The Latin American Checkbook
Revolutionary Members (an open secret)
....from the Chávez government to Peronist candidate Cristina Kirchner in the 2007 Argentine presidential race. For Mr. Chávez, who appears to be still toiling at a number of other similar projects around the region, the bad publicity is devastating.
...That testimony jibes with reports from Bolivia that the Venezuela ambassador travels the country handing out checks to mayors who support President Evo Morales. Meanwhile, in Colombia, pro-Chávez Senator Piedad Córdoba recently admitted that a PdVSA subsidiary gave her $135,000.
..One of the most egregious examples of Venezuelan influence in the domestic politics of neighbors is in Nicaragua, where the old Sandinista Daniel Ortega is now president. Venezuela is supplying 60%-70% of Nicaragua's annual crude-oil needs through a program that allows Mr. Ortega to pay only half the bill. The other half is a 25-year loan. After that the web gets tangled indeed.
In El Salvador, where the former guerrilla group FMLN is hoping to win the presidency in March, FMLN mayors have a company called Alba Petróleos. It receives gasoline and diesel on favorable terms from Venezuela, sells it at a slight discount to the market at its filling stations and captures a fat profit. This allows it to dominate the retail market, and may explain why the party is awash in campaign cash -- some speculate upwards of $60 million
Showing posts with label Latin America. Show all posts
Showing posts with label Latin America. Show all posts
Thursday, November 13, 2008
Thursday, October 16, 2008
Latin America Can Weather the Storm
Every crisis is an opportunity.
According to Mary Anastasia O'Grady (Wall Street Journal), Latin american must take advantage of the global turmoil. Given 1990s economic reforms, most of Latin american countries are ready to face this financial crisis because they are showing high level of reserves and low inflation although exposed to commodity price volatility.
"A selling tsunami emanating from the U.S.-European panic has clobbered Latin currencies and stocks. The Mexican peso has lost more than 20% against the dollar since August and Mexico's Bolsa closed at a two-year low on Friday. Peru, Colombia and Chile are also getting slammed."
"Given the magnitude of the selloff, some observers may be surprised to learn that the banking systems of these countries are not infected with the financial bird flu spreading through the G-7. Rather, investors are piling out of Brazil, Mexico, Chile, Peru and Colombia in a flight to quality. They are also fleeing because of the credit squeeze, the end of the commodity boom, and a slowdown in rich-country growth that will reduce demand for the region's output. Growth is expected to slow in most of Latin America."
"Thanks to the reforms of the past two decades the most open Latin economies are in a much better position today than they were in the 1980s when Federal Reserve Chairman Paul Volcker tightened credit to attack inflation. They should not be allowed to backslide. This is the time to accelerate liberalization with an eye toward greater economic flexibility."
"There is not much Latin America can do about the leadership vacuum in the U.S. or Europe. But it can anchor its own ship. Serious Latin economies -- obviously we don't mean Argentina, Venezuela, Ecuador, Nicaragua, Honduras or Bolivia -- have spent the past two decades preparing for such a moment.'
"To that end, the region has much work left to do. Brazil's entrepreneurs are burdened with punishing tax rates and complex regulation. Mexico restricts investment in energy, telecommunications and air travel, and in recent years it has increased protectionism. Colombia and Chile still fiddle with capital controls. Peru has insecure property rights, which discourage investment. Labor markets throughout the region are inflexible."
"Every crisis offers opportunities and this one is no different. The region's reformers have already done much heavy lifting. Why not seize the moment and finish the job?"
Every crisis is an opportunity.
According to Mary Anastasia O'Grady (Wall Street Journal), Latin american must take advantage of the global turmoil. Given 1990s economic reforms, most of Latin american countries are ready to face this financial crisis because they are showing high level of reserves and low inflation although exposed to commodity price volatility.
"A selling tsunami emanating from the U.S.-European panic has clobbered Latin currencies and stocks. The Mexican peso has lost more than 20% against the dollar since August and Mexico's Bolsa closed at a two-year low on Friday. Peru, Colombia and Chile are also getting slammed."
"Given the magnitude of the selloff, some observers may be surprised to learn that the banking systems of these countries are not infected with the financial bird flu spreading through the G-7. Rather, investors are piling out of Brazil, Mexico, Chile, Peru and Colombia in a flight to quality. They are also fleeing because of the credit squeeze, the end of the commodity boom, and a slowdown in rich-country growth that will reduce demand for the region's output. Growth is expected to slow in most of Latin America."
"Thanks to the reforms of the past two decades the most open Latin economies are in a much better position today than they were in the 1980s when Federal Reserve Chairman Paul Volcker tightened credit to attack inflation. They should not be allowed to backslide. This is the time to accelerate liberalization with an eye toward greater economic flexibility."
"There is not much Latin America can do about the leadership vacuum in the U.S. or Europe. But it can anchor its own ship. Serious Latin economies -- obviously we don't mean Argentina, Venezuela, Ecuador, Nicaragua, Honduras or Bolivia -- have spent the past two decades preparing for such a moment.'
"To that end, the region has much work left to do. Brazil's entrepreneurs are burdened with punishing tax rates and complex regulation. Mexico restricts investment in energy, telecommunications and air travel, and in recent years it has increased protectionism. Colombia and Chile still fiddle with capital controls. Peru has insecure property rights, which discourage investment. Labor markets throughout the region are inflexible."
"Every crisis offers opportunities and this one is no different. The region's reformers have already done much heavy lifting. Why not seize the moment and finish the job?"
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