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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Wednesday, September 4, 2019 LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Wednesday, September 4, 2019 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk Why Is Paraguay’s Parts of Bahamas CEO, DevryBV Sustainable Strategies ‘Decimated’: Joyce Chang Global Head of Research, President Seeing His Prime Minister JPMorgan Chase & Co. The death toll stands at seven Paula Cifuentes but is likely to rise after Hurricane Director of Economic & Fiscal Affairs, Support Evaporate? Dorian relentlessly pounded the Latin America & Canada, Philip Morris International island nation, said Prime Minister Marlene Fernández Hubert Minnis. Corporate Vice President for Page 2 Government Relations, Arcos Dorados Peter Hakim ECONOMIC President Emeritus, Inter-American Dialogue Argentina Donna Hrinak Announces Hike President, Boeing Latin America Jon E. Huenemann of Minimum Wage Former Corporate and Argentina’s government an- Government Senior Executive nounced that it would raise the James R. Jones minimum wage by 35 percent over Chairman, Paraguayan President Mario Abdo Benítez has been in office just more than a year and has Monarch Global Strategies seen his support plummet. // File Photo: Paraguayan Government. the next three months. The move follows President Mauricio Mac- Craig A. Kelly ri’s stunning loss in last month’s Director, Americas International Paraguayan President Mario Abdo Benítez on Aug. 15 Gov’t Relations, Exxon Mobil primary. John Maisto marked one year in office. Abdo Benítez has faced a high Page 2 Director, U.S. Education disapproval rate, of nearly 70 percent, and he survived a Finance Group Q recent push for his impeachment over a controversial energy POLITICAL Nicolás Mariscal Chairman, deal with Brazil. What is behind Abdo Benítez’s high disapproval rate? Grupo Marhnos Pentagon Frees How well has he led Paraguay over the past year? What are the main Thomas F. McLarty III $3.6 Billion for Chairman, challenges he faces in his second year in office? McLarty Associates Border Wall Carlos Paz-Soldan U.S. Defense Secretary Mark Es- Partner, Flora Rojas, executive director of CEMAF in Asunción: “The per authorized freeing as much as DTB Associates, LLP most relevant reason for Abdo Benítez’s high disapproval rate $3.6 billion from military construc- Beatrice Rangel tion projects for President Donald Director, is how he dealt with the agreement for the annual contracting AMLA Consulting LLC Trump’s promised wall along the of energy from the Itaipú hydroelectric power plant. Engineer U.S.-Mexico border. Jaana Remes A Partner, Pedro Ferreira, former president of the Paraguay electric company, in July Page 2 McKinsey Global Institute denounced the actions that took place during meetings with Brazilian au- Ernesto Revilla Head of Latin American thorities, which unleashed a political catastrophe that led to Abdo Benítez Economics, Citi being criticized as a traitor. This generated massive discontent, to such Gustavo Roosen Chairman of the Board, an extent that legislators were debating an impeachment process, which Envases Venezolanos was truncated weeks later due to lack of support from legislators answer- Andrés Rozental ing to former President Horacio Cartes, who opposed a trial. Last year, President, Rozental & Asociados Abdo Benítez allowed justice to operate away from political concerns, Shelly Shetty such as with Senator Óscar González Daer being charged with influence Head of Sovereign Ratings, Latin America, Fitch peddling and Deputy Ulises Quintana being charged as a suspect in a Roberto Sifon-Arevalo similar influence-peddling case. In Paraguay, politicians enjoy protection Managing Director, Americas Sovereign & Public Finance Ratings, from justice and the police—but are now being teated similarly to ordinary Standard & Poor’s citizens, which has been seen as progress. Abdo Benítez faces many challenges. Politically, the challenge is implementing mechanisms where Esper // File Photo: U.S. Senate. Continued on page 3 COPYRIGHT © 2019, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Wednesday, September 4, 2019 POLITICAL NEWS ZNS, the AP reported. Speaking to reporters, NEWS BRIEFS Minnis said, “No effort or resource will be held Parts of Bahamas back.” Dorian pummeled the northern Abaco Is- Ambush by Drug lands and Grand Bahama with winds as high as Gang Kills Four ‘Decimated’, Death 185 miles an hour. Late Tuesday, it was down- graded to a Category 2 hurricane with winds a Colombian Soldiers Toll to Rise: Minnis still-dangerous 175 miles an hour. As of 8 a.m. Four Colombian soldiers were killed, and two Eastern Time today, Dorian’s eye was located officers were wounded on Tuesday when they Some areas of the Bahamas have been “dec- about 95 miles east-northeast of Daytona were attacked during an operation to protect imated” after slow-moving Hurricane Dorian Beach, Fla., and moving north-northwest at 8 rural peasants, the army said, blaming the relentlessly pounded the island nation, leaving miles an hour, with maximum sustained winds ambush on the Gulf Clan, the Associated at least seven dead, a number that is likely to of 105 miles an hour, according to the U.S. Na- Press reported Tuesday. The drug gang, whose rise, said Prime Minister Hubert Minnis, BBC tional Hurricane Center. More than two million forces have grown since the government and News reported. “We can expect more deaths to people along the coastlines of Florida, Georgia, the former Revolutionary Armed Forces of Co- be recorded. This is just preliminary informa- North Carolina and South Carolina were warned lombia, or FARC, rebel group reached a peace tion,” Minnis said Tuesday, calling the powerful to evacuate. [Editor’s note: See related Q&A in deal in 2016, has been fighting for control of a the July 15 issue of the Advisor.] drug-smuggling route near the western Colom- bian town of Caucasia. It’s total devastation.” Pentagon Frees — Lia Head-Rigby $3.6 Billion for Border Argentine Government hurricane “one of the greatest national crises Wall Construction Announces Minimum in our country’s history.” Aerial images over the Wage Increase Bahamas’ Abaco Islands showed widespread U.S. Defense Secretary Mark Esper on Tuesday Argentina’s government announced Tuesday destruction, with roofs torn off homes, vehicles authorized freeing up $3.6 billion in funding that it will increase the country’s minimum overturned and shipping containers and boats from military construction projects to instead wage by 35 percent over the next three months, tossed over, as well as high water levels. Some build 175 miles of President Donald Trump’s Bloomberg News reported. The move will hike parts of the Bahamas were doused with as promised wall along the U.S.-Mexico border, the monthly minimum wage from 12,500 pesos much as 35 inches of rain during the storm. the Associated Press reported. Pentagon ($215) to 16,875 pesos. The move follows a The extent of the damage on Grand Bahama officials did not say which 127 projects will be rout of the peso after Peronist presidential can- Island was less clear as Dorian only stopped affected, though they said half of the money didate Alberto Fernández trounced President pounding the island on Tuesday night, following will come from projects in the United States, Mauricio Macri in the country’s primary. nearly two days of sitting stationary on top of and the remainder will come from projects in it. Several communications lines on the island other countries. In a letter to the Senate Armed were down, and Minnis said Tuesday that major Services Committee, Esper wrote that he has relief workers were yet to arrive. Lia Head-Rig- “determined 11 construction projects along Brazil’s Caixa Expects IPO by, who helps to operate a local hurricane relief the international border with Mexico, with an of Insurance Unit This group, viewed the Abaco Islands by air. “It’s estimated total cost of $3.6 billion, are nec- Year: Chief Executive total devastation. It’s decimated. Apocalyptic,” essary to support the use of the armed forces she told the Associated Press. “It’s not rebuild- in connection with the national emergency,” Brazilian state-owned bank Caixa Econômi- ing something that was there; we have to start CNN reported. The letter does not include the ca Federal expects to hold an initial public again.” Head-Rigby added that her representa- world “wall,” but it outlines how the money offering of its insurance unit this year, but it tive on Abaco reported “a lot more dead” and will be diverted toward new fencing projects has delayed its card business’ IPO to next year that bodies were being gathered. Emergency at various border locations, according to the to avoid competition for the same investors in workers struggled to reach victims on Tuesday report. Pentagon comptroller Elaine McCusker the insurance share sale, CEO Pedro Guimarães and urged people to maintain hope. “We don’t said the now-unfunded projects are simply said Tuesday, Reuters reported. “It doesn’t want people thinking we’ve forgotten them ... being “deferred,” not canceled, but there is no make sense to take two operations of this size We know what your conditions are,” Tammy guarantee from Congress that the money will to market almost simultaneously,” he said. Mitchell of the Bahamas’ National Emergency be replaced, the AP reported. “It is a slap in Guimarães added that regulatory hurdles are Management Agency told local radio station the face to the members of the Armed Forces delaying the planned IPOs for several of the bank’s subsidiaries. COPYRIGHT © 2019, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Wednesday, September 4, 2019 who serve our country that President Trump is FEATURED Q&A / Continued from page 1 willing to cannibalize already allocated military funding to boost his own ego and for a wall he negotiation—a clear and more open dialogue Andrew Nickson, honorary promised Mexico would pay to build,” Senate with political sectors and citizens—will reader in public management Minority Leader Chuck Schumer (D-N.Y.) wrote be the only way to find a balance between and Latin American studies at in a statement.
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