Weekly Roundup: Brazil's Protests, EPN's Pemex Plan, Maduro's Euro Trip

Demonstrations Spread in Brazil as Demands Multiply

Demonstrations that began last week grew over the last several days, as an estimated 1 million people protested nationwide on June 20. The protests—the country’s largest in two decades—began with a focus on transportation fare increases, but evolved into a variety of demands ranging from poor public services to government expenses on mega-events. President Dilma Rousseff cancelled her trip to Japan in order to address the protests.

Read an AS/COA Explainer on the protests.

Brazil Announces Mining Reform Plan

On June 18, the Brazilian government unveiled a new mining reform proposal, four years after announcing an overhaul of the law. Mining royalties would rise from 2 to 4 percent, and licensing processes would be simplified. Though the royalty rate is lower than in some other countries, “mining firms complain that Brazil’s chaotic tax system subjects them to costs and risks they do not bear elsewhere,” writes The Economist. The bill will be considered in Congress, and is expected to pass later this year.

Mexican President Negotiating Support for Pemex Reform

President of Mexico Enrique Peña Nieto sparked news this week when he signaled, during a June 17 stop in London, that he is working to build domestic political support to reform Pemex’s 75-year control of the country’s gas and oil exploration. “It’s obvious that Pemex doesn’t have the financial capacity to be in every single front of energy generation,” Peña Nieto told Bloomberg on Monday. “Shale is one of the areas where there’s room for private companies, but not the only one.” The president has indicated that an energy reform plan will be sent to the Mexican Congress by September.

Peña Nieto, of the Institutional Revolutionary Party, may be making some headway in gaining support from the National Action Party (PAN); news reports say PAN Senator and former Finance Secretary Ernesto Cordero voiced that he will back the reform. PAN leadership also said this week that it had come up with a “cutting-edge” energy overhaul proposal. However, Peña Nieto may have a harder time with Mexico’s third major political party—the Party of the Democratic Revolution (PRD). Former Mayor of Mexico City Marcelo Ebrard told El País that he would challenge Peña Nieto to a debate over Mexican energy reform and that it would be a mistake to amend Article 27 of the Mexican Constitution that makes natural resources Mexican sovereign property.

Mexico’s Burgeoning Tech Companies: Still Jumping Hurdles

Over the last decade, Mexico’s tech industry has grown three times as fast as the global average, reports NPR. However, startups still face barriers such as a lack of human capital and difficulty with access to financing. But legislation making its way through Mexico’s Congress could facilitate financing for startups.

Ecuador Passes Controversial Media Law

On June 14, Ecuador’s National Assembly passed a polemical law, creating two new groups: the Media Regulation Council, which will set standards for media content, and the Office of Information and Communication, which will monitor and fine non-complying media outlets. The law will also divide radio frequencies into thirds among state media, private broadcasters, and indigenous groups. The Committee to Protect Journalists said the legislation was a “severe blow to freedom of expression” that could be used to censor the press.

Colombia’s Judicial Reform Advances

On June 17, Colombia’s Congress passed a judicial reform bill, which would expand the power of military courts to prosecute crimes committed by members of the armed forces. International organizations including the UN criticized the bill for allowing cases of false positives—extrajudicial killings of civilians—to be brought to these military courts and potentially leading to impunity. The bill must be signed by the president and will also be reviewed by the country’s Constitutional Court.

Santos’ Test: Securing “Rebel Fiefdoms”

In a special report, Reuters visits the Cauca region of Colombia, a stronghold for the Revolutionary Armed Forces of Colombia, better known as the FARC, and an area with little government presence. “[I]t will be in rebel fiefdoms like Cauca where peace will be hardest to build and hardest won, says the report. “Cauca is seen as an acid test for President Juan Manuel Santos to prove he can secure control of its neglected hinterlands, return thousands of displaced people to their lands and win the hearts and minds of farming and indigenous communities.”

Peru Suspends Military Draft

A Peruvian court suspended the country’s military draft on June 19—the same day the draft was due to take place. Critics of the draft said it was a discriminatory measure that would affect the poor; by paying a $700 fine, recruits would have been excused from service. Around 400,000 names would have entered the lottery, and over 12,000 would have been selected for the draft.

Maduro’s Euro Trip

This week, Venezuelan President Nicolás Maduro toured Europe, meeting with the Pope at the Vatican, the Portuguese chancellor in Lisbon, and with French President Francois Hollande in Paris. Maduro signed economic cooperation agreements in Portugal, ranging from infrastructure to energy, in projects worth up to $6.7 billion. The Venezuelan leader also said he plans to order a large number of French Airbus planes for Venezuela’s Viasa airline.

Report: Extreme Poverty in LAC Halved in 15 Years

A World Bank report released on June 14 examines declining inequality in Latin America, and found that in the last 15 years, extreme poverty declined by half. Since 2000, average real incomes in the region rose by over 25 percent, and in 2011, Latin America and the Caribbean had “a larger number of people in the middle class than in poverty.” However, an estimated 80 million still live in extreme poverty, and 40 percent of Latin Americans risk falling back into indigence.

Salvadorans May Overtake Cubans as Third Biggest U.S. Latino Group

The Pew Research Hispanic Center released information this week that the Salvadoran population’s growth rate has been twice that of Cubans, meaning the former could soon overtake the latter as the third-largest U.S. Latino population and mark a historic demographic change. “For more than 40 years, one rock-solid element of Hispanic demographics has been the relative ranking of the three largest Hispanic-origin groups: Mexicans have always been the largest by population, followed by Puerto Ricans, and then Cubans,” says Pew.

U.S.-Cuba Ties: Taking Baby Steps

Diplomats in Cuba and the United States say bilateral relations are warming slowly, reports the AP. This week, talks were held between them to consider resuming direct mail service, and on July 17, representatives from the two countries will meet to discuss migration issues. “Today, U.S. diplomats in Havana and Cuban Foreign Ministry officials have easy contact, even sharing home phone numbers,” says the AP.

DR Deploys Military to Police Capital

In a bid to tackle rising crime levels, Dominican President Danilo Medina dispatched over 1,400 soldiers to the streets of the city’s capital last month, leading to “a near immediate drop in crime,” reports The Miami Herald. According to polls, street crime and rising homicide rates are the top concerns for Dominicans. InSight Crime notes that the Dominican Republic likely took the measure due to corruption and ineptitude within the police force.