IBOV 175,699.79 ▼ 0.53% IPSA 11,024.10 ▲ 1.05% IPC MEX 66,529.27 ▲ 0.85% MERVAL 3,229,323 ▼ 0.18% COLCAP 2,298.73 ▼ 0.39% BVL PERÚ 57,174.37 — — USD/BRL5.07▲ 0.01% USD/MXN17.39▼ 0.18% USD/CLP923.96▼ 0.28% USD/COP3,244▲ 0.25% USD/PEN3.39▼ 0.06% USD/ARS1,465▼ 0.37% USD/UYU40.15▲ 1.04% USD/PYG6,039▲ 1.28% USD/BOB10.65▲ 5.99% USD/DOP58.36▲ 0.10% USD/CRC447.49▲ 0.88% USD/GTQ7.62▲ 2.09% USD/HNL26.73▼ 0.01% USD/NIO36.62▲ 0.31% USD/VES723.93▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD157.69▲ 0.12% USD/TTD6.76▲ 1.32% EUR/BRL5.80▼ 1.00% BRENT 84.75 ▲ 0.02% WTI 79.72 ▲ 0.48% IRON ORE 161.91 — — COPPER 6.42 ▲ 1.34% GOLD 4,070 ▲ 0.22% SILVER 58.70 ▼ 0.12% SOY 1,194 ▼ 1.08% CORN 466.00 ▲ 7.44% WHEAT 670.25 ▲ 6.18% COFFEE 331.45 ▼ 1.71% SUGAR 14.79 ▼ 0.60% ORANGE JUICE 138.45 ▼ 1.28% COTTON 81.20 ▲ 2.01% COCOA 5,706 ▲ 0.81% BEEF 226.95 ▼ 1.93% CATTLE 350.03 ▲ 0.35% LITHIUM 71.57 ▲ 1.89% PETR4 40.68 ▲ 0.05% VALE3 74.53 ▲ 0.70% ITUB4 43.32 ▼ 0.71% BBDC4 18.58 ▼ 0.27% ABEV3 15.50 ▼ 1.96% BBAS3 20.60 ▲ 0.05% B3SA3 15.56 ▲ 1.50% WEGE3 43.38 ▼ 1.86% PRIO3 57.20 ▼ 0.64% SUZB3 41.59 ▲ 1.17% RENT3 40.47 ▼ 0.17% AZZA3 18.68 ▼ 0.90% CSAN3 3.87 ▼ 0.51% RAIZ4 0.31 — 0.00% PCAR3 2.31 ▼ 5.71% GMAT3 3.98 ▲ 0.51% PSSA3 54.35 ▲ 0.11% CVCB3 1.35 ▼ 2.17% POSI3 3.92 ▼ 1.75% SLCE3 13.78 ▼ 0.22% NATU3 8.46 ▼ 1.05% BRKM5 6.50 ▼ 4.83% RANI3 8.06 ▲ 0.62% CSNA3 5.13 ▼ 1.35% CMIN3 5.05 ▼ 0.98% USIM5 8.31 ▲ 0.97% GGBR4 23.62 ▲ 1.29% ENEV3 26.93 ▼ 0.88% CPFE3 47.08 ▼ 0.25% CMIG4 11.13 ▼ 0.63% EQTL3 40.55 ▼ 0.98% LREN3 14.17 ▼ 0.84% VIVT3 35.23 ▼ 0.82% RAIL3 14.01 ▼ 0.85% KLABIN 17.41 ▲ 0.52% RAIA DROGASIL 18.54 ▼ 0.32% RDOR3 36.11 ▲ 0.17% HAPV3 10.98 ▼ 1.88% FLRY3 16.45 ▲ 0.24% SMTO3 15.81 ▼ 1.92% UGPA3 30.50 ▲ 1.30% VBBR3 33.55 ▲ 0.75% BBSE3 40.22 ▼ 0.42% BPAC11 57.75 ▼ 0.35% CURY3 33.37 ▼ 0.66% AERI3 2.03 ▼ 1.93% VIVARA 23.23 ▼ 0.85% COMPASS 25.00 ▼ 0.79% VAMOS 3.12 ▼ 0.95% SANB11 27.06 ▼ 1.02% ASAI3 8.59 ▼ 0.81% SBSP3 30.14 ▼ 0.66% WALMEX 49.46 ▲ 0.39% GMEXICO 200.10 ▲ 0.27% FEMSA 226.16 ▼ 1.38% CEMEX 22.28 ▲ 0.36% GFNORTE 186.00 ▼ 0.10% BIMBO 56.55 ▲ 0.34% TELEVISA 9.48 ▼ 0.52% AMX 22.68 ▼ 0.74% GAP 391.88 ▼ 0.86% ASUR 279.36 ▲ 1.36% OMA 236.05 ▲ 0.44% KOF 178.80 ▼ 0.61% GRUMA 277.80 ▼ 0.57% KIMBER 38.52 ▲ 0.21% SQM-B 67,000 ▼ 1.33% COPEC 6,207 ▼ 0.05% BSANTANDER 78.99 ▲ 0.45% FALABELLA 5,835 ▼ 0.68% ENELAM 85.72 ▼ 0.04% CENCOSUD 2,057 ▲ 0.83% CMPC 1,100 ▼ 0.27% BANCO CHILE 191.00 ▲ 0.79% LATAM AIR 25.04 ▲ 0.56% YPF 77,775 — 0.00% GGAL 7,910 — 0.00% PAMPA 5,230 — 0.00% TXAR 662.00 — 0.00% ALUAR 949.00 — 0.00% TGS 9,710 — 0.00% CEPU 2,327 — 0.00% MIRGOR 16,750 — 0.00% COME 45.75 — 0.00% LOMA NEGRA 3,533 — 0.00% BYMA 301.00 — 0.00% TELECOM ARG 4,333 — 0.00% ECOPETROL 16.10 ▼ 0.40% BANCOLOMBIA 82.50 ▲ 0.49% GRUPO AVAL 5.07 ▲ 2.42% CREDICORP 395.15 ▲ 0.74% SOUTHERN COPPER 183.60 ▲ 0.67% BUENAVENTURA 30.79 ▼ 0.77% MERCADOLIBRE 1,857 ▼ 0.90% NUBANK 13.79 ▼ 1.43% XP 16.87 — 0.00% PAGSEGURO 9.06 ▼ 2.42% STONE 11.03 ▼ 2.39% GLOBANT 31.72 ▲ 2.57% TECNOGLASS 44.50 ▲ 0.60% GAP AIRPORT 224.73 ▼ 0.54% ASUR 279.36 ▲ 1.36% OMA AIRPORT 108.07 ▲ 0.40% AMX ADR 26.08 ▼ 0.38% FEMSA ADR 130.31 ▼ 2.15% CEMEX ADR 12.89 ▲ 0.70% PETROBRAS ADR 17.95 ▲ 0.17% VALE ADR 14.66 ▲ 0.48% ITAU ADR 8.54 ▼ 0.18% SANTANDER BR 5.37 ▼ 0.46% AMBEV ADR 3.04 ▼ 1.58% CSN 1.03 ▼ 0.10% GERDAU 4.67 ▲ 1.19% LATAM ADR 54.61 ▲ 2.06% BTC 65,231 ▲ 0.42% ETH 1,928 ▲ 2.02% SOL 78.04 ▲ 0.36% XRP 1.12 ▲ 1.21% BNB 582.02 ▲ 0.05% ADA 0.17 ▲ 0.65% DOGE 0.07 ▲ 0.39% AVAX 6.70 ▲ 0.04% LINK 8.53 ▲ 2.24% DOT 0.86 ▲ 0.97% LTC 45.53 ▲ 0.21% BCH 235.20 ▼ 0.55% TRX 0.33 ▲ 0.48% XLM 0.19 ▲ 2.63% HBAR 0.07 ▲ 0.88% NEAR 2.08 ▲ 3.58% ATOM 1.58 ▲ 1.03% AAVE 97.86 ▼ 1.04% SELIC 14.25% EMBRAER 81.72 ▼ 0.93% EMBRAER ADR 64.46 ▼ 0.69% JBS 11.88 ▲ 0.42% JBS BDR 60.07 ▲ 0.54% MBRF3 15.52 ▼ 3.54% MBRFY 3.15 ▲ 0.32% INTER 5.65 ▼ 0.88% IBOV 175,699.79 ▼ 0.53% IPSA 11,024.10 ▲ 1.05% IPC MEX 66,529.27 ▲ 0.85% MERVAL 3,229,323 ▼ 0.18% COLCAP 2,298.73 ▼ 0.39% BVL PERÚ 57,174.37 — — USD/BRL 5.07 ▲ 0.01% USD/MXN 17.40 ▼ 0.17% USD/CLP 923.96 ▼ 0.28% USD/COP 3,244 ▲ 0.25% USD/PEN 3.39 ▼ 0.06% USD/ARS 1,465 ▼ 0.37% USD/UYU 40.15 ▲ 1.04% USD/PYG 6,039 ▲ 1.28% USD/BOB 10.65 ▲ 5.99% USD/DOP 58.36 ▲ 0.10% USD/CRC 447.49 ▲ 0.88% USD/GTQ 7.62 ▲ 2.09% USD/HNL 26.73 ▼ 0.01% USD/NIO 36.62 ▲ 0.31% USD/VES 723.93 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 157.69 ▲ 0.12% USD/TTD 6.76 ▲ 1.32% EUR/BRL 5.80 ▼ 1.00% BRENT 84.75 ▲ 0.02% WTI 79.72 ▲ 0.48% IRON ORE 161.91 — — COPPER 6.42 ▲ 1.34% GOLD 4,070 ▲ 0.22% SILVER 58.70 ▼ 0.12% SOY 1,194 ▼ 1.08% CORN 466.00 ▲ 7.44% WHEAT 670.25 ▲ 6.18% COFFEE 331.45 ▼ 1.71% SUGAR 14.79 ▼ 0.60% ORANGE JUICE 138.45 ▼ 1.28% COTTON 81.20 ▲ 2.01% COCOA 5,706 ▲ 0.81% BEEF 226.95 ▼ 1.93% CATTLE 350.03 ▲ 0.35% LITHIUM 71.57 ▲ 1.89% PETR4 40.68 ▲ 0.05% VALE3 74.53 ▲ 0.70% ITUB4 43.32 ▼ 0.71% BBDC4 18.58 ▼ 0.27% ABEV3 15.50 ▼ 1.96% BBAS3 20.60 ▲ 0.05% B3SA3 15.56 ▲ 1.50% WEGE3 43.38 ▼ 1.86% PRIO3 57.20 ▼ 0.64% SUZB3 41.59 ▲ 1.17% RENT3 40.47 ▼ 0.17% AZZA3 18.68 ▼ 0.90% CSAN3 3.87 ▼ 0.51% RAIZ4 0.31 — 0.00% PCAR3 2.31 ▼ 5.71% GMAT3 3.98 ▲ 0.51% PSSA3 54.35 ▲ 0.11% CVCB3 1.35 ▼ 2.17% POSI3 3.92 ▼ 1.75% SLCE3 13.78 ▼ 0.22% NATU3 8.46 ▼ 1.05% BRKM5 6.50 ▼ 4.83% RANI3 8.06 ▲ 0.62% CSNA3 5.13 ▼ 1.35% CMIN3 5.05 ▼ 0.98% USIM5 8.31 ▲ 0.97% GGBR4 23.62 ▲ 1.29% ENEV3 26.93 ▼ 0.88% CPFE3 47.08 ▼ 0.25% CMIG4 11.13 ▼ 0.63% EQTL3 40.55 ▼ 0.98% LREN3 14.17 ▼ 0.84% VIVT3 35.23 ▼ 0.82% RAIL3 14.01 ▼ 0.85% KLABIN 17.41 ▲ 0.52% RAIA DROGASIL 18.54 ▼ 0.32% RDOR3 36.11 ▲ 0.17% HAPV3 10.98 ▼ 1.88% FLRY3 16.45 ▲ 0.24% SMTO3 15.81 ▼ 1.92% UGPA3 30.50 ▲ 1.30% VBBR3 33.55 ▲ 0.75% BBSE3 40.22 ▼ 0.42% BPAC11 57.75 ▼ 0.35% CURY3 33.37 ▼ 0.66% AERI3 2.03 ▼ 1.93% VIVARA 23.23 ▼ 0.85% COMPASS 25.00 ▼ 0.79% VAMOS 3.12 ▼ 0.95% SANB11 27.06 ▼ 1.02% ASAI3 8.59 ▼ 0.81% SBSP3 30.14 ▼ 0.66% WALMEX 49.46 ▲ 0.39% GMEXICO 200.10 ▲ 0.27% FEMSA 226.16 ▼ 1.38% CEMEX 22.28 ▲ 0.36% GFNORTE 186.00 ▼ 0.10% BIMBO 56.55 ▲ 0.34% TELEVISA 9.48 ▼ 0.52% AMX 22.68 ▼ 0.74% GAP 391.88 ▼ 0.86% ASUR 279.36 ▲ 1.36% OMA 236.05 ▲ 0.44% KOF 178.80 ▼ 0.61% GRUMA 277.80 ▼ 0.57% KIMBER 38.52 ▲ 0.21% SQM-B 67,000 ▼ 1.33% COPEC 6,207 ▼ 0.05% BSANTANDER 78.99 ▲ 0.45% FALABELLA 5,835 ▼ 0.68% ENELAM 85.72 ▼ 0.04% CENCOSUD 2,057 ▲ 0.83% CMPC 1,100 ▼ 0.27% BANCO CHILE 191.00 ▲ 0.79% LATAM AIR 25.04 ▲ 0.56% YPF 77,775 — 0.00% GGAL 7,910 — 0.00% PAMPA 5,230 — 0.00% TXAR 662.00 — 0.00% ALUAR 949.00 — 0.00% TGS 9,710 — 0.00% CEPU 2,327 — 0.00% MIRGOR 16,750 — 0.00% COME 45.75 — 0.00% LOMA NEGRA 3,533 — 0.00% BYMA 301.00 — 0.00% TELECOM ARG 4,333 — 0.00% ECOPETROL 16.10 ▼ 0.40% BANCOLOMBIA 82.50 ▲ 0.49% GRUPO AVAL 5.07 ▲ 2.42% CREDICORP 395.15 ▲ 0.74% SOUTHERN COPPER 183.60 ▲ 0.67% BUENAVENTURA 30.79 ▼ 0.77% MERCADOLIBRE 1,857 ▼ 0.90% NUBANK 13.79 ▼ 1.43% XP 16.87 — 0.00% PAGSEGURO 9.06 ▼ 2.42% STONE 11.03 ▼ 2.39% GLOBANT 31.72 ▲ 2.57% TECNOGLASS 44.50 ▲ 0.60% GAP AIRPORT 224.73 ▼ 0.54% ASUR 279.36 ▲ 1.36% OMA AIRPORT 108.07 ▲ 0.40% AMX ADR 26.08 ▼ 0.38% FEMSA ADR 130.31 ▼ 2.15% CEMEX ADR 12.89 ▲ 0.70% PETROBRAS ADR 17.95 ▲ 0.17% VALE ADR 14.66 ▲ 0.48% ITAU ADR 8.54 ▼ 0.18% SANTANDER BR 5.37 ▼ 0.46% AMBEV ADR 3.04 ▼ 1.58% CSN 1.03 ▼ 0.10% GERDAU 4.67 ▲ 1.19% LATAM ADR 54.61 ▲ 2.06% BTC 65,231 ▲ 0.42% ETH 1,928 ▲ 2.02% SOL 78.04 ▲ 0.36% XRP 1.12 ▲ 1.21% BNB 582.02 ▲ 0.05% ADA 0.17 ▲ 0.65% DOGE 0.07 ▲ 0.39% AVAX 6.70 ▲ 0.04% LINK 8.53 ▲ 2.24% DOT 0.86 ▲ 0.97% LTC 45.53 ▲ 0.21% BCH 235.20 ▼ 0.55% TRX 0.33 ▲ 0.48% XLM 0.19 ▲ 2.63% HBAR 0.07 ▲ 0.88% NEAR 2.08 ▲ 3.58% ATOM 1.58 ▲ 1.03% AAVE 97.86 ▼ 1.04% SELIC 14.25% EMBRAER 81.72 ▼ 0.93% EMBRAER ADR 64.46 ▼ 0.69% JBS 11.88 ▲ 0.42% JBS BDR 60.07 ▲ 0.54% MBRF3 15.52 ▼ 3.54% MBRFY 3.15 ▲ 0.32% INTER 5.65 ▼ 0.88%
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Colombia Latin America

Analysis: A powder keg called Colombia

By · March 22, 2021 · 6 min read

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RIO DE JANEIRO, BRAZIL – To say that in recent years there has been anything that resembles calm in Colombia may be misleading. The high rates of violence, the clash over judicial independence, and the lack of progress in the implementation of the peace process would put to rest any reasoning about hypothetical tranquility.

Colombian presidential candidate Gustavo Petro (Photo internet reproduction)
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The problem is that to all this, as of today, even more uncertainty has been added: over health, derived from the pandemic, of course; but also economic issues, with an alarming increase in extreme poverty and a tenacious cash flow problem.

All this, amplified by the 2022 elections, places Colombia once again at a moment that is often recurrent in its history, when everything seems to be on the verge of exploding… but ultimately calms down.

(Almost) everyone against Gustavo Petro

Next year’s elections already permeate every aspect and decision of Colombian public life. If in any other place in the world the drawing of possible candidates would be defined by now, drawing a diagram in Colombia is chimerical, since the convoluted process of consultations in the parties may raise the number of candidates to about twenty, which will eventually be reduced to no more than five with possibilities in the first round, scheduled for May 2022, two months after the congressional elections.

The only clear thing, from right to left, is that Gustavo Petro is the rival to beat. The former mayor of Bogotá, former M19 guerrilla fighter, has undertaken a shift to pragmatism similar to the one that brought Andrés Manuel López Obrador to power in Mexico in 2018, attracting politicians of all colors but, above all, with powerful clientelist networks and trying to scare away the fear that for many sectors, mainly economic, the first leftist president in the history of Colombia would represent.

In the progressive center, the bet of the former mayor of Medellin Sergio Fajardo, in a new attempt to achieve the presidency, is as certain as the number of buts that emerge every time his name appears.

The expectations generated by the fact that the ex-Minister of Health Alejandro Gaviria is running are as many as the challenges ahead.

On the conservative side, a great alliance is expected, but it is not clear how much weight the candidate of the Democratic Center, the party in power, which is led with an iron fist by former President Alvaro Uribe, will have.

Slowness in the vaccination plan

Like most Latin American countries, except for Chile and Uruguay, Colombia suffers a considerable delay in both the arrival and the application of vaccines against Covid-19.

Far from crying out against more developed countries or the pharmaceutical industry, President Iván Duque shows an optimistic message that clashes with the data.

This week he surpassed the symbolic barrier of 1 million vaccinated, approximately 2 doses per 100 inhabitants, about half that of Mexico, for example, although at a faster pace since he started applying the doses later.

To vaccinate 70% of the population before the end of the year, a target set by the authorities, some 200,000 vaccines will have to be administered daily: so far, a total of 109,000 have been administered, and this last week the daily doses have been approximately 50,000.

A tax reform disguised as a social reform

Colombia will be the first country in the region -and many more will surely follow- to implement tax reform, as necessary as it is late for many; a bone of contention with the markets to maintain the country’s investment grade rating, and another fuse for the citizens’ weariness.

The truth is that, for the aid envisaged by the Government to reach the citizens, money is required and now 40% of all products are exempt from VAT, the country’s main revenue source.

President Iván Duque insists that food for daily consumption will not be taxed, but he does not offer a reliable explanation to the doubts generated by the reform which will clash with a Congress immersed in the electoral process.

Tension in the streets

One of the most recurrent comments in any conversation is that “there will be tension in the streets”. The pandemic has returned 3 million people to the poverty line; the fuse that ignited at the end of 2019 has not been extinguished -it was re-ignited with the police brutality of last September- and the growing xenophobia over hundreds of thousands of Venezuelan migrants add fuel to the fire amid an electoral context.

On the political level, there are many voices, inside and outside the governing party, warning that the economic and social setback, coupled with a vaccination plan that is not taking off, could be a burden for the Democratic Center and undermine its aspirations in the presidential elections.

Chronic insecurity

Drug trafficking continues to be one of the major problems facing Colombia. Clashes between FARC and ELN dissidents with other criminal gangs or in a free-for-all in some departments, only perpetuate a chronic problem.

Colombia no longer registers the large massacres of dozens of people that it may have suffered in the past, but the killings are constant.

As of March 17th, there have been 17 incidents this year, with 65 victims, most of whom social leaders – Colombia is the country with highest record of murdered environmentalists on the planet- bloodshed which the government is incapable of remedy.

The perception of insecurity has also skyrocketed in big cities, such as Bogotá. A recent survey showed that 76% of the capital’s inhabitants feel more insecure, 16 points more than in 2019, especially given the increase in robberies.

A report to reconcile the country

Colombia will see the ‘Truth Commission’ deliver its report to the country three years after the Havana peace agreements between the Government and the FARC.

What was presumed to be a milestone in the reconciliation of the country, may exacerbate the already growing polarization, given that the Executive branch, the governing party in parliament, and the critics of the pact have not conceded a millimeter of peace this time.

Meanwhile, from the ranks of the ex-combatants, there are continuous calls to accelerate the implementation of the agreements to put an end to the killing of leaders and to facilitate the incorporation to civilian life in rural areas, the most affected by violence.

The Special Jurisdiction for Peace’s (JEP) devastating report, which brings the number of false positives to more than 6,400, has once again placed ex-president Álvaro Uribe, long an opponent of the Havana agreements, under the spotlight.

Uribe and justice

There is no other figure in Colombian political history who has been in the spotlight as much as Álvaro Uribe Vélez, whom many still refer to by his two surnames.

Twenty years after his arrival in power, the country has a glimpse at post-Uribism, although it is not yet able to feel it. The wear and tear are such that the legacy of the ex-president faces the paradox that, after 8 years in power and having appointed the 2 presidents who succeeded him -Santos chose to break with him once there, something that Uribe has neither digested nor forgiven-, he ends up leaving a leftist president in power.

In the meantime, the next year will continue to be marked by the judicial proceeding he is facing, which has produced a full clash between one of the institutions on which the State is built, the Supreme Court, and the Prosecutor General’s Office, which is inclined to acquit Uribe.

Those around the ex-president assume that the trial is inevitable, and could well come in the middle of next year’s electoral campaign.

Source: El Pais

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