Latin America News Roundup Nov 30, 2011: Argentina, Colombia, Cuba

article from November 30, 2011

By Jamie Douglas

Argentinean Holidays

Being a worker in Argentina in 2012 certainly has its benefits. Out of the 366 days next year, 122 will be official holidays and weekends, precisely one third of the whole year, assuming that the end of the world will not surprise us all. There will be a total of 10 fin de semanas largas, or 3-day weekends, with the possibility of an eleventh one to celebrate the bicentennial of the Argentinean flag on Monday, Feb 17. That last one is pending approval of a bill in the lower house, after the Senate approved it already.

Add to that the vacation days that are written into the law, and the average worker productivity will be down, forcing manufacturers to hire more workers, something that is great for the economy, driving down unemployment and raising income tax receipts. Oh, sorry, I almost forgot! It doesn’t work that way. Few people actually pay taxes, and employers will probably just force their workers to be more productive. Have another mate, mate, and then get back to work.

Venezuela-Colombian cooperation on drug kingpin capture

The short and violent criminal career of Colombian bad boy Maximiliano Bonilla-Orozco has come to its inevitable conclusion. No, he is not dead, but he has just been apprehended in Venezuela’s third-largest city, Valencia. Bonilla-Orozco has been on the US’ list of most wanted drug kingpins for a while. It is alleged that he was the mastermind behind sending several hundred tons of cocaine from Colombia to the US and sending millions of dollars back through Mexico.

Perhaps not so coincidentally, the capture was made on Sunday while Colombian President Juan Manuel Santos was on a state visit to that very country. Santos thanked his Venezuelan counterpart, President Hugo Chávez, for his country’s invaluable assistance in the capture of the very high-value drug trafficker who has wrought so much damage in many parts of the Americas.

The captured narco received his drugs from the Ejercito de Liberacion Nacional (ELN) and has had extensive dealings with the Zetas, the ultraviolent Mexican gang of former military commandos. The US had a $5 million reward out for his capture, but Venezuelan officials announced that they will not claim the reward, stating that he will be extradited to the US as soon as the yanquis are ready for him. Bonilla–Orozco was indicted in New York in 2008. This comes as somewhat of a surprise to US officials, as Venezuela discontinued its anti-drug cooperation with the US in 2009.

Cuba’s privatization moves

Raúl Castro keeps surprising not just seasoned Cuba watchers, but also his long-oppressed compatriots. It is looking like the Pearl of the Caribbean will slowly get back to private ownership of businesses, automobiles and property. With the latest announcements coming from Castro, the road ahead for private enterprise looks promising. After over 50 years of the island’s Soviet-style central planning and execution, the president of the island nation has come to the logical conclusion that even at the very low salaries paid to state workers, having millions of underperforming but unfireable workers on the state payroll is a drain on the already-strained economy. President Raúl is encouraging the formation of small businesses, hoping they will hire as many as one million workers away from government payrolls.

While his ultimate goal is to strengthen Cuba’s communism with these changes, it appears more like the grassroots of a new socio-capitalistic society that, once it takes hold, will become the base for future economic development. Enterprising minds in the country are already planning and hoping for more relaxed rules that will allow the human spirit to soar once again on that incomparably beautiful island.

One of the major drawbacks has been the lack of capital available to potential entrepreneurs, but that is all about to change. As an early Christmas present, new banking and credit regulations will take effect on December 20, 2011, presenting for the first time the opportunity for farmers, small businesses and individuals with good ideas to obtain financing and to be able to open commercial bank accounts, a prerequisite for doing business with the government.

Cuba’s potential is vast. The islands citizens are very industrious people, having learned to make do with very little for more than 50 years. Being so close to Florida and having such a large underutilized labor pool, the possibilities of industrialization are very high. All it takes is for some of the US right-wing politicians to realize that the potential for their patrons, the large corporations that got them elected, is immense, and that the children of Cuban robber barons who fled to Florida should get used to the fact that they, too, live in a changing world. You can never go back, baby! Cuba of the 1950s is gone forever.

Jamie Douglas

San Rafael, Mendoza

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.