LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Tuesday, September 5, 2017
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LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Tuesday, September 5, 2017 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk Corporate VP, Global Corporate Affairs Will Infrastructure Macron Meets Cargill With Venezuelan Joyce Chang Global Head of Research, Investments Pay Opposition JPMorgan Chase & Co. W. Bowman Cutter Leaders Former Partner, Off in Bolivia? French President Emmanuel E.M. Warburg Pincus Macron met in Paris with leaders Dirk Donath of Venezuela’s opposition. Absent Senior Partner, Catterton Aimara from the meeting was Lilian Tintori, the wife of opposition Barry Featherman Senior Director, leader Leopoldo López, who was International Government Affairs, prevented from leaving Venezuela. Gilead Sciences Page 2 Marlene Fernández Corporate Vice President for Government Relations, BUSINESS Arcos Dorados Peter Hakim Banco do Brasil President Emeritus, Inter-American Dialogue Seeks to Sell Stake Donna Hrinak in Neoenergia Bolivian President Evo Morales on Aug. 13 enacted a law to allow the construction of a road President, Boeing Latin America through the Isiboro Sécure Indigenous Territory and National Park, known as TIPNIS. // File The state-controlled bank has a Jon Huenemann Photo: Bolivian Government. 9 percent stake in the Brazilian Vice President, U.S. & Int’l Affairs, Philip Morris International Bolivian President Evo Morales last month gave the green power utility. Page 2 James R. Jones light to build a controversial highway that will cut through Chairman, Monarch Global Strategies the Amazon, with the aim of opening the TIPNIS park to Q POLITICAL Craig A. Kelly timber and minerals companies. Morales also recently Director, Americas International Colombian Gov’t, Gov’t Relations, Exxon Mobil inaugurated the country’s fi rst electric train, a $500 million project that John Maisto will connect the fi ve municipalities of Cochabamba. Is Bolivia making ELN Rebels Sign Director, U.S. Education the right kinds of investments to modernize its transportation infra- Finance Group Cease-Fire Nicolás Mariscal structure? Will the country’s efforts to boost infrastructure bring the The government of Colombian Chairman, promised levels of economic growth? Which sectors and constituencies President Juan Manuel Santos Grupo Marhnos have the most to gain from these infrastructure investments, and which and the National Liberation Army, Thomas F. McLarty III or ELN rebels, signed a temporary Chairman, are being left out? cease-fi re that takes effect Oct McLarty Associates 1. The deal came ahead of Pope Carlos Paz-Soldan Francis’ visit to Colombia. Partner, Iván Rebolledo, managing partner at TerraNova Strategic DTB Associates, LLP Page 2 Beatrice Rangel Partners LLC and president of the Bolivian-American Cham- Director, ber of Commerce: “Bolivia clearly is headed in the right direc- AMLA Consulting LLC tion in expanding its infrastructure network, especially in the Gustavo Roosen A Chairman of the Board, area of transportation. Unfortunately, the TIPNIS initiative has been rid- Envases Venezolanos dled with problems since its inception. After historic marches and armed Andrés Rozental President, Rozental & confrontation, the government passed Law 180, which put a stop to Asociados and Senior Policy Advisor, Chatham House further infrastructure projects in this unique ecosystem. In 2012, after a Shelly Shetty ‘Consulta Previa’ process (which is unusual, since the decision to proceed Head, Latin America with the road construction had already been approved), the government Sovereign Ratings, Fitch Inc. Roberto Sifon-Arevalo revoked Law 180, arguing that the road project would bring needed health Managing Director, Americas care, education and development to the region. It is important to point out Sovereign & Public Finance Ratings, Standard & Poor’s that this road initiative will clearly benefi t the coca-producing inhabitants of TIPNIS, since it passes directly through their communities and is actu- Santos // Photo: Colombian Government. Continued on page 3 COPYRIGHT © 2017, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Tuesday, September 5, 2017 POLITICAL NEWS priest who is a member of Francis’ Jesuit order, NEWS BRIEFS has helped broker the negotiations between Colombian Gov’t, Colombia’s government and the ELN, The Irma Strengthens to Washington Post reported. The rebel group for Category 5 Hurricane, ELN Rebels Sign years was led by Catholic priests, but de Roux has called on the rebels to end its violence. Takes Aim at Caribbean Cease-Fire “Kidnapping doesn’t destroy capitalism, nor Hurricane Irma this morning strengthened to an does it destroy imperialism. It destroys the kid- “extremely dangerous” Category 5 hurricane, Colombia’s government and the country’s Na- napper and the kidnapped,” de Roux previously with sustained winds of 175 miles an hour, the tional Liberation Army, or ELN, rebels on Mon- said. The cease-fi re with the ELN came nine U.S. National Hurricane Center said. As of 8 day signed a temporary cease-fi re agreement, months after the government signed a peace a.m. Eastern Time, the storm was located 270 The Washington Post reported. The agreement accord with the larger Revolutionary Armed miles east of the island of Antigua, moving was Colombia’s fi rst cease-fi re with the ELN Forces of Colombia, or FARC, rebels. west at 14 miles an hour. Hurricane warnings and came just ahead of a visit by Pope Francis are in effect for parts of the Dominican Repub- Macron Meets lic as well as Puerto Rico and other islands. The pope will arrive at With Venezuelan a unique moment in our history, when we Opposition Leaders Trump Expected to Revoke are turning the page Program for Immigrants of an absurd confl ict French President Emmanuel Macron met Who Migrated as Children Monday with Venezuelan opposition leaders and we are looking U.S. President Donald Trump is expected to discuss the country’s humanitarian and toward the future.” today to revoke a program that shields some political crisis, the Associated Press report- — Juan Manuel Santos immigrants who came to the United States as ed. The meeting happened two days after children from deportation, leaving their fate in Venezuela’s government barred the activist the country to Congress, which would have six to the South American country. The cease-fi re, and wife of opposition leader Leopoldo López, months to design a new program addressing which was signed in Quito, is set to begin on Lilian Tintori, from leaving the country in order the policy, Reuters reported. The expected Oct. 1 and last until Jan. 12. Under the deal, to attend the meeting in Paris. Venezuelan decision would mean a six-month extension of the rebels, who have for decades engaged in Foreign Minister Jorge Arreaza on Monday said the Deferred Action for Childhood Arrivals, or attacks on civilians and oil pipelines, as well as he fi led complaints with the ambassadors of DACA program, while Congress works on cre- kidnappings and extortion, agreed to halt those four countries, saying they were intervening in ating a replacement. DACA was created under activities. In return, Colombia’s government former President Barack Obama in 2012 after agreed to provide improved conditions to jailed Congress failed to pass legislation that would ELN rebels and as well as bolstered security provide a path to citizenship for undocumented for leftist community leaders, the newspaper youth. reported. Colombian President Juan Manuel Santos announced the cease-fi re on Monday, saying the deal came together in part to honor Pope Francis, who arrives Wednesday after- Banco do Brasil Plans noon in Colombia for a fi ve-day visit. “The pope to Sell Stake in Neoenergia will arrive at a unique moment in our history, State-controlled Banco do Brasil plans to sell when we are turning the page of an absurd con- Venezuelan National Assembly President Julio Borges met fl ict and we are looking toward the future,” said Monday with French President Emmanuel Macron (L-R) in its 9 percent stake in Brazilian power utility Paris. // Photo: @JulioBorges. Santos. The Catholic Church under Francis, the Neoenergia, which is working on an initial public offering in the coming months, Reuters fi rst Latin American pope, has increased its Venezuela’s affairs. Tintori tweeted a photo of reported Sept. 1. In a securities fi ling on Sept. diplomatic efforts in the region. The Vatican the Spanish, German and Italian ambassador 1, Banco do Brasil said both management and helped the thaw in relations between the United to Venezuela at the airport, saying they had board members have authorized Neoenergia to States and Cuba in 2015 and has also tried to accompanied her, Reuters reported. “These begin the procedures for the IPO. The IPO could bring together Venezuela’s government and types of expressions are absurd and offensive value the company at approximately 35 billion the country’s opposition. Francisco de Roux, a to the functioning of Venezuelan democracy reais, Reuters reported in July. COPYRIGHT © 2017, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Tuesday, September 5, 2017 FEATURED Q&A / Continued from page 1 and its institutions,” said Arreaza, the AP reported. Julio Borges, the president of the ally on the other side of the TIPNIS territory, benefi ts. If they are pushed through anyway, opposition-led National Assembly, and Freddy which is where most of the indigenous com- the project winners will be timber exporters, Guevara, the fi rst vice president of the legisla- munities who have the most to gain from agribusiness, coca growers and mining ture, plan to continue with meetings scheduled the development that this road would bring products. The losers may be the communi- this week with European leaders. The meetings are living. In mid-2016, Morales promulgated ties of the Amazon, civil society in general, are aimed at increasing pressure on President Law 266, which now opens the area for road the environment and prospects for long-term Nicolás Maduro to hold elections, respect the construction and other projects.