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

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. delegation Alliance has suggested replacing WHO coronavirus pandemic and usual allies, particu- during, for instance, the World Health As- funding with direct funding for organizations larly Venezuela, face their own economic woes. sembly, these outcomes will almost certainly doing pivotal public health work across the [Editor’s note: See related Q&A in the June 3 occur more frequently. In this hemisphere, globe, such as Doctors Without Borders. The issue of the Advisor.] most governments hold PAHO in high regard. United States and its allies are in a unique Many rely on its financing support funds to position to cut out the corrupt middleman acquire essential medicines. Others depend and directly fund promising health initiatives BUSINESS NEWS on its regulatory policy guidance when worldwide. In Latin America, this shift in they lack the capacity to develop their own public health funding will mean a critical regulations. Reducing PAHO’s budget may realignment toward urgent priorities. Instead Brazil to Begin well reduce the agency’s ability to engage in of misguided WHO-funded efforts to fight Testing Sinovac’s areas generally consistent with U.S. national harm reduction products such as vapes, interests while eliminating any U.S. influence greater resources can be devoted toward Covid-19 Vaccine over decisions—good or bad. No doubt, the fighting the coronavirus. Withdrawing from WHO and PAHO would benefit from thought- the WHO will be a boon for public health in Brazil will begin advanced clinical testing of ful reform. Regrettably, rather than working Latin America and the entire world.” a Chinese-manufactured vaccine against the to improve the WHO’s pandemic response novel coronavirus today, issuing the first doses capability (among other potential reforms), Katherine Bliss, senior fellow at to approximately 900 volunteers, official said, the Trump administration has chosen to the CSIS Global Health Policy Agence France-Presse reported. Chinese phar- undermine global collaboration to distract Center: “The Trump administra- maceutical firm Sinovac developed the vaccine, from national mismanagement.” A tion’s withdrawal from the WHO, which is the third in the world to enter Phase 3 and by extension, the Pan American Health trials, in which large-scale testing on humans is Ross Marchand, vice president Organization (PAHO), which has provided carried out. It is the last step before regulatory for policy at the Taxpayers technical and policy guidance to health approval. The vaccine will be administered to Protection Alliance: “U.S. ministries in the region for more than 100 doctors and other health workers across six A Secretary of State Mike Pompeo years, seems ill-advised. In the early 20th states in Brazil who volunteered for the pro- was absolutely correct in his declaration that century, U.S. health officials helped establish gram. “Trials of CoronaVac, one of the vaccines the World Health Organization (WHO) has ‘a the Pan American Sanitary Bureau, which that has advanced the furthest in testing in the long history of corruption and politicization.’ became the WHO’s regional office after world, will begin at the Clinical Hospital of São This politicization has become hard to deny 1948. The Bureau’s first three leaders were Paulo,” the state’s governor, João Doria, said in recent months as the WHO continues U.S. public health physicians, and the U.S. during a news conference. Initial results are to refuse Taiwan a seat at the table at the government donated the land in Washington expected within 90 days, Doria added, Reuters agency’s emergency meetings. One might for the PAHO headquarters, which opened in reported. He also said that, if successful, local think that the WHO could learn a thing or 1965. A formal U.S. withdrawal from PAHO research center Instituto Butantan could begin two from Taiwan, which has seen just seven will stress an agency already facing budget manufacturing the vaccine in 2021. Under the Covid-19-related deaths since the start of deficits. In addition to funds transferred deal, the institute has the right to produce 120 the pandemic. But, sadly, the agency has from the WHO, PAHO collects members’ million doses. Brazil has seen the second-high- prioritized currying favor with the Chinese dues directly, and several, including the Unit- est number of coronavirus cases and deaths government over the impartial global pursuit ed States, as well as Argentina, Brazil, Chile, worldwide, after only the United States. The of public health. WHO Director General Colombia, Mexico and Venezuela, have not South American nation has approximately 2.1 Tedros Adhanom Ghebreyesus has praised fully paid their 2019 or 2020 assessments. million confirmed cases of Covid-19 and, on Chinese President Xi Jinping for his political The United States’ unpaid balance of $110 Monday, the death toll surpassed 81,000, AFP ‘leadership,’ despite the regime covering million represents 67 percent of the total in reported. Continued on page 4

FEATURED Q&A / Continued from page 3 LATIN AMERICA ADVISOR is published every business day by the Inter-American Dialogue, Copyright © 2020 arrears. A U.S. withdrawal could also cancel have collaborated in the identification and long-standing voluntary contributions that resolution of the most serious global and Erik Brand support the hiring of technical personnel, public health threats. U.S. scientists and Publisher [email protected] such as immunization experts, at the country the U.S. government’s support have been level. Even if it does withdraw from the extremely relevant in the resolution of the Gene Kuleta Editor WHO, the United States should find a way to H1N1 pandemic, in the Ebola outbreak in [email protected] maintain PAHO membership, pay its 2019 Africa and Covid-19. U.S. scientists and the Anastasia Chacón González and 2020 assessments and contribute to CDC have always been involved in respond- Reporter & Associate Editor a supplementary fund to provide members ing to a disease outbreak or pandemic [email protected] with critical supplies to address the coronavirus pandemic. With any return to normal

tied to the effective distribution of a vaccine By withdrawing from Michael Shifter, President to prevent infection with the virus that Rebecca Bill Chavez, Nonresident Senior Fellow causes Covid-19, scaling back U.S. support the WHO, the United States will lose Sergio Bitar, Nonresident Senior Fellow for regional public health collaborations now Joan Caivano, Director, Special Projects would be shortsighted.” leadership, respect Michael Camilleri, Director, Rule of Law Program and trust with its in- Kevin Casas-Zamora, Nonresident Senior Fellow Carlos Espinal, director of the ternational partners.” Héctor Castro Vizcarra, Nonresident Senior Fellow Global Health Consortium at — Carlos Espinal Julia Dias Leite, Nonresident Senior Fellow the Robert Stempel College of Ariel Fiszbein, Director, Education Program A Public Health & Social Work at Peter Hakim, President Emeritus Florida International University: “The WHO situation by helping the WHO and countries Nora Lustig, Nonresident Senior Fellow is responsible for coordinating international in critical phases of any public health threat Margaret Myers, Director, Asia and responses to public health issues, issuing in the identification of the problem, surveil- Latin America Program Manuel Orozco, Director, Migration, specific guidelines for prevention, diagnosis, lance, evaluation and implementation of Remittances & Development control and treatment of diseases, sup- control measures and impact evaluation. By Xiaoyu Pu, Nonresident Senior Fellow ported among others by U.S. scientists and withdrawing from the WHO, the United States Jeffrey Puryear, Senior Fellow government bodies. It’s the only agency that will lose leadership, respect and trust with Mateo Samper, Nonresident Senior Fellow can declare a Public Health Emergency of In- its international partners. The U.S. scientific Tamar Solnik, Director, Finance & Administration ternational Concern (such as the 2009 H1N1 community will forfeit its capacity to influ- Lisa Viscidi, Director, Energy Program and the present Covid-19 pandemics)—the ence good practices in public health. Also, it Denisse Yanovich, Director of Development and highest level of alert in global public health, will lose the access to the WHO Global Infor- External Relations which unlocks additional financial support. mation System for sharing data and vaccine Latin America Advisor is published every The WHO and its regional offices have strains. It will also miss the chance to know business day, except for major U.S. holidays, played a very important role in improving since the very early stages the origin and by the Inter-American Dialogue at 1155 15th Street NW, Suite 800 global health conditions. Its objectives have place of potential pandemic pathogens and Washington, DC 20005 always been aimed at promoting the princi- new health threats, making the world and www.thedialogue.org ples of human rights, universality and equity, the United States more vulnerable for severe ISSN 2163-7962 as well as the integral development of the outbreaks. This is not a question of money Subscription inquiries are welcomed at population under the concept of One Health, anymore; it’s about trust, honor, reputation [email protected]

an approach to designing and implementing and partnership.” The opinions expressed by the members of the Board of partnership initiatives to develop programs, Advisors and by guest commentators do not necessarily health policies, research and legislation. The Advisor welcomes comments on its Q&A represent those of the publisher. The analysis is the sole view of each commentator and does not necessarily The United States has been an instrumental section. Readers can write editor Gene Kuleta represent the views of their respective employers or firms. member of global expert committees that at [email protected]. The information in this report has been obtained from reliable sources, but neither its accuracy and completeness, nor the opinions based thereon, are guaranteed. If you have any questions relating to the contents of this publication, contact the editorial offices of the Inter-American Dialogue. Contents of this report may not be reproduced, stored in a retrieval system, or transmitted without prior written permission from the publisher.