LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Tuesday, July 21, 2020

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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Tuesday, July 21, 2020 LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Tuesday, July 21, 2020 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk Is the United States Prosecutor to CEO, DevryBV Sustainable Strategies Probe Allegations Joyce Chang Global Head of Research, Right to Withdraw Against Puerto JPMorgan Chase & Co. Rico Governor Paula Cifuentes Director of Economic & Fiscal Affairs, From the WHO? Puerto Rico’s Special Indepen- Latin America & Canada, dent Prosecutor’s Office will Philip Morris International investigate corruption allegations Marlene Fernández against Gov. Wanda Vázquez. The Corporate Vice President for development follows the firing Government Relations, Arcos Dorados of one justice secretary and the resignation of another. Peter Hakim President Emeritus, Page 2 Inter-American Dialogue Donna Hrinak President, Boeing Latin America ECONOMIC Jon E. Huenemann Cuba Opens Stores Former Corporate and Government Senior Executive That Accept Only James R. Jones Foreign Currency Chairman, U.S. Secretary of State Mike Pompeo earlier this month said the United States was withdrawing Monarch Global Strategies from the World Health Organization, whose headquarters in Geneva is pictured above. // File Under the new system, shoppers Craig A. Kelly Photo: World Health Organization. at the stores will make purchases Senior Director, Americas The Trump administration has notified the U.S. Congress using cards that are backed by Int’l Gov’t Relations, Exxon Mobil and the United Nations that the United States is formally currencies including U.S. dollars. John Maisto Page 2 Director, U.S. Education withdrawing from the World Health Organization, citing its Finance Group Q handling of the coronavirus pandemic. The move, which has Nicolás Mariscal BUSINESS Chairman, drawn criticism from legislators, medical associations and U.S. allies, Grupo Marhnos goes into effect next July. Does the WHO have “a long history of corrup- Brazil to Begin Thomas F. McLarty III Chairman, tion and politicization” as U.S. Secretary Mike Pompeo said in announc- Testing Sinovac’s McLarty Associates ing the withdrawal, and will the move change the way the organization Covid-19 Vaccine Carlos Paz-Soldan Partner, operates? What are the most significant implications of the withdrawal Advanced testing of Chinese DTB Associates, LLP both for the United States and for future efforts in fighting diseases and pharmaceutical firm Sinovac’s Beatrice Rangel Covid-19 vaccine will begin in Director, improving global health outcomes? In what ways will Latin American Brazil. São Paulo Gov. João Doria AMLA Consulting LLC countries and the Pan American Health Organization, the WHO’s regional said testing will begin at the Clini- Jaana Remes office, be affected by the decision? cal Hospital of São Paulo. Partner, Page 3 McKinsey Global Institute Ernesto Revilla Head of Latin American Andrew Rudman, managing director at Monarch Global Strat- Economics, Citi egies: “Based on the handling of the coronavirus pandemic, Gustavo Roosen Chairman of the Board, perhaps the WHO should have expelled the United States? Envases Venezolanos Sarcasm aside, the U.S. decision is shortsighted, politically Andrés Rozental A motivated and petty. Substantive benefits from the decision are unclear President, Rozental & Asociados while the negatives are easy to identify. Many analysts point to the loss Shelly Shetty of important collaboration between the WHO and CDC, including data Managing Director, Sovereigns Fitch Ratings sharing to prevent pandemics. Consider the outcome if the United States were forced to wait for a future coronavirus to infect American citizens before the CDC had access to virus samples or other evidence and experience needed to develop a response. U.S. innovative industries may be exposed to potentially serious, if less dramatic, consequences as well. Doria // File Photo: Brazilian Government. Continued on page 3 COPYRIGHT © 2020, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Tuesday, July 21, 2020 POLITICAL NEWS NEWS BRIEFS Killings of Women Prosecutor to Probe Soar 9.2% in Mexico Two More Members of Bolsonaro’s Cabinet Test Allegations Against During Pandemic Positive for Covid-19 Puerto Rico Governor The number of homicides in Mexico, partic- Two more members of Brazilian President Jair ularly of women, has increased during the Bolsonaro’s cabinet said Monday that they had Puerto Rico’s Special Independent Prosecutor’s Covid-19 pandemic, according to government tested positive for Covid-19, the Associated Panel has agreed to investigate corruption figures released Monday, the Associated Press Press reported. The minister of citizenship, allegations against Gov. Wanda Vázquez and reported. Overall, the homicide rate increased Onyx Lorenzoni, said his symptoms began last others, the Associated Press reported Monday. 1.9 percent in the first six months of the year, Thursday and that he is now feeling better Earlier this month, former Justice Secretary to 17,982, as compared to 17,653 for the and working from home. The new minister of Dennise Longo said Vázquez and others had same period last year. However, the number of education, Milton Ribeiro, on Monday said he been targeted in an investigation that the killings of women increased 9.2 percent, to 489 had also contracted the novel coronavirus. In department had opened earlier this year over in the first half of this year, as compared to 448 total, four Brazilian cabinet ministers, as well the alleged mismanagement of supplies meant in the first six months of 2019. Activists have as Bolsonaro, have tested positive for the virus. long been concerned that home confinement of families during the pandemic would increase Vázquez denied that she the homicide rate of women in Mexico. [Editor’s Man Charged in fired Longo in retribution note: See related Q&A in the Feb. 27 issue of the Advisor.] Killing of Seven Young for the investigation. People in Panama Prosecutors in Panama said Monday they had ECONOMIC NEWS charged a man with murder in connection with for Puerto Ricans who had been affected by the killing of seven young people whose bodies earthquakes. Longo was fired the same day were found near Gatún Lake, which is part she referred the matter to the special panel. Cuba Opens Stores of the Panama Canal, the Associated Press Longo’s successor as justice minister, Wandy- reported. Prosecutors did not provide details mar Burgos, then resigned after a week in the That Accept Only about the suspect, who was arrested Sunday, position after she identified herself as the Foreign Currency but said there is evidence that other people person who recalled six files that were about may have been involved. The rare mass killing to be delivered to the independent prosecutor’s Cuba on Monday opened shops that only ac- of four men and three women has shocked the panel, saying she needed to examine them. cept foreign currencies and scrapped a special Central American country, in part due to the One of the files named Vázquez, according to tax on the U.S. dollar, expanding a process of victims’ young age, between 17 and 22. Longo, the AP reported. Burgos stepped down collecting stronger currencies as the Caribbean after several top members of the governor’s nation struggles amid an economic crisis, the party called for her resignation. Vázquez Associated Press reported. By morning, long denied that she fired Longo in retribution for lines formed outside a half-dozen foreign-cur- Brazil Will Let WhatsApp the investigation, saying she asked the former rency-only shops selling food and toiletries in Payments Operate if Rules justice secretary to step down because of Havana. Under the new system, people make alleged interference in an unrelated federal Are Followed: Official purchases using national or foreign cards investigation involving potential Medicaid Brazil’s central bank will allow Facebook’s backed by hard currencies, especially dollars, fraud. The prosecutor’s panel now has 90 days WhatsApp messaging platform to operate a including Visa or Mastercard. Cash is not to investigate the allegations and determine payments service if all rules are followed, cen- accepted. Additionally, such stores contain whether they have enough merit to file charges. tral bank director João Manoel Pinho de Mello products that peso-sale stores currently lack, The move to investigate Vázquez comes just said Monday, Reuters reported. “We will allow such as detergent, minced chicken, beef and weeks ahead of the primary election for Puerto it, no problem,” as long as rules are followed, canned goods, the AP reported. “It looks to me Rico’s New Progressive Party, in which Vázquez he said during an online event. The central like at this critical time, when the country is is running to be the party’s candidate in the bank suspended the payments service last going without food, there is everything” in the November gubernatorial election. month, saying it needed to examine whether it shop, Lenon Fenández, a 32-year-old entrepre- can operate safely and allow competition. COPYRIGHT © 2020, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Tuesday, July 21, 2020 neur who visited a market known as 70, told FEATURED Q&A / Continued from page 1 the AP. Cuba last had to open dollar stores for basic goods in the 1990s, when the fall of the The WHO and PAHO have at times issued up the pandemic and punishing doctors Soviet Union hit the Communist-run island into statements, made recommendations or who sounded the alarm. Withdrawing from a sharp economic depression, Reuters report- advocated for policies regarding intellectual this clearly lopsided organization sends ed. Currently, Cuba is facing a serious shortage property and price controls that are inimical a powerful message that such antics will of tradable currency to purchase goods abroad, to the interests of these industries. Without not be tolerated. The Taxpayers Protection especially as tourism has plunged amid the the moderating impact of the U.S.
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