Weekly Roundup: Bolivia in Crisis, Bombs in Mexico, and García in Brazil

Wall Street Drop's Effect on LatAm Growth

Latin American stocks and currencies suffered losses following Lehman’s bankruptcy, Merrill Lynch’s purchase by Bank of America, and AIG’s walk on a tight rope. Among those feeling the impact: Brazilian stocks declined more than 7 percent, Chilean commodity prices fell, and bonds in Argentina and Venezuela edged closer to default, reports the Latin Americanist. On a positive note, many analysts agree that Latin America finds itself better insulated than in the past against a U.S. financial crisis. Diversified markets and bilateral trade deals offer a cushion in the face of an economic slowdown, according to an analysis by Semana.

UNASUR Leaders Meet in Chile to Address Bolivian Crisis

South American leaders met in Santiago Monday to address violence in Bolivia that may have claimed as many as 30 lives over the past week. Conflict in the Andean nation provided the first major diplomatic test for the Union of South American Nations (UNASUR), a 12-member agency officially formed in May and with an EU model in mind. An Infolatam analysis says that while the ideals espoused at the Monday meeting were laudable, leaders made few concrete decisions that could help stop the crisis in Bolivia, where tensions between supporters and opponents of President Evo Morales boiled over.

Morales announced the arrest of the governor of Pando, the state that saw the worst of the violence, on genocide charges.

In his blog Pronto, political science professor Miguel Centellas sees “signs for optimism,” both in terms of negotiations between both sides in Bolivia. Yet Centellas also warns against weakened relations between Washington and La Paz at a time when Caracas boosts ties with Russia: “Bolivia needs to break free from the US orbit. But it does not need to be drawn into another geopolitical confrontation between world powers in which it will merely be pawn.”

Read AS/COA analyses of the Bolivian crisis and Russo-Venezuelan military ties.

Chávez’s Trip to China, Russia, Portugal

The Chinese Foreign Ministry announced that Venezuelan President Hugo Chávez will visit China from September 23 to the 25 in an effort to strengthen commercial ties, including plans for energy cooperation, reports Bloomberg. Chávez also plans to visit Portugal and Russia. The announcement of the travels comes shortly after the launch of joint Russo-Venezuelan military exercises that drew criticism from Washington.

Peru and Brazil Strengthen Commercial Ties

A Peruvian delegation headed by President Alan García visits Brazil on September 18 and 19 seeking hefty investments from Brazilian firms in Peru. Mining, manufacturing, and energy provide the most attractive industries for investors from Peru’s neighbor, which Brazil’s ambassador to Peru says could become Peru’s top investor during the course of the coming decade. García also plans to implement free-trade agreements with Canada, Singapore, and the United States by January 2009.

AS/COA hosts Brazilian President Luiz Inácio Lula da Silva on September 22. Visit our calendar page for more information about public events during the week of September 22 featuring remarks by the presidents of Paraguay, Colombia, and Argentina.

Bombings Disrupt Mexican Independence Day

Grenades detonated in Morelia, Michoacan during Mexico’s Independence Day festivities killed eight people and injured more than 100. Michoacan Lieutenant Governor Leonel Godoy announced that the attacks were linked to actions by drug cartels. Time magazine coverage notes that, while the gangs previously targeted police and officials, “they have never before staged mass-casualty bomb attacks targeting civilians in public spaces.” Mexico’s El Universal carries ongoing coverage of the attacks, including photo galleries and video.

Read AS/COA analysis of escalating violence in Mexico.

Hurricanes Devastate Cuban Growth Plans

The Financial Times reports that, half a year after the power transfer from Fidel Castro to his brother Raúl, the new leader’s pledges of economic growth have been “left in ruins” by hurricanes Gustav and Ike. Cuba’s president reformed the country’s farming sector and lifted wage caps since coming to power. But, on Monday, the government acknowledged that the hurricanes caused $5 billion in damage, making them the most destructive in Cuba’s history. Havana rejected a U.S. civilian aircraft filled with $2 million in humanitarian supplies, asking instead for a six-month suspension of the trade embargo—a move that would likely require congressional action.

Cuban-American Voters in the Spotlight

A paper by the Brookings Institution published in the Cuban Affairs Journal examines the Cuban-American electorate in advance of the U.S. presidential election. According to the analysis, the bloc’s overwhelming support of Republican candidates masks a diversity of opinions on social issues. The paper also takes into account differences in viewpoints between Cuban Americans with the right to vote versus more recent immigrants.

Immigration Activists Organize Against ICE Raids

The Los Angeles Times reports that new activist networks have sprung up to gather and share information about intended federal immigration raids in the wake of crackdowns in factories across the country.

Comparing Regulation in Latin American Economies

A new World Bank report examines indicators for doing business in Latin American countries, providing data for comparing countries, business practices, and regulatory reform.

The report is the sixth in a series of annual reports. At a September 11 COA event, World Bank Private and Financial Sector Vice President Sylvia Solf presented the findings of Doing Business 2009. View the presentation.

LAC Could Save Billions through Energy Efficiency

The Inter-American Development Bank (IDB) released a report showing that Latin American and Caribbean nations could save up to $36 billion over the next decade through investments in energy efficiency measures. “This would be the equivalent of reducing electricity consumption by 10 percent by the end of the next decade, with investments that would be modest in contrast to the cost of building the infrastructure necessary to generate, transmit, and distribute the same amount of electricity,” said IDB President Luis Alberto Moreno.

Polls Show Ecuador’s Constitutional Reform Likely to Pass

Approval for a new Ecuadorian constitution, to be voted on in a September 28 public referendum, appears to be on the rise. Polls show that since the last two weeks of August and the first week of September, support for the referendum grew from 53 percent to 57 percent.

Freedom of Expression in Latin America

In and interview with IPS News, UN Special Rapporteur on free speech Frank La Rue Lewy explains that social inequality serves as a primary obstacle to freedom of expression in Latin America. “There are large media outlets that operate very freely, but there are impoverished sectors in our societies that have no access to any media, nor to any means of self-expression,” said La Rue Lewy, who is Guatemalan. He also discussed the intersection of humanitarian law, justic, and journalism in a Latin American context.

Hollywood Explores Immigration Themes

Los Angeles Times provides an overview of recent Hollywood movies and independent films that tackle immigration as a central theme and explore the world of migrants crossing borders, life in the shadows in the United States, and perceptions about undocumented immigrants.