LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Tuesday, March 30, 2021
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LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Tuesday, March 30, 2021 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group ECONOMIC Devry Boughner Vorwerk Are Bolivian Politics Argentine Bank Chief Corporate Affairs Officer, Grubhub Groups Seek Joyce Chang Global Head of Research, Focused on Unity Eased Regulations JPMorgan Chase & Co. Officials from Argentina’s four Paula Cifuentes largest banking industry groups Director of Economic & Fiscal Affairs, or Retribution? have reportedly asked the govern- Latin America & Canada, Philip Morris International ment to ease some regulations. Marlene Fernández Page 2 Corporate Vice President for Government Relations, Arcos Dorados (McDonald’s) BUSINESS Peter Hakim President Emeritus, Brazil’s Raízen Inter-American Dialogue Taps Banks Donna Hrinak Senior VP, Corporate Affairs, to Manage IPO Royal Caribbean Group Brazilian energy company Raízen, Jon E. Huenemann a joint venture between Cosan and Council Member, Royal Dutch Shell, has reportedly GLG Inc. tapped four investment banks to James R. Jones Former interim Bolivian President Jeanine Áñez’s interior minister sought to imprison leftist Chairman, former President Evo Morales. Now, an ally of Morales is president, and Áñez is behind bars. // manage its initial public offering. Monarch Global Strategies Photo: @JeanineAnez via Twitter. Page 3 Craig A. Kelly Upon taking office, leftist Bolivian President Luis Arce Senior Director, Americas Int’l Gov’t Relations, Exxon Mobil vowed to unite the politically divided country, as did his POLITICAL John Maisto predecessor, conservative Jeanine Áñez. However, shortly Bolsonaro Shuffles Director, U.S. Education Finance Group Q after Áñez’s government took over in November 2019, her in- Cabinet Amid Nicolás Mariscal terior minister sought to imprison leftist former President Evo Morales. Chairman, Intense Criticism Grupo Marhnos Now, four months after taking office, Arce’s government has arrested Over Pandemic Thomas F. McLarty III Áñez and some of her cabinet members. Is Bolivia facing continued Brazilian President Jair Bolsonaro, Chairman, McLarty Associates cycles of retribution, with leftists in power pursuing conservatives, and who is facing intense criticism Beatrice Rangel conservatives in power seeking to jail leftists? What will such actions over his handling of the Covid-19 Director, mean for Bolivia’s political stability going forward? What does Bolivia’s pandemic, which has been killing AMLA Consulting LLC more than 100 people an hour Jaana Remes political situation mean for businesses with interests and operations in in Brazil, shuffled his cabinet. Partner, the Andean nation? Among those out is Foreign McKinsey Global Institute Minister Ernesto Araújo. Ernesto Revilla Page 2 Head of Latin American Daniel E. Moreno, senior researcher at Ciudadanía, Comuni- Economics, Citi Gustavo Roosen dad de Estudios Sociales y Acción Pública in Cochabamba, Chairman of the Board, Bolivia: “What is happening now in Bolivia is a clear example Envases Venezolanos Andrés Rozental of what can happen when the integrity and independence President, Rozental & A of the institutions that are supposed to guarantee democracy’s checks Asociados and balances are compromised. New examples of corrupt and politically Shelly Shetty Managing Director, Sovereigns dependent judges and public prosecutors come to light almost daily, Fitch Ratings further eroding citizens’ trust of these institutions and in the rule of law in the country. According to LAPOP data for 2019, the share of Bolivians who think that the courts guarantee a free trial is among the lowest in the region, and it has been declining sharply over the last decade. Under a polarized political scenario, a weak judicial system works as a throwaway weapon for those in control of the executive branch. If Bolivian judicial in- Araújo // File Photo: Brazilian Government. Continued on page 3 COPYRIGHT © 2021, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Tuesday, March 30, 2021 POLITICAL NEWS Netto, CNN reported. Bolsonaro also sacked NEWS BRIEFS Attorney General José Levi do Amaral, replac- Brazil’s Bolsonaro ing him with Justice Minister André Mendonça. Number of Children Federal Police Chief Anderson Torres will Transiting Darién Gap Shuffles Cabinet as replace Mendonça as justice minister. Bolson- aro also tapped Government Secretary Luiz Surges: UNICEF Covid Deaths Soar Eduardo Ramos as his chief of staff, replacing The number of migrant children transiting the Souza Braga Netto in that position. Bolsonaro dangerous Darién Gap between Colombia and Brazilian President Jair Bolsonaro shuffled sev- named lawmaker Flávia Arruda as government Panama has surged over the past year, the eral members of his cabinet on Monday as he secretary. U.N. child welfare agency said Monday, the faces intensifying criticism of his government’s Associated Press reported. While underage mi- handling of the Covid-19 pandemic amid soar- grants were only 2 percent of those using the ing numbers of cases and deaths from the dis- ECONOMIC NEWS jungle corridor in 2017, the number of children ease, The Wall Street Journal reported. Among passing through in 2020 jumped to 25 percent the officials moved out of their positions was Argentine Bank of migrants making the journey on foot, UNICEF Foreign Minister Ernesto Araújo, who had faced said in a report. The Darién Gap is a 60-mile sharp criticism from opposition lawmakers Groups Seek stretch of jungle with no clear track and little who blamed him for delays in shipments of food and shelter. It is the only land route north vaccine inputs from China, the newspaper re- Eased Regulations out of South America. ported. In a blog post last year, Araújo blamed the Covid-19 pandemic on what he character- Officials from Argentina’s four largest banking ized as a communist plot. “Using the pretext of industry groups have held several calls and Argentina Suspends Meat the pandemic, this new communism is trying meetings in recent weeks with central bank to create a world without nations, and without chief Miguel Ángel Pesce and Production Exporters for Avoiding freedom,” he wrote, The Wall Street Journal Minister Matías Kulfas, asking them to ease Industry Regulations reported. Araújo is also considered an obstacle some regulations, the Buenos Aires Times Argentina announced Monday it had sus- in Brazil’s efforts to obtain surplus doses of reported Saturday, citing unnamed people with pended 15 meat exporters who reportedly Covid-19 vaccines from the United States. Bol- knowledge of the matter. Amid the pandemic, avoided industry regulations, Reuters reported. sonaro said late Monday that diplomat Carlos commercial banks were required last year to The move derailed at least 40 metric tons of Alberto Franco França would succeed Araújo. defer some loan payments, give out loans with meat shipments from one of the world’s most Bolsonaro, who has downplayed the threat of interest rates below the rate of inflation and renowned beef producers, though the country’s Covid-19 and had said Brazilians should “stop eliminate commissions for some services. agriculture ministry did not list the names of whining” about it, has recently started wearing However, the government is now reluctant to the companies involved. The ministry said it a face mask more frequently in public and has end these measures as it tries to revive the had discovered several meat export operations said vaccination is important, the newspaper economy ahead of the country’s midterm elec- that had undercut competitors and evaded tax- reported. Brazil has recorded more than 12.5 tions, the sources told the Buenos Aires Times. es by not properly registering their businesses million cases of Covid-19 and more than A spokesman at the central bank declined to with the state, Reuters reported. 313,000 deaths from it since the pandemic confirm the meetings to the newspaper, but a began a year ago, according to Johns Hopkins Production Ministry spokesman said talks are University. Only the United States has record- ongoing. Argentine bank chambers ABA, ABE, ed more cases and deaths from the disease, Adeba and Abappra declined to comment. In Payment Infrastructure though Mexico’s health ministry acknowledged 2020, Argentina’s bank sector had its lowest Provider Dapi Launches on Saturday that its actual number of Covid-19 return on equity since 2007, according to data Service in Mexico deaths may be higher than Brazil’s. In Brazil, a from the central bank. Last year, the country’s highly contagious variant of the novel corona- banks lost more than 50 billion pesos ($546 Global payment infrastructure provider Dapi, virus has led to Brazil accounting for as much million). During the meetings, bankers report- which is based in San Francisco and Abu as a third of global deaths from the disease edly urged Pesce to eliminate or lower the Dhabi, on Friday announced the launch of its even though it has less than 3 percent of the minimum interest rate on certificate deposits. permission-based bank payment initiation and world’s population. On Monday, Bolsonaro also Despite last year’s economic challenges for account data aggregation services in Mexico. replaced Defense Minister Fernando Azevedo Argentina’s banks, the sector remained “rela- Dapi said the move makes it among the first e Silva with Army General Walter Souza Braga tively resilient, thanks to conservative policies companies to offer integrated bank transfer payments to fintechs in Mexico. COPYRIGHT © 2021, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Tuesday, March 30, 2021 and regulations, which have resulted in a low FEATURED Q&A / Continued from page 1 credit penetration,” Cynthia Cohen Freue, senior director and sector lead for financial institu- stitutions are not amended—if, for instance, will diminish the administration’s ability to tions ratings at S&P Global Ratings, told the the popular election of high judges is not do so. This means operational and economic Dialogue’s Financial Services Advisor in a Q&A replaced by a more meritocratic way of ap- risks will be high.