Daily Headlines: January 18, 2016

* Guatemala: Political newcomer turned president Jimmy Morales repeated his campaign pledge to combat Guatemala’s deeply-rooted corruption during his inauguration address last Thursday.

* Latin America: Brazilian scientists will receive public funds to develop a vaccine for the Zika virus though one researcher claimed that it could take from three to five years.

* Bolivia: Gonzalo Sanchez de Lozada of Bolivia, currently living in the U.S. on asylum, could become the next former Latin American president to go on trial.

* Mexico: “Emerging markets need to be ready for a potentially severe shock,” warned Mexican central bank Agustín Carstens amid investor worry over the weakening Chinese economy.

YouTube Source – efeinternational

Online Sources – Bloomberg, CNBC, Christian Science Monitor, teleSUR English

Daily Headlines: October 15, 2013

* Cuba: Ladies in White leader Berta Soler claimed that a “mob paid by the (Cuban) government” disrupted a commemoration of the death of the group’s founder while three dissident journalists were arrested within a 24-hour span in Havana last week.

* Honduras: A new militarized police force that is expected to reach as many as 5000 officers started their first patrols on Monday.

* Mexico: Agustin Carstens, Mexico’s central bank governor, claimed that his country is “prepared to confront” a possible U.S. debt default but observed that the “problem is so serious because the obstacle is political in nature, not financial nor economic.”

* Venezuela: The Venezuelan military released a “U.S.-chartered oil exploration ship” and its 36-member crew five days after it was seized in disputed waters claimed by both Venezuela and Guyana.

Video Source – YouTube via egberto angel escobedomorales (Members of Cuban dissident group the Ladies in White on Sunday commemorated the death of their founder, Laura Pollan).

Online Sources- Miami Herald; Reuters; Al Jazeera English; GlobalPost

Mexico’s Carstens loses chance to head IMF

Mexican central bank chief Agustin Carstens lost his bid to become the next managing director of the International Monetary Fund (IMF).

French Finance Minister Christine Lagarde will continue the tradition of a European heading the important global body after winning today’s election. An IMF statement praised Carstens and Lagarde as "well-qualified candidates" but ultimately Lagarde will become the first female to head the organization.

Her campaign was all but assured over the past 24 hours when she received support of several key countries including China, a rapidly emerging nation and the U.S., which holds a de facto veto by controlling 17% of the votes. (Candidates must receive at least 85% of voes in order to win). She also received backing from Russia, most of the E.U. states, and several African countries.

Carstens received 12% of the votes from countries like Canada and Australia. Despite getting support from most of the Latin American bloc two of the region’s heavyweights- Argentina and Brazil- instead opted for Lagarde.

According to The Telegraph’s website Brazilian Finance Minister Guido Mantega said that he was “glad more than one candidate had been launched.” Nevertheless, Mantega admitted hours before the vote that Lagarde was his country’s preferred choice:

Brazil chose Lagarde not only for her experience, background and knowledge, but also for her commitment to continuing IMF reforms, "which implies increasing representation among emerging economies," Finance Minister Guido Mantega said…

In Latin America, Peru, Colombia and Chile have backed Carstens. Yet Carstens was seen by some Brazilian officials as too conservative an economist, and Brazil's emerging rivalry with Mexico as a major power in Latin America also may have been a deciding factor.

Image- Ueslei Marcelino via The Guardian (“Mexico's central bank governor – and (former) candidate for the IMF's managing director – Agustín Carstens, at a news conference in Brasilia, 1 June 2011.”)
Online Sources- The Guardian, BBC News, The Telegraph, Reuters, The Latin Americanist

Daily Headlines: June 15, 2011

* Chile: The strong eruptions from the Puyehue volcano has not only forced the cancellation of hundreds of flights in the Southern Cone countries but it could delay the start of the Copa America soccer tournament.

* Argentina: President Cristina Fernández de Kirchner sought more support from U.N. Secretary General Ban Ki-Moon for Argentina’s push for talks with Britain over the Falklands.

* Venezuela: The government implemented five energy saving measures including rationing electronic billboard usage and rewards for households that significantly reduce their power usage.

* Mexico: Mexican central bank chief Augustin Carstens and French Finance Minister Christine Lagarde are on the official shortlist for the next International Monetary Fund chief.

Image – AP via CBC News (“Lightning strikes over the Puyehue-Cordon Caulle volcano in Chile, seen from the international cross border way Cardenal Samore, in southern Chile on Sunday June 12. The volcano erupted June 4 after remaining dormant for decades.”)
Online Sources- Forbes.com, Mercopress, El Universal, BBC News

LatAm bloc backs Carstens IMF bid but will it help him win?

Mexico central bank Governor Agustin Carstens’ bid for the International Monetary Fund (IMF) residency received a necessary and expected boost this week.

One dozen Latin American and Caribbean countries gave their backing to Carstens yesterday during the Organization of American States conference in El Salvador. Venezuela, the Dominican Republic and Uruguay were among those who “expressed their support to (Carstens)… and urge other government in the region to follow suit” according to a letter read by Colombian foreign minister María Angela Holguín. She he added that the successor to disgraced ex-IMF president Dominique Strauss-Kahn needs to “promote a greater participation of emerging countries in the selection process.”

The former IMF Deputy Managing Director received an endorsement by the Colombian government yesterday while Inter-American Development Bank president Luis Moreno said last week that “Carstens meets all the credentials” to be IMF chief.

Latin America’s backing of Carstens could to serve as a counterweight to European support of French Finance Minister Christine Lagarde for the IMF’s top office. Last week Carstens criticized the European backing of Lagarde as having “made up their minds before the candidates are on the table.” He has also critiqued the tradition of naming the IMF head from a European country and has tried to advocate a merit-base nominating system that would favor him.

Carstens is the underdog to replace Strauss-Kahn but that hasn’t stopped him from travelling to several nations as part of his campaign. He has already visited Germany and he’s expected to travel to Washington next week.

The Latin America endorsement could help Carstens gain support among emerging nations that have thus far been reluctant to back him. One of those countries is Latin American heavyweight Brazil who along with the other countries of the BRIC alliance (Brazil, Russia, India, China) still hasn’t given any endorsement. These four countries, which reportedly hold 12% of the votes in the IMF, could help swing the June 30th election in favor of Carstens.

Carstens recently visited Brazil and Mexican president tried to convince his Brazilian counterpart, Dilma Rousseff, to support Carstens' candidacy. Yet regional politics may get in the way of that according to Reuters:

Although Brazil has been a strong proponent of a greater say for emerging economies in IMF decision-making, Carstens faces a difficult task winning its support. Brazil rivals Mexico for leadership in Latin America and sees Lagarde as having more clout to push for IMF reforms.

Brazil has not officially sided with either candidate but government officials say in private that the Rousseff administration is inclined to back Lagarde.

Image- AP/ Ueslei Marcelino via The Guardian
Online Sources- ABC Color, El Tiempo, Bloomberg, Reuters, Montreal Gazette, Reuters, Voice of America