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Inequality and COVID-19 in Latin America

COVID-19 in Latin America
Latin America is a place of diversity, rich culture and history. However, Latin America is one of the most unequal regions in the world. The impacts of COVID-19 in Latin America have amplified these inequalities. 

Impact of COVID-19 in Latin America

The effects of COVID-19 in Latin America have been no exception to the gaps that exist in society. The role of public social protection policies is more necessary than ever, given the current growth of poverty and the increase in the social gap with the vulnerable population.

The Latin American region is one of the areas that the COVID-19 pandemic has most impacted. As of April 14, 2021, the region accounted for 19.3% of all world cases of COVID-19.

According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), the region has experienced the worst crisis in the last 120 years, with GDP falling by 7.7% in the entire region during 2020. Likewise, the unemployment rate increased to 10.7% in 2020. The rise in unemployment caused an increase in poverty of up to 4.4 points, leaving per capita income at 2009 levels across Latin America. 

The Role of Social Protection Policies

The active involvement of governments and institutions is more necessary than ever so that the region does not experience another “lost decade.” There are numerous social protection mechanisms that, through public policies, can reduce or reverse the dramatic impact of the current crisis. Progressive taxes ensure the financing of social programs, including investment in education for the most vulnerable who may see the future threatened. Progressive taxes benefit the distribution of scarce resources. 

Conditioned social policies are some of the social protection instruments that Latin America needs. The empirical evidence says that states that invest the most in social spending are also the most prosperous. Furthermore, there is a positive correlation between HDI and GDP per capita with the percentage of GDP invested in social spending.

Some Answers

At the economic level, the governments of the region have implemented measures to support supply. Low-interest loans provide liquidity to companies. However, the measures adopted marginally do not foster too much demand in crisis and a radical increase in poverty. 

On the one hand, the implementation of subsidies and unemployment insurance by Latin American and Caribbean governments represents a safety net for many families. At the legislative level, the introduction of specific labor laws has been necessary. The regularization of teleworking has been another measure in order not to paralyze the economy. However, greater aid is necessary since digital democratization is not a reality in Latin America. Only 45.5% of the region’s households have a broadband connection. To generate a digital gap it is necessary to strengthen public investment.

Moving Forward

The Organization of American States (OAS) published “The Inter-American Democratic Charter: A Guide to Political Action to Address the COVID-19 Pandemic” in late May 2020. The publication served as a guide to economic and social recovery from a democratic perspective. Subsequently, there have been concerns about the inclusion of vulnerable groups in specific agendas.

The specific agendas underwent reorganization and now have fallen to the background. Although the government is taking necessary steps in social protection, the most disadvantaged should not be left behind.

The disadvantaged include citizens with full rights who are still vulnerable due to structural and historical inertia. According to the World Bank, working women were 44% more likely than working men to lose job positions. The same institution warns that the gender gap in labor force participation may mean an average loss of 14% of GDP in Latin America and the Caribbean as of March 2021.

The scenario poses many challenges ahead. More specific social protection policies are considered a moral duty and an investment by incorporating a large mass of work into the system that consumes and pays its taxes. In any democracy, all citizens must grow together.

– Guillermo Remón
Photo: Pixabay

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10 Facts about Corruption in Honduras

10 Facts about Corruption in Honduras
Honduras, officially known as The Republic of Honduras, is a small country in Central America bordering the Caribbean Sea. The Latin American country has had a rocky political climate since the 1980s and is full of corruption across all levels of government. Here are 10 facts about corruption in Honduras that everyone should know.

10 Facts About Corruption in Honduras

  1. Many Hondurans are fleeing to the United States. At least 350,000 Hondurans have attempted to migrate to the U.S. in the last 10 years to escape the danger, but Honduras has among the highest denial rates for asylum seekers to the United States. The U.S. denies approximately 78 percent of Hondurans legally seeking refuge.
  2. Political corruption is an important factor. Political corruption plays a part in why many Hondurans live in fear or decide to flee the country. Many experts say that political corruption is a big factor as to why there are so many Hondurans fleeing to the U.S. The country has a history of police brutality and one of the highest murder rates in the world.
  3. Politicians are funneling money from nonprofits to fund their campaigns. Univision reported that at least 53 nonprofits are missing funds that politicians are allegedly using to fund political campaigns or buy important votes. The nonprofits raised more than $70 million since 2009 and at least 176 politicians are part of this scandal. This includes President Juan Orlando Hernández who is the President of Honduras.
  4. The presidential election in 2017 caused protests. The Honduras presidential election of 2017 became the cause of protests across the country. When Honduras elected President Juan Orlando Hernández for his second term, many believed the results were fraudulent. Some protests were peaceful, but others took to blockading roads and burning tires. Honduras’ security forces used tear gas and live ammunition against the protesters. This results in the deaths of at least 30 people.
  5. Honduras has the most unequal distribution of wealth in Latin America. Some consider Honduras to be the sixth most unequal country in the world, due in part to policies such as a tax reform that the country implemented in 2013 that seemed to target the poor. Around 64.5 percent of Hondurans live in poverty and 42.6 percent live in extreme poverty. In 2014, the richest 20 percent of those living in Honduras had an 8 percent increase in their wealth, while the poorest 20 percent saw their wealth decrease 7.4 percent.
  6. The public health budget in Honduras suffers as a result of corruption. Studies show that in recent years, 49 percent of the public health budget mysteriously redirected to other unknown causes. The 2018 health budget underspent by the equivalent of about $33 million while hospitals remain in dire need of the funding.
  7. Historically, Honduras has severely misused aid from the United States. The intention of U.S. foreign aid to Honduras was to help President Juan Orlando Hernández in his war on drugs in the region but instead, he used it to fund security and police forces. According to human rights organizations, these security forces in Honduras have been associated with serious human rights violations in the past years.
  8. The U.S. cut funding to Honduras in 2019. In 2018, a slew of immigrants from Central America came together in a caravan of an estimated 8,000 to 10,000 people headed for the United States. As a result of the region’s failure to stop the caravan, the U.S. dramatically cut funding to Honduras, Guatemala and El Salvador. The U.S. cut over $500 million in aid.
  9. An organization called the Organization of American States (OAS) fights to diminish corruption in the Honduran government. The goal of the Mission to Support the Fight against Corruption and Impunity in Honduras is to support Hondurans in fighting against corruption among those in power. Since April 19, 2016, this group has supported investigations into those accused of corruption. In addition, it worked to restore justice by recovering goods or profits unethically gained and give a voice back to the citizens of Honduras.
  10. The mission within the OAS has made impressive strides toward ending corruption in Honduras. Within six months of the creation of the Mission to Support the Fight against Corruption and Impunity in Honduras (MACCIH), it proposed a law called the Law on Clean Politics. The law specified that political leaders be responsible for their finances and that citizens participating in drug trafficking not contribute to political campaigns. This law passed in late 2016.

These 10 facts about corruption in Honduras are evidence that the political climate in the region is rough. However, the security forces loyal to the President of Honduras weakened because the United States cut the funding. Additionally, groups like MACCIH are still working hard to combat corruption and impunity among the Honduran government. Protests continue despite the threat of violence. Also, Honduran activists continue to make their voices heard with the help of the Organization of American States.

– Amanda Gibson
Photo: Wikimedia

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Tackling Corruption in El Salvador

corruption in El Salvador

In 2018, El Salvador received a Corruption Perception Index score of 35 out of 100, with 100 being no perceived corruption. El Salvador ranked 105 out of 108 countries that the index scored. This poor rating is a reason for concern. However, with the establishment of the International Commission Against Impunity in El Salvador in September 2019, there is newfound hope.

Cost of Corruption

Corruption is not just morally wrong, it is also expensive, costing the world at least $2.6 trillion every year according to an estimate by the World Economic Forum. The United Nations Secretary-General, Antonio Guterres, has noted that corruption often disproportionately affects the poor. That $2.6 trillion comes from schools, hospitals and other critical institutions losing resources and businesses and individuals paying bribes, creating a deteriorating effect on the society as a whole.

President Nayib Bukele of El Salvador estimates that every year the government loses $1.5 billion without a trace. Former President Tony Saca cost El Salvador $300 million because he redirected government funds into the companies and banks of family and friends. Meanwhile, his successor, Mauricio Funes, gave away another $351 million to family and associates.

Corruption in El Salvador has also largely centered around the actions of the state security forces and gang-related activities. Within the state security forces, there has been a pattern of excessive force, including reports of extrajudicial killings and threats against the LGBT community, children and those who work toward the rehabilitation of gang members by the U.N. In 2017, there were reports of a death squad engaging in killings, disappearances, robbery, sexual assault and extortion. Additionally, there are approximately 60,000 gang members throughout the country, and in many cases, they are the ones who set and enforce local rules and partner with government officials in criminal operations.

The International Commission Against Impunity in El Salvador

The commission serves to act as an autonomous and neutral institution to ensure transparency within the federal government by investigating possible corruption in El Salvador and helping to enforce the laws. It is accomplishing this by establishing close relations with institutions in the country. This includes the establishment of an Anti-Corruption Unit within the National Civil Police, as well as working with the Ministry of Finance, the General Directorate of Customs and the General Directorate of Migration.

The El Salvadoran government has worked with the General Secretariat of the Organization of American States to set up the commission. The organization includes 35 countries in the Western Hemisphere and dedicates itself to the promotion of democracy, security and development. It has been working with various institutions within El Salvador, including the Attorney General’s Office, Supreme Court of Justice and various civil society organizations to ensure greater transparency and that authorities properly enforce the laws in El Salvador.

Concerns with the Commission

Firstly, Bukele’s major step of establishing the commission has come only in the past few months, meaning it is too early for there to be conclusive evidence of its impact on corruption in El Salvador.

Secondly, the commission is in conjunction with the Organization of American States, not the U.N. People have questioned the legitimacy of the commission due to the fear that the organization will not lead the commission with as serious intent, as the U.N. led the Guatemalan impunity commission. This fear stems from the belief that the organization is “underfunded, poorly managed and inadequately staffed,” according to the Foreign Policy Magazine. It is important to note that despite these concerns, the organization has played a crucial role in uncovering human rights violations in the Americas over the past several decades.

Lastly, President Bukele has stated that the commission will not require lawmaker approval to run. Jessica Estrada of the National Foundation for Development has added that the El Salvadoran “constitution does not allow the establishment of a mechanism” similar to that led by the U.N. in Guatemala. These statements call into question how much will change if there is a lack of legal enforcement available.

Reason for Hope

For one, the International Crisis Group reported in 2018 that the Commission Against Impunity in Guatemala has helped lead to a 5 percent average annual decrease in the murder rate in the country since it formed in 2007, providing a precedent for success. The commission in Guatemala accomplished this by being instrumental in the passing of legislation that allows for wiretaps along with greater use of DNA and ballistic testing and with other modern investigation methods. These efforts helped to create stronger law enforcement, discouraging criminal activity.

Also, already under the newly elected President, El Salvador has seen its most peaceful month this century, averaging only 3.6 homicides per day in October 2019. At its worst, the country suffered through an average of 17.6 homicides per day throughout the entire year of 2015.

Finally, within weeks after his election, President Bukele deployed police and soldiers to areas of highly concentrated extortion efforts where the gangs in the country receive 80 percent of their income, giving some sense of how seriously he is taking the issue.

While the fight against corruption in El Salvador is far from over, there is meaningful potential for the creation of a more peaceful and transparent state.

– Scott Boyce
Photo: UN Multimedia