Boric presents new tax reform
Aug. 2, 2023
Chilean President Gabriel Boric presented a new push to raise taxes, yesterday, which he described as a “fiscal pact.” The government hopes the reform package will deliver $8 billion to finance social spending.
Following legislative defeat of a signature reform bill in March, Boric said the new proposal will be presented in two separate bills, reports Reuters. Boric had previously said he would double down on the rejected reform.
One bill aims to raise 1.5% of GDP by improving tax compliance by modernizing tax collection, fighting tax evasion and reducing the amount of informal, untaxed work. The other will reform income tax on individuals and companies, raising taxes on high-income earners.
Since the March legislative setback, Chile’s Boric administration government has regrouped and held talks with political parties, small businesses and large enterprises in efforts to reach consensus. Still, the government “has so far failed to overcome skepticism from the opposition in a deeply divided legislature,” reports Bloomberg.
Bukele deploys 8,000 troops in Cabañas
El Salvador’s government deployed 8,000 troops to the central Cabañas department, where they established a security perimeter aimed at flushing out gang members allegedly hiding in the rural region which is larger than New York City.
The militarization of the region will cut off gang supply chains, Bukele said on social media. It is the latest development in his ongoing crackdown on street gangs under a state of exception declared a year and a half ago.
Brazil
The Brazilian government’s crackdown on illegal mining in Yanomami territory has been positive, but affected communities continue to live in fear, battling a legacy of violence, destruction and disease, according to a new report released by three Indigenous organizations. “The report is a plea for help from the Yanomami as they continue to suffer from malnutrition and infectious diseases while dreading a possible return of the expelled miners,” reports the Guardian.
Violence against Indigenous people in Brazil multiplied exponentially during former President Jair Bolsonaro’s mandate: 795 individuals were killed, 180 of them in 2022, according to theIndigenous Missionary Council’s annual report. The increase in violence of 54% over the previous four years is directly linked to Bolsonaro’s dismantling of environmental and Indigenous protection policies, according to the report. (El País)
Indigenous land administration is a key bulwark against deforestation, according to recent studies. A recent study by the World Resources Institute Brasil found that adopting bio-economic models based on the replication and expansion of arrangements that already exist in Indigenous territories could increase the Brazilian Amazon economy’s gross domestic product by $8.4bn, create 312,000 jobs and increase the forest’s carbon stock by 19 percent, reports Al Jazeera.
Migration
Illegal crossings along the U.S. southern border increased more than 30 percent in July, according to preliminary U.S. Customs and Border Protection data obtained by the Washington Post. The data is a blow to the Biden administration’s new immigration enforcement strategy, which created legal pathways for some migrants to enter the country and implemented new penalties and deportations for those who cross illegally.
Haiti
Some experts have questioned Kenya’s offer to lead an international security mission to support Haitian police, reports the New York Times. Though Kenya has experience in international peacekeeping missions, the language barrier is a significant issue, and Kenyan police have a checkered human rights record. (See yesterday’s post.)
The Bahamian government welcomed Kenya's offer, yesterday, and committed 150 people to support the effort if the United Nations authorizes the force. The Bahamas' statement echoed comments from Kenyan Foreign Minister Alfred Mutua, who described the security intervention as an opportunity to stand "with persons of African descent across the world,” reports Reuters.
Guatemala
Guatemalan President Alejandro Giammattei met with the Organization of American States chief Luis Almagro, yesterday, and expressed his commitment to ensuring peaceful elections in the country. (Reuters)
Regional
The latest general assembly meeting of the International Seabed Authority in Jamaica effectively delayed the start of any deep-sea-mining operations but also postponed discussing a moratorium on such extraction efforts — Just Caribbean Updates.
Climate risk insurance proposals, aimed at ensuring communities against economic losses caused by climate impacts, have gained traction in climate negotiations. But some countries, including Barbados, argue that climate risk insurance might not work as expected and are reluctant to rely on a private, profit-driven sector for support, reports Politico. (Just Caribbean Updates)
Nicaragua
The Green Climate Fund has suspended payments to a $117 million forest protection project managed by Nicaragua’s government due to human rights concerns — the first time the GCF has halted an approved project over such concerns, reports Climate Home News.
Regional
Over 50 scholars, including renowned economists such as Jayati Ghosh, Ha-Joon Chang, Martín Guzmán, and Jomo Kwame Sundaram, sent a letter to U.S. Senator Bob Menendez arguing that U.S. sanctions greatly harm civilians in Cuba and Venezuela, and thereby drive migration to the U.S. — CEPR Sanctions Watch
Colombia
Colombian President Gustavo Petro’s eldest son, Nicolás, pled not guilty to charges of money laundering and illicit enrichment, yesterday. He is accused of receiving money from accused drug traffickers in exchange for including them in the president's peace plans, reports Reuters. The charges have raised questions about the financing of Gustavo Petro’s 2022 presidential campaign, reports the Associated Press. (See Monday’s post.)
Colombia is the fourth-largest palm producer in the world — a new study examines case studies relating to companies accused of deforestation and causing socio-environmental disputes. Experts say there is a lack of progress in Colombia’s palm oil supply chain traceability, reports Mongabay.
Dominica
Dominica is at risk of losing its freshwater resource and more calls arise for the creation of a government-operated Water Management Agency, reports the Caribbean Investigative Journalism Network.
Regional Relations
Mercosur officials met on this week to agree on their counterproposal to a European Union addendum to a free trade agreement before meeting with EU negotiators in August in the hopes of closing the accord by year-end, Brazilian diplomats told Reuters.
“Brazil has resisted gathering momentum in the BRICS group of major emerging economies to add more member countries, but debate over admission criteria seems inevitable at this month's summit, three Brazilian government officials told Reuters.”
Costa Rica
Costa Rican fiscal reform bills presented by President Rodrigo Chávez in May include approving a new income tax, eliminating specific value-added tax exceptions and granting greater control, a corporate income tax and inspection powers to the tax authority. — Latin America Advisor
Mexico
Mexico has unexpectedly become an electric vehicle manufacturing hub in the past two years, thanks, to a confluence of factors, including rising wages in China and continuously splintered supply chains, reports Rest of World.
More Chile
Nicole Kramm Caifal is a documentary film-maker, producer and freelance reporter based in Chile discusses a photograph she took of a woman facing off against a police officer during protests in 2018. (Guardian)
Fútbol
Colombia's dramatic 2-1 victory over twice world champions Germany in Sydney was one of the great Women's World Cup upsets — and Colombia’s fans set a new benchmark for support in the stadium, reports Reuters.