Chile declares day to honor victims of dictatorship
Chilean President Michelle Bachelet declared October 30 National Day of Victims of Political Execution, in memory of thousands killed by the regime of dictator Augusto Pinochet.
“This day is, without doubt, (dedicated) to those who were victims of intolerance and violence,” Bachelet said on Friday as she signed the decree referring to the nearly 3,000 people who were murdered, or kidnapped and likely killed for political reasons during Pinochet’s 1973-1990 rule.
“We thought it was an important and relevant way to be mindful of our compatriots who fell victim to the harshness of an age that must not be relived, and to yet again reaffirm our commitment to upholding human rights at all times and everywhere,” she said in an address to relatives of the victims.
The honor, she added, was aimed at “preserving the memory of what happened to our society, so that new generations learn the lessons from history and make a moral commitment to prevent the same mistakes, the same horrors.”
The Bachelets were among the victims the Pinochet regime’s cruelty.
The president’s father, air force general Alberto Bachelet, died in prison after he was detained by Pinochet agents, accused of treason and tortured.
Michelle Bachelet and her mother Angela Jeria were detained illegally, and after their release fled the country to exile. The younger Bachelet returned in 1979.
Two years ago, Bachelet, whose single term ends March 11, also established the National Day of the Disappeared, which is commemorated on August 30.
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Tickets going fast for Chile’s match vs. Ecuador
Chile is on the verge of qualifying for its first World Cup since 1998, and fans lined up Thursday for tickets to what could be a momentous game. Thousands snapped up the first tickets on sale for the Oct. 14 game against Ecuador. The match could decide which team, if any, makes it to next year’s World Cup in South Africa. Ecuador is trying to qualify for its third straight World Cup.
Brazil and Paraguay have qualified for two of the four automatic qualifying spots from South America. Chile has 27 points and Ecuador has 23. Argentina is in fifth place with 22.
Chile plays at Venezuela on Oct. 10. A victory in that match would ensure Chile a spot, leaving the Oct. 14 game as a more critical showdown for Ecuador.
The team finishing fifth in South American qualifying faces a two-game playoff with the No. 4 team from North and Central American and the Caribbean for another berth.
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Latin America Increases Military Spending As Poverty Grows Worse
Leaders of Latin American nations have embarked on record military spending, while their citizens face the worst level of poverty in years.
Tension between neighboring countries and the Colombian government’s decision to forge closer ties with the United States in its fight against drugs have fueled what some are calling an arms race.
“This trend is worrisome,” said Peruvian Foreign Minister José Antonio García Belaunde. “It’s hard to understand why countries are spending so much on arms purchases because this has traditionally been a peaceful region’’ (Miami Herald).
Massive arms spending includes an air defense system, combat aircraft and tanks for Venezuela, as well as military aircraft for Chile and Ecuador. Other countries in the region have also increased their military budget.
“In 2008 the 12 South American countries together channeled more than $50 billion into military expenditures, about 30 percent more than in 2007. Most prominent among countries where arms buying went up are Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay and Venezuela” (UPI).
As governments purchase expensive weaponry, many of their citizens are living below the poverty line.
The SOS Children’s Village—which describes itself as “an international non-governmental social development organization”—reported that thousands of families in Guatemala are in a desperate situation as the global downturn triggers serious food shortages. It further said that some 54,000 families are already going hungry, while 400,000 others are at risk of running out of food; 50 children have died of chronic malnutrition this year.
“The tragedy for the region, in addition to the fact that countries should use much of that money to help reduce poverty at home, is that each nation’s arms purchases makes its neighbors nervous—and moves them to buy weapons themselves
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Chile invites Peru to disputed military exercise
The Chilean air force said Tuesday it has invited its Peruvian counterpart to send observers to military maneuvers that Peru has interpreted as threatening and wants canceled.
The air exercise is set for late October in an area of northern Chile near Peru and is to include participation by the air forces of the United States, France, Brazil and Argentina.
“The government has complete control of the maneuvers over solely Chilean territory. To show our transparency in the matter, the Chilean air force has invited the air force of Peru to send inspectors to witness these maneuvers,” Chilean Defense Minister Francisco Vidal said.
Peru’s defense secretary, Rafael Rey, called earlier this month for Chile to suspend the exercise “to avoid misinterpretations.”
Peruvian leaders have expressed concern over the maneuvers because the “story line” involves a military clash with a fictitious country that refuses to abide by international treaties. Peru refuses to recognize maritime borders with Chile.
Gen. Richard Ortega, comander-in-chief of the Chilean air force, said the invitation was extended to Peru to avoid this type of friction.
Tension between Chile and Peru has grown since the beginning of the year, when Peru announced it would take the border dispute to the International Court of Justice.
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Chile May Cut Investment Barriers to Boost Trading
Chile will seek to ease access to capital markets for foreign investors and authorize new financial instruments such as covered bonds to increase trading, Finance Minister Andres Velasco said.
A bill with the changes will be sent to Congress this week. The government wants to broaden tax breaks for foreigners, allow exchange-traded funds and promote investment in mutual funds and securitized debt. Rules on venture capital may also be eased along with help for smaller companies to access financing.
“Everything that encourages competition is good,” Velasco told reporters today in Santiago.
Velasco says he wants to position the country, which has $100 billion of assets under management, as a regional financial hub where foreign companies will be encouraged to list stocks and sell bonds in the local market. Chile should become an exporter of financial services, he said.
“Chile, being quite stable politically, having excellent economic management, highly educated and skilled employee base, they have a chance to do it.” said Roberto Lampl, a fund manager in The Hague for ING Investment Management, which oversees about $12 billion in emerging-market assets. “No other exchange in the region has done it.”
Velasco said he plans to make mutual funds tradable on the secondary market and introduce exchange-traded funds.
Foreign investors will be able to buy stakes in funds with holdings in Chile and abroad, and only pay tax on dividends from Chilean companies. The currently pay tax on all dividend income. To ease access to Chile by foreign fund managers and brokers, Velasco proposes removing quotas for employees that force finance companies to hire 85 percent of their specialist staff locally.
Bonds Sales
Companies will be able to sell international bonds in pesos — in the so-called offshore market — which they can’t do now. The goal is to make the Chilean peso a more widely traded international currency, Velasco said.
The Finance Ministry’s proposal would allow banks to sell covered bonds backed by a pool of mortgages. The new bonds will lower costs for banks financing home loans, Velasco said.
The ministry also plans to force local banks to offer standardized loans and mortgages to make it easier for consumers to compare products.
“Before you can compete internationally you must first have local competition,” Velasco said.
Corporate bond sales in Chile grew to a record in the first half of the year as foreign companies, including Mexico City- based America Movil SAB, the region’s biggest mobile phone company, tapped institutional investors such as pension funds.
Companies sold $3.2 billion of domestic bonds in the first half because domestic funding was cheaper than going abroad, the central bank said in a July report.
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