The Americas Blog

El Blog de las Americas

The Americas Blog seeks to present a more accurate perspective on economic and political developments in the Western Hemisphere than is often presented in the United States. It will provide information that is often ignored, buried, and sometimes misreported in the major U.S. media.

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A new investigative feature by award-winning Associated Press correspondent Alberto Arce probes deeper into recurring police death squad activity in Honduras. Following up on his reports in March, Arce details the cases of several gang suspects who have disappeared after being taken into police custody, as well as what witnesses have described as the gunning-down, in cold blood, of suspects in the streets. The article reveals that: At least five times in the last few months, members of a Honduras street gang were killed or went missing just after run-ins with the U.S.-supported national police, The Associated Press has determined, feeding accusations that they were victims of federal death squads. … In March, two mothers discovered the bodies of their sons after the men had called in a panic to say they were surrounded by armed, masked police. The young men, both members of the 18th Street gang, had been shot in the head, their hands bound so tightly the cords cut to the bone. That was shortly after three members of 18th Street were detained by armed, masked men and taken to a police station. Two men with no criminal history were released, but their friend disappeared without any record of his detention. A month after the AP reported that an 18th Street gang leader and his girlfriend vanished from police custody, they are still missing. As we have previously examined, Arce has noted that U.S. support for the Honduran National Police while some officers engage in death squad activity would seem to violate the Leahy Law. Rather than proceed with greater caution or reexamine ongoing policy, the U.S. State Department has responded defensively. Arce quotes Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs William Brownfield as saying “The option is that if we don’t work with the police, we have to work with the armed forces, which almost everyone accepts to be worse than the police in terms of the mission of policing, or communities take matters in their own hands. In other words, the law of the jungle, in which there are no police and where every citizen is armed and ready to mete out justice,” U.S. Assistant Secretary of State William Brownfield said in Spanish during a March 28 video chat.*
A new investigative feature by award-winning Associated Press correspondent Alberto Arce probes deeper into recurring police death squad activity in Honduras. Following up on his reports in March, Arce details the cases of several gang suspects who have disappeared after being taken into police custody, as well as what witnesses have described as the gunning-down, in cold blood, of suspects in the streets. The article reveals that: At least five times in the last few months, members of a Honduras street gang were killed or went missing just after run-ins with the U.S.-supported national police, The Associated Press has determined, feeding accusations that they were victims of federal death squads. … In March, two mothers discovered the bodies of their sons after the men had called in a panic to say they were surrounded by armed, masked police. The young men, both members of the 18th Street gang, had been shot in the head, their hands bound so tightly the cords cut to the bone. That was shortly after three members of 18th Street were detained by armed, masked men and taken to a police station. Two men with no criminal history were released, but their friend disappeared without any record of his detention. A month after the AP reported that an 18th Street gang leader and his girlfriend vanished from police custody, they are still missing. As we have previously examined, Arce has noted that U.S. support for the Honduran National Police while some officers engage in death squad activity would seem to violate the Leahy Law. Rather than proceed with greater caution or reexamine ongoing policy, the U.S. State Department has responded defensively. Arce quotes Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs William Brownfield as saying “The option is that if we don’t work with the police, we have to work with the armed forces, which almost everyone accepts to be worse than the police in terms of the mission of policing, or communities take matters in their own hands. In other words, the law of the jungle, in which there are no police and where every citizen is armed and ready to mete out justice,” U.S. Assistant Secretary of State William Brownfield said in Spanish during a March 28 video chat.*
Bloomberg’s Nathan Gill wrote a particularly one-sided article on Thursday, in which he states that “Ecuador’s bid to reduce poverty by taxing its banks is threatening to deepen the nation’s economic slump.” “Slump” seems somewhat dire to describe the state of the Ecuadorian economy. In 2012 the economy grew by 5 percent, and it is projected to grow by 4.45 percent for 2013. The report also offers no convincing evidence that Ecuador’s taxation of its banks is hurting the economy.  The article specifically focuses on a set of reforms that took effect on January 1, including the elimination of banks’ tax deductions for reinvested profits and a 0.35 percent tax on assets held abroad. The reporter argues that a sharp drop in bank profits in the first quarter of this year was a result of the taxation. He then argues that an increase in the banks’ interest rates must also be due to the reforms: Non-government banks, including Citigroup Inc (C).’s local unit, raised rates on corporate loans by an average 0.21 percentage point in the first quarter to 8.88 percent, the highest since November 2010, according to central bank data. That compares with a decline of 0.72 percentage point to 8.81 percent in Colombia and an increase of 0.01 percentage point to 5.79 percent for similar loans in Peru. However, this causality is not at all clear.  It is more likely that this modest increase in interest rates is attributable to a recent uptick in inflation. Consumer prices increased at an annualized rate of 4.6 percent in the first quarter of this year, as compared to a rate of 0.2 percent in the last quarter of last year.
Bloomberg’s Nathan Gill wrote a particularly one-sided article on Thursday, in which he states that “Ecuador’s bid to reduce poverty by taxing its banks is threatening to deepen the nation’s economic slump.” “Slump” seems somewhat dire to describe the state of the Ecuadorian economy. In 2012 the economy grew by 5 percent, and it is projected to grow by 4.45 percent for 2013. The report also offers no convincing evidence that Ecuador’s taxation of its banks is hurting the economy.  The article specifically focuses on a set of reforms that took effect on January 1, including the elimination of banks’ tax deductions for reinvested profits and a 0.35 percent tax on assets held abroad. The reporter argues that a sharp drop in bank profits in the first quarter of this year was a result of the taxation. He then argues that an increase in the banks’ interest rates must also be due to the reforms: Non-government banks, including Citigroup Inc (C).’s local unit, raised rates on corporate loans by an average 0.21 percentage point in the first quarter to 8.88 percent, the highest since November 2010, according to central bank data. That compares with a decline of 0.72 percentage point to 8.81 percent in Colombia and an increase of 0.01 percentage point to 5.79 percent for similar loans in Peru. However, this causality is not at all clear.  It is more likely that this modest increase in interest rates is attributable to a recent uptick in inflation. Consumer prices increased at an annualized rate of 4.6 percent in the first quarter of this year, as compared to a rate of 0.2 percent in the last quarter of last year.
During his trip last week to Mexico and Costa Rica, President Obama sought to down play the U.S.’s security agenda in the region, emphasizing trade relations, energy cooperation and other more benign themes.  In a May 3rd joint press conference with his C
During his trip last week to Mexico and Costa Rica, President Obama sought to down play the U.S.’s security agenda in the region, emphasizing trade relations, energy cooperation and other more benign themes.  In a May 3rd joint press conference with his C
In an article this week in the Malaysian Star, South Centre Director Martin Khor describes a move by Latin American and Caribbean countries – most of which belong to the Bolivarian Alliance for the Americas group, or ALBA –  to form an alternative to the World Bank’s International Center for Settlement of Investment Disputes (ICSID) to settle investor-state disputes, noting the predilection of ICSID to rule in favor of corporations: LEADERS of several Latin American countries have set up a new coalition to coordinate actions to face the growing number of international legal suits being taken against governments by transnational companies. A ministerial meeting of 12 countries held in Guayaquil, Ecuador, decided on several joint actions to counter the threat posed by these lawsuits, which have claimed millions or even billions of dollars from governments. … Seven of the countries, mostly represented by their ministers of foreign affairs, trade or finance, adopted a declaration with an agreement to form a conference of states affected by transnational interests. They are Ecuador, Bolivia, Cuba, Nicaragua, Dominican Republic, St Vincent and the Grenadines as well as Venezuela. But while these are all ALBA members (except the Dominican Republic), Khor notes that several other countries were also present at the meeting are not: “Representatives of another five countries (Argentina, Guatemala, El Salvador, Honduras and Mexico) also attended the meeting and will convey the results to their respective governments.”
In an article this week in the Malaysian Star, South Centre Director Martin Khor describes a move by Latin American and Caribbean countries – most of which belong to the Bolivarian Alliance for the Americas group, or ALBA –  to form an alternative to the World Bank’s International Center for Settlement of Investment Disputes (ICSID) to settle investor-state disputes, noting the predilection of ICSID to rule in favor of corporations: LEADERS of several Latin American countries have set up a new coalition to coordinate actions to face the growing number of international legal suits being taken against governments by transnational companies. A ministerial meeting of 12 countries held in Guayaquil, Ecuador, decided on several joint actions to counter the threat posed by these lawsuits, which have claimed millions or even billions of dollars from governments. … Seven of the countries, mostly represented by their ministers of foreign affairs, trade or finance, adopted a declaration with an agreement to form a conference of states affected by transnational interests. They are Ecuador, Bolivia, Cuba, Nicaragua, Dominican Republic, St Vincent and the Grenadines as well as Venezuela. But while these are all ALBA members (except the Dominican Republic), Khor notes that several other countries were also present at the meeting are not: “Representatives of another five countries (Argentina, Guatemala, El Salvador, Honduras and Mexico) also attended the meeting and will convey the results to their respective governments.”
On March 19, 2013 Guatemala became the first nation to try a former head of state, Efraín Ríos Montt, for genocide and crimes against humanity in its own courts, an extraordinary achievement that led award-winning investigative journalist Allan Nairn to state that, “Guatemala has reached a higher level of civilization than the United States,” where such a trial would be unthinkable.   Ríos Montt’s took power in a March 1982 coup and his brutal military campaign that human rights defenders have characterized as genocidal received support from President Ronald Regan, though his administration denied it at the time. Nairn had flown to Guatemala City as a proposed witness but once in Guatemala, he was asked not to testify after another witness, a former soldier, unexpectedly named current President Otto Pérez Molina as responsible for crimes against humanity.  In September 1982, Nairn had interviewed then Major Pérez Molina, a commander in the area where the crimes Ríos Montt is being tried for had occurred.  It appears that his testimony would have implicated the current president in crimes, and the victims’ lawyers were afraid that pushing the political establishment any further would endanger the case. On April 18, the case was unexpectedly annulled by a judge not overseeing the trial, pre-trial judge Carol Patricia Flores.  She made the illegal ruling two days after former Guatemalan Vice President Eduardo Stein signed a communique published in Guatemalan newspapers, along with 11 other former members of the administration of Álvaro Arzú, calling the charges of genocide against Ríos Montt a “threat to the nation” and suggesting that if a sentence for genocide were handed down it could mean a return to political violence.
On March 19, 2013 Guatemala became the first nation to try a former head of state, Efraín Ríos Montt, for genocide and crimes against humanity in its own courts, an extraordinary achievement that led award-winning investigative journalist Allan Nairn to state that, “Guatemala has reached a higher level of civilization than the United States,” where such a trial would be unthinkable.   Ríos Montt’s took power in a March 1982 coup and his brutal military campaign that human rights defenders have characterized as genocidal received support from President Ronald Regan, though his administration denied it at the time. Nairn had flown to Guatemala City as a proposed witness but once in Guatemala, he was asked not to testify after another witness, a former soldier, unexpectedly named current President Otto Pérez Molina as responsible for crimes against humanity.  In September 1982, Nairn had interviewed then Major Pérez Molina, a commander in the area where the crimes Ríos Montt is being tried for had occurred.  It appears that his testimony would have implicated the current president in crimes, and the victims’ lawyers were afraid that pushing the political establishment any further would endanger the case. On April 18, the case was unexpectedly annulled by a judge not overseeing the trial, pre-trial judge Carol Patricia Flores.  She made the illegal ruling two days after former Guatemalan Vice President Eduardo Stein signed a communique published in Guatemalan newspapers, along with 11 other former members of the administration of Álvaro Arzú, calling the charges of genocide against Ríos Montt a “threat to the nation” and suggesting that if a sentence for genocide were handed down it could mean a return to political violence.
Senate Foreign Relations Committee Chairman Robert Menendez (D-NJ) met with Honduran president Porfirio “Pepe” Lobo on Wednesday as part of a tour through Central America. According to press reports, Menendez characterized the trip, during which the Senator also visited El Salvador and Guatemala, as an opportunity to evaluate regional counter-narcotics and security initiatives that the U.S. is funding at increasing levels through the Central American Regional Security Initiative (CARSI). A Spanish-language press report on the trip quotes Menendez as having said that he intends to “explore the specific points of this funding proposal,” and that he wants to “see what works and what does not.” The State Department’s 2014 budget proposal, submitted on April 10, requests $161.5 million in funding for CARSI, a $26 million increase from the previous year. The proposal requests $4.5 million in foreign military financing specifically for Honduras, an increase of 450% over the FY2012 total. And Just the Facts, a joint project of nonpartisan groups focused on U.S.-Latin American relations, notes that current budget proposals have total U.S. military and police funding for Honduras in FY2014 at $8.7 million, a 63% increase over 2013 projections. Furthermore, according to a Congressional Research Service report, as of last July the State Department and USAID had planned to allocate a combined $72 million to Honduras in FY2012. These rising levels of funding for the police and military run counter to the concerns of many lawmakers in Washington around the lack of accountability for U.S. involvement in Honduran security and anti-narcotics operations. It also highlights the seriousness of recent reports that the State Department has been supporting units under the command of National Police Chief Juan Carlos “El Tigre” Bonilla, who allegedly ran death-squads a decade ago, and, more broadly, that the police have been accused of continuing to commit death-squad murders today. In December the National Autonomous University, citing the police’s own reports, announced that police had killed 149 civilians in the previous two years.
Senate Foreign Relations Committee Chairman Robert Menendez (D-NJ) met with Honduran president Porfirio “Pepe” Lobo on Wednesday as part of a tour through Central America. According to press reports, Menendez characterized the trip, during which the Senator also visited El Salvador and Guatemala, as an opportunity to evaluate regional counter-narcotics and security initiatives that the U.S. is funding at increasing levels through the Central American Regional Security Initiative (CARSI). A Spanish-language press report on the trip quotes Menendez as having said that he intends to “explore the specific points of this funding proposal,” and that he wants to “see what works and what does not.” The State Department’s 2014 budget proposal, submitted on April 10, requests $161.5 million in funding for CARSI, a $26 million increase from the previous year. The proposal requests $4.5 million in foreign military financing specifically for Honduras, an increase of 450% over the FY2012 total. And Just the Facts, a joint project of nonpartisan groups focused on U.S.-Latin American relations, notes that current budget proposals have total U.S. military and police funding for Honduras in FY2014 at $8.7 million, a 63% increase over 2013 projections. Furthermore, according to a Congressional Research Service report, as of last July the State Department and USAID had planned to allocate a combined $72 million to Honduras in FY2012. These rising levels of funding for the police and military run counter to the concerns of many lawmakers in Washington around the lack of accountability for U.S. involvement in Honduran security and anti-narcotics operations. It also highlights the seriousness of recent reports that the State Department has been supporting units under the command of National Police Chief Juan Carlos “El Tigre” Bonilla, who allegedly ran death-squads a decade ago, and, more broadly, that the police have been accused of continuing to commit death-squad murders today. In December the National Autonomous University, citing the police’s own reports, announced that police had killed 149 civilians in the previous two years.
At a speech celebrating May Day in Bolivia today, President Evo Morales announced the expulsion of the United States Agency for International Development (USAID) from the country. According to the AP, Morales stated: "The United States does not lack institutions that continue to conspire, and that's why I am using this gathering to announce that we have decided to expel USAID from Bolivia.” The role of USAID in Bolivia has been a primary point of contention between the U.S. and Bolivia dating back to at least 2006. State Department spokesperson Patrick Ventrell characterized Morales’ statement as “baseless allegations.” While State Department spokespeople and many commentators will characterize USAID's work with oppositional groups as appropriate, a look at the agency's work over the past decade paints a very different picture. Documents obtained by investigative journalist Jeremy Bigwood show that as early as 2002, USAID funded a “Political Party Reform Project,” which sought to “serve as a counterweight to the radical MAS [Morales’ political party] or its successors.” Later USAID began a program “to provide support to fledgling regional governments,” some of which were pushing for regional autonomy and were involved in the September 2008 destabilization campaign that left some 20 indigenous Bolivians dead. Meanwhile, the U.S. has continually refused to disclose the recipients of aid funds. As a recent CEPR report on USAID activities in Haiti concluded, U.S. aid often goes into a “black box” where it becomes impossible to determine who the ultimate recipients actually are.
At a speech celebrating May Day in Bolivia today, President Evo Morales announced the expulsion of the United States Agency for International Development (USAID) from the country. According to the AP, Morales stated: "The United States does not lack institutions that continue to conspire, and that's why I am using this gathering to announce that we have decided to expel USAID from Bolivia.” The role of USAID in Bolivia has been a primary point of contention between the U.S. and Bolivia dating back to at least 2006. State Department spokesperson Patrick Ventrell characterized Morales’ statement as “baseless allegations.” While State Department spokespeople and many commentators will characterize USAID's work with oppositional groups as appropriate, a look at the agency's work over the past decade paints a very different picture. Documents obtained by investigative journalist Jeremy Bigwood show that as early as 2002, USAID funded a “Political Party Reform Project,” which sought to “serve as a counterweight to the radical MAS [Morales’ political party] or its successors.” Later USAID began a program “to provide support to fledgling regional governments,” some of which were pushing for regional autonomy and were involved in the September 2008 destabilization campaign that left some 20 indigenous Bolivians dead. Meanwhile, the U.S. has continually refused to disclose the recipients of aid funds. As a recent CEPR report on USAID activities in Haiti concluded, U.S. aid often goes into a “black box” where it becomes impossible to determine who the ultimate recipients actually are.
“Venezuela to audit votes without opposition conditions” reads the headline of a BBC article published over the weekend.  According to the piece, Venezuela’s electoral authority “will not carry out the full recount demanded by opposition candidate Henriqu
“Venezuela to audit votes without opposition conditions” reads the headline of a BBC article published over the weekend.  According to the piece, Venezuela’s electoral authority “will not carry out the full recount demanded by opposition candidate Henriqu
Reuters reported Sunday that the president of Venezuela’s National Electoral Council (CNE) Tibisay Lucena has criticized opposition candidate Henrique Capriles for not presenting proof to back up his claims of fraud (also the focus of our post earlier today): "We have always insisted that Capriles had the right to challenge the process," Tibisay Lucena, president of the electoral council, said in a televised national broadcast. "But it is also his obligation to present proof." She dismissed various opposition submissions alleging voting irregularities as lacking key details, and said Capriles had subsequently tried to present the audit in very different terms than the electoral council had agreed to. "It has been manipulated to generate false expectations about the process, including making it look like the consequence of the wider audit could affect the election results," she said. Lucena's statements that the election audit of the remaining voting machines, as initially called for by Capriles, will not change the results are correct, although perhaps not for the reasons she meant. As noted on Friday, we did a statistical analysis of the probability of the results of the audit of the first 53 percent of voting machines finding the results it did if the remaining 46 percent of voting machines in Venezuela had enough discrepancies to change the results of the election. The probability, according to our calculations, is less than 1 in 25,000 trillion. The math is pretty straightforward. Considering how many votes by which Nicolás Maduro was declared the winner, and that the initial audit of 54 percent of machines didn't find anything, and considering how many votes there are per machine, it is almost impossible for the remaining 46 percent of machines to have enough discrepancies to change the election results.
Reuters reported Sunday that the president of Venezuela’s National Electoral Council (CNE) Tibisay Lucena has criticized opposition candidate Henrique Capriles for not presenting proof to back up his claims of fraud (also the focus of our post earlier today): "We have always insisted that Capriles had the right to challenge the process," Tibisay Lucena, president of the electoral council, said in a televised national broadcast. "But it is also his obligation to present proof." She dismissed various opposition submissions alleging voting irregularities as lacking key details, and said Capriles had subsequently tried to present the audit in very different terms than the electoral council had agreed to. "It has been manipulated to generate false expectations about the process, including making it look like the consequence of the wider audit could affect the election results," she said. Lucena's statements that the election audit of the remaining voting machines, as initially called for by Capriles, will not change the results are correct, although perhaps not for the reasons she meant. As noted on Friday, we did a statistical analysis of the probability of the results of the audit of the first 53 percent of voting machines finding the results it did if the remaining 46 percent of voting machines in Venezuela had enough discrepancies to change the results of the election. The probability, according to our calculations, is less than 1 in 25,000 trillion. The math is pretty straightforward. Considering how many votes by which Nicolás Maduro was declared the winner, and that the initial audit of 54 percent of machines didn't find anything, and considering how many votes there are per machine, it is almost impossible for the remaining 46 percent of machines to have enough discrepancies to change the election results.
Taking to the Huffington Post this week, former Assistant Attorney General Robert Raben attacks Argentina’s position regarding the ongoing litigation with vulture funds, a case readers of this space are familiar with. Raben states that, “The Argentine government's behavior toward U.S. courts and U.S. judges has gone beyond contempt, and its ongoing defiance of our legal system must come to an end.” Anticipating the possibility of the case going to the Supreme Court, Raben saves some criticism for the United States, which has sided with Argentina in the court case: the U.S. executive branch made the disappointing and unfortunate decision to support Argentina at the lower-court level, on the unsubstantiated grounds that holding Argentina accountable would somehow undermine the vague U.S. foreign-policy goal of promoting the orderly restructuring of defaulted sovereign debt. Raben concludes that, “It would be downright dangerous for the Department of Justice to maintain its support for Argentina after its disgraceful displays of disrespect for the U.S. judicial system.”Raben would have you believe that his conclusion and expertise in the matter is simply based on his previous experience: As a former assistant attorney general, I am familiar with the struggles and the balancing involved in weighing various legal and policy questions and deciding whether to ask the Supreme Court to review a case. But readers of the Huffington Post might be interested in something else not mentioned in Raben’s article: that his lobbying firm, The Raben Group, has been paid over $2.1 million by a group representing the same vulture funds that are suing Argentina, according to lobbying disclosure documents. In fact, the American Task Force Argentina (ATFA), of which Raben is the Executive Director, has spent nearly $4 million lobbying the White House, Treasury Department and U.S. Congress. Nowhere in the article does Raben disclose this relationship. His 382 word Huffington Post bio notes his past working for Barney Frank, his time as Assistant Attorney General and his current position “on the boards of the American Constitution Society and Alliance for Justice,” yet never mentions his management position at ATFA or even the existence of his lobbying firm.
Taking to the Huffington Post this week, former Assistant Attorney General Robert Raben attacks Argentina’s position regarding the ongoing litigation with vulture funds, a case readers of this space are familiar with. Raben states that, “The Argentine government's behavior toward U.S. courts and U.S. judges has gone beyond contempt, and its ongoing defiance of our legal system must come to an end.” Anticipating the possibility of the case going to the Supreme Court, Raben saves some criticism for the United States, which has sided with Argentina in the court case: the U.S. executive branch made the disappointing and unfortunate decision to support Argentina at the lower-court level, on the unsubstantiated grounds that holding Argentina accountable would somehow undermine the vague U.S. foreign-policy goal of promoting the orderly restructuring of defaulted sovereign debt. Raben concludes that, “It would be downright dangerous for the Department of Justice to maintain its support for Argentina after its disgraceful displays of disrespect for the U.S. judicial system.”Raben would have you believe that his conclusion and expertise in the matter is simply based on his previous experience: As a former assistant attorney general, I am familiar with the struggles and the balancing involved in weighing various legal and policy questions and deciding whether to ask the Supreme Court to review a case. But readers of the Huffington Post might be interested in something else not mentioned in Raben’s article: that his lobbying firm, The Raben Group, has been paid over $2.1 million by a group representing the same vulture funds that are suing Argentina, according to lobbying disclosure documents. In fact, the American Task Force Argentina (ATFA), of which Raben is the Executive Director, has spent nearly $4 million lobbying the White House, Treasury Department and U.S. Congress. Nowhere in the article does Raben disclose this relationship. His 382 word Huffington Post bio notes his past working for Barney Frank, his time as Assistant Attorney General and his current position “on the boards of the American Constitution Society and Alliance for Justice,” yet never mentions his management position at ATFA or even the existence of his lobbying firm.

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