Inequality in Peru’s Education Sector Deepens in Post-Pandemic Era — Global Issues

Rodrigo Reyes, 18, was forced to drop out of school in 2020, because his family could not afford to pay for the internet or electronic devices that would allow him to attend class online, just when he was about to finish high school and was thinking of studying mechanics, his dream. Since then he has been working as a vendor at his mother’s stall in a market on the outskirts of the Peruvian capital. CREDIT: Mariela Jara/IPS
  • by Mariela Jara (lima)
  • Inter Press Service

This figure includes primary and secondary school students who had enrolled for the school year but did not complete it.

In March 2020, as a preventive measure against the spread of COVID-19, remote education was adopted in the country, which meant that access to the internet and electronic devices was essential. Online classes continued until 2022, when students returned to the classroom.

But during this period, inequalities in access to and quality of education have deepened, affecting students who live in poverty or who form part of rural and indigenous populations.

Peru is a multicultural and multiethnic country with just over 33 million inhabitants, where in 2021 poverty affected 25.9 percent of the population, 4.2 percentage points less than in 2020, but still 5.7 points above 2019, the year before the outbreak of the pandemic. Monetary poverty officially affected 39.7 percent of the rural population and 22 percent of the urban population, reflecting a huge social gap.

“We are talking about the primary and secondary students who are always the ones who do not manage to thrive in their learning, those who, quote unquote, fail the Student Census Evaluation tests, who live in provinces that occupy the last places in the rankings at the national level,” said Rossana Mendoza, a university professor of Intercultural Bilingual Education.

“They are the same young people who face a number of deficiencies and services, they are indigenous people speaking a language other than Spanish for whom the Aprendo en Casa (learning at home) program launched by the government was not an adequate response,” she added in an interview with IPS at her home in the Lima district of Jesús María.

But students in poor suburbs were also affected. Mendoza said they had to alternate their school work with helping their parents by working to support the family, thus spending very little time on their studies.

This was the case for Reyes, who had no choice but to drop out of school and put aside his dream of becoming a heavy machinery technician.

“I was going to finish school at 16, I was going to graduate with my friends and then I planned to prepare myself to apply to the institute and become a mechanic… but it didn’t happen,” he told IPS at his mother’s stand where they sell food and other products at the Santa Marta market in his neighborhood, where he has been working full-time since the pandemic began.

Reyes lives in the outlying area of the district of Ate, one of the 43 that make up Lima, located on the east side of the capital. Like a large part of the population of the district of almost 600,000 inhabitants, his family came from the interior of the country in search of better opportunities.

“I have always believed that study is what pulls people out of ignorance, what sets us free, and that is what we wanted for our children when we came to Lima with my husband. That is why it hurts me very much that we have not been able to afford to support Rodrigo’s plans,” the young man’s mother, Elsa García, told IPS sadly.

The pandemic dealt a major blow to the family’s precarious budget, and Rodrigo and his two younger siblings dropped out of school in 2020. The following year, only the younger siblings were able to return to their studies.

“With my help at the shop we managed to save some money and my dad was able to buy a cell phone for my siblings to use and now they share internet. I have to continue supporting them so that they can finish school and become professionals, maybe later I can do it too,” Rodrigo said.

Barriers to education existed before the pandemic in this South American country. This is well known to Delia Paredes, who left school before completing her primary education because she became pregnant. Today she is 17 years old and has not been able to resume her studies.

She lives with her parents and younger sisters in the rural area outside of the town of Neshulla, which has a population of 7,500 and is located in the central-eastern part of Ucayali, a department in Peru’s Amazon jungle region. Her father, Úber Paredes, is a farmer with no land of his own and works as a laborer on neighboring farms, earning a monthly income of less than 100 dollars.

“I haven’t been able to afford to buy my daughter the shoes and clothes and school supplies she needed to continue studying, and after having her baby she became a homemaker helping my wife… I have no money, there is a lot of poverty around here,” he told IPS by telephone from Neshulla.

His younger daughters Alexandra and Deliz are in school and returned to the classroom this year. Alexandra feels sorry for her older sister. “She always repeats that she wanted to be a nurse. I have told her that when I become a teacher and am working, I will help her,” she said.

Early pregnancy, such as Delia’s, considered forced by rights organizations because it is usually the result of rape, reached 2.9 percent among girls and adolescents between 12 and 17 years of age in 2021. Like poverty, it is concentrated in rural areas, where it stood at 4.8 percent, compared to 2.3 percent in urban areas.

Widening gaps

In 2020, 8.2 million children and adolescents were enrolled in school nationwide, prior to the declaration of the pandemic. The total number of children and adolescents enrolled in May 2022 was close to 6.8 million. Educational authorities expected the gap to narrow over the next few months, but have not reported information on this.

In 2020 almost a quarter of a million schoolchildren were forced to drop out of school at the national level, and in 2021 the number was almost 125,000. However, by 2022, the gap has widened, with nearly 670,000 not enrolled in the current school year, which began in March.

This gap has emerged despite the fact that the Ministry of Education launched a National Emergency Plan for the Peruvian Educational System from the second half of 2021 to the first half of 2022, aimed at creating the conditions needed to bring back children who dropped out of school.

Professor Mendoza said the priority is to bring back to school the segment of the population excluded from the right to education. “A strategy is needed that provides support not only in terms of studying, but with regard to the difficulties dropped-out students face in surviving with their families who due to the pandemic have lost their mother, father or grandparents,” she said.

“You have to see them in that context and not just because they are underachieving in learning. To see that they have a life with terrible disadvantages to get ahead and that they are being excluded from the education system,” she said.

She added that it is necessary to clearly identify the target population. “The Peruvian school management system, which is quite developed, should allow us to know who these children and adolescents are, what their names are, where they live, what has happened to their families and how the school system can provide them with opportunities within their current living conditions.”

Mendoza explained that not only are they outside the system, but their living conditions have changed and they cannot be expected to return to the school system as if nothing had happened after they fell into even deeper poverty or were orphaned.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Guatemalans Fight Extractive Industries — Global Issues

One of the voting centers of the popular consultation held on Sunday, Sept. 18 in Asunción Mita, a town of 50,000 people in eastern Guatemala. The majority of the people who voted said no to the Cerro Blanco mine, due to its environmental impacts. CREDIt: Edgardo Ayala/IPS
  • by Edgardo Ayala (asunciÓn mita, guatemala)
  • Inter Press Service

The most recent rejection of mining projects in this Central American country took place on Sunday Sept. 18 in the town of Asunción Mita, 350 kilometers southeast of the capital of Guatemala, in the department of Jutiapa.

The “No” vote wins

Here, through a citizen consultation, 88 percent of the more than 8,503 people who voted said “no” to the operations of the Cerro Blanco gold mine, owned by Elevar Resources, a subsidiary of Canada’s Bluestone Resources.

“In my view we can’t allow this to go ahead, we are getting older, but we don’t want the children and young people to suffer from the environmental impact of the mine,” said Petronila Hernández, 55, after voting at a school on the outskirts of Asunción Mita.

Hernández added to IPS that “we don’t agree with the mine, it affects our water sources, we carry the water from the water source, and the mine contaminates it.”

Hernández was accompanied by her daughter, Marilexis Ramos, 21.

“Hopefully our ‘No’ vote will win,” said Ramos during the voting. At the end of the afternoon the counting of votes began, and by Monday Sept. 19 the results began to be clear.

Mother and daughter live in the Cerro Liso hamlet, on the outskirts of Asunción Mita, very close to the mine.

The Cerro Blanco underground mine was licensed to operate in 2007 for a period of 25 years, but since then it has not been able to extract gold and silver, due to unforeseen issues.

The project encountered thermal water veins in the subsoil that released heat that made it impossible to work for long enough inside the two tunnels built in the mine, activist Juan Carlos Estrada, of the Water and Sanitation Network of Guatemala, told IPS.

“The mine has been stranded for almost 15 years without extracting a single ounce of ore,” Estrada said.

However, the community struggle continues because, despite the setback it suffered in Sunday’s vote, the company still intends to operate the mine and to do so it aims to modify the original plan and turn it into an open pit mine.

People vs. transnational corporations

Guatemala, a nation of 17.4 million inhabitants, has experienced socio-environmental conflicts in recent decades as a result of the communities’ defense of their territories against the advance of mining and hydroelectric projects and other extractivist activities.

Many of the conflicts have taken place in the territories of indigenous peoples, who make up 60 percent of the total population. Members of affected communities have put up resistance and have faced crackdowns by police and soldiers.

This has earned them persecution and criminalization by the authorities.

In February, IPS reported on the struggle of indigenous Maya Q’eqchi’ communities in the municipality of El Estor, on the outskirts of Lake Izabal, in the department of the same name in eastern Guatemala.

The only active mine in Guatemala operates there, as similar projects have been blocked by the communities through citizen consultations or by court rulings, after the communities requested injunctions complaining about the lack of such votes, which are required.

The nickel mine in El Estor has been operated since 2011 by the transnational Solway Investment Group, headquartered in Switzerland, after purchasing it from Canada’s HudBay Minerals.

“Almost 100 consultations have been held, in 100 municipalities around the country, and in all of them mining and hydroelectric projects, mainly, have been rejected,” said José Cruz, of the environmental collective Madreselva.

The high number of consultations expresses the level of struggle of the population and the companies’ interest in the country’s natural resources.

“The only mining project currently operating is El Estor,” Cruz told IPS. And it is still active thanks to a “mock” consultation, manipulated by the company, which apparently endorsed the mine.

The Oxec I and Oxec II hydroelectric projects have also been a source of socio-environmental conflict.

The first plant began operations in 2015 and the second has been under construction since two years later. Both are owned by the Energy Resources Capital Corporation, registered in Panama.

In 2015, local Q’eqchi indigenous communities launched a struggle against the two hydroelectric power plants on the Cahabón River, located in the municipality of Santa María de Cahabón, in the department of Alta Verapaz in northern Guatemala.

After suffering persecution for his active participation in defense of his people’s territories, Q’eqchi leader Bernardo Caal was imprisoned in January 2018 and sentenced the following November to seven years in prison by a court “without any evidence,” as denounced at the time by Amnesty International, which considered him a prisoner of conscience.

However, he was released in March 2022 for good behavior and because there was essentially no evidence against him.

Projects that pollute across borders

Although the victory of the “no” vote in Asunción Mita represents an achievement for local residents, the project still presents a pollution risk, not only for this town of 50,000 people, but also for neighboring El Salvador.

Asunción Mita is located near the border with El Salvador.

Environmental organizations in Guatemala, Honduras and El Salvador have warned that heavy metal pollution from the mine would end up impacting the Ostúa River on the Guatemalan side.

The waters of that river, in turn, would reach Lake Guija, on the Salvadoran side. And a segment of that lake is reached by the Lempa River, which provides water to more than one million people in San Salvador and neighboring municipalities.

The Lempa River is 422 kilometers long and its basin covers three countries: It originates in Guatemala, crosses a small portion of Honduras and then zigzags through El Salvador until flowing into the Pacific Ocean.

El Salvador passed a law in March 2017 prohibiting mining, underground or open pit, but the proximity to the Cerro Blanco mine makes it vulnerable to pollution.

“We are concerned, our main source of water is under threat,” Salvadoran activist Dalia González, of the Green Rebellion movement, told IPS.

González added that the governments of Guatemala and El Salvador have an important role to play in protecting natural resources and the health of the local population.

“Because the effects of the mines cross borders,” said the young activist on the banks of the Ostúa River, where she had arrived along with Salvadoran environmentalists and journalists after witnessing the consultation process.

González called on Salvadoran President Nayib Bukele to engage in a dialogue with his Guatemalan counterpart Alejandro Giammattei to find a solution to the problem of pollution that would also affect El Salvador.

“The situation is serious and requires urgent action,” said the Salvadoran activist.

After learning the results of the citizen consultation in Asunción Mita, the company behind the Cerro Blanco mine, Elevar Resources, called the process illegal, according to a press release made public on Monday Sept. 19.

The company’s managing director, Bob Gil, said, “this consultation process is clearly illegal and full of irregularities,” according to the statement.

In the company’s view, the process was flawed by what it called “anti-mining groups”.

“We are disappointed with the actions of these groups who use biased referendums to create doubt and uncertainty regarding responsible mining projects such as Cerro Blanco,” he added.

The consortium said the aim is to continue developing the project and to produce 2.6 million ounces of gold during the life of the mine.

Due to the problems it has had with the tunnels and the heat that prevents it from working and extracting the minerals, in November 2021 the company submitted a request to the authorities to transform the current underground mine into an open-pit mine.

The company “spoke of updating the Environmental Impact Study, but what was needed was a new study, because it was a completely different project,” said Madreselva’s Cruz.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Mexico’s Electric Mobility, Stuck in Fossil Fuel Traffic — Global Issues

The Mexico City government is increasing the number of electric buses in its fleet, such as the trolleybuses pictured here on a street in the south of the capital. But their energy source is still fossil fuels and the deployment of electric cars remains slow in the country. CREDIT: Emilio Godoy/IPS
  • by Emilio Godoy (mexico city)
  • Inter Press Service

Mexico, a country of some 129 million people, lacks a national road transport strategy, considered vital for reducing polluting emissions and for the path to a low-carbon economy, which restricts the adoption of policies.

Experts consulted by IPS highlighted the limitations of the measures introduced regarding road transportation.

“Electric mobility is still not very developed, both in terms of facilities for acquiring vehicles and infrastructure. We are not advancing as fast as other Latin American cities. There is a lack of cutting-edge projects,” Bernardo Baranda, director for Latin America of the non-governmental Institute for Transportation and Development Policy, based in Mexico City, told IPS.

Mexico City, home to more than 20 million people when its suburbs are included, seeks to promote electric public transport with the new route for an elevated track exclusively for buses. It is also pushing other initiatives, such as the conversion of buses from diesel to electric, announced in July.

Only two other major cities in the country, the western city of Guadalajara and the northern city of Monterrey, have electric public transportation buses.

In the Latin American region, capitals such as Bogota, Montevideo and Santiago de Chile have large electric public transport fleets and countries such as Chile, Costa Rica, Panama and Uruguay already have sectoral plans in the region.

The Mexican vehicle fleet exceeds 53 million units and has been constantly growing since 2000, according to figures from the National Institute of Geography and Statistics.

Sales of electric and hybrid cars are on the rise: in 2016, dealerships sold 254 electric units, compared to 1,703 in the first half of this year alone.

Self-charging hybrids that do not need to be plugged in (they use their gasoline engines to charge the batteries) have been the most popular, with the number purchased climbing from 7,490 in 2016 to 19,060 in the first half of 2022. Sales of plug-in vehicles grew from 521 to 2,263 in that same period.

Since 2018, the government’s Federal Electricity Commission (CFE) has held at least two tenders for the installation of so-called electrolineras, charging stations, in the country, where more than 2,000 points are already operating. But not all of them are working, as IPS found in a tour of several areas of the Mexican capital.

Be that as it may, the government’s plan to deploy this infrastructure has not sufficed to boost the purchase of electric vehicles.

Gustavo Jiménez, director of the consulting firm Grupo E-mobilitas, acknowledged “slow progress” in the deployment of public transportation, cab fleets and delivery companies, as well as vehicle assembly projects.

“For the last two years there have been no export and import tariffs for electric vehicles, which reduces the cost by 20 percent. There is also a reduction in value added tax. But progress has not been as fast as we would like. It is complicated to charge your vehicle as you drive around the country,” he told IPS.

The National Electric Mobility Strategy, which the government of President Andrés Manuel López Obrador froze when he took office in December 2018, created a comprehensive framework and incentive schemes for electric vehicles.

In addition, the current government, described as “pro-fossil fuels” by environmentalists critical of its defense of hydrocarbons, maintains record levels of gasoline subsidies, which will exceed 15 billion dollars in 2022, according to official estimates.

Latin America’s second-largest economy is the world’s 12th biggest oil producer and 17th biggest gas producer. In terms of proven crude oil reserves, it ranks 20th and 41st, according to data from the state-owned oil giant Petróleos Mexicanos (Pemex), in an industry protected by López Obrador despite the country’s climate commitments.

Among the measures of the stalled Strategy were the installation of charging infrastructure in streets and homes, the introduction of green license plates and the exemption of import and export taxes for electric vehicles.

During the 2nd Annual Meeting of the U.S.-Mexico High Level Economic Dialogue, held in Mexico City on Sept. 12, the United States invited its neighbor and trading partner to participate in an integrated electric vehicle supply chain – an essential link in the economic-environmental program implemented by the U.S. government.

White smoke

The Economic Commission for Latin America and the Caribbean (ECLAC) lists 10 electromobility projects in the region, one of which involves the manufacture and sale of electric three-wheeled vehicles in Mexico.

Mexico City, Guadalajara and Monterrey, together with three Colombian cities and five Brazilian cities, are also participating in the TUMI E-Bus Mission project, aimed at supporting 500 cities by 2025 in their transition to the deployment of 100,000 electric buses in total.

Funded by German economic cooperation and six international organizations, the project is part of the Transformative Urban Mobility Initiative (TUMI).

The decarbonization of transportation is fundamental to the fight against the global climate crisis. In Mexico, CO2 emissions from that segment totaled 148 million tons in 2019, equivalent to 20 percent of the total, according to the government’s National Institute of Ecology and Climate Change (Inecc).

Estimates by the Ministry of the Environment and Natural Resources put life-cycle emissions (from fuel extraction to combustion in the engine) at 358 grams of CO2 per kilometer for gasoline-burning vehicles, 166 for hybrid cars (using fuel and electricity) and 77 for solar energy users.

The study “Estimation of costs and benefits associated with the implementation of mitigation actions to meet the emission reduction targets assumed under the Paris Agreement”, presented on Sept. 13 by Inecc, indicates that six sectoral policies would contribute a mitigation of 36.5 million tons by 2030.

It also outlines 35 emission reduction actions with which the country would obtain total benefits of 295 billion dollars.

In the case of electromobility, the average cost of pollution abatement amounts to 500 dollars per ton, with an investment of nearly 5.9 billion dollars, gross benefits of 3.1 billion dollars and a reduction of 600,000 tons of CO2.

By replacing diesel buses with electric buses, the average cost would add up to 152.90 dollars per ton of CO2. The benefits of fuel savings would amount to 3.2 billion dollars.

By 2030, emissions cuts would contribute one million tons, but this potential would increase as domestic power generation incorporates more clean energy.

The CFE estimates that by 2041 some 700,000 electric vehicles will be in circulation in the country and will require 40,000 charging stations, which also means strengthening the domestic electric power grid.

Last November, during the Glasgow climate summit, Mexico adopted a voluntary goal to sell only non-polluting cars by 2035.

However, at the same time, the Mexican government has provided for the legalization of used cars coming from abroad in 2021, which experts see as a negative step in the fight against pollution.

Baranda the transportation expert said gasoline subsidies, the promotion of fossil fuels and the lack of energy transition are barriers to electromobility.

“You need public policies, at the federal and state level, such as incentives and infrastructure. Many countries are doing this. Mexico is not on the way to making good on international commitments. It’s a good opportunity to invest in electric transportation,” he said.

For his part, Jiménez questioned the current energy policy, which has an impact on sustainable mobility.

“There are no clear incentives for public transportation, significant subsidies are required. There is not so much infrastructure, there are no regulations for chargers, there are no measures for the circulation of electric cars. There is a lack of a coherent enabling framework and a national program to promote electric vehicles. Mexico has no coordination at the national level,” he complained.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Great Wind and Solar Potential Boosts Green Hydrogen in Northern Brazil — Global Issues

View of the port of Pecém, in the state of Ceará in northeastern Brazil, with its container yard and the bridge leading to the docks where the ships dock, in the background. Minerals, oil and gas, steel, cement and wind blades are some of the products imported or exported through what is the closest Brazilian port to Europe. CREDIT: Mario Osava/IPS
  • by Mario Osava (fortaleza, brazil)
  • Inter Press Service

The government of Ceará has already signed 22 memorandums of understanding with companies interested in participating in the so-called “green hydrogen hub,” which promises to attract a flood of investment to the Pecém Industrial and Port Complex.

“If 30 to 50 percent of these projects are effectively implemented, it will be a success and will transform the economy of Ceará,” predicted engineer and administrator Francisco Maia Júnior, secretary of Economic Development and Labor (Sedet) in the government of this state in Brazil’s Northeast region.

The lever will be demand from “countries lacking clean energy,” especially the European Union, pressured by its climate targets and now by reduced supplies of Russian oil and gas, in reaction to Western economic sanctions on Russia for its invasion of Ukraine.

Ceará has special advantages because of its huge wind energy potential, both onshore and offshore, in addition to abundant solar energy.

Hydrogen is produced as a fuel through the process of electrolysis, which consumes a large amount of electricity, and in order for it to be green, the electricity generation must be clean.

The state also has Pecém, a port built in 1995 with an industrial zone and an export zone, which is the closest to Europe of all of Brazil’s Atlantic ports.

Water, the key input from which the hydrogen in oxygen is broken down, will be reused treated wastewater from the metropolitan region of Fortaleza, capital of Ceará, 55 kilometers from the port. “It is cheaper than desalinating seawater,” Maia told IPS in his office at the regional government headquarters.

Fortaleza has the first large-scale desalination plant in Brazil, which is the source of 12 percent of the water consumed in this city of 2.7 million people.

Wind and solar potential

“Ceará is extremely privileged in renewable energies,” electrical engineer Jurandir Picanço Júnior, an experienced energy consultant for the Federation of Industries of Ceará (Fiec) and former president of the state-owned Ceará Energy Company, which was later privatized and acquired by Enel, the Italian electricity consortium, told IPS.

Wind and solar generation potential in the state was double the electricity supply in 2018, according to the Wind and Solar Atlas of Ceará, prepared in 2019 by Fiec together with the governmental Ceará Development Agency and the Brazilian Micro and Small Business Support Service.

Moreover, the two sources complement each other, with wind power growing at night and dropping in the hours around midday, exactly when solar power is most productive, said Picanço at Fiec headquarters, showing superimposed graphs of the daily generation of both sources.

The Northeast is the Brazilian region where wind power plants have multiplied the most, and their supply sometimes exceeds regional consumption. The local winds “are uniform, they do not blow in gusts” that affect other areas in the world where they can be stronger, said Maia. They are also “unidirectional,” said Picanço.

“The International Renewable Energy Agency (Irena) has recognized the Northeast as the most competitive region for green hydrogen,” said Picanço, forecasting Brazil’s leadership in production of the fuel by 2050. “Brazil is still hesitating in this area, but Ceará is not,” he said.

Having Pecém, a port through which 22 million tons a year pass, and its neighboring special economic zone (SEZ), with benefits such as tax reductions, enhances the competitiveness of Brazil’s hydrogen.

The port will have structures for storing hydrogen in the form of ammonia, which requires very low temperatures, with companies specialized in its transport and electrical installations with plugs for refrigerated containers, all factors that save investments, said Duna Uribe, commercial director of the Pecém Complex.

Link with Rotterdam

In addition, Rotterdam in the Netherlands, Europe’s largest port, has been a partner in Pecém, a state-owned company of Ceará, since 2018, with 30 percent of the shares. That brings credibility and attracts investments to the Brazilian port, Maia said.

This partnership is due in particular to Uribe, a young administrator with a master’s degree in Maritime Economics and Logistics from Erasmus University in the Netherlands, who worked at the Port of Rotterdam.

The complex currently generates about 55,000 direct and indirect jobs, 7,000 of which are in the port, where some 3,000 people work directly in port activities and in companies that operate there.

Pecém was born in 1995 with an initial focus on maritime transportation and two basic projects: a private steel industry to be installed in the SEZ and a state-owned oil refinery, which did not work out.

But the complex has always had an energy vocation, with four thermoelectric power plants, two coal-fired and two natural gas-fired, as well as a wind blade factory and two cement plants.

Social effects

“The port was good because it gave jobs to many people here who used to grow beans, sugarcane, bananas, and today they no longer have land to farm,” Zefinha Bezerra de Souza, 76, who has lived in the town of Pecém since 1961, told IPS.

One of her sons is still fishing. The port did not affect fishing, which is done far out at sea, she said.

One of the first to start working at the port was Terezinha Ferreira da Silva, 54. She started working for the Andrade Gutierrez construction company in 1997, in charge of the port’s initial works, and was later hired by the Complex’s administrator, where she is in charge of receiving documents and is a telephone operator.

“I was earning very well, I was able to build my house” in the town of Pecém, she said. The town, a few kilometers from the port, had 2,700 inhabitants according to the official 2010 census and twice as many people living in the surrounding rural area.

The “hydrogen hub” will start to become a reality in December, when the private company Energias de Portugal, from that European country, inaugurates a pilot hydrogen plant in the SEZ.

The wealth generated by the hub will initially be concentrated in Pecém, but will then radiate throughout the Northeast, because it will require numerous wind and solar energy plants to be installed in the region’s interior, Uribe told IPS in Fortaleza.

The installation of offshore wind farms is planned, but in the future. This activity has not yet been regulated and there will be a need for power transmission lines and training of technicians, she explained.

Hydrogen culture

Adaptations in local education, with changes at the university, are picking up speed. Since 2018, the state-owned Federal University of Ceará has had a Technological Park (Partec).

A hotel that was built on the university campus to host fans for the 2014 World Cup has been transformed from a white elephant into a green hydrogen research center, said Fernando Nunes, director-president of Partec.

Encouraging practical research and the emergence of new technology companies is one of its tasks, which are gaining new horizons with hydrogen.

It is necessary to train technicians even in the interior, because in the future hydrogen, initially intended for export, will be disseminated in the domestic market, “with mini-plants, when the cost comes down to reasonable levels,” Nunes told IPS.

“Energy will be the redemption of the Northeast, especially Ceará, where we already generate more electricity than we consume,” he said.

The promotion of hydrogen in Ceará is being carried out in a unique way, by a Working Group made up of the state government, represented by Sedet and the Secretariat of Environment, the Federation of Industries, the Federal University and the Pecém Complex.

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In the Face of Scarcity, Cubans Dream of Once Again Drinking Their Daily Cup of Coffee — Global Issues

A waiter serves coffee in a glass to a customer outside a coffee shop in Havana’s Vedado neighborhood. Drinking coffee on the street and in homes is a custom in Cuba that has become increasingly difficult to maintain, due to scarcity and cost. CREDIT: Jorge Luis Baños/IPS
  • by Luis Brizuela (havana)
  • Inter Press Service

“If I don’t drink it I don’t feel good, I have a headache all day. For me drinking coffee is almost as important as eating,” said Barrios, who receives from family members quantities of coffee beans “brought from the east, where the best coffee in the country is produced,” which she mixes with chickpeas before roasting, to make it stretch farther.

After drinking her own cup, Barrios sells coffee as a street vendor in the early morning in the old town district of Centro Habana, one of the 15 municipalities that make up Havana.

“That sip of hot coffee is sometimes the entire breakfast of people who go to work and don’t have it at home because they leave in a hurry, or because they don’t have any coffee, which in addition to being scarce has become very expensive,” Barrios said in an interview with IPS.

Coffee is part of the basic food basket on the island. The government sells each month, per person and on a subsidized basis, a 115-gram package mixed with 50 percent chickpeas.

In recent months there have been delays in distribution due to the late arrival of raw materials, including packaging paper, given the financial problems faced by this Caribbean island country in the midst of the deepening structural crisis of its economy, which dates back three decades.

When consulted by IPS, residents in some of Cuba’s 168 municipalities admit that the coffee quota “is barely enough for seven to 10 days, if you’re thrifty.”

People often resort to the black market to acquire additional quantities. There, the same 115-gram package, often taken from stores or government establishments, is sold for the equivalent of half a dollar.

Better quality Cuban and foreign coffee brands are sold almost exclusively in stores in convertible currencies, unaffordable for many families who are paid wages in the devalued Cuban peso.

For example, a kilo of the national brand Cubita costs about 15 dollars in a country with an average monthly salary equivalent to 32 dollars, according to the official rate of 120 pesos to the dollar.

Boosting coffee production on the plains

Coffee arrived in Cuba in 1748 and production received a major boost after the Haitian revolution (1791-1804), with the immigration of French-Haitian farmers who settled in mountainous areas of the eastern part of the island where they set up coffee plantations, some of whose ruins were declared World Heritage Sites by UNESCO in the year 2000.

During part of the 19th century, this country was the main exporter of coffee to Europe, exporting 29,500 tons in 1833, for example.

Statistics show that the historical record was reached in the 1961-1962 harvest: 60,300 tons. But after that production declined and currently volumes do not exceed 10,000 tons per year.

With a demand of 24,000 tons per year, this once important exporter actually has to import coffee from other countries, but in quantities that do not meet its needs.

According to Elexis Legrá, director of coffee and cocoa of the Agroforestry Group (GAF), attached to the Ministry of Agriculture, Cuba exports the Arabica variety, the highest quality, produced by coffee growers in mountainous areas.

The prospect is to start exporting small quantities of the Robusta variety, in greatest demand on the international market.

This year, the goal is to export some 2,700 tons, a figure similar to that of 2020, according to industry executives.

Experts say the main factors behind the drop in production are pests, tropical cyclones that frequently hit the island, the effects of climate change, the depopulation of rural and mountainous areas and obsolescent technology.

About 90 percent of national coffee production comes from the mountains in the four easternmost provinces: Holguín, Granma, Santiago de Cuba and Guantánamo, where the highest quality varieties are grown, due to tradition and favorable microclimates.

However, since 2014 the Cuban government began identifying soils with adequate conditions for planting coffee in lowland regions, and training courses and technical advice have been provided to new coffee growers.

“They used to say you couldn’t grow coffee here, and today we have some 2,000 bushes on just half a hectare,” Juan Miguel Fleitas told IPS. In addition to growing root vegetables, fresh produce and fruit and raising livestock, he also grows coffee on his family farm, Victoria 1, in the capital’s Guanabacoa municipality.

The 29-hectare farm, with six workers, belongs to the 26 de Julio Basic Units of Cooperative Production (UBPCs).

The UBPCs manage both private properties and state lands granted in usufruct in this socialist nation with a largely centralized economy.

“In the cooperative we have about eight hectares of coffee, dispersed. We are working on the introduction of Vietnamese coffee. It has a good yield, with a larger bean,” the farm’s head of agricultural production, Jorge Luis Gutiérrez, told IPS.

The beans came from seed banks from the east of the island, as part of the Cuba-Vietnam collaboration project, developed from 2015 to 2020.

In the 1970s, Cuban experts taught Vietnamese farmers and extension workers to plant this variety, in a nation then devastated by the war with the United States (1955-1975).

Vietnam is today the second largest exporter of the bean and shares its know-how with Cuba to achieve Robusta coffee cuttings that guarantee renewed plants with superior characteristics, in order to increase quality and yields.

Cuba’s “program to grow coffee in the lowlands” has set a goal of planting 7,163 hectares of coffee in production areas in several of the country’s 15 provinces.

So far, 1,200 hectares have been planted, another 700 hectares are in preparation, and the aim is to harvest more than 4,000 tons by 2030, according to official estimates.

By that date, Cuba’s “coffee production development program” aims to harvest 30,000 tons of coffee nationwide.

Organic coffee

Esperanza González is committed to growing coffee “without chemicals or herbicides, only using agroecological management techniques, earthworm humus, lots of organic matter and free-roaming chickens that help fertilize the soil with their excrement.”

González, who returned to Cuba after living for years in the Canadian province of Manitoba, was granted in 2017 in usufruct the eight-hectare Farm 878 that she renamed Doña Esperanza, located in the town of Santa Amelia, in the municipality of Cotorro, near the capital.

Since 2008, the Cuban government has granted unproductive and/or degraded land in usufruct to recuperate it and bolster food production.

This policy forms part of plans to strengthen food security in a country that is up to 70 percent dependent on food imports, whose rising prices lead to a domestic market with unsatisfied needs and shortages.

González, who through her own efforts imported “the equipment and the technology to be able to completely process our coffee,” told IPS that she hopes that with this year’s harvest they will “have a local quality product packaged under our own brand.”

However, she also highlighted “the exchange with coffee growers in the municipality of Segundo Frente (in the province of Santiago de Cuba), from whom we have received baskets to harvest coffee and give the final preparations to our crop.”

In 2021 “we harvested half a ton of good quality beans. We hope that little by little Doña Esperanza will become a lowlands coffee farm with higher volumes of export-quality and national-consumption production, which is so much needed,” she said.

Several initiatives with international support seek to strengthen the value chains associated with coffee production, restore the soils and ecosystems where coffee is grown, and identify markets for selling coffee grown with sustainable practices.

Prodecafé, an agroforestry cooperative development initiative that will run until 2027, was launched in February. With a budget of over 63 million dollars, it is expected to benefit 300 cooperatives in 27 municipalities in the four eastern provinces where coffee production is concentrated.

This joint project of the International Fund for Agricultural Development (IFAD) and the Ministry of Agriculture is aimed at strengthening the cocoa and coffee value chains and includes a gender approach by encouraging the inclusion of women in agroforestry activities.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Bukele’s Failed Bitcoin Experiment in El Salvador — Global Issues

María del Carmen Aguirre, 52, stands outside her home and pizza business in El Zonte, on the Pacific coast of El Salvador. Her daughters send her remittances from the United States, but they use traditional systems and not the bitcoin electronic wallet, after this country became the first to make bitcoins legal tender on Sept. 7, 2021. CREDIT: Edgardo Ayala/IPS
  • by Edgardo Ayala (san salvador)
  • Inter Press Service

This result was foreseeable since Sept. 7, 2021, when Bukele’s government decided, out of the blue and without any precedent, to make bitcoin legal tender through a law approved by the legislature, controlled by members of the ruling party, Nuevas Ideas.

The aims of that decision were never explained in detail in an official plan, but were basically set out by Bukele, in power since 2019, through his tweets, as well as by officials who merely repeated what the president, given to governing with an authoritarian style, in which he is the only authorized voice for almost everything, has said.

“Unfortunately there is no formal document or official information from the government in which the specific objectives of the measure have been laid out,” economist Tatiana Marroquín told IPS.

But judging by the president’s announcements, and by communications between the government and the International Monetary Fund (IMF), which requested in January 2022 that the measure be annulled, several aims can be highlighted, such as boosting financial inclusion and tourism and improving the country’s “brand”, said Marroquín.

Disenchantment with the Chivo Wallet

The government claimed that bitcoin as legal tender would reduce the gap of unbanked people, which is around 70 percent of the population.

That segment would begin to carry out digital financial transactions with several clicks from their cell phones, according to the government.

However, because much of the information on bitcoin transactions has been classified by the authorities, it is unknown, for example, what percentage of the population is still actively using the Chivo Wallet, the digital wallet created by the government, and in what amounts.

Chivo is basically slang for “cool” in El Salvador.

It is known that at the beginning of the cryptocurrency’s implementation, around four million people downloaded the application, but basically they did so in order to collect a 30 dollar bonus granted by the government to promote the use of bitcoins.

But by this point it is clear that very few people are still using the application, judging by what you hear and see in the towns and cities of this Central American country of 6.7 million people.

“In the end, the majority of the population is not using either the government e-wallet or bitcoins in general,” Marroquin said.

Some businesses use them to receive payments, but there are very few transactions, analyst Ricardo Chavarría, director of Renta Asset Management, a company that manages investment funds in the international market, told IPS.

Nor has the government managed to convince Salvadorans living abroad to use the app to send family remittances to El Salvador, one of its main aims when it dove headfirst into bitcoins.

Each year, the country receives around seven billion dollars in remittances, representing 26 percent of GDP.

In August 2021, a month before the approval of the so-called Bitcoin Law, Bukele said in a tweet that Salvadorans pay around 400 million dollars in commissions to send money to their families in El Salvador.

That amount of money would be saved by sending it through the Chivo Wallet.

Not even the diaspora trusts the cryptocurrency

However, according to official figures, only 1.5 percent of remittances were sent through e-wallets in the first quarter of 2022, a percentage far below what the government expected.

This was probably influenced by the high volatility of cryptoassets such as bitcoin, which is currently going through a crisis in its value, dubbed as a crypto winter.

Bitcoin’s price plunged to 19,813 dollars at the close on Sept. 5, well below last year’s peak, when it surpassed the 60,000 dollar mark.

And the Salvadoran population abroad, especially in the United States, where more than three million live, is reluctant to bet on something so volatile and, therefore, risky.

“People are extremely careful, despite the political capital of the president (Bukele), the same people over there (Salvadorans in the United States) do not risk their money,” said Chavarría.

That is the case of María del Carmen Aguirre, a 52-year-old entrepreneur who runs a small pizza business in El Zonte, a coastal community on El Salvador’s Pacific coast, some 50 kilometers southeast of San Salvador, part of the municipality of Chiltiupán, in the central department of La Libertad.

Aguirre told IPS that she regularly receives remittances from her two daughters who live in the United States, in San Francisco, California, but neither of them send the money through Chivo Wallet or any other similar platform.

“They send it only through the bank. It seems that they are quite afraid. ‘What happens if we send 200 dollars and at that moment the price of bitcoin goes down?’ they say to me,” said Aguirre, in her pizzeria.

El Zonte is a beach area known for its surfing and because an unusual community effort to use the cryptocurrency was launched there, about two years before the government decided to try bitcoins.

This initiative was promoted thanks to a donor, who remains anonymous, who gave money to carry out works in the town, but on the condition that those who worked on them would be paid in bitcoins and not in dollars, the legal tender in El Salvador since 2001.

That still raises suspicions: why would anyone be interested in promoting the crypto-asset in a poor coastal town, with dirt roads and modest shacks, although there are also some luxury hotels, hostels and restaurants.

During the COVID-19 pandemic, families in El Zonte received, on several occasions, 30-dollar vouchers from the mystery donor to use for bitcoin transactions.

“They gave us the bonus three or four times so we could go to the stores that already handled bitcoin,” Aguirre said.

Chavarría said the cryptocurrency is probably at the end of the so-called crypto winter, and he expects it to rise again in the future.

“For me, in a medium to long term horizon it is going to recover and it is going to win out,” he argued.

Not just gangs

One thing that Marroquín the economist and financial analyst Chavarría agreed on is that, with the passage of the Bitcoin Law, El Salvador made the global headlines about something other than the recurring issue of gang violence, which used to be the only issue of interest to the international press.

In this sense, it could be argued that the country’s image improved somewhat on the world news agenda.

“The fact that El Salvador is on the news map and that it appears in Bloomberg, in The New York Times, in Spain’s El País, when the only topic before was the gangs, is good news for me as a Salvadoran,” said Chavarría.

Marroquín concurred that “El Salvador is undoubtedly no longer known as it used to be solely for violence.”

She added that the adoption of the bitcoin has also bolstered tourism in the country by attracting a segment of visitors interested in the cryptocurrency, although it remains to be seen whether this improvement will have an impact on poor communities near tourist spots.

A cloak of secrecy

The government has been harshly criticized for the secrecy with which it has handled not only the adoption of the bitcoin but also other important issues about which the public has demanded information, since they have involved the use of public funds for which the Bukele administration has not been held accountable.

When it has been made available, Information has arrived in dribs and drabs.

It is known that the government has purchased 2,381 bitcoins, on which it has spent 106.04 million dollars. But when related investments are factored in, such as the ATMs placed at various points around the country, the total investment exceeds 300 million dollars.

“There is a big black cloak surrounding the government’s use of public funds,” Marroquín said.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Biomethane, the Energy that Cleans Garbage in Brazil — Global Issues

Thales Motta, director of GNR Fortaleza, stands in front of the biomethane plant located in northeastern Brazil, the development of which required overcoming prejudices, mistrust and misinformation to open up the market for gas generated from garbage. Now biomethane is expanding, making use of landfills and agricultural biomass. CREDIT: Mario Osava/IPS
  • by Mario Osava (fortaleza, brazil)
  • Inter Press Service

Two small plateaus stand out in the landscape on the outskirts of Caucaia, one of the 19 municipalities that make up the metropolitan region of Fortaleza, capital of the state of Ceará in the Northeast of the country.

Although they look similar, one of the hills receives about 5,000 tons per day of solid waste collected in the metropolitan region of 4.2 million inhabitants. The other, the old sanitary landfill which began to operate in 1991, is already closed, but it is the one that generates more gas.

“We are pioneers in the production of biomethane from garbage,” said Thales Motta, director of Fortaleza Renewable Natural Gas (GNR), a partnership between the private companies Ecometano, of the MDC renewable energy and natural gas group, and Marquise Ambiental, of Fortaleza, which manages the Caucaia landfills.

Biomethane is the by-product of biogas refining that removes other gases, such as carbon dioxide and hydrogen sulfide.

GNR Fortaleza produces about 100,000 cubic meters per day of this gas, which is sold to the state-owned Ceará Gas Company (Cegás), which mixes it with natural gas in its pipelines.

“We supply 15 percent of the gas distributed by Cegás, which trusted the quality of our biomethane,” Motta said during IPS’s visit to the GNR plant, inaugurated in December 2017.

Initial difficulties

Ecometano’s pioneering activity is due to another plant, Dos Arcos, established in 2014 in São Pedro da Aldeia, a coastal city of 108,000 inhabitants, 140 kilometers from Rio de Janeiro. Its capacity is limited to 14,000 cubic meters per day.

“There was no regulation for biomethane then and the National Agency of Petroleum, Natural Gas and Biofuels denied us authorization to sell it,” said Motta, an electrical engineer. There were losses; the sales were made directly to a limited number of customers, such as supermarkets.

But the company persevered and the regulation came out in 2017, shortly before the start of GNR Fortaleza’s operations.

“There was a great deal of prejudice even among engineers, skepticism in the gas companies. We had to present analyses and quality tests that were more rigorous than the ones required for fossil fuel gas,” said the plant manager.

“But we broke down the barrier of discredit and opened a new market, proving that it is a safe, stable gas with predictable prices,” he added.

Advantageous costs

At the beginning, biomethane cost 30 percent more, but today it is 30 percent cheaper than natural gas, in view of the rise in fossil fuels, he pointed out. Its price depends on internal factors, such as inflation, and is not subject to unpredictable oil prices on the international market or exchange rate fluctuations, he stressed.

“Biomethane competes with fossil gas on an advantageous footing today. But even if oil becomes cheaper, the market is predisposed to betting on biomethane” because of environmental issues, he said.

“Cegás decided to distribute biomethane because it considers it strategic to diversify its mix with a cleaner, renewable and sustainable gas, thus contributing to reducing pollution and improving the environment,” the company’s president, Hugo de Figueiredo Junior, told IPS.

“It is also an opportunity to expand suppliers, competition and conditions to offer better prices to the end consumer,” he added.

Cegás, in which the state of Ceará is a majority shareholder, was a pioneer within Brazil in the injection of biomethane into its network, starting in May 2018.

The nearly 15 percent proportion of biomethane in the total volume constitutes “one of the highest percentages of renewable gas injected into the grid by a distributor in the world,” Figueiredo said.

That proportion may expand in the future, but biomethane faces several challenges, he added.

There is a need to disseminate existing technological solutions and facilitate access to them, expand knowledge about potential uses of green gases, and improve regulation and processes for the collection and disposal of solid waste and wastewater, he said.

Expansion

In terms of production, GNR Fortaleza is now the second largest biomethane plant in Brazil. It is surpassed by Gas Verde, from Seropédica, a town near Rio de Janeiro, which has been producing 120,000 cubic meters per day since 2019.

Many interested parties visit GNR, which has become a reference point for gas generated from waste because it has developed process technologies that make it possible to integrate equipment from different national and international suppliers, “with its own codes that are open” to anyone, said Motta.

Currently, many companies that extract biogas from landfills for electricity generation are preparing to convert their plants to biomethane production, he said.

“We receive visits here from universities and groups of interested parties. We have to build an auditorium for lectures. There was no laboratory for biomethane analysis in the Northeast. Now we have one and research on this gas is mushrooming,” Motta said.

But it is necessary to take a broader view, he acknowledged. Landfills are limited. A minimum of 2,000 tons of waste per day is needed to make a biomethane plant viable, he estimated. Only large cities with at least one million inhabitants generate that much solid waste.

“We have to look for other kinds of biomass,” he said.

This process is already underway, especially in the South and Southeast regions of Brazil, where largescale agricultural production offers a large volume of waste. Sugarcane is the main source of biomass, as it is also planted to produce ethanol, whose consumption in vehicles is on par with that of gasoline.

Livestock manure, especially from pigs, drives the production of biogas for electricity generation, and a growing proportion goes towards conversion into biomethane, especially for use in vehicles.

“Biomethane is a suitable fuel for the energy transition, has more predictable prices (than fossil fuels) and can be produced in regions far from the existing natural gas network,” which in Brazil is concentrated along the eastern coast, Figueiredo, the president of Cegás, said from the company’s headquarters in Fortaleza.

But not having a pipeline nearby can frustrate large projects, Motta said. He gave the example of a sugar agribusiness company that could produce 30,000 cubic meters of methane a day. As this is double its own consumption and the nearest big city is 90 kilometers away, the project was unfeasible.

Harnessing gas from garbage, and from biomass in general, has become an urgent necessity in the face of the climate emergency. Methane contributes more intensely to the greenhouse effect than carbon dioxide, the most prevalent greenhouse gas, which is used to gauge threats to the climate.

Brazil and other countries pledged to reduce methane emissions by 30 percent by 2030, as a crucial step towards keeping global warming to a maximum of two degrees Celsius by 2050.

GNR Fortaleza, located in Caucaia, a city of some 370,000 inhabitants 15 kilometers from Fortaleza, plays an environmental role. But in terms of employment, it generates only 32 direct jobs and an uncertain number of indirect jobs, including outsourced services, temporary consultants and suppliers of certain equipment.

Cegás serves only 24,000 gas consumers in Greater Fortaleza. According to its data, industry accounts for 46.26 percent of consumption, thermoelectric plants for 30 percent and motor vehicles for 22.71 percent. There is little left – just 0.73 percent for households and 1.22 percent for commerce.

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A Nod Towards Capitalism in Venezuela — Global Issues

A partial view of the city of Punto Fijo, with the Cardón refinery in the background, on the Paraguaná peninsula, projected as a special economic zone overlooking the Caribbean in northwest Venezuela. CREDIT: Megaconstrucciones
  • by Humberto Marquez (caracas)
  • Inter Press Service

The aim of the SEZs is “to provide special conditions to gain the economic confidence of investors from all over the world, and productive development to put an end once and for all to oil rentism,” said President Nicolás Maduro when he promulgated the Organic Law of Special Economic Zones on Jul. 20.

The SEZs, “90 percent of which are in the global developing South, are a catalyst for economic restructuring processes and go hand in hand with the expansion of the neoliberal economy,” sociologist Emiliano Terán, a researcher with the non-governmental Venezuelan Observatory of Political Ecology, told IPS.

According to the United Nations Conference on Trade and Development (Unctad), there were 5,383 SEZs in the world in 2019 and another 508 under construction, of which 4,772 were in developing countries – 2,543 in China alone and 737 in Southeast Asia.

In Latin America and the Caribbean there were 486 – 73 in the Dominican Republic, some 150 in Central America, seven in Mexico and 39 in Colombia.

SEZs are mainly commercial, such as free ports or free trade zones, where import quotas, tariffs, customs or sales taxes are eliminated; industrial, with an emphasis on improving infrastructure available to companies; urban or mining ventures; or export processing.

Their main characteristic is that, in order to stimulate investment, especially foreign investment, there are more flexible regulations on taxes, investment requirements, employment, paperwork and procedures, access to resources and inputs, export quotas and capital repatriation.

An eye on the environment

In Venezuela, the first five zones decreed are the arid Paraguaná Peninsula, in the northwest; Margarita Island, in the southeastern Caribbean; La Guaira and Puerto Cabello, which are the largest ports, along the central portion of the Caribbean coast; and the remote La Tortuga Island, some 200 kilometers northeast of Caracas.

Paraguaná (an area of 3,400 square kilometers) is home to a large oil refining complex, and Margarita Island (1,020 square kilometers) has for decades been a sales tax-free zone and a tourist mecca for Venezuela’s middle class.

Puerto Cabello and La Guaira are essentially ports for imports to the populated north-central part of the country, whose main exports, oil and metals, are shipped from docks in the production areas in the east and west.

Hotel complexes, airports, marinas and golf courses are being planned for La Tortuga, which covers 156 square kilometers and has no permanent population. Environmental groups warn that its waters, reefs and the island itself are home to five species of turtles, 73 species of birds and dozens of species of fish and cetaceans.

Limited economy

“The environmental issue is a concern, but it is hard to believe that the government has the resources or the investors for the number of hotels planned for La Tortuga,” economist Luis Oliveros, a professor at the Metropolitan and Central Universities of Venezuela, told IPS.

The decreed Venezuelan SEZs “seem more like announcements than realities, and although we like the government to think of growth and development hand in hand with private investment, much more is needed. It has yet to be clarified what exactly the government is pursuing with these zones,” Oliveros said.

In Venezuela “creating SEZs has limitations, such as the sanctions (imposed by the United States and the European Union) and the need to generate macroeconomic stability and legal certainty, which are pending issues,” he added.

After seven years of sharp decline – and three years of hyperinflation – Venezuela’s annual gross domestic product, which exceeded 300 billion dollars a decade ago, now stands between 50 and 60 billion dollars, according to economists.

Oil production, the main lever of the economy and source of tax revenues, has shrunk and is starved of new investments, while the State desperately seeks income by exporting crude oil at a discount or selling gold that is extracted at the cost of great environmental damage in the southeast of the country.

Attracting investment may be an uphill struggle for SEZs that have still not been fully mapped out, considering that, for example, major companies have not knocked on the door to raise oil production – 600,000 barrels per day when a decade ago it was three million – despite the favorable signals sent by the United States.

Since March, informal contacts between Washington and Caracas, prompted by the impact of the war in Ukraine on the world energy market, have explored, without success so far, easing sanctions and other measures to bring Venezuela back to the U.S. oil market with new investments.

Neoliberal plan

In the southeast of the country, an area rich in gold, iron, diamonds, coltan and other minerals, the 112,000 square kilometer Orinoco Mining Arc (larger than Bulgaria, Cuba or Portugal) was decreed in 2016 as a “strategic development zone”, and its control and management was handed over to the armed forces.

The Mining Arc “has been a precedent for a new model promoted by the State to attract investments, but with depredation of the environment and restriction of wages and workers’ rights,” warned Luis Crespo, professor of Economics at the Central University of Venezuela, during a forum at that university.

“The special economic zones are part of a silent neoliberal adjustment plan driven forward by the government of President Maduro,” said Crespo.

The Venezuelan SEZ law – enacted by the legislature, which has been boycotted by most of the political opposition – states that its purpose is to develop a new production model, promote domestic and foreign economic activity, and diversify and increase exports.

It also aims to promote innovation, industry and technology transfer, create jobs and “ensure the environmental sustainability of production processes.”

The terminology about socialism or transition to socialism, frequent in the political discourse of the government and the ruling United Socialist Party, is absent from the legislation of the SEZs and from the repeated calls for private capital.

“The example of China is being followed, as it is by other countries, in using the SEZs as a showcase for heterodox forms of capital accumulation, in a process of progressive neoliberalization of the economy, as the oil model of production and distribution of wealth is being exhausted,” Terán said.

He added that “the SEZs cannot be seen only in terms of macroeconomic indicators,” as they become “zones of social and environmental sacrifice, with a new political geography of dispossession, and with the cheapening of labor, especially that of women workers.”

According to UNCTAD, although there are differences in SEZs from one country to another and within countries, their common features include having a clearly defined geographic area, a regulatory regime that is distinct from the rest of the economy, and special infrastructure support for the development of their activities.

More politics

Venezuela’s SEZs will be guided by a council to be freely appointed by the president, each will have a single authority to be named by the president, and the decree establishing one of the zones must be considered by the legislature within 10 working days or it will be approved, without discussion.

Areas such as the SEZs, the Mining Arc or special military zones in practice modify the political-administrative division of the country, which only in theory is a federal republic with 23 states plus a capital district.

In another political move, on Aug. 23 Maduro publicly proposed to his new Colombian counterpart, leftwing President Gustavo Petro, who took office on Aug. 7, the creation of a special binational economic zone between southwestern Venezuela and northeastern Colombia.

“We are going to propose to President Petro the construction of a large economic, commercial and productive zone between the department of Norte de Santander (Colombia) and the state of Táchira (Venezuela),” Maduro said.

Diplomatic, political, commercial and transit relations between the neighboring countries have been severed since February 2019.

In Táchira, business spokespersons have expressed their support for this Andean state of 11,000 square kilometers to obtain special regimes that favor trade with the neighboring country, and their peers in Colombia are betting on a recovery of bilateral trade, which prospered until the first decade of this century.

Terán described the projected creation of the SEZs as a possible “new pact of elites in Venezuela,” after more than 20 years of acute political confrontation, but warned that “there is an alternative, because although fragmented, dispersed and with a new look, protests against these pacts have never ceased.”

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From Worm Composting to Biofuels, the Caribbean Seeks Solutions to Seaweed Influx — Global Issues

Sargassum seaweed envelopes the waterways near the Marigot Fisheries Complex, Dominica Credit: JAK/IPS
  • by Alison Kentish (dominica)
  • Inter Press Service

For the small island of Tobago in the Southern Caribbean, the impacts were felt across sectors and demographics.

“For about six to nine months of the year, you have an influx of Sargassum seaweed appearing on our shores. That not only affects the fishermen, the hotels and businesses in the area, but it also affects the schools near the affected beaches,” Managing Director of Recycling Waste and Logistics Limited, Shawn C Roberts, told IPS.

Roberts is also the Coordinator at Tobago Recycling Resource Initiative (TRRI), the first multiple materials recovery facility in Trinidad and Tobago and a pioneer in green solutions to environmental problems like waste management.

To tackle Tobago’s seaweed woes, Roberts has turned to earthworms. The process is called vermicomposting and involves the breakdown of organic matter by earthworms and microorganisms.

“It’s a controlled decomposition of the seaweed. It’s nature taking care of nature and so far, it is helping to alleviate this annual invasion of seaweed,” he said.

TRRI has launched the Alleviate Sargassum Action Program. Known as ASAP, program officials organize cleanup exercises on affected beaches. They then blend the collected sargassum with the earthworms and other organic materials like shredded cardboard, grass cuttings, and animal manure to generate compost.

Roberts is hoping that other countries will realize the benefits of vermicomposting for seaweed management.

“You don’t really need any major capital input. If you have your shed, or even trees and shade, you can build your compost piles and monitor them. You just allow the earthworms and other microorganisms like soldier flies to do their job.”

Far away from shore, sargassum is an important sanctuary for marine life. When it is deposited by the ton along coastlines, however, it becomes a health and economic nightmare.

The United Nations Environment Programme has warned that the sargassum’s production of hydrogen sulfide erodes air quality and prolonged exposure is harmful, particularly for people with respiratory issues.

“This is detrimental for coastal residents and beach users, whether local or visitors. Beach users who live elsewhere have the option to avoid impacted locations, while residents may be unable to avoid prolonged exposure,” the UN agency said, in a 2021 white paper.

Some countries, particularly tourism-dependent nations like Barbados, spend millions of dollars annually on emergency clean-ups to rid their beaches of rotting seaweed.

As far back as 2015, academics at the University of the West Indies lamented that it would take ‘US$120 million and more than 100,000 people’ to get rid of the sargassum crisis in the Caribbean.

The calamity has spawned innovation, and Roberts’ initiative in Tobago is one of many across the Caribbean.

The University of the West Indies announced last year that it was spearheading a research project to power vehicles with sargassum seaweed and wastewater fuel.

The researchers said the initiative could help Barbados in its goal of becoming fossil fuel free by 2030, while providing relief from the Sargassum seaweed emergency for the tourism sector.

In Saint Lucia, young biotech entrepreneur Johanan Dujon has been converting sargassum into fertilizers, organic fungicides, and pesticides under his Algas Organics brand.

For Roberts, whose program started composting in October 2021, the goal for the region should be cost-effective and long-term green solutions.

“The ability to harvest sargassum in an environmentally safe practice is a challenge. Quick fixes are costly. If you are not careful, the solution can be very expensive and reactive,” he told IPS.

“As much as you need emergency clean-ups using heavy equipment, many authorities wait until the sargassum starts decaying to react. Our approach lies in having a planned harvesting management system where you have regularly scheduled cleanups. When the sargassum is fresh, that is when you have to target it. Stockpiling creates a backlog that is more difficult and has severe odor. Then it gets overwhelming and affects us all.”

According to researchers at the University of South Florida’s Optical Oceanography Lab which produces monthly sargassum bulletins, in July 2022, the amount of seaweed in the Caribbean Sea was comparable to the historic high of the previous month.

“This indicates significant beaching events are still ongoing around the Caribbean Sea nations/islands,” the July bulletin stated.

“Vermicomposting presents a great opportunity for our countries,” says Roberts. “It allows less use of manual labor as it depends on the microorganisms to work, it is affordable, and it is natural.”

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Argentina Seeks Elusive Investments to Fully Exploit Shale Gas — Global Issues

A view of two towers in Vaca Muerta, the field whose discovery gave Argentina huge potential in shale gas and oil. Since 2011, governments have dreamed of fully exploiting it, but have been unable to do so, so the country spends billions of dollars annually on imports of gas. CREDIT: Energy Secretariat
  • by Daniel Gutman (buenos aires)
  • Inter Press Service

The main reason for this paradox -which aggravated the instability of the economy of this South American country- is the lack of transportation infrastructure.

In a public ceremony on Aug. 10, President Alberto Fernández signed the delayed contracts for the construction, for more than two billion dollars to be financed by the State, of a modern gas pipeline aimed at bridging that gap.

The objective is to bring a large part of the natural gas produced in Vaca Muerta to the capital, Buenos Aires, home to nearly a third of the 47 million inhabitants of this Southern Cone country.

Vaca Muerta is a geological formation with an abundance of shale gas and oil, located in the southern region of Patagonia, more than 1,000 kilometers from Buenos Aires.

The name Vaca Muerta has been on the lips of recent Argentine presidents as a symbol of the better future that awaits a country whose economy suffers from a chronic lack of foreign exchange and a weakened local currency, resulting in a poverty rate of around 40 percent of the population.

This has been the case since 2011, when the U.S. Energy Information Administration (EIA) reported that Vaca Muerta makes Argentina the country with the second largest shale gas reserves, behind China, and the fourth largest oil reserves.

Vaca Muerta has reserves of 308 trillion cubic feet of gas and 16.2 billion barrels of oil, according to EIA data, confirmed by Argentina’s state-owned oil company YPF.

“With Vaca Muerta, Argentina has the potential not only to achieve energy self-sufficiency but also to export. We are missing a huge opportunity,” said Salvador Gil, director of the Energy Engineering program at the public National University of San Martín, on the outskirts of Buenos Aires.

Gil told IPS that Argentina could play an important role, given the crisis of rising energy prices driven up by the war in Ukraine, which threatens to drag on.

But to do so, it must solve not only its transportation problems, but also the imbalances in the economy, which for years have hindered the influx of large investments in the country.

“Today, what the world needs is energy security and Argentina has gas, which has been identified as the main fuel needed for the transition period towards clean energies, in the context of the fight against climate change,” the expert said.

More foreign dependence

However, since 2011, when the EIA made public its first data on Vaca Muerta’s potential, which led politicians and experts to start dreaming that Argentina would in a few years become a kind of Saudi Arabia of South America, the country is in fact more and more dependent from the energy point of view.

A study of the period 2011-2021 released this year by a private think tank states that “the decade was characterized by an increase in Argentina’s external dependence on hydrocarbons: gas imports increased by 33.6 percent over the decade while diesel imports grew by 46 percent and gasoline expanded 996 percent.”

The document, published by the General Mosconi Energy Institute, points out that Argentina, which until the end of the 20th century enjoyed self-sufficiency in gas and oil, began to experience a considerable decrease in production in 2004.

Two years later, gas began to be imported by pipeline from Bolivia and in 2008 liquefied natural gas (LNG), brought by ship mainly from the United States and Qatar, started to be imported.

“Since then, the proportion of imported gas out of the total consumed in the country has grown. In 2009 it represented only six percent, rising to 22 percent in 2014. In 2021 it represented 17 percent of the total,” the report states.

Still far below its real potential, Vaca Muerta’s production has been growing. In June it contributed 56 percent of the 139 million cubic meters per day of natural gas produced in Argentina, according to official data.

Gas is the main fuel in the country’s energy mix, accounting for about 55 percent of the total.

With regard to oil, Vaca Muerta contributed 239,000 of the 583,000 barrels per day of national production in June.

Today, gas from Patagonia in the south is transported to Buenos Aires and other large towns and cities through three gas pipelines built in the 1980s, which do not live up to demand.

For this reason, the gas pipeline whose contract was signed this month has been described by both the political leadership and the academic world as the most urgently needed piece of infrastructure in Argentina at the moment.

Its cost was set at 1.49 billion dollars at the end of 2021, but it will probably exceed two billion dollars, due to the devaluation and inflation that are crippling the Argentine economy.

According to the government, the pipeline will be operational by June next year, at the beginning of the next southern hemisphere winter.

In search of investment

“Of course the pipeline is important, but it will not solve all of Argentina’s energy problems,” said Daniel Bouille, a researcher with a PhD in energy economics.

The expert reminded IPS that an important factor is that shale oil and gas is extracted using the hydraulic fracturing technique or fracking, which “is more costly than conventional techniques.”

“To develop Vaca Muerta´s great potential, investments of between 60 and 70 billion dollars are needed,” he explained.

Bouille said that today the conditions do not exist for these investments to take place, in a country whose economy has not been growing since 2010 and where there are exchange controls and limits on the export of foreign exchange, none of which foments confidence among international capital.

In order to combat this situation, Economy Minister Sergio Massa announced that on Sept. 9 he will visit oil giants such as Chevron, Exxon, Shell and Total at their headquarters in the U.S. city of Houston, Texas to interest them in the possibility of investing in Vaca Muerta.

Argentina does not seem to be coming up with alternatives. “For 20 years the country’s conventional oil and gas production has been steadily decreasing, because all the basins have been depleted,” said Nicolás Gadano, an economist specializing in energy at the private Di Tella University.

“It is precisely the shale hydrocarbons from Vaca Muerta that in the last five years have offset the situation to slow the fall in total production,” he added in an interview with IPS.

Gadano believes that further development of Vaca Muerta’s potential will be positive for Argentina even from an environmental point of view.

“This year in Argentina a lot of oil was used for electricity production due to the lack of gas. But when the pipeline begins to operate, liquid fuels will be replaced by gas, which is a cleaner fuel,” he said.

There are also less visible but critical voices regarding the focus on Vaca Muerta as the path that Argentina should follow in terms of energy.

“Fracking, in addition to its negative environmental and social impacts, is very expensive,” said Martín Alvarez, a researcher at Observatorio Petrolero Sur, a non-governmental organization that focuses on the environmental and social aspects of energy issues.

He noted that “Vaca Muerta hydrocarbons had no possibilities of being exported until the current global energy crisis. It wasn’t until this year’s international price increase that a market for them emerged.”

“Argentina has forgotten about renewable energies and is committed to fossil fuels, which is a step backwards and goes against international climate agreements. Seeking the development of Vaca Muerta has been the only energy policy of this country in the last 10 years,” he complained.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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