Skip to main content


Showing posts from October, 2007

Why Are People Worried About Constitutional Reforms in Venezuela?

(Oct. 30, 2007) Are the constitutional reforms to be voted on in December a threat to Venezuela's democracy, and if so, what implications does this have for the region?

In a strong statement denouncing the proposed constitutional reforms a number of influential academic and social academies have recently spoken out against President Hugo Chávez's proposed constitutional reforms calling them illegitimate and undemocratic. The controversy centers on two fronts, the institutional process and the proposed reform to presidential term limits.

The issue of institutional process revolves around the 2005 national assembly elections in which government opposition parties refused to participate in what they called unfair elections. The opposition said that it did not believe the national electoral council (CNE) could offer the necessary guarantees to ensure free and fair voting. Their refusal to participate effectively handed total control to the president and his allied political parties …

Banco del Sur Postpones Signing Until December

Venezuelan Foreign Affairs Minister, Nicolás Maduro, announced that the Nov. 3 meeting of the Banco del Sur will be postponed until Dec. 5th. Brazil, Bolivia, Colombia, Ecuador, Paraguay, Uruguay and Venezuela were supposed to have met next week to sign on as members of the new regional bank. No reasons were given for the postponement.

The Banco del Sur was launched on Feb. 21, 2007 as a bilateral agreement between Venezuela and Argentina, with the hopes that other South American nations would soon join on. The support of the six countries is expected to inject much needed capital into the project. According to El Comercio Ecuador, the bank will have a startup capital of US$7 billion dollars to be used principally for regional development projects.

English-language news sites often refer to the bank as a populist initiative of Venezuelan President Hugo Chávez, implying that it is not a serious project. While it is true that the bank seeks to replace Washington-based lending agencies lik…


This week Brazil announced it is seeking approval to explore for new oil and gas reserves near the Jurua River in the Amazonian state of Acre. The government will set aside US$35.5 million for the National Petroleum Agency (ANP) to begin exploration, while the Acre State Industrial Federation has promised to raise US$15 million. Officials cited the economic benefits the project will bring to a neglected part of the country but raised concerns among local and international environmental groups who worry that the exploration will damage sensitive ecosystems. Commenting on the proposed project, Environmental Ministry Executive Secretary, Joao Paulo Capobianco, is reported as saying, "It's necessary to examine how this will be done, on what scale and in what areas. In theory, there are methodologies and technologies that allow this activity without environmental damage." For his part, Acre Congressman Marcelo Serafim said that, "development brings damage, it destroyed t…


Ecuador's President Rafael Correa is full of good ideas this week. On his visit to Italy this week he is reported to have proposed that the UN publish a list of environmental terrorists whose reckless actions are putting the world in danger. He also agreed to let the US maintain its military base in Manta, if the US is willing to allow Ecuador to build a base inside the US. If sovereignty isn't the issue, he asks, what's the problem?

The two statements simultaneously show off his environmental credentials while sticking it to Uncle Sam at the same time. Correa is on tour winning the hearts and minds of Europe by taking communion and criticizing the US. What better combination?

It would all the more meaningful if Correa would ask for a list of the environmental terrorists whose reckless actions are putting Ecuador at risk or look at how his own actions are destabilizing Ecuador's economy, scaring off much needed foreign investment.

On the environmental front, Ecuador'…


Brazilian President Luiz Inácio Lula da Silva proposed the creation of a trilateral free trade agreement (FTA) between India, South Africa, and the nations of Mercosur at a reunion in Pretoria, South Africa on Wednesday Oct.17th.

The proposed treaty would create the world's largest free trade area and has been billed as a way to reduce these countries' dependence on developed nations. It would also create a strong political and economic block that would use its influence to push for greater UN reforms and more concessions from developed countries in international economic forums like the World Trade Organization (WTO).

The announcement came as a surprise in South America where several regional FTAs are currently dying of neglect. Mercosur itself has been unable to agree on common trade issues within its own borders or with its proverbial neighbor the Andean Community (CAN) next door. A total free trade area between CAN and Mercosur was supposed to have occurred by 2002, tops, bu…


Valparaiso, Oct. 16 - Environmentalists and politicians met Tuesday in Valparaiso to discuss the creation of the world's largest whale sanctuary. Representatives from 15 non-governmental organizations across Latin America presented the project to Chile's Senate Environmental Commission with the hopes of receiving governmental approval before the upcoming 60th annual meeting of the International Whaling Commission (IWC) in Santiago on the 27th and 28th of June 2008.

"The goal of these meetings is to strengthen the determination of Latin America's civic organizations to seek out solutions to the environmental threats whales face," said Diego Taboada, director of the Whale Conservation Institute of Argentina, one of the sponsors of the event.

The Commission seemed supportive of the project but asked representatives to propose concrete steps for Congress to take to move forward with the plan.

Beatriz Bugeda, director of the International Fund for Animal Welfare in Latin…


The presidents of Colombia, Venezuela, and Ecuador announced Friday Oct. 12th that new Ballenas-Maraciabo international pipeline will be extended across Colombia to create the first transoceanic pipeline on the continent. Speaking at the inauguration Friday, President Chavez said that plans were ready to connect the pipeline with Central America and the Andean countries of Ecuador, Peru, and Bolivia. The announcement names the city of Popayán in southwestern Colombia as the pipeline's next destination where it will then be extended south to the Ecuadorian border city of Tulcán, in the highlands of Ecuador's central valley. President Chavez also announced plans to connect the pipeline with Panama and from there head north into Central America, expanding the Union of South American Nation's (Unasur) plans to create a regional energy grid to supply the continents increasing energy needs. Energy shortages are already affecting the southern cone where natural gas shortages in…


The environmental cost of increased infrastructure integration in South America was the topic of debate at the First Latin American Congress of National Parks and Other Protected Areas this week in Bariloche, Argentina. Scientists from around the world met to discuss the effects of the proposed Initiative for the Integration of the Regional Infrastructure of South America (IIRSA), the new vehicle for improving physical connections between nations of South America.

Tim Killeen, a senior scientist at Conservation International, presented a paper at the meeting entitled "A Perfect Storm in the Amazon Wilderness: Development and Conservation in the Context of IIRSA." According to Killeen, "Failure to foresee the full impact of IIRSA investments, particularly in the context of climate change and global markets, could lead to a perfect storm of environmental destruction. At stake are the greatest tropical wilderness area on the planet and the multiple benefits it provides.&quo…


Ecuadorian President Rafael Correa was invited by Colombia and Venezuela to attend an upcoming meeting between their two presidents, Alvaro Uribe and Hugo Chavez to celebrate the opening of the new gas pipeline in the Colombian District of LaGuajira that connects the city of Ballenas with the Venezuelan city of Maracaibo.

The Colombian Foreign Minister Fernando Araújo gave an interview on Caracol Radio in Bogota where he said that "some think that this pipeline could be the seed for the construction of a second pipeline that would connect with Ecuador and, possibly, it could be extended to Peru and Bolivia in line with the greater energy integration that Venezuela has been promoting for some time."

The new pipeline to be opened on Friday Oct. 12 is 177 km (110 miles) and cost more than US$150 million to build. The proposed pipeline to Ecuador would require at least 12,00 km (800 miles) of pipeline to be constructed in a sensitive rain forest environment with the danger of guer…

South America Announces New Banco del Sur

Brazil and Ecuador gave a combined press conference today announcing their intentions of joining the Banco del Sur, a new regional financial institution created by Venezuelan President Hugo Chavez on Feb. 21, 2007 to replace institutions like the IMF and World Bank.

The announcements come one week before a Brazilian sponsored summit in Rio de Janeiro where representatives from Venezuela, Ecuador, Bolivia, Uruguay, Brasil, Paraguay, Argentina and Chile as an observer.

Amorim announced at the press conference that he was "pretty sure, because of conversations I have had recently, that we are going to reach an agreement" and that at the Foreign Ministers reunion in Rio we can expect "a foundational agreement that will decide statutes at a later date."

So far only Venezuela, Argentina, Bolivia, Brazil, Ecuador, and Paraguay have announced their intention of joining the Bank which means that all eyes will be on Uruguay and Chile to see what their reaction to Monday's m…


On Oct.4 Brazil's Foreign Minister Celso Amorim arrived in Ecuador to discuss potential areas of mutual interest with President Rafael Correa. The visit followed last Sunday's national assembly elections that gave President Correa sweeping powers move forward his new socialist platform designed to reduce economic inequality and exploitation in Ecuador.

The visit was also a chance for the minister to talk with Correa about his announcement that Ecuador will now collect 99 percent of price windfalls on Ecuadorean oil, up from the 50 percent previously collected. Although Brazilian President Lula da Silva's Worker's Party is sympathetic to the current situation in Ecuador, the announcement imposes new extra-contractual conditions on Brazil's national petroleum company Petrobras, one of the largest producers in Ecuador and undermines the perceived rule of law in Ecuador.

A third reason for Amorim visit last week was to meet with Rodrigo Borja, former president of Ecuador…


Ecuadorian President Rafael Correa's party appears to have won a sweeping victory in the new constitutional assembly on Sept. 30th giving his party, Acuerdo País (AP), broad powers to transform the nation's legal system. According to unofficial exit polls the AP won 87.5 percent of the vote, with former President Lucio Gutierrez's Sociedad Patriotica coming in second with 18.9 percent of the vote.

"We are open to dialogue and a national agreement to build a 21st century Ecuador, not a 19th century Ecuador where oligarchic multimillionaires don't pay taxes," said Gustavo Larrea, spokesman for the government.

However many fear that the assembly will remove existing political checks on the executive branch by dismissing the national congress. In what may be a sign of things to come, Correa invoked the famous Argentinean protest chant of "out with them all" when speaking to a crowd of supporters Sunday night.

The Constitutional Assembly has sparked bitter …

Academic Research Links on Latin American Regional Integration