Weekly Roundup: Bolivian Autonomy Vote, Cuban Party Congress, and FDI in Brazil

Diplomatic Emissary Arrives in La Paz

Bolivia is bracing for a May 4 referendum for autonomy in the eastern and energy-rich province of Santa Cruz, where government officials fear the vote could spark civil war. Dante Caputo, a special envoy sent by the Organization of American States, arrived in Bolivia to foster open discussions among Bolivian President Evo Morales’ government and the energy-rich province’s leaders. The Democracy Center’s Jim Schultz, offering an in-depth look at the referendums, writes, “In the current three-ring circus of Bolivian politics, regional autonomy is in the center ring.” 

Mexican Congress Reopens

On Friday, the opposition-led blockade of both houses of Mexico’s Congress ended as lawmakers from across the political spectrum made clear their frustration with the takeover, akin to a filibuster in the U.S. Congress. Lawmakers agreed to engage in a 71-day debate on the matter beginning May 13, although the rules of the debate remain in doubt. Mexico's constitution bars the state-owned oil firm Pemex from partnering with foreign oil companies, but supporters of the reform note that these firms have the technology and expertise needed in Mexico to stem a drop in oil production and enhance Pemex’s exploration abilities in the Gulf of Mexico—a crucial improvement if Mexico is to remain an oil exporter.

A recent AS/COA Online analysis examines the debate over Pemex’s reform.

LatAm’s Least Corrupt Oil Companies

A new report from Transparency International  rated Pemex and Petrobras as the least corrupt and most transparent oil companies in Latin America, while Venezuela’s PDVSA received the worst ratings.  

Buyouts and Blackouts in Caracas

On Tuesday, Venezuelan legislators declared Ternium Sidor, the country’s main steel maker, a “public utility,” thereby making the necessary legal prerequisite for expropriating the firm. The company, based in Luxemborg, is controlled by Argentine conglomerate Techint. Also on Tuesday, a three-hour blackout resulted in a loss of power in 13 states and effectively shut down Caracas. The power outage was caused by a transmission line failure resulting from a forest fire.

New Mexico Governor Bill Richardson met with Venezuela's President Hugo Chávez and Foreign Minister Nicolás Maduro in Caracas Sunday, saying the Venezuelan leader may be able to help negotiate the release of three Americans held hostage by Colombian rebels. Chávez also spoke with Iranian President Mahmoud Ahmadinejad that day to express an interest in deepening ties and to discuss implementation of 15 bilateral cooperation agreement signed during a recent visit to Caracas by Iran’s minister of industries and mine. 

A New Economy Minister in Argentine

In the wake of a three-week farmers’ strike that left the shelves of many Argentine grocery stores bare, the country’s Economy Minister Martin Lousteau stepped down after President Cristina Fernandez de Kirchner rejected a package of his proposed reforms. Carlos Fernandez, who has a close relationship with former President Nestor Kirchner, replaced Lousteau. Despite a truce—scheduled to end May 2—between farmers and Fernandez de Kirchner’s government, the outcome of negotiations remains unclear. However, protesters have said they will not renew roadblocks. Southern Pulse examines the possible impact should Argentina fail to meet its wheat quota. 

Argentina’s Drug Scourge

The London Times examines increasing consumption among poor Argentine youth of “paco,” a smokeable cocaine residue. Argentine authorities, who attempted to curtail abuse of the drug by banning exports of the chemicals needed to produce it, have had little success in controlling paco abuse. The United Nations estimates that the number of paco addicts has tripled in the past three years while the Argentine government says the number has reached roughly 85,000.

Battling Latin America's Cartels

Mexican authorities deployed 3,000 troops in Tijuana following a weekend shootout between rival cartels that left 17 people dead. In an interview with CFR.org, Markus Schultze-Kraft, Latin America program director at the International Crisis Group, discusses how “increasingly sophisticated” drug trafficking organizations are making inroads across Latin America and in Latin American state institutions. He recommends increased cooperation between federal, state, and municipal police forces and for U.S. and EU policymakers to work together on counternarcotics efforts.

Brazil’s Record-Breaking FDI

Foreign Direct Investment (FDI) in Brazil reached more than $3.08 billion in March, marking the best rate for the period, according the Brazil’s Central Bank. The country attracted nearly $8.8 billion in FDI in the first three months of 2008—also a first quarter record. 

Guatemala’s President Visits White House

Immigration, trade, and drug trafficking dominated the meeting between Guatemalan President Alvaro Colom and President George Bush when the Central American leader visited the White House on Monday.

President Bush will deliver a speech at COA’s annual Washington Conference on the Americas on May 5 and 6. The conference features remarks by several high-level officials from across the Western Hemisphere.

In a new article from a forthcoming issue of Poder magazine, COA Vice President Eric Farnsworth analyzes changes in Guatemala since the peace accords of 1996 and President Colom’s opportunity to reduce poverty through international cooperation despite global economic insecurity.

Raúl Castro Announces Party Congress

Cuban President Raúl Castro announced that Cuba’s ruling Communist Party will hold its sixth national congress in late 2009, marking the first congress convened since 1997. The decision comes as Castro officially ended the two-year “provisional” period during which power transitioned from his brother. Castro also revealed a decision to commute death sentences for several inmates; it is estimated that roughly 30 prisoners will be affected by the decision. 

In the new issue of Americas Quarterly, Gary Max and Cecilia Vaisman write that the power change in Havana will only bring minor changes for Cuban citizens.

Bank of the South Launch

South American economy ministers met in Montevideo, where delegates decided to start the Bank of the South with a $20 billion credit turnover. The decision depends on Argentine approval as the government of President Cristina Fernandez de Kirchner was not represented due to a cabinet shift. Seven countries (Argentina, Brazil, Venezuela, Bolivia, Ecuador, Paraguay, and Uruguay) have agreed to become members while Chile, Colombia, and Peru remain undecided on whether to participate in the regional development bank.

Reducing Latin American Poverty

Focusing on Chilean, Mexican, Brazilian, and Colombian initiatives, Tierramérica examines efforts by various Latin American governments to attack poverty and reduce social inequality. 

A feature by José Antonio Campo in the Spring 2008 issue of Americas Quarterly looks at “the perennial argument over social policy—universalism versus targeted subsidies to the poor.” Access a digital version of the article.

Televisa-Univision Face Off

The Financial Times reports on the case brought by one Spanish-language media giant against another. Televisa accuses Univision of withholding $85 million in royalties and seeks to end a contract currently set to expire in 2017. Termination of the contract would allow Televisa to sell its soap operas to the highest bidder, including Univision’s competitor, Telemundo.