Rising Returns To Labor Are Raising Living Standards And Lowering Inequality In Latin America According To The World Bank

A paper written by the World Bank's Louise Cord, Leonardo Lucchetti, Carlos Rodríguez Castelán, Adam Ratzlaff posted on the VOX web site offers guarded optimism for Latin American and Caribbean progress on equality and growing middle classes with Argentina, Chile, Paraguay, Uruguay and Mexico leading. Their analysis, looking back as far as 1995, finds a 50% reduction in extreme poverty from 26% to 13 % by World Bank standards ($2.50 PPP/day). Gini coefficients are also showing continuous improvement for the region.The paper credits rising returns to labor for much of the progress.

However, all is not sunshine and daises. The writers warn that a substantial portion of Latin America's population remains close to the poverty line and could easily be tipped back given an economic shock or backsliding.

Click through to post here:

Bloomberg Story Predicts Declining Values For Latin American Currencies

I'm skeptical enough to believe that predictions have very little power beyond the immediate future. This doesn't make them meaningless, but I don't take them at face value. My take on predictions is that they are useful for understanding the trend analysis of the predictor. Even when the prediction is wrong, walking through the analysis can be a good way to extend one's own understanding.

In that spirit I've linked to a Bloomberg story by writers Ye Xie, Eduardo Thomson and Denyse Godoy predicting a route for Latin American currencies in 2014. And indeed 2013 was a less than stellar year for that large portion of Latin American economies that is based on commodities exports. As the US economy improves there is a potential for US interest rates to move up making it harder for Latin American investments to compete with the giant sucking sound to the north. Compounding the grief China, which has been a significant investor in Latin America of late, is in retreat. And so Southern currencies are trending downward.

That said the world rarely goes as long as 12 months without a few big surprises and one can't be too cautious about over extrapolating from looking at a small piece of a large and complex system.

Click through to the Bloomberg story here:

Patricio Navia Column on Project Syndicate Site Spells Out Challenges For Chile's Bachelet

Chile's Michelle Bachelet was elected with a large majority, but by a small electorate. Large numbers of Chileans stayed home this election cycle leaving the ultimate meaning of Bachelet's victory open for interpretation. Bachelet, herself, will need to navigate potentially rough political waters with skill and nuance.
Chile is a nation of extreme wealth inequality. Bachelet has worked hard to bring about a thriving middle with some success. But Chile has a long way to go and all eyes will be on Chile's new president. Senior Navia spells it out.


Click through to Project Syndicate post here:

Economist Magazine Boosts Latin Amarica Coverage, Names Uruguay Country of The Year

In most English language international news sources Latin American coverage gets buried under mountains of stories on Europe, Asia, the Middle East, in fact just about anywhere that isn't Latin America. So it is with real pleasure that I note the Economist's explicit intent to expand coverage of the region and it's selection of Uruguay as 2013 country of the year. Uruguay would have to be on the short list of any publication that is paying attention to the rather large chunk of the planet that lies south of the US/Mexican boarder. Uruguayan President Jose Mujica has shown a level of leadership that is truly remarkable in a world that has become overweight on a global level with wealth on the one side and the majority of people who have so very little on the other like opposing balls on a rather long dumbbell.

Read the Economist story here:

Michelle Bachelet Reelected Chile's President

Michelle Bachelet handily beat Evelyn Matthei in Chile's presidential election contest in what the New York Times is calling a landslide, 62% to 38%. This will be good news for populists and those who side with a demand side focus.
The Chilean economy has enjoyed respectable growth in recent years with commodities exports making a substantial contribution to Chile's economic fortunes. But like many countries, particularly those enjoying large contributions from commodities exports, income inequality has been a policy challenge in Chile. Keynesians, and even the IMF seems to be nodding its head toward Keynes lately, would tend to line up broadly with a middle out growth strategy such as that which Ms. Bachelet would seem to be indicating.
Ms. Bachelet appears poised to pursue an aggressive policy agenda including proposed constitutional changes. Chile is going to be an interesting story to follow. For the young and ambitious a move to Santiago might not be your least option.


Read more here:

Rural Andean Churches Are Being Robbed Of Colonial Art "Because Terrible People Want To Own Beautiful Things"

In a wave of burglaries rural churches in Peru and Bolivia are being stripped of irreplaceable colonial art including canvases and ornaments. According to an Associated Press story reported in the Boston Globe, since 2009 38 thefts of  447 objects have been reported in Bolivia. There have been 30 thefts reported in Peru since 2012. The Rev. Francisco Dubert decried the thefts saying, ‘‘These churches are being robbed because terrible people want to own beautiful things.’’ The market for stolen art is mostly in Europe and the United States with Santa Fe New Mexico a prime destination for Latin American art according to Donna Yates, a University of Glasgow archaeologist.

 Read more here:

China Grows Its Influence In Latin America By Putting Economics and Practicality Ahead of Politics

China's increase in trade with Latin America is hitched to funding of military and major infrastructure projects in the region. Between 2005 and 2011 China extended over $ 75 Billion in loans to Latin American Governments. China is a potential source of funds for a project to build a Nicaraguan canal connecting the Caribbean with the Pacific Ocean. China clearly sees an advantage in playing an integral role in the development of Latin America and the Caribbean.

In return the region is a supplier of minerals and food products to China and a market for Chinese exports of growing importance.

Read more here:

Danny Leipziger: Brazil Needs A Decade of Solid Growth Starting Now

Brazil has done remarkably well over the last decade, but now is not the time for Brazil to loose momentum according to Danny Leipziger in Project Syndicate. Growth has slipped into negative territory. Manufacturing has slipped from 30% to 15% of GDP. And Brazil's service industry needs to become more productive. Leipziger includes eliminating domestic firm's privileges and boosting competition among his policy recommendations.


Read more here

Indigenous Peoples Are Occupying Ranches and Farms In Brazil As A Challenge To The Government

Over 60 farms and ranches across Brazil's Mato Grosso do Sul have been occupied by Indigenous protesters. In some casses the protestors are working the farms and harvesting food.

“Our reservations are too small,” complained one chief.  “If we don’t get more land, my people will go hungry.”

In the last ten years more than 500 of Brazil's indigenous have been murdered in the course of their struggle for rights.

Read more here

The Author of Austerity: the History of a Dangerous Idea, Makes Another Plea

Political economist Mark Blyth, author of  Austerity: the History of a Dangerous Idea, questions claims that austerity is finally leading Europe to a recovery. With unemployment in double digits and record levels of debt, Blyth argues that the signs of recovery are actually the result of investors seeking profits from high European risk premiums. According to Blyth, the banking crises at the heart of Europe's troubles has not been addressed.

Read more here

McKinsey & Company Look At The Challenges For Latin American Women In Management. No Surprises Found

McKinsey & Company released a study that analyses the challenges facing women who seek senior level careers in Latin America. The results roundly confirm that Latin American women face many of the same obstacles as women in Europe or North America, only more so. While a growing number of firms recognize the need for gender diversity and are actively working to expand opportunities for women, there is a long way yet to go. Reason's for the lack of women's participation in senior positions are mostly familiar. Attitudes and inflexible work schedules are high on the list.

Read more here

Analyst Fábio Malini Uses Twitter To Create A Political Cartography Of The Brazilian Protests

Fabio tracks the development of the current Brazilian protest movement by analyzing a wide ranging, diverse social media conversation resulting in the creation of a "digital cabinet" as President Dilma Rousseff's government seeks to engage with, and understand the protestors.

Read more here

Political Analyst Rosendo Fraga Calls Argentina's Primaries on Sunday "The Worst Defeat For Kirchnerism Since 2003"

In spite of a fragmented opposition 3/4 of voters chose opposition candidates. Kirchner's Victory Front suffered defeat in what Fraga called safe havens such as the provinces of Chubut, San Juan, La Rioja, and Jujuy. In the Provence of Buenos Aires, critical in national elections, opposition candidate Sergio Massa, easily won.

Read more here

The Pressure Is On For Brazil To Reach A Trade Agreement With The EU

Trade negotiations between the EU and the Mercosur economic bloc, which includes Brazil, are stalling out. But for Brazil reaching an agreement has a special urgency. Brazil's rising wealth may cause it to loose trade preferences. Brazil is expected to propose a separate agreement later this month.

Read more here

Composer and Virtuoso Eduardo Falú Dies at 90

Argentinian composer and guitar virtuoso Eduardo Falú passed away August 9 at age 90. Falú trained as a classical composer but stayed close to Argentinian traditional forms. Falú broke through on Buenos Aires radio in 1945 but soon became an international star with performances in many countries including Japan and France by the end of the 1950's. Cause of death was not disclosed. 

Read more here

Argentine Political Race Heats Up

Cristina Fernandez's ruling political party remains in the lead, but opposition candidates had a strong showing in Sunday's congressional primaries. A third of the senate and half of the seats in congress are potentially vulnerable leaving open the possibility of a shift in the balance of power.



Read more here

Argentinian Indigenous People Seek Recognition, An End to Discrimination, and Return of Land

A string of violent killings of indigenous leaders has not discouraged Argentina's indigenous populations from seeking rights which the Argentine government already officially recognizes. According to Félix Díaz, leader of the Qom, “We want to live as human beings. We don’t want to be considered as strangers in our own country, poor or useless. We want to live without discrimination. We don’t want blood shed, we just want to reclaim our community,”

Read more here

Brazil Is Favorite Destination As Investment Firms Load Up On Latin American Real Estate Holdings

17 US based real estate investment firms are raising $ billions for investment in Brazil alone. While Latin American firms still fund slightly over half of South American investments, American firms are committed and expanding their presence. Among the bigger contenders is Prudential's Pramerica Financial.


Read More Here

Latin American ALBA Alliance Claims Success in Raising Standards When Other Efforts Around the Globe Have Stalled

Alianza Bolivariana para los Pueblos de Nuestra América (ALBA) based on a 2004 agreement between Hugo Chavez and Fidel Castro claims success on several fronts. Member nations
Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Nicaragua, Saint Vincent and the Grenadines and Venezuela have seen a reduction in poverty and improvements in literacy and infant mortality according to Venezuelan sociologist Maria Paez Victor. ALBA remains committed to a platform of regionalism and social reform and opposition to free trade agendas.

Read more here

Where Are Latin Americans Going For Online Video? Infographic

Infographic on on where Latin Americans turn for online video.

View it here

The Queen of Latin Radio, Betty Pino, Has Died

Ecuadorean-born Betty Pino, a strong presence in Latin American Radio for over 30 years has passed. Cause of death was a bacterial infection.

Read more here

An Upbeat Dilma Rousseff’ Reflects On The Decline Of Brazilian Food Prices

Brazilian President Dilma Rousseff takes credit for lower food, transportation and clothing prices. Brazilian food prices dropped 0.33% in July. The declines were not enough to keep 12 month inflation within the government's 6.27% maximum target. However, Rousseff declared inflation under control.

Read more here

Investing Visionary George Soros Sees A Future In Brazilian Telecom Firm

George Soros is partnering with a group of investors to launch Quattro Telecomunicacoes, a firm that will provide high speed wireless internet access in Brazil. An initial investment of 500 million Brazilian real ($218 million) is planned for the next 2 to 3 years. Initially located in Sao Paulo, the investors hope to expand nationwide over time.


Read more here:

TNW (The Next Web) Announces The Winners Of It's Latin American Start-up Awards.

Entrepreneurs from Peru, Colombia, Mexico, Argentina, Chile and Brazil are all in the running for TNW's 2013 Start-up Awards. 18,448 people cast over 31,000 votes for awards in 4 categories.

To see the winners click here

Argentina Restates Demands to Negotiate On The Future of The Malvinas

At Tuesday's United Nations Security Council Meeting Argentine President Cristina Fernandez de Kirchner called on Britain to negotiate over the future of the Malvinas. "This is not a fanciful stance. We simply want the United Nations resolution to be enforced and for our two countries to sit down and discuss this."


Read more here.

Facebook is Looking to Latin America to Drive Profits

Facebook has signed up 1 in 3 Latin Americans and intends to expand that penetration leveraging growing internet connectivity and the expanding use of Smart Phones. Latin America is already having a significant impact on Facebook's global profits.

http://www.globalpost.com/dispatch/news/regions/americas/130802/facebook-friends-latin-america-social-media

Iran and Brazil Conduct Talks

Iranian Foreign Minister Ali Akbar Salehi and Brazilian Foreign Minister Antonio Patriota  met in Tehran today to discuss cooperation.Salehi is reported by Press TV to have said that there is no obstacle to the further enhancement of Tehran-Brasilia ties. Patriota underlined Iran’s political and cultural roots in the region, noting that his country considers the Islamic Republic as an important partner for economic cooperation. 

www.presstv.ir/detail/2013/08/03/317045/iran-brazil-discuss-bilateral-relations/

Latin Amercan Investment Inflows Slow

Fernando Losada writes in Seeking Alpha that Latin America is seeing a slowdown in investment inflows that could have serious consequences for Latin American economies. Weak demand for Latin American exports combined with declining commodities prices are creating strong headwinds that combined with reduced investment could result in capital flow reversals.

http://seekingalpha.com/article/1599222-how-will-latin-america-weather-a-sudden-stop-in-investment

Baktun, The First Telenovela In The Mayan Language

Mexico's Quintana Roo State public television has filmed the first telenovela in the Mayan language. For most of the actors Mayan is their first language.

http://www.nytimes.com/2013/08/02/world/americas/a-culture-clings-to-its-reflection-in-a-cleaned-up-soap-opera.html?_r=0

Linio Expands Mobile Commerce With Newly Funded Venture

Linio raised $26.5 million in support of its expansion into the mobile commerce space. It's new Android app will help Linio capture market share as Latin Americans increasingly do their shopping by smartphone.

http://venturebeat.com/2013/08/01/rocket-internets-linio-tests-waters-for-mobile-commerce-in-latin-america/

Flames From Wildfire Approach The Edge of Buenos Aires

Flames from the ecological reserve fire can be seen just behind the city lights of Buenos Aires' Puerto Madero neighborhood in this dramatic photograph:


http://hungeree.com/society/fire-line-in-buenos-aires/

Latin American Streets Are A Major Destination For American Guns

The Los Angeles Times reports on the contribution of weak US guns laws to violence on the streets in Latin America as US gun purchases head south.

http://www.latimes.com/news/world/worldnow/la-fg-wn-us-gun-laws-violence-latin-america-20130731,0,4015750.story

As The Global Economy is Demanding Skills Latin America Faces The Challenge Of Educating Its Next Generation

In this Atlantic Council article Gabriel Sanchez writes about the efforts of Latin American leaders to raise the level of education and opportunity for the next generation of workers

http://www.acus.org/new_atlanticist/latin-americas-drop-out-crisis

Eileen Truax, Author of Dreamers, Interview in NACLA

Two part interview on immigration and the immigrant contribution to the US with Eileen Truax, Author of Dreamers: The Fight of a Generation for its American Dream. Migrant Journeys

Here

and 

Here

Former Bogota Mayor Enrique Peñalosa Explains The Importance of Pedestrian Space to Successful Cities

Urban Strategist and Former Mayor  Enrique Peñalosa waxes eloquently about providing space for pedestrians in an urban environment in this short video.


http://newyork.thecityatlas.org/lifestyle/designing-city-starts-pedestrian-space-enrique-penalosa-interview/

Fresh Latin Flavors for Your Summer Reading List

Summer may be half over, but if your reading list needs some pep, here are some great suggestions from Latin American and latino authors (in translation)

http://nbclatino.com/2013/07/29/four-great-summer-reads-from-latin-american-and-latino-authors/

Singapore's ST Engineering Seeks to Establish a Toehold in South American Defense Industry Via Brazil

Putting pressure on Brazil's own Embraer S.A., ST Engineering expands in Brazil with the purchase of Technicae Projetos e Servicos Automotivos and ambitious plans for expansion in the automotive and defense industries.

http://www.upi.com/Business_News/Security-Industry/2013/07/29/Singapore-Brazil-firms-eye-Latin-American-defense-market/UPI-97521375131810/

The United States Polls Well in Pew Latin America Survey

Attitudes toward the US are mixed, but surprisingly favorable according to this Huffington Post Story:

http://www.huffingtonpost.com/2013/07/29/latin-america-views-the-u_n_3672000.html

Silcon Valley as One Stop Solution for Developing World Get's Skeptical Eye

Andres Oppenheimer points to this article in Foreign Policy arguing that the enthusiasm for Silicon Valley style solutions as panacea for that part of the world that is decidedly not Silicon Valley may be on the optimistic side.

http://www.foreignpolicy.com/articles/2013/06/24/can_silicon_valley_save_the_world

According to Josh Brown Citi Group has soured on emerging markets:

http://www.thereformedbroker.com/2013/07/26/qotd-citigroups-death-of-emerging-markets-call/?utm_source=dlvr.it&utm_medium=twitter

Introducing Latitude 9N

Latitude 9N will post news and analysis regarding Latin American Business, Politics, and economics.