Weekly Roundup: Venezuela-Russia Ties, Brazil's Housing Boom, and Helping Haiti

Russia and Venezuela Plan Caribbean Naval Exercises

Moscow and Caracas announced intentions to launch joint exercises in the Caribbean this year, with four Russian ships and 1,000 members of the Russian military participating, reports the Los Angeles Times.  The news came as the Conference of Defense Ministers of the Americas drew to a close in Canada. The plan also comes at a time of strained relations between Moscow and Washington resulting from the Russian invasion of Georgia and U.S. plans to build a missile defense shield in Eastern Europe. On Wednesday, Moscow sent two bombers to Venezuela to engage in training and military maneuvers.

A recent AS/COA analysis examines renewed ties between Russia and Cuba while another looks at the reactivation of U.S. Fourth Fleet.

Venezuelan Minister of Interior Resigns

A longtime friend and staunch supporter of Venezuelan President Hugo Chávez, Minister of Interior Ramon Rodríguez Chacín resigned from his post on September 8. Rodríguez said his resignation was due to personal reasons, but the press insists that it was prompted by the scandal over a Colombian official charged with paramilitary links and kidnapping who was captured in Venezuela.

How to Improve Washington’s Hemispheric Policy

In a new article titled “Back to Smart Diplomacy” featured in Poder magazine, COA’s Eric Farnsworth recommends that the next U.S. president restore the office of the White House Special Envoy for the Americas. “[T]he next president will want to establish a tone of respect and partnership with willing hemispheric leaders right from the beginning of his term. And the naming of a Special Envoy for the Americas would be one solid place to start,” writes Farnsworth.

Trade Could Help Haiti Recover after Hanna

In a Washington Post op-ed, former Republican Senator Mike DeWine argues that trade could be a means to relieve Haiti in the wake of hurricane Hanna, which left 137 people dead and thousands homeless, followed by hurricane Ike. DeWine recommends use of the Haitian Hemispheric Opportunity Through Partnership Encouragement Act (HOPE) to create jobs and stimulate the economy in a country where residents face constant food shortages.

Mexico in Need of a Security Commission

Authorities in Mexico City lodged a victory against kidnapping when they arrested five people connected to the murder a wealthy Mexican’s 14-year-old son—a crime that galvanized hundreds of thousands of people to march in protest of the violent crime wave affecting the country. World Politics Review recommends the Mexican government create a high level commission along the lines of the Iraq Study Group style to come up with a sound, clear strategy to confront drug-related violence.

Read a recent AS/COA analysis of Mexico’s crime wave and the response from civil society.

Solving Emigration’s Push Factors

A Harvard International Review blog comments on the need to attack the root causes pushing people from Central America and Mexico to migrate north. The analysis underlines that an enforcement-only approach could transform the United States into a “massive gated community” and will not deter thousands of workers from venture north, even as they risk falling into the hands of drug gangs that control the Mexico-Guatemala and U.S.-Mexican borders.

An ongoing Financial Times series called “On the Borderline,” featuers correspondent Adam Thompson blogging daily from a 14-day trip along the U.S.-Mexican border. His reports highlight the cultural and financial impact of the crackdown on illegal immigration.

The Economic Impact of Violence

Researchers from the World Bank shed light on the anatomy of household spending in areas heavily affected by armed conflicts and violence in Colombia. Field data shows that families prepare themselves to be mobile when faced with displacement, extortion, and drug-related violence, therefore limiting investment.

A Peak in Colombia’s Military Spending?

ISN Security Watch examines Colombia’s military, which has seen its largest expansion in the last six years under the command of President Alvaro Uribe and U.S.-funded Plan Colombia. But questions arise over the necessity for further expansion, given accusations of human rights violations and links with paramilitaries. The quandary arises as Uribe faces pressures over a decision as to whether he should run for a second reelection in 2010.

Morales Reshuffles his Cabinet, Faces New Challenge

After recently winning a recall vote, Bolivian President Evo Morales got down to housekeeping, replacing five cabinet members. Included in the changes was a shift for Minister of Hydrocarbons and Energy Carlos Villegas into the role of minister of economic development.

Morales also seeks congressional approval for the December 7 referendum with the goal of bypassing the National Electoral Court’s decision to suspend the upcoming constitutional vote.

Although the Bolivian president won the August recall vote by a large majority, he could face a political challenge from Chuquisaca Governor Savina Cuellar, an indigenous activist and former political ally of Morales.

Bilateral Trade Expansion in Latin America

University of Pennsylvania’s UniversiaKnowledge reports that new statistics on interregional trade in Latin America showing both exports and imports have risen over 25 percent in the first quarter of 2008. The analysis looks at how countries such as Colombia diversify clients’ portfolio, “moving ahead, slowly but surely.”

Brazil’s Housing Boom

The Economist says foreign investors are pouring money into the dynamic Brazilian housing market, which—contrary to the housing markets in other parts of the world—shows signs of further growth. The commodities’ boom and sound fiscal policies have allowed Brazilian currency to remain strong, increasing local purchasing power and translating into more Brazilians buying real estate.

No OPEC for Brazil

Brazil’s Energy Minister Edison Lobao refused a recent invitation from his Iranian counterpart to join Organization of the Petroleum Exporting Countries at a time when Brazil has become a major player in the oil markets. Yet Lobao did not close the door permanently, saying his country may consider joining in the future.

Racial Discrimination Addressed by Joint U.S.-Brazilian Partnership

The United States and Brazil—both multiracial countries—inked a partnership to end discrimination based on race in the fields of education, health, housing, and labor. 75 million Brazilians identify themselves as having African background, the second-largest afro-descendant population in the world after Nigeria, reports the Miami Herald.

Chile Best of LatAm in WEF’s Newest Ranking

The World Economic Forum unveiled its first “Financial Development Ranking,” with Chile standing as Latin America’s best-positioned country in spot number 30. The report tracks economic growth and financial systems in both developing and developed countries.

Central American Poor Hit Hard by Rising Food Prices

A new study presented by the Economic Commission for Latin America and the Caribbean highlights the increasing challenges faced by Central American countries to deal with rising food and fuel prices. With those countries serving as net food importers, leaving limited maneuvering room to deal with the crisis.

Guyana’s Green Offer

In a new policy proposal set forth by Guyana’s President Bharrat Jagdeo, the country will protect most of its tropical rainforest by allowing international supervision if polluting countries offer reasonable economic subsidies to foster the country’s much-needed development. Jagdeo plans to formally announce his proposal at the upcoming UN climate meeting to be held in Poland in December, reports BBC.