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Venezuela Leads Region in Poverty Reduction in 2012, ECLAC Says

By Dan Beeton and Joe Sammut | CEPR Americas Blog | December 6, 2013

The Associated Press reported yesterday that the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has highlighted a slowing of progress in poverty reduction in Latin America, citing “rising food costs and weaker economic growth” as contributing factors:

Poverty in Latin America and the Caribbean is now easing at a slower pace, the UN’s regional economic body said on Thursday, calling on governments to make policy changes that encourage growth while reducing the huge gap between the rich and poor.

UN economists based in Santiago said about 164 million people, or 28 percent of the region’s population, are still considered poor. That is nearly unchanged from last year. Out of those, 68 million of them are in extreme poverty.

But there are bright spots. ECLAC’s new “Social Panorama of Latin America” report [PDF] notes that Venezuela and Ecuador led the region in decreasing poverty in 2012:

Six of the 11 countries with information available in 2012 recorded falling poverty levels (see table 1). The largest drop was in the Bolivarian Republic of Venezuela, where poverty fell by 5.6 percentage points (from 29.5% to 23.9%) and extreme poverty by 2.0 percentage points (from 11.7% to 9.7%). In Ecuador, poverty was down by 3.1 percentage points (from 35.3% to 32.2%) and indigence by 0.9 percentage points (from 13.8% to 12.9%).

This 5.6 percentage point decrease in Venezuela translates into a 19 percent decline in poverty overall last year, which CEPR Co-Director Mark Weisbrot noted last month “is almost certainly the largest decline in poverty in the Americas for 2012, and one of the largest – if not the largest – in the world.”

This dramatic decrease in poverty is likely due to the impact of two new misiones (social programmes), the Gran Misión En Amor Mayor Venezuela and the Gran Misión Hijos de Venezuela, which were, by January 2013, benefitting more than 1,400,000 people.

Both misiones are aimed at assisting people living in extreme poverty: GM En Amor Mayor provides pensions to elderly people, and the GM Hijos de Venezuela provides cash transfers to households with children and pregnant women. The two missions are reaching a significant number of people: as of January 2013, 516,000 elderly people were receiving a monthly pension through GM Amor Mayor. Meanwhile, the program GM Hijos de Venezuela was making monthly payments to 324,000 families, which represents 794,000 individuals.

As well as simply reducing poverty, the GM Hijos de Venezuela reduces gender inequality. 98 percent of the recipients of the program were women, who are in many countries in Latin America overrepresented among the poor. It can be reasonably hypothesized that this high level of targeting is likely to increase the economic independence of women, reducing the frequent economic imperative for women to stay in disadvantageous relationships.

December 6, 2013 Posted by | Economics | , , , | Leave a comment

Ecuador: National Assembly Approves Drilling in Yasuní National Park

By Brendan O’Boyle | The Argentina Independent | October 4, 2013

The Ecuadorian National Assembly voted Thursday to permit the drilling for petroleum in two sections of the Yasuní National Park in the country’s eastern Amazon basin. The decision comes just seven weeks after President Rafael Correa announced the failure of the Yasuní-ITT initiative, a project that sought to indefinitely prohibit oil exploration in the Yasuní in exchange for international donations equal to half of the reserve’s projected income.

The approved measure, which will allow oil exploration in the park’s 31 and 49 blocks, was passed with the votes of 108 of the assembly’s 133 members. The assembly cited “national interest” as justification for its decision. Ecuador’s constitution forbids “activities for the extraction of nonrenewable natural resources” except in the case of national interest as determined by the National Assembly.

President Correa says the exploration will only affect .01% of the park. Additionally, the legislation promises the protection of indigenous communities that live in the affected areas and excludes extractive activity from the Yasuní’s “untouchable zone”, the largest section of the park, which is to be preserved in its natural state as a wildlife sanctuary. The project will be run by state-run oil company Petroamazonas.

Fifty days ago, Correa requested authorisation to begin oil exploration within the park, declared a global biosphere reserve by UNESCO in 1989. The move has intensified national debate over drilling in the Yasuní and saw the president embark on a countrywide tour to convince oppositional groups of the economic and social need to drill in the wake of the Yasuní-ITT initiative’s failure.

In support of the president’s new initiative were 30 mayors from towns in Ecuador’s Amazon basin who travelled to Quito last month to express their support for the measure. Additionally, just last Friday 180 mayors signed a statement in support of the move to drill in the Yasuní.

However, opposition from ecological and indigenous rights groups remains high. On 28th August, police were accused of firing rubber bullets against protestors who had gathered in response to Correa’s initial remarks on opening the Yasuní up to exploration.

In the past month, the opposition has called for a national referendum, a request denied by the Constitutional Court.

Humberto Cholango, head of the Confederation of Indigenous Nationalities of Ecuador, told Ecuadorian newspaper El Universo that he was confused by the court’s decision. “There was a referendum over bullfighting in 2011, so why would you not consult the people on this issue of such importance, which threatens the lives of indigenous peoples as well as the reserve’s enormous biodiversity.”

Despite the rejection, the opposition pushed until the last moments before the vote.

Three community leaders from Ecuador’s Amazon region were invited to speak before the assembly on the final day of the debate. The first two spoke in favour of the government’s proposal, citing a need for economic development and a belief that the government would do its best to protect the local environment and communities.

The third speaker, a Guaraní woman named Alicia Cawiya, steered away from her prepared speech and delivered an emotional plea in an effort to change the minds of those about to vote.

“All we want is that you respect our territory, which we have preserved and cared for,” pleaded Alicia. “Leave us to live how we want. This is our only proposal.”

October 4, 2013 Posted by | Economics, Environmentalism | , , , , | Leave a comment

South America: UNASUR To Build Fibre-Optic ‘Mega Ring’

By Chelsea Gray | The Argentina Independent | August 21, 2013

unasurThe Union of South American Nations (UNASUR) has approved plans for an optic fibre mega-ring which will break its members’ “dependence on the US, and provide a safer and cheaper means of communication.”

The fibre optic ring will become part of a ten-year plan to physically integrate all 12 UNASUR member states. The line, which will reach up to 10,000 kilometres long and will be managed by state enterprises from each country it crosses, is expected to interconnect South America through higher coverage and cheaper internet connections.

Industrial Minister of Uruguay, Roberto Kreimerman, explained that “it is about having a connection with great capacity that allows us to unite our countries together with the developed world.”

He continued to say, “We are considering that, at most, in a couple of years we will have one of these rings finalised.” He also added that ”I think the economy, security, and integration are the three important things we need in countries where Internet use is advancing exponentially.”

At the moment, up to 80% of Latin America’s communications go through the US. However, plans for an independent communication line comes shortly after the US was discovered to have been spying on Latin American data. The National Security Agency (NSA) were revealed to have been monitoring emails and intercepting telephone logs, spying on energy, military, politics, and terror activity across the continent.

UNASUR is made up of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela.

August 21, 2013 Posted by | Civil Liberties, Full Spectrum Dominance | , , , , , , , , , , , , , , , | Leave a comment

Analysis from National Endowment for Democracy Used in The Atlantic, with Significant Errors and Omissions

By Stephan Lefebvre | CEPR Americas Blog | July 30, 2013

This month, readers of The Atlantic were treated to a lengthy article documenting alarming threats to democracy in certain Latin American countries with progressive and leftist heads of government. The piece, written by Kurt Weyland and titled “Why Latin America is Becoming Less Democratic,” is riddled with significant errors and mischaracterizations. Perhaps even worse, editors at The Atlantic didn’t make clear that the article was first published in a “journal” that is funded by the U.S. government.

The original article was published in the Journal of Democracy, which has long focused on providing analysis to justify U.S. government intervention abroad. The Journal of Democracy is an official publication of the National Endowment for Democracy’s (NED) International Forum for Democratic Studies. Although nominally a “nongovernmental” organization, the NED receives most of its funding from the U.S. Congress. In 1991, Allen Weinstein, who helped found and then became the NED’s acting president, told the Washington Post, “A lot of what we do today was done covertly 25 years ago by the CIA” [1].

Some examples of the NED’s work include using U.S. government resources to fund groups and individuals involved in the short-lived 2002 coup d’état in Venezuela, and two years later funding organizers of the recall effort against then-president Hugo Chávez. One of the NED’s core grantees is the International Republican Institute, which played a major role in overthrowing the democratically-elected government of Haiti in 2004.

These are just a few examples that highlight the NED’s disreputable history in Latin America, which would take far more space than a blog post to tell.  While it clearly would have been worth noting the source of the article, the article itself is full of both factual errors and egregious mischaracterizations. To keep this post brief, I’ll only review a few of the most egregious errors here.

    1. Weyland writes: “Since the third wave reached Latin America in 1978, the region had seen only occasional threats and temporary interruptions of democracy in individual nations.”

This statement is only reasonable if one completely ignores the U.S. government’s role in the region, which constituted a threat to democracy that was neither “temporary” nor limited to “individual nations.” Throughout the 1980s, the U.S. conducted a massive and well-organized campaign, especially in Central America, using Cold War pretexts to install and support leaders who would foster favorable conditions for U.S. business interests.

In Nicaragua, the campaign involved massive illegal military aid to the contra paramilitary forces who used those weapons to kill health care workers, teachers and elected officials in their fight against the  democratically-elected Sandinista government, bringing condemnation from the World Court, as well as Amnesty International, Americas Watch and other human rights groups and international bodies.

At the same time, the U.S.-backed Guatemalan General José Efraín Ríos Montt, massacred and tortured the people of Guatemala — with U.N. estimates indicating over 200,000 were killed or disappeared in acts of genocide. The same Cold War premise of fighting “communists” was used to justify large-scale atrocities in El Salvador and Honduras. Throughout the ‘70s and ‘80s, the U.S. supported brutal dictatorships in Chile, Argentina, Haiti, Brazil, and other countries, and militarily invaded Grenada (1983) and Panama (1989). More recently, of course, the U.S. supported coups in Venezuela, Honduras and Haiti.

It could not be more clear that democracy in Latin America is threatened and actually has been compromised on many occasions by the U.S.’s foreign policy, especially in the post-1978 period that Weyland names. Rewriting history to minimize and erase these events serves the interests of the U.S. government, so it is perhaps no surprise that publications like the Journal of Democracy carry out this work diligently, but when government propaganda makes its way into independent publications like The Atlantic without comment, it is cause for alarm, especially when there are numerous factual errors.

    1. Weyland writes that “Cristina Fernández de Kirchner of Argentina (2007-), whose fervent supporters take inspiration from Chávez, is eyeing constitutional changes and renewed reelection.”

Fact check: President Cristina Fernández has not said anything to this effect.  She has  proposed constitutional amendments focused on reforms to the judiciary, and she has already addressed the Argentine congress specifically, saying that she is not planning to pursue reforms that would allow her to run for a third consecutive term. Weyland would be right in noting that some of her supporters floated the idea of a third term, but Weyland’s claim as written is simply not true.  If this seems like a minor point, consider that Honduran ex-president Manuel Zelaya’s support for a non-binding referendum on a constituent assembly was misreported in the media as a bid to extend his presidency and was used as a justification for his removal both within Honduras and internationally.  Weyland perpetuates this myth, saying that Zelaya “was stopped” before he could “boost[] the presidency’s powers and pave[] the way toward indefinite reelection to that office.”  By presenting the coup that removed Zelaya as an event that forestalled a nondemocratic turn, in particular saying nothing about events following the coup, much of Weyland’s argument supposedly in favor of democracy in Latin America is rendered moot.

    1. “That Venezuela had already fallen under nondemocratic rule was confirmed in October 2012 by Chávez’s unfair reelection, achieved with the help of intimidation tactics, tight restrictions on the opposition, and the massive misuse of the state apparatus.”

The 2012 elections in Venezuela were declared free and fair by election accompanying groups and by monitors such as the Carter Center, which noted that “the whole opposition leadership, including, most importantly, Capriles himself, unequivocally reject those claims [of election fraud favoring Chávez], stating that the results reflected the will of the electorate.”  Journalists and human rights watchers monitoring the electoral process praised the system while giving detailed reports about what they saw.

    1. “With its electoral façade and progressive rhetoric about helping the excluded, the soft authoritarianism that is taking hold in parts of Latin America has an attractive face.”

In sweeping statements such as this one, Weyland casts doubt on both the electoral victories and the policies of progressive and left governments in Latin America. He suggests that the people’s will is not represented in the official outcomes of national elections, and even if left-wing politicians seem popular that is because they trick and/or intimidate citizens and do not deliver on promises to the poor and other disenfranchised sectors of society.

Actually, these are not elections whose legitimacy is seriously questioned by any but those on the extreme right. And the implication that progressive and left governments are limiting their policies to “progressive rhetoric,” is absurd. The overall trend in the countries that have elected progressive and left leaders has been the enactment of policy alternatives to neoliberalism, and their effect has been large reductions in income inequality, a reduction in poverty, and provision of health care, education and important services to many people who previously could not access them. These policies have included reforming and regulating the financial sector in Ecuador, investing oil profits into social missions in Venezuela, and successfully managing a large financial crisis and debt default in Argentina — resulting in only one quarter of negative economic growth followed by nine years of some of the highest growth in the region.

Weyland’s reference to an “electoral façade” betrays the central goal of the NED: what sociologist William Robinson refers to as “promoting polyarchy.”  As opposed to experiments in direct democracy occurring on various levels in countries such as Venezuela and Bolivia, the NED ultimately promotes only representative forms of democracy, or polyarchy. In Robinson’s definition, this is “a system in which a small group actually rules, and mass participation in decision-making is confined to choosing leaders in elections that are carefully managed by competing elites.” In Venezuela, Chávez’s Bolivarian project did away with a polyarchic system, and across much of the continent NED-backed parties and candidates have failed in election after election. When Washington’s candidates don’t win, often the elections are depicted as illegitimate and sometimes the electoral process is attacked – as seen with the most recent Venezuelan election, or with the U.S.’ interference, via the OAS, in Haiti’s last presidential election.

    1. “As soon as [Chávez] was elected president of Venezuela, he set about revamping the country’s institutional framework. First, he called a constituent assembly.”

Weyland’s claims here come after stating that “graver and more sustained danger is coming from the leftist variant” of populism than the rightist version, but is the Venezuelan constituent assembly really evidence of anti-democratic tendencies? No again. Calling for a constituent assembly was exactly what Venezuelans elected Chávez to do. Ending the ossified political arrangement known as “Punto Fijo” – in which political parties routinely alternated in and out of power – and calling a constituent assembly were key campaign promises he made ahead of the 1998 elections. Chávez was fulfilling his campaign promises– a much more infrequent phenomenon in the U.S.

    1. “[Ecuadorean president Rafael] Correa also seized on a 2010 police rebellion—painted by him as a coup attempt—as a pretext for cracking down on independent social and political forces.”

Many observers both in and outside of Ecuador characterize the events of September 30, 2010 as an attempted coup d’état: after assaulting him with tear gas, rebelling police officers later held the president hostage in the hospital where he was being treated. The coup attempt was condemned as such by presidents and representatives of UNASUR, foreign dignitaries such as the president of Spain, and the OAS. Weyland and The Journal of Democracy may be taking the U.S. government’s line, one of the few countries that declined to recognize the events as a coup attempt, even though then-Secretary of State Clinton did issue a statement in expressing “our full support for President Rafael Correa.”

    1. “Bypassing or subjugating intermediate institutions such as firmly organized parties, the leader—often a charismatic figure—establishes face-to-face contact with large number of citizens. In earlier decades, mass rallies were crucial; now-a-days, television allows populists to reach their followers ‘in person.’ Chávez hosted a regular Sunday talk show.”

Calling for respect of “firmly organized parties” in Venezuela in the context of Chávez’s rise in politics obscures that one of the central political problems in Venezuela during the 90s was deep distrust in the main political parties and their “Punto Fijo” arrangement, which Robinson describes as a polyarchic system.

Furthermore, it is worth noting that President Obama has a weekly address on YouTube, and yet he is not derided as an illegitimate president because of his use of social media. Presidents and major politicians all over the world have Twitter and Facebook accounts that they use to communicate with constituents, and many even make appearances on talk shows. Is such “face-to-face contact” somehow nefarious?

    1. “In Bolivia, the Morales government shut the opposition out of decisive stages of the constitution drafting process.”

Weyland is again telling only half the story, which in this case is worse than none. The truth is that opposition legislators boycotted stages of the constitution drafting process because they disagreed with the direction in which things were going. Bolivia had elected its first indigenous president, with massive support from the country’s social movements, and he was facilitating a transformation of society to one in which a racial minority and tiny elite did not wield power over the majority of Bolivians. Evo Morales’s election drew comparisons to the symbolic end of apartheid in South Africa with the election of Nelson Mandela, and the new constitution was compared to the Freedom Charter.

It is not surprising that extreme elements in the opposition boycotted the process of installing a new constitution that cemented the rights of the indigenous majority, and it is misleading to describe these events as a “populist” power-grab.

This has been a brief review of some major claims that Weyland uses in arguing his point, namely that “democracy in the region is facing a sustained, coordinated authoritarian threat” from the progressive and left governments in Latin America. I have detailed not only mischaracterizations and significant omissions, but also argued for more independence in the practice of journalism. One of the responsibilities of a well-functioning press is to clearly indicate when articles are reused from sources funded mostly by the U.S. government.

[1] Ignatius, David. “Innocence Abroad: The New World of Spyless Coups.” The Washington Post. Sep 22, 1991: C1. Print.

July 30, 2013 Posted by | Deception, Economics, Mainstream Media, Warmongering | , , , , , , , , , | Leave a comment

Laughing at Snowden’s Asylum Requests

Consortium News | July 18, 2013

The mainstream U.S. news media has been chuckling over the “irony” of NSA leaker Edward Snowden asking asylum from Latin American countries purported to suppress press freedom. But the smugness misses both the complex realities abroad and the U.S. government’s own assaults on information, says a group of scholars.

An Open Letter to the Media:

The supposed “irony” of whistle-blower Edward Snowden seeking asylum in countries such as Ecuador and Venezuela has become a media meme. Numerous articles, op-eds, reports and editorials in outlets such as the New York Times, the Washington Post, the Wall Street Journal, NPR, and MSNBC have hammered on this idea since the news first broke that Snowden was seeking asylum in Ecuador.

It was a predictable retread of the same meme last year when Julian Assange took refuge in the Ecuadorian embassy in London and the Ecuadorian government deliberated his asylum request for months.

Former National Security Agency contractor Edward Snowden.

Of course, any such “ironies” would be irrelevant even if they were based on factual considerations. The media has never noted the “irony” of the many thousands of people who have taken refuge in the United States, which is currently torturing people in a secret prison at Guantanamo, and regularly kills civilians in drone strikes in Afghanistan, Pakistan, Yemen, and other countries. Nor has the press noted the “irony” of refugees who have fled here from terror that was actively funded and sponsored by the U.S. government, e.g. from Nicaragua, El Salvador, Chile, and other countries.

But in fact the “irony” that U.S. journalists mention is fantastically exaggerated. It is based on the notion that the governments of Venezuela under Chávez (and now Maduro) and Ecuador under Correa have clamped down on freedom of the press. Most consumers of the U.S. media unfortunately don’t know better, since they have not been to these countries and have not been able to see that the majority of media are overwhelmingly anti-government, and that it gets away with more than the U.S. media does here in criticizing the government.

Imagine if Rupert Murdoch controlled most U.S media outlets, rather than the minority share that his News Corp actually owns – then you’d start to have some idea what the media landscape in Ecuador, Venezuela and most of Latin America looks like.

The fact is that most media outlets in Ecuador and Venezuela are privately-owned, and oppositional in their orientation. Yes, the Venezuelan government’s communications authorities let the RCTV channel’s broadcast license expire in 2007. This was not a “shut down”; the channel was found to have violated numerous media regulations regarding explicit content and others – the same kind of regulations to which media outlets are subject in the U.S. and many other countries.

Even José Miguel Vivanco of Human Rights Watch – a fierce critic of Venezuela – has said that “lack of renewal of the contract [broadcast license], per se, is not a free speech issue.” Also rarely mentioned in U.S. reporting on the RCTV case is that the channel and its owner actively and openly supported the short-lived coup d’etat against the democratically-elected government in 2002.

A July 10th piece from the Washington Post’s editorial board – which has never hid its deep hatred of Venezuela, Ecuador and other left governments in Latin America – describes another supposed grave instance of the Venezuelan government clamping down on press freedoms. The editorial, which was given greater publicity through Boing Boing and others, describes the case of journalist Nelson Bocaranda, who is credited with breaking the news of Chávez’s cancer in June 2011. The Post champions Bocaranda as a “courage[ous]” “teller of truth” and dismisses the Venezuelan government’s “charges” against him as “patently absurd.”

In fact, Bocaranda has not been charged with anything; the Venezuelan government wants to know whether Bocaranda helped incite violence following the April 14 presidential elections, after which extreme sectors of the opposition attacked Cuban-run health clinics and homes and residences of governing party leaders, and in which some nine people were killed mostly chavistas.

The government cites a Tweet by Bocaranda in which he stated false information that ballot boxes were being hidden in a specific Cuban clinic in Gallo Verde, in Maracaibo state, and that the Cubans were refusing to let them be removed. Bocaranda later deleted the Tweet, but not before it was seen by hundreds of thousands.

So while the Post dismisses the case against Bocaranda as “absurd,” the question remains: why did Bocaranda state such specific information, if he had no evidence to support it? Indeed, any such evidence would be second hand unless Bocaranda had seen the supposed “hidden” ballot boxes and the actions by the Cubans himself.

The Venezuelan government’s summons for Bocaranda to explain himself is being characterized as a grave assault on press freedom, and perhaps it is an over-reaction – after all, many journalists report false information all the time. But wasn’t Bocaranda’s Tweet irresponsible, especially given the context of a volatile political situation?

In Ecuador, President Rafael Correa has been widely condemned in the U.S. media – in much reporting as well as commentary – for suing a prominent journalist, Emilio Palacio, for defamation. The defamatory content was, in fact, serious. It relates to a 2010 incident in which Correa was first assaulted and then later held captive by rebelling police in what many observers deemed an attempt at a coup d’etat.

Military forces ultimately rescued Correa. But in a February 2011 column referring to the episode, Palacio alleged that Correa had committed “crimes against humanity,” and that he had ordered the military forces to fire on the hospital where he was being held at the time. So Correa sued Palacio for defamation and won. What some U.S. media outlets have failed to mention is that he subsequently pardoned Palacio, and had made clear from the beginning that he would have dropped the lawsuit if Palacio ran a correction.

In other words, all that Correa did was exercise his right as a citizen under the law to sue someone who had printed an outrageous lie about him. This is a right that most elected officials have in most countries, including the United States. Former AP reporter Bart Jones has written:

“Would a network that aided and abetted a coup against the government be allowed to operate in the United States? The U.S. government probably would have shut down RCTV within five minutes after a failed coup attempt — and thrown its owners in jail. Chavez’s government allowed it to continue operating for five years, and then declined to renew its 20-year license to use the public airwaves.”

Considering the massive extent of “national security” overreach following the 9/11 attacks, it is almost incomprehensible to imagine what a U.S. administration’s reaction to a coup attempt would be, but it certainly would not be as restrained as in Ecuador or Venezuela, where a fiercely critical press not only exists, but thrives.

Many commentators have cited Reporters Without Borders [known as RSF, from its French initials] and other media watchdog groups’ criticisms of Ecuador’s proposed new “Organic Law of Communication.” In an example of true irony, such supposedly objective journalists have been more critical of Ecuador’s proposed media reforms than RSF itself has been, which noted that:

“…we think that other provisions conform to international legal standards. They include restrictions on broadcasting hours for the protection of minors, the prohibition of racist and discriminatory content and the prohibition of deliberate calls for violence. Finally, the provisions governing nationally-produced broadcasting content are broadly similar to those in force in most other countries.”

Organizations such as RSF and Freedom House are supposed to be impartial arbiters of press freedom around the world and are rarely subject to scrutiny. Yet both have taken funding from the U.S. government and/or U.S.-government supported organizations such as the National Endowment for Democracy (which was set up to conduct activities “much of [which]” the “CIA used to fund covertly,” as the Washington Post reported at the time, and which also provided funding and training to organizations involved in the afore-mentioned 2002 Venezuelan coup) and other “democracy promotion” groups.

The NED has spent millions of dollars in Venezuela and Ecuador in recent years to support groups opposed to the governments there. This conflict of interest is never noted in the press, and RSF and Freedom House, when they are cited, are invariably presented as noble defenders of press freedom, for whom ulterior motives are apparently unimaginable.

The true irony in the cases of Snowden, Assange, Manning and others is that the U.S. government, while claiming to defend freedom of the press, speech and information, has launched an assault on the media that is unprecedented in U.S. history.

The extreme lengths to which it has gone to apprehend (witness the forced downing of President Evo Morales’ plane in Austria) and punish (Bradley Manning being the most obvious example) whistle-blowers is clear. Apparently less understood by some U.S. journalists is that it is part of an assault on these very freedoms that the U.S. government pretends to uphold.

The U.S. government’s pursuit of Wikileaks – through grand jury and FBI investigations, and open condemnation of Julian Assange as a “terrorist” – is a blatant attack on the press. It seems too many journalists forget – or willingly overlook – that Wikileaks is a media organization, and that the leaks that have so infuriated the U.S. government, from the “Collateral Murder” video to “Cablegate”, Wikileaks published in partnership with major media outlets including the New York Times, The Guardian, Der Spiegel and others.

Now, as Edward Snowden’s leaks are published in The Guardian and other outlets, efforts have been launched to delegitimize journalist Glenn Greenwald, and some in the media have been all too willing to take part in attacking one of their own, simply for exposing government abuse – i.e. doing journalism.

There is a long history of partnership between traditional, corporate media outlets in the U.S. and those in Latin America. Due to a variety of reasons, including educational, class and often racial backgrounds, journalists throughout the hemisphere often tend to share certain biases. It is the journalist’s duty to be as objective as possible, however, and to let the media consumer decide where the truth lies.

Likewise, eagerly going along with double standards that reinforce paradigms of “American exceptionalism” and that overlook the U.S.’ long, checkered human rights history and minimize the importance of over a century of U.S. intervention and interference in Latin America does a great injustice to journalism and the public.

Likewise, media distortions of the state of democracy and press freedoms in countries that are routinely condemned by the U.S. government – such as Venezuela and Ecuador – contribute to a climate of demonization that enables U.S. aggression against those countries and damages relations between the people of the U.S. and our foreign neighbors.

Signed by:

Thomas Adams, Visiting Professor, Tulane University
Marc Becker, Professor, Department of History, Truman State University
Julia Buxton, Venezuela specialist
Barry Carr, Honorary Research Associate, La Trobe University, Australia
George Ciccariello-Maher, Assistant Professor, Drexel University
Aviva Chomsky, Professor of History and Coordinator of Latin American Studies, Salem State University

Luis Duno-Gottberg, Associate Professor, Caribbean and Film Studies, Rice University
Steve Ellner, Professor, Universidad de Oriente, Puerto La Cruz, Venezuela
Arturo Escobar, Professor, Department of Anthropology, University of North Carolina, Chapel Hill
Nicole Fabricant, Assistant Professor, Department of Sociology/Anthropology, Towson University
Sujatha Fernandes, Associate Professor, Department of Sociology, Queens College and the Graduate
Center, City University of New York
John French, Professor, Department of History, Duke University
Lesley Gill, Professor, Department of Anthropology, Vanderbilt University
Greg Grandin, Professor, Department of History, New York University
Daniel Hellinger, Professor, Department of Political Science, Webster University
Forrest Hylton, Lecturer, History and Literature, Harvard University
Chad Montrie, Professor, Department of History, UMASS-Lowell,
Deborah Poole, Professor, Department of Anthropology, Johns Hopkins University,
Margaret Power, Professor, Department of History, Illinois Institute of Technology
Adolph Reed, Jr., Professor, Department of Political Science, University of Pennsylvania
Gerardo Renique, Associate Professor, Department of History, City College of the City University of New
York
Suzana Sawyer, Associate Professor, Department of Anthropology, University of California
T.M. Scruggs, Professor Emeritus, School of Music, University of Iowa
Steve Striffler, Professor, Department of Anthropology, University of New Orleans
Miguel Tinker Salas, Professor, Department of History, Pomona College
Sinclair Thomson, Associate Professor, Department of History, New York University
Jeffery R. Webber, Lecturer, School of Politics and International Relations, Queen Mary, University of
London
Mark Weisbrot, Co-Director, Center for Economic and Policy Research

July 18, 2013 Posted by | Civil Liberties, Deception, Mainstream Media, Warmongering, Timeless or most popular | , , , , , , , | Leave a comment

Ecuador snubs US trade ‘blackmail’ over Snowden, offers human rights training

RT | June 28, 2013

Ecuador renounced trade benefits which the US threatened to revoke over the Latin American country’s consideration of harboring NSA leaker Edward Snowden. It offered $23 million a year to fund human rights education for Americans instead.

The government of leftist President Rafael Correa came up with an angry response on Thursday after an influential US senator said he would use his leverage over trade issues to cut preferential treatment of Ecuadoran goods at the US market, should Ecuador grant political asylum to Snowden.

“Ecuador will not accept pressures or threats from anyone, and it does not traffic in its values or allow them to be subjugated to mercantile interests,” government spokesman Fernando Alvarado said at a news conference.

He added that Ecuador is willing to allocate $23 million annually, an equivalent of the sum that it gained from the benefits, to fund human rights training in the US. It will “avoid violations of privacy, torture and other actions that are denigrating to humanity,” Alvarado said.

US Senator Robert Menendez, who heads the Foreign Relations Committee in the Senate, said this week that Ecuador risks losing the benefits it enjoys under two trade programs because of its stance on the NSA whistleblower.

“Our government will not reward countries for bad behavior,” he said.

The US is Ecuador’s prime trade partner, with over 40 percent of exports going to the US market.

Both programs were due to expire by the end of next month and were subject to congressional review. Before the Snowden debacle arose, the US legislature was expected to scrap one of them while renewing another one.

Snowden has applied for political asylum, hoping to find protection from American prosecutors, who charged him with espionage over his leaking of classified documents on US surveillance programs.

He is currently thought to be staying in the transit zone of a Moscow airport. He became stranded in the Russian capital after arriving from Hong Kong, because the US annulled his travel passport as part of its effort to get him to American soil for trial.

June 28, 2013 Posted by | Civil Liberties, Economics, Full Spectrum Dominance, Solidarity and Activism | , , , , , , , , , , , , | Leave a comment

Rafael Correa, the Press, and Whistleblowers

By ADAM CHIMIENTI | CounterPunch | June 25, 2013

Once again, we are witnessing a growing frustration with “tiny” Ecuador. The United States government is clearly not happy with what would be the latest diplomatic slap in the face coming from the South American country, i.e. the pending arrival of NSA whistleblower Edward Snowden in the coming days. Beyond the United States’ government though, the US press corps are also seemingly up in arms. Why are they so angry? Well, it appears that they are indignant over the perceived hypocrisy of President Rafael Correa.

According to an article from The Atlantic (and another similar one from NPR here), the Ecuadorian leader “has created a safe space for foreigners like Assange — and now possibly Snowden –[but] he doesn’t do the same for dissenters within his own country.” News agencies like NBC News and The Atlantic think this is “interesting” and want to know ‘Why Ecuador?’ Such inquiries naturally turn to the NGOs, who are also less than pleased with this unruly little country. Freedom House, the Committee to Protect Journalists and others are upset that this very week, the one-year anniversary of Assange being holed up in the Ecuadorian Embassy in London (and the same week that the Snowden asylum request is being reviewed), the Ecuadorian National Assembly has passed a Communications Bill that detractors claim is a major blow to a free press.

Claims of Hypocrisy

For several of the opposition figures and US-based observers, Ecuador’s new media legislation has sealed the deal on the stasi-like state that they imply or openly charge Correa has been dreaming about for years. In other words, transparency advocates like Assange and Snowden are compromising their credibility by associating with the Correa government. Ileana Ros-Lehtinen, the right-wing terrorist supporter/US Congresswoman representing Miami, has been busy tweeting as much. The Ecuadorian government, however, asserts that the bill is meant to place more media power in the hands of public groups and move away from privately owned media monopolies.

Meanwhile, the Council of Hemispheric Relations, Center for Strategic and International Studies, and the Heritage Foundation all say that Ecuador must be punished for this latest insult to the US government. James Roberts of Heritage lashed out at the South American leader on June 24, writing in the National Review Online:

“Rafael Correa has demonstrated a blatant disregard for international standards of justice. That kind of conduct may not be surprising from a man who seeks to don the mantle of Chávez, but it should not be rewarded with trade preferences.”

It doesn’t take much imagination to understand how a figure like Correa would have been dealt with a few decades back, but it appears that the more heavy-handed approach is not really possible at the moment, much to the dismay of the powerful and connected.

Returning to the issue of freedom, has the defiant president of Ecuador used the National Assembly to pass a law that NPR, The Atlantic and others tell us will be used to make the country less transparent and more hostile to journalists who only wish to be free to monitor the government and act as a check on state power? Well, let’s hold off on the most absurd elements of irony here for a moment and address the issue at hand.

About a Coup

It should certainly not be regarded as a good thing if the case was simply a cut-and-dry example of authoritarian overreach. Freedom of the press, as we are learning with the Snowden case, has seemingly never before been so important, or so contentious for that matter. However, the Ecuadorian issue is not so simple and it was certainly complicated after a day of crisis nearly three years earlier when factions of the National Police and armed forces attacked the president of Ecuador on September 30, 2010. The event was widely regarded as a coup attempt. What exactly went down is still somewhat unclear. There was a dramatic showdown between Correa himself and police officers that were angered by a supposed attempt to cut their pay. What is for certain, though, is that it was a countrywide, well-coordinated attempt to shut down the National Assembly, the two major airports in Guayaquil and Quito and eventually a hospital where the president was being treated for wounds. Furthermore, the plotters were also attacking journalists throughout the country, and most of these were pro-government reporters working for public media outlets.

The opposition press has taken an active role in attempts to discredit Correa since he first ran for president. He has elaborated on his views of the press and they are certainly not very congenial. In 2012, during a public TV interview in Spain, Correa said, “one of the main problems around the world is that there are private networks in the communication business, for-profit businesses providing public information, which is very important for society. It is a fundamental contradiction.”

One of the issues that NGOs and journalists have cited in their litany of complaints about Ecuador’s endangered freedom of the press actually stems from the 2010 police and military uprising. During the chaos that ensued during the alleged coup attempt, one reporter from the paper of record in Guayaquil took the opportunity to claim that Correa had ordered police to fire on a crowd of innocent onlookers caught up in the melee, presumably aiming to provoke anti-government sentiments. The claim turned out to be completely unsubstantiated. The government fined the journalist and his paper El Universo some $40 million for defamation but later withdrew the charges. Consider what might have happened in the US if the Los Angeles Times or Washington Post would have falsely claimed that Barack Obama had personally ordered military or police forces to fire on a crowd of protesters and innocent people were injured as a result somewhere in Washington, D.C It would be difficult to imagine a reporter and his editors ever committing such a stupid move, but if they had, there would have been some serious consequences. Alas, this is not really too shocking in the context of a sensationalist Latin American press.

Televised and Untelevised Revolutions

That dramatic Ecuadorian affair is reminiscent of the 2003 documentary film The Revolution Will Not Be Televised,directed by the Irish filmmakers Kim Bartley and Donnacha Ó Briai. The pair happened to be in Caracas, Venezuela during one of several 21st century Latin American coup attempts thus far. The film provided a key glimpse into the nature of media in the region, so often dominated by pro-US elites. It showed the efforts expended by private media outlets to incite anger and get people out in the streets in order to challenge the power of anti-Washington governments.

Right up until his death, it was a sort of requirement for US and European governments, journalists and NGOs to claim that Hugo Chávez Frías was a dictator for not renewing the license of RCTV. The outlet, owned by Marcel Granier, was one of the most virulent anti-government television stations operating on the state-owned airwaves and the Venezuelan government eventually forced them over to cable television. The criticism of the allegedly authoritarian leader served to cover up the very questionable coverage by corporate media. Indeed, one anti-Chávez commentator honestly noted six months ago that the idea that Chavez ever controlled the Venezuelan media was a myth. He pointed out that back in April 2002,

“Coup plotters collaborated with Venezuelan media figures before the coup. The media refused to show statements by officials condemning the coup d’état. When the coup d’état failed, the private Venezuelan networks refused to broadcast the news that Chávez had returned to power.”

“Correa is a Very Smart Guy”

The Venezuelan experience did not escape the attention of the rather astute and confident Correa. Neither did the fact that, only 15 months prior to the attempted coup in Ecuador, there was a successful coup in Honduras, removing the president of that country, Manuel Zelaya, by gunpoint in the middle of the night. This was considered to be illegal by President Obama himself, although soon after the offending and illegitimate new government of Roberto Micheletti was accepted by his administration and is still backed to this day by Washington (under current President Porfirio Lobo). This support comes despite a terrible record of human rights abuses and, yes, a genuine threat to a the flow of crucial information. Journalists have been censored and intimidated since the 2009 coup in Tegucigalpa and, what’s worse, have frequently been murdered by the government and its allies. Honduras consistently ranks as one of the most dangerous places in the world to be a journalist. The double standards are blatant and many would like to see the opinion-makers from the States take a closer look in the mirror.

Popular Support and Popular Media

Anyone who would have spent some time watching The Revolution Will Not Be Televised would have also learned what President Hugo Chávez, then only a mere three years into his presidency, meant to the millions of impoverished and the historically marginalized majority in Venezuela. This did not stop the State Department and its allies from focusing on how best to rid Venezuela of its president. (Incidentally, while doing an internship for the State Department in the fall of 2001, I was invited by the Public Diplomacy department to work on ideas on how to get the message out to Venezuelan people about the dangerous nature of President Chávez.) That coup attempt failed, as the one in Ecuador would eight and a half years later, mainly because the people staunchly backed the president of the Republic.

At the time of the 2002 coup attempt, Chávez was wildly popular and the same was true of Rafael Correa in September 2010; two weeks before the coup attempt, polls found that he had the support of 67% of respondents in the capital Quito and nearly 60% in his native Guayaquil, the second largest city. Correa actually got a nice bump in approval ratings after the whole affair and, more recently, he has just won a major reelection bid in February of this year precisely because he has brought political and economic stability to the country of 15 million people. Poverty has been reduced dramatically since Correa took office. Public works projects have resulted in huge improvements to the country’s infrastructure and, more importantly, there is a sense of independence from the yoke of neocolonialism so prevalent in years past.

It appears that Correa and the government may have some good reasons to increase the influence of publicly owned media companies and challenge private corporate media elites. This foray into press control is a dangerous game, however, especially since there appear to be some genuine concerns from indigenous and environmental activists who oppose the government’s expansive plans for an economy based primarily on extraction. Often, those who disagree with Correa are dismissed as childish Marxists, or more alarmingly, terrorists. There must be more attempts to reach a humane and considerate consensus on some of these crucial issues, especially as the Chinese enter the fray in search of resources to fuel their economic needs and a gateway into South America (and Ecuador recovers from two major oil spills so far this year). There are clearly opportunities, but also responsibilities to the environment and the people that live outside of the metropoles.

With such considerations in mind, is there a reason to agree with the opinion-makers in the US who would dub Correa as a dictator, increasingly revealing his dangerous nature?

One of Correa’s main antagonists is Martin Pallares, a senior political editor at one of the major national newspapers El Comercio. Pallares recently said, “I think freedom of press in Ecuador is gravely threatened by a system managed by the government. They have the objective to discredit the media, affect their credibility. And they also want to characterize the press like political adversaries and destabilization agents.” In a very important sense, the media should or even must by its nature act like political adversaries. Destabilization is a different story however. In the case of the coups in Latin America, there is typically interference by Western powers, especially the United States, and this often serves to destabilize governments Washington deems troublesome (through the funding of local civil society groups via the National Endowment for Democracy, USAID and, of course, the CIA). The message is often that these groups are just trying to further democratic causes, but this belies an obvious mission by colluding corporate and government powers that is evident throughout the many anti-democratic interventions and support of such leaders in postwar history (from Iran in 1953 to both the Maldives and Paraguay in 2012).

Felonious Journalists

Returning to the issue of irony, here you have several of the leading news outlets in the US reporting on the lack of media freedom in Ecuador, yet ignoring the major issues raised by leakers, journalists, and publishers such as Bradley Manning, Julian Assange, Glenn Greenwald and Edward Snowden. In effect, these major corporate outlets are legitimizing or are even themselves guilty of demonization of these individuals who have put everything on the line to get the public talking about some serious violations of human rights and privacy, and the dangerous encroachment of the corporate state. One has to wonder if the fact that many of these commentators themselves are getting paid major corporate money has anything to do with their take on the Snowden/Ecuador affair.

If you watched the Sunday morning talk show highlights, you should be able to draw your own conclusion. One jaw-dropping example of the corporate media’s lack of objectivity in this discussion was the meticulously staged interview that George Stephanopoulos did with General Keith Alexander, the man who has access to the personal data of nearly anyone he so chooses to target. There were several moments in which the responses to some of the host’s softball questions were so weak (lots of babbling about dots) that it was unbelievable that Stephanopoulos didn’t pounce. Yet, why he did not or would not do such a thing is evident considering the establishment’s treatment of the recently departed journalist Michael Hastings, loathed for his refusal to play footsie with the biggest fish in the game. That sort of behavior simply cannot be tolerated.

Also on the talk show rounds, there was David Gregory’s aggressive and ethically revealing accusation thrown at guest Glenn Greenwald in the form of a ‘tough question’. Gregory actually asked Greenwald why he shouldn’t be charged with a crime, and The Guardian columnist sharply replied that it was “pretty extraordinary that anybody who would call themselves a journalist would publicly muse about whether or not other journalists should be charged with felonies”, with no evidence of wrongdoing. But there you have the attitude that the establishment needs to maintain close ties; it mustn’t be overly adversarial and never threaten the stability of the government or a particular administration, even if that means sitting on stories such as the spying on US citizens, like The New York Times was guilty of in 2004 when it delayed publication of a story on government surveillance after being approached by the Bush Administration.

Indy (media) to the Rescue

Modern professional journalism often leaves us wanting for more. Thankfully, we have the independent media outlets that are often way ahead on exposing some of the more heinous crimes of the times. This helps millions around the world identify the mantras of the media elite in the United States: 1) the corporate bias is never to be exposed or acknowledged; 2) it should never be overly adversarial to the government; and 3) a “journalist” should always attempt to divert from important issues that arise from whistleblowing by attacking the whistleblower’s character.

Of course, all of these conventions go out the window when it comes to perceived enemies, in which case the media, NGOs, corporations and the US government always work together in delegitimization and destabilization efforts. Snowden has followed Assange’s lead and is headed to Ecuador not simply because, as The Atlantic has suggested, both parties feel persecuted or they want to ‘poke the US in the eye’. The reason why Ecuador has offered asylum and why Snowden was seeking it from them is because they believe that there is hope in the future, beyond the grossly excessive power of the United States and its presumed worldwide dominion. The whistleblowers and the Ecuadorian leaders, like countless others around the world, believe that the only hopeful way forward is to shatter the antiquated and dangerous notions inherent in establishment journalism, corporate supremacy, and US hegemony. I guess it is no surprise that the privileged classes vehemently disagree.

Adam Chimienti is a teacher and a doctoral student originally from New York. He can be reached at ajchimienti@gmail.com.

June 25, 2013 Posted by | Deception, Full Spectrum Dominance, Mainstream Media, Warmongering | , , , , , , , | 1 Comment

First Council of Banco del Sur Ministers Held in Caracas

By Denis Culum | The Argentina Independent | June 12, 2013

Economy ministers of member countries of Banco del Sur are meeting today in Caracas to define the operational details and implementation of this financial institution – a new regional funding entity independent of the International Monetary Fund (IMF) and the World Bank.

Hernán Lorenzino, the minister of economy and public finance of Argentina, Luis Arce, Bolivian minister of economy and Carlos Marcio Cozendey, secretary of international affairs at the Brazilian ministry of finance, have already arrived to the Venezuelan capital.

Paraguay is the only country that has not confirmed the attendance of any representative at the meeting.

Ministers are expected to establish a ‘start date’, when each country will have to make its contribution to the newly founded institution. As a full member and founder, Argentina will provide US$400 million to Banco del Sur.

Days ago, Ricardo Patiño, Ecuadorian foreign affairs minister, had stated that the new bank “can be used to bail out a country, small or big, and meanwhile not have to submit to the dictates and conditions of the IMF.”

Banco del Sur is a result of an initiative by the late leader of Venezuela, Hugo Chávez, and was formalised in February 2007 when he and then Argentine president Néstor Kirchner signed a memorandum of creation, which also included Bolivia, Ecuador, Uruguay, Brazil and Paraguay.

The South American financial institution aims to promote development, economic growth and improvement of infrastructure in all member countries.

The entity’s constitutive agreement establishes that Banco del Sur will have US$20bn of authorised resources and subscribed capital of US$10 billion, with US$7 billion in initial contributions by partner countries. A member contributes according to the capacity of its economy.

The headquarters of Banco del Sur which began preliminary operations on 3rd June is in Caracas, but also has offices in Buenos Aires and La Paz.

June 13, 2013 Posted by | Economics, Solidarity and Activism, Timeless or most popular | , , , , , , , , , , , | Leave a comment

UNASUR to Create Military Force

By Laura Benitez | The Argentina Independent | May 9, 2013

The Union of South American Nations (UNASUR) has announced that it will create a united defence body to promote democratic stability among its member countries.

Military delegates of Argentina, Brazil, and Ecuador concluded a two day meeting yesterday in Quito, and agreed on creating the first South American Defence College (ESUDE) – a safety training centre with the aim of turning “the regions into a zone of peace”.

UNASUR has said that the idea behind ​​the project is to “eliminate outdated visions that have formed our military, with manuals and taxes from foreign powers.

“The goal is to start from scratch and consider a defence doctrine, without starting from the premise of opposing countries. It is important to define our role in the military, to assume responsibility for prevention, border control or emergency responses.

“We want to create a body of higher and postgraduate education to create a regional identity for civilians and our military, and to avoid interference of other countries or geopolitical zones,” a UNASUR spokesperson said.

The ESUDE proposal paper will be presented at the next meeting of the executive body for the South American Defence Council in Lima, Peru on the 16th and 17th May. Members who attended yesterday’s meeting in Quito will meet again during the second week of July in Buenos Aires, to define the Esude proposal.

One of the issues that is expected to be up for debate in the following meetings is the level of participation in the armed forces from each country.

The initiative already has the support of other member countries, including Argentina, Brazil, Ecuador, Peru, Venezuela, Guyana, Suriname, and Uruguay.

May 9, 2013 Posted by | Solidarity and Activism | , , , , , , , , , | Leave a comment

Correa Reiterates Warning Against U.S. Interference

Prensa Latina | May 8, 2013

correa_ecuadorQuito – President Rafael Correa reiterated his warning to U.S. Ambassador, Adam Namm, to comply with his diplomatic role instead of involving himself in anti-government political activities.

In conversations with reporters in the city of Guayaquil, the Ecuadorian president discounted the expulsion of the U.S. ambassador for now, but recommended that he be more considerate with this country.

Correa described the U.S. ambassador’s participation in an activity organized by a journalists’ guild opposed to the government, as “rude,” where the alleged lack of freedom of speech in Ecuador was criticized.

“Why don’t the other ambassadors participate?” Correa asked. “Rarely have we seen so much betrayal of a calling by the U.S. ambassador, who is really trying to create an uncomfortable situation,” the president said.

Citing Namm’s words that Washington is very concerned, Correa replied that he could go home and worry from there.

“This fact, I think, was a slip by the ambassador, which says a lot about his vision. He believes that he comes to impose conditions, and who has told him that is his role?” Correa asked.

According to Correa, the action is scarcely relevant, but warned against it continuing. “Make no mistake, we are facing immense power,” he said.

May 9, 2013 Posted by | Deception | , , , , | Leave a comment

Private Bank Profits Don’t Represent the Health of the Economy

By Arthur Phillips | CEPR | May 8, 2013

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.

The reforms that increased taxes on the banks were reportedly enacted to pay for increasing cash subsidies for the country’s poor, and they were passed by congress in a 79-5 vote. Gill describes these changes as having been motivated by an election race that Correa was all but certain to win, rather than being the latest step in a determined and so-far successful process to transform a country that, like many in the hemisphere, has been historically plagued by inequality. It is perhaps worth noting that Ecuador has seen some of the region’s highest growth over the past few years. Furthermore, economic gains have been broadly shared and increased social spending has significantly improved the quality of life of a broad portion of the country’s citizens.

As CEPR’s recent report on Ecuador’s financial reforms describes, President Rafael Correa’s actions in recent years are a major reason why the government has raised revenue and consequently been able to pursue expansionary fiscal policy and increased social spending. The results of this policy regime have included the lowest unemployment rate on record, a near-halving of the poverty rate, and a doubling of education funding, among other gains.

Yet, from this article, one would be led to believe that new taxes on the financial sector have only led to lower bank profits, which are presented as a serious problem for the country’s macroeconomic outlook. Among Gill’s quoted sources are the CEO of Ecuador’s biggest brokerage firm, the director of a market research and consulting firm, and the president of the country’s Private Banking Association. Their views should come as no surprise, but they are not necessarily the full picture or even accurate.

The article (on the second page) also quotes Pedro Solines, Ecuador’s banking superintendent, as saying “Less profits for the banks, yes, but where does it go? To the people who receive the subsidy.” The quote continues with Solines saying, “If I receive the subsidy, I’m going to say that the impact is very good. If I run a shop where the person who receives the subsidy spends not $35 but $50, I’m going to say it’s good. If I’m a bank, I’m going to say I’m doing badly.”

Correa was re-elected on February 17, receiving 57 percent of the vote compared to his closest competitor’s 23 percent.

May 9, 2013 Posted by | Deception, Economics, Mainstream Media, Warmongering | , , , , | Leave a comment

Ecuador: Correa Confirms Interest in Joining Mercosur

By Emily Tarbuck | The Argentina Independent | February 21, 2013

With Rafael Correa emerging victorious for a third and final term in Sunday’s presidential elections, the leader of the Alianza País party spoke to Argentine newspaper Página 12 about Ecuador becoming part of the Mercosur agreement, their relationship with Argentina, and same-sex marriage. During the interview, he also announced that his party obtained “97 or 98 seats” in the National Assembly, though the final results of the recount are yet to be announced by the National Electoral Council.

In the interview, Correa first discussed the strengthening of ties with Argentina by “further deepening the bilateral relationship” through trade, and agreed with President Cristina Fernández de Kirchner’s condemnation of the “total surrender of our countries at the hands of transnational corporations”. Correa went on to say however that the relationship between the two countries is more than commercial because “with Argentina we have the same political vision”.

Throughout the interview Correa expressed his hope to join Mercosur, and when asked if the dollarisation of Ecuador would hinder the incorporation into the agreement, Correa agreed that it is “an obstacle for any integration process and trade liberalisation”. However, he insisted that “we are very interested in joining Mercosur… and they are very interested in integrating Ecuador”.

Speaking of the impending expiration of the Andean Trade Promotion and Drug Eradication act (ATPDEA), Correa said, “Andean countries have a responsibility [to join these agreements] because they are the biggest producers of drugs! But the US say nothing of the responsibility they have for consuming them.” He went on to say that this agreement is “a new form of pressure for countries that do not behave according to the mentality of the US”, and that “if [the act is] extended, fine, if not, we will know how to succeed.”

As the interview progressed, Correa was questioned on the topic of same-sex marriage, in which he responded that, “the Constitution says that marriage is an institution between people of a different sex”. Correa said that although “we promote many rights and the non-discrimination of any person for any reason… the Constitution clearly says that marriage is between a man and a woman.”

Finally, when asked if the continuation of his government would mean a less restrictive abortion law, Correa said that, “personally I will not promote any law that goes beyond the two cases that are already covered in the current legislation, in the case of a violation of a woman with intellectual disabilities and in the case of rape, when a child is violated.”

You can read the interview in full here.

February 21, 2013 Posted by | Economics | , , , , , | Leave a comment