but one of the 10,000 shares to Asfura the following year. The Pandora Papers reports that: “Through a spokesperson, Asfura told ICIJ partners Centro Latinoamericano de Investigación Periodística (CLIP) and Contracorriente that he doesn’t own the offshore company and doesn’t hold offshore investments.”

    While campaigning this week Asfura claimed that his opponents were deliberately trying to tarnish his image for electoral purposes. Asfura maintained that he had sought sources of financing in Panama to buy land in Honduras back in 2007 when he was serving as a councillor for the Central District (the municipality of Tegucigalpa and Comayagüela), a position filled by political parties rather than elected, and was not managing public funds.

    Asfura’s response leaves some questions unanswered. He said the deal did not happen so he left the company. He did not explain, however, why the company remained active until 2018, when he was mayor of Tegucigalpa. In October 2020 the public prosecutor’s office sought to bring Asfura to trial for embezzlement of municipal funds and money laundering. The head of its specialised prosecutor’s unit against corruption (Uferco), Luis Javier Santos, confidently asserted at the time that it had amassed “irrefutable and overwhelming evidence” that more than L$28m (US$1.2m) had been embezzled from municipal funds. The supreme court, however, was unswayed and threw out the case in June this year.

    The Pandora disclosure suggests that the supreme court might have been precipitate and that the offshore company could have provided the means for laundering embezzled funds. It has also given Asfura’s rivals some ammunition in the closing weeks of the campaign ahead of the presidential elections. An electoral survey released by CID-Gallup on 10 September showed that Asfura is the favourite to win election with 21% support, followed by Salvador Nasralla, who formed the Partido Anticorrupción (PAC) in 2017, and Xiomara Castro, the candidate of the left-wing Libertad y Refundación (Libre), on 18% apiece [WR-21-37]. As if sensing an opportunity to defeat the PN, Nasralla and Castro announced on 13 October that they would stand on a joint ticket as in 2017 but this time with Castro running for president.

    Corruption

    “Every day I become more convinced that in Honduras we live in a state of barbarism,” the head of the specialised prosecutor’s unit against corruption (Uferco), Luis Javier Santos, tweeted this week. Santos was referring to reforms to the penal code and money-laundering law approved by the legislative assembly on 7 October. Santos said the reforms would seriously restrict efforts by prosecutors to investigate corruption by “imposing banking secrecy”. He said the deputies that approved the reforms are “people that are being investigated or are implicated in corruption looking to protect themselves and their relatives”.

  • CARIBBEAN POINTERS

    Patrick de Courcy 03 February 2022 Hits: 2092

    *** JAMAICA MURDERS UP 10%. According to the Jamaica Constabulary Force (JCF), there were 1,463 murders in Jamaica in 2021, up 10% on the 2020 figure. However, according to the JCF, all other major crimes were down in 2021. Shootings were down 2%; there were 25% less reported rape cases; and robberies were down 24%.

    Jamaica’s outgoing Chief of the Defence Staff, Lieutenant General Rocky Meade, said on 16 January: “We consistently have murders in the mid-to-high forties per 100,000. That’s not normal whatever measure we want to use. Whether we want to use the measure of the Latin American and Caribbean region which is the highest in the world, averaging about 16 per 100,000, or whether we’re ambitious enough to use the world norm which is about six to seven per 100,000, or even if we want to set a higher norm than the highest region in the world, over 40 per 100,000 is not normal.”

    Meade made his remarks during a media presentation announcing the creation of a seventh Zone of Special Operations (Zoso) where security forces are given temporary additional powers of search, arrest, and detention.

     

    *** ARCO NORTE DELAY. On 21 January, Brazil’s President Jair Bolsonaro had to cut short a visit to Suriname and Guyana before he reached Guyana due to the death of his mother. On 20 January, while in Suriname, Bolsonaro held a trilateral meeting with Suriname’s President Chanrikapersad Santokhi and Guyana’s President Irfaan Ali to discuss energy cooperation, including hopes for Brazil’s state-owned oil company Petrobras to participate in Suriname’s oil and gas sector. Discussions on the Arco Norte project, however, could not be completed.

    Among the items on the agenda were a 1,500km road from Brazil’s Northern Roraima state to a new deepwater port in Guyana and a new bridge to link Guyana and Suriname. Also on the agenda were electric transmission and fibre optic links. The new infrastructure is intended to involve US$800m in projects, partly funded through private investment. The new deepwater port in Guyana is a US$200m project. Ahead of the meeting, Guyana’s Foreign Secretary Robert Persaud said: “The deepwater harbour is a major part of our transformation agenda, and we want Brazil to be part of it. Guyana offers the shortest and quickest access to the Atlantic for significant parts of northern Brazil.”

    The Arco Norte energy links are intended to include a 3,000 megawatt power interconnection linking Guyana, French Guiana, Suriname, and Brazil.
    A new gas pipeline will also be central to Arco Norte and is intended to be the catalyst for several new industrial and petrochemical projects, including a gas-fired aluminium smelter to process Guyana’s bauxite ore.

    Ahead of the 20 January meeting, Suriname’s President Santokhi said: “The joint operation on gas exploitation will generate cheap energy and will eventually be exporting gas to Brazil.” Guyana’s President Ali said the plan was to “leverage our energy resources for energy security and to potentiate growth and development opportunities in the northern flank of South America”.

     

    *** BELIZE OPPOSITION LEADER STEPS DOWN. The leader of Belize’s main opposition United Democratic Party (UDP), Patrick Faber, resigned with effect from 31 January following a complaint by his fiancé, Dr Shanika Arnold, to the Domestic Violence Unit. According to the police, the complaint was “one of a domestic nature where she is alleging that Mr Faber has caused damage to her laptop and had also assaulted her as she was about to leave their home…” Later, Arnold took to social media to say she had formally withdrawn the complaint, which had been the result of a misunderstanding, but by then the damage had been done.

  • VENEZUELA: Fading hopes for dialogue process

    Patrick de Courcy 19 January 2023 Hits: 4988

    Faint hopes for a breakthrough in the standoff between President Nicolás Maduro’s government and the political opposition are fading, with the government’s chief negotiator, Jorge Rodríguez, warning on 17 January that “there is no reason to continue” with dialogue unless a previous agreement on the release of some US$3bn in frozen assets is upheld. Rodríguez’s remarks came one day after an arrest warrant was issued for the leading opposition figure Julio Borges, in a move likely to further undermine any future talks on political and judicial reform.

    There had been some cause for optimism late last year, after the government and opposition reached an agreement on 26 November to request that around US$3bn in frozen Venezuelan assets be released to address the country’s humanitarian crisis [WR-22-48]. Eight weeks on, no funds have been released, nor have there been any official statements from the United Nations agencies which the government said would oversee the relief programme.

    “If they don’t follow through with returning to the Venezuelan people the US$3.2bn that has been stolen… and which we had agreed would be returned, then there is no reason to continue negotiating with people who fail to keep their word,” Rodríguez said on 17 January.

    Rodríguez’s warning followed the issuing of an arrest warrant on 16 January for Borges, who had played a leading role in Juan Guaidó’s parallel government, which was dissolved by the opposition late last year [WR-23-01]. Attorney General Tarek William Saab said that new evidence had emerged which implicates Borges in a failed uprising in April 2019, in which Guaidó falsely claimed to have won the backing of the armed forces in an attempt to trigger a wider military rebellion [WR-19-17]. Saab said that “in light of the appearance of new incriminating evidence… an arrest warrant was issued against [Borges] for the crimes of treason, conspiracy and association.”

    Borges currently lives in Bogotá, having claimed asylum in Colombia in 2018, so he faces no real risk of arrest. Nevertheless, the charges will further weaken hopes of a breakthrough in negotiations, which were supposed to have been resumed in December for talks on political and judicial reform.

    New foreign minister

    President Maduro has announced the appointment of Yván Gil Pinto as the new foreign minister. He replaces Carlos Faria, who Maduro said would be moved to an unspecified new post. It is a big promotion for Gil, who had been serving as deputy minister for Europe.

    Protests

    Protests by public sector workers demanding higher pay have been ongoing in Caracas since 10 January and are now spreading around the country. Simultaneous protests were held in cities across Venezuela on 16 January, when the NGO Observatorio Venezolano de Conflictividad Social recorded at least 50 demonstrations.

    Vice President Delcy Rodríguez dismissed those protests as part of “a destabilisation plan” which she claimed was “directed by the US, and which aims to wrongly weaponise workers in our country”.

  • TRACKING TRENDS

    Abbi Dicker 13 February 2025 Hits: 2499

    MEXICO | Industrial production up in 2024. On 11 February Mexico’s national statistics institute (Inegi) released its latest monthly indicator of industrial activity (Imai), showing that industrial production grew by 0.2% in 2024 compared with 2023, despite a drop of 4.3% in the mining sector.

    The annual increase can be attributed to a rise in construction (2.7%), utilities (electricity generation and transmission, provision of water and gas – 1.6%), and manufacturing (0.3%). The growth comes after industrial production fell by 2.7% in December 2024.

     

    MEXICO | Airport investment. Mexican airport operator Grupo Aeroportuario del Pacífico (GAP) has announced a “historic” M$52bn (US$2.53bn) investment between 2025-2029. This investment forms part of GAP’s wider 2025-2029 master development plan and will go towards the expansion and modernisation of the twelve airports that GAP operates, which include those in Jalisco state capital Guadalajara; the border city of Tijuana, Baja California state; and the popular tourist destinations of Los Cabos in Baja California Sur and Puerto Vallarta in Jalisco. A sum of M$22bn will be used to build a new airport terminal in Guadalajara, while the GAP plans on expanding the current terminal in Puerto Vallarta by 134%, among other actions.

  • RASTREANDO TENDENCIAS

    LatinNews 30 January 2012 Hits: 886

    COSTA RICA | Crecen las exportaciones. En el año 2011, las exportaciones se incrementaron un 12,5%, comparadas con el año anterior. La ministra de comercio exterior, Anabel González, dijo que se rompió el record histórico para las exportaciones, y que se excedieron las metas del gobierno de US$779m. El sector industrial, que incluye al fabricante de microprocesadores Intel, representó 74,5% del total. El sector agrícola llegó a 23,1% del total; y la pesca, 2,4%. El principal mercado exportador fue EU (38,6%) seguido por Holanda (7,1%) y China (6,9%).

    CUBA | Empujando por 3m de turistas. Cuba ha recibido 2,72m de turistas extranjeros en el 2011, un nuevo record y un incremento del 7,3% sobre el 2010. Más de 1m de turistas provinieron de Canadá. El gobierno ha fijado la meta de superar la barrera de los 3m en el 2012.

    EL SALVADOR | Las remesas se recuperan. Las remesas provenientes de expatriados salvadoreños se han incrementado un 6,4% en el 2011 con respecto al año anterior, llegando a US$3,64mm, de acuerdo con el banco central. Las remesas representaron el 16% del PBI de El Salvador. Sin embargo, no alcanzaron para cubrir el déficit comercial, que llegó a US$4,37mm en los primeros 11 meses del 2011, subiendo 20,9% sobre igual periodo en el 2010.

    REGION | Crece el comercio bajo Cafta-DR. La Comisión del Tratado de Libre Comercio Centroamérica-República Dominicana-EU (Cafta-DR) se reunió recientemente en Miami para revisar el progreso hecho bajo el Tratado de Libre Comercio multilateral. De acuerdo con una declaración difundida posteriormente por la Comisión, el comercio entre EU, los socios centroamericanos y la República Dominicana llegó a US$54mm en los primeros once meses del 2011, subiendo un 23% sobre igual periodo en el 2010. Mientras tanto, el comercio intra-regional entre países de Centroamérica y la República Dominicana alcanzó US$3,8mm en la primera mitad del 2011, un incremento de 18% sobre igual periodo del año anterior. El tratado Cafta-DR fue firmado en el año 2004 y entró en vigencia para EU y El Salvador, Guatemala, Honduras, Nicaragua durante el 2006; para la República Dominicana, el 1 de marzo del 2007; y para Costa Rica el 1 de enero del 2009.

    PANAMA | Levantan la huelga en el Canal. El gobierno del Presidente Ricardo Martinelli ha concretado un acuerdo entre los trabajadores de la construcción empleados en el proyecto de expansión del Canal de Panamá de US$5,2mm, que montaron una huelga de seis días en demanda de mejores salarios y pagos atrasados, y el Grupo Unidos por el Canal (GUPC), el consorcio a cargo de llevar adelante las obras. El GUPC, que está liderado por Sacyr Vallehermoso de España, tiene un contrato de US$3,12mm para construir una nueva serie de esclusas –el contrato más grande bajo el plan de expansión que comenzó en el 2007 y que debe ser completado para octubre del 2014. Bajo el acuerdo, que puso fin a la huelga (que no afectó el tránsito por el Canal, a través del cual pasa 5% del comercio global), los trabajadores verán sus salarios por hora incrementados un 15%, de US$2,90 a US$3,34; los trabajadores calificados recibirán un 12,5% de aumento, de US$3,52 a US$3,96. Los sindicatos habían pedido inicialmente un estipendio por hora de US$4,90 y US$7,10, respectivamente. El GUPC también acordó cumplir con las demandas de los trabajadores de cubrir los pagos atrasados de horas extras y de trabajos durante los fines de semana; la compañía culpó el atraso a errores cometidos por quienes manejan los libros.

  • Beijing's fear of leftist backlash

    LatinNews 15 February 2012 Hits: 381

    In our 25 January issue, we reported that China's elite is engaged in deepening struggle over reform.  The treatment of Chongqing party chief Bo Xilai, following what seems to have been an attempt on 6 February to gain asylum in the US by his right-hand man Wang Lijun, has thrown further light on the intensity of the struggle.

    As we argued in our 25 January issue, a combination of unusual circumstances has been fuelling an increasingly fierce, but only partially visible, debate in China about the direction of reform.  These include the 14 January election in Taiwan, the 20th anniversary of the famous “southern tour” undertaken in 1992 by China’s late paramount leader Deng Xiaoping, and the Communist Party of China (CCP) leadership changes due this autumn.

    The tone of the debate has been set by a recent report from the prestigious Tsinghua University which argued that vested interests are blocking further progress in China, which was now stuck in a “transition trap”. 

    The report, which clearly set off something of an internal power struggle, was authored by Professor Sun Liping, who was at one time an advisor to Xi Jinping, currently vice-president and the heir apparent to President Hu Jintao.  The report warns, in particular, about the malign influence of vested interests which are holding back further progress.  The vested interests that are holding back reform were defined at a conference in Beijing on 8 January by Wang Yukai, a professor at the Chinese Academy of Governance, as being government officials, monopoly enterprises, resource industries, and the real estate sector.

    As we reported on 25 January, the charge for renewed reform is being led by the province of Guangdong, whose provincial party chief, Wang Yang, is a protégé of President Hu Jintao.  Wang said on 4 January that reform had to focus on “breaking the constraints of the existing pattern of vested interests”.  Guangdong’s new governor Zhu Xiaodan told his first press briefing on 17 January: “The biggest obstacle to deepening the reforms is the pattern of vested interests.”

    On 18 January, Premier Wen Jiabao also appeared to side with the reformers when he said in Doha on 18 January: “I have repeatedly stressed reform, not just economic reform but also political reform, because it is most important for the government to maintain close links with the people, listen to their views and voices, and improve the work of government in order to develop the economy, improve people’s livelihoods, and bring them benefits.”

    But the sensitivity of the debate has been revealed once more by the Wang Lijun episode.  On 6 February, Wang – who is deputy-mayor and former police chief of the south-western municipality of Chongqing, entered the US consulate in Chengdu and spent the day there in an apparent attempt to win asylum in the US.  The timing was particularly sensitive just ahead of Vice-President Xi Jinping’s departure for a much anticipated trip to the US one week later.  So concerned were the authorities about the Wang affair that they treated it as top secret and imposed a news blackout, even if they were unable to contain internet-based discussions of the incident.

    One of the more interesting aspects of the affair has been the way in which it has impacted on Bo Xilai, whose media appearances appear to have been restricted by the authorities.  According to some sources, local media were told that they needed permission from Beijing to report on Bo’s activities.  An 11 February meeting between Bo and Canada’s Prime Minister Stephen Harper was given only rudimentary coverage.

    Bo is important as he is seen as one of the leaders of the leftist factions within the Communist Party, and Maoist websites such as Utopia and Maoflag refer approvingly to the “Chongqing model”.  They have also been blaming “liberal anti-communist forces” for trying to smear Wang Lijun.  A recent article on Utopia warned against undermining Bo.  It said if he was sidelined “a red movement will soon arise and completely shatter the liberal anti-communist corrupt forces”.

    In the meantime, no one knows where heir apparent Xi Jinping really stands.  He was born into the CCP’s elite, being the son of a revolutionary hero, but he suffered internal exile after his father fell from grace in 1962 during the Cultural Revolution, spending seven years experiencing the extreme poverty of Liangjiahe.  It was probably his Liangjiahe experience that lay behind his 2009 outburst during a tour of Latin America when he complained about foreigners “with full bellies who have nothing better to do than try to point fingers at our country”. 

    The only thing that can be said for certain about Xi is that he has the ability to appeal across the spectrum of politics.  The left will approve of his reputation for not being on the take, his Liangjiahe experience, and his uncharacteristic outburst in Latin America against meddling foreigners.  But the business community also seems reassured.

    However, the danger for Xi is that he will inherit a system in which rampant factionalism will be combined with increasing popular unrest.  The fear in Beijing is that as the power-struggle intensifies ahead of the 18th Party congress this autumn, it could spill onto the streets.  According to Hong Kong sources, on 11 February there were messages circulating on the internet calling for a mass demonstration the following day in Chongqing in support of Bo.  There is no sign that any such demonstration occurred – or at least not on any great scale – but it is a warning of what may be to come and of what Xi may be set to inherit.

  • RASTREANDO TENDENCIAS

    LatinNews 21 May 2012 Hits: 682

    EL SALVADOR | Niegan a España pedido de extradición. La corte suprema de justicia de El Salvador (CSJ) ha rehusado el requerimiento de España para la extradición de 13 ex oficiales militares en relación al asesinato de seis sacerdotes jesuitas (cinco de los cuales eran españoles), el ama de llaves y su hija por una escuadra de la muerte del gobierno en 1989, durante la guerra civil de 1980-1992. En mayo de 2011, un juez español, Eloy Velasco Núñez, acusó a los oficiales bajo la doctrina de la jurisdicción militar, apoyada por las cortes españolas, que sostiene que algunos delitos son considerados tan serios que pueden ser procesados fuera del país donde fueron cometidos. Anunciada el 8 de mayo, la decisión de la CSJ, que representa un gran revés en términos de esfuerzos para reparar la inmunidad del pasado, está basada en el hecho que la ley salvadoreña prohíbe la extradición de sus ciudadanos antes del 2000; como los asesinatos tuvieron lugar en 1989, los acusados no pueden ser extraditados.

    REGION | IED. Los flujos de inversión extranjera directa (IED) hacia Centroamérica se incrementaron en 36% en 2011, a un total de US$8,246mm, de acuerdo con el más reciente informe sobre IED en América Latina de la Comisión Económica de la ONU para América Latina y El Caribe (Cepal), difundido el 3 de mayo. Panamá fue el más grande receptor de IED, atrayendo US%2,790mm (+19% sobre 2010); seguido por Costa Rica (US$2,104mm, +44%); Honduras (US$1,014mm, +27%); Guatemala (US$985m, +22%); Nicaragua (US$968m, +91%); y El Salvador (US$386m, +231%).

  • China's "new strategic energy channel"

    LatinNews 23 January 2013 Hits: 654

    The Burma-China oil and natural gas pipelines, referred to by the official Xinhua news agency as “China’s new strategic energy channels”, are on target to be completed by 30 May.  According to Gao Jianguo, head of the pipeline project for the China National Petroleum Corporation (CNPC), the oil and gas pipelines will be operating in early June barring any unforeseen problems.  The Burmese section has been finished and those sections within Chinese territory will be completed this month, after which the pipelines will undergo pressure tests.

    The 1,100km oil and gas pipelines will carry oil and natural gas from the port of Kyaukpyu on Burma’s west coast to China’s Yunnan Province.  The oil pipeline will have a capacity of 22m tonnes per annum, with the natural gas pipeline designed to carry 12bn cubic metres of gas per annum.  The key strategic advantage is that it enables oil from the Middle East to bypass the Strait of Malacca and other vulnerable sea lanes.  It will also increase the supply of energy to China’s underdeveloped southwest.

    On 20 January, China and Burma held a Strategic Security Consultation between senior officers of their respective armed forces.  One of the key topics was how to stop the conflict with Kachin rebels near China’s south-western border.  A ceasefire between the Kachin Independence Army (KIA) and the Burmese government broke down in 2011, and fighting escalated during December following a government offensive.  Some Burmese artillery shells landed on Chinese territory on 30 December and again on 17 January, prompting Beijing to demand an “immediate ceasefire”.  The new oil and gas link passes just south of the area of fighting.

    The Kachin issue is particularly sensitive to China as the KIA gets support from China’s ethnic Kachins (known as Jingpo), who have a population of about 132,000.

  • Judicial scandal deepens in Colombia

    LatinNews 29 October 2013 Hits: 1536

    Development: On 28 October Colombia’s justice minister, Alfonso Gómez Méndez, announced a meeting with the country’s senior top judges to analyse cases of corruption involving the judiciary.

    Significance: Gómez’s actions come in response to the growing scandal involving members of the country’s judiciary, which has already prompted President Juan Manuel Santos to demand the judicial authorities to act. The announcement comes as new corruption allegations are being levelled against Supreme Court Magistrate Henry Villarraga, who is now being investigated for allegedly taking a bribe to aide an army colonel who is being investigated for a ‘false positive’ case (in which security forces carry out extrajudicial killings of civilians and present them as guerrillas killed in combat). The timing of the allegations against Villarraga is extremely delicate, it follows the 23 October decision by the constitutional court to strike down the proposed reform of the country’s military justice system advocated by President Santos.

    Key points:

    • The allegations against Villarraga broke over the weekend, after the local nightly TV newscast, Noticias Uno, broadcast recordings of conversations that allegedly took place over the course of a year between Villarraga and Colonel Róbinson Javier González. González is currently on remand in military barracks for the homicides of two peasant farmers which took place in 2007. In the wiretaps, the two men discuss the possible transfer of González’s case from the civil court system to a military court – where he could expect greater leniency, in exchange for C$400m (US$2,100). Significantly, the military justice reform presented by the Santos government proposed the transfer of all criminal cases involving members of the armed forces (except those involving human rights violations) from civil to military courts.
    • In an interview with local daily El Tiempo, Villarraga, who was the only judge to vote in favour of transferring González's case to a military court, denied receiving any money and questioned whether the voice in the recordings was his. Villarraga also suggested that the recordings had been edited to set him up. He did not deny a meeting with González in his office last year, although he said that this meeting was in line with his duties as a “public servant”.
    • Villarraga is also facing public scrutiny over a June 2013 court ruling that benefited another ‘false positives’ suspect, Colonel Carlos Alfonso Suárez. A Medellín human rights prosecutor maintains that Villarraga disrupted procedure by ruling that Suárez should be tried by a military court, while his subordinates should stand trial in civil courts.
  • POINTERS

    LatinNews 31 October 2014 Hits: 941

    MEXICO-US | Tamaulipas mayor & police accused. Another incident of purported local police and municipal authority involvement in a kidnapping and murder has been claimed, this time in the border state of Tamaulipas and involving three Mexican Americans. On 28 October Tamaulipas state authorities announced the discovery of four charred bodies near Matamoros. Three of these were identified the following day as the US-born children of Raquel Alvarado, a resident of Progreso, Texas, who had gone missing after having travelled to visit their father in Tamaulipas.

    After having identified her children, Alvarado claimed that eyewitnesses told her that the youths had been seized by members of the Grupo Hércules, a special unit of the Matamoros municipal police, near the town of El Control. She accused Matamoros mayor Leticia Salazar, who recently created Grupo Hércules to improve security in the municipality, of being responsible for the deaths. She said, ‘I know that that woman took them; I’ve been told. A man that works for her told me she has our cars.’ According to Alvarado, the US Federal Bureau of Investigation (FBI) is investigating the deaths of her children.

    MEXICO | Iguala fallout hits Guerrero’s governor. The governor of Guerrero, Ángel Aguirre Rivero, finally ceded on 23 October to pressure that had been mounting since the killing and abduction of students in Iguala, and has formally requested a leave of absence in order to ‘improve the political climate’ and facilitate the conduct of the investigations that have already spread to a number of municipalities believed to have come under control of organised crime. Some protesters have been suggesting that Aguirre must be considered a suspect in the investigations since he had been instrumental in the nomination of the now fugitive José Luis Abarca as mayor of Iguala. Both are fairly recent converts to the left-of-centre Partido de la Revolución Democrática (PRD).

    Governor Aguirre has disavowed any knowledge of the events in Iguala and the collusion between Abarca and the Guerreros Unidos gang. He initially blamed the episode on Abarca’s refusal to place the municipal police under ‘unified’ statewide command (a step all other municipalities had taken, but which does not appear to have had the effect of erasing organised crime influence). More recently he has blamed President Enrique Peña Nieto for not having a coherent security strategy for the country as a whole. Aguirre has not, however, given in to demands that he resign.

    MEXICO-US | More deportations. An analysis by the Pew Research Center of US deportations of ‘unauthorised’ immigrants shows that while these have increased overall to a record 438,421 in FY 2013, the number of Mexican deportees has continued to fall.

    The study points out that the rise coincides with stalled growth of the unauthorised immigrant population in the US and a rise in the number of apprehensions at the US-Mexico border. ‘The number of Mexican immigrants apprehended at the border and the interior’, it says, ‘has continued to decline from a high of 1.1m in 2005 to 425,000 in 2013.

    It notes that ‘most of the growth in the number of deported immigrants has come from those deported for reasons other than a criminal conviction. In 2013, 240,000 deported immigrants did not have a previous criminal conviction, up from 218,000 in 2012. Meanwhile, the number of deportations of those with a criminal conviction has stalled at around 200,000 for the past two fiscal years.’

    Also noted is that ‘the record number of deportations comes even as 580,946 young unauthorised immigrants have received relief from deportation and work permits since 2012 under a policy called Deferred Action for Childhood Arrivals.’

    • “An analysis by the Pew Research Center of US deportations of ‘unauthorised’ immigrants shows that while these have increased overall to a record 438,421 in FY 2013, the number of Mexican deportees has continued to fall.”
  • CHILE: Can Piñera capitalise on split Left?

    LatinNews 18 May 2017 Hits: 464

    Former president Sebastián Piñera (2010-2014), the frontrunner in November’s presidential race, has mounting problems. At first blush Piñera seems to be in a strong position. For the first time since Chile’s return to democracy in 1990, the left-wing coalition, Nueva Mayoría in its present incarnation, will present two separate candidates in presidential elections. But Piñera has been unable to shake accusations of conflict of interest. Chile’s combative student movements staged protests outside the Santiago offices of Bancard, a holding company owned by Piñera and his family, this week. Piñera also faced criticism from politicians within the three constituent parties of his right-wing Chile Vamos coalition of repeating the “same mistakes” of his first government after naming a technocrat-heavy campaign team.

    Carolina Goic, of the centre-left Democracia Cristiana (DC), officially registered her candidacy on 13 May to compete directly in November’s first round rather than primary elections in July, when she would have faced Alejandro Guillier, the consensus candidate of the four other parties within Nueva Mayoría. Goic’s decision not to participate in primary elections, which would constitute little more than a coronation of Guillier given the support he enjoys from the other four coalition partners, confirms the growing distance between DC and the Nueva Mayoría, which could transform Chile’s electoral map.

    By competing directly in November’s general elections, Goic will take votes from Guillier. How many depends upon whether she can lay claim to the political centre-ground, pushing Piñera to the right, through the definition of a plan of governance distinct from that of Guillier. At present Goic only enjoys between 2% and 4% of the vote, according to opinion polls, barely a third of the support of Beatriz Sánchez of the nascent coalition of small leftist parties Frente Amplio (FA), although she might start to pick up now her candidacy has been defined.

    Piñera should be revelling in the Left’s travails but he is engrossed in problems of his own. He was interrogated by the attorney general’s office for three hours on 5 May in relation to misuse of privileged information in relation to the purchase of shares by Bancard in a Peruvian fishing company, Exalmar, between November 2010 and February 2011 while he was head of state. In January 2014 the International Court of Justice (ICJ) favoured Peru in a long-running dispute with Chile over offshore territorial limits under which Peru gained title to a large area rich in fishing.

    University student and secondary school organisations, Confederación de Estudiantes de Chile (Confech) and Coordinadora Nacionales de Estudiantes Secundarios (Cones), significant pressure groups in Chile in recent years, staged a protest outside Bancard offices on 15 May. Not only did the students serve notice that they were “not prepared to move backwards” on education reform but they also insisted that Piñera was not fit to take office (see sidebar).

    On the same day, Piñera presented a 500-strong campaign team (heading 20 separate commissions), comprising no fewer than 12 of his former cabinet ministers, including Felipe Larraín, Cristián Larroulet, and Hernán De Solminhac, and myriad technocrats. This raised fears among leaders of the three Chile Vamos member parties – Unión Demócrata Independiente (UDI), Renovacion Nacional (RN) and Partido Regionalista Independiente (PRI) – that history could be about to repeat itself. These fears were encapsulated by the PRI president, Alejandra Bravo: “Technocracy alone is what prevented continuity in the last government of Sebastián Piñera and this cannot be allowed to happen again.”

    • Conflicts of interest

    “A presidential campaign is an adventure; we have to have our feet firmly on the ground and our eyes set on the future. Ask for whom we’re governing,” Sebastián Piñera said while naming his campaign team. Chile’s student organisations argue that Piñera should not be governing at all. They accuse him of failing to separate his role as president from his private interests, amassing a fortune through privileged information. They cite Piñera’s recent declaration of assets, totalling US$600m, barely 20% of his US$2.7bn fortune according to an estimate by Forbes magazine.

  • PARAGUAY: Abdo Benítez faces corruption questions

    LatinNews 11 July 2019 Hits: 3750

    Just how serious is President Mario Abdo Benítez’s commitment to combating corruption? This has become the main question being asked in political circles in Paraguay almost a year into his five-year presidential term. Abdo Benítez promised to be relentless in his fight against corruption in government “whoever may fall” when he assumed office in August 2018. But while significant anti-corruption efforts have been taken by his administration and the president himself has rejected moves by congress to push back against this, Abdo Benítez’s failure to replace officials in his government accused of corruption and to criticise recent controversial court rulings have raised concerns that his commitment is more passive than active.

    President Abdo Benítez’s professed commitment to tackle corruption was on show last week when, on 3 July, he vetoed a bill approved by the national congress that would have made it harder to lift the immunity from prosecution enjoyed by national legislators. The bill was an attempt by congress to revive the so-called ‘ley de autoblindaje’ legislation which required that in order for a legislator to lose immunity a qualified two-thirds majority of his colleagues must vote in favour of this rather than a simple majority, as suggested by the constitution. The ley de autoblindaje was repealed in September last year following a protest campaign staged by local civil-society groups demanding that sitting national legislators accused of corruption be prosecuted and not allowed to be shielded by their colleagues in congress.

    Abdo Benítez publicly backed the protest campaign, insisting that anyone accused of corruption should be properly investigated, and he even celebrated the repeal of the ley de autoblindaje [WR-18-36]. So, his decision to veto the new version of the ley de autoblindaje approved by congress was consistent. In a short statement explaining his decision, Abdo Benítez said that his veto is based on constitutional grounds, as the constitution stipulates that in any instance in which it does not specify that a qualified majority is needed to approve a congressional measure (as is the case with the lifting of immunity) a simple majority is sufficient. The veto has been hailed as a victory for anti-impunity efforts and attempts to bring corrupt legislators to justice.

    However, in contrast to Abdo Benítez’s clear stance against the ley de autoblindaje is his failure to call on his finance minister to step down and clear up the corruption allegations levelled against him. Finance Minister Benigno López has been implicated in a corruption scandal centred around the public contracts awarded by the social security institute (IPS). López was IPS director between 2014 and 2018 and is accused of awarding inflated contracts to firms owned by individuals with whom he had personal connections. This is currently the subject of an official investigation. López, who denies any wrongdoing, has faced public pressure to resign and has become the new target for anti-corruption campaigners.

    Abdo Benítez has so far stood by his minister, although he has said that his suspected involvement in the irregularities at IPS must be investigated. Abdo Benítez’s refusal to ask López to step down and fully collaborate with the investigations has raised suspicions that he could be protecting López, who happens to be the president’s half-brother.

    The Auténticos Abogados del Paraguay (AAP) grouping of local lawyers has accused Abdo Benítez of influence trafficking for allegedly shielding López and has submitted a formal request calling for congress to subject him to impeachment proceedings for dereliction of duty. It is far from clear if this will prosper in congress, but it puts Abdo Benítez under pressure and gives legislators a recourse that they can use to gain leverage over the president on some political issues, potentially including the ley de autoblindaje and other anti-corruption initiatives.

    • Quintana

    Adding to the general dissatisfaction with the government’s efforts to crack down on corruption was the 8 July decision by a local judge to release on bail Ulises Quintana, a national deputy from the ruling Asociación Nacional Republicana-Partido Colorado (ANR-PC), who was placed in preventative detention in September 2018 over drug-trafficking charges after his immunity from prosecution was lifted by congress. Quintana, a member of President Abdo Benítez’s Colorado Añetete party faction, is still under investigation for his suspected involvement in an international drug-trafficking ring and prosecutors have insinuated that his release was secured thanks to his political influence, expressing concerns that he could now use this to obstruct the investigation.

  • EL SALVADOR: Gang truce reignites familiar concerns

    LatinNews 30 July 2020 Hits: 3921

    The recent arrest of former defence minister General David Munguía Payés over his alleged involvement in arranging a truce between El Salvador’s two main gangs, Mara Salvatrucha (MS-13) and Barrio 18 (M-18), in 2012, which dramatically reduced homicides while it lasted, has again seen links between top officials and gangs subjected to scrutiny. It comes as suspicions persist regarding dealings between gangs and senior officials under the current administration led by President Nayib Bukele and scepticism regarding its claims of success vis-à-vis public security.

    On 23 July, the attorney general’s office (FGR) announced the arrest of Munguía Payés on suspicion of unlawful association, arbitrary acts, and dereliction of duty in relation to the truce forged under the left-wing Frente Farabundo Martí para la Liberación Nacional (FMLN) government led by Mauricio Funes (2009-2014) which resulted in a 41% fall in homicides before unravelling in 2014. An arrest warrant was also issued for Funes for similar crimes. Funes is currently living in Nicaragua where he was granted political asylum after being charged with crimes including illicit enrichment in 2016 for which he was convicted in 2017. In an interview with TV programme Teleprensa 33 broadcast on 24 July, Attorney General Rául Melara was unequivocal that “negotiations with gangs should not be permitted, institutions should not be risked, and the lives of Salvadoreans should not be sacrificed for a pact with gangs and for political return.”

    Munguía Payés is not the first former official to face criminal action in relation to the truce. In October 2018 a court sentenced former guerrilla Raúl Mijango, the most visible face of the truce, to 13 years and four months in jail for extortion after finding him guilty of helping the two gangs to extort companies [WR-18-41]. Meanwhile, the issue of gangs and their dealings with politicians has since continued to make headlines - not least after a mass trial of MS-13 members late last year [WR-19-42] implicated the FMLN and the other main opposition party, Alianza Republicana Nacionalista (Arena), in illegal vote-buying, providing President Bukele with further ammunition to attack the opposition.

    Yet, as noted at the time, Bukele’s own record is open to criticism. In 2018 the investigative media publication El Faro claimed that when Bukele was mayor of San Salvador (2015-2018), the municipality negotiated with the gangs and offered them concessions to clear the way for some of its investment projects. With the government continuing to boast of record declines in homicides due to its security initiative ‘Plan Control Territorial’ (a result which also owes to the strict lockdown imposed in response to the coronavirus pandemic), a study by Brussels-based think-tank International Crisis Group (ICG) released on 8 July has cast doubt on the government’s claims. The report is explicit that the “collapsing homicide rate may stem not only from the government’s public security policies, but also from the gangs’ own decision to curb bloodshed, possibly due to a fragile non-aggression deal with authorities”. It states that the precise reasons for the nationwide fall in homicides “are hard to pin down” and “specific local falls in murder rates do not correspond precisely to those areas where the plan has been implemented”.

    • Homicides continue to plummet

    On 23 July, Security Minister Rogelio Rivas said that in mid 2019 (when President Bukele took office), the homicide rate in El Salvador was 52 per 100,000 inhabitants and that it had fallen to 36 per 100,000 by the end of 2019 as a result of ‘Plan Control Territorial’, which includes both repressive elements and a softer preventative approach. Rivas said that this year he expected the country would close with a homicide rate of 18-21 per 100,000 inhabitants.

    The ICG report concludes instead that “in large part, gangs appear to have themselves decided to scale back their use of lethal violence”, adding that “unassailable control over communities, declining gang rivalry and increasingly autonomous gang leadership outside jails may explain this decision more than the Territorial Control Plan”. It also cites “numerous analysts and local activists” who ascribe the gangs’ move to “an informal understanding between them and the authorities, who have allegedly ordered security forces to dial back their clashes with these groups”.

  • COLOMBIA: Duque doubles down on security policy

    LatinNews 20 August 2020 Hits: 3654

    After three violent attacks in the space of a week claimed the lives of at least 17 people, the United Nations (UN) peace mission in Colombia warned that the number of massacres recorded in the country so far this year – defined as the killing of three or more people in a single attack – had reached 34. In a statement, the mission called on the Colombian government to take action to stop this violence. Its proposed solution – “to advance and deepen the comprehensive implementation of the [2016] peace agreement” – was familiar and straightforward, but it is likely to fall on deaf ears once again.

    The killing of nine people on 15 August by (as yet unidentified) armed assailants in the municipality of Samaniego in the southern department of Nariño drew particular attention. Nariño’s governor, Jhon Rojas, noted that 20 murders had been reported in the department in the past two months, and his diagnosis of the cause of this increasing violence matched the UN’s as he called for improved implementation of the peace accord, and claimed that the increasingly militarised response of the government led by President Iván Duque was contributing to the escalating insecurity.

    Duque instead responded by ordering an increased security presence in Nariño, instructing the army and police to launch an investigation “to find the perpetrators of this crime”. The government was already facing criticism after five Afro-Colombian teenagers were killed on 11 August in the city of Cali, Valle del Cauca department, and a further attack in Nariño against an indigenous Awá community on 18 August claimed at least three more lives. This same day, the Organization of American States (OAS) similarly called on the government to stop the violence, while opposition senators raised the possibility of a motion of censure against the defence minister, Carlos Holmes Trujillo.

    Duque is eager to be seen to be taking action, but many in Colombia and abroad maintain that choosing confrontation over conciliation as a strategy against the country’s armed groups is only contributing to such violence. There is little indication that the government is prepared to heed these criticisms; Duque has seized the opportunity presented by the coronavirus (Covid-19) pandemic (as quarantine restrictions limit capacity for protest) to double down on his security agenda [WR-20-30], and the unveiling on 17 August of a US-funded initiative heralded as the “new Plan Colombia” suggested that this trend is set to continue.

    ‘Colombia Crece’ was portrayed by Duque - and by the delegation of US officials visiting Bogotá - primarily as an economic development initiative, pledging US$5bn of investment for Colombia’s rural areas over the next three years. Critics of the government’s security policy have often emphasised development funding as an effective alternative to militarisation of rural areas, but the reference to Plan Colombia, and the make-up of the US delegation (led by National Security Advisor Robert O’Brien and the commander of the US Southern Command, Admiral Craig Faller), prompted concerns that Colombia Crece will instead just be more of the same.

    • Plan Colombia

    US National Security Advisor Robert O’Brien described Colombia Crece as “a new Plan Colombia”, in reference to the US foreign aid initiative that ran between 2000 and 2015, providing support for Colombia’s highly militarised efforts to tackle drug trafficking organisations and guerrilla groups within the country. Both President Duque and O’Brien emphasised the central role of rural development and investment in Colombia Crece – linked to the region-wide ‘América Crece’ investment strategy – but Duque’s comment highlighting “the importance of combining security and justice efforts with the arrival of investment” contributed to concerns that a return to a full-scale war on drugs could be on the horizon.

    Uribe resigns

    Plan Colombia had played a crucial role in facilitating former president Álvaro Uribe’s ‘democratic security policy’ (the precursor to Duque’s current security strategy), and it is clear that Uribe is still thought highly of in Washington, despite recently being put under house arrest on charges of witness manipulation and procedural fraud [WR-20-31]; US Vice President Mike Pence raised eyebrows last week by describing Uribe as a “hero”, and calling for him to be released until his trial has taken place.

    Duque has also been quick to come to the defence of his mentor, still a key figure in the ruling right-wing Centro Democrático (CD), and he has faced criticism for responding to his arrest by raising the possibility of judicial reform. Uribe echoed this sentiment on 18 August, calling for “justice reform that will depoliticise the system”, before announcing his resignation from Colombia’s senate, on the basis that his house arrest “nullifies any expectation of being able to return”. This is a blow for Duque; Uribe plays little formal role in his government, but his role in unifying the party in the senate will be missed.

    Duque may also have more personal motives for seeking judicial reform, after the national electoral council (CNE) last week opened an investigation into alleged illegal financing of his 2018 presidential campaign. These accusations are linked to the vote-buying scandal that caused problems for Duque earlier in the year [WR-20-10], following allegations made by former senator Aída Merlano, and the emergence of audio evidence implicating officials within the CD party. While the investigation into Duque’s awareness of vote-buying is yet to make much progress, the CNE’s focus on campaign financing creates another angle of attack in relation to a suspicious US$300,000 donation by Venezuelan businessman Oswaldo Cisneros.

  • GUATEMALA: The cost of inadequate nutrition

    LatinNews 17 November 2020 Hits: 598

    A new report by the United Nations (UN) World Food Programme (WFP) and UN Economic Commission for Latin America and the Caribbean (Eclac) is warning that inadequate nutrition in Guatemala risks “turning back years of development gains”. According to the report, which was produced in collaboration with the Guatemala-based institute of nutrition of Central America and Panama (Incap) and the Guatemalan government, data from 2018 shows the country lost US$12bn to undernutrition, overweight, and obesity that year, equal to 16.3% of GDP.

    Released on 25 September, the report shows that 42.4% of Guatemalans over the age of 20 are considered overweight, while 20.8% of Guatemalans in the same age category are obese according to the latest (2014/2015) statistics. This has led to an increase in illnesses and diseases such as type 2 diabetes and high blood pressure. According to 2018 statistics, some 950,000 Guatemalans considered overweight or obese suffer from type 2 diabetes, while over 1.3m suffer from high blood pressure. The report also estimates that an additional 5% of Guatemalans suffer from other health problems related to being overweight or obese, particularly various types of cancer. The effect on children and young people is a particular worry, with Guatemala’s health ministry listing close to 20,000 cases of acute malnutrition in children under five (see sidebar). The impacts of a continuous high obesity rate include an increased mortality rate due to obesity, an increased premature mortality rate, a drop in the size of the labour force as individuals are no longer able to work due to health complications related to obesity, increased health care costs for families, and a drop in education levels among other things.

    Costs

    The report estimates the total of cost of malnutrition in 2018 to be US$12.03bn - a figure which it breaks down as costs to the health care system; cost to the education system; and loss in productivity. It puts the cost to health services at US$4.10bn (of which US$3.72bn is from treating conditions related to being overweight and obesity and US$381m from treating undernourishment). It puts the cost to education at US$32m. According to the report some 100,000 students had to repeat a grade, at a cost of US$1,000 - the bulk of which is footed by the state, leaving families to pay around US$300. The report also puts the cost of malnutrition in terms of lost productivity at US$7.9bn of which US$7.8bn is due to undernourishment and US$0.1bn to overweight and obesity. It breaks down the US$7.9bn into premature mortality (US$2.1bn); lower educational levels (US$5.66bn) and absenteeism (US0.92bn).

    • The impact of coronavirus

    The renewed focus on the impact of inadequate nutrition comes as concerns are rising about the food security situation due to the impact of the coronavirus (Covid-19) pandemic. Even before the pandemic, an emergency food security assessment by the WFP found that 2.3m Guatemalans were food insecure. However, a new WFP remote assessment found that 4m people have a poor food intake, of which 2.8m - in a country of 17m- are severely food insecure. An August food security outlook update from the Famine Early Warning Systems Network (FEWS NET), a leading provider of early warning and analysis on food insecurity, notes that after five months of restrictions marked by declining incomes and rising food prices, there has been an impact on the food security in both rural and urban poor and very poor households. It states that as of 15 August, the health ministry information system has reported 19,945 cumulative cases of acute malnutrition and that this is the year with the highest number of cases, 77% higher than last year. 

    • Child malnutrition

    A June outlook by FEWS NET notes that during epidemiological week 24 (7–13 June) the government reported a cumulative total of 15,998 cases of acute malnutrition in children aged under five years, more than twice the figure for the same epidemiological week in 2019 (7,542 cases).

  • BELIZE: PUP consolidates gains, but difficulties ahead

    LatinNews 27 April 2021 Hits: 1261

    Belize’s People’s United Party (PUP) has consolidated its victory in the November 2020 general election with a resounding victory in the municipal elections held in March. On 11 November 2020, the centre-right United Democratic Party (UDP) was beaten in a landslide 26-5 seat general election victory for the PUP thus ending a 12-year stretch in power for the UDP. On 3 March, the PUP followed this up by winning 65 out of 67 seats being contested in the municipal elections and winning all the mayoral seats except in the twin towns of Santa Elena and San Ignacio. Voter turnout was low, but this was nevertheless an important endorsement of Prime Minister John Briceño at a time of extreme economic difficulty due to the coronavirus (Covid-19) pandemic. It is hard to see how he will retain such levels of popularity given the bitter medicine now being recommended for the country by the International Monetary Fund (IMF).

    Just over a week after the municipal elections, on 12 March, the IMF issued its Concluding Statement following its 2020 Article IV mission to Belize. It lays out the stark difficulties facing the Briceño government. As the IMF notes, tourism accounts for 40% of the country’s GDP, and the pandemic led to a 72% decline in tourist arrivals in 2020 and an overall economic contraction of 14.1%.

    The debt position has become particularly difficult. The primary deficit in FY2019/20 of 1.4% of GDP rocketed to 8.3% of GDP in FY2020/21, with public debt rising from 98% of GDP in 2019 to 126% of GDP in 2020. Tourism is expected to remain subdued in 2021, with GDP projected to grow by just 1.9%. The IMF is expecting a stronger recovery in 2022, of 6.4%, but with a return to average growth levels of 2% over the medium-term. Public debt is expected to rise to 133% of GDP in 2021, falling gradually to 128% by 2031.

    Among the recommendations put forward by the IMF are policies that would get public debt down to 60% of GDP by 2031, less than half the level currently projected. This, the IMF says, can be achieved by introducing a Fiscal Responsibility Law (FRL) “with explicit fiscal rules”. The IMF says: “To strike a balance between the need to support those affected by the pandemic in the near term and enable a large public debt reduction over the medium term, the authorities should gradually increase the primary balance to 3 percent of GDP in FY2024/25 and keep at that level until FY2031/32, which relative to the baseline scenario, implies a fiscal consolidation of 3.9 percentage points of GDP over the next four years.”

    This fiscal adjustment, the IMF argues will need adjustments on both expenditure and revenue collection. It says: “With regard to expenditures, the authorities are appropriately focusing on reducing the wage bill and purchases of goods and services, both of which account for a larger share of GDP in Belize than in peer countries.” On revenues, the IMF says: “the authorities should focus on reducing the number of zero-rated items of the general sales tax (GST), taxing them at the standard GST rate instead, and raising the standard GST rate to a level in line with peer countries.”

    Other recommendations from the IMF, including tackling “long-standing structural barriers to growth and diversification” and “reducing crime to promote entrepreneurship”, are less contentious. Nevertheless, there is little doubt that the central thrust of the IMF’s proposals will be politically difficult for the PUP, and it would seem unlikely that the party will be able to sustain the levels of electoral popularity displayed in November 2020 and again in March 2021 if it follows this path. The alternative, though, of trying to live with unsustainably high levels of public debt, would seem to be equally unpalatable.

  • PERU: Castillo’s lead narrows further

    LatinNews 20 May 2021 Hits: 3830

    Pedro Castillo, the far-left candidate standing for Perú Libre in Peru’s second-round presidential election on 6 June, has seen his once-striking lead over Keiko Fujimori of the right-wing Fuerza Popular (FP) evaporate over the last two weeks. As the candidates prepare for a second debate on 30 May, both have sought to assuage fears over their candidacies, taking the unusual step of attending a joint ceremony to pledge their commitment to democratic principles.

    Castillo’s large lead over Fujimori in the polls has melted like Andean ice in the summer. The latest Ipsos poll, published on 16 May, gave Castillo 51.1% of the predicted vote share to Fujimori’s 48.9% – a lead within the poll’s margin of error, and a far cry from the 11 percentage point advantage that Castillo enjoyed after Ipsos first polled the two candidates against each other in mid-April. The latest survey showed Fujimori taking the lead in the crucial northern regions – the second most populated part of the country after Lima – as well as holding her advantage in the capital, while Castillo maintained his grip over Peru’s south, centre, and east.

    Key to this realignment has been the shift in the ‘anti-vote’, which is likely to be the determining factor in this race between two unpopular candidates. The proportion of respondents who said they would never vote for Fujimori has declined from 55% a month ago to 46%, while those who said they would never vote for Castillo increased from 33% to 42% over the same period. At the same time, Fujimori has emerged as the most popular candidate among women and young people, while Castillo retains his advantage among men and older voters.

    With less than three weeks remaining ahead of the vote, the televised debate between the two candidates in Arequipa on 30 May could tip the race in either direction. The pair’s raucous first debate, an unofficial event in the main square of Castillo’s hometown of Chota on 1 May, was a barbed exchange that was heavy on personal attacks. An IEP poll found that 41% of viewers considered Fujimori the winner of that encounter, compared to 37% for Castillo.

    The second debate, organised by the national electoral council (JNE), will be a more orthodox affair and will focus on five themes: reforms of the state; economic recovery and poverty reduction; healthcare and the coronavirus pandemic; infrastructure, regional development, and decentralisation; and security.

    Both candidates have sought to allay widely held fears over their plans for the country. On 17 May they appeared at a joint event to pledge their commitment to democratic principles, vowing to leave office without seeking re-election at the end of the next presidential term in 2026, to respect the freedom of the press, and to alter the constitution “only through legal and constitutional mechanisms”.

    In light of these concerns, Castillo has toned down his rhetoric in the face of repeated claims that he intends to impose a communist regime. He released a modified manifesto on 17 May stating that the “progressive but profound change” he proposes would be “truly democratic, guided by the search for rights and opportunities for all”. Meanwhile, Fujimori has struggled to escape the spectre of her father, the authoritarian former president Alberto Fujimori (1990-2000), denying that he presided over forced sterilisations and insisting that these were part of a “family planning” initiative. The latest Ipsos poll suggests that she cannot shake off the dictatorial connotations of her surname, with 57% of respondents believing that Alberto Fujimori calls the shots in FP.

    Surging poverty

    Whoever wins the election will face a daunting challenge in reversing the massive surge in poverty that has occurred during the coronavirus (Covid-19) pandemic. According to figures presented on 14 May by Peru’s national statistics institute (Inei), poverty increased by 9.9% in 2020, affecting 30.1% of the population. Inei reported that 45.7% of people in rural areas live in poverty (an increase of 11.4 percentage points on the previous year), and that 26% of urban residents are now poor – an increase of 4.9 points. Extreme poverty rose by 2.2 points to afflict 5.1% of the total population. Of those, 13.7% lived in the countryside and 2.9% in urban areas.

  • COLOMBIA: The left senses its moment

    Patrick de Courcy 14 January 2022 Hits: 2495

    Date: Legislative elections on 13 March. Presidential election on 29 May. If no presidential candidate secures an absolute majority of the valid votes, a run-off will be held on 19 June.

    Type: Presidential and legislative elections.

    Main contenders: Gustavo Petro (Colombia Humana), Óscar Iván Zuluaga (Centro Democrático), Sergio Fajardo (Compromiso Ciudadano).

    Mounting discontent

    President Iván Duque, who is not permitted to run for re-election due to constitutional term limits, has badly dragged down the electoral prospects of the ruling right-wing Centro Democrático (CD) during his last year in office. Duque has been a divisive leader since his victory in 2018, but polarisation has now given way to deep unpopularity – this reached record levels in June 2021, when a Datexco poll put his disapproval rating at 79%, with just 20% of respondents considering that he was doing a good job. An Invamer poll published on 5 December showed him struggling to recoup the lost public support, giving him an approval rating of 25% and a disapproval rating of 69%.

    Key to this mounting discontent was the wave of social unrest that swept Colombia between April and July. Initial protests against an unpopular tax reform ballooned into expressions of generalised contempt for the government after Duque oversaw a violent crackdown on demonstrators. The protests morphed into a condemnation of police brutality, and then to general frustration at the deep inequalities etched across Colombian society. Those social divisions have become more entrenched during the coronavirus (Covid-19) pandemic, and could be a deciding factor in the elections.

    Beyond the intensified focus on inequality due to the protests, the usual issues will dominate campaigning. Crime and violence will rank highly among voter concerns, with CD likely to tout its security credentials by highlighting victories such as the October capture of Colombia’s most-wanted drug trafficker, Dairo Antonio Úsuga (‘Otoniel’), and the fact that 2020 saw the country’s lowest homicide rate since 1974.

    In terms of Colombia’s internal conflict, however, the picture is far less rosy. The Duque administration’s objections to the amnesty provisions laid out in the 2016 peace agreement struck with the Fuerzas Armadas Revolucionarias de Colombia (Farc) guerrilla group have put a serious strain on Colombia’s fragile peace, with continued assassinations of social leaders and massacres taking place in rural areas, particularly in the east, west, and south-west. The election will pit security hardliners on the right, who argue that a militarised response is the only viable solution to internal conflict, against more progressive candidates calling for increased state investment in Colombia’s hinterlands.  

    The continuity candidate – Óscar Iván Zuluaga (Centro Democrático)

    Against a backdrop of discontent, CD candidate Óscar Iván Zuluaga will face a tough struggle to keep the party in the presidential palace. He benefits from being well-known by the Colombian electorate, having reached the run-off of the 2014 presidential election against Juan Manuel Santos (2010-2018) and served as finance minister under former president Álvaro Uribe (2002-2010).

    Uribe casts a long shadow over the Colombian right, and, as with Duque’s campaign in 2018, ‘Uribismo’ is dominating Zuluaga’s election bid, with the pushing of hardline security proposals, warnings about the consequences of a leftist candidate gaining power, and a degree of scepticism regarding the benefits of the 2016 peace agreement. Zuluaga made clear his intention to fit the Uribista mould when he accepted CD’s nomination on 22 November, pledging to deliver “Democratic Security 2.0” – a reference to Uribe’s flagship security policy, which turned the tide against the Farc’s insurgency but which also saw systematic human rights violations.

    Zuluaga has repeatedly said that he will respect the terms of the peace agreement if elected, although when questioned on its details he has spoken in favour of making “adjustments”. He has called for former Farc guerrillas accused of serious crimes to serve prison terms before taking up congressional seats, and for the Farc to increase its financial reparations to the conflict’s victims. These positions are likely to resonate with conservative voters, but will arouse fears of further backpedalling on the agreement if Zuluaga wins office.

    In terms of business, Zuluaga has presented himself as the market-friendly candidate, highlighting his stewardship of the Colombian economy during the 2008 recession and emphasising his firm commitment to the country’s debt anchor, which limits government borrowing relative to income. He can be expected to amplify these business credentials if he reaches the election’s second round, in which he would likely face a leftist candidate.

    Regarding the war on drugs, Zuluaga follows Duque’s example, calling for the resumption of aerial fumigation of coca crops with glyphosate. This practice was banned by Colombia’s constitutional court in 2017 on account of the risks it poses to the environment and public health, although in April the Duque administration set out plans to mitigate these harmful effects, raising the possibility of fumigation being resumed in the near future.

    These proposals will play well with right-of-centre voters, but an uphill slog remains for Zuluaga even to make the run-off, with just 12.7% of respondents in the December Invamer poll saying they would vote for him.

    The frontrunner – Gustavo Petro (Colombia Humana)

    By contrast, left-wing Petro is the clear frontrunner. The Invamer poll put him on 42.1% of voting intentions, giving him a 23-percentage-point lead over his closest rival, the centre-left Sergio Fajardo (see below). Petro is in a significantly stronger position than he was in 2018, when he narrowly pipped Fajardo to the second round before losing to Duque by 53.9%-41.8%. An outlier in that election, Petro this time is in a very strong position to make the run-off again, and the key question is who he would face.

    Colombia is not a natural homeland for left-wingers such as Petro. The country’s half-century internal conflict with the Farc has instilled a long-running suspicion of the radical left among voters, and centrist and right-wing parties have held a vice-like grip on national politics throughout Colombia’s history. Petro is well set to go a step further than his relative success in 2018, when he won more votes than any leftist candidate in history. His plan to bolster the peace agreement with the Farc and to oversee a transition to a more redistributive economic model resonated with many young and lower-income Colombians in 2018. However, Petro’s unexpected popularity was not enough to counterbalance Duque’s claims that Petro was a “Castro-Chavista” intent on introducing radical expropriations and anti-capitalist measures.

    Four years later, the public mood may have shifted. Where the 2021 protest movement harmed CD, it has lifted Petro. His calls for a more equitable economy have found greater traction in a year marked by economic hardship and anger at Colombia’s ruling political class. Having supported protesters’ demands for increased employment and training opportunities, a higher minimum wage, and a more redistributive tax model, Petro is hoping to portray himself as the leader of a broad social movement.

    Nonetheless, Petro’s open support for the protesters could backfire. CD has attempted to link Petro with the violence and major economic disruption caused by the unrest, which alarmed many conservative and centrist voters. Candidates from the centre-left may also benefit from Petro’s identification with protesters, and will be able to present themselves as broadly in line with their demands whilst running less risk of alienating better-off Colombians.

    Petro has argued for the modernisation and industrialisation of agriculture, stating in November that this would “imply a certain degree of protectionism”. He has called for increased taxes on unproductive private lands, and said that such a policy would boost agricultural production and employment. This would probably prove more palatable to voters than expropriations – frequently pointed to by right-wing opponents as the key danger of a Petro presidency.

    Nonetheless, Petro’s calls for a progressive tax reform could be weaponised in similar fashion by the right, and he remains the candidate that incites the most hostile response from Colombia’s establishment.

    The centrists

    A cluster of centrist hopefuls are seeking to plot a course between the polarising candidacies of Zuluaga and Petro. Six of these are grouped under the Coalición Centro Esperanza banner, and have agreed to hold primaries to present a single candidate in the May first round.

    Those primaries will be held on 13 March (the same day as the legislative elections), and will pit against each other Sergio Fajardo (Compromiso Ciudadano; centre-left), Alejandro Gaviria (Colombia Tiene Futuro; centre), Juan Manuel Galán (Nuevo Liberalismo; centre-left), Carlos Andrés Amaya (Somos Verde Esperanza; environmentalist), Jorge Enrique Robledo (Dignidad; centre-left), and Juan Fernando Cristo (Movimiento en Marcha; centrist). Of these, former Antioquia governor and Medellín mayor Fajardo currently appears the most likely nominee, generally beating his centrist rivals in the polls and enjoying strong name-recognition.

    These candidates are pinning their hopes on the fact that many voters jaded with CD will not be eager to rush into the arms of Petro. With Petro enjoying such a strong lead in the polls, the winner of the centrist primary will aim to pip Zuluaga into the second round and then present themselves as a market-friendly yet socially progressive alternative to Petro. Even a centre-left candidate such as Fajardo could perform well with Colombia’s right-wing voters if Zuluaga failed to make the second round, given the right’s portrayal of Petro as an existential threat to Colombia’s economic model.

    Congressional elections

    The March legislative elections may prove as consequential as the presidential contest. Due to the large number of parties competing, none of the presidential candidates are likely to enjoy an outright majority in congress. The right may be particularly hampered – discontent with CD will likely lead to seat losses, whilst left-wing and centrist parties may improve their standing.

    In the likely event that complex coalition negotiations ensue, a tacking to the centre may well be required if either Petro or Zuluaga wins office in order to avoid legislative gridlock. The risk of friction between the executive and legislative branches would be particularly high in the event of a Petro presidency, given his ambitions to lead Colombia in a dramatically different direction to his predecessors.

    Rising inequality

    The World Bank (WB) released a report on 27 October detailing the impact of the pandemic on inequality in Colombia, warning that wealth disparities have been both deepened and entrenched since March 2020. The report notes that Colombia’s Gini coefficient (a measure of inequality in which 0 indicates total equality and 1 equals maximal inequality) rose from 0.53 in 2019 to 0.54 in 2020, equating to a further 3.6m people living in poverty. Extreme poverty increased by 5.5 percentage points over the same period, with an additional 2.8m people unable to meet their basic needs compared with the pre-pandemic era. The report warns that this heightened inequality could persist in the long term, with the closure of schools exacerbating disparities that will continue into adulthood for many children.

    ELN negotiations

    Since the demobilisation of the Farc in 2016, Colombia’s primary insurgent threat has been from the Ejército de Liberación Nacional (ELN) guerrilla group. President Duque initially continued negotiations with the group that were launched under his predecessor, but broke these off following a January 2019 attack on a police academy in Bogotá. Since then, CD has pushed a hardline militarised response to the guerrilla group, and has shown little willingness to return to the negotiating table. Meanwhile, left-of-centre candidates Petro and Fajardo have called for a resumption of dialogue. Petro is vulnerable to accusations that he would be too soft on the ELN, with the government alleging that the guerrilla group hijacked the protest movement he championed last year.

    Rodolfo Hernández – the wildcard

    Rodolfo Hernández, a populist independent candidate, has been making savvy use of social media that has seen his anti-corruption message gain traction with younger voters. Hernández styles himself as belonging to neither the right nor the left, having both voiced support for Uribe and said that he would vote for Petro if his own election bid fails in the first round. Whilst he remains an outsider, Hernández’s approval rating increased by 70% between October and December to 17%, according to the pollster Invamer. Although Hernández continues to struggle with name recognition in comparison to Petro, Zuluaga, and Fajardo, his extensive social media campaigning and populist style could see him emerge as a contender for the second round.

  • SURINAME: Fatalities put spotlight on illegal mining

    Patrick de Courcy 30 November 2023 Hits: 1862

    The national flag flew at half-mast over government buildings, schools, and ships in port in Suriname on 24 and 25 November to mourn the loss of life of at least 15 illegal miners buried in a massive landslide days earlier while digging for gold. The deaths have intensified demands for regulation of Suriname’s mining sector, although Vice President Ronnie Brunswijk acknowledged that this issue had been long-pending and previously postponed because of a lack of resources.

    “We are shocked and offer our condolences to the relatives,” President Chandrikapersad Santokhi said during a short, televised speech in response to the worst-recorded mining accident in Suriname’s history, which occurred on 20 November. Celebrations of Independence Day on 25 November were subsequently adjusted as a result of the two days of national mourning and it was a more muted affair compared with previous years.

    Groups of illegal miners have been attracted to the concession area of Rosebel Gold Mines (RGM) subsidiary, which is legally operated by the Chinese company Zijin Mining, by the recent discovery of an open vein of gold. Zijin bought RGM, which is one of the largest in-production gold mines in South America, in February this year from Canadian company Iamgold Corporation. It is located in Matawai in the Brokopondo district in the north-east of the country, around 80km south of Paramaribo.

    The security forces evicted a large number of illegal artisanal gold miners, known as porknokkers in Suriname, at the behest of Zijin in recent weeks, but within a few days the same group had resettled in the area. Vice President Brunswijk urged the remaining porknokkers to abandon the area immediately or face being “forcibly evicted”, but he acknowledged the difficulty in persuading them: “when people see gold they stop thinking; they look for the gold without considering that they could lose their lives”.

    RGM issued a statement expressing deep sadness at the news of “the tragic incident that occurred within our concession area in which a number of porknokkers became trapped in a collapsed illegal tunnel”, extending its “sincere condolences…to the families of those affected by this fatal incident”. It said that it had deployed all necessary equipment and safety and medical personnel in the rescue operation. A rescue team also came in from neighbouring French Guiana to assist in the rescue and recovery operations.

    RGM went on to underline that it had been in discussions with the Surinamese authorities “for quite some time, during which we have repeatedly emphasized the dangers of illegal gold mining”. It said that “shortly after” it had held another meeting with Brunswijk “to find appropriate measures and effective solutions to this problem” on 20 November “we received disturbing news about the collapse of a tunnel in the Matawai area [which] serves as a poignant reminder of the inherent risks and dangers of participating in irresponsible gold mining”.

    RGM added that illegal gold mining not only “endangers the lives of those involved, but also poses significant environmental risks and undermines the sustainable development goals we are collectively trying to achieve”. It concluded by saying that RGM would cooperate with the authorities “to address this problem and take measures to prevent further tragedies”.

    There have been clashes in recent years between the security guards of mining companies and resident Maroons who claim the land as their own. Iamgold Corp, RGM’s previous owner, dismissed over 300 contractors in 2019 after a clash between illegal miners and police, and suffered a blockade later that year. The Matawai are one of the six major Maroon groups in Suriname, descendants of escaped African slaves who established their own settlements and went on to sign a peace treaty in 1762 with the Dutch colonial power.

    The Maroon Broederschap en Eenheid in de Politiek (BEP) party said the tragedy “once again brings us face to face with the facts that the government of Suriname must recognise the land rights of the indigenous and tribal peoples”. It also said the fatalities had reopened the debate on the regulation of the mining sector, adding that the organisation of the small-scale gold sector would “finally become a reality sooner rather than later”.

    For his part, Brunswijk, the leader of the Maroon nationalist Algemene Bevrijdings-en Ontwikkelingspartij (Abop) party, stressed that “it is essential to establish order in the gold sector”. He said that such discussions had been ongoing for the last three years but claimed that they had been held up by a lack of resources. “Everything has been mapped out, but we do not have the resources to organise it,” Brunswijk said in what sounded like an indirect appeal to RGM to demonstrate its commitment to working with local authorities to resolve the problem by digging into its pockets.

    Financial support

    The Surinamese government announced on 27 November that it would suspend value added tax (VAT) on utilities and cooking gas for six months, after consultations with trade unions, in order to assist people struggling with the cost-of-living crisis. President Chandrikapersad Santokhi expressed his confidence that the economy would have recovered by June 2024 “and we will be able to give more”. Separately, the government said it would increase the tax-free threshold from SRD7,500 (US$200) to SRD9,000 from 1 January 2024.

  • TRACKING TRENDS

    Abbi Dicker 06 March 2025 Hits: 2548

    COSTA RICA | IMF hails fall in public debt. In a statement dated 28 February following an Article IV consultation mission to Costa Rica, the International Monetary Fund (IMF) highlighted that, since 2021, Costa Rica’s public debt has fallen by eight percentage points of GDP to below 60% of GDP. The IMF also hailed the fact that Costa Rica’s GDP growth has averaged “above” 5% since 2021. It attributes these “successes” to “good macroeconomic policies, wide-ranging reforms in the context of becoming a member of the [Organisation for Economic Co-operation and Development] OECD [which Costa Rica joined in 2021], two successfully completed IMF-supported programs, and a strategic focus on exports and economic diversification”.

    On 13 February Costa Rica’s finance ministry released new figures which showed central government debt totalled ¢29.35tn (US$58.43bn) in 2024 (59.8% of GDP), up from ¢28.76tn in 2023 (61.1% of GDP). However, the same figures showed the country closed 2024 with a deficit of ¢1.85tn – equivalent to 3.8% of GDP. This is up from a deficit of ¢1.53tn in 2023 – equivalent to 3.3% of GDP. The finance ministry said the difference owed to a lower primary balance than that posted in 2023, and a rise in interest payments on debt which totalled ¢2.37tn in 2024 (4.8% of GDP), the highest of the last 19 years.

     

    EL SALVADOR | Breaking ground on new airport. El Salvador’s President Nayib Bukele inaugurated the start of work on a new international airport, Pacífico, located in La Unión Sur municipality, La Unión department, on 25 February.

    A flagship project of the Bukele administration, the airport is being built with funds from various sources including part of a US$320m loan for the aviation sector development programme ‘El Salvador Vuela’ approved by the Latin American development bank (CAF) in July 2024. The programme proposes the construction and/or modernisation of regional airports in El Salvador through three projects: the construction of the international Pacífico airport in La Unión department, the remodelling and modernisation of Ilopango airport in Ilopango municipality, San Salvador department; and the design and construction of Tonalá airfield, in Sonsonate department.

    Bukele said the construction of the Pacífico airport would take place in three phases, the first of which should be ready for operations in the second half of 2027. He said that in the first phase, which should generate over 10,000 jobs directly and indirectly, the airport will be able to receive 300,000 passengers per year, operating 2,000 flights.