Weekly Roundup: Mexico's Local Elections, Guatemala's Mining Moratorium, Medellin's Tech Zone

Brazil’s Latest Protests and Challenges for Local Governance

Despite a slowdown in the number and size of Brazil’s protests, demonstrations took place in 20 cities on July 11 as hundreds of thousands of workers went on strike. Organized by labor unions, the strike sought to capitalize on the protests that rocked Brazil in June. In one of the latest policy responses this week, President Dilma Rousseff offered to invest $1.5 billion in health and education in the country’s cities. However, after announcing the measure at a meeting with over 4,000 mayors, the president was booed. On his blog, Eurasia Group’s Senior Political Analyst J.A. de Castro Neves writes that protester demands represent a new reality for municipalities, even as local officials will have less financial flexibility to respond to the demands. “[A]s growth slows and revenue dwindles, local governments must adjust to a more challenging economic environment while juggling the new political and socioeconomic challenges,” he notes.

Outcome in Key Mexican State Election Could Boost Reform Package

Nearly half of Mexico’s states held local elections on July 7, but all eyes were on Baja California—the only state with a gubernatorial seat up for grabs. Those watching the tight race wondered whether the governing Institutional Revolutionary Party (PRI) would capture the seat from the opposition National Action Party (PAN), which had controlled the state for almost a quarter-century. The PAN candidate came out victorious, but some observers posited that his win would actually benefit President Enrique Peña Nieto and his massive reform project known as the Pacto Por México. “As the July 7 elections approached, some members of the opposition began to argue that, if the results were bad, they should withdraw from the Pacto, and pursue a more obstructive line against the president,” says The Economist, noting that Peña Nieto “might therefore be relieved that preliminary results suggest his party’s candidate lost the battle of Baja California.” Indeed, PAN leader Gustavo Madero said July 11 that his party would back the reform package, as well as seek to end a period of internal party strife that could have hindered progress on the Pacto.

In Baja California, an error in preliminary vote counts led to a recount that got underway on July 10. Initial results gave the PAN’s Francisco Vega 47 percent against 44 percent for the PRI’s Franciso Trenti. But Trenti opted to concede on July 11.

Mercosur: Venezuela Takes over While Questions Surround Paraguay’s Membership

On July 12, heads of state from the Southern Common Market (Mercosur) bloc meet in Montevideo, Uruguay. Venezuela is due to take over the pro-tempore presidency of the group, while Paraguay—which was suspended last June after the president’s impeachment—says it does not want to return to the bloc if Venezuela leads it. However, Venezuelan President Nicolás Maduro said once his country becomes chair of Mercosur, he would make an effort to bring Paraguay back into the fold.

Zeroing in on Corruption in Latin America

Transparency International released its Global Corruption Barometer 2013 on July 9, surveying people in 107 countries about their views on bribery and corruption. Globally, 27 percent of respondents reported having paid a bribe for a public service in the last year, while that number stood at 36 percent in Bolivia and 33 percent in Mexico. In these two countries, the majority of bribes were paid to police. Also, respondents in seven Latin America countries named political parties as one of the most corrupt institutions.

Colombia Peace Talks: Eleventh Round Ends without Agreement

The latest round of Colombia’s peace talks with the Revolutionary Armed Forces of Colombia (FARC) concluded on July 8 with no accord reached on political participation for guerrillas. Nevertheless, El Tiempo reports that the FARC’s “change in tone” and willingness to compromise could speed things along. The next round of talks begins on July 22.

Medellin: Future Home of LatAm’s Largest Tech District?

Plans are underway to attract science, technology, and innovation companies to Medellin in an urban community modeled after Spain’s innovation district in Barcelona. Numerous international tech companies already set up shop. The future district will occupy three neighborhoods in northern Medellin.

Colombia Opens Country’s First Auto Plant

On July 10, Colombian President Juan Manuel Santos inaugurated the Andean country’s first car production facility, located in Bogota. The government hopes that tax incentives and financing for the sector will help Colombia build its auto industry.

Venezuela Appoints First Female Minister of Defense

Venezuela’s former chief of staff and the first woman to achieve the country’s highest military rank went on to mark another “first” on July 5; President Nicolás Maduro named Admiral Carmen Meléndez as the country’s first female minister of defense. She was sworn in on July 11.

Unexpectedly, Chilean Congress to Consider Electoral Reform

President Sebastián Piñera’s administration was taken by surprise on July 10 when a group of parliamentarians introduced a bill to alter the country’s system for electing members of Congress—without consulting with the ruling party. The bill aims to increase the number of senators and representatives, as well as implementing a proportional voting system for the Chamber of Deputies. Chile holds presidential and congressional elections in November. The two parties that introduced the legislation are currently out of the running on the presidential ticket.

Assessing the Digital Presence of Peruvian Companies

A study by Ipsos Peru found that although 75 percent of Peru’s 5,000 top businesses have an online presence, digital investment in the Andean country remains low. The report found that 49 percent of interviewees allocate less than 5 percent of their marketing budget in digital communications.

El Salvador’s Gang Truce: Future in Doubt?

Central American Politics blog questions what’s behind a recent uptick in violence in El Salvador: Is it due to changes in the security ministry, or a new approach by the Salvadoran government ahead of an election year that could be putting a delicate gang truce at risk? Author Mike Allison explores such themes and says: “The truce hasn't been perfect but it was a necessary first step to getting the violence under control in El Salvador.”

El Salvador and Costa Rica Ratify Trade Deal with EU

A free-trade accord between Central America and the European Union is set to go into effect on August 1 as two more countries ratified the agreement this month. Costa Rica’s legislators approved the deal on July 1, and El Salvador’s Congress ratified the agreement on July 3. Guatemala, Honduras, Nicaragua, and Panama already approved the accord.

Costa Rica “Accidentally” Legalizes Same-Sex Unions

On July 4, Costa Rican President Laura Chinchilla signed a law on youth and marriage that included language giving equal rights to same-sex couples. The legislature’s conservative majority did not notice the language added to the bill before voting on it. It remains unclear, however, if gay couples will be able to marry under the new legislation.

Guatemalan Government Proposes Moratorium on Metal Mining

President Otto Pérez Molina introduced a bill to Guatemala’s Congress this week that would put a two-year ban on granting licenses for metal mining. Pérez Molina explained the moratorium would go into effect as Congress debates a new mining law. The proposal also comes in response to violent protests in several mining towns in May.

Braving the Weather: Stronger Hurricanes in the Caribbean

In a July 10 interview with the Inter Press Service, José Rubiera of Cuba’s Meteorology Institute discusses the expanding impact of hurricanes in the Caribbean. This year alone, up to nine hurricanes could hit the region. Rubiera says that while hurricanes might not become more frequent, they are likely to intensify more rapidly due to climate change.

Breaking Mexico's Beer Duopoly: Make Way for the Microbrews

Mexico's anti-trust commission announced July 11 that it's giving the country's two biggest beer companies—Cuahtémoc and Negra Modelo—five years to cut back the domestic exclusivity deals that allow them to corner the world's sixth-largest beer market. Together the firms account for 99 percent of Mexico's beer sales, says Reuters. Animal Politico reports that the companies faces fines of up to 8 percent of annual domestic revenue if they don't meet the new anti-trust requirements, which also prevent them from limiting, in any way, the sale of beer made small-scale, artisanal brewing companies.