Weekly Roundup: Colombia's Referendum, Mexico's Tax Reform, Russia's LatAm Defense Deals

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Colombia’s Lower House Approves Referendum on Eventual Peace Accord

On October 16, the lower house of Colombia’s Congress passed a bill allowing for a referendum on an eventual peace agreement. However, the government is still in negotiations with the Revolutionary Armed Forces of Colombia; it remains unclear when an accord will be reached. The bill establishes a final step for an eventual agreement, setting a referendum to take place either during the March 2014 legislative elections or the May 2014 presidential election. The referendum requires 7.5 million votes to pass, and would ratify the peace accord. The legislation now moves to the Senate, where it is expected to pass. Meanwhile, negotiations continue in Havana, Cuba, where negotiators may not meet the original November deadline for the talks.

The Evolving Colombian Conflict: Guerrillas Splinter as Criminal Groups Grow

As Colombia continues its peace process with the Revolutionary Armed Forces of Colombia (FARC), the government is contending with evolving criminal groups, reports the International Institute on Strategic Studies (IISS). Along with drug trafficking, guerrillas are diversifying into illegal mining and splitting into smaller bands of people. “They now represent a new, hybrid threat: groups with the military know-how of insurgents and the adaptability of criminal actors,” says the IISS. Also, some worry that splinter FARC groups will continue to operate trafficking and mining operations even if a peace accord is reached, and that groups will continue to fragment as the negotiations drag on.

At the same time, former paramilitaries have formed criminal groups known as bacrim. Unlike the FARC, they are growing in numbers and are responsible for around one-third of human rights violations in Colombia. As a result to these diverse security threats, Colombia’s Congress passed a law that would allow the military to use force against groups like the bacrim; the Constitutional Court is currently reviewing the legislation. At present, the military can only use offensive force against guerrillas.

Mexico’s Lower House Approves Tax Bill

The Chamber of Deputies in Mexico’s Congress approved a comprehensive tax reform bill on October 17 that now moves on to the Senate.

The legislation—which aims to raise government revenues by around 3 percent of GDP—imposes a 5 percent tax on junk food, a special tax on soda, and raises the top income tax bracket to 35 percent. However, deputies voted to remove language to raise sales tax on rents, mortgages, and school fees. Finance Minister Luis Videgaray cautioned that revisions to the originally proposed tax reform will lead to a $4.4 billion revenue shortfall, reports Reuters.

60 Years after Women’s Suffrage in Mexico, New Bill Seeks to Boost Political Participation

October 17 marked the 60-year anniversary of women’s suffrage in Mexico, coming nearly a week after President Enrique Peña Nieto proposed a quota that would require women make up 50 percent of congressional candidates. Currently, Mexican law dictates that they encompass 40 percent of legislative candidates.

In 1955, the first year women could vote, only four female representatives were elected to Congress. The reform bill could pass as soon as December. 

In Mexico, New Teaching Method Promotes Free Thinking, Lifts Math Scores

At José Urbina López Primary School in Matamoros, Mexico, teacher Sergio Juárez Correa is experimenting with a new method of teaching that emphasizes group work, competition, creativity, and a student-led environment, reports a feature in Wired. The school has limited resources but has unlocked the potential of its students through Juárez Correa’s innovative teaching. After taking a national standardized exam, one student at the school received the top math score in the country, while others placed in the 99.99 percentile.

Russia Seals Defense Deals with Brazil and Peru

After visiting Brasilia and Lima this week, Russian Ministry of Defense Serguéi Shoigú went home with two new military defense partnerships. Brazil plans to buy surface-to-air missile batteries from Russia valued at $1 billion, as well as a technology transfer program. Brazilian Ministry of Defense Celso Amorim also said the two countries could potentially build fighter jets together. Meanwhile, Peru purchased 110 Russian tanks for $800 million and 28 helicopters costing around $700 million. The two countries also discussed establishing a repair center for the Russian military helicopters in Peru.

Report: How Can Brazil Tackle Economic Challenges?

A report by the Wilson Center’s Brazil Institute examines Brazil’s economic obstacles, looking at inflation, monetary policy, and investment, as well as prospects for reforms. Teresa Ter-Minassian, former director of the fiscal affairs Department at the IMF, notes that “barring major…shocks, little progress can be expected in structural reforms next year.” She adds that “Both the executive and the congress will be focused on the reelection agenda and will not be inclined to move forward on policy initiatives that may carry political costs.”

Brazil’s Amazon Road Offers Shortcut to Northern Ports   

A new road through the Amazon­ called BR-163 will connect Brazil’s soy belt in Mato Grosso to two key northern waterways, reports Reuters. The route is expected to boost grain exports by three tons next year, and to provide an alternative to the congested southeastern ports. Companies are already beginning plans to build terminals at the northern ports, though it will be a few more years before the 860-mile roadway will be paved entirely.

Venezuela’s Enabling Law Needs 99 Votes

This week, Venezuelan President Nicolás Maduro said that the proposed Enabling Law will boost the economy as he appeals for votes on the controversial legislation. The president asked the National Assembly to pass the legislation last week, a move that would grant him decree powers. For the law to pass, Maduro needs three-fifths of congressional deputies—or 99 legislators—to vote in favor of the bill. There are only 98 deputies from the ruling coalition in the Assembly, and speculation remains about which opposition legislator could be vote 99.

Chile Elected to Non-Permanent UN Security Council Seat

On October 17, Chile was elected for a two-year term as the new Latin American representative on the UN Security Council. Along with newly elected Chad, Lithuania, Nigeria, and Saudi Arabia, Chile will assume the position on January 1. There are 10 non-permanent seats in total; Argentina is the other Latin American country represented on the Council. Britain, China, France, Russia, and the United States are the only countries with permanent seats.

Peru Wins Bid to Host 2019 Pan American Games

This week, Peru won a bid to host the 2019 Pan-American Games, beating out Argentina, Chile, and Venezuela. The government plans to initially invest around $46.4 million in sports infrastructure in Lima, with construction beginning next month.

Ibero-American Summit Kicks off in Panama

Panama hosts the annual Ibero-American Summit on October 18 and 19, though the event may be marked as much by absences as attendees. Heads of state from Argentina, Bolivia, Brazil, Chile, Cuba, Ecuador, Guatemala, Uruguay, and Venezuela will not attend, nor will Spanish King Juan Carlos. It’s the first time since the summit’s creation in 1991 that the king will be absent. During the conference, leaders will discuss whether Latin American countries should provide more money to fund the summit; together, Spain and Portugal provide 70 percent of financing.

New Military Police Force Begins Operating in Honduras

Honduras deployed a new security force in several of its most violent cities on October 14, reports El Heraldo. The Military Police of Public Order consists of roughly 1,000 officers. The new force represents part of President Porfirio Lobo’s strategy, which increasingly relies on the military for law enforcement, writes the Pan American Post.

Ranking GDP per Capita in the Caribbean

Using new data from the World Bank, The Caribbean Journal performed a breakdown of GDP per capita in the Caribbean Community bloc (CARICOM), determining that the Bahamas is the richest country with $21,280 in GDP per capita. Puerto Rico ranks second with $18,000, while Trinidad and Tobago comes in third at $14,400. However, there was no data for Barbados or Haiti, also CARICOM members.

Infographics: Comparing Nobel Prize Winners by Region

With the announcement of this year’s Nobel Prize winners, The Washington Post published a series of infographics charting laureates on national and regional levels. Since 1901, Latin America has only had 19 Nobel Prize winners, compared to 20 in the Middle East and 49 in Asia.

Startup Incubator Seeks to Invest in LatAm Journalists 

Incubators aren’t just for entrepreneurs anymore. Media Factory, a media business incubator, is offering $75,000 to journalists around Latin America who are interested in starting their own online news sites, writes the Knight Center for Journalism in the Americas. The program will select five teams of journalists, who will receive mentorship and access to investors, designers, and other professional service providers. Proposed news sites will focus on politics and business. During the startup process, journalists will define their business model and build a marketing structure to promote community engagement.