[from Pete Kofod, 30 March 2011]
I flew Aerosur roundtrip from Miami, through Santa Cruz, Bolivia, to Salta, & returned the same way I came. The experience was largely without incident. Aerosur is a smaller airline, compared to other national carriers like American, Aerolineas, and LAN. To the best of my understanding, their only US destination is Miami, and I believe they serve the route 4-5 times per week. The flight is a red-eye in both directions, leaves around 11 PM, and lands 5:30 the following morning.
The only drawback was the 9 hour layover in Santa Cruz (both times), but the Internet was fast, the food good, and the atmosphere very relaxed, so I only considered it a minor inconvenience. The airport has modern regional airport feel to it with a gentle stream of business people and backpackers passing through the terminal throughout the day.
It is clear that the US DEA heavily subsidizes law enforcement in Bolivia. On my return to the US, my carryon bags were inspected with the ardor typically reserved for forensic scientists with OCD. This level of personalized attention was extended to everyone flying in to the US, not just yours truly. The poor chap next to me had his bag of trail mix opened and sampled. Ah yes, the War on Drugs. We may not be winning, but we can sure blow a bunch of money in the process.
Aerosur's website is a hopeless mess. It goes down continuously, and when by chance it happens to be available to the public, it provides no useful information. In the days leading up to my travel, I found myself hoping that the level of effort put to website management was not reflective of Aerosur's commitment to keeping its fleet safely maintained. Thankfully, my fears were unfounded. On my flight down, there were many Brazilians on board. Apparently it is cheaper to fly from Miami through Santa Cruz to Sao Paulo than to catch the direct flight.
I booked my reservation through travelocity, but later found the best prices at cheapOair (yes, that is the name of the company). Miami - Salta roundtrip is $750 or about $200 less than I paid. Because Aerosur doesn't fly to/from Miami every day, I entered a travel window of +/- 3 days for both departure and return to make sure the flight showed up in the search listing.
The onboard service was OK. The flight attendants were competent and polite. The meal was good, but certainly not memorable. Apparently, the service delivery model is to feed you and put you to sleep, so bring a DVD player if you want to watch a movie. I, for one, was exhausted from a week of revelry in Cafayate, so I succumbed to Morpheus' advances shortly after dinner.
On balance, I find the Aerosur option far more attractive than flying through Buenos Aires and will probably do it again, even with the whole family (my kids are 10 and 13). Candelaria indicated that Aerosur honors its Latin American relationship to punctuality and as such may not be an ideal choice for first time visitors arriving from the US or Canada. That said, the ability to check luggage from Miami directly to Salta, not having to deal with the Ezeiza-Aeroparque transfer, and shaving about four hours of flight time makes it my choice for the time being.
As a final note of interest, the Aerosur magazine showed a flight from Santa Cruz to Tucuman. I was unable to find the flight anywhere else, including on their dysfunctional website, though I will keep my eyes peeled for it.
One more observation: the immigrations desk at Salta airport does not charge US/Canadians/Brits the reciprocal visa fee. When I landed with the Tessaris, the immigration official just stamped their passport and waved them through. As Canadians they are supposed to pay every time, yet there wasn't even a booth to collect the fee like there is in Ezeiza. Sometimes inefficiency plays in your favor!
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Thursday, March 31, 2011
Siguen las negociaciones en el PRD en la casa de Tony Rivera, hermanastro de Miguel Vargas Maldonado
Las negociaciones para resolver la crisis post convención que sacude al Partido Revolucionario Dominicano (PRD) siguen en marcha con una segunda reunión iniciada hace unas horas entre las dos comisiones que representan al expresidente Hipólito Mejía y al presidente de la organización opositora Miguel Vargas, otra vez en la residencia del empresario Tony Rivera, en el sector residencial Cuesta Hermosa II del sector Arroyo Hondo.
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Publicado el jueves 31 de marzo del 2011
Más detalles
Publicado el jueves 31 de marzo del 2011
A Shakira no le fue bien. Su tardanza ante el público generó abucheos y rechazo a la cantante colombiana
La cantante colombiana Shakira presentó anoche ante miles de dominicanos un concierto vibrante pero deslucido por fallas técnicas y el cansancio de sus fans que soportaron una larga espera antes de la aparición de la artista en el escenario del Estadio Olímpico de Santo Domingo.
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Concierto deslucido. La gente se incomodó y muchos abandonaron el Olímpico
Egypt: Strike ban plan is a 'betrayal'
30 March 2011
The International Trade Union Confederation has branded a plan to outlaw strikes by Egypt's military government "a betrayal of the revolution."
It demanded on Tuesday that Prime Minister Essam Sharaf scrap the proposed decree which would threaten workers who withdraw their labour with prison terms of up to a year and fines of up to £56,000.
The Egyptian Federation of Independent Trade Unions (EFITU) has described the plan, which has already been approved by the ruling Supreme Council of the Armed Forces, as "a grave and worrisome development."
And ITUC general secretary Sharan Burrow said: "Millions of Egyptian workers continue to work for poverty wage and depriving them of the right to strike, a fundamental right under international law, would remove an essential means for working people to achieve economic and social justice."
Ms Burrows said that by seeking to repress legitimate union activity the junta would also "suffocate the development of a vibrant civil society, which Egypt desperately needs for building democracy."
The EFITU has called on authorities to start dealing with Egyptian workers as "citizens, not subjects."
But the ETUF - the officially sanctioned trade union centre under former president Hosni Mubarak - has welcomed the proposal to make strikes illegal, apparently because it would serve to undermine the burgeoning EFITU.
Ms Burrows condemned the "discredited and unrepresentative remnant of the old regime" for continuing to seek to talk on behalf of Egypt's working people.
She said that like workers everywhere "they are perfectly capable of organising their own trade unions, but they can only do this effectively if the authorities refrain from the anti-democratic habits of the past."
The International Trade Union Confederation has branded a plan to outlaw strikes by Egypt's military government "a betrayal of the revolution."
It demanded on Tuesday that Prime Minister Essam Sharaf scrap the proposed decree which would threaten workers who withdraw their labour with prison terms of up to a year and fines of up to £56,000.
The Egyptian Federation of Independent Trade Unions (EFITU) has described the plan, which has already been approved by the ruling Supreme Council of the Armed Forces, as "a grave and worrisome development."
And ITUC general secretary Sharan Burrow said: "Millions of Egyptian workers continue to work for poverty wage and depriving them of the right to strike, a fundamental right under international law, would remove an essential means for working people to achieve economic and social justice."
Ms Burrows said that by seeking to repress legitimate union activity the junta would also "suffocate the development of a vibrant civil society, which Egypt desperately needs for building democracy."
The EFITU has called on authorities to start dealing with Egyptian workers as "citizens, not subjects."
But the ETUF - the officially sanctioned trade union centre under former president Hosni Mubarak - has welcomed the proposal to make strikes illegal, apparently because it would serve to undermine the burgeoning EFITU.
Ms Burrows condemned the "discredited and unrepresentative remnant of the old regime" for continuing to seek to talk on behalf of Egypt's working people.
She said that like workers everywhere "they are perfectly capable of organising their own trade unions, but they can only do this effectively if the authorities refrain from the anti-democratic habits of the past."
Norman Vincent Peale
"Imagination is the true magic carpet."Author, Minister
1898 - 1993
Our minds are very powerful. What we imagine, think and say can impact what we do. Creative leaders should use their imagination not only for their creative work, but also for their personal lives. Can you see yourself as a successful writer, artist or actor? Can you see yourself sitting at a desk typing that great novel or standing at a easel painting your best painting?
Do you want to change some habit or relationship? Begin by imagining yourself in a new role or relationship. See yourself successfully behaving in a new way. We call this positive visualization. Most of us already do negative visualization. Do you ever worry about the future? Worry is a negative form of visualization.Through the process of visualization we can change who we are. This is the power of positive thinking. The easiest thing in the world is to be negative. It takes a lot more will power to be positive in a negative world. I challenge you to take five minutes each day and visualize your success.
Wednesday, March 30, 2011
SONG OF THE WEEK - "Think You Can Wait" by The National
"Think You Can Wait" by The National
"I was drifting, crying
I was looking for an island
I was slipping under
I'll pull the devil down with me one way or another..."
I was looking for an island
I was slipping under
I'll pull the devil down with me one way or another..."
Taken from the critically acclaimed film "Win Win", the American indie band The National score with another deep, melancholy beauty of a song. Featuring the hushed background vocals of singer Sharon Van Etten, you can find this tack available as a single download @ iTunes. The soundtrack featuring an original score by Lyle Workman will be available in April.
Sobeida Félix Morel al parecer entró en negociaciones con la justicia dominicana
Una posible negociación que se produzca entre Sobeida Félix Morel y las autoridades judiciales, provocaría una revolución en el caso que se sigue a los acusados de estar ligados al alegado narcotraficante puertorriqueño José Figueroa Agosto, según comentó una fuente a reporteros de Acento.com.do, la cual aseguró que esa posibilidad estaría tomando forma.
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Publicado el miércoles 30 de marzo del 2011
Más detalles
Publicado el miércoles 30 de marzo del 2011
Forman movimiento para exigier el respeto a la Constitución Dominicana
Más de un centenar de organizaciones de la sociedad civil conformaron este martes un movimiento con el própósito de exigir a los distintos poderes del Estado el cumplimiento de las leyes, al tiempo que demandaron de los miembros del Congreso Nacional el respeto a la Constitución de la República.
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Publicado el miércoles 30 de marzo del 2011
Más detalles
Publicado el miércoles 30 de marzo del 2011
Carol & Mike's House Tour
Rudi Goldman asked for a house tour, & Carol & Reg Chappell & Ted Harrison & his wife Louise Andrew came along, too. Rudi video'd it:
Impiden el trabajo de la prensa en el PRD. La seguridad restringe la labor de reporteros en la Casa Nacional
El equipo de seguridad de la Casa Nacional del Partido Revolucionario Dominicano (PRD) ordenó la salida del personal que labora en el lugar y los periodistas que se encontraban allí, lo que fue repudiado por el vicepresidente de la comisión organizadora de la convención, Hugo Tolentino Dipp.
Publicado el miércoles 30 de marzo del 2011
El PRD se desmorona: Grupo de Miguel Vargas Maldonado secuestra a las secretarias de Esquea Guerrero. Impiden entrada a periodistas...!!!!!
Foto: www.acento.com.do
La crisis del Partido Revolucionario Dominicano tomó un nuevo giro este miércoles cuando un grupo de hombres seguidores de Miguel Vargas Maldonado entraron abruptamente a las oficinas de las secretarias del doctor Enmanuel Esquea Guerrero y las encerraron y mantuvieron secuestradas por diez minutos.
Publicado el miércoles 30 de marzo
La ola de violencia y criminalidad no se detiene. Desconocidos asesinan pollero para robarle
Un vendedor de pollos fue asesinado a balazos hace unos minutos por tres desconocidos a bordo de una motocicleta con el propósito de asaltarlo en momentos en que se disponía a abrir su negocio en la calle Profesor Amiama Gómez del sector de Villa Juana
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Publicado el miércoles 30 de marzo del 2011
Más detalles
Publicado el miércoles 30 de marzo del 2011
Shakira llega hoy a la una de la tarde a Dominicana
La colombiana Shakira arriba esta tarde al país por el aeropuerto del Higuero. Su concierto de esta noche en el Estadio Olímpico es esperado por una gran parte de sus seguidores y simpatizantes en el país. Junto con ella , actuarán varios artitas del patio, entre ellos, El Cata, Secreto, Vicente Garcia y otros.
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Publicado el miércoles 30 de marzo del 2011
Más detalles
Publicado el miércoles 30 de marzo del 2011
Marian Wright Edelman
"Remember your roots, your history, and the forebearers' shoulders on which you stand. And pass these roots on to your children and to other children."American Author and
Founder, Children's Defense Fund
1939 -
As writers, artists, dancers and actors, we need to know our roots, our history and the people on whose shoulders we stand. To whom do we owe a deep debt of gratitude for paving the way. Who are your mentors? Those who have taught you about your profession? Have you said thank you?
And have you passed on your knowledge onto others? Have you been a teacher or a mentor? Do you readily share your knowledge or do you keep your knowledge hidden? Age and years of experience do not matter. Even the novice has something to teach the master. Any master who does not feel he can still learn something is not a true master. We all must be open to new experiences and new ways of thinking.
This quote also applies to our family history. On whose shoulders do you stand? Were you like me to be the first in your family to attend college? To whom do you owe thanks for who you became. Without your parents, your grandparents or your great-grand parents, you would not be here. Do you know your family history? Have you collected your family stories? Have you passed those stories onto your children and your grandchildren?
Tuesday, March 29, 2011
Free Download - "Louder Than Ever" by Cold War Kids
Cold War Kids are an indie rock band who hail out of Long Beach, California. You can download their single "Louder Than Ever" from their album Mine Is Yours (2011) for free below.
Buscando el bajadero de la reelección. Fernández y legisladores se reúnen en Palacio
En la reunión de casi de dos horas que sostuvo el presidente Leonel Fernández con los legisladores del Partido de la Liberación Dominicana (PLD) pasaron revista a la agenda legislativa y acordaron hacer un debate público para explicarle a la sociedad que con el proceso que se siguió para aprobar la Ley del Consejo Nacional de la Magistratura (CNM) no se violó la Constitución de la República.
Publicado el martes 29 de marzo del 2011
gringos in Latin America
[from Paco Ignacio Taibo II's Four Hands, tr. Laura C. Dail, St. Martin's Press, 1990]
To be a U.S.-citizen-born-gringo in Latin America is a pastime for the unconscious, economic gangsters, commercial missionaries, radicals on the verge of jubilation, freaks, dreamers or crusaders. They all furnish the continent south of the border with their own demons. They travel with their ghosts. Then there are the others, us dreamers, those who believe there are no borders or countries, just landscapes and song sometimes sung in unknown languages. Of all the monsters who travel south, we are the most dangerous because we believe we don't have the original sin that has to be forgiven; because we rationally think that we are not excessively different, that we can coexist with the natives on fair terms: You give to me, I give to you, you smile at me, I smile at you, even though at night we have nightmares in which half-naked, starving children, the live Latin American ghosts, point their fingers at us.
Going south is, as Malcolm Lowry and Joseph Conrad and Ambrose Bierce knew, a descent into hell itself. Leaving the deceptive North American Paradise, the true hell, the demons attack, they attempt to escape from the skin and gush forth. One knows it when traveling south, one knows the Martians who play Ping-Pong inside our heads. And in the end, one is grateful that it is so and not any other way. Anyone who doesn't have hells will be content to die kneeling in front of a television in a place as ludicrous as Indianapolis.
To be a U.S.-citizen-born-gringo in Latin America is a pastime for the unconscious, economic gangsters, commercial missionaries, radicals on the verge of jubilation, freaks, dreamers or crusaders. They all furnish the continent south of the border with their own demons. They travel with their ghosts. Then there are the others, us dreamers, those who believe there are no borders or countries, just landscapes and song sometimes sung in unknown languages. Of all the monsters who travel south, we are the most dangerous because we believe we don't have the original sin that has to be forgiven; because we rationally think that we are not excessively different, that we can coexist with the natives on fair terms: You give to me, I give to you, you smile at me, I smile at you, even though at night we have nightmares in which half-naked, starving children, the live Latin American ghosts, point their fingers at us.
Going south is, as Malcolm Lowry and Joseph Conrad and Ambrose Bierce knew, a descent into hell itself. Leaving the deceptive North American Paradise, the true hell, the demons attack, they attempt to escape from the skin and gush forth. One knows it when traveling south, one knows the Martians who play Ping-Pong inside our heads. And in the end, one is grateful that it is so and not any other way. Anyone who doesn't have hells will be content to die kneeling in front of a television in a place as ludicrous as Indianapolis.
Carter espera contribuir en mejora de relaciones entre EE.UU. y Cuba - DiarioLibre.com
Carter espera contribuir en mejora de relaciones entre EE.UU. y Cuba - DiarioLibre.com
La bloguera cubana Yoani Sánchez será recibida por Carter en La Habana. Igualmente, las Damas de Blanco y parte de la disidencia tradicional en Cuba.
La bloguera cubana Yoani Sánchez será recibida por Carter en La Habana. Igualmente, las Damas de Blanco y parte de la disidencia tradicional en Cuba.
Brazil's new tax
[from MercoPress, 29 March 2011]
Brazil plans to tax local corporations overseas bond issues, says financial media
The Brazilian government is planning to impose a financial operations tax on overseas bond issues by Brazilian companies, local financial daily Valor Economico reported Monday.
The tax is part of a government drive to reduce U.S. dollar inflows and arrest the appreciation of the Brazilian Real against the U.S. dollar. The Real has gained 45% against the dollar over the past two years, hurting exports.
According to the newspaper, which cited an unnamed person close to the government, officials are also concerned about a recent increase in dollar-denominated debt among Brazilian companies. The government is planning to impose a financial operations tax of 6% on such operations.
In the first two months of the year, local companies increased overseas debt by 16.4 billion US dollars to 190.3 billion USD, according to the central bank.
In 2008, some local companies suffered huge financial losses when dollar-denominated debt ballooned because of a rapid depreciation of the Brazilian real against the U.S. dollar. The Real depreciated strongly against the dollar from 2008 to 2009 because of the global financial crisis. In 2009, the Real began a swift recovery.
Brazil plans to tax local corporations overseas bond issues, says financial media
The Brazilian government is planning to impose a financial operations tax on overseas bond issues by Brazilian companies, local financial daily Valor Economico reported Monday.
The tax is part of a government drive to reduce U.S. dollar inflows and arrest the appreciation of the Brazilian Real against the U.S. dollar. The Real has gained 45% against the dollar over the past two years, hurting exports.
According to the newspaper, which cited an unnamed person close to the government, officials are also concerned about a recent increase in dollar-denominated debt among Brazilian companies. The government is planning to impose a financial operations tax of 6% on such operations.
In the first two months of the year, local companies increased overseas debt by 16.4 billion US dollars to 190.3 billion USD, according to the central bank.
In 2008, some local companies suffered huge financial losses when dollar-denominated debt ballooned because of a rapid depreciation of the Brazilian real against the U.S. dollar. The Real depreciated strongly against the dollar from 2008 to 2009 because of the global financial crisis. In 2009, the Real began a swift recovery.
the best pasta in Buenos Aires
According to Brando, Buenos Aires has great pasta restaurants because so many porteños (people who live in Buenos Aires) are of Italian descent. Here's Brando's map of fine pasta restaurants:
Read today's Brando article to learn more.
Read today's Brando article to learn more.
El mensajero que robó por amor...La noviecita le tendió una trampa
Carlos David García Rojas, el mensajero que huyó tras canjear un cheque de RD$5.4 millones, propiedad de la empresa para la que laboraba, confesó que cuando tenía el dinero en efectivo en la mano se embriagó de amor por su novia, a la que quería con pasión.
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Publicado el martes 29 de marzo del 2011
Más detalles
Publicado el martes 29 de marzo del 2011
Shakira viaja con 25 toneladas de peso entre sonido, tramoya y demás. Solo ha pedido agua y frutas para su estancia en Santo Domingo
La colombiana Shakira que se presenta mañana miércoles 30 en Santo Domingo, viaja con 25 toneladas de peso y solo ha pedido agua y frutas entre sus exigencias de artista de talla internacional.
La artista estará acompañada en su concierto de mañana en el Estadio Olímpico por el Cata -loca con su tíguere- Vicente García, Secreto, Bocatabú y otros.
El Shakira Pop Festival promete ser todo un acontecimiento de masas en Dominicana.
Más detalles
Publicado el martes 29 de marzo del 2011
La artista estará acompañada en su concierto de mañana en el Estadio Olímpico por el Cata -loca con su tíguere- Vicente García, Secreto, Bocatabú y otros.
El Shakira Pop Festival promete ser todo un acontecimiento de masas en Dominicana.
Más detalles
Publicado el martes 29 de marzo del 2011
Amable Aristy Castro gastó cientos de millones de pesos durante sus años en la Liga Municipal Dominicana, segun auditoria de la Cámara de Cuentas
El Cacique de Higuey, Amable Aristy Castro, derrochó cientos de millones de pesos del contribuyente dominicano cuando administraba la Liga Municipal Dominicana entre los años 1998 y 2010. La dilapidación de dinero se hizo gracias al apoyo del PLD, PRD y PRSC. La revelacion la hizo anoche el Informe de Alicia Ortega dando a conocer una auditoria sobre la institución que dirigia Aristy Castro que hiciera la Cámara de Cuentas.
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Publicado el martes 29 de marzo del 2011
Más detalles
Publicado el martes 29 de marzo del 2011
Yasi: workers left out to dry
Heather Beck Cairns Post
Tuesday, March 29, 2011
The Queensland Electrical Trades Union has named and shamed a New South Wales power company for failing to fully pay 20 of its cyclone Yasi response workers.
Local ETU representatives have described the behaviour of NSW power company Integral Energy during the cyclone recovery period as “disgraceful and mean-spirited”. In a statement, the ETU said Integral sent 20 workers to Tully to help with the clean-up, but then refused to pay them a Working in the Rain entitlement.
This was “despite the region being one of the wettest in Australia, the fact they were doing outstanding community recovery work in hot, wet conditions and the fact all other power workers around them were receiving the WIR rates”, the statement said. WIR rates are not paid in New South Wales but ETU secretary Peter Simpson said the refusal to pay the rates was “ridiculous” as Ergon had agreed to reimburse interstate companies for the extra payments.
When Integral management at Tully were advised of this, they reportedly threatened to restrict the number of hours each man could work to eight hours a day, instead of the minimum 11.5 hours that other workers were doing to restore power sooner. Integral is now threatening to take action against the ETU with Fair Work Australia and the Australian Building and Construction Commission because they pursued the issue, the ETU statement said.
“It’s really got our hackles up,” ETU Far North Queensland organiser Stuart Traill said.
“We had blokes working with us who were emotionally strained because their houses had been flattened – there’s no way that we would threaten industrial action in that sort of atmosphere.”
Tuesday, March 29, 2011
The Queensland Electrical Trades Union has named and shamed a New South Wales power company for failing to fully pay 20 of its cyclone Yasi response workers.
Local ETU representatives have described the behaviour of NSW power company Integral Energy during the cyclone recovery period as “disgraceful and mean-spirited”. In a statement, the ETU said Integral sent 20 workers to Tully to help with the clean-up, but then refused to pay them a Working in the Rain entitlement.
This was “despite the region being one of the wettest in Australia, the fact they were doing outstanding community recovery work in hot, wet conditions and the fact all other power workers around them were receiving the WIR rates”, the statement said. WIR rates are not paid in New South Wales but ETU secretary Peter Simpson said the refusal to pay the rates was “ridiculous” as Ergon had agreed to reimburse interstate companies for the extra payments.
When Integral management at Tully were advised of this, they reportedly threatened to restrict the number of hours each man could work to eight hours a day, instead of the minimum 11.5 hours that other workers were doing to restore power sooner. Integral is now threatening to take action against the ETU with Fair Work Australia and the Australian Building and Construction Commission because they pursued the issue, the ETU statement said.
“It’s really got our hackles up,” ETU Far North Queensland organiser Stuart Traill said.
“We had blokes working with us who were emotionally strained because their houses had been flattened – there’s no way that we would threaten industrial action in that sort of atmosphere.”
Get-Up: problem pokies
 |
| www.getup.org.au/campaign/pokies |
Problem gamblers can easily lose more than $1,000 an hour on poker machines. It tears families apart, houses are lost and kids go hungry. That's why the machines are referred to as the 'crack cocaine of the gambling industry.'
In this Parliament we have our best chance ever to tackle the problem on account of the agreement for reform I have with the Government.
But the powerful Clubs Australia has just announced that it will spend $20 million to stop that happening. And we all know what the mining industry achieved with its $20-million advertising campaign against the super profits tax last year.
It will take a committed effort to win this fight. Let's give it an enormous boost with a huge national petition to show my colleagues and the media that while Clubs Australia has the money, we have the people.
I'll launch the petition with GetUp at the National Press Club today and present it to the Prime Minister when we reach 100,000 names. Please add your voice and forward this to everyone you know.
www.getup.org.au/campaign/pokies
Benjamin Spock
"Trust yourself. You know more than you think you do."American Pediatrician, Author
1903 - 1998
Spock wrote these words to the mothers of baby boomers in his best selling book, Baby and Child Care, and he launched a generation. And his advice is just as important to creative leaders. As artistic people, we need learn to trust ourselves -- our intuition. The knowledge we have to write, to draw and to act is inside of us. We need to learn to hear that small voice when it speaks and then to do what it says. Too often we second guess ourselves and do what we think we should do.
Believe in yourself. Believe in your talent. Believe in your creative gift. Believe in that small voice deep inside. If you learn to trust yourself, you will be successful.
Monday, March 28, 2011
Allende's Chile
During Salvador Allende's presidency, Marxist Edward Boorstein was an assistant & close friend of Jaime Barrios, an economic advisor to Allende. Boorstein's Allende's Chile: An Inside View is the author's report on what happened, what Allende achieved, & why he failed.
I knew nothing of this history & found the book well worth the read.
Boorstein's proposition is that Allende failed because he behaved honorably, while everyone else – Chilean political parties, Chilean armed forces, Chilean press, international corporations with Chilean interests, United States government (Nixon, Kissinger) & CIA – behaved dishonorably wherever dishonor served them well.
Drake's "Old Money" Goes Viral
Drake's humorous clip from Canada's Juno Awards hits the internet and goes viral. Check out "Old Money" below.
Occidente amenaza a Gadafi: "tiene que irse inmediatamente antes de que sea tarde"
Los presidentes de Estados Unidos, Francia y Alemania afirmaron de manera conjunta que Gadafi "debe irse de inmediato", pues su régimen "ha perdido toda legitimidad", por lo que pidieron a sus partidarios que le abandonen "antes de que sea demasiado tarde".
Más detalles
Publicado el lunes 28 de marzo del 2011
Más detalles
Publicado el lunes 28 de marzo del 2011
Leonel Fernández se reunirá con sus legisladores
Los legisladores del Partido de la Liberación Dominicana fueron convocados por el presidente Leonel Fernández a una reunión este martes en el Palacio Nacional.
Más detalles
Publicado el lunes 8 de marzo del 2011
Más detalles
Publicado el lunes 8 de marzo del 2011
John Maxwell
"The fear of rejection or failure creates inaction."American Author, Speaker
1947 -
Fear is a very powerful force that affects the lives of most creative leaders. Some people are afraid to leave their houses. Some people like me are afraid of heights. Others are afraid of elevators. This list could go on and on. A person who claims that he is not afraid of anything is either delusional or a liar. We are all afraid of something.
It takes courage to look fear in the face and still do something when you are afraid. If you give into fear, you will freeze on the spot and not move. Creative leaders face a lot of rejection of their ideas and work. But we must keep going. What is the worst thing that can happen? People don't like us. So what? Every famous writer, artist, singer or actor has people who don't like them. No one is liked by everyone. So why should you and me expect to be liked by everyone? In fact, think about the famous people whom you don't like. You, in a sense are rejecting them.
I learned a powerful lesson from a professional speaker. He told me that 10% of your audience will not like you. They may not like the color of your hair. Or the sound of your voice. Or the tie you are wearing. And it has held true for me. Ten percent of my audience don't like my loud voice. So I focus on the other 90%. I don't let my fear of rejection prevent me from speaking.
Rejection is a good thing. It keeps us humble. We are not perfect so we shouldn't let success go to our heads. It lets us know that we are ahead of our time. We have found people who don't like our work and that is okay. So don't let fear stop you from creating and producing new work.
(For those who read my blog regularly, I apologize for not leaving an entry yesterday. I have spent the last two days in the hospital because of dehydration. I checked out about three hours ago and am healthy again.)
Héctor Acosta- El Torito- encabeza marcha contra apagones en Bonao
Héctor Acosta encabezó hace unas horas una protesta de los moradores de Las Delicias de Bonao, quienes bloquearon la principal vía del sector en demanda de que Edenorte lleve energía eléctrica.
Publicado el lunes 28 de marzo del 2011
Descubren cadáver de oficial en apartamento de la Zona Colonial
El cadáver del oficial Rafael Alejandro Valdez Jorge fue encontrado en estado de descomposición, informo la Policía Nacional.
De acuerdo al informe de la Policía, el oficial vivía solo en ese apartamento de un complejo habitacional de la zona colonial.
Publicado el lunes 28 de marzo del 2011
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Melbourne: Desal nightmare
Billions down the drain in Kafkaesque desal nightmare
The Age March 28, 2011
There is no commercial contract that can't be broken, including the desalination contract with AquaSure. The issue is what is fair compensation. The courts would determine this on the present-day value of the contract, based on an independently determined discount rate applied to future streams of payments if the contract was fulfilled.
The desal plant is not needed. Melbourne's catchment area gets more than sufficient rainfall to meet the city's existing and future needs.
Advertisement: Story continues below
If the contract is fulfilled, in the first year the government will have to pay AquaSure $763 million, rising by 7.3 per cent a year over the 28-year life of the contract. This means that half way through the contract, in 2026, AquaSure will be paid $2 billion, rising to $5.1 billion in the final year.
Dam water costs about 55¢ a kilolitre, which is marked up to $1.80 for sale to households. The 150 gigalitres supplied by AquaSure - which must be paid for irrespective of whether it is used - will cost Melbourne Water $5.09 a a kilolitre in 2012. In 14 years' time, the desal water will cost $13.33 a kilolitre and in 28 years it will be $34 a kilolitre. In contrast, the dams and pipes with a life of more than 100 years would be paid off in 28 years' time, when the cost of water in real terms would be less than 55¢ a kilolitre.
But it gets worse. The payment to AquaSure is the manufactured price. The water has to be marked up to cover the cost of wholesale and retail distribution. The mark-up on dam water is more than 300 per cent, which provides a dividend to the government of about $300 million a year and helps pay the salaries of teachers, nurses and police.
Based on average household consumption of 400 kilolitres, households pay about $1400 a year now for water, including parks and sewerage. In 2012, when households will have to take 40 per cent of their water from the desal plant, they will have to pay about $3000 for their water - providing the wholesale and retail mark-up is reduced to just over 200 per cent. The impact is three-fold: retailers will have to cut back on staff and maintenance, will not pay dividends, and will have to seek a government subsidy in order to make water affordable for two-thirds of the population.
Households will not be able to avoid the pain by putting in rainwater tanks or abandoning their gardens and limiting their consumption because AquaSure has a take-or-pay contract.
Unless the contract is cancelled, the government will be forced to pay larger subsidies each year - until AquaSure offers to put the government out of its misery by offering to take over metropolitan water assets in exchange for a renegotiation of water prices.
The Age March 28, 2011
There is no commercial contract that can't be broken, including the desalination contract with AquaSure. The issue is what is fair compensation. The courts would determine this on the present-day value of the contract, based on an independently determined discount rate applied to future streams of payments if the contract was fulfilled.
The desal plant is not needed. Melbourne's catchment area gets more than sufficient rainfall to meet the city's existing and future needs.
Advertisement: Story continues below
If the contract is fulfilled, in the first year the government will have to pay AquaSure $763 million, rising by 7.3 per cent a year over the 28-year life of the contract. This means that half way through the contract, in 2026, AquaSure will be paid $2 billion, rising to $5.1 billion in the final year.
Dam water costs about 55¢ a kilolitre, which is marked up to $1.80 for sale to households. The 150 gigalitres supplied by AquaSure - which must be paid for irrespective of whether it is used - will cost Melbourne Water $5.09 a a kilolitre in 2012. In 14 years' time, the desal water will cost $13.33 a kilolitre and in 28 years it will be $34 a kilolitre. In contrast, the dams and pipes with a life of more than 100 years would be paid off in 28 years' time, when the cost of water in real terms would be less than 55¢ a kilolitre.
But it gets worse. The payment to AquaSure is the manufactured price. The water has to be marked up to cover the cost of wholesale and retail distribution. The mark-up on dam water is more than 300 per cent, which provides a dividend to the government of about $300 million a year and helps pay the salaries of teachers, nurses and police.
Based on average household consumption of 400 kilolitres, households pay about $1400 a year now for water, including parks and sewerage. In 2012, when households will have to take 40 per cent of their water from the desal plant, they will have to pay about $3000 for their water - providing the wholesale and retail mark-up is reduced to just over 200 per cent. The impact is three-fold: retailers will have to cut back on staff and maintenance, will not pay dividends, and will have to seek a government subsidy in order to make water affordable for two-thirds of the population.
Households will not be able to avoid the pain by putting in rainwater tanks or abandoning their gardens and limiting their consumption because AquaSure has a take-or-pay contract.
Unless the contract is cancelled, the government will be forced to pay larger subsidies each year - until AquaSure offers to put the government out of its misery by offering to take over metropolitan water assets in exchange for a renegotiation of water prices.
Sunday, March 27, 2011
GPS in Argentina
Greg Utas offers this information about using a Garmin GPS in Argentina:
I took my Garmin 255W to Argentina and it worked great. Very useful for driving around the city of Salta. The maps were loaded onto a small memory card that goes into a slot on the side of the Garmin. I ordered a preloaded card from travelbygps.com.
You can download the maps yourself, but for $20 I didn't want to spend time on it. The maps also include Chile, Uruguay, and Paraguay.
Not everything went smoothly. My 12V (cigarette lighter) adapter would often fall out when driving over a bump. You can imagine the hassle, so I travelled around Salta in search of a new adapter. Marc Chagall, located at Florida 11 in the pedestrian mall area just south of the Hotel Alejandro I, had a 12V adapter with a USB port. They also had a USB cable to plug into this port, one with the right connector for the Garmin at the other end. This adapter could still fall out, but twisting a car key under the spring clips widened their grip to the point where they would hold.
The maps don't know about La Estancia's roads yet, apart from the southern service road. And a couple of times, they wanted to send me the wrong way down a one-way street. So pay attention.
On 2 April 2011, Jeremy commented: You can find Garmin-compatible maps of Argentina and Uruguay at www.proyectomapear.com.ar. It's free, by the way, and it works.
I took my Garmin 255W to Argentina and it worked great. Very useful for driving around the city of Salta. The maps were loaded onto a small memory card that goes into a slot on the side of the Garmin. I ordered a preloaded card from travelbygps.com.
You can download the maps yourself, but for $20 I didn't want to spend time on it. The maps also include Chile, Uruguay, and Paraguay.
Not everything went smoothly. My 12V (cigarette lighter) adapter would often fall out when driving over a bump. You can imagine the hassle, so I travelled around Salta in search of a new adapter. Marc Chagall, located at Florida 11 in the pedestrian mall area just south of the Hotel Alejandro I, had a 12V adapter with a USB port. They also had a USB cable to plug into this port, one with the right connector for the Garmin at the other end. This adapter could still fall out, but twisting a car key under the spring clips widened their grip to the point where they would hold.
The maps don't know about La Estancia's roads yet, apart from the southern service road. And a couple of times, they wanted to send me the wrong way down a one-way street. So pay attention.
On 2 April 2011, Jeremy commented: You can find Garmin-compatible maps of Argentina and Uruguay at www.proyectomapear.com.ar. It's free, by the way, and it works.
2011 JUNO AWARD WINNERS
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| 2011 Juno Host Drake. |
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| Nominee Sarah McLachlan. |
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| Humanitarian Award recipient & Artist of the Year Neil Young. |
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| Song of the Year winner K'Naan. |
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| Hall of Fame inductee Shania Twain. |
Johnny Reid, Arcade Fire, Hedley and Chromeo for some spectacular live performances. Great music lives in Canada.
Album of the Year - Arcade Fire, The Suburbs
Group of the Year - Arcade Fire
Song Writer of the Year - Arcade Fire
Alternative Album of the Year - Arcade Fire, The Suburbs
Group of the Year - Arcade Fire
Song Writer of the Year - Arcade Fire
Alternative Album of the Year - Arcade Fire, The Suburbs
Fan Choice - Justin Bieber
Pop Album of the Year - Justin Bieber, My World 2.0
Artist of the Year - Neil Young
Humanitarian Award - Neil Young
Pop Album of the Year - Justin Bieber, My World 2.0
Artist of the Year - Neil Young
Humanitarian Award - Neil Young
Adult Alternative Album of the Year - Neil Young, Le Noise
R&B/Soul Recording of the Year - Quanteisha, "Stars"
Country Album of the Year - Johnny Reid, A Place Called Love
Canadian Music Hall of Fame - Shania Twain
Producer of the Year - Daniel Lanois
Rap Recording of the Year - Shad, TSOL
Rock Album of the Year - Matthew Good, Vancouver
Best New Artist - Meaghan Smith
Electronic Album of the Year - Caribou, Swim
Dance Recording of the Year -
Deadmau5, “Sofi Needs a Ladder”
International Album of the Year - Katy Perry, Teenage Dream
Francophone Album of the Year -
Karkwa, Les Chemins de verre
Single of the Year - Young Artists for Haiti, "Wavin' Flag"
Rap Recording of the Year - Shad, TSOL
Rock Album of the Year - Matthew Good, Vancouver
Best New Artist - Meaghan Smith
Electronic Album of the Year - Caribou, Swim
Dance Recording of the Year -
Deadmau5, “Sofi Needs a Ladder”
International Album of the Year - Katy Perry, Teenage Dream
Francophone Album of the Year -
Karkwa, Les Chemins de verre
Single of the Year - Young Artists for Haiti, "Wavin' Flag"
All music available @ iTunes.
junoawards.ca
special report on La Estancia de Cafayate
[from Jeff Berwick's The Dollar Vigilante, 25 March 2011, published here under special permission from the author]
Special Report: La Estancia de Cafayate
Sitting Out TEOTMSAWKI In Galt's Gulch
I accepted an invitation (all at my own expense) to go down to Doug Casey’s, La Estancia de Cafayate, in Salta Province, Argentina without quite understanding what I was about to discover. I even told friends and those who asked that, “I doubt I’ll buy a place.”
Why? For starters, I like living in larger cities – or at least not “out in the country” somewhere. I like shops, restaurants, bars and discos. And secondly, I had the complete misperception that this was some sort of typical, planned gated community. Not my style.
What I discovered has excited me so much that I am, as I write, working on purchasing a lot on which I will build a small home. As well, I am telling all my like-minded friends that if they can, they must come down and see what is being developed there.
GALT’S GULCH
It’s Galt’s Gulch. There is no better way to describe it. For those who haven’t read Atlas Shrugged, the long awaited movie based on the book is coming out next month (see the movie trailer here).
Galt’s Gulch, in the book, was a place where many of the most productive, intelligent and industrious people of the world esconded when the rest of the world was thrusting socialism/communism upon them.
The parallels to Galt’s Gulch are numerous, including the fact that Galt’s Gulch was built far away from civilization at a high altitude.
ABOUT CAFAYATE
Founded in 1840 and protected by incredible red rock formations that frame the drive in from Salta, Cafayate is internationally known for its wines - of which we tasted many on this particular tour.
It is a high altitude valley, 1600 meters (5800 ft) above sea level, which offers ideal conditions for producing world-class wines, and is known for its Torrontes and Malbec which grow easily inside of the temperate climate and over 320 days of sunshine each year - something which I consider crucial to health - free, daily Vitamin D.
One of the nicest features of La Estancia is that it is just outside the city boundary of Cafayate - about a 2 minute drive from town. So, you are out-of-town, but within minutes of dozens of world-class restaurants and shops.
WHAT IS LA ESTANCIA DE CAFAYATE?
La Estancia is an ultra-modern, luxury development in Salta Province, Argentina. It was conceived by best-selling author Doug Casey (The International Man, Crisis Investing and founder of Casey Research) and partners as the quintessential retreat for discerning individuals looking for an amenities rich lifestyle in the company of a diverse community of residents from around the globe (at this point, owners come from more than 20 different countries - off the top of my head, of owners I met: Germany, Lithuania, Mexico, Romania, US, Canada...).
La Estancia de Cafayate is simply massive in size, stretching over 1,360 acres - a meandering collection of vineyards, horse pastures, and the brand new Bob Cupp links style golf course. All of the properties enjoy stunning views of the surrounding mountains, then, depending on personal tastes, also benefits from golf course or polo field frontage, or surrounding vineyards or pastures.
It will be home, upon completion, to 360 housing lots. Already 200 are sold and, in my opinion, it won’t be much longer for the rest to sell. And once they are sold, that is that. They will not be building more.
WHAT MAKES LA ESTANCIA SPECIAL?
La Estancia De Cafayate is the brainchild of Doug Casey – an avid fan and past friend of Ayn Rand – who scoured much of the world looking for the perfect place to sit out The End Of The Monetary System As We Know It (TEOTMSAWKI). According to him and his wife they spent years looking for a place that had all the right characteristics.
What characteristics?
It had to be far from “civilization”. Cafayate meets that, in that the closest large city is a thousand miles away. But that doesn’t mean it isn’t “civilized” – it is, in fact, ultra-civilized in this remote location in Salta Province. However, it should be noted, even if there were large population centers nearby, La Estancia would still be one of the safest places on Earth. Why? Nearly everyone I spoke with who intends on living in La Estancia are the type of people who consider self-defense their responsibility and not the responsibility of the state.
It also had to be fairly self-sufficient. Cafayate meets that in that it is built atop a giant aquifer where much of the Andes drains into. Water? No problem. Electricity? The power comes from hydroelectric so even in the event of serious supply chain collapse there is very little chance that the waterfalls and rivers supplying the power will come to a halt. Coal fired, natural gas and nuclear plants could see their supply of energy get cut-off for a period of time as supply chains grind to a halt – but this is very unlikely to happen to hydro plants.
As well, La Estancia is home to hundreds of acres of vineyards (which are owned by home owners in the project) – so no shortage of wine. And on or near the estate almost any and every form of agriculture and farm animals are nearby. Doug Casey, in fact, owns a very large cattle ranch just a few hours north of Salta. So, in the event of parts of the world being forced into a famine situation as supply chains seize, those at Cafayate will be dining on steak, fresh vegetables and fine wines.
Another important factor for locating La Estancia in Cafayate is that it needed to be situated in a country where government is not much more than a nuisance. Argentina fits the bill here. In fact, the ex-Governor of Salta Province is a partner in the development so, even if the government in Argentina begins to try to appropriate land or wealth from residents (something it has never done) it is highly unlikely that La Estancia de Cafayate will be targeted.
WHAT AMENITIES WILL LA ESTANCIA OFFER?
La Estancia de Cafayate has been designed from the ground up to support an incredibly rich lifestyle.
These are just a few of the amenities:
§ 60-100 hectares of shared-ownership vineyards – As a property owner you legitimately pick up bragging rights as owning a vineyard in Argentina!
§ Vintner’s Heath Golf Course – An 18-hole Bob Cupp-designed golf course with a clubhouse, driving range and short game practice facility. When completed, this will be one of the finest golf courses in all of Argentina, and even South America - and from what I understand, owners play at $12/round!
§ Authentic Argentine equestrian experience – With stabling and pasturing facilities for private and community horses.
§ Polo fields and associated facilities
§ A network of riding trails, also used for nature walks and mountain biking - as well as horse riding - many people even ride their horses into town... that's just normal for this part of the world
§ Tennis, squash, bocce & parcours facilities;
§ Heath Club – offers a bar, restaurant and asado, as well as locker rooms, a pro-shop, viewing tower, wide patios, WiFi and more.
§ Social clubhouse with all the amenities for civilized living – featuring a bar and lounge, wine cellars, game room, library (only stocked with the best in libertarian, anarcho-capitalist, austrian finance classics), cigar lounge, business center and even a poker room!
§ Full-service Spa – With multiple swimming pools, locker rooms, fitness center and treatment rooms; this is one of the most important features to me: the Gym - I spoke with Doug Casey on this and he intends to make it a world class gym! He is even likely putting in Power Plates - something I wrote up in the September Issue of TDV (Premium/Basic)
§ Kids clubhouse – With game room and more;
§ Pueblito – A small village center with asado (barbeque) cabin, small shops with crafts and conveniences, gathering and game spaces;
§ Cafayate Concierge – A dedicated staff which can help you with anything you need
COSTS
There are 3 types of lots available:
§ Chacra: 5,000-10,000 Square Meters (averaging 1.5 acres) - cost $320-$400k USD
§ Quinta: 4,000 Square Meters (averaging 1 acre) - cost $235k-$295k USD
§ Jardin: 2,000 Square Meters (averaging 1/2 acre) - cost $135k-$195k USD
Home building costs in Cafayate today range from $800 - $1300 per square meter (about $80 - $130 per square foot). As in most places, building costs do not include design and engineering, earthwork, landscaping, and furnishings. “All-in” building costs are likely to run from $1100 - $1500 per square meter (about $110 - $150 per square foot) for high quality homes that include natural stone and wood, in-floor radiant heat, high ceilings, outside verandas and gracious patios.
Annual dues are assessed to each owner to pay for the management and maintenance of all the common elements and services, including golf, vineyards, equestrian facilities, roads, landscaping, and other amenities. The current estimate for the fees is a very reasonable $3500 -$5000 per year per property. However, Doug Casey has stated that it is his intention to have the vineyard profits get those fees to as close to zero as possible.
In the meantime, at normal production levels, it is anticipated that approximately 10 - 15 cases or 60 - 90 bottles per year will be distributed to each owner. Once fully mature, the property vineyards will have the potential to produce about 550,000 bottles of wine each year.
The wine allocation to all the owners will equate to approximately 5% of the total grape production.
SCHOOLING
The schooling system in Argentina offers two options, public and private. The Elementary stage is called primary and children attend from the age of 6 to 12. The next stage is called secondary and it is attended from the age of 13 to 18.
Cafayate has 6 primary public schools, 4 secondary and 2 private schools. Private schools offer an 8-hour day with a secondary language, which is typically English.
However, of the owners I talked to who have children, nearly all do home school or plan to home school. This brings up the next topic: business opportunities.
BUSINESS OPPORTUNITIES
If you can't afford to buy a place in La Estancia and/or you need some sort of income to live there, I lost track of all the business opportunities I came up with over just a few days.
This is going to be a community of about 300 homes - and almost every person there will be well off or outright wealthy. They will need and want a multitude of specialized services.
As example, most of the families want to home school, but I am sure many of the mothers would love to have a VERY private, almost home school style school in Cafayate which only teaches the subjects the parents want their children to learn... Austrian Economics, as example.
As well, a smart young entrepreneur would be wise to go down to Cafayate, rent an apartment in the town of Cafayate itself (for $300/month or less in many cases) and spend some time surveying the landscape and talking to new owners at La Estancia about products or services they would be interested in - and then offer that to them.
Not to mention, buying real estate in the town of Cafayate will almost, without doubt, be an excellent speculative investment. Think of it like buying real estate or land in Aspen, Colorado, fifty years ago.
NEGATIVES
No place is perfect but it wasn't easy to come up with too many negatives for La Estancia:
§ Weather - While there is rarely a cloudy day in Cafayate it can definitely get chilly. It never snows but overnight there can definitely be nights where a sweater and even a jacket are needed. Many people have the misconception that most of South America is hot/tropical but this isn't the case. But if you don't mind chilly evenings and having some warm weather clothes then you'll be fine.
§ Distance - This is both a positive and a negative - depending on perspective. If one of your biggest concerns is the unforeseen risks of TEOTMSAWKI then Cafayate's distance from virtually anywhere is a big plus. However, if you see Cafayate as being a place where you might visit for a week or so from time to time, unless you live in South America plan on spending a full day (24 hours) in transit. There are two main ways to get there... through Buenos Aires or through Santa Cruz, Bolivia (onAerosur) but even once you get to Salta you still have a 3 hour drive - or another short flight. This isn't a "weekend getaway" kind of place. But, again, that can be a positive as you don't get the weekend tourist crowd
§ There is no local international school (yet)
§ Everyone at La Estancia speaks English but you will be hard pressed to find anyone in the town of Cafayate who speaks English. However, one of the best investments you can make, in my opinion, is to learn Spanish. It is one of the best languages to know, with over 20 countries that speak it and more native Spanish speakers in the world than native English speakers.
CONCLUSION
Of course, if it is Galt’s Gulch, then I am breaking one of the sacred rules - as was written in Atlas Shrugged. To liken it to Fight Club: “First rule of Galt’s Gulch, Don’t talk about Galt’s Gulch!”
However, I am so excited about this project that I am putting my money where my mouth is and buying a place there. And I recommend to anyone looking for something of this sort that you take a look ASAP. I will be surprised if there are many lots left by October/November when they are having their next big celebration.
In a recent blog post I called La Estancia, "the world's first libertarian enclave". I used the word "libertarian" because that was the best one-word label I could put on it. However, it is more than that. The people who are gravitating to La Estancia can best be described as non-conformists. They tend to be individualistic, non-statist, free-minded and free willed people who refuse to accept and live life the way they are told to live it.
This, more than anything, is why you should consider having a place there. There is no other place in the world, that I know of, where you can live amongst a group of people like this.
CONTACT
During my time at La Estancia de Cafayate I got to know virtually everyone - all the salespeople, concierges, developers and planners. They have set-up a special email just for TDV subscribers:tdv@lec.com.ar. They understand that TDV readers are going to be quite a bit more intelligent and savvy in regards to wanting a place in a spot like La Estancia than just regular off-the-street enquiries, so you'll get priority attention by contacting them through that email.
Or if you contact them directly through their website (www.laestanciadecafayate.com), just mention you heard about it from The Dollar Vigilante and they'll give you prompt attention.
Special Report: La Estancia de Cafayate
Sitting Out TEOTMSAWKI In Galt's Gulch
I accepted an invitation (all at my own expense) to go down to Doug Casey’s, La Estancia de Cafayate, in Salta Province, Argentina without quite understanding what I was about to discover. I even told friends and those who asked that, “I doubt I’ll buy a place.”
Why? For starters, I like living in larger cities – or at least not “out in the country” somewhere. I like shops, restaurants, bars and discos. And secondly, I had the complete misperception that this was some sort of typical, planned gated community. Not my style.
What I discovered has excited me so much that I am, as I write, working on purchasing a lot on which I will build a small home. As well, I am telling all my like-minded friends that if they can, they must come down and see what is being developed there.
GALT’S GULCH
It’s Galt’s Gulch. There is no better way to describe it. For those who haven’t read Atlas Shrugged, the long awaited movie based on the book is coming out next month (see the movie trailer here).
Galt’s Gulch, in the book, was a place where many of the most productive, intelligent and industrious people of the world esconded when the rest of the world was thrusting socialism/communism upon them.
The parallels to Galt’s Gulch are numerous, including the fact that Galt’s Gulch was built far away from civilization at a high altitude.
ABOUT CAFAYATE
Founded in 1840 and protected by incredible red rock formations that frame the drive in from Salta, Cafayate is internationally known for its wines - of which we tasted many on this particular tour.
It is a high altitude valley, 1600 meters (5800 ft) above sea level, which offers ideal conditions for producing world-class wines, and is known for its Torrontes and Malbec which grow easily inside of the temperate climate and over 320 days of sunshine each year - something which I consider crucial to health - free, daily Vitamin D.
One of the nicest features of La Estancia is that it is just outside the city boundary of Cafayate - about a 2 minute drive from town. So, you are out-of-town, but within minutes of dozens of world-class restaurants and shops.
WHAT IS LA ESTANCIA DE CAFAYATE?
La Estancia is an ultra-modern, luxury development in Salta Province, Argentina. It was conceived by best-selling author Doug Casey (The International Man, Crisis Investing and founder of Casey Research) and partners as the quintessential retreat for discerning individuals looking for an amenities rich lifestyle in the company of a diverse community of residents from around the globe (at this point, owners come from more than 20 different countries - off the top of my head, of owners I met: Germany, Lithuania, Mexico, Romania, US, Canada...).
 |
| Doug Casey speaking at La Estancia lunch |
La Estancia de Cafayate is simply massive in size, stretching over 1,360 acres - a meandering collection of vineyards, horse pastures, and the brand new Bob Cupp links style golf course. All of the properties enjoy stunning views of the surrounding mountains, then, depending on personal tastes, also benefits from golf course or polo field frontage, or surrounding vineyards or pastures.
It will be home, upon completion, to 360 housing lots. Already 200 are sold and, in my opinion, it won’t be much longer for the rest to sell. And once they are sold, that is that. They will not be building more.
WHAT MAKES LA ESTANCIA SPECIAL?
La Estancia De Cafayate is the brainchild of Doug Casey – an avid fan and past friend of Ayn Rand – who scoured much of the world looking for the perfect place to sit out The End Of The Monetary System As We Know It (TEOTMSAWKI). According to him and his wife they spent years looking for a place that had all the right characteristics.
What characteristics?
It had to be far from “civilization”. Cafayate meets that, in that the closest large city is a thousand miles away. But that doesn’t mean it isn’t “civilized” – it is, in fact, ultra-civilized in this remote location in Salta Province. However, it should be noted, even if there were large population centers nearby, La Estancia would still be one of the safest places on Earth. Why? Nearly everyone I spoke with who intends on living in La Estancia are the type of people who consider self-defense their responsibility and not the responsibility of the state.
It also had to be fairly self-sufficient. Cafayate meets that in that it is built atop a giant aquifer where much of the Andes drains into. Water? No problem. Electricity? The power comes from hydroelectric so even in the event of serious supply chain collapse there is very little chance that the waterfalls and rivers supplying the power will come to a halt. Coal fired, natural gas and nuclear plants could see their supply of energy get cut-off for a period of time as supply chains grind to a halt – but this is very unlikely to happen to hydro plants.
As well, La Estancia is home to hundreds of acres of vineyards (which are owned by home owners in the project) – so no shortage of wine. And on or near the estate almost any and every form of agriculture and farm animals are nearby. Doug Casey, in fact, owns a very large cattle ranch just a few hours north of Salta. So, in the event of parts of the world being forced into a famine situation as supply chains seize, those at Cafayate will be dining on steak, fresh vegetables and fine wines.
 |
| The Vineyards at La Estancia de Cafayate |
Another important factor for locating La Estancia in Cafayate is that it needed to be situated in a country where government is not much more than a nuisance. Argentina fits the bill here. In fact, the ex-Governor of Salta Province is a partner in the development so, even if the government in Argentina begins to try to appropriate land or wealth from residents (something it has never done) it is highly unlikely that La Estancia de Cafayate will be targeted.
WHAT AMENITIES WILL LA ESTANCIA OFFER?
La Estancia de Cafayate has been designed from the ground up to support an incredibly rich lifestyle.
These are just a few of the amenities:
§ 60-100 hectares of shared-ownership vineyards – As a property owner you legitimately pick up bragging rights as owning a vineyard in Argentina!
§ Vintner’s Heath Golf Course – An 18-hole Bob Cupp-designed golf course with a clubhouse, driving range and short game practice facility. When completed, this will be one of the finest golf courses in all of Argentina, and even South America - and from what I understand, owners play at $12/round!
§ Authentic Argentine equestrian experience – With stabling and pasturing facilities for private and community horses.
§ Polo fields and associated facilities
§ A network of riding trails, also used for nature walks and mountain biking - as well as horse riding - many people even ride their horses into town... that's just normal for this part of the world
§ Tennis, squash, bocce & parcours facilities;
§ Heath Club – offers a bar, restaurant and asado, as well as locker rooms, a pro-shop, viewing tower, wide patios, WiFi and more.
§ Social clubhouse with all the amenities for civilized living – featuring a bar and lounge, wine cellars, game room, library (only stocked with the best in libertarian, anarcho-capitalist, austrian finance classics), cigar lounge, business center and even a poker room!
§ Full-service Spa – With multiple swimming pools, locker rooms, fitness center and treatment rooms; this is one of the most important features to me: the Gym - I spoke with Doug Casey on this and he intends to make it a world class gym! He is even likely putting in Power Plates - something I wrote up in the September Issue of TDV (Premium/Basic)
§ Kids clubhouse – With game room and more;
§ Pueblito – A small village center with asado (barbeque) cabin, small shops with crafts and conveniences, gathering and game spaces;
§ Cafayate Concierge – A dedicated staff which can help you with anything you need
COSTS
There are 3 types of lots available:
§ Chacra: 5,000-10,000 Square Meters (averaging 1.5 acres) - cost $320-$400k USD
§ Quinta: 4,000 Square Meters (averaging 1 acre) - cost $235k-$295k USD
§ Jardin: 2,000 Square Meters (averaging 1/2 acre) - cost $135k-$195k USD
Home building costs in Cafayate today range from $800 - $1300 per square meter (about $80 - $130 per square foot). As in most places, building costs do not include design and engineering, earthwork, landscaping, and furnishings. “All-in” building costs are likely to run from $1100 - $1500 per square meter (about $110 - $150 per square foot) for high quality homes that include natural stone and wood, in-floor radiant heat, high ceilings, outside verandas and gracious patios.
Annual dues are assessed to each owner to pay for the management and maintenance of all the common elements and services, including golf, vineyards, equestrian facilities, roads, landscaping, and other amenities. The current estimate for the fees is a very reasonable $3500 -$5000 per year per property. However, Doug Casey has stated that it is his intention to have the vineyard profits get those fees to as close to zero as possible.
In the meantime, at normal production levels, it is anticipated that approximately 10 - 15 cases or 60 - 90 bottles per year will be distributed to each owner. Once fully mature, the property vineyards will have the potential to produce about 550,000 bottles of wine each year.
The wine allocation to all the owners will equate to approximately 5% of the total grape production.
SCHOOLING
The schooling system in Argentina offers two options, public and private. The Elementary stage is called primary and children attend from the age of 6 to 12. The next stage is called secondary and it is attended from the age of 13 to 18.
Cafayate has 6 primary public schools, 4 secondary and 2 private schools. Private schools offer an 8-hour day with a secondary language, which is typically English.
However, of the owners I talked to who have children, nearly all do home school or plan to home school. This brings up the next topic: business opportunities.
BUSINESS OPPORTUNITIES
If you can't afford to buy a place in La Estancia and/or you need some sort of income to live there, I lost track of all the business opportunities I came up with over just a few days.
This is going to be a community of about 300 homes - and almost every person there will be well off or outright wealthy. They will need and want a multitude of specialized services.
As example, most of the families want to home school, but I am sure many of the mothers would love to have a VERY private, almost home school style school in Cafayate which only teaches the subjects the parents want their children to learn... Austrian Economics, as example.
As well, a smart young entrepreneur would be wise to go down to Cafayate, rent an apartment in the town of Cafayate itself (for $300/month or less in many cases) and spend some time surveying the landscape and talking to new owners at La Estancia about products or services they would be interested in - and then offer that to them.
Not to mention, buying real estate in the town of Cafayate will almost, without doubt, be an excellent speculative investment. Think of it like buying real estate or land in Aspen, Colorado, fifty years ago.
NEGATIVES
No place is perfect but it wasn't easy to come up with too many negatives for La Estancia:
§ Weather - While there is rarely a cloudy day in Cafayate it can definitely get chilly. It never snows but overnight there can definitely be nights where a sweater and even a jacket are needed. Many people have the misconception that most of South America is hot/tropical but this isn't the case. But if you don't mind chilly evenings and having some warm weather clothes then you'll be fine.
§ Distance - This is both a positive and a negative - depending on perspective. If one of your biggest concerns is the unforeseen risks of TEOTMSAWKI then Cafayate's distance from virtually anywhere is a big plus. However, if you see Cafayate as being a place where you might visit for a week or so from time to time, unless you live in South America plan on spending a full day (24 hours) in transit. There are two main ways to get there... through Buenos Aires or through Santa Cruz, Bolivia (onAerosur) but even once you get to Salta you still have a 3 hour drive - or another short flight. This isn't a "weekend getaway" kind of place. But, again, that can be a positive as you don't get the weekend tourist crowd
§ There is no local international school (yet)
§ Everyone at La Estancia speaks English but you will be hard pressed to find anyone in the town of Cafayate who speaks English. However, one of the best investments you can make, in my opinion, is to learn Spanish. It is one of the best languages to know, with over 20 countries that speak it and more native Spanish speakers in the world than native English speakers.
CONCLUSION
Of course, if it is Galt’s Gulch, then I am breaking one of the sacred rules - as was written in Atlas Shrugged. To liken it to Fight Club: “First rule of Galt’s Gulch, Don’t talk about Galt’s Gulch!”
However, I am so excited about this project that I am putting my money where my mouth is and buying a place there. And I recommend to anyone looking for something of this sort that you take a look ASAP. I will be surprised if there are many lots left by October/November when they are having their next big celebration.
In a recent blog post I called La Estancia, "the world's first libertarian enclave". I used the word "libertarian" because that was the best one-word label I could put on it. However, it is more than that. The people who are gravitating to La Estancia can best be described as non-conformists. They tend to be individualistic, non-statist, free-minded and free willed people who refuse to accept and live life the way they are told to live it.
This, more than anything, is why you should consider having a place there. There is no other place in the world, that I know of, where you can live amongst a group of people like this.
CONTACT
During my time at La Estancia de Cafayate I got to know virtually everyone - all the salespeople, concierges, developers and planners. They have set-up a special email just for TDV subscribers:tdv@lec.com.ar. They understand that TDV readers are going to be quite a bit more intelligent and savvy in regards to wanting a place in a spot like La Estancia than just regular off-the-street enquiries, so you'll get priority attention by contacting them through that email.
Or if you contact them directly through their website (www.laestanciadecafayate.com), just mention you heard about it from The Dollar Vigilante and they'll give you prompt attention.
NSW: what went wrong?
Bob Ellis 27 March 2011
So what went wrong? Well, it’s a fair question. I never believed the words ‘the biggest swing in Australian history’ and ‘Barry O’Farrell’ belonged in the same sentence and I held out hope. I believed a world in seismic uproar – quake, tsunami, meltdown, cyclone, deluge, casual Afghan slaughters, an Armageddon Spring in the Middle East – would help incumbent governments as Kennedy’s assassination helped Menzies but I was wrong and I owe five hundred bucks, I think, in wagers on Kristina’s campaigning skills, a Hung Parliament, a salvaging weather event like Bligh’s, and the rest of it.
So what went wrong?
The sacking of Rees, the privatisations, the obsession with AAA ratings from the knaves and fools who rated Lehman’s AAA one day before it smashed up the world, the barping traffic driving in from the West every day, were only a part of it.
Could Keneally have won? Oh yes. By cancelling the privatisation, announcing a Catastrophe Fund and a levy on the big banks to pay for it...
Could Rees have won? Easily. He was on 45 percent when they topped him. One percent away from Hung Parliament victory, and obviously gaining votes each hour with his push against the Tripodi bunch and on his way to glory.
So what went wrong? Well, it’s a fair question. I never believed the words ‘the biggest swing in Australian history’ and ‘Barry O’Farrell’ belonged in the same sentence and I held out hope. I believed a world in seismic uproar – quake, tsunami, meltdown, cyclone, deluge, casual Afghan slaughters, an Armageddon Spring in the Middle East – would help incumbent governments as Kennedy’s assassination helped Menzies but I was wrong and I owe five hundred bucks, I think, in wagers on Kristina’s campaigning skills, a Hung Parliament, a salvaging weather event like Bligh’s, and the rest of it.
So what went wrong?
The sacking of Rees, the privatisations, the obsession with AAA ratings from the knaves and fools who rated Lehman’s AAA one day before it smashed up the world, the barping traffic driving in from the West every day, were only a part of it.
–––––––––––––––
Could Keneally have won? Oh yes. By cancelling the privatisation, announcing a Catastrophe Fund and a levy on the big banks to pay for it...
Could Rees have won? Easily. He was on 45 percent when they topped him. One percent away from Hung Parliament victory, and obviously gaining votes each hour with his push against the Tripodi bunch and on his way to glory.
interview with Dionisio Borda, Paraguay's minister of finance
[from Silvia Pavoni @ The Banker: Global Financial Intelligence since 1926, 20 August 2010]
Paraguay banks on natural resources
The government of Paraguay has faced many challenges when striving to implement democratic reform and social policies while maintaining economic stability and promoting growth. The country's minister of finance, Dionisio Borda, outlines the government's efforts to make the most of its natural resources, attract private investment and build up Paraguay's infrastructure.
Q: In what areas does Paraguay have opportunities for growth?
A: Paraguay has several very important competitive advantages. The country is a food producer, involving agriculture and cattle-raising. We're also a clean energy producer; we're the largest energy exporter in the region. We consume only about 6% of the output of Itaipú [a hydroelectric plant on the border between Paraguay and Brazil] and we're now in discussion with a foreign company [Rio Tinto Alcan of Canada] over the installation of an aluminium plant, which is very energy-intensive. The [aluminium] project is being studied by an economic team within the government, formed by the finance minister, the central bank governor and the industry, agriculture and public works ministries. It is a signal of the level of interest in the country.
The third advantage that Paraguay has is its low population density: 11 inhabitants per square kilometre - this is a density you don't see very often.
The country has another very important natural resource: water. The Guarani aquifer [one of the world's largest sources of fresh water that lies beneath the surface of Argentina, Brazil, Paraguay and Uruguay], which is underground and suitable for human consumption, has hardly been developed at all and has huge strategic value.
Paraguay is also defined by its rivers. If you look at a map of Paraguay, you'll see how the rivers look like the veins of a body. A friend of mine, who is a hydrologist, went into that profession because, when he was a child, he opened the encyclopaedia and looked at what it said about Paraguay. Against the many pages of information about other countries, what it said about our country was this: 'it is a country permeated by rivers; it is the country of water'.
This is a country of great inequality but of great [social] integration. We don't have direct access to the sea, but this is one of the challenges that this government has undertaken: the development of infrastructure and logistics.
Another advantage for Paraguay is being part of Mercosur [a regional trade agreement between Argentina, Brazil, Paraguay and Uruguay]. Paraguay has taken advantage of its membership, although it has its negative sides too. But in the medium to long term, membership of Mercosur offers many advantages and that's one of the reasons why Rio Tinto Alcan wants to put its plant here: low-cost energy and access to the markets of Brazil and Argentina.
Q: Paraguay has a very low tax/gross domestic product (GDP) ratio. If this increases, it might create more funds for infrastructure and education. What are the government's plans?
A: Yes, we have very few fiscal pressures. Our value-added tax (VAT) is the lowest in South America: 10% against 21% in Argentina, 23% in Uruguay, 19% in Brazil and 18% in Chile. Our corporate profit tax is 10%, while in the region the average is about 30%. We have yet to introduce a personal income tax; we have been trying to do so since 2003, but there is resistance.
Since 2003, though, we have had an expansion of the [corporate] taxpayer base from 100,000 to 500,000 today. We reduced the tax rate and this became an incentive for people in the 'informal' sector to join the formal sector. The tax/GDP ratio used to be 9%, then it went up to [the current] 12%, and we hope it will reach 15% [by 2013]. This would give us a better chance of funding our infrastructure and public works.
We keep on finding resistance from [Paraguay's] congress against the implementation of a personal income tax but we keep on fighting for it. It is going to be difficult to introduce it this year, but hopefully we can do so next year.
There are three objectives behind the introduction of a personal income tax: one is to increase the government's revenue. The second is to formalise the economy; people would be able to deduct VAT from their taxable personal income, so they'd have an incentive to ask for a receipt when they purchase items. The third objective is to fight illegal activities. Paraguay doesn't have a good reputation in this area, and the more we clarify how large someone's assets are, the more we can see where their income comes from. This should help resolve the issues of prestanombres [an individual who lends his or her name as owner of assets to circumvent regulations].
Also, we think that public-private partnerships (PPPs) will help develop the country's infrastructure. Right now, there is a legislative proposal to give the private sector a highway management concession. The roads concerned connect Asunción to Ciudad del Este and Encarnación in a triangle. This would be the country's most serious infrastructure plan to date through concessions to private investors.
We're also working on a PPP scheme for airports, which would be a first for Paraguay. There are already [smaller] private airports here and we need to work on a framework that would guarantee fair competition between all of them and guarantee that the government can comply with its obligations [in all of them].
Q: One of this government's promises was to enact stronger social policies but some say that the introduction of wider benefits has discouraged people from looking for jobs. What have been the results of the welfare strategy?
A: In reality, there isn't a true unemployment benefit scheme, but what the government did was to accelerate its conditional money transfer policy. This means that the government gives a small subsidy to people in extreme poverty [earning less than $1 per day]. Families in this situation receive about $50 per month on the condition that their children go to school and that the children go for medical check-ups once a month.
The government didn't have 100% control over the success of these measures but fundamentally I believe the impact has been positive. From 17,000 families in this programme in 2008, there were 103,000 families in 2009. This has complemented the [poor families'] income from remittances from their relatives in the US and Europe, which decreased last year.
We want sustainable growth that will generate employment and will not destroy the environment. We're working on some important environmental regulations in agribusiness.
We also want to promote private and public investment and attract foreign investors. Paraguay is a safe country in terms of security. It is an amicable country. It is welcoming towards foreigners. We have a law that gives incentives to foreign investors and says that they don't need to pay taxes until they start production - no VAT is charged on the installation of machinery and no tax is charged on capital imported. Glass companies, beverage companies and textiles companies from the wider Latin American region and from Europe have taken advantage of this.
Q: Do both Paraguay and its government have a perception problem?
A: Paraguay is not a country that does much promotion of itself abroad. We are a government with a social mission. We have a very high degree of poverty but there are no other restrictions. We work really well with businesses and their associations.
We are trying to eliminate the preconceptions about this government as populist because it has a social mission - this is not a populist government. This government wants to combine social policies with market policies for the sustainable growth of the country.
Companies that are present in Paraguay recognise that this government has improved the security situation. Social spending has increased, much of which has been directed towards the security of the country. Direct investment in security and education are also objectives. We also need to improve the institutions of the state - to ensure that the government, as an institution, works.
Q: The government has not played a significant role in developing Paraguay's infrastructure in the past, leaving the private sector to fill the gaps - building schools and roads that connect companies to highways, for example. Is there a risk that the private sector will increasingly become disaffected with the public sector?
A: In the past, during the dictatorship and early post-dictatorship period, public resources were not what they should have been. If the private sector is not provided with infrastructure or schools, it will try to create them itself, but this is not the correct approach. What we believe is that we should work in harmony with the private sector, that people should pay their taxes and that they should receive services from us. We are now working with the private sector on PPP programmes.
We have not had a very democratic government in Paraguay or a government committed to social issues. Being committed to social issues doesn't mean going to war with the private sector. We need to work with the private sector and deal with these issues. These are the conditions for [economic] growth. If you have social instability, none of the government's or private sector's efforts will produce any results: this is the history of central America. Countries where there was a lack of social policies had social instability in the end, and that hinders the development of the private sector too.
Q: You were finance minister for the first two years of the previous government, held by the right-of-centre Colorado party. How does this government differ from its predecessors?
A: There is more effort in this government. For 61 years, no government has handled this kind of public policy [focusing on social issues]. There is a learning curve, the bottom of which coincided with the international financial crisis. This made our efforts to meet our objectives much harder.
The international financial crisis and a terrible drought, combined with new people being brought into government and therefore lacking in public administration experience - all of this called for more communication and presentation [of our programmes and policies].
We solved some of the fiscal issues in the previous government term. First, we had to renegotiate the [public debt] maturity and the rate for internal debt; second, we implemented a partial reform of the fiscal base - we reduced corporation tax from 30% to 10% because in practice that was the actual rate that was being paid. We wanted to introduce a personal income tax.
We reformed the five cajas [savings banks] and the pension funds, so that their deficit would be reduced. We also created a 'second floor' bank, the Agencia Financiera de Desarrollo [financial development agency].
Q: You are known to be very strict with the budget. How do other ministries react when you do not accommodate their requests for additional funds?
A: It is not just one person's decision, it has to do with the availability of resources. At the beginning, it was difficult to establish a certain discipline; everybody wanted funds. Another part of the problem is efficiency. Initially, people thought that problems could be solved only with additional funding, but one also needs to develop the ability of doing things more efficiently. People understand this now.
Having a deficit gives a country inflation problems and affects its negotiating power for external loans. Since 2003, Paraguay has not had a deficit. Even during the crisis, in 2009, with a gross domestic product contraction of -3.8%, Paraguay increased the amount of tax collected. This is because there has been a big jump in the management of tax administration since 2003.
Q: What's the biggest challenge for the Ministry of Finance?
A: There is still much to be improved. We need to make all parts of the public administration more efficient; we need to invest more and to improve the service. Unfortunately, the political effort is not sufficient for the economic effort. If we have stronger political parties, they will make better public policies and better economic policy, and this means creating a better environment for growth and investment.
We need to work a lot with congress [to get our reforms approved]. It's a challenge. The political side of things needs to mature more. On the other hand, this society needs to create a stronger middle class, which would be the engine for growth. Our entrepreneurial class needs to look beyond Paraguay. Paraguay has a future in the export market. We need to learn from the emerging markets that have a good policy of investment distribution, such as Chile, Uruguay, Brazil and countries in Asia; [we must focus on] greater social justice, production geared for exports and investment in infrastructure.
The largest sector of employment in Paraguay is currently in family agricultural companies that have fewer than 50 employees. We need to generate employment and invite investments into Paraguay.
Paraguay banks on natural resources
The government of Paraguay has faced many challenges when striving to implement democratic reform and social policies while maintaining economic stability and promoting growth. The country's minister of finance, Dionisio Borda, outlines the government's efforts to make the most of its natural resources, attract private investment and build up Paraguay's infrastructure.
Q: In what areas does Paraguay have opportunities for growth?
A: Paraguay has several very important competitive advantages. The country is a food producer, involving agriculture and cattle-raising. We're also a clean energy producer; we're the largest energy exporter in the region. We consume only about 6% of the output of Itaipú [a hydroelectric plant on the border between Paraguay and Brazil] and we're now in discussion with a foreign company [Rio Tinto Alcan of Canada] over the installation of an aluminium plant, which is very energy-intensive. The [aluminium] project is being studied by an economic team within the government, formed by the finance minister, the central bank governor and the industry, agriculture and public works ministries. It is a signal of the level of interest in the country.
The third advantage that Paraguay has is its low population density: 11 inhabitants per square kilometre - this is a density you don't see very often.
The country has another very important natural resource: water. The Guarani aquifer [one of the world's largest sources of fresh water that lies beneath the surface of Argentina, Brazil, Paraguay and Uruguay], which is underground and suitable for human consumption, has hardly been developed at all and has huge strategic value.
Paraguay is also defined by its rivers. If you look at a map of Paraguay, you'll see how the rivers look like the veins of a body. A friend of mine, who is a hydrologist, went into that profession because, when he was a child, he opened the encyclopaedia and looked at what it said about Paraguay. Against the many pages of information about other countries, what it said about our country was this: 'it is a country permeated by rivers; it is the country of water'.
This is a country of great inequality but of great [social] integration. We don't have direct access to the sea, but this is one of the challenges that this government has undertaken: the development of infrastructure and logistics.
Another advantage for Paraguay is being part of Mercosur [a regional trade agreement between Argentina, Brazil, Paraguay and Uruguay]. Paraguay has taken advantage of its membership, although it has its negative sides too. But in the medium to long term, membership of Mercosur offers many advantages and that's one of the reasons why Rio Tinto Alcan wants to put its plant here: low-cost energy and access to the markets of Brazil and Argentina.
Q: Paraguay has a very low tax/gross domestic product (GDP) ratio. If this increases, it might create more funds for infrastructure and education. What are the government's plans?
A: Yes, we have very few fiscal pressures. Our value-added tax (VAT) is the lowest in South America: 10% against 21% in Argentina, 23% in Uruguay, 19% in Brazil and 18% in Chile. Our corporate profit tax is 10%, while in the region the average is about 30%. We have yet to introduce a personal income tax; we have been trying to do so since 2003, but there is resistance.
Since 2003, though, we have had an expansion of the [corporate] taxpayer base from 100,000 to 500,000 today. We reduced the tax rate and this became an incentive for people in the 'informal' sector to join the formal sector. The tax/GDP ratio used to be 9%, then it went up to [the current] 12%, and we hope it will reach 15% [by 2013]. This would give us a better chance of funding our infrastructure and public works.
We keep on finding resistance from [Paraguay's] congress against the implementation of a personal income tax but we keep on fighting for it. It is going to be difficult to introduce it this year, but hopefully we can do so next year.
There are three objectives behind the introduction of a personal income tax: one is to increase the government's revenue. The second is to formalise the economy; people would be able to deduct VAT from their taxable personal income, so they'd have an incentive to ask for a receipt when they purchase items. The third objective is to fight illegal activities. Paraguay doesn't have a good reputation in this area, and the more we clarify how large someone's assets are, the more we can see where their income comes from. This should help resolve the issues of prestanombres [an individual who lends his or her name as owner of assets to circumvent regulations].
Also, we think that public-private partnerships (PPPs) will help develop the country's infrastructure. Right now, there is a legislative proposal to give the private sector a highway management concession. The roads concerned connect Asunción to Ciudad del Este and Encarnación in a triangle. This would be the country's most serious infrastructure plan to date through concessions to private investors.
We're also working on a PPP scheme for airports, which would be a first for Paraguay. There are already [smaller] private airports here and we need to work on a framework that would guarantee fair competition between all of them and guarantee that the government can comply with its obligations [in all of them].
Q: One of this government's promises was to enact stronger social policies but some say that the introduction of wider benefits has discouraged people from looking for jobs. What have been the results of the welfare strategy?
A: In reality, there isn't a true unemployment benefit scheme, but what the government did was to accelerate its conditional money transfer policy. This means that the government gives a small subsidy to people in extreme poverty [earning less than $1 per day]. Families in this situation receive about $50 per month on the condition that their children go to school and that the children go for medical check-ups once a month.
The government didn't have 100% control over the success of these measures but fundamentally I believe the impact has been positive. From 17,000 families in this programme in 2008, there were 103,000 families in 2009. This has complemented the [poor families'] income from remittances from their relatives in the US and Europe, which decreased last year.
We want sustainable growth that will generate employment and will not destroy the environment. We're working on some important environmental regulations in agribusiness.
We also want to promote private and public investment and attract foreign investors. Paraguay is a safe country in terms of security. It is an amicable country. It is welcoming towards foreigners. We have a law that gives incentives to foreign investors and says that they don't need to pay taxes until they start production - no VAT is charged on the installation of machinery and no tax is charged on capital imported. Glass companies, beverage companies and textiles companies from the wider Latin American region and from Europe have taken advantage of this.
Q: Do both Paraguay and its government have a perception problem?
A: Paraguay is not a country that does much promotion of itself abroad. We are a government with a social mission. We have a very high degree of poverty but there are no other restrictions. We work really well with businesses and their associations.
We are trying to eliminate the preconceptions about this government as populist because it has a social mission - this is not a populist government. This government wants to combine social policies with market policies for the sustainable growth of the country.
Companies that are present in Paraguay recognise that this government has improved the security situation. Social spending has increased, much of which has been directed towards the security of the country. Direct investment in security and education are also objectives. We also need to improve the institutions of the state - to ensure that the government, as an institution, works.
Q: The government has not played a significant role in developing Paraguay's infrastructure in the past, leaving the private sector to fill the gaps - building schools and roads that connect companies to highways, for example. Is there a risk that the private sector will increasingly become disaffected with the public sector?
A: In the past, during the dictatorship and early post-dictatorship period, public resources were not what they should have been. If the private sector is not provided with infrastructure or schools, it will try to create them itself, but this is not the correct approach. What we believe is that we should work in harmony with the private sector, that people should pay their taxes and that they should receive services from us. We are now working with the private sector on PPP programmes.
We have not had a very democratic government in Paraguay or a government committed to social issues. Being committed to social issues doesn't mean going to war with the private sector. We need to work with the private sector and deal with these issues. These are the conditions for [economic] growth. If you have social instability, none of the government's or private sector's efforts will produce any results: this is the history of central America. Countries where there was a lack of social policies had social instability in the end, and that hinders the development of the private sector too.
Q: You were finance minister for the first two years of the previous government, held by the right-of-centre Colorado party. How does this government differ from its predecessors?
A: There is more effort in this government. For 61 years, no government has handled this kind of public policy [focusing on social issues]. There is a learning curve, the bottom of which coincided with the international financial crisis. This made our efforts to meet our objectives much harder.
The international financial crisis and a terrible drought, combined with new people being brought into government and therefore lacking in public administration experience - all of this called for more communication and presentation [of our programmes and policies].
We solved some of the fiscal issues in the previous government term. First, we had to renegotiate the [public debt] maturity and the rate for internal debt; second, we implemented a partial reform of the fiscal base - we reduced corporation tax from 30% to 10% because in practice that was the actual rate that was being paid. We wanted to introduce a personal income tax.
We reformed the five cajas [savings banks] and the pension funds, so that their deficit would be reduced. We also created a 'second floor' bank, the Agencia Financiera de Desarrollo [financial development agency].
Q: You are known to be very strict with the budget. How do other ministries react when you do not accommodate their requests for additional funds?
A: It is not just one person's decision, it has to do with the availability of resources. At the beginning, it was difficult to establish a certain discipline; everybody wanted funds. Another part of the problem is efficiency. Initially, people thought that problems could be solved only with additional funding, but one also needs to develop the ability of doing things more efficiently. People understand this now.
Having a deficit gives a country inflation problems and affects its negotiating power for external loans. Since 2003, Paraguay has not had a deficit. Even during the crisis, in 2009, with a gross domestic product contraction of -3.8%, Paraguay increased the amount of tax collected. This is because there has been a big jump in the management of tax administration since 2003.
Q: What's the biggest challenge for the Ministry of Finance?
A: There is still much to be improved. We need to make all parts of the public administration more efficient; we need to invest more and to improve the service. Unfortunately, the political effort is not sufficient for the economic effort. If we have stronger political parties, they will make better public policies and better economic policy, and this means creating a better environment for growth and investment.
We need to work a lot with congress [to get our reforms approved]. It's a challenge. The political side of things needs to mature more. On the other hand, this society needs to create a stronger middle class, which would be the engine for growth. Our entrepreneurial class needs to look beyond Paraguay. Paraguay has a future in the export market. We need to learn from the emerging markets that have a good policy of investment distribution, such as Chile, Uruguay, Brazil and countries in Asia; [we must focus on] greater social justice, production geared for exports and investment in infrastructure.
The largest sector of employment in Paraguay is currently in family agricultural companies that have fewer than 50 employees. We need to generate employment and invite investments into Paraguay.
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