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The Council on Hemispheric Affairs was stablished to promote the common interests of the hemisphere, raise the visibility of regional affairs and increase the importance of the inter-American relationship, as well as encourage the formulation of rational and constructive U.S. policies towards Latin America.
Cristina Fernández de Kirchner Wins Re-election by a Landslide
Behind Every Great Man, There is a Great Woman
On October 23, 2011, Argentine President Cristina Fernández de Kirchner was re-elected by one of the widest margins in the country’s history. Sra. de Kirchner obtained fifty-four percent of the votes while her challenger, socialist Hermes Binner, acquired just seventeen percent. The provincial elections also confirmed the victory of Kirchner’s Peronist coalition; seven of eight governors were elected from the ranks of the ruling Frente para la Victoria.
Ultimately, the opposition had hobbled itself by failing to unite behind a single candidate. Rivals like Eduardo Duhalde, a dissident Peronist, and Ricardo Alfonsín, member of the Radical Civil Union, divided the anti-Kirchner vote. The most likely successful candidate would have been Mauricio Macri, leader of the center-right, had he not declined to run. Macri is probably working up to the 2015 election, for which Kirchner will no longer be able to run due to constitutional rules that do not permit a president to exceed more than two consecutive terms.
Kirchner’s successful re-election has been mainly due to economic growth under her administration, and this year alone, the growth rate is expected to increase to eight percent. This upward trend was stimulated in part by private consumption and investment, as well as the devaluation of the Argentine peso, which makes Argentine exports more competitive in foreign markets. Since Argentina defaulted on USD 95 billion of debt nine years ago, the economy has done remarkably well. From 2002-2011, according to IMF data, Argentina’s economy has grown by about ninety-four percent, the fastest economic growth rate in the Western Hemisphere.
In the international arena, Kirchner renewed contact with the IMF that Néstor Kirchner had previously broke off, and debt negotiations with the Paris Club, an informal group that provides financial services. The Kirchner administration also instituted subsidies for transport and utilities and introduced several social programs. One such program provides a monthly per-child economic subsidy to families of which parents are unemployed or work in the informal sector. This stipend is contingent on children’s regular school attendance, vaccinations, and health checkups. The Kirchner welfare policy has generally been a success, reducing extreme poverty and increasing employment to record levels.
However, critics of Kirchner contend that the economy is only booming due to high commodity prices and strong demand from China and Brazil, factors that may be undermined by a potential global economic downturn. In addition, political opponents of Kirchner have repeatedly accused her government of tampering with economic statistics. Argentina’s official annual inflation rate is nine percent; however, the IMF and other economists suggest that the true rate is three times as high. Critics also say that Kirchner has not been able to attract foreign investment. In fact, according to the United Nations Economic Commission for Latin America, Argentina receives relatively little foreign direct investment, lagging behind Colombia and Peru and receiving less than half the amount flowing into Chile.
In her victory speech on Sunday, October 23, 2011 in Plaza De Mayo, Kirchner said that she wanted to continue fostering Argentina’s strong growth: “All I want is to keep collaborating…to keep Argentina growing. I want to keep changing history.” She also mentioned her husband, stating, “This is a strange night for me; this man who transformed Argentina led us all and gave everything he had and more. Without him, without his valor and courage, it would have been impossible to get to this point.”
Despite the economic progress under the Kirchner administrations, a great deal remains to be done to reduce the existing gap between a rich minority and an impoverished majority and to reduce the high inflation. If Kirchner now wants to enable a durable and robust growth in Argentina, she must act to ensure the diversification of productive activities, as has transpired in Brazil and Chile. Similar to what happened in Chile with its exploitation of copper, the excessive dependence on the exploitation of raw materials could prevent Buenos Aires from breaking free of the so-called “resource curse” and prevent it from flying.
This analysis was prepared by COHA Research Associate Sara Bruzichis
The Infamous Link Between Sex Trafficking, Sex Tourism, and Sporting Events – What Lays Ahead for Brazil?
Every time there is a major sporting event, whether it is the Olympics, World Cup or Super Bowl, the illegal multibillion dollar business in the trafficking in persons flourishes. With thousands of people expecting to attend the upcoming 2014 World Cup and 2016 Olympics, Brazil has a challenging road ahead with the following preparations. Not only is the Brazilian government updating infrastructure, purging the favelas (slums) of drug lords, and modernizing stadiums, but it also has to put a great continuous emphasis on the social issue of child sex trafficking and sex tourism.
Brazil, with a population of approximately 204 million, is the largest country by far in Latin America. According to the U.S. State Department’s 2011 Trafficking in Persons Report, Brazil is acknowledged as a huge source, transit and destination country for the trafficking in persons. In short, human trafficking consists of the recruitment, transportation and harboring of persons by means of threat or other forms of coercion for the purpose of exploitation, in order for the trafficker to receive payments and benefits. Different forms of trafficking exists, however, with regard to its correlation with sporting events, sex trafficking is in first place.
The commercial view of Brazil is that it is a country of samba, football and carnival. Unfortunately, many tourists visit the breathtaking country not for its culture, but for its renowned reputation of exotically striking people and as a center of personal freedoms. This erotic picture of Brazilians has gained negative attention from inappropriate tourists seeking sexual experiences abroad, whether or not it is consensual or legal, – thus, the sex tourism begins.
The number of children involved in the sex industry has dramatically increased over the years. Presently, UNICEF states that approximately 1.2 million children are trafficked yearly, with as many as 2 million sexually exploited worldwide. According to Sarah de Carvalho of the charity, Happy Child International, “Brazil is overtaking Thailand as the world’s most popular sex-tourist destination”, increasing the number of children trafficked in and out of the country. This phenomenon has significantly developed as a direct result of an increase in the quantity of foreign tourists travelling to Brazil for the sole purpose of what is known as sex holidays, particularly in the northeast region. For instance, when asked about possible cases of sex trafficking with the upcoming festivities, Andreza Smith, lawyer of the NGO ‘Sodireitos’, stated, “Have you thought about a game in Manaus? Who will monitor the river?” Manaus is located in the northeast of Brazil, next to two major rivers, also popular as tourist destinations. With large rivers, comes the problem of human trafficking, since security seems to be lacking when it comes to monitoring river activities. Hopefully Brazil will look past their construction goals and tighten security measures in order to help decrease the presence of human trafficking during the events.
One might ask, does human trafficking increase during sporting events, or is it merely a matter of better security tactics that lead police to crack down on existing cases, leaving to a distorted image of the issue? This question may never be fully answered as it is difficult to differentiate the regular number of human trafficking cases, versus those that spike during sporting events such as the World Cup and Olympics. It is important to note that human trafficking figures are approximations, since the nature of the crime is hard to quantify, with numerous cases underreported. In order to attempt to answer this question, the previous sporting events such as the 2004 Greece Olympics, the 2006 Germany World Cup, and the 2010 South Africa World Cup, for example, should be examined to get a brief representation of the issue.
There seems to be a great deal of debate on the issue of human trafficking as associated with sporting events. When Greece hosted the 2004 Olympics, there was an alarming 95 percent increase in the number of human trafficking cases recorded during the event. However, when looking at the 2006 German World Cup human trafficking figures, according to a report by the Calgary-based anti-human trafficking NGO, The Future Group, “authorities implemented a wide range of actions to combat human trafficking during the event, with relative success. The result was that, while there was an increase in prostitution, authorities did not detect a rise in human trafficking.” On the other hand, South Africa’s 2010 World Cup revealed that there was in fact a pronounced increase in human trafficking cases. A source interviewed by ESPN’s ‘Outside the Lines’, revealed that there was an increase in domestic trafficking, as well as the setting up of brothels in preparation for the World Cup. Time magazine also ran an article quoting a trafficker who was excited about the world cup bringing in business, stating, “Yeah, this is good! Us people are going to make a lot of money then if you know what you’re doing.” Furthermore, Zambian researcher, Merab Kambamu Kiremire, predicted that human trafficking flowing over from nearby countries would increase in the run-up to the event.
Nonetheless, Brazil is expecting a sex trafficking boom in conjunction with the World Cup and Olympics and has created an arsenal of tactics to fight this problem. For example, the program, “A Goal for the Rights of Children and Teenagers”, will train employees in the tourist industry and police forces on how to detect human trafficking cases. Also, the anti-trafficking program will focus on educating resident teenagers around the hosting cities about the issue, how to avoid being easy prey, and finding alternate ways of earning money rather than becoming underage prostitutes.
Whether or not one believes in the rapid increase of reported human trafficking cases that will be associated with the above cited sporting events, it must remain a top priority for all future host countries. Human trafficking is a serious human rights abuse and needs to be taken seriously. With progress on the drug lords’ removal from favelas, the Brazilian government will hopefully now look to expedite anti-trafficking tactics in order to rid traffickers and minimize sex tourism anticipated in the approaching athletic tournaments.
This analysis was prepared by COHA Research Associate Melissa Beale
The Crooked Face of Corruption and the Monterrey Casino Arson Attack
On August 25, 2011 in Monterrey, Mexico, a devastating arson attack at the Casino Royale left 52 civilians dead. President Felipe Calderón quickly labeled the blow as “an act of terrorism” perpetrated by Los Zetas cartel. However, during his recent State of the Union address, Calderón’s position had seemed to have changed as he deemphasized the violence perpetrated by his country’s cartels. Due to the recent arrests of Jonas Larrazabal, the mayor of Monterrey’s brother, and a Nuevo León police officer, attention was centered on implications pointing to police and politician involvement. The evil face of political corruption has shown itself once again, this time tied to a national tragedy, further blurring the lines between thugs and officials in the country.
The many faces of corruption, however, are something new when it comes to the political climate in Mexico. José Cuitlahuac Salinas, an employee of the federal prosecutor’s office, has made the claim that Miguel Angel Barraza Escamilla, a state police officer, was one of the occupants in a vehicle that was parked in front of the Casino Royale while it was being attacked. Based on surveillance video footage, Escamilla parked at the entrance of the casino while the attack was occurring and waited as many as 19 seconds before quickly driving off. This type of suspicious behavior, especially refusing to offer assistance to those amidst the flames, leads officials to suspect that Escamilla is somehow directly connected to the attack.
Larrazabal has also been taken into custody following the release of a video showing him receiving large amounts of cash at three different casinos. A brief comment from Larrazabal’s lawyer argues that his client enjoys casinos, and received the money as payment because he has sold the casinos comestible products such as liquor and cheese. It is estimated that during at least one of the visits, Larrazabal collected 40,000 pesos from an unknown person at a gaming table.
Venality involved in the ongoing “War on Drugs” has, without a doubt, delegitimized Mexican law enforcement. Due to the lack of accountability and trust between the government officials and the police force, the Mexican government has often deployed branches of the military to manage the cartel violence throughout the region. On Wednesday, August 31, 2011, the Mexican Senate passed a resolution demanding widespread investigations into Mexican casinos, in hopes to discover a link between casinos and instances of corruption. As a result, security forces have confiscated 1,500 slot machines from 11 different casinos since the arson attack.
President Calderón has taken even more drastic steps in addressing the ever-growing, blurred distinction of legitimacy within Nuevo León and its capital, Monterrey. He sent letters to the governor of Nuevo León, Rodrigo Medina, and to the mayor of Monterrey, Fernando Larrazabal, suggesting they temporarily leave their positions, so that the investigation into last month’s deadly casino arson attack may be conducted thoroughly and with integrity.
One may ask why there is so much corruption in Mexico, and why the situation there never seems to improve, despite Mexican authorities’ desperate attempts to tackle the problem. In Nuevo León, Los Zetas cartels’ familiarity with the low income of police officers allows them to wholly take advantage of the complicity between police officers and citizens. “Mexico’s top federal policeman, Genaro Garcia Luna, has estimated gangsters pass out some $100 million each month to local and state cops.” This type of pay out can be especially appealing to local law enforcement officials, whose average monthly income is only $350 a month. Therefore, wages are routinely supplemented with bribes in exchange for connections between cartels and local and state law officials. In addition, “Carlos Jáuregui, who was Nuevo León’s chief security official until March, reckons that more than half the officers in the state were being paid by organized crime.” Monterrey, the industrial hub of Northeastern Mexico, was once considered a relatively safe place, free from the influence of the cartels. Now, violence and corruption have completely spiraled out of control and will, regrettably, dominate the region for years to come.
With Mexico’s presidential election approaching in July 2012, concerns abound over the candidates’ will to confront cartel violence and police corruption. While discussing the nation’s political future, a Sinaloan police officer stated that “Mexico’s reputation as a gang-ridden narco-state run by a disconnected and corrupt leadership is perhaps the most serious issue that his [Calderón’s] successor will have to confront.” Since President Felipe Calderón first enforced his national crackdown on drug cartels throughout Mexico in 2006, over 40,000 people have been killed in drug-related violence. Efforts are currently under way to restructure the Mexican police force before Calderón’s term ends in 2012, but significant progress does not look promising as the full process of reform is expected to take years. Despite these promised reforms, it is unlikely that the corruption plaguing areas, like Monterrey, will easily improve.
This analysis was prepared by COHA Research Associate Candiss Shumate
Scientific Progress at an Inhuman Cost
From 1946 to 1948, the United States conducted medical research in Guatemala to determine the effectiveness of penicillin in preventing and treating sexually transmitted diseases, including syphilis, gonorrhea, and chancroid. To carry out their study, U.S. researchers knowingly infected Guatemalan prisoners, prostitutes, mentally ill patients, and soldiers with multiple illnesses by means of experimental inoculations and direct contact with infected participants. More than 1,500 subjects were exposed to a variety of diseases and were given little to no information about the study. Of those infected, about 700 were treated with what was considered the modern wonder-drug, penicillin. Following the historic Nuremberg Trials in 1945-1946, a consensus on international ethics was achieved, but at the time of the Guatemalan experiments, these agreed-upon standards were not in effect.
In June 2010, Professor Susan M. Reverby of Wellesley College exposed the unethical experiments in Guatemala, relating it to the Tuskegee experiments in Alabama (1932-1972), in which African-Americans were secretly injected with syphilis-causing bacteria without informed consent. Moreover, the subjects were not effectively treated despite the existence of a penicillin treatment. The studies in both Guatemala and Tuskegee were supported by the U.S. Public Health Service (PHS) and were overseen by the same man, Dr. John Charles Cutler. Even worse, the experiments in Guatemala were funded by the National Institutes of Health and the Pan American Sanitary Bureau in collaboration with several Guatemalan government agencies.
Although more than sixty years have passed, archives related to the work have surfaced only recently. What were the researchers trying to hide by not publishing the study? What convinced Cutler to archive the records decades after the experiments? Professor Reverby turned up evidence that Dr. Cutler stated in a letter to PHS Physician R. C. Arnold, “we are holding our breaths, and we are explaining to the patients and others concerned with but a few key exceptions, that the treatment is a new one utilizing serum followed by penicillin. This double talk keeps me hopping at times.” In another letter, he admitted that “a few words to the wrong person here, or even at home, might wreck [the study] or parts of it.” Cutler was aware that the research was intrinsically unethical and he deliberately suppressed information.
Cutler and the other researchers on the Guatemala project infected subjects with life-threatening germs withoutinformed consent, even though an ethical standard was recognized. In 1943 and 1944, Cutler was involved in similar syphilis research performed at the U.S. Penitentiary in Terre Haute, Indiana. Prisoners signed consent forms to participate in the study in exchange for commuted sentences or monetary compensation. The study was later discontinued in Terre Haute, only to soon commence in Guatemala. Cutler, as well as the other researchers and funders hoped that a life-saving discovery in Guatemala would justify the controversial scientific investigation techniques conducted in Indiana. In addition to the unconsented involvement of prisoners, soldiers, psychiatric patients and prostitutes, Guatemalan children from an orphanage and school were involved in serological experiments without their parents’ consent. Cutler and his team of practicing medical professionals knew that the experiments were at the very least highly questionable, yet they proceeded with them.
Since the original records have been unearthed, The New York Times reported that at least 83 people had died from the experiments. Because of the inconsistency of the records, a final accurate number has not been determined. In September, the Presidential Commission for the Study of Bioethical Issues published a full report of the study. In one particular case, a woman was deliberately infected in the eyes, urethra, and rectum, even though it “appeared [that] she was going to die,” which she did soon after. Adding to the terror of the experiments, seven Guatemalan epileptic women were injected with syphilis in the back of the neck through the method of cisternal puncture to test a theory that syphilis could cure epilepsy. Two test cases had severe headaches, one was paralyzed in the legs; five received preventative penicillin after the injection, one of whom died; one did not receive treatment.
The medical studies conducted in Tuskegee, Terre Haute, and Guatemala were unethical in the extreme. Advocates for the Guatemalan parties have insisted that they deserve more than mere verbal apologies from Washington, while the U.S. cannot officially undo their actions. Some of the surviving victims and their families continue to suffer. These researchers transmitted diseases to thousands of Guatemalans without proper treatment, which brought on grievous health issues. Even though apologies are profoundly necessary, those affected must be compensated for the subsequent costs of healthcare and for their psychological and physical suffering. There is no telling what other unethical studies have been archived and are waiting to be revealed. While nothing can undo the tragedy that these victims of human subject studies endured, the U.S. should at the very least set up a fund as a means of beginning to provide redress for the cases that have since surfaced.
This analysis was prepared by COHA Research Associate Linnea LaMon
U.S. Citizens and Brazilians Flock South
Brazilian immigrants are returning home to a bustling economy that offers better financial opportunities for Brazilian natives and foreigners alike. As competition for jobs in the U.S. has become increasingly fierce, many Brazilian-Americans have been persuaded to return home, where obstacles such as work visas, English fluency, and not to mention prolonged separation from family, are absent. Due to a historically low unemployment rate of 6 percent and earnings back home that have risen 170 percent since 1999, Brazilian immigrants are returning to their native construction, manufacturing, and service industries, which in the United States have been crippled by the ongoing effects of the recession.
Despite the global economic downturn, in 2008, the Brazilian economy rebounded quickly and has maintained steady growth. Brazil now leads Latin America with the world’s seventh largest economy, rising to prominence on the global stage. During the economic turmoil of the 1980s that swept Latin America, many Brazilians emigrated to the United States in hopes of achieving their own versions of the “American Dream:” an idealistic goal no longer possible in today’s stagnant U.S. economy. Subsequently, the Brazilian Diaspora is now beginning to return home for better economic opportunities. Recently, airlines have noted that a higher number of Brazilian migrants are now purchasing one-way tickets during the winter months when the need for U.S manual labor slows down.
As the number of Brazilians flocking home increases, the population of Brazilians in the U.S. decreases. According to the Yearbook of Immigration Statistics, the amount of legal permanent residents who emigrated from Brazil to the U.S. has decreased from 14,701 residents in 2009 to 12,057 in 2010.” As Brazilians return home for better employment opportunities, U.S. citizens have followed suit, seeking the benefits of a potential “Brazilian Dream”.
Motivations Behind U.S Migration to Brazil
Americans are arriving in Brazil with a gold-rush mentality, determined to make profit. In the first six months of 2010, more than 4,300 U.S. citizens received working visas from Brazil’s labor ministry, an increase of twenty percent over the previous year alone.
U.S. bankers, hedge fund managers, oil executives, and engineers have fled to large metropolitan cities such as Rio de Janeiro and São Paolo in search of jobs. U.S. and foreign investors have been particularly attracted to Brazil’s oil discoveries. Meanwhile, the demand for jobs in information technology industries is also high. Brazil still needs about 60,000 new engineers and as a result the government has been soliciting U.S. and other foreigner workers to fill these needed skilled positions. Jobs in mining, infrastructure, retail, and finance have also attracted trained workers from all around the world.
According to the New York Times, salaries in Brazil “are at least 50 percent more than salaries in the U.S. for strategic positions.” Last year, Brazil’s economy increased 7.5 percent and is expected to grow by four percent this year. Despite the more favorable opportunities found in Brazil, US citizens heading south will face issues not encountered in the States. These include an overheating of the Brazilian economy and the high appreciation of the Brazilian Real. Americans also have to compete for jobs with homeward-bound Brazilians as labor legislation favors hiring a Brazilian worker over a foreigner.
For immigrants, obtaining a Brazilian work visa can be a lengthy process. Still, U.S. citizens are attracted by an alluring culture, the Portuguese language, the hospitality of the Brazilian people, and the upcoming 2014 World Cup and 2016 Olympic Games. Despite these attractions, U.S. President Barack Obama’s new economic stimulus plan may alter the currently increasing immigration rate to Brazil.
Future Projections for Migration Patterns to Brazil
On Thursday, September 8, 2011 Obama outlined several goals for his stimulus plan, specifically geared toward creating more jobs to jolt the economy. If passed the stimulus plan will provide more summer jobs for young workers, invest USD 35 billion in local communities for more teachers and expanded healthcare, and provide businesses with USD 4,000 in tax credits to those unemployed for a period of six months or more. If the stimulus plan is passed and expands economic opportunities in the U.S. as intended, we can expect the mad dash to Brazil to abate. However, Brazil’s rise has turned it into a global destination of considerable gravity, particularly for those seeking a broad spectrum of economic opportunities.
Written by COHA Research Associate Denise Fonseca
Rousseff Needs to Take Proactive Stance Against Corruption
When Brazilian President Dilma Rousseff took office on January 1 of this year she pledged to fulfill the demands of the Brazilian people to reform the political status quo. Her pledge against corruption was tested as allegations of misconduct arose in her ministry. She reacted to the allegations of venality by forcing three of her ministers to resign between the months of June and August. However, at the end of August, in an attempt to reunify her coalition government, Rousseff toned down her iron determination to confront the abuse of public office and vowed not to force any more resignations. Even this promise proved impossible when her Minister of Tourism was accused of misusing public funds. Rousseff reacted appropriately by forcing the Minster of Tourism to resign on September 24. To successfully combat corruption in her government, however, Rousseff must proactively root out misconduct in her administration. By hesitating to take an active position against corruption in an attempt to avert the fragmentation of her coalition government, she is ignoring the long-term benefits of an honest government for Brazilian society.
A culture of corruption within Brazilian government has had a costly impact on the economy. The Federation of Industries of São Paulo estimated that corruption costs the nation between 1.38 and 2.3 percent of its total GDP each year. From 1990 to 2008, the siphoning of public funds for personal enrichment prevented GDP per capita from growing an additional 15.5 percent. The study went on to conclude that, had Brazil realized the gains of more efficient public spending, its GDP per capita would have been USD 9,184 in 2008 rather than USD 7,954.
Incensed by the political disregard for society, in June 2010 the Brazilian people presented a petition with 1.6 million signatures to Brazil’s Congress that demanded political reform. Under pressure for such reform, Congress passed the Clean Record Law, “Ficha Limpa.” The law bars any person who has been convicted (or who has pending allegations) of one of a range of crimes, including electoral fraud and misuse of public funds, from running for elected office. When Rousseff took office she gave the Brazilian people even more hope for a cleaner government: “It is my duty as President of all Brazilians to see an end to the impunity which shelters many of those accused of involvement in corruption practices. We will punish all abuses and excesses.”
Despite her tough demeanor and putative intolerance for corruption, Rousseff has only reacted when the media has highly publicized specific cases. In June, when Brazil’s largest daily newspaper Folha de São Paulo reported that Chief of Staff Antonio Palocci’s income increased twentyfold from 2006 to 2010, Rousseff hesitated to act because of Palocci’s importance in the government, especially in the economic sector. Reports claim that Palocci illegally solicited his services as a corporate consultant on political matters while holding a position as a federal legislator. Although the Attorney General did not manage to bring a conviction against Palocci, he did get him to resign.
After the Palocci scandal, the Brazilian weekly magazine Veja brought to light two more cases of venality within the Rousseff administration. The magazine reported that the transport ministry had systematically overbilled contracts. After her reluctance with Palocci, Rousseff reacted quickly. Four days later, Transport Minister Alfredo Nascimento was forced to resign. A few days later, Veja published another report, this time targeting the agriculture ministry for similar overpayments. Agriculture Minister Wagner Rossi of the Brazilian Democratic Movement Party (PMDB) was also forced to step down. Although Rousseff’s response was faster in these cases of misconduct, she still merely reacted to media coverage, rather than proactively pursuing a clean administration.
Although many Brazilian people have expressed their support for Rousseff’s anti-corruption initiatives (her public opinion ratings remain strong at 70.2 percent), according to Folha, on August 23 Rousseff pledged not to fire any more ministers. Former Congressman Fernando Gabeira commented, “President Dilma seems to be torn between not aggravating her allies – some of whom are compromised by corruption – and satisfying the needs of the people, especially now that we face a global economic crisis.” On August 2, the Party of the Republic (PR), to which the former Transport Minister belongs, broke away from Rousseff’s coalition. PR is a small party, so the loss was not particularly noteworthy. Nevertheless, future ruptures could cause major problems for Rousseff’s collection of parties. Rousseff’s announcement seemed to indicate that she would focus on short-term unity in her government instead of concentrating on the long-term benefits of an honest government by seeking out misconduct.
Despite Rousseff’s vow not to force additional ministers out of office, on September 14, Tourism Minister Pedro Novais was forced to resign after allegations arose of misuse of public funds to finance a personal maid and a driver for his wife. Rousseff’s promise was an obvious attempt to reunify her government, but it would have offered impunity to many of her allegedly corrupt government colleagues. Thankfully, Rousseff did not stick to her promise and responded appropriately to ensure Novais’ resignation.
Even though Rousseff’s reactive responses to the corruption cases are a bigger step than any former Brazilian president has taken to end dishonesty in the government, Rousseff needs to take the fight further. It is time for Rousseff to end her reactionary, media-influenced actions and take a strong, proactive stance against corruption. Even though she has duty to her broad political coalition, Rousseff must not compromise her convictions on fundamental issues, especially when confronting corruption.
Written by COHA Research Associate Katie Steefel
In Paraguay a Familiar Story is Playing Out
Cattle Ranching in the Paraguayan Chaco
In Paraguay, the Ayoreo people are fighting for their very survival. These indigenous people are struggling to save their ancestral home in the Chaco region from cattle companies, farmers and religious sects who are moving into the region and clearing the land. New arrivals do this to make the land suitable for farming and grazing cattle. The combination of burning and then bulldozing the land leaves the region barren.
The Chaco region in southwestern Paraguay is one of the most inhospitable lands in South America; while it composes 60 percent of the country’s area, it is inhabited by only two percent of the Paraguayan population. Popular filmmaker and conservationist David Attenborough has praised the beauty of Chaco calling it “one of the last great wilderness areas left in the world” and called for its protection due to the many plants and animals that inhabit its dense forests.
The preservation of forested areas is not only vital to sustaining the region’s biodiversity; the survival of the Ayoreo people also depends upon it. It is not simply a matter of the Ayoreo people moving somewhere else. The territory called Eami in their language, is tied to their history and very identity and thus valued as sacred. As one of the members of the Ayoreo point out, “Our history is etched in every stream, in every waterhole, on the trees…our territory expresses itself through our history because the Ayoreo people and our territory are a single being.”
While the Ayoreo people were legally awarded some disputed land by the Paraguayan government, two Brazilian beef corporations, BBC S.A and River Plate S.A are refusing to hand over the land until they are sufficiently compensated. These companies are seeking permission to clear a large area of land bordering on the Ayoreo’s. This will mean fencing the Ayoreos in to a smaller area, marginalizing them even further. Although many Paraguayan officials support expanding the cattle and farming industries throughout the Chaco as a means to boost the economy, the long-term damage to the nation from both a human rights and an environmental perspective would be catastrophic. The practice of slash and burn agriculture will only bring short-term benefits at the expense of Paraguay’s ecology and the destruction of the Ayoreo people.
The Ayoreo-Totobeigosode, a sub community of the Ayoreo, is one of the last uncontacted groups in the world, Brazilian beef corporations, wealthy farmers, and Mennonite communities seeking remote areas in which to live a life based on a literal translation of the bible are encroaching on the Ayoreo lands. In the 1950s, the Ayoreo people lived in an area 2,800,000 hectares; now they claim only 550,00 hectares – a loss of nearly 80 percent. According to the BBC, over 1 million hectares have disappeared since 2007. Moreover, the new arrivals into the Chaco region have brought diseases, such as measles that were previously unknown to the Ayoreo people.
Members of the Ayoreo-Totobeigosode
Both BBC S.A and River Plare S.A have been caught twice by satellite imagery of illegallyclearing protected forestryin Chaco. Yaguarete Pera, another Brazilian cattle corporation in the region was found guilty of deforesting the region and concealing evidence of the displace Ayoreo’s former presence. No stranger to controversy, Survival International awarded Yaguarete Pera their 2010 ‘Greenwashing Award’ for “dressing up the wholesale destruction of a huge area of the Indians’ forest as a noble gesture for conservation.”
Survival International issued a report to the United Nations’ Committee on the Elimination of Racial Discrimination (CERD) on 10th August, 2011 stating that the Ayores-Totobeigosode face the “imminent danger” of extermination. There are only 5,600 Ayoreo Indians left today with about 3,000 living in Bolivia and 2,600 in Paraguay. The Ayoreo people were lured out of their homes and into modern society with promises of a better life; many were dragged out forcibly. As Aquino Picanerai, a member of the Ayoreo recalled, “they brought us to the world of the white people and locked us up in this concentration camp.” Lacking the necessary skills to thrive in modern society and disenchanted with their situation, these indigenous people have since returned to their more traditional way of life. Others rejected modernity from the start, opting never to leave the forest, hoping to remain hidden and unmolested from the outside world. Sadly this will not be the case. Rising beef profits and the availability of cheap land continues to bring speculators seeking fortunes into the region.
Certain government officials in Paraguay have expressed the need for investment and claim that the human rights and deforestation situation has been exaggerated. Paraguay’s weak laws facilitate the wholesale destruction of the forest. Under current Paraguayan laws an individual or corporation is allowed to clear forest on up to 75% of its land. They may then sell the remaining 25 % to another entity who is entitled to clear 75% of that plot. The process leads to the complete destruction of that land. Last year, Paraguay’s congress failed to pass a law that would have placed a ban on deforestation in the Chaco region.
In an attempt to explain public silence on injustices being perpetrated in the Chaco region, Benno Glauser, the Director of Iniciativa Amotocodie explains “public opinion has no opinion on the matter”. The Chaco is at the periphery of a country of little international importance. Even in Paraguay, the Chaco does not embody the homogenous Guaraní society composing the majority of the population – more than 98 percent of Paraguayans are either mestizo or of primarily European descent. In contrast, the wilderness of the Chaco is sparsely populated by indigenous tribes and religious isolationists. In the public discourse, the cause to save the Ayoreo remains an obscure impediment to economic development. If this matter continues to fall on deaf ears then the allure of profits at the expense of humanity will prevail.
Written by COHA Research Associate Sean O’ Leary
Cuba Swaps Barter for Genuine Homeownership
At its sixth congress on April 19, 2011, the Communist Party of Cuba approved a series of economic reforms that could breathe new life into an economy damaged by the world financial crisis, large-scale natural disasters, and a strong, historical dependence on imports. These plans reflect the government’s eagerness to “break the mentality of inertia,” as Cuban Vice President José Ramón Machado remarked during his speech celebrating the 58th anniversary of the Cuban Revolution.
One of the boldest proposals incorporated in the legislation, designed to liberalize the Cuban economy, is the legalization of the buying and selling of private property. Set to take effect by the year’s end, this measure constitutes a striking departure from the present bartering practice known as a permuta, or a property swap in which supposedly no money is exchanged. The system is in line with characteristically Cuban socialist values since it theoretically involves only the exchange of properties of equal value, thereby precluding any monetary transfer. The reality, however, is that these swaps fuel a black-market real-estate sector in which unofficial brokers known as corredores maintain a clandestine database of listings (classified listings are illegal), which they use to assist potential buyers and sellers swap properties of distinct values. Brokers are happy to facilitate these illegal exchanges for anywhere from several thousand USD to USD 40,000. One Cuban woman shelled out the equivalent of an estimated USD 3,300 for an apartment three floors below and with one more bedroom than the one she originally owned. This would normally be an exorbitant amount to pay, considering the average monthly salary in Cuba is twenty dollars. It is worth noting that this woman’s husband works for the Housing Department, so their new home was most likely paid for with bribes that he himself received.
Another disadvantage brought about by Cuba’s current restriction on the sale of real estate—which eliminates the opportunity for Cubans to earn a profit off of their property—is a sluggish construction industry. The slow pace at which new buildings are erected continues to exacerbate the housing shortage, which has led to overcrowding along with substandard living conditions. Demography expert Sergio Díaz-Briquets estimates a 1.6 million-unit housing deficit nationwide (Cuban statistics show the number to be about 500,000), and architect and former Director of Urbanism and Architecture in Cuba Mario Coyula notes that there is not a single unoccupied residence in Havana. Reinvigorating the construction industry will not only ease the overcrowding issue, but it will also create jobs. A property-market makeover could produce enough wealth and revenue to turn Cuba’s economy around.
Of course, the government has already outlined stipulations that qualify the measure, such as imposing a property limit of one unit per person. Indeed, President Castro stated that “the role of private property would be small to avoid capitalism and its hunger for luxury.” While the Castro regime is not willing to completely cede state power over the economy to the free market, it acknowledges that the country’s precarious future rests on certain fundamental changes to its current policies, even if some appear to belie Cuba’s socialist values.
Liberalizing the housing market will affect Cuba in several key ways. At an economic level, an open real-estate sector eliminates the black-market middle man and legitimizes the industry, which allows the government to increase its revenue in the form of property taxes. Remittances from Cubans living abroad are also expected to rise after the measure is implemented. Today, Cuban emigrants send home an estimated USD 800 million to USD 1.5 billion annually; this number is only expected to grow once they have the ability to invest in real estate.
While the above implications and statistics are of great interest to the government, it is important to acknowledge how an open housing market will affect Cubans as individuals. On a personal level, an open housing market will change the way Cubans perceive homeownership. Whereas housing is a basic right under socialism, this new system will transform homes into genuine assets off of which Cubans can profit, if they choose. Once the government’s role in the affairs of real estate is reduced, the heightened sense of ownership could foster feelings of pride in one’s home not possible before this reform. However, as people relocate based on property prices and the freedom to choose better homes, neighborhoods of distinct social classes will inevitably start to develop.
Although the amount of economic prosperity and freedom that a more liberalized market will actually bring is unclear, the Communist Party’s uncharacteristic decision to pass this list of reforms indicates that dismantling Cuba’s heavily regulated economy is vital to state survival. Hands made weary by a slow economy and a bloated public sector no longer hold the same grip they once exerted on a post-revolutionary Cuba. Other nations may even interpret the government’s proposal as a harbinger of nascent capitalism. If the current privatizing reforms continue, the country may soon experience deepened social inequality among other the problems that open markets bring. But, nonetheless the potential gains in economic productivity and competition could make these side-effects well worth it.
Written by COHA Research Associate Lauren Paverman
The Humpday Brief
A midweek round up of Latin American News
Political Flack and Support: The Chilean Citizen is a Critical One,
Chilean Protests: Nurturing the Politicians of the Future and “New Type of Citizen”
These are the largest protests since the call for Pinochet to step down. A more ‘critical citizenry,’ willing to challenge a government of political consensus is emerging. Chileans demand improvements in the quality, not solely the quantity of Chilean institutions and social services.
Camila Vallejo, a charismatic 23 year-old nose pierced rebel punk, emerges as one of the main leaders of the ongoing student protests demanding massive increases in government spending to improve a less than equal education system. She and many of her colleagues may represent the next generation’s political leaders focused on critically challenging the performance of the government in ensuring opportunities for its citizens, rather than accepting political compromise meant to appease the elite.
Although the government agreed “to amend Chile’s constitution to include a guarantee of quality education and cutting interest rates on student loans from 6.4% to 2%, [in addition to] the promise of an extra 1.9 trillion Chilean pesos (£2.5bn) in education spending,” they have been unable to quell the uprising
In the words of Vallejo, “here we have more than 50m pesos worth of tear gas. Imagine how much was used on the regional or the national level? This is inacceptable, we want to reiterate our demand that we made to the minister of the interior that he step aside.”
Bolivia: Stay out, but give me more
Marches move from all sides: Morales under fire from the Amazon to the Sierra. The tide of indigenous peasant marches swells, covering multiple parts of the Andean nation.
In the low lands, a collection of Indigenous peasant organizations gathered in a 300+ mile march, in defiance of the President’s desire to construct a road through the TIPNIS Autonomous National Reserve. However, many “CSUTCB cocalero leaders who support the road have threatened to organize counter-mobilizations to block the march along the way.”
Meanwhile, in the mining city of Potosi, protestors are demanding more. “A broad coalition of cooperative miners, peasant associations, and indigenous groups led by the civic organization COMCIPO held a massive demonstration to protest the government’s lack of progress in implementing the regional economic agenda agreed to last August, following a 19-day civic strike.”
Their demands include the odd international airport, cement factory, metal processing plant, resolution on an “inter-departmental boundary dispute with neighboring Oruro, and the preservation of Cerro Rico.”
Foreign Policy: Lending a Hand to Gadhafi as Many Move on
Santos and Rousseff: Casting Aside four Decades of Autocracy
Colombia and Brazil have broken ties with Gaddafi’s representative at their Libyan embassies and have declared “full solidarity with the ongoing efforts under the leadership of the [National Transition Council] NTC.”
Chavez, Corea, Ortega: Condemning Imperialism
All three leaders continue to support the ghost of Gaddafi’s regime in what they see as a typical display of Western interventionism. As for the rebels: merely agents of imperial ambition.
“We recognize only one government: the one led by Moammar Gadhafi,” said Chavez, speaking during a televised address. “Without a doubt, we’re facing imperial madness.”
Ortega went so far as to offer Gaddafi asylum. He might blend in nicely among the other expats residing in Granada.
Iran and Venezuela: Petrochemical Brothers
Agreed to commence joint construction on a number of petrochemical plants.
Society and Economy: More Rights, More Deals
Peru: Expansion of Asian Trade and Law of Consultation
Peru engaged in more dialogue with the Asia-Pacific Economic Cooperation (APEC) and other Asian economic communities with the goal of deepening ties and encouraging investment. Much of this investment will most likely be in Peru’s hydrocarbons, minerals and metals (M&Ms), and other things that explosively expanding industrial powers crave.
Meanwhile, congress passed the Law of Consultation, which seeks to strength the power of rural communities to challenge mining and other extractive projects that threaten their homes. The law would give these communities the opportunity to bargain directly with international corporations and the like. While Garcia had revoked past approval of this law, expressing concern that it would discourage investment and hence ruin Peru’s ten year economic boom, many argue that creating a peaceful forum for investors and locals will end the instability caused by bloody confrontations. So far, 100 people have been killed in clashes. Therefore, this initiative may foster a better investment environment over the long-term.
Argentina: Falling Unemployment Statistics Shadows Reality
According to the argentine government, unemployment fell from 7.4 percent to 7.3 percent in the month of July. But Cristina Fernandez is boasting hollow numbers that don’t represent the true condition of the argentine labor force. While official unemployment may have fallen, this figure does not take into account the more than 25 percent of the labor force engaged in the informal economy. Another pointer: these statistics may be bogus all together. Fernandez’s administration is no novice book cooker.
Furthermore, “The government has forecast economic growth for the full year of 8.2%. That follows 9.2% growth in 2010.”
Commodity Seesaw: Corn and Soy Beans
“Although soybeans will still remain the dominant crop in terms of acreage, we expect a slowing down of the growth,” Oil World said. “The biggest expansion is likely to occur in corn. This year soybeans are facing greater competition not only from grains but also from other oilseeds.”
“The total grain area in Argentina will rise 7.5 percent to 13.3 million hectares as oilseed planting climbs 3 percent to 21.7 million hectares, Oil World said. Brazil’s grain seeding will rise 3.5 percent to 20.5 million hectares and the oilseed area will expand 2.2 percent to 26.5 million hectares, it said.”
Bolivia’s S & P credit rating promoted to “Kinda investment Grade”
Mr. and Mrs. S & P give ol’ Bolivia a B+, its highest grade yet, but still four steps below investment-grade status.
In general, Morales’ administration has pulled off three things very well. According to S& P, “[Bolivia] developed a track record of prudent macroeconomic policies that support moderate economic growth with steady inflation,” while reducing public debt as a percentage of GDP.
Export growth in combination with significant foreign investment in infrastructure and industry has improved the credit rating of this once debt laden nation. Recently, Bolivia received a $2.1 billion investment by India’s Jindal Steel & Power Ltd. in what might become one of the largest iron ore mines in the world.
However, and this is a big however, the nations’ overall infrastructure still resembles that of Afghanistan.
Underworld: Favoritism, State of Emergency
Mexico: Everybody’s Favorite Cartel
Mexicans and Americans alike are raising concerns that their governments’ have been favoring certain cartels, such as Sinaloa over Los Zetas. With so much focus on the increasing power of Los Zetas - the former enforcement arm of Gulf Cartel made up of deserters from Mexico’s Special Forces - enforcement efforts have seemed to favor the more well-established and in fact larger Sinaloa Federation. One reason may be the sheer amount of mass killings committed by Los Zetas, which implies a lack of control on the part of the Mexican government. Mexico is prioritizing the organization that is perceived to pose the largest threat to society.
Another morsel of thought: Sinaloa prefers to bribe officials, while Los Zetas fancy them in body bags.
Trinidad and Tobago: State of Emergency
At midnight on Monday, Trinidad and Tobago declared a state of emergency following a weekend crime spree (20-21 Agust), that left 11 people dead. The declaration is responding to the growing prevalence of organized crime in this impoverish Caribbean nation.
“40 criminal gangs operated in Trinidad & Tobago in 2004, this figure has since risen to 86 according to official government estimates. The country’s homicide rate has surged from 19.79 per 100,000 inhabitants in 2004 to 37.79 per 100,000 inhabitants in 2009, according to the most recent figures cited in the 2011 Organization of American States (OAS) ‘Report on Citizen Security in the Americas.’”







