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runlai_jiang

Antiguan ex-president of UN general assembly faces $1m corruption charges | World news ... - 0 views

  • Antiguan ex-president of UN general assembly faces $1m corruption charges
  • A former president of the United Nations general assembly turned the world body into a “platform for profit” by accepting over $1m in bribes and a trip to New Orleans from a billionaire Chinese real estate mogul and other businesspeople to pave the way for lucrative investments, a prosecutor charged on Tuesday
  • John Ashe, a former UN ambassador from Antigua and Barbuda who served in the largely ceremonial post from September 2013 to September 2014, faces conspiracy- and bribery-related charges along with five others, including Francis Lorenzo, a deputy UN ambassador from the Dominican Republic who lives in the Bronx.
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  • Dujarric said Ban was “shocked and deeply troubled” by the allegations that “go to the heart and integrity of the UN”.
  • Corruption is not business as usual at the UN.
  • Those charged in the criminal complaint unsealed on Tuesday in Manhattan federal court included Seng, who was arrested two weeks ago along with his chief assistant, Jeff C Yin, 29, a US citizen whose bail was revoked last week over allegations that he lied to investigators after his arrest.
  • Other money, they said, was used to lease a luxury car, pay his home mortgage, buy Rolex watches and custom suits, and construct a $30,000 basketball court at his home in Dobbs Ferry, New York, where he was arrested on Tuesday. He opened two bank accounts to receive the funds and then underreported his income by more than $1.2m, officials said.
  • Prosecutors said two other arrested individuals were involved with Ng. They were identified as Sheri Yan, 57, and Heidi Park, 52, both naturalized US citizens who reside in China and helped facilitate the scheme, prosecutors said.
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    The Antiguan ex-president of UN general assembly, John Ashe accepted bribe from a chinese real estate buisness man and other businesspeople and was asked to benefit them for paving the way for lucrative investments. The president was charged. UN is not a usual corruption place and Antigua and Barbuda should rethink  its democracy system because our representative was even bribing.
lenaurick

This Caribbean island makes 25% of its money selling visas - Nov. 6, 2015 - 0 views

  • For the starting price of just $200,000 you can buy citizenship in the Caribbean nation of Antigua and Barbuda.
  • Antigua launched its "citizenship by investment program" in 2013, and it has proved so popular that it now accounts for about 25% of government revenue. Some 500 people have already bought their way into the country of just 90,000, according to local media reports.
  • Antigua says it is using its windfall to help revive the nation's flagging tourism industry, and to invest in health care and education.
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  • "[These] revenues are inherently volatile, and carry risks of a sudden stop," the IMF wrote in October. "[They] should not be used to fund recurrent government expenditure but rather to clear arrears, pay down debt, build buffers, and fund key strategic infrastructure projects."
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    This article talked about a fairly new way that Antigua and Barbuda was using tourism to their advantage. The nation is now selling citizenship for 200,000 to invest in health care and education. While this seems relatively positive the IMF believes that they should be used in different ways, and that they are "inherently volatile". However it was interesting to me that the selling of citizenships now accounts for 25% of government revenue. This article helped me to understand the economy of Antigua and Barbuda, and showed a positive way that they were using their tourism.
bennetttony

US Congress Seeks to Expose Corruption in Nicaragua | The DC Dispatches | Law, Policy, ... - 0 views

  • On September 21, the House of Representatives approved passage H.R. 5708, the Nicaraguan Investment Conditionality Act (NICA) of 2017 that, if it becomes law, will prohibit loans by international financial institutions (“IFIs”) to the government of Nicaragua unless Nicaragua takes steps to ensure free, fair, and transparent elections as well as strengthen the rule of law.
  • The left-wing Sandinista government is economic and political disaster. Nicaraguan autocrat, Daniel Ortega, and his power-obsessed wife Rosario Murillo, are running for president and vice president in the upcoming November elections. Unless the opposition unites, quickly, the power hungry Ortegas may pull it off. The road to this point is paved with enough human rights abuses and corruption to keep tribunals and courts busy for years.
  • The Nicaraguan people seem to be reaching their limit. When Ortegas sacked the opposition party leadership a few months ago in the mostly puppet Congress, it seems to have lit a spark within the opposition as well as within his own Sandinista party.
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  • In addition to the domestic problems, Nicaragua, a staunch ally of Communist Cuba and Venezuela, is causing regional tensions to rise.
  • Corrupt officials, for example, should be denied U.S. visas to visit the United States, something that should extend to immediate family members
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    This article talks about measures that the US is taking to help combat the corruption in Nicaragua (even though the US isn't doing too much).
Javier E

Brazil, Fortune and Fate Turn on Billionaire - NYTimes.com - 0 views

  • After years of economic expansion, the South American nation has begun to sputter. Inflation has become a major concern. Brazil’s stock market index has declined about 23 percent this year, the most of any large country. This month, Standard & Poor’s cut its outlook on Brazil’s credit rating to negative, citing slowing growth and weakening finances.
  • Mr. Batista’s conglomerate, as an emblem of the nation’s industrial mettle, ranked among the government priorities now being questioned, receiving more than $4 billion in loans and investments from the national development bank.
  • authorities channeled huge resources of the state to projects controlled by tycoons.
jackhanson1

Construction of Nicaragua Canal Threatens Indigenous Lives and Livelihoods | Cultural S... - 0 views

  • Construction of Nicaragua Canal Threatens Indigenous Lives and Livelihoods
  • In June 2013, Nicaraguan officials approved a $50 billion (US) deal with a Hong Kong firm to oversee the construction of a 278-kilometer long canal. The HK Nicaragua Canal Development Investment Company’s proposed project would attempt to link the Pacific to the Caribbean, allowing the passage of container ships
too large for passage through the Panama Canal.
  • The construction of the canal promises environmental abuses and human rights violations as the proposed route cuts through the land of multiple Indigenous territories on Nicara- gua’s coasts and within its mainland. Thousands of people are expected to be impacted with many being forcibly displaced, primarily including the Kriol and Indigenous Rama people,
in a clear violation of Indigenous autonomy laws in Nicaragua and international human rights documents.
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  • The Nicaraguan Government has failed to properly consult Indigenous communities regarding the canal’s construction.
  • The Nicaraguan Constitution of 1987 recognizes the Indigenous cultures that reside on the land and their right to maintain their languages and cultures. Two additional laws, 28 and 445, grant autonomy and “the use, administration and management of traditional lands and their natural resources” to Indigenous people. Additionally, Nicaragua signed on to the UN Declaration on the Rights of Indigenous People in 2008 and ratified ILO Convention 169 in 2010, a legally bind- ing document guaranteeing prior consultation before such projects.
  • The government is reportedly anticipating that 7,000 homes may be expropriated to make way for the 278-kilometer canal. However, an independent report by the Centro Humboldt states that the impact will be much greater. The report found that 282 settlements and 24,100 homes were identified within the direct area of influence, estimating that the number of people anticipated to be directly affected by construction at over 119,000. The canal’s construction will not only bring the displacement of hundreds of thousands of people, but also irreversible environmental damage. The loss of Indigenous communities will be accompanied by the loss of some of Nicaragua’s most precious and rich resources: its ecologically diverse lands and waters.
  • Meanwhile, the social impact assessment conducted by the Nicaraguan government, if being conducted at all, has lacked any transparency. While quick to boast the economic impact of the canal, officials have blatantly disregarded the needs and fears of community members from coast to coast. A coalition of 11 groups including affected In- digenous communities and environmental and legal organiza- tions submitted a petition to the Inter-American Commission on Human Rights criticizing the rights violations inherent in the Canal Law.
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    This article relates to my topic of promoting intercultural dialogue and inclusion because this article deals with the absence of communication and dialogue between the government of Nicaragua and the indigenous groups of Nicaragua. This article talks about a proposed plan to build a canal across the largest lake in Nicaragua, Lago Nicaragua. Without consulting the indigenous groups living around the lake, the government went ahead and approved the construction of the canal. Thousands of indigenous homes will be wiped out due to the construction of the canal. These indigenous groups have petitioned the government to come up with a different plan for constructing the canal, but the government refused to grant their requests. As a result, many indigenous villages will be wiped out and many people will have to relocate and start again.
bennetttony

United States Could Sanction Nicaraguan Government over Authoritarian Turn - 0 views

  • A new bill in the United States’ Congress aims to to sanction Daniel Ortega for his many crimes and recent dictatorial behavior.
  • She referred to the refusal of the Nicaraguan government to accept oversight by international and national observers.
  • The Nicaraguan Investment Conditionality Act she presented reportedly aims to adopt sanctions against the Nicaraguan government for its most recent behavior.
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    This talks about how a bill in the US Congress is trying to sanction Daniel Ortega and how the Nicaraguan government is not accepting oversight by international observers.
bennetttony

Nicaragua Corruption Report - 0 views

  • Courts are prone to corruption and manipulation by organised crime groups, drug cartels and a democratic socialist political party, the Sandinista National Liberation Front (FSLN), which allegedly accepts bribes from drug traffickers for campaign financing in return for judicial favours (InSightCrime, July 2014).
  • Rampant corruption within Nicaragua's political circles impairs the functioning of state institutions and limits foreign investment. International companies report widespread favouritism and impunity among public officials.
  • Courts are prone to corruption and manipulation by organised crime groups, drug cartels and a democratic socialist political party, the Sandinista National Liberation Front (FSLN), which allegedly accepts bribes from drug traffickers for campaign financing in return for judicial favours (InSightCrime, July 2014).
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  • Nicaragua's legal system is plagued by corruption and is burdensome.
  • Nicaragua's police are corrupt and enjoy impunity. Prosecution and criminal sanctions against police officers in corruption cases are delayed due to bribery, ineffectiveness and an opaque justice system (HRR 2013)
  • Foreign companies encounter red tape and corruption when dealing with Nicaragua's public services administration.
  • Foreign companies experience discriminatory and arbitrary treatment and extortion in meetings with tax officials in Nicaragua. Tax audits of foreign firms are reported to be frequent and lengthy, which often hinders normal business operations and increases corruption risks and business costs (ICS 2014).
  • The overall implementation and enforcement of Nicaragua's anti-corruption legislation is weak, and the level of compliance with the law is poor among Nicaragua's public officials.
  • The Constitution of Nicaragua provides for freedom of the press, but the government restricts and controls all information available to the public.
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    This article outlines the corruption in the Nicaraguan government. This is an important to hemispheric security because it is an issue that needs to be addressed.
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    This article highlights the corruption going on in Nicaragua in many different areas like legislation, civil society, police, etc.
anonymous

Gov't admits conflict of interest with CIP Committee of Inquiry appointee - 0 views

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    The government said it will be revoking the appointment of an attorney who sits on a Committee of Inquiry which was set up to investigate a client of its Citizenship by Investment Programme (CIP). Lihua Tian's passport was revoked after it was discovered that she allegedly withheld information about being wanted in her home country, China.
rachelramirez

Ortega vs. the Contras: Nicaragua Endures an '80s Revival - The New York Times - 0 views

  • Ortega vs. the Contras: Nicaragua Endures an ’80s Revival
  • Tyson and his men are contras — yes, like the ones from the 1980s who received stealth funding during the Reagan administration to topple Mr. Ortega’s leftist Sandinista government.
  • That war ended more than 25 years ago, when Mr. Ortega lost at the polls. But since being re-elected in 2006, Mr. Ortega has come to rule over this Central American nation in sweeping fashion.
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  • They control fuel companies, television stations and public construction projects, which has many critics comparing his family to the right-wing Somoza dynasty that Mr. Ortega helped topple in 1979.
  • They complain they are broke and say the reason they are not more successful is that they do not have international aid, as they did during the Reagan administration.
  • Though Mr. Ortega enjoys strong support among the poor, he was widely criticized for constitutional changes that repealed term limits, allowing him to run this year for a third consecutive term.
  • The government denies that politically motivated rebels in the country still exist, despite occasional attacks on police stations and the killings of Sandinistas and known contras
  • “It is a silent, dirty war that is not recognized,” said Bishop Abelardo Mata, a Roman Catholic leader who has served as something of a mediator between the two sides.
  • Venezuela has provided Nicaragua with hundreds of millions of dollars’ worth of oil a year on preferential terms, and the government acknowledges that much of it is invested in private companies closely tied to the Ortega family and its allies.
  • “The Ortega-Murillo family is getting richer while the country people starve,” a rebel who calls himself Commander Rafael said about the president and his wife, Rosario Murillo
  • He said the Ortega administration must be doing something right. In January, the World Bank projected Nicaragua’s economy to grow by 4.2 percent in 2016, one of the highest rates in Latin America.
  • It is no wonder: 38 percent of the Venezuelan oil is used to fund social projects. More than 35,000 houses have been distributed among the poor in the past two years, according to a government website. World Bank statistics show that the poverty level dropped six percentage points from 2005 to 2009.
  • “He might have an expensive car, but the other presidents before him had their luxuries but did not help the people,” Veronica Aguilar, 55, said of Mr. Ortega.
  • The rebels are not buying it. In a sign of the new allegiance the socialist administration has to the country’s richest people, the government has lifted import taxes for luxury items like yachts and helicopters.
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    This article highlights some of the positive change the Ortega family has brought to Nicaragua, despite being flooded with reports of corruption, but it shows how divided the country is. There are contras roaming the country, and have been doing so for 25 years, who refuse to step down, and now finance their resistance by working with cartels within Nicaragua. It seems as though chaos has decided to run through Nicaragua. Additionally, we are able to see that under the current president poverty has decreased and new millionaires have increased. It seems as though a few people have a high concentration of the money in Nicaragua.
rachelramirez

The fiasco that is the Nicaragua Canal, explained - Vox - 0 views

  • The fiasco that is the Nicaragua Canal, explained
  • The idea, at least, is that a bigger Nicaragua canal could accommodate the next generation of super-sized container ships that can’t squeeze through Panama’s locks. Nicaragua’s leaders have also promised the project could double GDP in one of Central America’s poorest countries.
  • The consortium in charge — the Hong Kong Nicaragua Canal Development Group (HKND), led by Beijing-based telecom billionaire Wang Jing — has little experience with these sorts of projects and was awarded the contract in a secret deal with Nicaragua's Sandinista government.
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  • In its description, HKND says it will need more than 2,000 pieces of major construction equipment, four billion liters of diesel fuel, one billion liters of bunker fuel for the dredgers, 400,000 tons of explosives, and untold millions of tons of cement and steel. The company would have to import all of this stuff into Nicaragua and build entirely new ports and roads wide enough to fit the big equipment.
  • On that, Miranda was much more skeptical the canal could be built in five years for a cost of $50 billion.
  • The section of the proposed canal that stretches through Lake Nicaragua would pass by Ometepe Island, home to an active volcano, Concepción, that spews out ash every now and again.
  • Right now, ships that want to pass between the Pacific and the Atlantic use the Panama Canal, which is currently undergoing a major $5.25 billion expansion
  • The rationale behind the Nicaragua Canal, HKND insists, is that it will be able to accommodate the next generation of super-sized container ships that can hold nearly 23,000 containers at a time.
  •  One company that operates super-sized ships, Maersk, told CNBC that the canal was "not something we have a demand for, and we're not able, at this point, to tell whether we will use it."*
  • Jorge Huete-Pérez, a vice president of Nicaragua’s academy of sciences, told me that Lake Nicaragua is a national icon — a source of fisheries and tourism, but also a key freshwater reservoir for much of the nation.
  • Other biologists have pointed out that the canal’s route will slice through a variety of nature reserves that are homes to some 22 species vulnerable to extinction, from tapirs to jaguars to turtles.
  • One internal assessment obtained by Scientific American said that HKND’s process for acquiring land for preliminary access roads "did not meet international standards."
  •  The Sandinista government still promises that the project will create thousands of jobs and promote billions in investment, but skepticism is growing.
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    Nicaragua's economy appears to be desperate for growth, so desperate that the government is taking the canal into serious consideration. Although the canal seems as though it would be beneficial, in the long run there would be serious environmental consequences. The issue that seems to be subtly highlighted in this article about Nicaragua is their need for more jobs, international recognition and relevance. Although the canal seems to be the solution to the issues of job creation, and international recognition, the canal is a far cry from the most effective solution for this country at this time.
Javier E

Latin Lovers' Quarrel - By James Traub | Foreign Policy - 0 views

  • the big news out of Cartagena -- outside of the Secret Service wing of the Hotel Caribe, that is -- was the united front that Latin American countries put up against the United States on several big issues.
  • whether Cuba should be admitted to the next summit, in 2015, which the United States and Canada opposed and all 30 Latin American countries, both left-wing bastions like Ecuador and traditional U.S. allies like Colombia, favored, thus bringing the meeting to an end without a planned joint declaration
  • The idea of an "American camp" in Latin America has been an anachronism for some while, but this became glaringly clear in Cartagena. "We need them more than they need us," as Christopher Sabatini, senior director of policy at the Americas Society, puts it. The United States remains the region's largest trading partner, the source of 40 percent of its foreign investment and 90 percent of its remittances. U.S. foreign aid still props up shaky countries like Colombia and Guatemala. But trade with both China and Europe has grown sharply over the last decade. And both big economies like Brazil and Argentina, and smaller ones like Chile and Peru, have experienced solid growth at a time when the United States has faltered. "Most countries of the region view the United States as less and less relevant to their needs,"
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  • The big issues that divide the United States (and let's not forget, Canada) from its Latin American allies are Cuba, drugs, and immigration. On a trip to Latin America last year, in fact, Obama promised Salvadoran President Mauricio Funes that he would push immigration reform through Congress -- an effort he later abandoned. But for all their recent maturation, Latin American countries are affected by U.S. domestic issues in a way that no other region could be. Latin America therefore suffers from the paralysis of U.S. domestic politics as Europe or Asia does not.
  • even Washington's closest allies in the region have lost patience with U.S. politics
  • This year, Guatemalan President Otto Pérez Molina, a former general elected as a hard-liner, dramatically reversed course and spoke up in favor of drug legalization. This earned him extraordinary visits from both U.S. Vice President Joe Biden and Homeland Security Secretary Janet Napolitano. According to Eduardo Stein, the former vice president of Guatemala, Biden said that the United States was eager to discuss drug reform, just not at the summit, while Napolitano reportedly plainly said, "Don't think of raising the issue at the summit." Pérez then went ahead and called a meeting of regional leaders, who could not agree on an alternative set of policies but decided to raise the issue in Cartagena. Pérez later said that drug policy was the only issue discussed at the summit's final closed-door session.
Javier E

The Most Important Alliance You've Never Heard Of - Moisés Naím - The Atlantic - 0 views

  • the presidents of Chile, Colombia, Mexico, and Peru met with little fanfare in Cartagena last week to seal an economic pact launched in 2012. They call their project the Pacific Alliance, and it will soon include Costa Rica
  • The four founding members are the most successful economies in Latin America; they boast the region's highest economic-growth rates and lowest inflation rates. Together, they represent 36 percent of the region's economy, 50 percent of its international trade, and 41 percent of all incoming foreign investment. If the Alliance were a country, it would be the world's eighth-largest economy and seventh-largest exporter. Its members lead the lists of the most competitive economies in Latin America and those where it’s easiest to do business.
  • the Pacific Alliance has already yielded more results in its 20 months of existence than similar initiatives that have been around for decades. The four countries have eliminated 92 percent of all import tariffs among them. Chile, Colombia, and Peru have linked their stock markets so that a company listed in one of the exchanges can be traded in the other two. Mexico is expected to follow suit this year, meaning this integrated stock market will rival that of Brazil as the largest in Latin America. The four countries have eliminated the need for business and tourist visas for visiting nationals of bloc members. In a break with tradition, the joint communiqués of Alliance presidents tend to be brief and concrete in terms of goals, timelines, and roadmaps.
Javier E

For Migrants, New Land of Opportunity Is Mexico - NYTimes.com - 0 views

  • it is already cheaper than China for many industries serving the American market.
  • while Mexico’s economy is far from trouble free, its growth easily outpaced the giants of the hemisphere — the United States, Canada and Brazil — in 2011 and 2012, according to International Monetary Fund data, making the country more attractive to fortune seekers worldwide.
  • residency requests had grown by 10 percent since November, when a new law meant to streamline the process took effect. And they are coming from nearly everywhere.
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  • Spanish filmmakers, Japanese automotive executives and entrepreneurs from the United States and Latin America arrive practically daily — pursuing dreams, living well and frequently succeeding.
  • “There is this energy here, this feeling that anything can happen,” said Lesley Téllez, a Californian whose three-year-old business running culinary tours served hundreds of clients here last year. “It’s hard to find that in the U.S.”
  • more Americans have been added to the population of Mexico over the past few years than Mexicans have been added to the population of the United States, according to government data in both nations.
  • If the country of 112 million people can harness the energy of foreigners and newly educated Mexicans, become partners with the slew of American firms seeking alternatives to China, and get them to do more than just hire cheap labor, economists and officials say Mexico could finally become a more equal partner for the United States and the first-world country its presidents have promised for decades.
  • “There’s been an opening to the world in every way — culturally, socially and economically.”
  • global trends have been breaking Mexico’s way — or as President Enrique Peña Nieto often puts it, “the stars are aligning” — but there are plenty of obstacles threatening to scuttle Mexico’s moment.
  • The challenge, he said, is making sure that the growing interest in his country benefits all Mexicans, not just newcomers, investors and a privileged few.
  • Mexico has failed to live up to its economic potential before. “They really blew a moment in 1994 when their currency was at rock bottom and they’d just signed Nafta,”
  • The number of Americans legally living and working in Mexico grew to more than 70,000 in 2012 from 60,000 in 2009, a number that does not include many students and retirees, those on tourist visas or the roughly 350,000 American children who have arrived since 2005 with their Mexican parents. For DiscussionWhy did you decide to move to Mexico?Please share your story in the comments below.
  • closer ties with Mexico’s beloved and hated neighbor to the north, through immigration and trade, have made many Mexicans feel less insular. Millions of emigrants send money earned abroad to relatives in Mexico, who then rush out to Costco for more affordable food and electronics.
  • “Europe feels spiritually dead and so does the United States,” Mr. Quemada-Díez said. “You end up wanting something else.”
  • it was not a country that welcomed outsiders; the Constitution even prohibited non-Mexicans from directly owning land within 31 miles of the coast and 62 miles of the nation’s borders.
  • Some of the growth is appearing in border towns where foreign companies and binational families are common. American retirees are showing up in new developments from San Miguel de Allende to other sunny spots around Cancún and Puerto Vallarta. Government figures show that more Canadians are also joining their ranks.
  • More and more American consultants helping businesses move production from China are crisscrossing the region from San Luis Potosí to Guadalajara, where Silicon Valley veterans like Andy Kieffer, the founder of Agave Lab, are developing smartphone applications and financing new start-ups. In Guanajuato, Germans are moving in and car-pooling with Mexicans heading to a new Volkswagen factory that opened a year ago, and sushi can now be found at hotel breakfasts because of all the Japanese executives preparing for a new Honda plant opening nearby.
  • Mr. Pace, bearded and as slim as a Gauloises, said he moved to Mexico in 2011 because college graduates in France were struggling to find work. He has stayed here, he said, because the affordable quality of life beats living in Europe — and because Mexico offers more opportunity for entrepreneurship.
  • Some Mexicans and foreigners say Europeans are given special treatment because they are perceived to be of a higher class, a legacy of colonialism when lighter skin led to greater privileges. But like many other entrepreneurs from foreign lands, Mr. Pace and his partners are both benefiting from and helping to shape how Mexico works. Mr. Rodríguez, the former Interior Ministry official, Cuban by birth, said that foreigners had helped make Mexico City more socially liberal.
  • Many immigrants say Mexico is attractive because it feels disorderly, like a work in progress, with the blueprints of success, hierarchy and legality still being drawn. “Not everyone follows the rules here, so if you really want to make something happen you can make it happen,” said Ms. Téllez, 34, whose food business served more than 500 visitors last year. “No one is going to fault you for not following all the rules.”
  • compared with South Korea, where career options were limited by test scores and universities attended, Mexico allowed for more rapid advancement. As an intern at the Korea Trade-Investment Promotion Agency here, he said he learned up close how Samsung and other Korean exporters worked. “Here,” he said, “the doors are more open for all Koreans.” He added that among his friends back home, learning Spanish was now second only to learning English.
  • There were 10 times as many Koreans living in Mexico in 2010 as in 2000.
  • Europe, dying; Mexico, coming to life. The United States, closed and materialistic; Mexico, open and creative. Perceptions are what drive migration worldwide, and in interviews with dozens of new arrivals to Mexico City — including architects, artists and entrepreneurs — it became clear that the country’s attractiveness extended beyond economics.
  • Artists like Marc Vigil, a well-known Spanish television director who moved to Mexico City in October, said that compared with Spain, Mexico was teeming with life and an eagerness to experiment. Like India in relation to England, Mexico has an audience that is larger and younger than the population of its former colonial overlord.
  • “In Spain, everything is a problem,” he said. “Here in Mexico, everything is possible. There is more work and in the attitude here, there is more of a spirit of struggle and creativity.”
  • “We are now more certain about the value of sharing certain things.”
  • He struggled to make sense of Mexico at first. Many foreigners do, complaining that the country is still a place of paradox, delays and promises never fulfilled for reasons never explained — a cultural clash that affects business of all kinds. “In California, there was one layer of subtext,” Mr. Quemada-Díez said. “Here there are 40 layers.”
  • Mexico has allowed dual nationality for more than a decade, and among the growing group of foreigners moving here are also young men and women born in Mexico to foreign parents, or who grew up abroad as the children of Mexicans. A globalized generation, they could live just about anywhere, but they are increasingly choosing Mexico.
  • Domingo Delaroiere, an architect whose father is French and mother is Mexican, said Mexico’s appeal — especially in the capital — was becoming harder to miss. When he came back here last year for a visit, after two and a half years in Paris, he said he was surprised. “Art, culture, fashion, architecture, design — the city was filling up with new spaces, things that are interesting, daring,” he said. He soon decided it was time to move. Compared with Mexico, he said, “Nothing is happening in Paris.”
Javier E

Insight-Batista's Brazilian Empire Was Sunk by More Than Hubris - NYTimes.com - 0 views

  • things have gotten worse for Batista. Hit by mounting debt, a series of project delays and a crisis of confidence, his six publicly listed companies have suffered one of the most spectacular corporate meltdowns in recent history.
  • He pumped billions into the group's companies even as share prices plunged by as much as 90 percent.
  • His own fortune - the world's seventh-biggest last year, according to Forbes - has declined by more than $25 billion over the past 18 months.
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  • His empire also fell victim to the sudden end of both the global commodities boom and a wild exuberance for emerging markets - two forces that attracted investors to Batista's vision.
  • A former Brazilian finance minister, a former energy minister and a former chief justice of Brazil's supreme court joined the OGX board, bolstering the credibility of the polyglot, European-educated "Brazilianaire".
  • When Batista raised $4.11 billion in OGX's initial public offering in June 2008, interest in Brazil was feverish. Petrobras had just made giant offshore oil discoveries and Brazil was expected to become one of the world's top five oil producers by 2020.
  • Record demand from China drove up the price of Brazilian soybeans, iron ore, coffee, sugar and other commodities. Oil rose to an all-time high. EBX had also just sold most of its first listed company, iron ore producer MMX Mineração e Metálicos SA, to Anglo American Plc for $6.65 billion, enriching Batista and his investors.
  • A lot of the people who invested with Batista were not fools, and his rise and fall has followed that of Brazil.
  • DeGolyer & MacNaughton (D&G), a Dallas-based certification company, estimated OGX's potential resources at 10.8 billion barrels of oil and natural gas equivalent. That would have been enough - if OGX could figure out how to get it out of the ground - to supply all U.S. oil needs for more than a year and a half.
  • OGX estimated it would produce 1.4 million barrels a day by 2019, equivalent to 70 percent of Brazil's output, or about half of the output of Venezuela, a founding member of OPEC.
  • Already Brazil's richest man, Batista bragged he would surpass Bill Gates, Warren Buffett and Mexico's Carlos Slim to become the world's wealthiest person. Today he does not even make Forbes' top 100 list.
  • The consequences of Tubarão Azul's failure quickly spread because of the close links between EBX Group companies. EBX shipbuilder OSX Brazil SA was formed to build and lease a fleet of offshore oil vessels for OGX. Power producer MPX Energia SA is developing gas fields with OGX in Brazil's northeast. Port operator LLX Logística SA is home to OSX's shipyard, a place to store and process OGX oil and to ship Anglo American's iron ore.
  • Batista may also have been hurt by Brazil's efforts to help his and other companies weather the 2008 U.S. financial crisis and the world economic slowdown that followed. As Brazilian stocks, currency and bonds plunged, EBX stocks briefly fell to levels that were only broken this year.
  • EBX was one of the main beneficiaries of cheap capital that Brazil's government pumped into the economy to fight the downturn.
  • In Batista, the government was pursuing its then-fashionable strategy of creating "national champions" while making up for delays in its own infrastructure projects. It encouraged Batista to speed up just as Brazil's boom was about to end.
  • Batista and Brazil, though, have struggled since. As China slows, commodity prices are falling. In the last year Brazil's Bovespa stock index was the worst performer among the world's 28 largest indexes and the only one to fall in the period.
Javier E

How Brazil's China-Driven Commodities Boom Went Bust - WSJ - 0 views

  • If the biggest economic story this century was China’s rise, Brazil was uniquely poised to benefit from it. Rich in iron ore, soybeans and beef, not to mention oil, Brazil was positioned as a supplier of many things China needed. Its annual trade with China, only around $2 billion in 2000, soared to $83 billion in 2013. China supplanted the U.S. as Brazil’s largest trading partner.
  • Brazil fell under what some economists call the “resource curse,” a theory describing how countries with abundant natural resources sometimes do worse than countries without them. The idea is that the money from commodity sales can lead to overvalued currencies and shortsighted policy-making, leaving such countries badly exposed when the resource boom finally ends.
  • “Unfortunately, the history is that commodity-dependent economies do not catch up with the U.S.,” said Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management. “Not just oil producers. More countries end up being poorer, compared with the U.S., after they find a commodity than catch up.” Using data going back to 1800, he said commodity-dependent economies typically grow for a decade, then spend as long as two decades wallowing or slipping back.
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  • Buoyed by China trade, nationalist-minded politicians launched a foreign policy meant to reduce the role of the U.S. in Latin America. Brazil blocked a U.S. free-trade initiative for the Americas. They teamed with Venezuela to create a regional security council to supplant one that included the U.S. The foreign minister worked from an office with a huge map of the world upside down, offering the message that the era of emerging markets was at hand. But the world wasn’t upside down. While Brazil tied itself more closely to anti-American governments like Venezuela, Argentina and Iran, some regional neighbors—Chile, Colombia and Peru—went around Brazil and cut individual free-trade deals with the U.S.
  • Anticipating commodity sales, the government spent increasingly heavily. Government banks supplied Brazilians with easy credit. Brazil subsidized energy bills, issued cheap loans to big companies with government ties and built stadiums to host global events such as the 2014 World Cup and the 2016 Olympics.
  • Meantime, Brazil produced far less oil than predicted. Production actually shrank in some years, as Petróleo Brasileiro SA, PBR 12.80 % known as Petrobras, struggled with the enormous task of developing oil fields in extremely deep water.
  • Commodities’ support of the economy allowed Brazilian leaders to put off addressing certain problems that had long bedeviled the nation, such as a political system that tended to breed corruption and a bureaucracy that stymied business innovation. “Brazil became complacent because of the intoxicating effects of China trade,”
Javier E

Chavez's influence wanes in Latin America - The Washington Post - 0 views

  • these days Chavez’s influence is waning across the region as Venezuela’s oil-powered economy has gone bust and concerns have been raised about his governing style, which includes the jailing of opponents.
  • Ever so quietly, some of the Venezuelan populist’s biggest projects have been abandoned or mothballed, or have yet to take flight, including a pipeline from Venezuela to Argentina, a South American development bank, housing, highways and a continental investment fund.
  • Latinobarometro found in a February report that Latin Americans perceived Venezuela to be less democratic than other countries, assigning a 4.3 rating to Venezuela, with 10 being the most democratic.
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  • When the group asked people to rate leaders in the Americas, Chavez finished second to last in its 2010 report. Even in Bolivia and Argentina, countries with warm relations with Venezuela, fewer than 35 percent of those polled had a favorable opinion of Chavez.
Javier E

Visiting Latin America's real success stories - Opinion - Al Jazeera English - 0 views

  • n the international arena, the new president, Dilma Roussef, has pulled back from Luiz Inácio Lula Da Silva's many excesses (indifference to human rights abuses, support for Iran and its nuclear program, and rhetorical anti-Americanism) during his last year in office, and may even have a present for Obama.
  • South America is booming, as India and China swallow up its exports of iron, copper, soybeans, coffee, coal, oil, wheat, poultry, beef, and sugar. Its foreign trade and investment patterns are diversified and dynamic. With a few minor exceptions, migration is internal to the region, and a modus vivendi has been reached with the drug trade, mainly coca leaf and cocaine in Bolivia, Peru, and Colombia. Moreover, relations with the US, while important, are no longer paramount. South American governments can afford to disagree with the US, and often do. They have just elected a new president of the Union of South American Nations (Unasur), whose headquarters are being built in Quito, Ecuador. As its name suggests, Unasur's main raison d'être is to exclude Canada, the US, and Mexico (in contrast to the Organisation of American States).
  • None of this holds true for Mexico, Central America, and the Caribbean islands – mainly the Dominican Republic, but eventually Cuba, too, and, in its own way, Haiti. These are not mineral-rich or bountiful agricultural nations: some coffee and bananas here, a little sugar and beef there, but nothing with which to sustain a boom. While Mexico is America's second-largest supplier of oil, this represents only 9 per cent of its total exports. Instead, these countries export low-value-added manufactured goods (Mexico does more, of course), and live off remittances, tourism, and drug-transshipment profits. All of this is overwhelmingly concentrated on the US: that is where the migrants are, where the towels and pajamas are shipped, where the tourists come from, and where the drugs are bought. For these countries, including Mexico, stable, close, and productive relations with America are essential.
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  • One area is freeing itself from US hegemony and is thriving, but may founder if Chinese and Indian growth slows. Another is increasingly integrated with the US and Canada. Despite its current travails, it will discover a path to prosperity when the US does.
Javier E

Brazil's Balancing Act - 0 views

  • A recent issue of the bimonthly Estudos Avançados, a journal associated with the University of São Paulo, sheds light upon the assumptions Brazil brings to the FTAA negotiating table and highlights the lively debate among Brazil's business community, government, and civil society over the merits of the regional trade pact.
  • the Catholic Church and organized labor groups in Brazil have been the most vocal in their opposition to the agreement; they cite loss of sovereignty and fear that Latin American countries will become subordinate to the interests of the United States. Moreover, some industries in Brazil -- such as the chemicals, electronics, and capital-goods sectors -- also worry that the FTAA could be a losing proposition.
  • most of the Brazilian business community prefers to forge ahead with the agreement rather than risk losing out on increased commerce in the Americas. Oliveira warns that if Brazil backs out of the negotiations, the United States will simply negotiate bilateral treaties throughout the region, which could pare Brazilian exports and divert foreign investment to other markets. While the far-left wing of the Lula government continues to fight the treaty, Oliveira believes that Lula and the moderates in his party understand that Brazil would pay a high price for isolation.
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  • a contrasting perspective, arguing that Brazil has much more to lose through the FTAA than it has to gain, and that the United States would be the treaty's primary beneficiary. In particular, Nogueira believes that Brazilian industries are unprepared to take on North American producers. High domestic interest rates, poor infrastructure, and excessive taxation leave Brazil's businesses at a disadvantage
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