Politics, Business & Culture in the Americas

Monday Memo: Military Operations in Rio – Kirchner on Medical Leave – Colombia-FARC Peace Talks – Mexico’s Tax Reform – U.S. Debt Warning

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Likely top stories this week: Military operations expand into a Rio de Janeiro favela; Argentine President Cristina Fernández de Kirchner takes a month-long medical leave from office; Colombia-FARC negotiations advance in Cuba; Mexican tax reform faces new opposition; IMF warns against the threat of a U.S. debt default.

Rio de Janeiro Expands Military Control of Favelas: A peaceful military operation was conducted on Sunday in the Lins de Vasconcellos favela of Rio de Janeiro, home to approximately 15,000 residents. Authorities have already established 34 Unidades de Polícia Pacificadoras (Police Pacification Units—UPPs) across the Rio de Janeiro metropolitan area—and now plan to install two in Lins de Vasconcellos—in an effort to promote public security for the 2014 World Cup and 2016 Olympics. UPPs came under public criticism recently after 10 military police officers were accused by public prosecutors of torturing and killing Amarildo de Souza, a resident of the Rocinha favela.

Argentine President Takes Medical Leave: Argentine President Cristina Fernández de Kirchner was ordered by doctors to take a month-long leave of absence after they confirmed she had suffered a head trauma. Vice President Amado Bodou will assume presidential responsibility during Kirchner’s absence. The announcement precedes midterm congressional elections scheduled for October 27 during a political low for Kirchner’s governing coalition. The group recently reported its worst performance in ten years, having received just 26 percent of national votes in the electoral primaries.

Colombian Government and FARC Leaders Resume Peace Talks: Following disagreements that resulted in a two-week stall in peace talks between the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) and the Colombian government, FARC Chief Negotiator Iván Márquez announced this week that both parties have agreed to resume negotiations. The talks began 10 months ago in Havana, Cuba, and have now been recorded in a 25-page document that includes agreements on the key issue of land reform. Colombian President Juan Manuel Santos said he hopes to conclude negotiations by the end of the year, with the ultimate goal of the FARC surrendering all weapons in exchange for legal and political integration.

Mexican Tax Reform Faces New Opposition: Mexican President Enrique Peña Nieto’s proposed tax reforms face new opposition from the Partido Acción Nacional (National Action Party—PAN). The plan seeks to promote annual economic growth beyond 5 percent by reducing government subsidies for national energy production and raising annual revenue by 1.4 percent from increased sales and income taxes. The PAN has cited concerns that the tax reform bill would disproportionately burden middle-income families by imposing new taxes on private education tuition, mortgages and home rentals.

IMF Warns against A Possible U.S. Debt Default: IMF Managing Director Christine Lagarde has warned against the looming threat of a U.S. debt default and the damaging effects it could have on the global economy as the U.S. Congress remains stalled in negotiations over a government shutdown. A recent report by the U.S. Department of the Treasury also warned against what would likely be the country’s worst economic crisis since the Great Depression, noting, “a default would be unprecedented and has the potential to be catastrophic.” In a recent speech, Lagarde said the U.S.’s ability to reach an agreement on the debt ceiling was “mission critical” to global economic growth and stability.

Tags: FARC peace negotiations, Mexico Tax Reform, UPP
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