May 1, 2006        www.LatinEPR.com          LatinEPR News Wire

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LATIN AMERICA - COMMUNICATIONS/MEDIA

New Media Law Favors Grupo Televisa

Last month the Mexican Senate voted to pass a controversial television and radio law which establishes new rules for digital transmissions and abolishes the power by the president to give away television concessions, reported Bloomberg.  Although the bill still needs to be signed into law by President Vicente Fox, it has already sparked heated debate and protests. Detractors argue that the bill will only increase the influence of large broadcasting companies like Grupo Televisa, as the law allows the media giant to keep control of radio frequencies it no longer needs for broadcasting, thereby widening its spectrum, after the switch from analog to digital.  However, supporters claim it is Mexico’s current media laws which have led to the monopolies and that it is time for a change.

BBC Mundo to Provide News on Latinamerica Television

(Mercopress - April 26, 2006) - BBC Mundo, the BBC's international radio and internet service in Spanish will, for the first time, provide news content on television thanks to a new arrangement with leading Latin American TV channel, Latinamerica Television (LTV). BBC Mundo’s news and information site www.bbcmundo.com will provide international news and headlines in a news ticker featured on all Latinamerica Television news programmes. It will provide viewers with up-to-the-minute information including entertainment, economy, science and technology news on Latin America and the rest of the world. BBC Spanish American Service is rebroadcast by over 300 stations to almost 6 million people in Latin America and features the interactive radio and online show BBC Mundo Hoy. Its website bbcmundo.com is updated 24 hours a day, seven days a week and provides a wide range of information, including international news and current affairs, world economy, science, technology, arts, entertainment, chat forums, and the opportunity to learn English. It registers 2 million unique users and 15 million page impressions a month. Latinoamérica Televisión began broadcasting to the United States, Canada, Puerto Rico and Latin America via DirectTV Para Todos and local cable TV operators. Its programming includes content from some of the most prestigious media companies on the continent, including Canal 13 in Chile, Globo network in Brazil, Canal 12 in Uruguay and Canal 4 Telefuturo in Paraguay.

Telemundo Teams with Grupo Xtra

Telemundo, the No. 2 U.S. Spanish-language broadcaster announced in April that it is teaming up with Mexican holding Grupo Xtra to boost its presence across Latin America. NBC Universal's Telemundo competes for Hispanic viewers in the United States against leader Univision Communications Inc. Grupo Xtra, owned by the Saba family, owns tourism, real state, construction, agriculture, food, financial and textile businesses. Telemundo and Grupo Xtra said in a joint statement they will create two new companies. One, a Mexican-based production company, Estudios Mexicanos Telemundo, will produce content for viewing in Mexico, the United States and the rest of Latin America. The second company, Palmas 26, will be controlled by Group Xtra and will look for other opportunities in the Mexican television industry.

LATIN AMERICA - NEWS BRIEFS

Costa Rica Pushes Tourism at World Cup

The Costa Rican government has announced plans to promote its tourism and exports in Germany alongside the 2006 soccer World Cup this summer.  Among several venues will be a 500 square meters Costa Rica Arena, set up in the forum of Munich's Deutsche Museum.  The museum is one of Germany’s most visited tourist attractions. From May 24 to June 11, visitors to the museum will enter via a natural wood tunnel pass through a themed space called "Costa Rica, Heart of the Americas", which will contain a photo exhibition on tourism and biodiversity. The exhibit will also show off Costa Rica's main exports and its achievements in sport, culture and tourism. In addition, there will also be a space for people to enjoy Costa Rican products like coffee. Costa Rica and Germany play the World Cup's first game on June 9 in the Bavarian capital.

New Agreement to Aid Caribbean Tourism

A new agreement between the Organization of American States (OAS) and representatives of several Caribbean tourist groups, including the Caribbean Tourism Organization and the Caribbean Hotel Association, aims to attract more tourists to the nations of the Caribbean.  According to a recent statement released by the OAS, the signed agreement will help with training and other key elements to build the Caribbean’s tourist industry, the region's principal revenue source. OAS cites statistics that show travel and tourism account for 16.4% of the gross domestic product and for 2.6 million jobs overall in Caribbean countries.  General Secretary of the CATO, Vincent Vanderpool-Wallace says the region is the most “tourism-dependent area in the whole world”.  But the U.S. Agency for International Development (USAID) is also stressing the importance of balancing “economic vitality” and social development with the protection of “precious natural resources”. 

Copa Registers Top On-time Performance

In April, Copa Airlines reported an on-time performance of 92.31 percent for first quarter 2006, one of the best in the airline industry worldwide. In addition, during this same period, the airline's operational completion rate was 99.7 percent, including both Panama and the other destinations where Copa flies.

Guayaquil: New International Airport to be Inaugurated this Summer

Guayaquil is preparing to inaugurate its new international airport this summer. With nearly all terminals completed, the official opening is set for July 25.  The new airport is expected to be fully operational by August 30, 2006.

Latin America: Remittances Increase 17% in 2005

Remittances to LAC reached over US$53 billion in 2005, making the region the largest remittance market in the world, according to the recently released Inter-American Development Bank report, Remittances 2005.  Amazingly, because of the difficulty in tracking money delivered by hand, rather than via bank transfer, the total could even be 10% higher.  The report’s findings mean that 2005 was the third consecutive year in which remittances exceeded the combined flows of all net FDI and Official Development Assistance.  Mexico received the largest amount, US$20 billion.  Brazil and Colombia followed with record-breaking 6 billion and 4 billion, respectively.  Central American nations reached a total of US$11 billion, while the Andean countries had US$9 billion.  Argentina’s total stood at US$780 million, double that of 2004 and the first time inflowing remittances surpassed outflows from migrants working domestically.  An approximate 25 million Latin American and Caribbean born people live abroad, of which 65% send remittances.  75% of remittances originate from the United States.  In the last five years, increased competition and better use of technology have helped facilitate transactions, which can reach up to 200 million annually. 

Chile Considers Trade Accord with Peru and Bolivia

Five weeks into her term in office as president of Chile, Michelle Bachelet has pledged to restore diplomatic relations with Bolivia and Peru that have been at best tense since the 19^th century, when Chile fought two consecutive wars against a Bolivia-Peru alliance.  Foreign Minister Alejandro Foxley told national daily El Mercurio Chile is prepared to sign a free trade accord with Bolivia and Peru, regardless of the election outcome.  At the moment, populist candidate Ollanta Humala is set to face ex-President Alan Garcia in Peru’s runoff election in May. 

Venezuela Ranks First in Entrepreneurship

(El Universal - April 17, 2006) - Venezuela occupied the first position in entrepreneurship according to Global Entrepreneurship Monitor (GEM), the Support Competitiveness Program, Andean Development Corporation (CAF), reported.  The investigation found that Venezuela has 25 percent of early entrepreneurship. This means that one out of four Venezuelans are starting a business or taking an enterprising initiative. Thailand ranked second, accounting for 21 percent, followed by New Zealand, 18 percent.  Interestingly, the survey found that the primary incentive in Venezuela to start a business is need, as compared to motivation in New Zealand.  Venezuelans prefer businesses related to the sale of food, followed by restaurants, marketing of textiles and household items, telecommunications and Internet.  In 2005, a total of 36 countries and over 200 researchers from renowned universities took part in the case study.

Brazil Vies for 2014 World Cup

All ten South American soccer federations are standing behind Brazil’s bid to host the World Cup 2014, despite FIFA President Sepp Blatter’s suggestion, published this month in Estado de Sao Paulo, that the task fall to Chile and Argentina.  Brazil’s main obstacle lies in having enough tournament-standard stadium venues ready by 2014, when according to FIFA’s rotation system, the event moves to South America.  Brazilian President Lula da Silva has pledged his full support to bring the World Cup back to his soccer-proud nation, which has won the tournament five times but only hosted it once, in 1950.

Shakira Plans Benefit Concert for Latin American Poor

Colombian-born performer Shakira is in the process of organizing a Live Aid-style concert to benefit the needy on her continent, reported Billboard this past month.  The show, which will most likely take place next year, will also feature Latin singers Juanes, Alejandro Sanz, and Miguel Bose.  Says Shakira, "we want this to be an event that brings world attention to poverty in Latin America, which is virtually invisible to the rest of the world."  This upcoming month in Los Angeles, Juanes himself is staging a benefit concert called Colombia Sin Minas, which intends to raise money for child victims of land mines.  Sanz will participate, as well as Carlos Vives. 

Colombian Baby Gets Lifetime Train Pass

This month, Luz Enidia Torres became the first woman ever to give birth aboard a Colombian commuter train.  Torres had her baby early morning on Saturday, April 15^th, while riding the Medellin metro to the hospital.  Luckily, a pediatrician was on hand to deliver the baby.  Apart from various gifts, the Medellin city council is considering granting the child Juan Esteban Torres a free metro pass for life.

DID YOU KNOW?

Largest Carnivore Fossils Discovered in Argentina

A new species discovered during a 4-year long palaeontological excavation in Patagonia is believed to be the largest carnivorous dinosaur ever to have walked the earth, reported the Deutsche Presse Agentur this past month.  Larger than the Giganotosaurus and the T-Rex, the Mapusaurus roseae ranged up to 41 feet and most likely hunted in packs.  The name Mapusaurus roseae derives from the word for ‘earth’ in the language of the Patagonian Mapuches tribe and the rose color of the local sandstone.

Special Report

Foreign Investment Flows into Latin America and the Caribbean Remained the Same in 2005

ECLAC - 12 April 2006 - In 2005, foreign direct investment (FDI) flowing into Latin America and the Caribbean reached over US$61.6 billion, similar to last year, according to figures released today by ECLAC in its report Foreign Investment in Latin America and the Caribbean, 2005.

FDI flows held steady but the region's share of world flows declined again, since total world flows were up 29% over 2004.

Latin America and the Caribbean have not yet fulfilled their potential for attracting FDI, ECLAC argues. The region faces the challenge of increasing the quantity and improving the quality of these capital inflows, to expand their impact on the development of production in the region.

The countries receiving the most FDI in 2005, were Mexico (US$17.805 bn), Brazil (US$15.193 bn), Chile (US$7.208 bn), Argentina (US$4.662 bn) and Colombia (US$3.921 bn).

This decade, Mexico and Brazil have alternated as the countries receiving the most investment inflows in this region.

In 2005, in Mexico, the noteworthy concentration of FDI in the manufacturing sector persisted (58%), focusing mainly on the maquila assembly plants, a sector associated with the United States' economy. The automobile industry also performed strongly, receiving a significant share of FDI.

The decline in FDI flows into Brazil reflected no drastic change in recent trends, according to the ECLAC report. Although in 2005 no major acquisitions occurred, as they did in 2004, more of these resources went to new productive projects.

Recoveries posted by Argentina and Colombia are worth noting. According to ECLAC, rising exports and economic growth have significantly improved the outlook for investment in Argentina. The recovery in domestic demand has stimulated some traditional manufacturers to boost their productive capacity.

Within the Andean Community, Colombia receives the most FDI, with 67% going to natural resource operations. The government's efforts have focused on the hydrocarbon sector, to ensure that investment boosts known reserves and the country's energy autonomy. According to ECLAC, the stability and security that the country has attempted to guarantee to foreign investors has created a virtuous circle around this extractive activity.

Chile maintains its FDI inflows compared to 2004. Nonetheless, it offers stable conditions for foreign investors, with most of the inflows going to reinvestment, notes this regional United Nations' Commission. Mining, transportation, communications and electric power are the main destinations for FDI and Chile is well-positioned as a destination for investment in "new services", such as call centers.

In the Caribbean Basin (composed of Central American and Caribbean countries) FDI was down to US$5.672 billion compared to 2004, but levels remain at all-time highs. Most goes to manufacturing, thanks to fiscal incentives and low labor costs favoring assembly plants, which have meant that these countries have become export platforms to the United States.

The United States is the main country investing in the region, accounting for almost 40% of flows. European investment has fallen, particularly from Spain, which dropped to third place, with just over 6% of inflows. The Netherlands now stands in second place, with a 12% share of total FDI flowing into this region. Intraregional flows are small but are on the rise.

Investment in manufacturing rose while flows going to services fell, although the latter remain the preferred option for foreign investors.

According to ECLAC, foreign investment in the region has produced mixed results. On one hand, it has contributed to industrial modernization, competitiveness of some sectors, service and infrastructure improvements. On the other, technological transfers have been limited, with few productive linkages, and few benefits to human resource and local business development.

In its analysis of FDI quality and impacts in Latin America and the Caribbean, ECLAC argues that there is little investment with the potential for generating positive externalities, such as technological improvements or the ability to scale up activities in each sector and among sectors, for local economic development.

Transnational companies' share of the region's FDI seems to be losing ground in terms of its top 500 companies. By sales, national firms (private and state-owned) have grown more than foreign firms, ECLAC notes. Among the 200 largest exporters, transnationals' share has also declined, while that of publicly-owned national firms (primary activities) and private firms' (manufacturing and services) has risen.

The ECLAC study recommends that promotion agencies play a more active role in attracting FDI. To do so, however, they require the right financial and human resources, combined with the organizational practices, applied by their competitors elsewhere in the world.