Showing posts with label Vulture Funds. Show all posts
Showing posts with label Vulture Funds. Show all posts

Friday, October 3, 2014

Blue Helmets on Mexican Soldiers

Daniel Košinár  (Wikimedia Commons)
If you examine the composition of UN Peacekeeping forces, you would be hard-pressed to find any Mexican soldiers.  That is about to change with President  Enrique Peña Nieto's recent commitment to provide military and civilian personnel to UN missions.
The Mexican president made that pledge during an address to the UN General Assembly during the last week of September.

Peña Nieto, of course, would still have to comply with the Mexican Constitution, which prohibits any chief executive from unilaterally offering Mexican troops for peacekeeping forces. The president would require the consent of the Senate. Convesrsely, Peña Nieto and other future president are allowed to provide military and civilian personnel for UN humanitiarian missions without a vote from the Senate. How was Peña Nieto's decision received in Mexico?  There were many supporters and some detractors.  Read more in this week's issue of SourceMex.

Marie Lan-Nguyen (Wikimedia Commons)
Let's say hypothetically that Mexico had committed troops to UN peacekeeping operations a while back. Where would these Mexican soldiers be located? Currently, there are 16 ongoing UN Peacekeeping Operations, including Haiti, Kosovo, Afghanistan, Pakistan, India, several Middle Eastern nations, as well as nine countries in Africa, from the Western Sahara to Democratic Republic of the Congo.

There are currently over 116,000 military and police personnel working under UN’s Department of Peacekeeping Operations (DPKO), and although many personnel are armed and trained in military operations, the DPKO’s main purpose and protocol does not normally involve active combat, but rather helping local security forces to establish the proper conditions for end of conflict and lasting peace. The UN does not have its own military force, and relies completely on contributions from member states.

There is some risk in committing military personnel to an area of conflict. In its 66-year history, the DPKO has suffered 3,177 fatalities, with more than two-thirds occurring since 1993. Uruguay, Haiti, Argentina, Guatemala and Spain have lost dozens of troops, although the majority of the casualties have come from Sub-Saharan African and Northern European nations.  While armed conflict has been the major reason for the loss of lives, more than 1,000 deaths  have occurred because of illness. The two places with the highest incident of fatalities have been Lebanon and the Congo.
-Jake Sandler

Also in LADB This Week...
Transforming the Sales Tax into a Value-Added Tax in Costa Rica: President Luis Guillermo Solís has a plan to boost government revenues: transform the current sales tax into a a value-added tax (Read more from George Rodríguez in this week's issue of NotiCen). So what's the difference?  Diane Yetter explains in the Tax & Accounting blog  "Sales tax is collected on retail sales at the time of the sale to the final consumer, and only the final sale in the supply chain is subject to tax. Sales tax is generally imposed on sales of tangible personal property and selected services. Value Added Tax, on the other hand, is imposed on each stage of the supply chain and ultimately charged in full to the final purchaser."

Investment in the Dominican Republic. Officials in the Dominican Republic are pleased about a recent increase in investment, but critics worry that the trend comes at the expense of human rights and the environment.  Read more from  Crosby Girón in NotiCen.

Argentina and U.S. Lock Horns amid ‘Default’ Fallout: Argentina’s current "default" crisis, which began three months ago when a judge in New York ruled in favor of a group of "vulture funds"—lenders that in 2005 refused to participate in a restructuring of the South American nation’s foreign debt—has gone from being a dispute between a sovereign state and private interests to a full-fledged face-off between the Argentine and US governments. Read more from Andrés Gaudín in NotiSur.

Center-Left Coalition Expected to Remain in Power in Uruguay: Uruguayan voters will head to the polls Oct. 26 for the last in a series of South American elections that also includes contests in Brazil, to be held Oct. 5, and Bolivia, on Oct. 12. The Frente Amplio (FA), in power since 2005, is hoping its progressive model—introduced by former President Tabaré Vázquez (2005-2010) and continued by the country’s current leader, President José Mujica—will earn the party a third-consecutive term. The FA’s conservative rivals, the Partido Nacional (PN or Blanco) and Partido Colorado (PC), are hoping to re-establish the political hegemony that kept them in power throughout most of Uruguay’s post-independence history (from 1830 to 2005). Read More from Andrés Gaudín in NotiSur.

Another term for Mexican Human Rights Ombud? Raúl Plascencia Villanueva, president of the semi-independent human rights commission (Comisión Nacional de los Derechos Humanos, CNDH), is facing severe criticism from what academics and opposition legislators see as the commission’s deficient and inadequate job of defending human rights in Mexico. Will the Senate reappoint him for another five years or will human-rights advocates succeed in pushing through a change?  Read more from Carlos Navarro in SourceMex.

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Friday, August 29, 2014

Argentina Pushes Back

As Argentina’s President Cristina Fernández de Kirchner battles against a recent court decision in New York that ruled in favor of Argentine bond owners, called ‘vulture funds’, the populist South American leader is also filing suit against RR Donnelley, a printing company that recently closed up shop in Buenos Aires and laid off hundreds. The large printing company cited struggles amidst the difficult national economic situation, due in large part to Argentina’s defaulting on its debt for the second time since the new millennium. President Fernández de Kirchner is utilizing an anti-terrorism law to threaten RR Donnelley with criminal charges for attempting to further derail the national economy and incite fear in international markets.

Fernández de Kirchner’s threat against the printing company could appear as desperate, backing the position of those who favor the New York decision and view Fernández de Kirchner’s anger as nothing more than a mechanism to draw popularity by standing against the unpopular US government.

Despite favorable responses from the IMF and international media that criticized the heavy-handed New York court decision, which set Argentina’s default in motion by affirming the claims of vulture funds that held-out during a debt restructuring plan under the presidency of Nestor Kirchner (Fernández de Kirchner’s husband) almost a decade ago, the US Supreme Court upheld the New York decision, thus calling into question the economic spending policies of Kirchner’s administration. Andrés Gaudín addresses the controversy in Argentina in this week's issue of NotiSur. 

High public spending has been known to cause problems for the national economies of countries ruled by populist leaders, often more concerned with pleasing the masses and maintaining their power than financial minutia such as inflation rates. In fact, the populist president of Ecuador, Rafael Correa, has set in motion a group of laws that not only allow him to stay in power indefinitely, but also begin a move away from Ecuadoran dollarization. President Correa has framed this strategy as a way to protect the Ecuadoran people from the control of banks and bankers. Luis Ángel Saavedra discusses the Correa government's new currency policy in this week's issue of NotiSur. However, the new financial code is set up in a way that will allow Correa to more readily increase spending and ‘print’ electronic money. This would create a system of parallel currencies, similar to the convertibility plan under which Argentina has operated since its first default in 2002.

Between Kirchner and Correa, two leaders heavily influenced by South American populists during the second half of the twentieth century, there is a grand attempt evident to stand up against the US and other global powers. Whether or not these positions are motivated by populism, the ‘vulture funds’, in Argentina’s case, and the dependence on the US dollar in Ecuador’s, underline the legitimate struggle of Latin American nations (and other post-colonial, periphery economies for that matter) to overcome what economist Ellen Brown calls “colonization by bankruptcy”.

-Jake Sandler

Also in LADB this week....
Update on Unaccompanied Minors: We've written about the children from Central America from the perspective of Mexico and El Salvador.  George Rodríguez gives us a regional perspective as well as a point of view from Honduras. 

Praise for Dominican Republic's Immigration Policy: The Dominican government's decision to move toward a resolution of its immigration conflict (primarily with neighboring Haiti) has earned the praise of a couple of important international figures, Herman Van Rompuy, president of the European Council and UN Secretary-General Ban Ki-Moon,  Read more from Crosby Girón.

A New Corruption-Free Police Unit in Mexico? On Aug. 22, President Enrique Peña Nieto swore in a 5,000-member gendarmerie, an elite federal police force that the administration is touting as a "new model" of corruption-free law enforcement. The new unit, known as the Gendarmería Nacional, will function as a type of SWAT team that will be deployed to specific areas of conflict. Security analysts are skeptical that the new unit will make much of a difference. "The gendarmerie is an aspirin to fight a cancer," Ernesto López Portillo, founder of the Instituto para la Seguridad y la Democracia (Insyde). Read More from Carlos Navarro

Too Many Deputies and Senators in Mexico?  The governing Partido Revolucionario Institucional (PRI) has proposed a public referendum on a proposal to reduce the size of the Chamber of Deputies and Senate in Mexico. Supporters of this plan agree that Congress has become too big and costly to operate, so a reduction in the number of members of the Chamber of Deputies and Senate is warranted. Critics suggest, however, that the PRI’s proposal to reduce the number of at-large seats in each chamber is undemocratic because it would make it difficult for small parties to gain representation in Congress and perhaps give too much power to the party with the majority of seats.  Carlos Navarro tells us whether this initiative will prosper.

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