The accusations from Argentina's tax authority that London-based HSBC laundered over $100 million may pale in comparison to that of the bank's US - Mexico case, but they raise the specter that someone from HSBC could finally go to jail.
The charges, [which were] announced by the head of Argentina's tax collection agency, Ricardo Echegaray, on March 19, include tax evasion and money laundering totaling up to $120 million.
HSBC was in damage control mode prior to the announcement and in a press conference, Mr. Echegaray seemed angered by the company's attempts to persuade him not to proceed with the case.
"Stop looking for me to lobby me," he said, referring to the bank. "Pay us what you owe us. Then you will go to court, and it will determine what actions to take."
The company can hardly afford another public relations hit. It has spent the last few months trying to shore up its US - Mexico case and its internal anti-money laundering (AML) team.
The company has hired a former a US Deputy Attorney General, Jim Comey as well as Joseph Evans, who, up until a few months ago, was the head of the Drug Enforcement Administration's (DEA) regional office in Mexico City.
InSight Crime Analysis
The Argentine government's combative attitude is a stark contrast to the United States government, which decided to fine the bank a record $1.9 billion but did not pursue criminal charges even though the company had been a laundering haven for years.
A 337-page report by the Senate Committee on Homeland Security and Governmental Affairs released to coincide with hearings on the case in July 2012 details just how much worse it was than that of Argentina. (Watch hearings and read report here.)
As money laundering schemes go, this one was pretty simple. Drug traffickers' proceeds from the US were moved, in bulk or in small quantities, back to Mexico where Mexican financial institutions accepted large deposits with less scrutiny and controls, and kept the money in US dollars. The money was then wired back, or hauled back in armored trucks, to the US from exchange houses or Mexico-based banks, including HSBC's Mexico Branch, HBMX.
"From 2007 through 2008, HBMX was the single largest exporter of US dollars to HBUS [HSBC's United States branch], shipping $7 billion in cash to HBUS over two years, outstripping larger Mexican banks and other HSBC affiliates," the report says. "Mexican and US authorities expressed repeated concern that HBMX's bulk cash shipments could reach that volume only if they included illegal drug proceeds."
HSBC plead ignorance in the matter, and bank officials testified that once they understood the gravity, they acted as quickly as possible to shore up the loopholes. However, the timeline and internal communications of the company, also detailed in the committee's report, suggest otherwise.
"From 2000 until 2009, HSBC Group and HBUS gave Mexico their lowest AML risk rating, despite overwhelming information indicating that Mexico was a high risk jurisdiction for drug trafficking and money laundering," the report says.
Indeed, every year, the State Department highlighted this risk in its annual report on money laundering. And every year, HSBC downplayed this risk. Internal documents show that in 2005, HBMX employees falsified documents related to the mitigation of this risk, including fabricating minutes of meetings of the anti-money laundering team that never occurred. The company cannot claim ignorance because a whistle-blower reported the incident that same year.
"In one three-month period from November 2006 to February 2007, HBMX shipped nearly $742 million in U.S. dollars to HBUS," the report says. "At its peak, HBMX exported $4 billion in bulk cash shipments to HBUS over the course of one year, 2008. Until it sharply curtailed its U.S. dollar services in Mexico in January 2009, HBMX shipped more U.S. dollars to HBUS than any other Mexican bank or HSBC affiliate."
In that 2002 - 2009 time span, there were other warnings that seemingly went unheeded. US government agencies, including the Department of Homeland Security, the Federal Bureau of Investigation, and the DEA spoke in Congressional hearings about money laundering in Mexico.
Other banks, including rival Wachovia, were investigated and sanctioned for moving billions in drug money in the same way as traffickers were using HSBC's bank system.
"In addition to its high risk location, clients, and activities, HMBX had a history of severe AML deficiencies," the report states. "Its AML problems included a widespread lack of Know Your Customer (KYC) information in client files; a dysfunctional monitoring system; bankers who resisted closing accounts despite evidence of suspicious activity; high profile clients involved in drug trafficking; millions of dollars in suspicious bulk travelers cheque transactions; inadequate staffing and resources; and a huge backlog of accounts marked for closure due to suspicious activity, but whose closures were delayed."
One of those clients was Zhenli Ye Gon, a Chinese-Mexican citizen and owner of several Mexico-based pharmaceutical companies. In March 2007, Mexican and US authorities raided several of Ye Gon's properties in Mexico and found $205 million and 17 million Mexican Pesos in cash, as well as weapons and wire transfer records.
Ye Gon was captured in July 2007 in the United States and accused of being a major player in the methamphetamine trade. He has maintained his innocence and the case was thrown out of court in the United States. He remains in custody and faces extradition to Mexico to confront similar charges.
The Senate Committee report, citing Mexican news sources and the Mexican Ministry of Finance, says Ye Gon moved $90 million through four Mexico-based banks, including HSBC.
Despite all this, HSBC maintained its "standard" rating for Mexico's risk until May 2009, when it abruptly changed it to highest warning. Senate Committee members believe that was because the company realized that it was under US and Mexican government scrutiny.
"HBUS' awareness of the increasing US law enforcement and regulatory interest in Mexico may have contributed to its decision to review and, ultimately, in May 2009, to increase its risk rating for Mexico," the report says.
The HSBC case is not limited to Mexico. As Reuters reported, US authorities were able to reconstruct the case using a Colombian middle-man who pleaded guilty and turned state's witness. The Colombian detailed how the groups would use the sale of domestic goods to camouflage their money moving back to that country.
"In a typical transaction, a middleman in a drug cartel would offer to deliver consumer goods, such as computers or washing machines, to Colombian businesses on favorable terms," the Reuters report says. "Another person in the United States would buy the goods from firms using funds from drug trafficking, and fulfill those orders."
The underworld reputation of the bank was that of a safe haven. Reuters says one drug lord described it as "the place to launder money." The Sinaloa Cartel reportedly used the bank to purchase an airplane.
Despite what one top Department of Justice (DOJ) official called "stunning failures of oversight," the DOJ did not prosecute any bank officials, opening up the department to widespread ridicule and scorn.
"This is corruption," one government investigator who wished to remain anonymous told InSight Crime. "We do corruption on a bigger scale and more efficiently than any banana republic."
Major media quipped that the bank appeared "too big to indict," a play on the notion that many banks were "too big to fail" during the economic meltdown in late 2008.[...]
Argentina, on the other hand, is the perfect candidate to take these bankers to task. The country already lived through a banking meltdown of epic proportions and had an overall dismal couple of decades economically thanks, in part, to bankers' and investors' whims.
The government is "socialist," at least in rhetoric, and there is no such thing as "too big to indict" when your entire banking sector has gone through that type of turmoil and your economy has been turned upside down.
What's more, the bank is British and a recent vote on the Falklands to stay with the Motherland no doubt irked the government. In fact, all this may make the Argentine government more inclined to pursue the banks as a kind of divine retribution.
However, prosecution is unlikely. The financial crimes unit, known by its acronym UIF, has been even more of a joke than that of the United States, and has come under constant scrutiny for being "politicized" and lacking any teeth.
When the unit finally prosecuted someone, Urgente24.com titled the article: "The UIF has its first sentence." The news outlet said the condemned man had made "ignominious" history. The unit had been formed in 2000. The irony: the sentenced man was slated to be extradited to the United States.
– Steven Dudley is a director at Insight – Organized Crime in the Americas, which provides research, analysis, and investigation of the criminal world throughout the region. Find all of his research here. Additional reporting provided by Andres Ortiz Sedano.
Despite making up nearly half of the South American land mass and bordering every country on the continent but two, Brazil has paradoxically long looked further afield to Europe and the United States for its cultural references. While French cinema and all-inclusive trips to New York are commonplace, a carioca, or resident of Rio de Janeiro, is hard-pressed to view the same element of chic attached to other Latin American countries.
But Rio de Janeiro’s newly opened Casa Daros may change the direction upon which a carioca’s cultural compass is fixed.
The art house is the project of Zurich-based collector Ruth Schmidheiny and German curator Hans-Michael Herzog, who acquired more 1160 works from 117 contemporary Latin American artists over the past thirteen years.
“When we – precisely at the start of the new millennium – began assembling a collection of contemporary art from Latin America, hardly anyone from outside the Latin American continent was aware of its powerful intrinsic potentials," the two wrote in a publication marking the museum opening. "The view from outside of the art of Latin America was impaired by ignorance and arrogance."
As the works gained credibility through expositions in Europe, the pair began to look for a permanent exposition space in Latin America itself. They considered locations in Cuba, Venezuela, Colombia, and other Andean countries, but decided against them due to their political situations, violence, or lack of infrastructure. They also considered Buenos Aires and São Paulo, but determined that each already had a vibrant arts scene while Rio had space to grow.
“People [from Rio de Janeiro] do not have access to the culture of Latin America in the same way that they get Europe [and] North America,” says Felipe Mariano, a teacher who visited the museum’s exposition of contemporary Colombian artwork. He says that cariocas’ access to Latin America is often superficial.
“We have a relationship with Argentina because of soccer,” he says. “If you go to Bolivia, someone [from Rio] will say, ‘Are those the guys that play flutes in the downtown?’” Mariano says, referring to Andean immigrants who often sell handicrafts and play instruments in Rio.
The museum will bring in new collections from Zurich about every five months, and the inaugural exposition, “Cantos, Cuentos Colombianos,” (Colombian Songs and Stories) brings works from 10 contemporary Colombian artists. The pieces of work included in the inaugural show are largely preoccupied with the country’s violent history and loss of lives. A series of nude photos show a fit young man in poses reminiscent of Michelangelo's “David.” But rather than having one foot resting behind him, as does David, a closer look reveals that the model is instead an amputee.
Another work asks viewers to blow hot breath on a series of vanity mirrors, where silhouettes of Colombia's disappeared come into view.
“It is a neighboring country that we do not know anything about,” says Claudia Noronha, a publicist at the Casa Daros who was giving enthusiastic guided tours to its new guests. “It is an art that we Brazilians do not know."
Surrounded by history ... and art
In a city bustling with new Olympic, hotel, and condominium construction, the Daros collectors chose to carefully restore a neoclassical Catholic school for orphan girls, built in 1866, instead of housing the work in a flashy new building.
On the more than 118,000 square feet of the Santa Casa de Misericórdia, restoration crews painstakingly removed and retreated each wooden plank in its floor, maintaining 60 percent of the original flooring. They chipped away at ten layers of paint to restore the original walls of the school, discovering that they were made up of an imitation marble created by an Italian technique called escaiola. Marble holy water dispensers still adorn the entrance to the chapel, now the first room of the main exhibit hall. Century-old palm trees 130 feet tall elegantly demarcate the museum in the crowded Botafogo neighborhood that hosts it.
Museum staff say their goal was to engage in a model of historical renovation in Rio, where interest in restoring the dank colonial-era regions of the city is now budding.
Contemporary Brazilian artist Vik Muniz, famous for his use of garbage to produce portraits of trash-pickers in Rio de Janeiro – the subject of the Oscar-nominated documentary "Wasteland" – was invited to the Casa Daros to repurpose the trash from its restoration.
The statue of the saint Nossa Senhora das Graças atop the entrance of the museum was what caught Mr. Muniz's attention. Under his guidance, the restoration crew reassembled pieces of metal, wood and old furniture to recreate her image on the floor of the artist's hangar. A photo of the resulting image is part of Muniz's exhibition, "Pictures of Junk."
"You come into here and what is the first thing you see? This saint," Muniz said of the work. "So I thought: She is the most obvious thing in this place. The rest is art."
• A version of this post ran on the author's blog, Riogringa. The views expressed are the author's own.
The film sheds light on Brazil's child obesity epidemic, ranging from this terrifying statistic about infant soda consumption to the fact that on average, Brazilian kids spend three hours per day in school and five hours per day watching TV. The movie also looks at the fact that obesity in general is a growing problem in Brazil. It points out, for example, that Brazilians consume an average of 112 pounds of sugar a year.
But perhaps what's most interesting about the movie is putting Brazil's obesity epidemic into a global perspective as a result of deepening globalization. While interviewing Brazilians across the country from all levels of the socioeconomic spectrum, the movie also includes foreign voices, including people from the United States, the United Kingdom, China, and Mexico, among others [See The Christian Science Monitor's focus on obesity in Latin America here.]. One Brazilian observer explains her perspective that a country is defined by the food it eats, and that it is not necessarily a good thing to be able to go anywhere in the world and eat the same exact thing. There's also an interesting point that applies to other large growing economies: parents sometimes send unhealthy processed food for children's school meals to show off a new ability to consume, and giving kids products they may not have had access to when they were young. [see original post for link to documentary in Portuguese.]
• A version of this post ran on the author's blog, Caracas Chronicles. The views expressed are the author's own.
Let’s recap of the first seven days of non-campaign campaigning, or in criollo doublespeak: pre-campaña. Technically, you see, the official campaign only starts on April 1 and lasts a mere 10 days. Obviously neither candidate has taken the [electoral commission] CNE campaign schedule particularly seriously.
[Opposition candidate Henrique] Capriles began a nation-wide stump tour, hitting two states per day, holding mass outdoor rallies that follow, more or less, the same format. His Asambleas Populares, as they’re called, kick off with four or five speakers who articulate their grievances – campaign sources confirm the testimonials always center on five key issues: education, people with disabilities, crime, the economy, and justice. These professional gripers then hand off to Mr. Capriles who gives a rousing speech drawing on their themes before circling around to his broader messages (Truth over lies, Nicolás Maduro’s government is inept, Venezuelans don’t deserve all these problems.)
That last bit is the part that you see on TV.
It took some doing to piece together that last paragraph, because this pre-campaign is not nearly as dospuntocero (2.0) as last October’s. Back then, budgets and official rules allowed for a Capriles YouTube channel to be the permanent source for almost real-time, all-inclusive coverage of campaign appearances. That’s not really possible this time around. Maintaining a constant video web presence requires a fully staffed unit exclusively dedicated to filming, recording, and uploading videos, not to mention expensive servers on which to host your data and permanent monitoring and marketing of the material via social networks, which is also not free.
Last year, Capriles’s public addresses were immediately accessible in full, minutes after they happened, indexed and searchable through his website. Today, I tried to find the talking points I’m citing, and all I could find is a blog, HayUnCamino.com, last updated on march 21 – five days [before this blog was written], which is an eternity in a campaign as short as this one. So that right there shows you – if last year’s campaign was run on a shoestring, this year’s is being run on a tatty old cabuya [twine/thread].
[Sunday's] campaign events featured a particularly poignant testimonial. Before Capriles and a large crowd, a father of a dead chavista member of the armed forces, related the grotesque story of how his son’s death was allegedly kept secret due to interests of organ trafficking mafias, allegedly linked to the government, aimed at making a profit off of his son’s death.
I was awestruck by the candor of said speaker, since I cannot conceive of a similar story being told to the public six months ago. That man had way too much to lose, and Capriles would’ve deemed it way too risky to highlight such a controversial example of chavismo turned sour. Which might explain why this clip, and many of the other testimonials, have not been publicized by any campaign, including such Capriles-friendly media outlets as LaPatilla.
On the [interim President] Maduro front, his non-campaign campaign appearances [last] week were framed both as formal State functions, as acting president of the republic, and as strictly electoral events, as candidate for president of the republic: a mass rally to graduate community doctors, broadcast en cadena nacional [where a program is broadcast on all channels], (in which he led the crowd to sing a rousing version of Cuba’s National anthem), a live TV event in Apure to give loans to farmers (while wearing a cool hat), another live TV broadcast to address political allies, a third live TV visit to an oil site in Monagas (oil workers broke out into spontaneous song, musical instruments included). These do not include Sunday night’s TV address to welcome newly-added supporters to the high-profile farandula chavista sphere (he blamed the opposition for the electrical failure), or the spiritual homage to commemorate nine days after Chávez’s farewell ceremony.
Substantively, talking points worth mentioning, Maduro-wise, are his defensive stances towards those who criticize him for mentioning Chavez a whole bunch (“I feel guilty, I should mention him a million times.”), insults to Capriles [...], and finally, an interesting focus on crime.
Having acknowledged in several public speeches that crime is a big deal, Maduro based his call to action, around the colloquial “vamos a echarle bolas entre todos” [go all out]. He also founded the Movimiento por la Paz y la Vida yesterday, which will receive, via Twitter, suggestions from the general population so that “artists, athletes, doctors, and anyone willing to participate” may pitch in to help bring down crime and raise moral values to help stop violence.
Maduro has also made a point of pitching the launch of so-called MicroMisiones, social programs aimed at targeting inefficiencies in…other social programs. Part of the baroque turn in late-stage chavismo. Take it away, Nico:
"Cuando se detecte algún tipo de ineficiencia, como por ejemplo en el caso de la dirección de una fábrica o de un hospital, se activará una micro misión conformada por un equipo especialmente entrenado donde están expertos en la materia, donde están cuadros políticos comprometidos con el proyecto, donde está la FAN, y ellos juntos intervienen ese objetivo”
"When we detect some kind of inefficiency, such as in the case of the management of a factory or a hospital, we will activate a micro mission comprising of a specially trained team of experts, committed to the political project, and working together with the armed forces (FAN)."
Of course, this round-up gives a false impression of equivalent access. Readers abroad should not be confused, though: Maduro’s y-que-pre-campaign [and-what-pre-campaign] is a million times more visible than Capriles’s – splashed all over the growing state media behemoth, billboards, the metro, everywhere. Capriles’s campaign, largely shut out of mass media, isn’t even that easy to find on YouTube. Así, as the man said, son las cosas [And that's the way it goes].
- Emiliana Duarte is a writer for Caracas Chronicles, the place for opposition-leaning-but-not-insane analysis of the Venezuelan political scene since 2002.
- Insight Crime researches, analyzes, and investigates organized crime in the Americas. Find all of Patrick Corcoran's research here.
Prominent conflict analysis NGO International Crisis Group (ICG) issued its first report examining Mexico’s security challenges, providing a broad overview of the shortcomings and the successes of Calderon's government.
ICG has built a reputation for analyzing some of the bloodiest and most intractable political conflicts on the planet, from Colombia and Guatemala, to Syria and Iraq. Now, with a new report, "Peña Nieto's Challenge: Criminal Cartels and Rule of Law in Mexico," the NGO has turned its gaze toward Mexico as well, an implicit acknowledgement of the degree of the decline in the nation’s security.
The 52-page report includes sections that examine the nature of Mexico's criminal groups, the policies of former President Felipe Calderon, and the consequences of Mexico's spike in violence. The report also includes an extended look at the lessons that may be drawn from the drastic decline of Ciudad Juarez, and the city's subsequent rebound.
InSight Crime Analysis
ICG makes it clear why Mexico's transnational criminal organizations, labeled "criminal cartels," are chasing the huge profit margins available from trafficking various illegal substances, especially cocaine:
A kilo brick cost about $2,400 in Colombia, $33,300 when sold wholesale in the U.S. and some $120,000 when sold 'retail' on the streets of U.S. cities. In trafficking and distribution, the parts dominated by Mexican traffickers, the price rose 50-fold.
Popular conceptions of Mexican drug trafficking – such as the mountain-based drug capos celebrated in the "narcocorridos" – revolve around these transnational groups. However, this conception of powerful cartels pulling all the strings of the drug trade is no longer enough to describe the complexity of Mexico's security problems. In recent years, a wide range of other criminal activities, from oil theft to extortion, have displaced drug trafficking as the major money-maker for criminal organizations.
And as InSight Crime has pointed out , the gangs behind much of Mexico's violence are not limited to the so-called "criminal cartels." Smaller regional gangs have steadily eaten away at the absolute control of groups like the Guadalajara Cartel of the 1980s or the Juarez Cartel of the 1990s.
Calderon's response to these shifting security dynamics was based on a heavier use of the military and aggressive manhunts targeting big-name traffickers, or "kingpins." ICG goes on to argue that this approach – regardless of the financial and operational support received from the US– was insufficient to tamp down on the growing levels of violence linked to drug trafficking when Calderon assumed office. Likewise, the security and justice reforms initiated under Calderon have done little to deal with the immediate threats to Mexican security, although they may have laid the foundations for long-term improvement.
Indeed, rather than limiting the damage, Calderon’s policies seem to have escalated the scale of the fighting. The impact is visible on the streets in a growing number of cities, and is reflected by the corruption of an increasing number of government institutions.
In terms of Calderon's successes, ICG takes a long look at Juarez, the Chihuahua border town that was the nation’s most violent city for most of the president's tenure, topping out at more than 3,000 murders in 2010. This surge in violence was due in part to a long-standing battle between the Sinaloa Cartel, led by Joaquin "El Chapo" Guzman, and the Juarez Cartel for control of the key border crossing.
But, as InSight Crime has reported , it also stems from the presence of hundreds of local street gangs that worked for the two cartels and served to accelerate the intensity of the larger conflict. Since 2010, however, violence has fallen dramatically. Murders in October 2012 were almost 90 percent lower than the corresponding figure from two years prior, making Juarez one of Mexico's undeniable success stories.
Determining the sources of the improvement has proved trickier than explaining the causes of the violence, but the ICG report mentions a small handful. One is the arrest of particularly violent local commanders, such as Jose Antonio Acosta and Noel Salgueiro, who had commanded death squadrons responsible for hundreds, if not thousands, of deaths since the war started in 2008. Another explanation is that Guzman has simply won the fight, and the forces loyal to the Juarez Cartel have lost the capacity to continue fighting.
ICG highlights certain aspects of Calderon's policies which may have helped ease the bloodshed in Juarez. First, the social programs of Todos Somos Juarez (which kicked off in 2010, backed by the Calderon administration), flooded the city with federal cash, giving at-risk youth substantial resources to help them avoid the lure of street gangs. Second, the local police, under the leadership of new boss Julian Leyzaola, took on a much more prominent role, and has been aggressive in implementing something like a zero-tolerance policy toward petty crime. This has not been without its side effects – the number of residents who have passed through city jails has exploded, and there have been accusations of abuse by local police – but Leyzaola’s tenure has coincided almost exactly with the decline in murders.
Insight Crime researches, analyzes, and investigates organized crime in the Americas. Find all of Patrick Corcoran's research here.
• A version of this post ran on the author's blog, bloggingsbyboz.com. The views expressed are the author's own.
Last Friday, the OAS voted to reform the Inter-American Commission on Human Rights (IACHR). Most importantly, the organization managed to push back against a set of cynical and harmful proposals by four countries – Bolivia, Ecuador, Nicaragua, and Venezuela – that would have weakened the organization and reduced its funding sources. Those four countries ended up isolated from the other 30 voting members of the OAS who remained committed to strengthening the Inter-American human rights system.
Sources: AQ, Pan-American Post, IPS.
Ecuador wanted the system to be funded only by countries that have signed the San Jose Pact and wanted all the rapporteurs funded equally. This would have eliminated most of the funding for the IACHR coming from the US, Canada, and Europe without guarantees of pledges to replace that money. It also would have weakened the Special Rapporteur on Freedom of Expression, a particular thorn in the side for Ecuador's censorship-loving president.
Of course, the ALBA criticisms aren't actually about funding. The ALBA countries tried to weaken the IACHR because they are annoyed that any independent outside organizations criticizes their abuses of human rights and free speech.
So, good on the rest of the Americas including the US, Brazil, and Mexico for working to stop those proposals from being implemented. All three of those countries have all recently faced tough criticisms from the IACHR, making it notable that they still defended the commission at this session.
From the speech of Deputy Secretary Burns:
This is why we actively respond to the Commission even as it raises challenging issues for us – from the death penalty and the human rights of migrants and incarcerated children, to the status of detainees at Guantanamo Bay. And this is why we continue to collaborate with the Commission – including its recent on-site visit to immigrant detention facilities in the United States.
We do this not because we always see eye to eye with the Commission. We do it because we are secure in our commitment to democratic principles and in our conviction that we are accountable to our citizens for the protection of their human rights. We do it because we believe that no government should place itself beyond international scrutiny when it comes to the protection of basic human rights and civil liberties.
Strong words that I absolutely agree with. However....
On March 12 the US formally answered questions to the IACHR about the detainees held at Guantanamo Bay. At that time, the US lawyer did not provide any timeline for closing the detention center and refused to admit anyone is being held in "indefinite detention," though the fact they are held without trial and without a potential release date seems to be the definition of that term. Though the US defended the conditions of the prison, as far as I can tell, no representative from the IACHR has been allowed to visit.
On the issue of immigrant detentions, here is the IACHR in July 2009 based on its visits to detention centers (longer report released in 2011):
Finally, the Rapporteurship was distressed at the use of solitary confinement to ostensibly provide personal protection for vulnerable immigrant detainees, including homosexuals, transgender detainees, detainees with mental illnesses, and other minority populations. The use of solitary confinement as a solution to safeguard threatened populations effectively punishes the victims. The Rapporteurship urges the U.S. Government to establish alternatives to protect vulnerable populations in detention and to provide the mentally-ill with appropriate treatment in a proper environment.
Here is the NYT yesterday:
On any given day, about 300 immigrants are held in solitary confinement at the 50 largest detention facilities that make up the sprawling patchwork of holding centers nationwide overseen by Immigration and Customs Enforcement officials, according to new federal data. Nearly half are isolated for 15 days or more, the point at which psychiatric experts say they are at risk for severe mental harm, with about 35 detainees kept for more than 75 days.
Four years after the IACHR visited the immigrant detention facilities and spoke out against the practice of solitary confinement, the article in the NYT from 2013 reads just like the IACHR report from 2009. Nothing has been done to respond to those criticisms.
The US gets credit for fighting back against the ALBA countries' push to silence the IACHR. The commission provides a needed voice for the hemisphere's human rights. Over the past month, with the purpose of protecting and strengthening human rights in the hemisphere, I've heard US officials praise Brazil, Mexico, and Uruguay for listening and acting on the recommendations of the IACHR. The sad truth is that the US praised those other countries because the US hasn't acted on many of the important criticisms that it has received from the IACHR. It's part of the credibility gap that the US faces in this hemisphere.
After just over 100 days in office, two story lines are emerging about Enrique Peña Nieto: one says that the new Mexican president is subtly continuing his predecessor’s "war on drugs;" the other that he is backing off, creating the conditions for a more "peaceful" underworld.
Statistically, there has been no significant change in homicides. In fact, according to Reforma's homicide count, released in mid-March, there has been a slight uptick in organized crime related murders around the country. According to the paper, there were on average 23 "drug-related homicides" per day during the first 100 days of Peña Nieto's administration, compared to 21 per day during the last 100 days of previous President Felipe Calderon (Reforma classes homicides as drug-related based on type of weapon; style of the execution; markings and messages near the body or bodies; presence of drugs; and official reports connecting the deaths to organized crime.)
Military troops are also present in similar numbers and in virtually the same areas as before Peña Nieto became president on Dec. 1. Federal police continue to patrol many of the same cities, and the administration says that it is continuing with its plan to create a gendarmarie, a 10,000-strong special police force. The government also continues to transform the country's justice system from a written inquisitorial to an oral adversarial system, purge police units, and centralize most security bodies into a single authority (under the Interior Ministry, instead of the now-defunct Public Security Secretariat - SSP).
The government has said it will shift its attention to prevention programs, but much of the funds assigned to these programs were already designated during the Calderon administration. In fact, it is difficult to tell which are the new programs and which are the old ones in what the government said was a $9 billion plan.
What has changed is the rhetoric that accompanies this strategy. The Peña Nieto administration is talking about "peace," and has almost completely stopped speaking about the fight against organized crime. About the only remnant of the past is this administration's penchant to deem the victims "criminals," language that got the previous administration in hot water with civil society organizations.
There are, however, some subtle shifts occurring that warrant continued observation, and may signal a more significant change from the last administration than just softer rhetoric.
First, the number of investigations into "crimes against health" is at its lowest point in the last 15 years. Most "crimes against health" are drug trafficking crimes. This is a federal offense in Mexico, and an increase in these cases under Calderon helped cause a spike in the federal prison population.
According to data collected by Carlos Vilalta, an investigator at the Center for Economic Research and Teaching (CIDE), authorities initiated 783 investigations for "crimes against health" in December 2012, and 826 in January 2013.
Compare this with the Calderon administration's first two months in office, with 10,416 investigations for "crimes against health" initiated in December 2006, and 10,901 during January 2007. In fact, during his six year term, Calderon's administration averaged 6,567 investigations into "crimes against health" a month (See InSight Crime interview with Carlos Vilalta).
Two months is too little time to draw any definitive conclusions on this type of data, and, as is evident in the graph [see original post], the decline in drug investigations began before Peña Nieto took power. But Vilalta says the first two months is a good indicator of where this may be headed. It is possible that the government is lessening the pursuit of criminals on drug charges, perhaps as part of a strategy to draw back the war on drugs.
What's more, it may already be having an impact. While it may be difficult to imagine a "narco-pact" of the type that make Mexicans nostalgic about 1980s and 1990s, when criminals were broadly left to their own devices in exchange for keeping violence low, there are some strange narco-smoke signals that have emerged in recent days that give even the most skeptical amongst us pause.
Take the declarations of the Knights Templar (Caballeros Templarios), via strategically placed narco-banners in their stronghold of Michoacan state. The Knights are one of the more combative of the large criminal organizations. They once organized a series of synchronized attacks on several police stations in Michaocan, which included rocket-propelled grenades and .50 caliber shotguns.
In their banners, the group said they were retreating. "Beginning today," the banners read, "we will leave the care of society in the hands of the municipal, state and federal authorities."
Also, in recent days, authorities announced a gang truce in Guadalajara between some of the city's toughest gangs. While very much a local initiative, the truce, if it is really in place, is another illustration that there may be another plan, one that most are not seeing or hearing, but one that may lead to a slight reprieve from the violence.
When he came to power, Peña Nieto promised lower levels of violence, and this week he appealed to the public to judge his policies after one year had passed. Still, we may be getting an early glimpse of how he plans on reaching his goals, which may be trying to please too many people at once and may end up pleasing no one at all.
These shifts, especially with regards to drug prosecutions, may delight those who are calling for "harm reduction" in Mexico's war on drugs but only if they are reducing arrests of petty drug offenders.
As the Transnational Institute (TI) describes it, harm reduction would mean prioritizing "interventions that reduce the harms associated with the existence of drug markets while avoiding those harms stemming from traditional supply reduction efforts themselves." In this case, less arrests of petty drug offenders would help reduce the harms associated with heavy-handed attempts to reduce the supply. (TI has a useful interactive map to show where harm reduction is being implemented worldwide.) To be clear, the harm reduction proponents are certainly not asking the Mexican President to stop jailing the big, violent narcos.
However, it is not clear that this is the current Mexican administration's strategy, and Peña Nieto is walking a fine line with both sides of the debate. On the other side of that debate is the United States, the world's policeman when it comes to drug policy. The United States was a big proponent of Calderon's strategy and perhaps his biggest fan in the region. Now, if the United States senses that Peña Nieto's strategy is less about a strategic shift in policy and more about capitulation to large drug trafficking interests, then relations could become more tense than they have been in years.
– Steven Dudley is a director at Insight – Organized Crime in the Americas, which provides research, analysis, and investigation of the criminal world throughout the region. Find all of his research here. Additional reporting provided by Andres Ortiz Sedano.
• A version of this post ran on the author's blog, centralamericanpolitics.blogspot.com. The views expressed are the author's own.
The Network in Solidarity with the People of Guatemala (NISGUA) is providing daily updates on the genocide and crimes against humanity trial against Efrain Rios Montt and Jose Roriguez Sanchez. From day three:
Hours of intense first-person accounts of violence and endurance left impressions of profound grief: "They killed our fathers, our mothers, and everything we loved," said one witness; as well as resolute purpose: "I am one of the few survivors. Perhaps I was sent to be the messenger of the story here."
In all 12 witnesses were called to the stand to be questioned by lawyers for the prosecution and the accused. Most spoke with the aid of court-appointed Ixil Maya translators; one witness, Alberto López, was unable to deliver his testimony due to the lack of a K'iche' Maya translator and will be given another opportunity to take the stand in a future hearing. Among the witnesses were leaders of the Association for Justice and Reconciliation, the survivors' organization which first opened the genocide case more than a decade ago, including current AJR board member Domingo Raymundo Cobo and former board members Francisco Raymundo Chavez and Gaspár Velasco.
The Open Society Justice Initiative is also providing regular updates here.
The Latin Americanist has Guatemala: Witnesses Recall Horror and Heartache at Rios Montt Trial.
Phil Neff has a post on the black humor surrounding the trial in Chapín black humor meets the Guatemala genocide trial.
James Rodriguez has photos of the trial at MiMundo.
Victoria Sanford has an opinion piece in Plaza Publica that originally appeared in El Faro on El genocidio no es un enfrentamiento armado. In it, she criticizes President Otto Perez Molina and other who deny that genocide occurred. But while Boz, Victoria, and I believe that genocide did occur in Guatemala, it's more difficult to prove than crimes against humanity. See Boz from a few weeks ago.
It's a legal question that the judges will have to decide.
Honestly, I hope that should the generals be found not guilty of genocide and/or crimes against humanity, people don't run to the hilltops shouting that this is another example of impunity in Guatemala. The lead judge, Jazmin Barrios, appears to be a judge of integrity who is committed to the law. She has already worked on cases in which human rights violators were found guilty and punished. She stuck to the court's timetable to have the case moved up five months. She and her fellow judges also played hardball with Efrain Rios Montt and his defense counsel as they tried to have her removed from the case.
– Mike Allison is an associate professor in the Political Science Department and a member of the Latin American and Women's Studies Department at the University of Scranton in Pennsylvania. You can follow his Central American Politics blog here.
Mexicans drink more refrescos, or soda, than people in just about any other country, according to new research.
Stacks of glass-bottled sodas – orange pop, purple non-alcoholic sangria, Coca-Cola – are omnipresent at food stands across Mexico City, where busy workers stop for quesadillas or tamales and are as likely to down a soda at breakfast as at lunch and dinner.
But too much soda is morbidly dangerous, the American Heart Association says, based on a new analysis of data collected during the 2010 Global Burden of Diseases Study. It linked consumption of sugary drinks to diabetes and obesity-related deaths, and Mexico ranks No. 1 in the world.
Researchers looked at the relationship between the quantities of sugary sodas, sports drinks, and fruit drinks consumed and the prevalence of obesity and diabetes. Latin America and the Caribbean topped nine world regions studied, with 38,000 fatalities annually.
The study linked sugary drinks with about 180,000 deaths worldwide each year.
Mexicans chug 43 gallons of soft drinks per person, per year, versus 31 gallons per person in the United States, the world’s No. 2 consumer, according to Yale University’s Rudd Center for Food Policy and Obesity.
More than 9 million Mexicans suffer from diabetes, according to the latest health ministry data. And nearly a third of the population is overweight or obese. A separate study earlier this month by Stanford University and the Universities of California at Berkley and San Francisco resulted in similar findings: that consuming just one bubbly drink per day could increase the risk of developing Type 2 diabetes.
The trend is not unique to Mexico. Across Latin America, both the low cost of sugared drinks and lack of public health education have been an issue. Parents will fill their babies’ bottles with “fruit” refreshments that may cost less than the real thing – fresh-squeezed orange or grapefruit juice, for example – and have few natural ingredients and far more sugar than meets the eye.
Mexico’s health ministry has been campaigning to educate Mexicans about the dangers of obesity and diabetes and is encouraging prevention through healthy eating habits and regular exercise. Although Mexican law prohibits the sale of sodas and junk food inside schools, vendors of fried snacks and sodas frequently roll their colorful carts up to the door before the end of the school day. In other countries, like the Dominican Republic, an emphasis has been put on getting citizens to exercise though free exercise classes in public parks.
While most developed nations struggle to weather financial storms, Latin America has been riding out the choppy economic waters thanks in large part to a wave of high commodity prices and active monetary policies.
But in a report released Sunday, the Inter-American Development Bank (IADB) is warning that the region faces weaker economic growth in the next five years as commodity process drop and governments face higher fiscal deficits.
The IADB’s top economists forecast annual growth for Latin America and the Caribbean over the next five years to be 3.9 percent, almost a full percentage point lower than the 4.8 percent growth seen in the five years before the 2007 global recession.
“Bonanzas are not eternal,” said IADB President Luis Alberto Moreno at the bank’s annual meeting in Panama.
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“Lower commodity prices imply a drop in the terms of trade for most countries in the region and, therefore, a negative shock to income,” the report said.
The rate of growth for investment is also projected to fall from 10 percent to just 5 percent annually, according to the report. Lower investment will make it harder for countries to tackle one of the main obstacles to economic growth – poor infrastructure – which could mean there's an additional risk that "growth would be lower than indicated in these projections.”
Many of the countries in the region relied on expansionary monetary policies, such as increasing the money supply or targeting interest rates, to spur growth during the worldwide economic downturn. But the IADB suggests that governments tighten fiscal policy in order to give themselves more wiggle room in a downturn.
“It is not a question of using fiscal and monetary policies today to counter a negative shock and bring growth in the region up to its potential,” José Juan Ruiz, the IADB’s chief economist said.
“We need to find measures to increase our potential rate of growth.”
Such measures to foster economic growth should include structural reforms, which the report says will vary from country to country according to particular needs. However, in general, the report suggests a focus on reforming labor markets to formalize the work of 56 percent of the Latin American workforce that functions outside the formal economy. Another suggested focus is on the region's “deficient infrastructure,” which is a “constraint on economic growth,” the report said.