LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Thursday, July 14, 2016
Total Page:16
File Type:pdf, Size:1020Kb
LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Thursday, July 14, 2016 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group ECONOMIC Devry Boughner Vorwerk Have Brazil’s Senior Policy Advisor Cuba Sacks Akin Gump Strauss Hauer & Feld, LLP Economy Minister Joyce Chang Global Head of Research, Problems Cost it Cuba’s government removed JPMorgan Chase & Co. Marino Murillo from his position W. Bowman Cutter and reassigned him to overseeing Former Partner, International Clout? the country’s market reforms. E.M. Warburg Pincus The government named Ricardo Dirk Donath Cabrisas Ruíz to replace Murillo Senior Partner, Catterton Aimara as economy minister. Marlene Fernández Page 2 Corporate Vice President for Government Relations, Arcos Dorados POLITICAL Peter Hakim Mexico Agrees President Emeritus, Inter-American Dialogue to Revise Donna Hrinak President, Boeing Latin America Teacher Exams Jon Huenemann The teacher evaluations have Vice President, U.S. & Int’l Affairs, been among the most controver- Philip Morris International sial parts of President Enrique James R. Jones Interim Brazilian President Michel Temer reportedly plans to attend the BRICS summit later this Peña Nieto’s education reforms, Co-chair, Manatt Jones year in India if Brazil’s Senate permanently removes President Dilma Rousseff from offi ce. // which have led to violent protests. Global Strategies LLC File Photo: Brazilian Government. Page 2 Craig A. Kelly Director, Americas International Brazil continues to suffer through its worst economic Gov’t Relations, Exxon Mobil recession in decades, coupled with political turmoil that has POLITICAL John Maisto Director, U.S. Education made it unclear which person and party will be governing the Brazil’s Lower Finance Group Q country several months from now. Against that backdrop, Nicolás Mariscal House Elects Maia Chairman, media reports have speculated on the role and clout of Brazil in the next New Speaker Grupo Marhnos BRICS summit, scheduled for October in India. Have Brazil’s high-pro- Brazil’s Chamber of Deputies in to- Thomas F. McLarty III fi le problems changed the way the nation sees its role in the world and Chairman, day’s early morning hours elected McLarty Associates as a leader of the “global south?” Has Brazil’s leveraging power on the Rodrigo Maia as its new speaker. Carlos Paz-Soldan international stage been diminished by its ongoing scandals and deep Maia, an ally of Interim President Partner, Michel Temer, replaces Eduardo DTB Associates, LLP economic problems? How would Interim President Michel Temer, who Cunha who is facing corruption Beatrice Rangel reportedly plans to attend the BRICS summit if suspended President allegations. Director, AMLA Consulting LLC Dilma Rousseff is ousted from offi ce in August, change the way Brazil Page 2 José Antonio Ríos deals with the bloc’s agenda, compared to Rousseff’s handling of the Chief Executive Offi cer, Vadium Technology Inc. group of emerging market powers? Gustavo Roosen Chairman of the Board, Envases Venezolanos Margaret Myers, director of the China and Latin America Andrés Rozental Program at the Inter-American Dialogue: “Brazil’s global in- President, Rozental & Asociados and Senior fl uence has undeniably decreased as the country has entered Policy Advisor, Chatham House into a period of economic and political turmoil. Brazil has for Shelly Shetty A Head, Latin America many years been a vocal champion of the new global south, along with Sovereign Ratings, Fitch Inc. China and other emerging powers. It joined BRICS in 2008 and became a Roberto Sifon-Arevalo member of the grouping’s New Development Bank in 2014. Dilma agreed Managing Director, Americas Sovereign & Public Finance Ratings, in 2015 to join the China-backed Asian Infrastructure Investment Bank, or Standard & Poor’s AIIB, a supposed alternative to the Bretton Woods multilaterals, despite Maia // File Photo: Brazilian some Brazilian opposition to the endorsement. At the time, Brazil’s $3 Government. Continued on page 2 COPYRIGHT © 2016, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Thursday, July 14, 2016 POLITICAL NEWS economist who worked in banking before enter- NEWS BRIEFS ing politics, Reuters reported. He has signaled Brazil’s Lower that he would support Temer’s efforts to pass Mexico Agrees to Revise economic reforms to pull Brazil out of its deep Teacher Evaluation Exam House Selects Maia recession. “I will talk to Temer, who enjoys the support of my party. We are convinced that this The Mexican government has agreed to revise as New Speaker government will overcome this crisis and the the evaluation exam given to all teachers, lower house will help in that task,” Maia told re- which has been a focal point of teacher pro- Brazil’s Chamber of Deputies in today’s early porters after the vote, Reuters reported. Maia, tests, offi cials said Wednesday, the Associated morning hours selected Rodrigo Maia, an a strong opponent of suspended President Press reported. Education Secretary Aurelio ally of interim President Michel Temer as the Dilma Rousseff, won the speakership with 285 Nuño made the announcement the same day lower house’s new speaker. Voting began in votes, defeating Rogerio Rosso of the Social the Mexican government was set to hold its Democrats party, who garnered 170 votes. fi rst working group meeting with represen- tatives from the protesting teachers’ union. We are convinced that Nuño emphasized that the move was not a this government will ECONOMIC NEWS concession to some teachers’ demands for the overcome this crisis reforms, which were approved in 2013, to be and the lower house completely voided. [Editor’s note: See related will help in that task.” Cuban Gov’t Sacks Q&A in the July 7 issue of the Advisor.] — Rodrigo Maia Economy Minister the chamber on Wednesday at about 5:30 p.m. The Cuban government announced Wednes- Salvadoran Supreme and stretched past midnight, with Maia winning day night that its economy minister, Marino Court Strikes Down the election on the second ballot, Bloomberg Murillo, was removed from his post following News reported. Maia replaced Eduardo Cunha, Civil War Amnesty Law Cuban President Raúl Castro’s warning last who resigned last week as the lower house’s week that Cubans would have to tighten their El Salvador’s Supreme Court on Wednesday speaker amid a graft investigation that could belts amid socialist ally Venezuela’s ongoing struck down a 1993 amnesty law that blocked lead to his expulsion from Congress. Cunha economic crisis, BBC News reported today. prosecution for human rights abuses commit- denies wrongdoing. Maia is a member of the The government announced Murillo would now ted during the country’s civil war, the Associat- right-leaning Democrats party as well as an be in charge of spearheading market reforms. ed Press reported. The high court declared that parts of the law were unconstitutional. FEATURED Q&A / Continued from page 1 billion capital subscription to the bank was Brazil seeks a prominent global role. For the a tall order for a slowing domestic econ- time being, however, Brazil’s global clout has Argentine, Bolivian State omy. One year later, Brazil’s deteriorating diminished. The Olympics will be a critical Energy Companies to economic situation has further weakened litmus test of Brazilian leadership’s capacity Jointly Explore for Gas the country’s ability to support these to govern even at home.” institutions. Active participation in new and Argentine state-run energy company YPF existing fi nancial institutions is also far less Gary Clyde Hufbauer, Reginald signed an agreement Wednesday with Bolivian politically viable now that Brazilians are Jones Senior Fellow at the state energy company YPFB to explore an area facing growing infl ation and unemployment Peterson Institute for Inter- in eastern Bolivia with potential natural gas at home. Brazil’s potential for economic A national Economics: “Political reserves totaling 2.7 trillion cubic feet, EFE re- growth and global leadership is nonethe- upheaval plus a deep recession should ported Wednesday. YPFB CEO Guillermo Acha less immense. It is still the region’s largest inspire radically different trade policies and YPF’s vice president for natural gas and economy, and one that is rich in agricultural in Brazil. Hardship opens the way for new energy, Marcos Browne, signed the deal on the and other resources. Brazil has aspired to thinking, and Brazil’s trade policies certainly second day of a petroleum conference in Boliv- great power status for more than a century, need fresh air. The geo-economic alliance ia. Acha told reporters that YPF would become moreover. This recent boom period was not with Russia, India, China and South Africa a new participant in Bolivia’s hydrocarbons the fi rst time, and will not be the last, that gave Brazil a high profi le on the world stage sector. The agreement covers the 383 square mile Charagua area in the eastern province of Continued on page 4 Santa Cruz. COPYRIGHT © 2016, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Thursday, July 14, 2016 Murillo’s replacement is another veteran politi- cian, Ricardo Cabrisas Ruíz, who has overseen THE DIALOGUE CONTINUES Cuba’s recent debt restructuring. Castro has told Cubans to brace for tough economic times during the second half of this year as govern- Will More Latin Americans ment institutions restrict energy consumption. Embrace Mobile Education? The decision to transfer Murillo to a new post indicates growing uncertainty surrounding Mexican telecommunications we want students to become smarter than a Cuba’s economy, according to BBC News. In magnate Carlos Slim last month smartphone, we need to think harder about recent months and years, Cuba has made some launched Aprende, a free online 21st century pedagogies. Technology can changes to its economy, including legalizing Q educational platform that will amplify great teaching, but great technology small and medium-sized private businesses offer training opportunities for anyone with does not replace poor teaching.