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  • EL SALVADOR: Flores gambles on using army against gangs

    09 July 2010 Hits: 2234

    President Francisco Flores has enlisted the army in a drive to wipe out the gangs known as maras. There are fears that this may prove ineffectual, even backfire. 

    The maras, estimated to have a joint membership of about 9,000, have been blamed for about 100 killings, many deliberately gruesome, a month - indeed, in the half-week in which Operación Mano Dura was set in motion, seven gang killings were reported in the San Salvador area. 

    Joint police-military patrols, targeting primarily the two largest gangs, Mara Salvatrucha and Mara 18, claimed almost instant successes: in less than a week they made 541 arrests. 

    This apparent success could prove unfounded: most of those detained may have to be released, as the police have no charges to file against them. Already about 200 have been set free. President Flores had openly admitted that the military-police drive would not suffice to eradicate the maras: the first phase of the campaign, he said, was intended to 'rescue' the neighbourhoods the gangs had made their own. 

    Real success, he added, required the passage of new legislation - which he only submitted to congress after giving the army and police the order to go in. The bill sharply increases the penalties for a number of offences, but most notably (emulating the law passed earlier by Honduras) makes mere membership of a mara a punishable offence. 

    This has been strongly criticised by human rights organisations and a number of jurists. Jaime Martí­nez, of the Fundación de Estudios para la Aplicación del Derecho (Fespad, a private foundation that conducts research into the application of the law), says that it is fundamentally wrong to penalise a condition rather than an action. 'To make it a crime to be a marero, is tantamount to believing that being a vagrant or a homosexual is criminal.' 

    Even the Catholic archbishop of San Salvador, Fernando Sáenz Lacalle, has pointedly reminded congressmen that 'if it is necessary to create special legislation, the proper steps must be taken, but keeping always within the framework of legality and the constitution.'

  • ECUADOR: Scope of gunrunning starts to emerge

    24 April 2007 Hits: 270
    Colonel confirms thefts from arsenals going back years; this matches claims made by the Colombian military.

    Suspicions about the involvement of members of the military in gunrunning were fed last week by recently retired Colonel Guillermo Cobo, a former commander of artillery brigade 27. He said that since 1999 some 109,000 rounds of ammunition had been stolen from the brigade. A first batch of 65,000 between 1999 and 2000 (on which court action was taken), and another of 44,000 between 2001 and 2002 — when the man in charge of the brigade was the army's current chief of personnel, General Gustavo Reyes. Cobo claimed that in June this year Reyes had put pressure on him to keep quiet about this.

    Questions have been raised about Cobo's credibility, given that he has only spoken out now, just after he was denied promotion to general. On the other hand, a report dating back to mid-2001 cites Colombian military sources saying that over the previous three years they had seized from the Farc guerrillas a large assortment of Ecuadorean military hardware: 300 rifles, 522 sidearms, 773 sticks of dynamite, 450 kilos of pentolite, 186 antipersonnel mines and about 1m rounds of varied ammunition.

    Also revived: the suspicions that a November 2002 explosion at an army arsenal was meant to disguise the theft of weaponry.
  • TRADE II: Gauging the `China factor'

    24 April 2007 Hits: 553
    Fear of China was said to have influenced the FTAA outcome — but not everyone has reason to fear.

    According to one school of thought, a major factor in securing agreement over the FTAA in Miami was the fear of China. One of the arguments deployed by US Trade Representative Robert Zoellick in his pre-summit discussions with the Brazilians was that without the FTAA Brazil risked being swept out of the US market by China. OAS secretary-general César Gaviria said, `The fear of China is floating in the air. It has become for us a challenge, not only in the area of cheap labour but also in that of skilled labour.'

    According to a recent study by investment bankers Goldman Sachs (The Sweet and Sour Effects of China in Latin America), these fears are only half-justified — or rather, justified for some Latin American countries but not for others. Adverse affects can be expected by those who compete internationally with China, like Mexico and Central America: the prices for their exports of apparel and light manufacture will be driven down by Chinese competition, and China's lower labour costs will lure away maquila (assembly plant) investors.

    On the other hand, those who export raw materials to China, like Argentina, Brazil, Peru and Chile, will see the prices for their goods boosted by Chinese demand, and the volumes boosted by China's rapid growth rate. Chilean economist Sebastián Edwards has been warning his fellow countrymen that, if they wish to export more than raw materials to China, they will have to `leapfrog' into high-tech goods, since China will prove a formidable competitor in such other manufactures as electronic products, vehicles, telecommunications equipment, light machinery and equipment.

    Brazil leads the pack
    This is what Brazil has already begun to do, selling Embraer's aerospace output as well as its raw materials. Brazil expects its exports to China to reach US$5bn, or 83% more than in 2002 — while Mexico, apart from seeing the Chinese attract its maquila investors and displace its products from the US market, is facing a huge trade deficit with China as a result of the increase in its own imports of Chinese goods.

    At the recent Brazil-China Business Round in Gwandong, it was noted that Latin America's trade with that region of China alone has increased from US$800m in 1993 to an estimated US$3.7bn this year. Unusually, acceleration is far greater on the Latin American side: Gwandong's exports to the region in the first nine months of the year were up 5.9%, to US$1.85bn, while its imports from Latin America were up by 73.8% to US$1.86bn. Gwandong's chief imports from the region: iron ore, copper, soya, leather and spare parts. As a rule of thumb, Gwandong takes about 10% of China's imports from Latin America.

    Further expansion is in the works: a trade mission headed by China's deputy agriculture minister arrived in Brazil last week with a long shopping list.

    The Chinese do not show much sympathy for those who complain about the competition they are offering. A typical response to their situation is that of Xingmin Yin, deputy director of the Shanghai-based China Centre for Economic Studies. `China,'he told the press, `was inundated with foreign products, but we did not blame [the exporting countries]. Instead, we learnt how to produce like them.'

  • Exchange rates, inflation in the region, the stockmarket in figures...

    24 February 2004 Hits: 1820

    Exchange rates
    Local currency per US$1
    COUNTRY CURRENCY
    Year ago
    Previous
    Current
    21.02.03
    13.02.04
    20.02.04
    Argentina peso
    3.22
    2.94
    2.96
    Barbados dollar
    2.00
    2.00
    2.00
    Belize dollar
    2.00
    2.00
    2.00
    Bolivia boliviano
    7.58
    7.88
    7.88
    Brazil real
    3.62
    2.90
    2.95
    Chile peso
    752.00
    580.00
    590.00
    Colombia peso
    2,938.57
    2,736.66
    2,693.91
    Costa Rica colón
    384.72
    423.40
    424.28
    Cuba peso
    1.00
    1.00
    1.00
    Dominican Rep. peso
    25.21
    48.75
    50.31
    Ecuador dollar
    1.00
    1.00
    1.00
    El Salvador colón
    8.75
    8.75
    8.75
    Grenada EC dollar
    2.70
    2.70
    2.70
    Guatemala quetzal
    7.86
    8.10
    8.12
    Honduras lempira
    17.25
    18.06
    18.07
    Mexico nuevo peso
    11.04
    11.02
    11.03
    Nicaragua córdoba oro
    14.93
    15.84
    15.86
    Panama balboa
    1.00
    1.00
    1.00
    Paraguay guaraní­
    6,940.00
    6,015.00
    6,030.00
    Peru nuevo sol
    3.49
    3.49
    3.48
    Uruguay nuevo peso
    29.25
    29.90
    29.85
    Venezuela bolí­var
    1,600.00
    1,920.00
    1,920.00
    Sources: EFE; Bank of America.

    Inflation in the region
    Country
    Source
    November
    December
    January
    Last 12m
    Jan-Dec 2003
    Argentina Indec
    0.20
    0.20
    0.40
    2.70
    3.70
    Bolivia INE
    -0.51
    0.90
    0.62
    4.17
    3.94
    Brazil FGV
    0.34
    0.52
    0.76
    7.71
    12.53
    Chile INE
    -0.30
    -0.30
    -0.20
    0.80
    1.10
    Colombia Dane
    0.35
    0.61
    0.89
    6.19
    6.49
    Costa Rica DGEC
    1.42
    1.25
    1.70
    11.02
    9.87
    Ecuador Inec
    0.33
    -0.04
    0.41
    3.92
    6.07
    El Salvador Min.Ec.
    0.07
    0.20
    1.11
    2.43
    2.50
    Guatemala BCG
    0.45
    0.58
    _
    5.85
    _
    Honduras BCH
    0.70
    0.30
    _
    7.70
    _
    Mexico Bco.Mx.
    0.83
    0.43
    _
    3.98
    _
    Nicaragua
    BCN
    0.82
    0.76
    _
    6.48
    _
    Paraguay BCP
    1.30
    0.90
    0.30
    5.50
    9.30
    Peru INE
    0.17
    0.56
    0.30
    5.50
    9.30
    Uruguay DGEC
    0.16
    0.65
    2.19
    10.39
    10.19
    Venezuela BCV
    1.90
    1.80
    2.50
    26.10
    27.10
    US DOL
    -0.30
    0.58
    _
    5.85
    _
    Previous: WR-04-07

    The stockmarket in figures
    Market Index
    13.02.04
    20.02.04
    Variation (%)
    Buenos Aires Merval
    1089.99
    1145.94
    5.13
    São Paulo Bovespa
    22529.80
    21336.91
    -5.29
    Santiago IPSA
    1445.45
    1504.79
    4.11
    Bogotá IGBC
    2927.98
    3180.28
    8.62
    San José BCT
    9980.09
    10187.74
    2.08
    Quito & Guayaquil Interinvest
    68.67
    68.68
    0.01
    Mexico BMV
    9982.87
    9888.73
    -0.94
    Lima ISVBL
    2770.86
    2721.44
    -1.78
    Caracas BC
    28032.54
    27865.86
    -0.59
    Source: Daily market reports.


  • HAITI: Asylum for Aristide in South Africa

    18 May 2004 Hits: 303

    The South African government has offered ousted President Jean-Bertrand Aristide political asylum, though it is calling it a `temporary home'. Officials say that the decision was postponed until after the recent elections, and was taken after discussions with the US and France.

    `This,' said government spokesman Joel Netshithenzhe, `is a temporary arrangement until the Haitian situation stabilises and Aristide and his family can return [...] South Africa accepts financial responsibility for his residence and upkeep in South Africa'.

    Unofficially, the word is that the duration of Aristide's stay will depend on the outcome of the elections due to be held next year in Haiti. Netshithenzhe said: `It is important to note that Aristide was the legitimately elected head of a sovereign country who was forcefully and unconstitutionally removed from power.' He added that South Africa supported the demand for an investigation into the circumstances of his departure from power.

    Also unofficially, it has been ventured that Aristide and his family might be travelling to South Africa, to settle in Pretoria, as early as this week.

  • MEXICO: Panic over mayor's ouster in Cancún

    03 August 2004 Hits: 359

    Had the epicentre not been Cancún, Mexico's leading tourist resort, and had the US State Department not attracted attention with a warning to travellers, the political crisis in the municipality of Benito Juárez would probably not have made it to frontpage-headline status. But it did, providing a snapshot of the state of politics in Mexico today.

    It started in mid July, when 11 of the 15 city councillors of Benito Juárez, which includes Cancún, resigned their seats in a bid to persuade the state legislature to oust mayor Juan Garcí­a Zavidea, of the Partido Verde Ecologista de México (PVEM), accused of embezzling public funds, sedition, fraud and assault. The legislators took their cue and deposed the mayor. This triggered some skirmishes between followers and opponents of Garcí­a Zavidea.

    Somehow this fed through the US diplomatic chain and ended up in a warning to travellers on the State Department website (visitors were told to be cautious and avoid demonstrations). Distorted by the media, this became a warning to stay away from Cancún, which caused panic among the resort's hoteliers and caterers. Last year Cancún hosted 3.3m visitors, of which 77% came from the US. At the time of the warning, Cancún's hotels were 98% full.

    The State Department's advice, though, was sound. On 28 July Garcí­a Zavidea led a crowd of followers on a march to 'recover' the municipality. They clashed with the police: about 30 people had to be hospitalised after suffering the effects of a tear-gas barrage, and Garcí­a Zavidea was arrested together with five of his followers.

    The former mayor, himself hospitalised immediately afterwards with a heart ailment, has accused the governor of Quintana Roo state, Joaquí­n Hendricks of the Partido Revolucionario Institucional (PRI), of having ordered the police to kill him (he claims they missed him but injured one of his bodyguards). 

    His party, the PVEM, has said it may expel him: Garcí­a Zavidea says this is part of a plot between the PVEM leadership and its PRI allies to prevent him from running for the state governorship in the elections scheduled for February next year.

    Warning from Washington
    It is not clear how many visitors to Cancún, or prospective visitors, actually saw the State Department warning, but the local US consul has promised to keep the situation under review and instantly seek the removal of the warning if the situation improves. The travel agents and hoteliers have not reported cancellations.

    Several commentators, though, have speculated that election-linked disturbances in places that are on the tourist circuit (witness last week's clashes in Oaxaca, which left a toll of two fatalities) may increase as the electoral year advances and ultimately start affecting the influx of tourists. In Quintana Roo, governor Hendricks says that the situation is 'under control', punctuated only by sparks caused by this person who stages demonstrations' - an allusion to former mayor Garcí­a Zavidea.

  • Formalising a South American 'merger' tops agenda

    29 October 2004 Hits: 117

    Latin America has a busy diplomatic calendar for the rest of the year which just might produce major developments. A summit of the Rio Group in November could, if Brazil gets its way, result in the incorporation of longtime pariah Cuba. Another summit in December, this time of South American heads of state, could witness the creation of the South American Community of Nations, fruit of a formal merger of Mercosur and the Andean Community (CAN).

    Last week foreign ministry sources in Brasí­lia said that the Lula government is again insisting on tabling a proposal for the incorporation of Cuba into the Rio Group, which has a summit scheduled for 4-5 November in Rio de Janeiro. The 19-member Group currently embraces all of South America save Suriname, all of Central America, Mexico and the Dominican Republic. It is the successor to the Group of Eight, which in turn grew out of the Contadora Group, set up to seek a negotiated end to the wars in Central America.

    Cuba first sought to join the Group of Eight 16 years ago but was turned down because of its rights record and its support for guerrilla organisations in Central America (it had been most active in Nicaragua and El Salvador). Last year a new effort to incorporate Cuba was turned down at the Rio Group's 23rd meeting of foreign ministers: proposed by Argentina and supported by Brazil, Venezuela and Peru, it was blocked by several Central American governments. Brazil wants Cuba on the agenda, as well as the election of a new secretary-general for the OAS to replace the recently resigned Miguel Angel Rodrí­guez. Central America is now seeking support for a 'consensus candidate' from Central America to be chosen [WR-04-41].

    Pushing South American unity
    Former Argentine President Eduardo Duhalde, currently the chairman of Mercosur's council of representatives, has made it a personal crusade to move as quickly as possible towards the formation of a South American Community of Nations through the merger of Mercosur and the CAN, plus the outliers of the Guianas. This has long been a stated objective of Lula's and also fits in with Hugo Chávez 's 'Bolivarian' outlook.

    Movement in that direction is already well under way. Not only has a preferential trade agreement between Mercosur and the CAN been formalised before Aladi (the Latin American Integration Association, the brass-tacks successor to the ill-fated Latin American Free Trade Association). Two members of the CAN, Bolivia and Peru, have already become associate members of Mercosur, and Venezuela may soon follow suit.

    Now Peru's foreign minister, Manuel Rodrí­guez Cuadros, has joined forces with Duhalde to push in the same direction. Rodrí­guez wants to see the new South American Community launched at the summit of South American heads of state scheduled to take place in Cusco on 8-9 December. He said last week, 'We are not thinking only about commercial convergence between Mercosur and the CAN, but [of] a South American free-trade area that will be the embryo of a South American common market [and eventually] a very efficacious means of political coordination.'

    A spot of divergence
    As we have noted in recent issues, not everything is convergence in the region. Mexico has now followed Argentina's suit in coming out publicly against Brazil's bid for a permanent seat on an enlarged UN Security Council [WR-04-40]. Addressing the Centro de Investigación y Docencia Económica (CIDE) last week, Mexican foreign minister Luis Ernesto Derbez said, 'The surprise for Brazil is that Mexico has raised its hand for one reason: we feel that increasing the number of seats in the Security Council by an additional five is not the solution to the UN's problems. 

    'Indeed, it would be a great mistake from an international point of view. We are not opposing Brazil; what we are opposing is that there should again be a [permanent] seat for a country, because then it would be national agendas dominating the discussion, and Brazil's national agenda is not Mexico's, as it is not Argentina's.'

    Derbez presented Mexico's counter-proposal: `We should think about regional seats within a structure that would allow the successive reelection of any country designated. This would give it semi-permanence, should it have truly served the region's objectives.'

    What has irked the Mexicans as well as the Argentines is that the Brazilian government decided to join four other countries that have put themselves forward as candidates for additional permanent seats on the Security Council - without first consulting with them. 

    Mexico had earlier stated that it was willing to work with Brazil on the issue of UN reform (and has even sought associate membership of Mercosur as a token of its sincerity). Argentina had thought that its 'strategic partnership' with Brazil, which involved joint representation at the Security Council when occupying non-permanent seats, entitled it at least to consultation.

    • Building up Minustah's strength.Three Latin American countries - Ecuador, Chile and Guatemala - are among those that are committing resources to strengthen Minustah, the Brazilian-led UN 'stabilising' mission in Haiti, which has so far been unable to act decisively against the creeping takeover of police roles by former Haitian soldiers or the increasingly violent protest actions by supporters of ousted President Jean-Bertrand Aristide. 

      Chile and Ecuador will send a joint engineering company to help in the construction, maintenance or upgrade of major supply routes for Minustah, as well as to build and maintain general infrastructure, already in a parlous state before recent damage by floods and landslides.

      Also, a contingent of 70 Guatemalan soldiers have started deploying Guatemala's major equipment, which will be fully operational and able to help the mission in early November. On the table is an offer by other Central American governments to send more troops.

      Countries from outside the region are also contributing to the buildup. Troops from Spain and Morocco are on their way, and the main body of a 750-member battalion from Sri Lanka will be arriving by the end of October.

      A contingent of 95 police officers from China arrived in Port-au-Prince on 17 October to join Minustah. This unit's main role is to help in crowd control, assist in the maintenance of public order, participate in patrols and conduct verification checkpoints. Besides the officers from China, police officers in Minustah are from Nepal, Pakistan, and Jordan.

      The new arrivals will boost the number of personnel in Minustah to about 4,100 people, still short of the authorised force of 6,700 troops and 1,622 civilian police, 548 international civilian personnel, 154 UN volunteers, and 995 local civilian staff. More than 15 countries have pledged to contribute military personnel to the mission.
  • Tracking trends

    18 January 2005 Hits: 293

    DOMINICAN REPUBLIC | Power crisis lingers on. The government has announced that this year it can only guarantee enough electricity to cover 70% of demand because the distributors bear a financial deficit that prevents them from making the necessary investments to overcome the problem. President Leonel Fernández last week set up a commission charged with solving the sector's liquidity constraints. The government has set aside US$350m for that purpose this year and hopes to have wiped out the deficit by 2006.


    It has extended for another year the PRA blackout reduction programme, meant to guarantee that the poorest neighbourhoods get at least 18 hours of electricity per day. So far, this target has not been met consistently and there are still blackouts that last up to 12 hours. Electricity superintendent Francisco Méndez has announced a 'no-quarter' campaign to eliminate illegal connections to the grid. The government owns two of the three electricity distributors operating in the country.

    EL SALVADOR | Remittances reach new record. Remittances by Salvadorean expatriates last year reached a record US$2.55bn, 21% more than in 2003 and equivalent to 16.2% of GDP. The central bank reckons that the recent extension by the US government of the temporary protection status (TPS) for undocumented Salvadorean immigrants will help maintain the momentum of the flow of remittances.

    As estimated 300,000 Salvadoreans will benefit from the extended TPS. Of the 2.7m Salvadoreans living abroad, 92% are in the US.

  • Ecuador is left without a supreme court and with a president a majority wants out

    20 April 2005 Hits: 334

    A messy round of tinkering with national institutions that resulted from the pressure of rapidly spreading mass protests has left Ecuador without a supreme court and President Lucio Gutiérrez bereft of the majority he had negotiated into being late last year in order to avoid impeachment. To hear Gutiérrez and his officials, though, the government has won a famous victory.

    On 18 April Gutiérrez proclaimed, 'What we have had in Ecuador is a revolution, but without bloodshed, because the power of the oligarchy has ended.' Over the previous three days, as his 'institutional majority' unraveled, he had attempted to quash the growing protests - which were increasingly demanding his resignation - by declaring a state of emergency (a decision he reversed within hours) and to sort out the crisis by decreeing the dismissal of the supreme court his 'institutional majority' had appointed in December.

    In issuing such a decree he was blatantly overstepping his constitutional powers, as was swiftly brought to his attention by the president of congress, Omar Quintana. On 16 April, with the congress building surrounded 'protectively' by 300 special forces troops, he struck a deal with Quintana: he would withdraw the decree in exchange for a commitment by congress to dismiss the supreme court and enact the reforms proposed by Gutiérrez to introduce a new, 'transparent' process for the selection of a new one.

    That agreement collapsed within hours. On 17 April the opinion prevailed in congress that, rather than compound irregularities by dismissing the new court, the legislature should annul its own irregular December appointments. This a majority agreed to do; it also threw out Gutiérrez's proposed reforms, agreeing instead to seek for itself new instruments and mechanisms to achieve the declared aim of those reforms, namely the clean, transparent selection of new magistrates.

    Legal experts soon noted that what should logically have followed from the annulment of the irregular December proceedings was a return to the status quo ante, which would have involved reinstating the dismissed justices. Much as this would have pleased the conservative Partido Social Cristiano (PSC), which had appointed most of the dismissed justices, this was not considered an option by most of the rest of congress.

    Government in denial
    Gutiérrez chose to ignore the fact that his solutions had been rejected. Instead, he boasted that his decree dismissing the court had been an 'effective strategy', inasmuch as it had 'forced' congress to act. His interior minister, Oscar Ayerve, emulated him by proclaiming, 'We have seen that in this country the calls to dialogue and cooperation can indeed work.' Ayerve then went on to lock the dismissed justices out of their offices, establishing a strong police cordon around the building - which had the effect of freezing all top-level judicial proceedings.

    The government also claimed that US Secretary of State Condoleezza Rice had ratified the Bush administration's support for Gutiérrez. The US embassy in Quito was more circumspect: it reported that on 18 April ambassador Kristie Kenney had had a 'routine' meeting with Gutiérrez, and welcomed the decision taken by congress as a first step towards the resolution of the crisis.

    Crisis there still is. To start with, the developments of the past few weeks have eroded much of what remained of Gutiérrez's public standing. A survey conducted on 17-18 April in the provinces of Pichincha and Guayas by Monitor de la Opinión Nacional showed 80% of the respondents in favour of Gutiérrez's immediate resignation. 

    A slightly smaller majority, 69.2%, felt that he should also be tried by congress (in a juicio polí­tico, akin to an impeachment but which can also be used against former officials). The president's credibility rating was down to 3.9%.

    Still pending is what will happen to former president Abdalá Bucaram, now that the supreme-court president who annulled all legal proceedings against him has been removed, and the chief prosecutor has initiated proceedings to have them reinstated. 

    Bucaram's return was the price for the support given to Gutiérrez by the Partido Roldosista Ecuatoriano (PRE), which was crucial to the formation of the shortlived pro-Gutiérrez 'institutional majority' - though Gutiérrez has publicly dissociated himself from this, and has even in the past few days taken to describing it as a manoeuvre by the opposition to split the votes of the cities on Ecuador's coast.

    Patching up the damage done to Ecuador's institutional arrangements will not be easy, and it is not too daring to predict that the process will be highly vulnerable to further political developments - starting with whether Gutiérrez will survive. 

    Precedent suggests that, if the new arrangement regarding the supreme court enjoys enough political backing, questions about its legitimacy will be set aside (as was the case with the two ousters of presidents by congress, those of Bucaram and Jamil Mahuad).

    A deeper shift of public mood?
    In its editorial of 19 April the newspaper Hoy maintained that there was a message to be heeded in the nature of the protests of the past few days. 'Participation,' it says, 'has been spontaneous, in response to the urgings of Radio La Luna, not in response to political parties or personalities. This is to say, their origins are the exact opposite of those of the counter-demonstrations organised by the government, with employees forced to lend their support or people mobilised to the capital by government officials.' 

    It adds that these demonstrations, which attracted the support of entire families, 'have expressed the sentiment of a vast majority of the Ecuadorean people who, alienated by corruption and fed up with political degradation and deceit, harbour the hope of a different country'.

    Hoy's leader writer noted, 'In Quito the demonstrations are continuing, clamouring, ' ¡Lucio, fuera!' [Lucio Out!].

  • NICARAGUA: Agreement on solutions - but with incompatible caveats

    12 July 2005 Hits: 492

    After being twice wrongfooted by Sandinista leader Daniel Ortega, President Enrique Bolaños has fallen back on denouncing a conspiracy to remove him from power in order to later declare an amnesty which would free former president Arnoldo Alemán. The opposition, meanwhile, does not appear to be working entirely in unison - and the public, apparently taking Bolaños's proposals at face value, is overwhelmingly in favour of them.

    On 6 July, Ortega announced that he would accept Bolaños's proposal of a referendum on the constitutional reforms the president has been challenging - but only if Bolaños were to return to the 'dialogue' initiated at the prompting of the OAS in January and hallmarked by the non-fulfilment of commitments, then ended by Bolaños's withdrawal in April. 

    Bolaños, in line with previous gambits, said he would only return to a 'dialogue' if it were to be expanded to include other political parties - not just the two biggest ones - and civic organisations.

    The president also half-ignored the summons by a legislative commission looking into a request for the lifting of his immunity from prosecution [WR-05-26]. He sent his lawyer to the proceeding instead, who argued that the constitution did not describe any procedure for lifting the president's immunity. He eventually conceded that the penal code did envisage this, but was inapplicable since the charges predated the incorporation of such procedure.

    The biggest opposition party, the Partido Liberal Constitucionalista (PLC), took to the streets in the thousands on 10 July to call for the lifting of Bolaños's immunity, while the Sandinistas remained mute on the matter. On the eve of the demonstration Bolaños had claimed that the lifting of his immunity was a ploy devised by Sandinista leader Ortega to fulfil a promise he had made to get Alemán released. Bolaños's scenario: with his immunity lifted he would be tried and removed from office, then his successor would declare a general amnesty and Alemán would be set free.

    A survey conducted by M&R Consultores for La Prensa revealed almost 75% of respondents are against the lifting of the president's immunity. Also, 82% are against Ortega's proposal to bring forward the elections as a means of solving the crisis. But the survey showed similarly big majorities in favour of a referendum on the constitutional reforms (75%), of holding elections for a constituent assembly simultaneously with the 2006 general elections (76%), and of electing new judicial, electoral and oversight authorities under rules to be written by the constituent assembly (82%).

    That last item can be interpreted as a rejection of the 'sharing out' of positions in all decisive bodies by the PLC and the Sandinistas. The big problem lies in the fact that surveys of voting intentions suggest a possible Sandinista victory in 2006. It is true that this relies upon Ortega not being the Sandinista candidate, but the underlying alignment with the party suggests that the Sandinistas would be the leading force in the constituent assembly. This does not augur a sudden desire to give up the power already gained.

     

  • HAITI: New delay of elections to be announced

    11 October 2005 Hits: 306

    Prime Minister Gérard Latortue is expected to announce, as this issue goes to press, that the first round of elections, scheduled for 20 November, is to be postponed. Though ostensibly in order to allow time for more people to register as voters, part of the reason may be the pressure on the interim government to review what appears to be a deliberate policy to exclude potentially winning candidates from Lavalas, the party of former president Jean-Bertrand Aristide.

    Latortue had hinted at the possibility of a delay 'from one date to another, from one week to another' on 8 October when the CEP, the provisional electoral council, missed two important deadlines: the formal opening of the campaign period and the publication of the list of registered candidates. Later that day the president of the CEP, Max Mathurin, confirmed that a delay would be announced in the coming week. Both Latortue and Mathurin reiterated that the one unmovable date is that of the handover to an elected government, 7 February 2006. Elections were originally scheduled to begin on 15 October at local government level.

    Off the record, CEP officials have said that up to the end of last week the registration of 32 presidential and more than 900 legislative candidates had been approved. There has been no movement to release the two most prominent figures of Lavalas, presidential candidate Gérard Jean-Juste and former prime minister Yvon Neptune, widely believed to have been jailed on trumped-up charges to deprive Aristide's party of a recognised leader.

    On 10 October a group of 15 political parties of varying ideological colouration, the Conventions des Partis Politiques, jointly demanded the creation of an 'electoral guarantees commission' formed by prominent civil society leaders, politicians and international observers, to ensure that the process is kept free and fair. As noted by their spokesman, Victor Benoí®t of the Fusion des Sociaux Démocrates (Fusion), such a body was envisaged in the initial political agreements at the outset of the transition period.

    The Convention also voiced reservations about prime minister Latortue's creation of a 'support commission' for the CEP, saying that it appeared to be set above the CEP (implicitly, as an instrument of executive control) when its job should be clearly auxiliary.

     

    • Minustah reinforcements promised 'soon'

      Minustah, the UN 'stabilisation force' in Haiti, will soon have the extra troops mandated by the UN, according to General Bacellar Urano Texeira Da Matta. On 6 October the general announced the imminent arrival of 750 soldiers to form a 'rapid intervention force to guarantee security, particularly in Port-au-Prince' and another 130 to establish headquarters facilities to help coordinate the actions of the military and police branches of Minustah. The focus on Port-au-Prince translates as controlling Lavalas strongholds such as Cité Soleil.

      General Texeira did not spell out the provenance of these troops. An early unstated assumption was that they were to be drawn from the US and French units that had taken part in the original intervention in Haiti in February 2004 - they not only fitted the description but also had direct experience of operations in Haiti. Fresh troops from elsewhere, arriving only weeks before the elections, are seen as unlikely to become familiar with their surroundings in time to be effective. Troop commitments announced so far do not add up to the numbers cited by the general.
  • BRAZIL-US: Reacting to veto on aircraft sale to Venezuela

    17 January 2006 Hits: 1746

    Venezuelan Vice-President José Vicente Rangel sought to prompt a Brazilian response when he stated that a US veto on the sale of Super Tucano aircraft to his country would be more of an 'act of aggression' against Brazil than against Venezuela. Brazil did not take up the cue because the veto had not yet materialised, but Foreign Minister Celso Amorim delivered a strong warning that, should it take place, it would be 'counter-productive'.

    Venezuelan President Hugo Chávez claimed last week that Washington had blocked a sale of Super Tucano military aircraft made by the Brazilian firm Embraer because it had US technology incorporated. On 11 January Brazilian Foreign Minister Celso Amorim noted that, in the first place, the sale of the aircraft had not been finally agreed. 

    However, he noted, 'indications' had been received from the US regarding a possible veto. 'We received some indications, we made some consultations and we got a reply that was not fully satisfactory [...] An eventual disapproval [of the sale] would be counter-productive. Negotiations are continuing but if the disapproval is confirmed it will be counter-productive.'

    Amorim outlined the rationale for Brazil's position along two lines. He said that the aircraft Venezuela has ordered are 'defensive', of the same kind as those ordered recently by Colombia. 'They are not,' he said, 'aircraft that could cause a [military] imbalance in the region or which could threaten the security of the greatest military power of the planet.' [Left unsaid was that the sale of Super Tucanos to Colombia came only after years of US opposition were overcome.]

    On this count Brazil is aligning itself with Spain's refutation of the US claim that it was blocking arms sales which threatened to destabilise the region (see page 4).

    The other line of argumentat was over a matter of principle. 'We are against restrictions in general,' said Amorim, 'and against restrictions on technology transfer in this case, especially because there are no international sanctions in effect [against Venezuela].'

    The Brazilian government is also unhappy about a decision by the Pentagon which has led Embraer to shelve its plans, announced in June 2003, to establish an aircraft assembly plant in Jacksonville. On 12 January the Pentagon cancelled a contract worth about US$8bn awarded in August 2004 to a consortium led by Lockheed Martin to develop the Aerial Common Sensor (ACS) - a surveillance device for which Embraer was to produce the 'platform', in the shape of a modified version of its ERJ 145 passenger aircraft. When a review led to a request for a bigger platform, Embraer offered its ERJ 190 but this did not satisfy the Pentagon. The firm's official reaction is 'disappointment at the course of events'.

    One thing Brazil has not been persuaded to do is to keep their distance from Venezuela. According to Amorim: 'We continue trying to improve the type of dialogue between Venezuela - a neighbour, a friend of Brazil's and now a member of Mercosur - with the US, which is also a friend of Brazil's.'

  • DOMINICAN REPUBLIC: Pink Alliance looks beyond May elections

    11 April 2006 Hits: 389

    It could just be electoral rhetoric, but leaders of the Alianza Rosada (Pink Alliance) which brought together the Partido Revolucionario Dominicano (PRD) and the Partido Reformista Social Cristiano (PRSC) have started talking about making their entente a lasting affair. In the meantime, the exodus of members of both parties dissatisfied with the alliance continues.

    The Pink Alliance, more formally known as the Gran Alianza Nacional (Great National Alliance), gets its sobriquet from the colours of the two members: the red of the PRSC and the white of the PRD. Last week, at a gathering held to present the members of the alliance's campaign management team, leaders of both parties alluded to plans to keep the coalition together beyond the 16 May legislative elections.

    Federico Antún Batlle of the PRSC did so in the context of proposals to combat crime and poverty. He said the answer lay in the implementation of a development plan over the next three or four legislative and executive terms. Ramón Alburquerque of the PRD was more direct. He said the two parties had agreed to 'work together for national development [...] over the coming 20 years if necessary'.

    In a parallel development, six middle-ranking leaders of the PRD in Santiago and four from the PRSC in the same city announced that they were leaving their respective parties to join the Bloque Institucional Social Demócrata (BIS) - a small party which claims continuity from the faction of the same name founded within the PRD by its late legendary leader José Francisco Peña Gómez in 1984. The BIS nominated one of their number, Nelson Abreu of the PRD, as its mayoral candidate in Santiago.

  • Tracking Trends

    25 July 2006 Hits: 214

    BOLIVIA | Petrobrás increases public pressure. In Asunción last week to inaugurate new investments in fuel distribution, Petrobrás president José Sérgio Gabrielli delivered a very public message to Bolivia on the continuing negotiations over the price increases demanded by the Morales administration. He noted that Brazil has at present a contract valid until 2019 to import up to 30m cubic metres per day of natural gas, and is currently importing 24m cmd. 'We don't expect,' he said, 'to have to import any additional gas from Bolivia; the 30m cmd we have contracted should suffice.' Brazil, he said, is investing in increasing its own production of natural gas from its fields in Espí­rito Santo and the Santos basin in São Paulo state.

    The firm's director of international operations, Néstor Cerveró, said Petrobrás would immediately start carrying out technical studies to determine the oil and gas potential of the Chaco area 'close to the Bolivian border'.

    COLOMBIA | Oil horizon appears to recede. Last week the government's hydrocarbons agency, Agencia Nacional de Hidrocarburos (ANH), presented a strategic plan in which known oil reserves are put at 1.43bn barrels, enough to meet demand until 2012, a horizon which, it says, planned investment in exploration could extend until 2017 or even 2020. The aim is to sign at least 30 exploration and production contracts annually, which are expected to yield about 10 discoveries a year. At present the ANH has 100 contracts with 64 companies, and the state oil company, Ecopetrol, has another 40. So far this year 32 wells have been drilled, of which five have been declared productive and 11 are still being assessed. The ANH plans to invest about US$60m in exploration.

    In the first quarter of this year, foreign direct investment (FDI) in the oil sector reached US$331m, almost three times more than in the same period of 2005 and equivalent to a third of the entire FDI inflow. Another US$451m of FDI went into the mining sector.

    ECUADOR | Venezuelan oil agreement collapses. The strategic alliance signed with the Venezuelan state oil company two months ago, to swap 100,000 barrels per day of Ecuadorean crude for refined products from Venezuela, collapsed last week when Venezuela was unable to ensure the level of savings Ecuador had expected. A communiqué from the Venezuelan energy minister, Rafael Ramí­rez, loosely estimated Ecuador's probable savings at US$179 a year; Ecuador had expected at least US$200m.

    The Ecuadorean government will now invite international tenders for the 100,000bpd of crude (roughly equivalent to what Oxy used to produce under the recently voided contract). It is expecting bids from state oil companies of Brazil, Chile, China, Colombia, Jamaica, Mexico, Peru and Uruguay (PDVSA is not excluded).

    The failure of the strategic alliance has been widely interpreted as a significant setback for Venezuela's oil diplomacy.

    VENEZUELA | Argentina & Uruguay to develop Orinoco belt. On the sidelines of last week's Mercosur summit, the energy ministers of Venezuela, Argentina and Uruguay signed an agreement whereby the state oil companies of the latter two, Enarsa and Ancap, will jointly develop a block in the Orinoco heavy oil belt, in a 49% - 51% partnership with PDVSA. Initially PDVSA had been angling for a contract with Uruguay and Chile, but talks with the latter did not prosper. Ancap reckons that its share of the output might amount to 50,000bpd, which is about 16% more than its current consumption. Oil is expected to start flowing from the block in four years' time.

  • NICARAGUA: CSE accuses Bolaños of meddling in elections

    24 July 2007 Hits: 328

    With elections less than a week away the supreme electoral tribunal (CSE) is accusing the government of President Enrique Bolaños of doing its utmost to prevent Daniel Ortega, the candidate for the Frente Sandinista de Liberación Nacional (FSLN), from winning. The government is implying that the CSE might be preparing to perpetrate fraud to ensure that Ortega does win.

    The latest altercation between the CSE and the executive broke out on 26 October when the CSE accused the government of interfering in the elections: the president of the CSE, Roberto Rivas, one of four magistrates affiliated to the FSLN on the seven-member council, claimed that he had discovered from diplomatic sources that the government had instructed its ambassadors to denounce electoral fraud if "a certain candidate X", wins the elections on 5 November. Rivas said this could only mean Ortega. Bolaños denied this was true, although somewhat confusingly he went on to accuse Rivas of spying on the foreign ministry.  

    The CSE, which is also composed of three magistrates with ties to the Partido Liberal Constitucionalista (PLC), followed up its denunciation two days later by accusing the government of disseminating manuals instructing voters how to cast their ballots including two pages urging voters to vote against "El Pacto" and "caudillos". Beneath this was a photo of former presidents Daniel Ortega and Arnoldo Alemán (PLC) together.  

    Bolaños, much like the US ambassador Paul Trivelli, professes neutrality in the elections but has let it be known that his preferred candidate is Eduardo Montealegre of the Alianza Liberal Nicaragüense (ALN). While he has stopped short of accusing the CSE of trying to manipulate the vote, he supports Montealegre's campaign proposal to completely dismantle "El Pacto", under which Ortega and Alemán in 2000 divided up state institutions such as the CSE, the judiciary and the comptroller's office between the FSLN and the PLC.  

    While it is unlikely that the CSE is planning electoral fraud its determination last week to prevent the electoral observer, Grupo Cí­vico Ética y Transparencia (an umbrella organisation of 20 different groups including think tanks and civic groups) from carrying out a quick count before the CSE releases the official results prompted concerns that it might be preparing to manipulate the results slightly if the outcome is close.  

    Rivas said the CSE might strip the Grupo Cí­vico of its accreditation. "An observer organisation - as the word implies - should observe not challenge the electoral authority," he said. The director of the Grupo Cí­vico, Roberto Courtney, said it would do the quick count "whether they like it or not, with or without accreditation." He said it would not publish the results of the quick count, however, until after the CSE released the final results.

    Polls point to tight finish
    Beaten by ten percentage points in the last three elections Ortega will head into these elections with a realistic chance of winning in the first round, according to three polls released last week, although all three of them put him just short of the 35% required to win in the first round (see table below).The latest offering from the Costa Rican firm, Borge y Asociados, released on 23 October, put Ortega on 34% followed by Montealegre on 23%, José Rizo, of the PLC, on 19%, and Edmundo Jarquí­n, of the Movimiento Renovador Sandinista (MRS), on 9.6%. The poll, which questioned 1,000 people between 15 and 22 October, had a margin of error of 3.2 percentage points. An M&R poll of 4,024 respondents, carried out at the same time and with a margin of error of 1.5%, put Ortega on 30.9%; Montealegre, on 26.4%; Rizo, on 16.3% and Jarquí­n on 15.9%.  

    A Cid Gallup poll, released on 26 October, put Ortega eleven points clear of Montealegre on 33%. The poll, of 1,242 voters, was carried out between 19 and 23 October. It had a margin of error of 2.8%. It is worth bearing in mind that the addition of the margin of error to Ortega's vote would be enough for him to win. There is also a significant (traditionally anti-Ortega) hidden vote which could play a key role on election day: between 10% and 15% of voters are undecided.  

    Although Ortega is the clear frontrunner in all of the polls they each show that more than 50% of voters would never vote for him, which means that he would lose if the contest goes to a second round in mid-December. Even if he wins in the first round he will encounter fierce resistance to his legislative agenda in the 90-seat national assembly. The political duopoly enjoyed by the FSLN and the PLC in the assembly will be supplanted by four parties, which means that Ortega would have to engage in horse trading to get the 47 votes required to pass legislation. He is unlikely to receive support from the ALN or the MRS, both of which want to call time on "El Pacto". M&R predicts that the FSLN will win 35 seats; the ALN, 29 seats; the MRS, 14; and the PLC, just 12 (down from 40).

    Rizo catching Montealegre
    If the contest goes to a second round there is a good chance that Ortega will face Rizo rather than Montealegre. Rizo is steadily picking up in the polls and can point to the PLC's strong influence in rural areas, which the polls rarely reflect, and April's regional elections in the autonomous Atlantic regions (RAAN and RAAS) in which the PLC outperformed the FSLN and the ALN garnered little support. Montealegre, on the other hand, is on a downwards trajectory: he enjoyed close to 30% support in August; now he averages about 24% support.

    Montealegre is ignoring Rizo and focusing his attention on Ortega, who he says is untrustworthy because he refused to participate in an electoral debate with him on 27 October. "It was important for (Ortega) to show up, but he unfortunately decided not to do so_ During his government, we had alliances with conflictive countries, wars, divisions, press censorship and half a million Nicaraguans emigrated to look for a better life." Montealegre will raise the prospect of similar divisiveness should Ortega win, hinting also that there could be problems with Nicaraguans receiving remittances from expatriates living in the US.  

    Republican congressman Dana Rohrabacher appealed to Michael Chertoff, the Secretary of Homeland Security, last week to block Nicaraguans from sending remittances if Ortega wins. The US Agency for International Development also sent out warning signals. Adolfo Franco, USAID's adjunct director for Latin America and the Caribbean, told La Prensa on 28 October that USAID had budgeted US$48m for Nicaragua in 2007, but said "that increase, of course, will depend on the path that the new government follows."

    Final opinion polls (%) for presidential elections
      Borges y Asociados M&R                       Cid Gallup      
    Daniel Ortega 34 30.9 33
    Eduardo Montealegre 23 26.4 22
    José Rizo 19 16.3 17
    Edmundo Jarquí­n 9.6 15.9 13

    Oliver North drops in
    Oliver North, a central figure in the Iran-Contra episode, touched down in Nicaragua on 23 October to "visit friends". North said it would not be good for either Nicaragua or the US if Daniel Ortega were to win the elections. He also said the US was mistaken to have dropped its traditional support of the PLC because of the corruption of its leader, Arnoldo Alemán. He said the PLC was the party best equipped to prevent Ortega from coming to power.

  • MEXICO: Killings in Guerrero highlight problems

    24 July 2007 Hits: 374

    The killing of seven state law enforcement officials in Guerrero on 6 February highlighted major problems with the federal government's offensives across the country against the drug gangs. The principal problem is the suspicion the feds have of local police. This means that there is little coordination and even confrontation between federal and local law enforcers. Another problem is that law enforcement, at both the federal and local level, is handicapped by leaks to the drug gangs. Gloomy academics claim that unless there is a radical change in the way the government attacks organised crime, it will not win its war. 

    The feds, usually from the Policia Federal Preventiva (PFP), the army and marines, assume that the local police and law enforcement agencies are hopelessly compromised: either in the pay of the drug gangs or so frightened of them that they keep well out of the drug gangs' way. So the feds either disarm the local police, as they did when they moved into Tijuana on 2 January (see WR-07-01) or ignore them, as they did in Guerrero. In Guerrero, Eduardo Murueta, the state attorney general, all but blamed the feds' disdain for the local police for the deaths of the seven on 6 February: four state policemen; one state prosecutor and two secretaries were gunned down. 

    Murueta claimed that the commanders of the 7,600 or so federal troops and policemen deployed against the drug trade in Guerrero had not met their local counterparts and had not set up any sort of coordination with them. The drug gangs exploited this lack of coordination by sending in two teams of killers disguised as federal soldiers to two police stations in Acapulco on 6 February. The state policemen were taken in by the disguises and so allowed the "soldiers" into the police stations; there were no passwords or recognition codes, which might have alerted the local policemen that something was not quite right about the soldiers. Once the soldiers were inside, they opened fire. According to eye-witnesses, one gang of "soldiers" was accompanied by a film crew which apparently recorded the slaughter. 

    Murueta gave a broad hint that as a result of the killings, feelings were now running high inside the local police, particularly the local Policí­a Investigadora Ministerial. The risk for the federal government is that there is a repeat of the embarrassing occasion in Nuevo Laredo in June 2005 when local policemen opened fire on the federal policemen arriving in the town. This occurred during the first phase of the previous government's México Seguro operation, which used just the PFP to replace local policemen. The current government is deploying soldiers and marines as well. 

    The federal government rejects Murueta's accusations about the lack of coordination. It prefers the theory that the policemen who were killed were involved in the drug trade and thus were killed in a settling of scores with rival gangsters. On 6 February, the federal Procuradurí­a General de la Republica immediately declared that the killings were part of a "settling of scores": most commentators took that phrase to mean simply that the drug gangsters were counterattacking in Acapulco against the federal offensive, even though the PGR made no mention of regret about the policemen's deaths in Acapulco. On 7 February the PGR clarified its claim and said that one of the leads it was following was that the dead policemen were involved in the drug business and had thus been killed by rivals. 

    The underlying problem for the federal government is that the much-hyped offensives against the drug trade have not delivered much in the way of high profile captures or major seizures of drugs. The federal government, unwittingly, drew attention to the lack of success by trying to mitigate the effects of killings in Guerrero. The policemen in Guerrero were killed in the morning. In the afternoon the federal government claimed a couple of successes. It made its biggest ever drug seizure at Mexico City airport and then claimed to have dismantled a team of money launderers working for the Cartel de Juárez who handled the proceeds of the gang's sales in the northeastern US. 

    The army is beginning to show some signs of unease at the way it is being deployed. At the end of this month (February) the minister of defence, Guillermo Galván Galván has agreed to a major summit. All 12 of the country's regional commanders and all 45 of the zonal commanders will assemble to assess progress so far. 

    Already NGOs involved in human rights have warned the government against using the army for police work. The army too, which has a much higher public reputation than the police, is unhappy about a prolonged involvement. The army's reputation was badly dented when it transpired in 1997 that General Jesús Gutiérrez Rebollo, then Mexico's top anti-narcotics officer, was in the pay of a major drug-trafficking gang, the Cartel de Juárez. Gutiérrez Rebollo was arrested in February 1997 and the army was subsequently withdrawn from the war against the drug gangs. 

    The lack of intelligence
    The big operational problem in the war against drug gangsters is the poor intelligence the government forces receive. The government is likely to get even less information after it raised the stakes in the war with the drug trade when it started, on 19 January, to hand over to the US any drug trafficker the US wanted to prosecute: drug barons now know that they will not be able to continue to run their business from gaol even after they have been arrested, as Osiel Cárdenas, leader of the Cartel del Golfo, did; until he was extradited to the US on 20 January. US jails are much more intimidating places than Mexican jails, so drug barons are likely to take fewer risks of being caught. 

    What should be worrying the federal government is that it is not only local policemen who are in the pay of the drug gangs. Although the federal authorities seized 1 tonne of cocaine (worth around US$35m) at Mexico City's airport on 6 February, they did not nab the people who should have taken delivery of the drugs. The cocaine was hidden in 25 suitcases on a flight from Caracas. Mexico's biggest drug haul in 2006, 5.5t of cocaine at Ciudad del Carmen, also originated from Venezuela. This coincidence suggests that the Venezuelan anti-drug authorities are tipping off their Mexican counterparts about major shipments. Yet at neither Ciudad del Carmen nor Mexico City were the intended recipients of the drugs caught. This suggests that the drug gangs became aware of the Venezuelan tip-offs. 

    Academics gloomily argue that the government will lose its war against drugs unless it is able to push through constitutional reforms to focus government efforts on beating the drug trade. One major advantage for the drug traffickers is that the authorities' anti-drugs efforts are diffused across municipal, state and national police forces. Another advantage the drug traffickers have is that their huge cashflows mean that they can bribe their enemies: traditionally Mexican police and prosecutors have been offered a choice: plomo o plata (a bullet or cash). 

    To be fair, the government is trying to address the coordination problem. The public security minister, Genaro Garcí­a Luna, said on 4 February that he intended to set up a separate department, technically a deputy ministry, to focus on the war against the drug trade and organised crime. 

    Clumsily, Garcí­a floated the idea at a meeting with senators from the ruling Partido Acción Nacional. This looks like another attempt by the government to generate political capital out of its anti-drugs initiatives. Opposition politicians note that the government initially concentrated its anti-drug efforts in two states which are holding important elections this year, Michoacán and Baja California. Senators from the Partido Revolucionario Institucional and the Partido de la Revolución Democrática said that Garcí­a's idea was half-baked because it could lead to a duplication of efforts.

    In Mexico, under the constitution, prosecutions are handled by the Procuradurí­a General de la República. According to one senator from the opposition Partido de la Revolución Democrática, the most the public security ministry, the SSP, can do is to advise the PGR: what it cannot do, without breaking the constitution, is take over prosecutions, which is what Garcí­a Luna appears to want to do. Garcí­a Luna told PAN senators that this year his ministry, the SSP, would hire another 8,000 university graduates, presumably mostly lawyers, to bolster its forces for the war on organised crime. This would take the ministry's headcount up to 20,000. The SSP is traditionally a junior ministry, subservient to the interior ministry and the PGR.

    Two soldiers killed in Sinaloa
    Even though both this government and its predecessor have tried to do something about the violence in Sinaloa, the killing continues. Sinaloa was one of the three states originally targeted by President Vicente Fox's México Seguro initiative in June 2005. The current government of Felipe Calderón Hinojosa has also identified the state as one where the drug trade is challenging the elected authorities for control of the state. The government recently reinforced troops and police deployed in the state when it launched its third front in its war against the drug trade. Sinaloa is part of the so-called "Golden Triangle" along with Durango and Chihuahua which is heavily used by drug traffickers. 

    The two soldiers were targeted by a vehicle transporting their killers and cut off. The police have recovered over 40 bullet casings from the crime scene which is only three blocks from the centre of Culiacán, the state capital. 
    The federal Secretarí­a de Seguridad Pública said that it has been able to trace the car used by the killers through the web of video-cameras covering the centre of the city. The ministry admits, however, there are no clear pictures of the faces of the killers in the car.

  • Quotes of the Week

    25 July 2007 Hits: 212

    "I am the irrefutable proof of state paramilitarism in Colombia."

    Salvatore Mancuso, a leader of the Autodefensas Unidas de Colombia (AUC), giving testimony under the justice and peace law.

     

    "Radical rhetoric - I have told (Bolivia's President) Evo (Morales) - is incompatible with the common sense of who governs."

    Brazil's President Lula da Silva.

     

    "(Latin America) has evolved towards democracy although there is cause for concern at the emergence of authoritarian forms of government wedded to ideologies that we thought had been superseded."

    Pope Benedict XI.

  • BRAZIL: Economy weathers financial turbulence

    24 August 2007 Hits: 269

    The mid-August financial market turbulence did not trigger a financial crisis in Brazil, as it would have done a few years back. With US$160bn in foreign reserves Brazil is well-positioned to deal with any prospective capital flight. However, the turbulence may still slow down economic growth.  

    The turbulence had its advantages for Brazil. International investors' flight to quality (i.e. away from equities and high yielding bonds and into US Treasury bonds) gave the Brazilian central bank a nice windfall. Just before the turbulence, the US Treasury published figures for the main international holders of US Treasury bonds and bills. Brazil had broken into the top five. In the first half of 2007 Brazilian holdings of US Treasuries increased by US$41.5bn to US$93.6bn. Yields on US Treasuries fell in the turbulence as their price rose.

    However, the flight to US bonds boosted the US dollar, which over the past three years had depreciated more than 50% against the Brazilian currency, the real. Just before the turbulence, at the end of July, the real hit 1.84 to the dollar. Amid the turbulence the dollar bounced back by 8% and is now being traded at R$2.03. The low dollar had made the prices of imports cheaper and helped to push Brazil's inflation down. The central bank managed to cut the base interest rate, the Selic, to its record low of 11.5% annually last month. Following the turbulence, however, economists revised their half percentage point cut forecast for the bank's September meeting to a quarter of a percentage point cut instead. This may undermine investment to improve productivity.  

    At the same time the real's depreciation against the dollar will help Brazilian exporters, by making Brazilian manufactured goods cheaper. Brazil has managed impressive trade surpluses, boosting its international reserves to a record high, thanks to an increase in demand and also price for commodities. The challenge now is to keep the real below the 2.10 mark against the dollar. This is deemed by economists to be the "equilibrium mark", in which Brazilian exports are competitive but also imports are not too expensive.

     

    • Health financial system
      The president of Brazil's largest private bank (Bradesco), Márcio Cypriano, declared that Brazil's financial system is "healthy" and can absorb the impact of the global financial market turbulence. Cypriano said Brazil is "different" from past decades and is well prepared to face the "currency see-saw" prompted by the subprime mortgage crisis in the US. Significantly, he said that no Brazilian bank holds any share in the US subprime market.  
  • Quotes of the week

    22 November 2007 Hits: 231

    “Lousteau is full of talent, and although he looks like he's just left nursery, he has a lot of experience and, above all, a lot of courage."

    Argentina's outgoing governor of the province of Buenos Aires, Felipe Solá, on the new economy minister, Martí­n Lousteau.

    “The Concertación, due to the disloyalty and opportunism of people who were elected to represent (it), has lost its majority in the Senate_ and a right-wing coalition has taken shape."

    Chile's Camilo Escalona on the decision by fellow Senators from the ruling Concertación to vote with the opposition against funding Transantiago.

    “El Salvador is much more ideologically polarised than Guatemala, but there is a greater concept of nation and long-term vision."

    Guatemala's President-elect Alvaro Colom.

  • MEXICO: Cuban alleged to head Farc cell in Mexico

    13 March 2008 Hits: 394

    Although the Mexican government has formally only identified two of the dead at the Fuerzas Armadas Revolucionarias de Colombia (Farc) camp that was raided by Colombia on 1 March as Mexicans, the Ecuadoreans say that four of the 25 people killed in the raid were Mexican. One Mexican woman, Lucia Andrea Morett Alvarez, was found at the site alive. All but one of the Mexicans at the Farc camp were students. It is far from clear why they were there.

    Mexican intelligence sources claimed that a Moscow-educated Cuban engineer, Mario Dagoberto Dí­az Orgaz, heads a Farc cell in Mexico and arranged for the students to travel first to a leftwing conference in Ecuador and then on to the Farc camp on the border.

    Four of the five Mexicans at the Farc camp when it was attacked, including Morett, were students at Universidad Autónoma de México (UNAM). Mexican intelligence sources claim that they photographed Dí­az Orgaz on 5 March at the Quito hospital where Morett is recuperating.

    Dí­az Orgaz denies the allegations against him and says that he has never been to Ecuador. The intelligence sources claim that Dí­az Orgaz lives in Querétaro and works as a researcher for the engineering and industrial development centre, which forms part of the federal government's national council of science and technology.

    The whole story of the Mexicans at the Farc camp is mysterious and odd. President Hugo Chávez of Venezuela appeared to know that there were more Mexicans at the camp long before either the Ecuadoreans or Colombians realised the fact. The Mexican authorities have so far identified only two of the four Mexicans the Ecuadoreans say were killed at the Farc camp.

    The key issue is whether the Mexicans were there as Marxists or at the behest of Mexican drug gangs which probably have made commercial links with the Farc through the cocaine trade. The Mexican authorities' big fear is that the Mexicans were being trained by the Farc for guerrilla action in Mexico. What is not clear is whether the Farc was training them for Mexican drug gangs or militant leftwing groups.

    On 29 November 2007, the Mexican authorities arrested nine Colombians whom the Mexicans accused of having links with the Farc. Although the Mexican media has been quick to jump to conclusions, the Procuradurí­a General de la República points out that nothing has been proved against the nine and its investigations are still continuing. Significantly, the unit of the PGR which is handling this investigation is the Suprocuradurí­a Especializada en Delincuencia Organizada (Siedo), which prosecutes drug-related cases.

    The nine were arrested at Mexico City's airport and remanded in custody. They are still on remand for another three months, while the PGR continues its investigation.

    Separately, a Mexico City newspaper, Reforma, published a video made in 2004 in Mexico City which showed one of the Mexicans killed in Ecuador, Juan González del Castillo asserting his support for the Farc and opposition to the proposed extradition of a Farc leader, Simón Trinidad, from Colombia to the US.