Argentina to summon Israeli ex-envoy over AMIA comments
Press TV – January 4, 2014
Argentina is to summon former Israeli envoy to Buenos Aires to explain his recent comments that the Tel Aviv regime has killed most of the perpetrators behind the bombing of the AMIA Jewish community center in the Latin American country in the 1990s.
In an interview with Buenos Aires-based Jewish News Agency (Agencia Judía de Noticias) on Thursday, Itzhak Aviran, who was the Israeli ambassador to Argentina from 1993 to 2000, said Israeli security agents operating abroad have “killed most of those who had carried out the attacks.” Aviran also accused the Argentinean government of not doing enough “to get to the bottom” of the incident.
AMIA case special prosecutor Alberto Nisman said on Friday that “I am surprised at his statements. I have ordered a testimonial statement. I would like to know how he is sure about it, who were these people and which proof he has.”
“What he is saying is that the perpetrators of the attacks are identified by name and surname,” Nisman said, adding that the process to query the Israeli ex-envoy should not take longer “than a month, or a month and half.”
Israel has dismissed Aviran’s comments as “complete nonsense.”
Under intense political pressure imposed by the US and Israel, Argentina formally accused Iran of having carried out the 1994 bombing attack on the AMIA building that killed 85 people.
AMIA stands for the Asociacion Mutual Israelita Argentina or the Argentine Israeli Mutual Association.
The Islamic Republic has categorically and consistently denied any involvement in the terrorist bombing.
Tehran and Buenos Aires signed a memorandum of understanding in January, 2013, to jointly probe the 1994 bombing.
The Israeli regime reacted angrily to the deal a day after it was signed. “We are stunned by this news item and we will want to receive from the Argentine government a complete picture as to what was agreed upon because this entire affair affects Israel directly,” Israeli Foreign Ministry spokesperson Yigal Palmor said on January 28.
On January 30, however, Argentina said Israel’s demand for explanation over the “historic” agreement is an “improper action that is strongly rejected.”

How the Washington Post Distorts Colombia
What Dana Priest Left Out
By JACK L. LAUN | CounterPunch | January 2, 2014
On December 21, 2013 the Washington Post published an article titled “Covert action in Colombia” by reporter Dana Priest. Ms. Priest is a veteran reporter who has over the course of her career produced significant reports on important topics. However, in her report on the role of the United States government in supporting the Colombian state’s war on the FARC guerrillas she has overlooked or ignored some very basic aspects of this relationship.
The most significant of these is that she ignores the nature and history of the paramilitary forces’ activities and the link of these to the United States government. As Father Javier Giraldo, S.J., correctly observed years ago, the paramilitaries in Colombia are a strategy of the Colombian state. Furthermore, this strategy was suggested to the Colombian government by a United States military mission to Colombia in February 1962, in response to fear of the spread of influence of the Castro Revolution in Cuba. The mission was led by Lieutenant General William Yarborough, the Commander of the U.S. Army Special Warfare Center. A Wikipedia entry cites a secret report to the Joint Chiefs of Staff quoting Yarborough as recommending “development of a civilian and military structure…to pressure for reforms known to be needed, perform counter-agent and counter-propaganda functions and as necessary execute paramilitary, sabotage and/or terrorist activities against known Communist proponents. It should be backed by the United States.” (See this citation and more information at Wikipedia.org/wiki/William_P_Yarborough.) The basic idea behind the reliance upon paramilitaries has been to keep the Colombian military from being involved directly in the Colombian government’s dirty war against the guerrillas and rural noncombatants and thus avoid having “dirty hands”. As Father Giraldo observed back in 1996, “Paramilitarism becomes, then, the keystone of a strategy of “Dirty War”, where the “dirty” actions cannot be attributed to persons on behalf of the State because they have been delegated, passed along or projected upon confused bodies of armed civilians.” (Colombia: The Genocidal Democracy, Common Courage Press, 1996, p. 81). There are many examples of the paramilitary death squad actions. One of these was a terrible slaughter by machetes and chainsaws of an estimated 30 civilians in the town of Mapiripan in Meta Department on July 15-20, 1997, in which paramilitary forces under the command of Carlos Castano in northern Colombia were allowed to travel by airplane with Colombian military acquiescence to reach their target community in southeast Colombia. A second example of the vicious attacks of paramilitary forces upon civilians was the slaughter on February 21, 2005 of 8 persons of the Peace Community of San Jose de Apartado in Antioquia Department, including a founder and leader of that Community, Luis Eduardo Guerra. The latter massacre was carried out with the assistance of Colombian Army soldiers from the Seventeenth and Eleventh Brigades.
While Ms. Priest approvingly suggests that Colombia “with its vibrant economy and swanky Bogota social scene” is far removed from Afghanistan, she fails to recognize that most of Bogota’s nearly 8 million residents are very poor, while a great majority of the country’s rural residents are impoverished. To be accurate in her portrayal of present-day Colombia, Ms. Priest should recognize and acknowledge that the distribution of land among Colombia’s population is the second worst in South America, after Paraguay, and the 11th worst in the world. (Oxfam Research Reports, “Divide and Purchase: How land ownership is being concentrated in Colombia”, 2013, p.7. See http://www.oxfam.org.) In rural areas paramilitary forces, supposedly demobilized in a sham proceeding during Alvaro Uribe’s Presidency, continue to threaten and murder campesinos (small-scale farmers) and force them and their families off their lands, so they can be taken over by large landowners or multinational corporations with mining and petroleum plans encouraged by the government of President Juan Manuel Santos. Paramilitary activity also continues to account for murders of labor union leaders and organizers, more of whom are killed in Colombia year after year than in any other country in the world.
It is also disappointing that Ms. Priest makes no mention of the fact that there are some 6 million internally-displaced persons in Colombia, more than any other country in the world. In his December 27-29 article in Counterpunch, titled “Mythmaking in the Washington Post: Washington’s Real Aims in Colombia”, Nick Alexandrov correctly calls attention to Ms. Priest’s failure to take into account these displaced persons. And he also properly focuses criticism upon Ms. Priest’s failure correctly to acknowledge one of the most important links of the United State to Colombia and one of the most damaging: the drug trade and the effects of coca crop spraying (fumigation) upon Colombia’s rural population. Here again the responsibility of the United States government is clear and direct. As Mr. Alexandrov points out, tens of thousands of Colombia’s campesinos have been decimated economically as their legal food crops are destroyed through fumigation under direct control of the United States government. As a Colombia Support Network delegation was told by U. S. Embassy personnel while Anne Patterson was Ambassador there, the crop-spraying campaign using Round-Up Ultra has been controlled from the Embassy itself. Indeed, mayors of towns in Putumayo Department (province) told us they are not informed in advance and have no control over when fumigation of farm fields in their municipalities occurs.
Furthermore, the assertion that the FARC are principally responsible for Colombia’s production of illicit drugs is questionable. Right-wing paramilitaries, protected by the Colombian Army and linked to many Colombian political figures, have been involved in the drug trade for decades, and continue to benefit from this trade, as do their benefactors in the private sector, such as owners of large cattle ranches, merchants, and banana plantation owners. And the United States government has supported and even idealized one of the persons most responsible for corruption of the political process in Colombia, Alvaro Uribe Velez. Before his election as President in 2002, Alvaro Uribe had been identified by the United States government as linked to drug-trafficking. As Virginia Vallejo, a Colombian television journalist and sometime love interest of Pablo Escobar, suggested to me in a telephone conversation and mentioned in her book, Amando a Pablo, Odiando a Escobar (Random House Mondadori, September 2007), Alvaro Uribe was favored by Escobar. He allegedly approved the opening of drug-transit airstrips as Director of Civil Aeronautics. Later, as Governor of Antioquia Department, Uribe promoted the formation of so-called “self-defense” forces, which morphed into cut-throat, illegal paramilitaries who ravaged the countryside. His cousin Mario Uribe, with whom he has been particularly close, was convicted of corrupt actions and spent time in prison, while his brother Santiago Uribe Velez is about to be prosecuted for organizing and training illegal paramilitary forces on a Uribe family ranch. When Alvaro Uribe ran for re-election in 2004, his agents bribed Congresswoman Yidis Medina to get her to change her vote in committee so that Uribe could be re-elected (not permitted at that time by the Colombian Constitution). Yidis Medina went to prison for having received the bribe, but neither Alvaro Uribe nor his staff members who offered the bribe have been convicted and sentenced for the offenses they committed.
What was the reaction of the United States government to President Uribe’s alleged promotion of illegal activities? He was awarded the Presidential Medal of Freedom by President George W. Bush, the highest honor a President can convey upon any person! (For a detailed account of Alvaro Uribe’s purported misdeeds, see the Master’s thesis of Francisco Simon Conejos at the University of Valencia, Spain, of December 2012, titled, in English translation, “Crimes Against Humanity in Colombia: Elements to Implicate Ex-President Alvaro Uribe Velez before Universal Justice and the International Criminal Court”.)
No analysis of the United States’ role in Colombia can properly ignore the relationships and responsibilities outlined above. But even beyond these points if one is to consider whether the United States’ actions toward and in Colombia have been beneficial for that country and its people, one must look at the effect of the United States government’s support for corporate interests of companies from this country and their actions in Colombia. The policies of Presidents Clinton, Bush and Obama in the past two decades have advanced the agendas of mining and petroleum companies— such as Exxon Mobil, Occidental Petroleum, and Drummond— and food companies— such as Chiquita Banana and, most recently, Cargill— while these companies’ activities in rural Colombia have caused environmental damage, massive displacement of residents of these areas and destruction of the campesino economy. One wishes that Ms. Priest had treated the Colombian context much more broadly to provide a much more complete and honest view of how United States government actions and policies have affected the population of this important country, with Latin America’s third largest population (after Brazil and Mexico).
John I. Laun is president of the Colombia Support Network.
Washington’s Real Aims in Colombia
Mythmaking in the Washington Post
By Nick Alexandov | CounterPunch | December 27, 2013
Last Sunday’s Washington Post carried a front-page article by Dana Priest, in which she revealed “a CIA covert action program that has helped Colombian forces kill at least two dozen rebel leaders.” Thanks to “a multibillion-dollar black budget”—“not a part of the public $9 billion package of mostly U.S. military aid called Plan Colombia”—as well as “substantial eavesdropping help from the National Security Agency,” the initiative has been successful, in Priest’s assessment, decimating the Revolutionary Armed Forces of Colombia (FARC) guerrillas, as the country’s “vibrant economy” and “swanky Bogota social scene” flourish.
The lengthy piece offers a smorgasbord of propagandistic assertions, pertaining both to Washington’s Colombia policies, and to its foreign conduct in general. For a sampling of the latter, consider one of the core assumptions underlying Priest’s report—namely, that our noble leaders despise drugs. The FARC’s “links with the narcotics trade” and “drug trafficking” motivated U.S. officials to destroy their organization, we’re supposed to believe. True, CIA informants in Burma (1950s), Laos (1970s), and Afghanistan (1980s) exploited their Agency ties “to become major drug lords, expanding local opium production and shipping heroin to international markets, the United States included,” Alfred W. McCoy’s research demonstrates. True, a few decades ago the Office of the United States Trade Representative joined “with the Departments of Commerce and State as well as leaders in Congress” for the purpose of “promoting tobacco use abroad,” the New York Times reported in 1988, quoting health official Judith L. Mackay, who described the resulting “tobacco epidemic” devastating the Philippines, Malaysia, and other countries: “smoking-related illnesses, like cancer and heart disease” had surpassed “communicable diseases as the leading cause of death in parts of Asia.” True, the DEA shut down its Honduran office in June 1983, apparently because agent Thomas Zepeda was too scrupulous, amassing evidence implicating top-level military officials in drug smuggling—an inconvenient finding, given Honduras’ crucial role in Washington’s anti-Sandinista assault, underway at the time.
But these events are not part of History, as the subject has been constructed in U.S. schools. It’s common to read, every year or so, an article in one of the major papers lamenting the fact that “American students are less proficient in their nation’s history than in any other subject,” as Sam Dillon wrote in a 2011 piece for the Times. The charge is no doubt true, as far as it goes: Dillon explained that only a “few high school seniors” tested were “able to identify China as the North Korean ally that fought American troops during the Korean War,” for example. But the accusation is usually leveled to highlight schools’ inadequacies, with little examination of the roles these institutions are meant to serve. And the indictments are hardly novel: in 1915, a Times story on New York City’s public schools complained their graduates “can not spell simple words,” were incapable of finding “cities and States” on a map, and so on. That piece explicitly critiqued graduates’ abilities to function as disciplined wage-earners, and so was more honest than the majority of today’s education coverage. The simple fact is “that the public schools are social institutions dedicated not to meeting the self-perceived needs of their students [e.g., by providing an understanding of how the world works] but to preserving social peace and prosperity within the context of private property and the governmental structures that safeguard it,” David Nasaw concludes in his fascinating history of the subject. Private schools, to be sure, are similar in essential respects. And one result of this schooling is that well-educated journalists can repeat myths about U.S. foreign policy, as their well-educated readers nod in blind assent.
The notion that U.S. officials have a coherent counterdrug policy is, again, one of these myths. In addition to the historical examples of U.S. support for drug traffickers cited above, we can note that the slur “narco-guerrilla,” which Washington uses to imply that the FARC is somehow unique for its involvement in the narcotics trade, ought to be at least supplemented by—if not abandoned in favor of—“narco-paramilitary.” Commentators tend to discuss the paramilitaries and the Colombian state separately, presupposing the former are “rogue” entities—another myth—when it would be better to view them, with Human Rights Watch, as the Colombian Army’s unofficial “Sixth Division,” acting in close conformity with governmental aims. Paramilitary leader Carlos Castaño admitted in March 2000 that some 70% of the armed groups’ funding came from drug trafficking, and U.S. intelligence agencies took no issue with his estimate—and “have consistently reported over a number of years that the paramilitaries are far more heavily involved than the FARC in drug cultivation, refinement and transshipment to the U.S.,” International Security specialist Doug Stokes emphasizes.
When these substances enter our country, they become a key pretext for the skyrocketing incarceration rate, which has more people imprisoned for drug offenses today than were incarcerated for all offenses in 1980, criminologist Randall Shelden has pointed out, with rates of arrest and sentencing durations especially severe for blacks. “Every criminal prohibition has that same touch to it, doesn’t it?” legal historian Charles Whitebread once asked. “It is enacted by US,” he stressed, “and it always regulates the conduct of THEM”—“you know, them criminals, them crazy people, them young people, them minority group members,” he added sardonically. Reviewing the history of marijuana prohibition, Whitebread noted that, at the Marihuana Tax Act hearings in 1937, two men spoke regarding the drug’s medical effects. One was Dr. William C. Woodward, Chief Counsel to the American Medical Association, who explained his organization had found “no evidence that marihuana is a dangerous drug.” “Doctor,” a Congressman complained, “if you can’t say something good about what we are trying to do, why don’t you go home?” The second was a Temple University pharmacologist, “who claimed that he had injected the active ingredient in marihuana into the brains of 300 dogs, and two of those dogs had died.” When one Congressman asked him whether he had experimented on dogs because of some similarity they bore to humans, the pharmacologist professed ignorance: “I wouldn’t know, I am not a dog psychologist.”
That was the extent of the medical basis for outlawing marijuana in the U.S., as threadbare as the anti-drug pretexts of Washington’s Colombia policies. Nearly four years after Plan Colombia’s 1999 announcement, for example, the U.S. General Accounting Office reported that “the Departments of State and Defense [had] still not developed estimates of future program costs, defined their future roles in Colombia, identified a proposed end state, or determined how they plan[ned] to achieve it.” But while efforts to reduce coca cultivation and cocaine production were poorly articulated—and failed consistently—other endeavors met with great success. For example, aerial fumigation displaced some 17,000 people from the Putumayo Department, where the FARC had a major presence, in 2001 alone. The fumigation effectively converted the land from a means of subsistence into a profit source: journalist Garry Leech pointed out that, from 2003-2004, there was “a slew of new contracts signed between multinational companies and the Colombian government,” and the events in Putumayo and elsewhere suggest that Colombia’s herbicide-spraying campaign was never really aimed at illicit crops, typically described as the main target. It seems that if the point were to eradicate, say, coca, the solution would be relatively simple: let coca growers harvest something else. But Plan Colombia has consistently devoted only minimal funding for alternative development schemes, indicating the peasants’ sin isn’t growing coca, but living as subsistence farmers. That kind of activity is an inappropriate use of the land in an oil-rich region, where there are profits to be made.
A Guatemalan peasant made a similar point to author-activist Kevin Danaher, when he visited her country in 1984—shortly after School of the Americas alumnus Ríos Montt had completed his genocidal tear through the countryside. The woman, Danaher writes, “told us that soldiers had come to her home one night and hacked her husband to death, right in front of her and her three children;” the man “was a subversive,” in the military’s eyes, “because he was helping other peasants learn how to raise rabbits as a source of food and money.” Danaher struggled to understand the connection between this effort at self-sufficiency, and the brutal end its advocate met. “Look,” the widow explained, “the plantations down along the coast that grow export crops are owned by generals and rich men who control the government. A big part of their profit comes from the fact that we peasants are so poor we are forced to migrate to the plantations each year and work for miserable wages in order to survive.” Were she and other Guatemalan peasants to become self-reliant, they “would never work on the plantations again”—an indication of the severe threat rabbit-raising posed.
This woman’s remarks indicated who Washington’s real enemy was in Guatemala, and throughout the world. The U.S. government was not opposed merely to “Communists,” real or imagined, during the Cold War, and in Colombia its policies have helped ruin—or end—the lives of millions of destitute individuals beyond the FARC’s top officials. Of course, Sunday’s Post article ignores this fact, portraying the struggle as one between the U.S. government and its Colombian allies on one side, and aggressive guerrillas on the other. But we can expect little else from this mythmaker of record.
Ecuador: Government Announces End of Cooperation with USAID
By Lucy Adler | The Argentina Independent | December 17, 2013

Ecuadorean president Rafael Correa (photo by Miguel Ángel Romero/Ecuadorean presidency)
The Ecuadorian government released a statement on Monday announcing that the country would no longer be collaborating with USAID, a US agency for International development.
The Ministry for International Development (SETECI) released a statement explaining the decision to cut ties with USAID. “The last bilateral cooperation programme between Ecuador and the US was signed in 2007 and the projects resulting from this collaboration are now finishing. Given that we have not negotiated a new a agreement, SETECI has informed USAID that they cannot carry out any new projects, nor extend the deadlines of projects currently underway.” The statement added that cooperation would remain suspended “until our governments negotiate and sign a new bilateral cooperation agreement”.
According to the SETECI, since 2007, USAID had invested a yearly average of US$32mn in initiatives in Ecuador, the majority of which were implemented by local and international NGOs.
The United States ambassador in Quito also released a statement on the matter, indicating that over the last two years the two countries had unsuccessfully tried to negotiate “an agreement which would allow USAID’s work in Ecuador to continue”. The statement went on to say that due to the “indefinite freeze on USAID activities” implemented by the Ecuadorian government, the organisation would have to cancel four projects which looked to protect the environment and strengthen civil society, and which were currently underway.
In June 2012, Ecuadorian President Rafael Correa had threatened to expel USAID from Ecuador after accusing the organisation of giving financial support to opposition groups and getting involved in the country’s internal politics. At the time he said that other countries in the region were also considering ending relations with USAID.
In May 2013, Bolivian President Evo Morales expelled USAID from Bolivia, stating that the agency was conspiring against his government.
‘Stop lying’: Uruguay president chides UN official over marijuana law
RT | December 14, 2013
Uruguay’s president has accused the head of the UN’s International Narcotics Control Board (INCB) of lying and double standards, after the official claimed the country did not consult the anti-drug body before legalizing marijuana.
Earlier this week, Uruguay became the first country in the world to legalize both the sale and production of marijuana.
INCB chief Raymond Yans has slammed the “surprising” move, accusing the South American state of legalizing the drug without first discussing it with the UN organization.
Uruguay’s president, Jose Mujica, rejected the criticism on Friday, saying that he’s ready to discuss the law with anyone.
“Tell that old man to stop lying,” Mujica said in an interview with Uruguay’s Canal 4.
“Let him come to Uruguay and meet me whenever he wishes… Anybody can meet and talk to me, and whoever says he couldn’t meet with me tells lies, blatant lies.”
“Because he sits in a comfortable international platform, he believes he can say whatever nonsense,” he added.
Yans has accused Uruguay of “pirate attitudes” for knowingly violating the 1961 Single Convention on Narcotic Drugs, which the South American country is part of.
But Mujica reminded that Yans did not say a word about the US states of Colorado and Washington, which also legalized marijuana.
“Does he have different rules: one for Uruguay and other for the world’s strong countries?” he asked.
First lady Lucia Topolansky, a member of the Uruguayan Senate, has fully backed her husband on the issue.
“Who is this fellow who likes to call names to countries?” she said of Yans. “I think he’s crossed the line, but anyhow I believe that he has had problems with other countries, Sweden, Denmark, Holland and they will be meeting him sometime in March.”
“But to be honest, marijuana is not the heart of life or earthly issues,” Topolansky added.
The law, which allows for a government-controlled marijuana market, was passed by the Uruguayan Senate on Monday.
According to the legislation, those wishing to smoke cannabis recreationally need to register with the authorities and limit their consumption to 40 grams per month.
President Mujica and his supporters argue that regulating marijuana consumption and production will remove profits from criminals and allow less money to be spent on soldiers and police, who are ultimately unable to prevent Uruguayan citizens from using the drug.
Mexico Opens Energy Industry to Foreign Investment
By Diego Cupolo | Upside Down World | December 13, 2013
In a historic move, Mexican congress members have voted to open the state-controlled energy sector to foreign investment for the first time in 75 years. On Thursday, President Enrique Peña Nieto applauded the legislation, which is poised to become the nation’s most significant economic reform since the North Atlantic Free Trade Agreement.
“The energy reform marks a fundamental transformation that will allow us to increase our energy sovereignty and self-sufficiency in Mexico,” Peña Nieto wrote on Twitter Thursday morning. “It will also drive productivity, economic growth and job creation in Mexico.”
The legislation will alter several articles of Mexico’s Constitution, allowing private multinationals to develop the country’s oil and natural gas resources for the first time since 1938, when former President Lazaro Cardenas nationalized the energy industry with the creation of Pemex, or Petróleos Mexicanos.
Though Mexico still owns its natural resources, foreign companies such as Exxon Mobil Corp. and Chevron Corp will be able to search, drill and open gasoline stations under contract with the Mexican state.
The end of the Pemex energy monopoly is expected to bring Mexico an additional $20 billion in foreign investment per year as multinationals race to tap vast deepwater oil reserves in the Gulf of Mexico. According to the U.S. Energy Information Administration, the region is the largest unexplored oil patch outside the Arctic Circle.
Yet in a country where local oil production has long been a source of national pride and is often equated with sovereignty, the reform has been heavily contested by opposition leaders from the Party of Democratic Revolution (PRD), who have said the measure should go before a national referendum.
“We warn all private, national and, above all, transnational businesses and companies that want to come and invest in Mexico and petroleum, in order to expropriate Mexican petroleum, to think again,” said Jesus Zambrano, president of the PRD. “The most probable outcome is that within a year and a half, a recall referendum will reject this change.”
On Thursday, PRD members blocked the entrances to the lower house’s main voting hall to prevent discussion of the bill. Antonio Garcia, a PRD lawmaker, even stripped down to his underwear during to symbolize a nation stripped of its wealth.
Regardless, members from the ruling Institutional Revolutionary Party (PRI) and the conservative National Action Party (PAN), met in an adjacent conference room where they passed the legislation with 353-134 vote. Peña Nieto is expected to sign the bill in February after it has been ratified by state legislatures.
Currently, Mexico is the 10th largest oil producer in the world and proponents of the reform say it could propel the nation into the top five by taking advantage of new extraction and deepwater exploration technologies that Pemex cannot afford.
After peaking in 2004, Mexico’s oil production has declined by 25 percent to 2.5 million barrels a day. During the same period, Pemex has more than doubled operational spending to $20 billion per year, gaining the company a reputation for inefficiency and corruption.
Still, Pemex revenues provide a third of Mexican government’s annual budget and the company’s 160,000 employees face an uncertain future as lawmakers finalize the reform details, which include the removal of all five representatives of Pemex’s worker’s union from the company board.
To put the PRI agenda in perspective, The Financial Times said “energy is the climax of a sweeping agenda of reforms, including telecoms, labor, tax and education, which Enrique Peña Nieto has championed in his first year as president.”
Sources:
El Pais: México cambia su historia energética a contrarreloj – http://internacional.elpais.com/internacional/2013/12/12/actualidad/1386888542_011957.html
Bloomberg: Mexico Passes Oil Bill Seen Luring $20 Billion a Year – http://www.bloomberg.com/news/2013-12-12/mexico-lower-house-passes-oil-overhaul-to-break-state-monopoly.html
New York Times: Mexico’s Pride, Oil, May Be Opened to Outsiders – http://www.nytimes.com/2013/12/13/world/americas/mexico-oil.html?hpw&rref=business
Financial Times: Mexico courts foreign investment with energy reform – http://www.ft.com/intl/cms/s/0/e2242e2c-632e-11e3-886f-00144feabdc0.html#axzz2nIk7FhZe
Wall Street Journal: Mexico Congress Passes Historic Energy Bill – http://online.wsj.com/news/articles/SB10001424052702303932504579254013051981266
Reuters: Mexican Congress passes radical shake-up of oil industry – http://ca.reuters.com/article/businessNews/idCABRE9BB16820131212
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Mexico: Fight Over “Energy Reform” Heats Up
Weekly News Update on the Americas | December 8, 2013
As of Dec. 8 the Mexican Senate was set to begin debates on President Enrique Peña Nieto’s plan for opening up the state-owned oil and electric companies, Petróleos Mexicanos (Pemex) and the Federal Energy Commission (CFE), to greater participation by foreign and Mexican private companies. Supporters say the “energy reform” will bring needed capital investment and technical expertise to the energy sector, while opponents consider it a disguised plan for privatization, especially of oil production, which President Lázaro Cárdenas del Río (1934-1940) nationalized in 1938.
The legislative proposal–worked out by the governing centrist Institutional Revolutionary Party (PRI) and the center-right National Action Party (PAN), which together hold a majority in the Congress—includes changes to Articles 27 and 28 of the Constitution. Article 27 asserts state control over oil, gas and coal and bans the granting of concessions; the proposal would add a qualification that private companies could share in profits, could be paid in cash or barrels of oil and could count their share of oil reserves as assets. Article 28 would no longer define the refining of oil and the generation of electricity as strategic activities. According to opponents, the changes to Article 27 would create de facto concessions and the changes to Article 28 would allow private companies to compete with Pemex and the CFE. Opposition in the Senate is being led by Sen. Alejandro Encinas of the center-left Party of the Democratic Revolution (PRD) and Sen. Manuel Bartlett of the small leftist Labor Party (PT). (La Jornada (Mexico) 12/8/13)
Since the beginning of December protesters have organized daily picket lines outside the Senate and the Chamber of Deputies to express their opposition to the “reform.” The National Regeneration Movement (Morena), a new center-left party which broke away from the PRD in 2012, is sponsoring the street protests, with support from PRD and PT activists and grassroots groups. The movement suffered a setback in the early morning of Dec. 3 when Morena founder Andrés Manuel López Obrador (“AMLO”) was hospitalized with a heart attack and underwent surgery. A two-time presidential candidate and the head of government of the Federal District (DF, Mexico City) from 2000 to 2005, López Obrador was released from the hospital on Dec. 7; his doctors said the patient’s progress was satisfactory but told him to rest at home for four weeks. His son, Andrés Manuel López Beltrán, and Morena president Martí Batres are now leading the protests. (LJ 12/8/13, 12/8/13)
The Congress has nearly completed approval of another set of sweeping constitutional changes. On Dec. 3 the Senate passed a measure that would allow reelection of federal legislators for up to 12 years; currently they cannot stand for reelection after one term–six years for senators and three years for legislative deputies. Presidents would still be limited to one six-year term. The changes would also allow independent candidates to run; now candidates need to be nominated by registered political parties. The measure passed the Chamber of Deputies on Dec. 5 with support from the PRI, the PAN and part of the PRD, but the legislation was returned to the Senate to iron out differences between the versions from the two chambers. The PAN has insisted on the electoral changes as a condition for its support of Peña Nieto’s energy program. (Miami Herald 12/4/13 from AP; LJ 12/6/13)
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.





