New address: www.latampolitics.com » politics of Latin America

Peru: García maintains political agenda

thiagoaragao — Thu, 14 Aug 2008 11:52:08 +0000

As he celebrated his second anniversary in office, Peru’s president Alan García promised better income distribution and a fight against inflation. He highlighted his economic achievements, but would not comment on social conflicts and human rights.

With approval rates below 30%, he believes that such discontent is related to an increase in the cost of living. Over the past 12 months, inflation has risen by 7%. The main factors behind it include higher food and fuel prices in the global market. As he assessed the current scenario, García focused on favourable economic figures, hinting that he does not intend to shift his agenda.

Even faced with pressure to reduce people’s dissatisfaction, the Peruvian president promised to ’severely control price increases as well as public expenses’. In spite of an adverse global scenario, he signalled that international reserves have now reached $35 billion. García also emphasized that risk assessment agencies have awarded the nation investment grade due to responsible management of the economy.

He acknowledged problems in healthcare, agriculture and security, but presented no social proposals – just promises. He said that poverty will have seen a 30% drop by the end of his term in 2011.

At least in the short run, García will maintain an orthodox economic policy, even if it causes him political damage. Within the government, there is fear that shifting the agenda will not be highly welcomed in the international community and might cause the country to lose the credibility it has earned. In view of this scenario, issues such as state reform will have secondary priority.

Bolivia: PDVSA to explore oil blocks

thiagoaragao — Thu, 14 Aug 2008 11:50:15 +0000

In partnership with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), Petróleos de Venezuela S.A. (PDVSA) has confirmed that it will explore 12 oil blocks to check on the existence of hydrocarbons. US$ 887 million will be invested.

In case of positive findings, Bolivia will be capable of increasing its natural gas reserves. It is currently estimated that the country has 48.7 trillion cubic feet of natural gas. However, most of it is exported to Brazil and Argentina. Drilling teams are working in the town of Patamaya.

Increasing natural gas reserves is paramount for the nation to secure domestic supply. Ever since the hydrocarbon industry was nationalized, investment dropped because of legal insecurity.

Venezuela: Supreme Court rejects RCTV appeal

thiagoaragao — Thu, 14 Aug 2008 11:46:10 +0000

For the third time, the Supreme Court has overruled the writ of prevention filed by Radio Caracas Televisión (RCTV) to resume open-air broadcast. It was interrupted on 27 May 2007 after Hugo Chávez refused to renew the broadcast licence. Nowadays, programming is offered on cable.

Chávez made the decision based on the argument that RCTV opposed his government. It came as part of a set of measures aimed at extending his grip on power, but which culminated with his defeat in a vote on constitution reform in late 2007. As the network had high audience rates, the episode represented the beginning of a drop in Chávez’s approval rates.

It was the result of a miscalculation on the part of the government. As they controlled the political system and the means of communication, Chávez and his supporters underestimated the ability of public opinion to articulate and change sides. The attempt to enforce profound reforms without a more consistent debate resulted in a split between Chávez’s supporters and opponents.