IBOV 175,963 ▼ 1.07% IPSA 10,950 ▼ 0.96% IPC MEX 65,928 ▼ 0.85% MERVAL 3,260,164 ▼ 0.61% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,917.82 ▼ 0.73% USD/BRL5.13▲ 0.43% USD/MXN17.52▲ 0.30% USD/CLP931.83▲ 0.75% USD/COP3,242▼ 0.11% USD/PEN3.41▲ 0.49% USD/ARS1,482▼ 0.37% USD/UYU 40.22 — 0.00% USD/PYG6,045▼ 0.17% USD/BOB10.35▲ 2.07% USD/DOP58.30▼ 0.31% USD/CRC448.53▼ 0.06% USD/GTQ7.62▼ 0.10% USD/HNL26.73▲ 0.04% USD/NIO 36.62 — 0.00% USD/VES719.54▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD156.98▼ 0.70% USD/TTD6.74▼ 0.12% EUR/BRL5.84▲ 0.35% BRENT 82.88 ▲ 9.04% WTI 77.71 ▲ 8.82% IRON ORE 161.91 — — COPPER 6.28 ▲ 0.70% GOLD 4,005 ▼ 2.41% SILVER 57.82 ▼ 3.33% SOY 1,194 ▼ 0.25% CORN 463.00 ▲ 5.71% WHEAT 635.25 ▲ 0.51% COFFEE 330.50 ▼ 3.64% SUGAR 14.76 ▼ 0.81% ORANGE JUICE 137.15 ▼ 7.24% COTTON 81.49 ▲ 1.96% COCOA 5,808 ▼ 1.88% BEEF 234.95 ▼ 0.11% CATTLE 354.20 ▼ 0.11% LITHIUM 70.13 ▼ 3.03% PETR4 40.79 ▲ 2.88% VALE3 72.66 ▼ 2.05% ITUB4 43.65 ▼ 1.47% BBDC4 18.76 ▼ 0.53% ABEV3 15.84 ▲ 0.13% BBAS3 20.26 ▼ 1.55% B3SA3 15.07 ▼ 2.27% WEGE3 44.61 ▼ 4.09% PRIO3 57.14 ▲ 3.05% SUZB3 41.59 ▲ 0.10% RENT3 40.17 ▼ 2.26% AZZA3 19.23 ▲ 0.68% CSAN3 3.93 ▼ 3.44% RAIZ4 0.33 ▼ 5.71% PCAR3 2.61 ▼ 4.40% GMAT3 3.96 ▼ 0.25% PSSA3 54.04 ▼ 1.69% CVCB3 1.24 ▼ 0.80% POSI3 3.94 ▼ 0.76% SLCE3 13.88 ▼ 1.00% NATU3 8.66 ▼ 0.23% BRKM5 6.82 ▲ 2.87% RANI3 7.96 ▼ 0.62% CSNA3 5.25 ▲ 1.35% CMIN3 5.47 ▲ 4.59% USIM5 8.40 ▼ 0.59% GGBR4 22.93 ▼ 0.35% ENEV3 27.01 ▼ 1.96% CPFE3 46.97 ▼ 1.88% CMIG4 11.09 ▼ 2.55% EQTL3 40.17 ▼ 1.81% LREN3 14.24 ▼ 2.60% VIVT3 35.02 ▼ 2.04% RAIL3 14.08 ▼ 1.95% KLABIN 17.54 — 0.00% RAIA DROGASIL 18.30 ▼ 2.50% RDOR3 35.57 ▼ 1.25% HAPV3 10.45 ▼ 1.42% FLRY3 16.26 ▼ 0.97% SMTO3 16.55 ▲ 1.10% UGPA3 31.00 ▲ 0.94% VBBR3 32.80 ▼ 0.61% BBSE3 40.31 ▼ 0.10% BPAC11 57.82 ▼ 1.55% CURY3 33.50 ▼ 2.08% AERI3 2.08 ▼ 0.48% VIVARA 23.16 ▼ 1.57% COMPASS 24.79 ▼ 2.78% VAMOS 3.02 ▼ 1.31% SANB11 27.21 ▼ 1.48% ASAI3 8.69 ▼ 2.03% SBSP3 30.35 ▼ 2.44% WALMEX 49.58 ▲ 0.53% GMEXICO 195.10 ▼ 2.07% FEMSA 224.45 ▲ 0.51% CEMEX 21.63 ▼ 1.05% GFNORTE 182.42 ▼ 2.23% BIMBO 55.93 ▼ 0.30% TELEVISA 9.64 ▼ 0.93% AMX 22.83 ▲ 0.57% GAP 408.44 ▼ 0.98% ASUR 278.30 ▼ 2.39% OMA 233.02 ▼ 1.46% KOF 180.86 ▲ 0.40% GRUMA 283.07 ▼ 0.17% KIMBER 38.24 ▲ 0.45% SQM-B 67,262 ▼ 0.72% COPEC 6,109 ▼ 0.49% BSANTANDER 77.78 ▼ 1.54% FALABELLA 5,911 ▲ 0.10% ENELAM 84.77 ▼ 0.74% CENCOSUD 2,037 ▼ 0.40% CMPC 1,084 ▼ 2.29% BANCO CHILE 184.33 ▼ 2.41% LATAM AIR 25.17 ▼ 4.15% YPF 77,250 ▲ 3.83% GGAL 8,190 ▼ 1.74% PAMPA 5,290 ▲ 2.12% TXAR 664.00 ▼ 1.04% ALUAR 963.00 ▼ 1.28% TGS 9,605 ▲ 0.10% CEPU 2,345 ▼ 2.13% MIRGOR 17,025 ▼ 1.30% COME 44.89 ▼ 2.22% LOMA NEGRA 3,500 ▼ 2.30% BYMA 310.00 ▼ 1.27% TELECOM ARG 4,250 ▲ 0.12% ECOPETROL 15.88 ▲ 1.93% BANCOLOMBIA 81.23 ▼ 2.08% GRUPO AVAL 4.92 ▼ 2.96% CREDICORP 389.30 ▼ 2.87% SOUTHERN COPPER 174.32 ▼ 0.86% BUENAVENTURA 29.83 ▼ 0.58% MERCADOLIBRE 1,872 ▲ 1.09% NUBANK 13.71 ▼ 0.36% XP 16.36 ▼ 3.31% PAGSEGURO 9.25 — 0.00% STONE 11.14 ▼ 0.67% GLOBANT 31.93 ▲ 6.58% TECNOGLASS 42.94 ▼ 2.19% GAP AIRPORT 233.13 ▼ 1.07% ASUR 278.30 ▼ 2.39% OMA AIRPORT 106.11 ▼ 1.79% AMX ADR 26.01 — 0.00% FEMSA ADR 128.39 ▲ 0.57% CEMEX ADR 12.35 ▼ 1.08% PETROBRAS ADR 17.87 ▲ 3.15% VALE ADR 14.12 ▼ 2.39% ITAU ADR 8.50 ▼ 1.39% SANTANDER BR 5.33 ▼ 1.21% AMBEV ADR 3.07 ▼ 0.16% CSN 1.03 ▲ 1.49% GERDAU 4.47 ▼ 0.62% LATAM ADR 53.73 ▼ 4.82% BTC 61,976 ▼ 2.79% ETH 1,765 ▼ 2.26% SOL 74.78 ▼ 2.72% XRP 1.06 ▼ 2.20% BNB 564.11 ▼ 1.71% ADA 0.16 ▼ 3.00% DOGE 0.07 ▼ 1.75% AVAX 6.44 ▲ 0.59% LINK 7.86 ▼ 1.68% DOT 0.83 ▼ 1.56% LTC 43.16 ▼ 1.84% BCH 235.57 ▼ 1.83% TRX 0.33 ▼ 1.74% XLM 0.18 ▼ 2.67% HBAR 0.07 ▼ 1.87% NEAR 1.89 ▼ 0.03% ATOM 1.54 ▼ 1.86% AAVE 94.54 ▼ 2.60% SELIC 14.25% EMBRAER 82.66 ▼ 2.29% EMBRAER ADR 64.47 ▼ 2.33% JBS 11.79 ▼ 1.05% JBS BDR 60.27 ▼ 0.84% MBRF3 15.93 ▲ 2.44% MBRFY 3.07 ▲ 1.66% INTER 5.62 ▼ 3.44% EGX 52,608 ▲ 0.67% USD/ZAR16.45▲ 0.79% USD/NGN1,378▼ 0.05% NIKKEI 67,243 ▼ 1.92% CSI300 4,695 ▼ 1.79% HSI 24,214 ▲ 0.16% NIFTY 24,211 ▲ 0.02% KOSPI 6,807 ▼ 8.95% JCI 6,038 ▲ 1.92% USD/JPY162.43▲ 0.44% USD/CNY6.77▼ 0.09% DAX 25,114 ▲ 0.19% CAC 8,365 ▲ 0.31% FTSE 10,498 ▲ 0.01% MIB 52,809 ▲ 0.37% IBEX 19,336 ▼ 0.25% STOXX 641.01 ▼ 0.01% EUR/USD1.14▼ 0.12% GBP/USD1.34▼ 0.25% SPX 7,521 ▼ 0.71% DJI 52,493 ▼ 0.27% NDX 29,284 ▼ 1.82% RUT 2,952 ▼ 0.86% TSX 35,236 ▼ 0.20% VIX 16.93 ▲ 12.64% USD/CAD1.42▼ 0.03% US10Y 4.6120 ▲ 0.94% IBOV 175,963 ▼ 1.07% IPSA 10,950 ▼ 0.96% IPC MEX 65,928 ▼ 0.85% MERVAL 3,260,164 ▼ 0.61% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,917.82 ▼ 0.73% USD/BRL 5.13 ▲ 0.44% USD/MXN 17.52 ▲ 0.30% USD/CLP 931.83 ▲ 0.75% USD/COP 3,242 ▼ 0.11% USD/PEN 3.41 ▲ 0.49% USD/ARS 1,482 ▼ 0.37% USD/UYU 40.22 — 0.00% USD/PYG 6,045 ▼ 0.17% USD/BOB 10.35 ▲ 2.07% USD/DOP 58.30 ▼ 0.31% USD/CRC 448.53 ▼ 0.06% USD/GTQ 7.62 ▼ 0.10% USD/HNL 26.73 ▲ 0.04% USD/NIO 36.62 — 0.00% USD/VES 719.54 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 156.98 ▼ 0.30% USD/TTD 6.74 ▲ 1.31% EUR/BRL 5.84 ▲ 0.35% BRENT 82.88 ▲ 9.04% WTI 77.71 ▲ 8.82% IRON ORE 161.91 — — COPPER 6.28 ▲ 0.70% GOLD 4,005 ▼ 2.41% SILVER 57.82 ▼ 3.33% SOY 1,194 ▼ 0.25% CORN 463.00 ▲ 5.71% WHEAT 635.25 ▲ 0.51% COFFEE 330.50 ▼ 3.64% SUGAR 14.76 ▼ 0.81% ORANGE JUICE 137.15 ▼ 7.24% COTTON 81.49 ▲ 1.96% COCOA 5,808 ▼ 1.88% BEEF 234.95 ▼ 0.11% CATTLE 354.20 ▼ 0.11% LITHIUM 70.13 ▼ 3.03% PETR4 40.79 ▲ 2.88% VALE3 72.66 ▼ 2.05% ITUB4 43.65 ▼ 1.47% BBDC4 18.76 ▼ 0.53% ABEV3 15.84 ▲ 0.13% BBAS3 20.26 ▼ 1.55% B3SA3 15.07 ▼ 2.27% WEGE3 44.61 ▼ 4.09% PRIO3 57.14 ▲ 3.05% SUZB3 41.59 ▲ 0.10% RENT3 40.17 ▼ 2.26% AZZA3 19.23 ▲ 0.68% CSAN3 3.93 ▼ 3.44% RAIZ4 0.33 ▼ 5.71% PCAR3 2.61 ▼ 4.40% GMAT3 3.96 ▼ 0.25% PSSA3 54.04 ▼ 1.69% CVCB3 1.24 ▼ 0.80% POSI3 3.94 ▼ 0.76% SLCE3 13.88 ▼ 1.00% NATU3 8.66 ▼ 0.23% BRKM5 6.82 ▲ 2.87% RANI3 7.96 ▼ 0.62% CSNA3 5.25 ▲ 1.35% CMIN3 5.47 ▲ 4.59% USIM5 8.40 ▼ 0.59% GGBR4 22.93 ▼ 0.35% ENEV3 27.01 ▼ 1.96% CPFE3 46.97 ▼ 1.88% CMIG4 11.09 ▼ 2.55% EQTL3 40.17 ▼ 1.81% LREN3 14.24 ▼ 2.60% VIVT3 35.02 ▼ 2.04% RAIL3 14.08 ▼ 1.95% KLABIN 17.54 — 0.00% RAIA DROGASIL 18.30 ▼ 2.50% RDOR3 35.57 ▼ 1.25% HAPV3 10.45 ▼ 1.42% FLRY3 16.26 ▼ 0.97% SMTO3 16.55 ▲ 1.10% UGPA3 31.00 ▲ 0.94% VBBR3 32.80 ▼ 0.61% BBSE3 40.31 ▼ 0.10% BPAC11 57.82 ▼ 1.55% CURY3 33.50 ▼ 2.08% AERI3 2.08 ▼ 0.48% VIVARA 23.16 ▼ 1.57% COMPASS 24.79 ▼ 2.78% VAMOS 3.02 ▼ 1.31% SANB11 27.21 ▼ 1.48% ASAI3 8.69 ▼ 2.03% SBSP3 30.35 ▼ 2.44% WALMEX 49.58 ▲ 0.53% GMEXICO 195.10 ▼ 2.07% FEMSA 224.45 ▲ 0.51% CEMEX 21.63 ▼ 1.05% GFNORTE 182.42 ▼ 2.23% BIMBO 55.93 ▼ 0.30% TELEVISA 9.64 ▼ 0.93% AMX 22.83 ▲ 0.57% GAP 408.44 ▼ 0.98% ASUR 278.30 ▼ 2.39% OMA 233.02 ▼ 1.46% KOF 180.86 ▲ 0.40% GRUMA 283.07 ▼ 0.17% KIMBER 38.24 ▲ 0.45% SQM-B 67,262 ▼ 0.72% COPEC 6,109 ▼ 0.49% BSANTANDER 77.78 ▼ 1.54% FALABELLA 5,911 ▲ 0.10% ENELAM 84.77 ▼ 0.74% CENCOSUD 2,037 ▼ 0.40% CMPC 1,084 ▼ 2.29% BANCO CHILE 184.33 ▼ 2.41% LATAM AIR 25.17 ▼ 4.15% YPF 77,250 ▲ 3.83% GGAL 8,190 ▼ 1.74% PAMPA 5,290 ▲ 2.12% TXAR 664.00 ▼ 1.04% ALUAR 963.00 ▼ 1.28% TGS 9,605 ▲ 0.10% CEPU 2,345 ▼ 2.13% MIRGOR 17,025 ▼ 1.30% COME 44.89 ▼ 2.22% LOMA NEGRA 3,500 ▼ 2.30% BYMA 310.00 ▼ 1.27% TELECOM ARG 4,250 ▲ 0.12% ECOPETROL 15.88 ▲ 1.93% BANCOLOMBIA 81.23 ▼ 2.08% GRUPO AVAL 4.92 ▼ 2.96% CREDICORP 389.30 ▼ 2.87% SOUTHERN COPPER 174.32 ▼ 0.86% BUENAVENTURA 29.83 ▼ 0.58% MERCADOLIBRE 1,872 ▲ 1.09% NUBANK 13.71 ▼ 0.36% XP 16.36 ▼ 3.31% PAGSEGURO 9.25 — 0.00% STONE 11.14 ▼ 0.67% GLOBANT 31.93 ▲ 6.58% TECNOGLASS 42.94 ▼ 2.19% GAP AIRPORT 233.13 ▼ 1.07% ASUR 278.30 ▼ 2.39% OMA AIRPORT 106.11 ▼ 1.79% AMX ADR 26.01 — 0.00% FEMSA ADR 128.39 ▲ 0.57% CEMEX ADR 12.35 ▼ 1.08% PETROBRAS ADR 17.87 ▲ 3.15% VALE ADR 14.12 ▼ 2.39% ITAU ADR 8.50 ▼ 1.39% SANTANDER BR 5.33 ▼ 1.21% AMBEV ADR 3.07 ▼ 0.16% CSN 1.03 ▲ 1.49% GERDAU 4.47 ▼ 0.62% LATAM ADR 53.73 ▼ 4.82% BTC 61,976 ▼ 2.79% ETH 1,765 ▼ 2.26% SOL 74.78 ▼ 2.72% XRP 1.06 ▼ 2.20% BNB 564.11 ▼ 1.71% ADA 0.16 ▼ 3.00% DOGE 0.07 ▼ 1.75% AVAX 6.44 ▲ 0.59% LINK 7.86 ▼ 1.68% DOT 0.83 ▼ 1.56% LTC 43.16 ▼ 1.84% BCH 235.57 ▼ 1.83% TRX 0.33 ▼ 1.74% XLM 0.18 ▼ 2.67% HBAR 0.07 ▼ 1.87% NEAR 1.89 ▼ 0.03% ATOM 1.54 ▼ 1.86% AAVE 94.54 ▼ 2.60% 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Covid-19 Brazil

Latin America Is Evidence How Fight Against Covid-19 Hinges on Governance

By · July 17, 2020 · 6 min read

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RIO DE JANEIRO, BRAZIL – Why are certain countries severely affected by the coronavirus, while others have thus far been very little affected? Why, for instance, has Paraguay, which is one of the poorest and most underdeveloped countries in Latin America with a precarious healthcare system, had only 25 coronavirus deaths recorded so far, while in the much more modern Chile, the country with the highest per capita income in the region, the virus has already claimed over 7,000 lives? The search for an explanation for this inequality is one of the interesting aspects of this pandemic.

Without a clear line of action, it is more difficult for a government to persuade its population to accept drastic quarantine measures and the closure of businesses.
Without a clear line of action, it is more difficult for a government to persuade its population to accept drastic quarantine measures and the closure of businesses. (Photo: internet reproduction)
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The Latin American countries form a telling group to draw such comparisons, given that, for all their differences, the slightly over twenty countries have much in common. Last but not least, they have a similar cultural and often economic background, due to their common colonial experiences. Moreover, these countries have had very different track records in their efforts to fight the coronavirus pandemic.

If we look at the number of deaths per 100,000 inhabitants among the different countries, the range is very wide, from 0.4 to 39. This means that for the same population size, the most severely affected country would suffer around 100 times as many deaths as the most successful country to date in fighting the virus.

Demography and geography

Back to the comparison between Paraguay and Chile: Obviously demographic and geographical factors are important. The size of the population plays a role – the more populous a country is, the more coronavirus victims are to be expected. But the number of inhabitants in Chile is just over two and a half times as high as in Paraguay. It cannot explain the tremendous difference in infections.

Population density is also likely to play a role. One must assume that low population density helps to slow down the spread of the virus. But again, Chile has only a slightly less favorable situation with its 24 inhabitants-per-square-kilometer, compared to 17 for Paraguay. This difference is not large enough to explain the large spread of the virus in Chile. In addition, Paraguay, with its capital Asunción, also has a densely populated agglomeration with over two million inhabitants, where the virus could have spread rapidly.

A third criterion is geography. Countries with urban centers where there is a significant international population exchange are inherently more exposed to the virus than isolated islands. Chile, with its capital Santiago as an international hub, is in a more exposed position than Paraguay, which is something like an island in the center of the continent.

Despite not being surrounded by water, it is surrounded by jungle and sparsely populated agricultural areas with few modern transportation routes. Nevertheless, it is unlikely that this alone explains the different levels of coronavirus infection – also because most Latin American countries closed their borders to international travelers very early.

Different policies of the three major countries

But what role did the governments’ response play in fighting the coronavirus threat? Can conclusions be drawn from the Latin American cases? The two largest countries, Brazil and Mexico, clearly failed to send a serious and clear message to their populations. The necessary protective measures were implemented too late or limited to certain regions.

There has been an ongoing power struggle, particularly within the Brazilian government, over the appropriate strategies. Brazil’s President Jair Bolsonaro personally downplayed the danger and repeatedly violated the distancing and hygiene rules in public, and even took action against regional governments that had introduced more stringent protective measures.

Without a clear line of action, it is more difficult for a government to persuade its population to accept drastic quarantine measures and the closure of businesses. All the more so, given that many poorer Latin Americans live virtually from hand to mouth, and daily income is thus crucial for survival. The consequences of the lack of determination in the fight against the coronavirus in Brazil and Mexico can be observed in the unabated increase in the number of infections. In absolute figures, Brazil has ranked second behind the USA on the list of the Johns Hopkins University for weeks; Mexico is now ranked seventh.

In contrast, Argentina, the third-largest Latin American country, imposed a strict quarantine at an early stage, and the government of President Alberto Fernández made it clear from the outset that fighting the pandemic was an absolute priority, regardless of its economic cost. The number of infections in Argentina remained very low for a long time. The difference between Argentina and the other two large countries is still striking: Brazil records a total of 39 times as many coronavirus deaths as Argentina, Mexico 19 times as many.

The consequences of the lack of determination in the fight against the coronavirus in Brazil and Mexico can be observed in the unabated increase in the number of infections.
The consequences of the lack of determination in the fight against the coronavirus in Brazil and Mexico can be observed in the unabated increase in the number of infections. (Photo: internet reproduction)

Early winners stray off course

The cases of Chile and Peru, which in recent weeks have also ingloriously joined Brazil and Mexico in the group with the most deaths per 100,000 inhabitants, are different. These two countries originally reacted quickly and decisively to the coronavirus. They were also very successful in a first stage and were regarded as model cases. However, as of May, infections began to rise sharply.

This was due to the fact that part of the population could not or did not want to maintain the quarantine regime any longer, so that governments introduced relaxation measures prematurely. In Peru, a very high share (around 70 percent) of the population works in the informal sector. These people work as street vendors, housemaids or in odd jobs. If they cannot go to work, they have no income, and with no savings they are quickly threatened by hunger. The purchase of food at crowded traditional markets also posed a considerable risk of infection during quarantine.

For similar reasons, there was resistance, in the poor Santiago suburbs, to a further tightening of the quarantine when a second wave was announced in the capital. This illustrates that explicit government orders are not necessarily effective. The population must also have confidence in the government’s course of action if the measures are to be followed. This is not the case in Chile. The country was already enmeshed in an internal power struggle, often violent, over a new constitution, when the virus began to paralyze people’s lives.

According to surveys, fewer than ten percent of Chileans trust their government. There were demonstrations against the new lockdown, some of them violent, in May and June. Given the public opposition to the government measures, the number of infections increased dramatically. Today the country records the highest number of deaths per 100 000 inhabitants in Latin America.

Success due to decisive action

The two most successful countries, Paraguay and Uruguay, can also provide clues to a successful strategy. Both share a swift and unequivocal government response to the virus. This unambiguity helped to persuade the population to adopt the measures. Paraguay relied on one of the strictest lockdowns in the region, while Uruguay successfully promoted the voluntary social distancing of its citizens. The rapid intervention enabled early containment of the virus.

In contrast, the experience of the Ecuadorian port city of Guayaquil, where the coronavirus was introduced from Spain, shows what can happen when this is not the case. In Latin America’s first hotspot, it took many weeks before the uncontrolled spread could be contained, with several thousand deaths.

Unfortunately, the success of Paraguay and Uruguay also poses a risk. Because of the low number of infections, the danger of a second wave is even greater.

Looking at the Latin American cases suggests that governance in each country has a significant influence on the development of the coronavirus epidemic. Only a variety of factors can ultimately explain the differing results in fighting the spread.

However, the dismal results in countries like Brazil are not a product of divine intervention. On the one hand, the study shows that the Latin American governments that reacted early, decisively, and clearly, have been successful, at least in the first stage. On the other, the countries that most clearly lacked this determination, downplayed the virus, and failed to pursue a consistent strategy – Brazil and Mexico – lost the battle early on.

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