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Spain’s Former Drug Czarina Endorses Legalization

Quoting great classical liberal minds such as Milton Friedman, Gary Becker and Mario Vargas Llosa, Spain’s former drug Czarina Araceli Manjón-Cabeza endorsed drug legalization today in a compelling op-ed [in Spanish] published in El País, Spain’s leading newspaper. Just a week earlier, Felipe González, Spain’s former Primer Minister, also came out in support of drug legalization.

Manjón-Cabeza takes particular aim at the UN International Narcotics Control Board for its criticisms of the different decriminalization and harm-reduction policies implemented in recent years in Argentina, Mexico, Brazil, and Spain, among other countries. She calls the INCB’s views “inadmissible.”

She concluded by calling prohibition a “savage and inefficient instrument that is not the ‘solution’ but instead a big part of the problem.” Manjón-Cabeza says that insisting on prohibitionist policies amounts to “insanity.” Finally, some common sense talk from a former drug czar.

Cuba Needs A Swift Transition Towards Capitalism

Confirming Fidel Castro’s recent confession that “the Cuban model doesn’t even works for us anymore” (did it ever work?), Havana has announced the massive layoff of 500,000 state workers in the upcoming months. This is approximately 12 percent of the government workforce (and 10 percent of the total labor force).

The big question is whether the meager non-state sector can absorb such an influx of workers in such a short period of time. My take is that the only way Cuba can accomplish this is by aggressively liberalizing its economy: privatizing most industries and farmland, cutting red tape, freeing prices, lowering taxes (which fall heavily on the tiny private sector), and getting rid of thousands of restrictions on private businesses that currently thwart entrepreneurship. This, of course, means abandoning altogether the current communist model and moving towards a capitalist system. So far, the reforms introduced by Raúl Castro since becoming president three years ago have been far too timid and in some instances even counterproductive.

As Oleh Havrylyshyn, former Ukrainian deputy minister of finance, wrote in a paper published by Cato three years ago on the transformation of post-communist economies, rapid reforms (as opposed to gradual ones) bring about better results in terms of higher growth rates, lower unemployment, higher investment, etc. Interestingly, Havrylyshyn also found that “all of the rapid reformers developed into liberal democracies, whereas in many of the gradual reformers… small groups of super-wealthy oligarchs captured the state and dominated its economic decisionmaking.”

The Cuban ruling elite cannot afford to waste time. Very soon, hundreds of thousands of Cubans will be looking for a job in the dilapidated private sector. Social unrest could easily erupt if their search for a job or occupation goes unfulfilled. In the end, only a swift transition towards capitalism can rescue the Cuban people.

Chávez Introduces ‘Good Life Card’, Better Known as Rationing Card in Cuba

The latest feature in Venezuela’s road to socialism was introduced yesterday by President Hugo Chávez. It’s the “Good Life Card,” an instrument that, according to the government, will make it easier to buy groceries at government-owned supermarkets.

Even though Chávez denies that the card is a way “to promote communism,” the concept of a government-sponsored card to buy food in a country suffering from acute shortages is well known. They call it a “rationing card” in Cuba.

New Colombian President Backs Debate on Drug Legalization

Colombia’s new president Juan Manuel Santos came out last week in support of a debate on drug legalization, endorsing the call made a few weeks ago by his Mexican counterpart, Felipe Calderón.

Santos even said that if Californian voters passed a ballot initiative this November to legalize marijuana, he would team up with the presidents of Mexico and Peru “to work out how we are going to react and what is going to happen after this referendum.”

This seems to confirm the reports of the Mexican newspaper El Universal which claimed that Calderón’s turn around in his willingness to discuss drug legalization came after meeting with then president-elect Santos, who told him that Mexico should lead a debate on drug legalization. A week ago, Costa Rican president Laura Chinchilla said she was open for a debate on legalizing marijuana [in Spanish], even though she personally was against it.

Santos’ statement came the same week that leading Latin American experts met in Rio de Janeiro for the 2nd Latin American Conference on Drug Policy that I spoke at. Among the speakers were government officials from several Latin American countries, representatives from international agencies such as the Pan-American Organization and the UN, and experts from academia and NGOs. Even though not all speakers favored drug legalization or decriminalization, most did. The experience of Portugal on the issue (thoroughly documented in a paper by Glen Greenwald published last year by Cato) was widely cited during the conference. One panelist, a Brazilian congressman from the incumbent Workers Party, said that Brazil needed to adopt the same model as Portugal.

Attitudes on drug policy are changing in Latin America. The question remains: Is anyone in Washington paying attention?

The Kirchners Go After the Newspapers in Argentina

Argentina’s power couple (President Cristina Fernández and her husband and former president Néstor Kirchner) took their fight against the country’s major newspapers one step further today when the government released a report that might ultimately give it control of the company that distributes paper to the newspapers.

The government report targets Papel Prensa, a private company that belongs to a group controlled by Clarín and La Nación, Argentina’s major daily newspapers, and that distributes paper to 170 newspapers all over the country regardless of their editorial line and ideology.

The government claims that the previous owners of Papel Prensa sold the company back in 1976 under pressure from the military junta that then ruled Argentina. The report says that the government will sue the board members of both newspapers for “crimes against humanity” and “illegal purchase” of Papel Prensa. It also brings up charges of financial irregularities and unfair competition in the distribution of paper.

Both Clarín and La Nación vehemently deny the charges, pointing out that in the 27 years under democratic governments, Papel Prensa has never been impugned in the way it was acquired back in 1976. They claim this is a plan from the Kirchners to take over the company, and thus extend government control over the distribution of the newspapers main input: paper.

This is not the first time that the government has targeted Papel Prensa. Two weeks ago, the Commerce Secretary, Guillermo Moreno, stormed the company’s board meeting wearing boxing gloves and a helmet, shouting “you won’t vote here.” Last Thursday, Moreno, along with 10 others, broke into the offices of Papel Prensa shouting “I’m the owner” while trying to take over offices and desks.

Even though they no longer control Congress, the Kirchners have found a way to get what they want largely because of the divided and weak opposition. However, they might be pushing the envelope in picking such a contentious fight in a country where freedom of the press is still valued.

Colombia vs Venezuela on Crime

The New York Times highlights today the increasing plight of violence that besets Venezuela. The headline couldn’t be blunter: “More Killings in Venezuela than Iraq.” It’s a gruesome reminder of what Hugo Chávez’s “Socialism of the 21st Century” has delivered to the Venezuelan people.

Some Venezuelan officials deny that there is a rise in crime altogether claiming it is part of a media campaign to discredit the government (they have coined the expression “media pornography” to refer to crime coverage, thus setting the semantic stage for censoring it). However, among the most plausible causes behind the national spike in crime, some government advisers point to an overall increase in violence in the region. According to this theory, not only Venezuela is suffering from a wave of bloodshed, but also other Latin American nations like Mexico and the Central American countries.

Still, when Venezuela is compared to neighboring Colombia, it becomes clear that there’s no such regional increase in crime. Just the opposite. Colombia, until recently one of the most violent countries in the world, more than halved its rate of murders in the last 8 years. Former president Álvaro Uribe and his policy of “democratic security” deserve due credit for such an accomplishment. On the other hand, Hugo Chávez’s Bolivarian revolution has delivered Venezuelans a jump of almost 50% in the murder rate in the last 10 years:

Sources: Sistema de Gestión y Segumiento a las Metas del Gobierno de Colombia (www.sigob.gov.co) and Cuerpo de Investigaciones Científicas Penales y Criminalísticas de Venezuela (www.cicpc.gov.ve).

It seems that after Hugo Chávez, Venezuelans will need a president like Álvaro Uribe to clean the house.

President of Mexico Calls for Debate on Legalization of Drugs

For the first time ever, Mexican President Felipe Calderón said yesterday that it was “fundamental” to have a debate on the legalization of drugs. Calderon, from the conservative National Action Party (PAN), had until now been reluctant to pay heed to the growing calls in Mexico and Latin America for a hemispheric debate on drug legalization. Once they left office, two of Calderón’s predecessors—Ernesto Zedillo and Vicente Fox—have also engaged in the debate, calling for the need to legalize drugs as a way to battle the drug violence that is crippling Mexico. Others, such as Jorge Castaneda, former foreign minister of Mexico, have also called for an end to prohibition.

In today’s edition, El Universal newspaper in Mexico City claims [in Spanish] that Calderón’s turn around had something to do with a meeting he had a few days ago with Juan Manuel Santos, president-elect of Colombia. According to the newspaper’s sources, Santos told Calderón that drug trafficking is not under control in Colombian territory and that Mexico should be the country leading a public debate on legalization or decriminalization of drugs.

As I’ve written before, there is a growing consensus within Latin America about the failure of the war on drugs and the need to implement a sensible approach to drug policy. The question remains: Is anyone in Washington paying attention?

Chávez Signals Takeover of Globovisión

Since Hugo Chávez promised last year to shut down Globovisión—Venezuela’s last independent TV station—it’s only been a question of when and how he will try to fulfill his pledge. A dictator can’t tolerate a free press, and Globovisión’s critical and independent coverage has long been a thorn in Chávez’s side.

However, shutting down Globovisión would’ve been an abrupt move that would have drawn international condemnation around the world, and it would’ve made life harder for those international leaders who still claim that Venezuela is a democracy, such as Brazil’s President Luiz Inácio Lula da Silva, Spain’s Prime Minister José Luis Rodriguez Zapatero and OAS Secretary General José Miguel Insulza. Yet Chávez could ill afford having an independent TV station in light of collapsing poll numbers, rising social discontent, and a critical election in September for a new National Assembly that might lead to his party losing control of that body.

This is why Chávez has launched a takeover strategy of Globovisión, which became clear yesterday with his announcement that the Venezuelan government will take almost half of Globovisión’s shares, and name a representative in the network’s Board of Directors. His shady plan consists of seizing the shares of a bank whose owner is also a partial owner of Globovisión, and also seizing the stake of a Globovisión shareholder who recently died. This would give the government 45.8 percent of the network’s ownership. (The story is explained in full detail here). This move has been called “legally absurd” by Guillermo Zuloaga, president of Globovisión, who escaped Venezuela last month after a government-controlled court issued an arrest warrant against him and his son for “hoarding cars.”

Chávez also announced that he may appoint, Mario Silva, the Goebbels of Venezuela, to the Board of Directors of Globovisión. That would also be patently illegal.

If Chávez goes ahead with his plan to take a minority ownership share of Globovisión, despite the blatant illegal nature of his move, the case will probably end up in the courts, which are controlled by the regime. It is also easy to foresee that sooner or later Chávez will try to seize Zuloaga’s stake in Globovisión, claiming that he’s a “fugitive of justice.” Then Globovisión will be completely in the government’s hands, and Venezuela’s last independent TV station will cease to exist.

Argentina Sets an Example of Equality Before the Law for Latin America

Nowadays, it’s hard to find an instance where Argentina sets a positive example for the rest of Latin America. However, last night’s vote in that country’s Senate that legalizes same-sex marriages must be praised as that. Argentina has now become the first country in Latin America to recognize marriage equality for all couples.

The fight for marriage equality is just beginning in Latin America. Outside of Argentina, only Mexico City grants gay couples the right to marriage. Uruguay has granted civil union rights to same-sex couples since 2008, and last year in Colombia the Constitutional Court ruled that same-sex couples can be recognized as de facto unions, which enjoy all the rights of marriage. In December, Costa Rica might hold a referendum on this issue. While the referendum is promoted by opponents of gay civil unions, the vote could end up in a big upset victory for the gay community.

Latin America, with its deep-seated conservative Catholic tradition, is not fertile soil for the cause of gay equality. That is one more reason to applaud last night’s brave vote in Buenos Aires.

Unleashing an Internet Revolution in Cuba

By now the name of Yoani Sánchez has become common currency for those who follow Cuba. Through the use of New Media (blog, Twitter and YouTube) Yoani has challenged the Castro regime in a way that various U.S. government-sponsored efforts have  failed to do before, earning the respect and tacit admiration of even those who continue to sympathize with the Cuban regime. As my colleague Ian Vásquez put it a few months ago, Yoani keeps speaking truth to power.

Although she’s a remarkable individual, Yoani is not alone in fighting repression with technology. Other bloggers are making their voice heard, and that makes the Castro dictatorship nervous. As Yoani wrote in a paper recently published by Cato, despite the many difficulties and costs that regular Cubans face when trying to access Internet,

… a web of networks has emerged as the only means by which a person on the island can make his opinions known to the rest of the world. Today, this virtual space is like a training camp where Cubans go to relearn forgotten freedoms. The right of association can be found on Facebook, Twitter, and the other social networks, in a sort of compensation for the crime of “unlawful assembly” established by the Cuban penal code.

As recent events in Iran and elsewhere have shown, once a technology becomes pervasive in a society, it is extremely difficult for a totalitarian regime to control it. A new paper published today by the Cuba Study Group highlights the potential of technology in bringing about democracy and liberty to Cuba. The document entitled “Empowering the Cuban People through Technology: Recommendations for Private and Public Sector Leaders,” also recommends lifting all U.S. restrictions that hinder the opportunities of companies to provide cell phone and Internet service to the island. For example, the paper reviews the current U.S. regulatory framework on technology investment in other repressive regimes such as Iran, Syria, Burma and North Korea, and finds that “the U.S. regulations governing telecommunications-related exports to Cuba are still some of the most restrictive.”

By removing these counterproductive restrictions, Washington could help unleash an Internet revolution in Cuba. More Yoanis will certainly bring about more change in the island than 50 years of failed U.S. trade and travel bans.

How Come We Didn’t See This One Coming?

La Nación of Argentina reports today [in Spanish] that—shocker!—the Argentine government used funds from the nationalized pension funds to finance its current spending.

Let’s remember that over a year and a half ago, the administration of Cristina Fernández announced the nationalization of the private pension funds—$30 billion worth of assets—under the claim that the international financial crisis threatened to wash away the retirement savings of Argentine workers. However, it was clear from the beginning what the government’s real intentions were, especially since a surtax imposed on farmers had just been repealed by the courts and defeated in Congress.

Even Argentina’s populist hero, Juan Domingo Perón, warned 35 years earlier about a similar move from the government as Ian Vásquez pointed out in late 2008.

A Forceful Call For Change From El Paso

El Paso, TX is one of the safest cities in the country, but its residents are strongly identified with the human tragedy affecting their Mexican neighbors across the Rio Grande. El Paso shares a metropolitan area with Ciudad Juárez, México, arguably one of the most dangerous cities in the world, where over 4,000 people have been killed in the last couple of years.

This situation is something that the communities of El Paso and Las Cruces, NM want to change. On Monday, politicians, academics, civic and business leaders of both cities will hold an event calling for a “comprehensive revamping of the failed War on Drugs waged by the United States and other countries.” You can read the press release here.

Among other things, they

…advocate, as an important first step in drug reform, the repeal of the ineffective U.S. marijuana drug laws in favor of regulating, controlling and taxing the production, distribution, sale and consumption of marijuana by adults. The sale of marijuana in the U.S. black market contributes 50 to 70 percent of Mexico’s cartel revenues.

Last year the city council of El Paso passed a resolution calling for “an honest, open, national debate on ending the prohibition on narcotics.” Leading figures in the community have come to understand that the only way to tackle drug violence is by legalizing drugs, not by relying on conventional and unrealistic approaches, including tougher enforcement and sealing the border — alternatives that don’t resonate with a community so deeply intertwined with their Mexican neighbors.

As they meet at the White House on Monday, will President Obama and President Felipe Calderón of México hear the call for a change in drug policy coming from El Paso and Las Cruces?