By Bradley Brooks <a href=www.upi.com>UPI Business Correspondent From the Business & Economics Desk Published 5/1/2003 8:14 AM

RIO DE JANEIRO, Brazil, May 1 (UPI) -- It was a mixed week for stocks across Latin America, as solid earnings reports and optimism in Brazil buoyed investors. But less-than-favorable election results in Argentina temporarily sent equities there down.

A Sunday vote in Argentina sent former President Carlos Menem and his fellow Peronist rival Nestor Kirchner into a second-round vote scheduled for May 18.

While investors like Menem's business-friendly talk, the corruption that was rather rampant during his 1989 to 1999 time in office does prompt some anxiety.

The center-left Kirchner is not viewed favorably by investors, who see him continuing many of President Eduardo Duhalde's big-government policies.

Some analysts don't envision either Menem or Kirchner as viable alternatives who can lead Argentina -- South America's second-biggest economy -- back to days of solid growth and tranquility.

"To date, neither candidate has laid out a coherent economic road map for Argentina in anything that I have seen directly or indirectly," said Edwin Truman, a senior fellow at the Institute for International Economics in Washington.

Not exactly the sort of analysis investors get excited with.

Truman laid out what he thinks are the important initial steps Argentina's next president should take to make the country once again an attractive place to do business.

"The first lesson of all governments is to take the bitter medicine early. The new government will have a lot to do," he said.

"They may not be the central issues for the Argentine people, but the rest of the world will be watching what is done to fix the busted banking system and to address the issue of public utilities."

Meanwhile, over in Brazil, Latin America's biggest economy, investors remained on a roll.

The government sold some $1 billion in bonds on Tuesday, marking Brazil's first entry back into the international market in more than one year.

That is not only a significant financial step, but a symbolic gesture of the renewed optimism that Brazil -- the eternal "country of the future" as the locals like to say -- may start coming into its own this year.

But, analysts warn, all that hinges upon the continued austerity of the center-left government of President Luiz Inacio Lula da Silva, and his pushing through much-needed reforms to Brazil's pension, tax and legal systems.

As for the markets, Brazil's Bovespa stock index finished last Thursday down 2.2 percent at 12,120. Profit taking was to blame, as equities rallied six percent in the previous five sessions. Long-distance carrier Embratel lost 5.8 percent. Jetmaker Embraer fell 1.79.

Friday brought a flat close at 12,126 for the index, profit taking again hurting the day. Banco Bradesco dropped 2.14 percent.

News of the $1 billion bond issuance pumped investors up Monday. The Bovespa rose 2.8 percent to 12,462, it highest point in 10 months. The trading day gained momentum late, especially after investors learned Brazil would use the new "collective action" clause in selling the new bonds, thus making them more manageable in a default or rescheduling situation. Fixed-line phone giant Telemar gained 4.7 percent. State-run oil company Petrobras rose 1 percent.

Tuesday brought a gain of 1.7 percent to 12,678 as the bond issuance went off without a hitch. Telemar added 3.55 percent, while cellular company Telemig gained 2.6 percent.

Wednesday brought a loss of 0.96 percent to 12,557 for the Bovespa. Bradesco shed 2.38 percent, while Embratel slipped 3.78 percent. Telemar lost 2.8 percent.

In Mexico, the IPC index ended Thursday flat at 6,379. Latin America's largest wireless company America Movil gained 3.96 after reporting solid earnings after the bell Wednesday. Fixed-line phone company Telmex, however, shed 2.16 percent.

Friday saw a loss of 0.7 percent to 6,333 for the IPC, mostly on profit taking. Broadcaster TV Azteca added 3.2 percent after reporting a nice increase in profits after the bell Thursday.

The IPC rose 1.5 percent to 6,428 Monday. TV Azteca led the day, gaining 5.4 percent as investors retained residual optimism from the earnings report.

Rival broadcaster Televisa gained 3.62 percent Monday, despite having its stock downgraded to neutral from overweight by JP Morgan. The company was set to release its earnings report the following day.

Tuesday brought a gain of 1.11 percent to 6,500 for the IPC. Industrial group Alfa climbed 4.32 percent after issuing a strong earnings report. Televisa added 1.78 percent.

The IPC ticked up to 6,510 Wednesday. Retailer Elektra fared well, adding 1.75 percent, while Wal-Mart de Mexico climbed 1.32 percent.

In Chile, the IPSA index ended Thursday up 0.58 percent at 1,110 on general optimism about the country's economic outlook. Steelmaker CAP gained more than 11 percent on hopes or rising steel prices.

Friday saw an absolutely flat close in weak trade. On Monday, the IPSA rose 0.46 percent to 1,115 on hopes for good earnings reports from corporations. Flagship airline LanChile gained 6.9 percent, electricity company Endesa added 1 percent.

Tuesday saw the IPSA jump more than 2 percent to 1,139. Investors were buoyed by domestic news, including an unemployment rate that fell 0.6 percent to 8.2 percent for the January to March period, compared to the same time the previous year. Endesa added 3.7 percent.

Wednesday brought a nice 2.21 percent gain to 1,164 for the IPSA. Supermarket D&S climbed 6.6 percent.

Argentina's Merval index finished Thursday down 2.74 percent at 651.7. Investors were antsy ahead of the Sunday election, and some profit taking was to blame as the index hit five-year highs earlier in the week.

On Friday, the index bounced back, gaining 2.2 percent to 665.97 in light trade. Analysts said investors were bullish on the possibility of having two market-friendly candidates making into the country's second-round vote.

Monday brought investors the news that only one of the business-friendly candidates -- Menem -- made it to the second-round vote, sparking a loss of 8.6 percent to 608.5 for the Merval. Banks were hit hard, with Grupo Financiero Galicia shedding 13.7 percent and Banco Frances losing 12.9 percent.

Yet the Merval came back on Tuesday, climbing 2.3 percent to 622.5. Banks recovered somewhat, with Frances rising 2.8 percent and Banco Bansud rising 2.5 percent. Telecom Argentina gained 5.3 percent.

On Wednesday, the Merval gained 2.16 percent to 635.9. Steelmaker Acindar gained 9.6 percent, Banco Frances added 2.77 percent, and Telecom Argentina rose 5.69 percent.

In Venezuela, the IBC finished Thursday slightly up at 8,434, then lost to 8,403 Friday. Monday brought another loss to 8,363, before gaining nicely Tuesday to 8,620.

On Wednesday, the IBC ended slightly down at 8,631. Copyright © 2001-2003 United Press International   View printer-friendly version     Copyright © 2001-2003, by United Press International. All rights reserved. This material may not be republished, rebroadcast, rewritten, redistributed, resold or manipulated in any form.

Salt Lake Tribune April 30, 2003 By Kathy Stephenson The Salt Lake Tribune

    From the cold Jarritos fruit drinks on the beverage shelves to the prickly green nopales cactus paddles in the produce section, Michael Gallegos points to the foods of Mexico, which 20 years ago were unavailable in Utah.

    "Back then, there were two or three Hispanic markets in the whole state," said Gallegos, the Hispanic Marketing Specialist for SYSCO Intermountain Food Services. "Today there are close to a 100 from Brigham City to St. George."

    Utah is not yet California or Florida boasting of neighborhoods with a mercado (market) or panaderia (bakery) on every corner. But as the state's Latino population has grown during the past decade, so have the number of markets catering to those with Latin and Mexican tastes. Popularity probably will peak this week in anticipation of Cinco de Mayo celebrations Monday.

    The majority of markets in Salt Lake County and Ogden are geared toward residents of Mexican descent. However, most try to stock a few items particular to South American countries such as Argentina, Brazil, Chile and Venezuela, said Gallegos.

    The markets in Utah County, for example, take on more of that South American flavor, said Gallegos, as many residents served two-year missions in those countries for The Church of Jesus Christ of Latter-day Saints.

    One of the largest and busiest ethnic markets in Utah is Salt Lake City's Campos Market, which opened in 1994, just as Utah's Latino population boom went into overdrive.

    The store, at 800 South and 900 West, moves inventory at a high rate for a specialty store, selling about 60 cases of beef in a week and more than 20 cases of fresh chiles, said owner Jose Campos, who immigrated to the United States 25 years ago from Puebla, Mexico.

    Campos, 44, also owns markets in Ogden and Kearns as well as a Salt Lake City bakery.

    He opened the Salt Lake City market because family and friends had a difficult time finding authentic chiles, cheese and cuts of meat. "And because I needed some money," joked the usually reserved Campos, who worked in a California grocery chain for 14 years before following his wife to Utah in 1993.

    On a recent April morning, Gallegos took The Salt Lake Tribune on a tour of several area markets. We found Campos in a spring fiesta mode. Samba music thumped from the loud speakers and colorful pi-atas hung from the ceiling.

    At the meat counter, customers perused whole chickens and fish, spicy chorizo sausages, thinly-sliced ranchera steaks, and beef tripe, liver and hooves.

    "Remember, America is probably the only country in the world that doesn't use the whole animal for food," said Gallegos.

    Mangos, plantains, tomatillos and nopales make up a large portion of the produce section as do a half-dozen varieties of fresh chiles. Campos Market is all about chiles. In addition to the fresh chiles, there are dried and canned peppers in several varieties, from ancho and guajilla to arbol and pasilla.

    The remaining store aisles feature an assortment of beans, rice, salsas, sauces and pastes.

    Thirsty? The Jarritos brand of fruit-flavored drinks sits prominently in the beverage case along with non-alcoholic sangrias and other soda pop brands. There also are dozens of powdered mixes for making cold horchatas, a popular creamy rice-based drink.

    If that doesn't satisfy a sweet tooth, there are treats made from tamarind seeds, unrefined sugar cones called piloncillos and sour candies featuring Lucas, a sunglass-wearing cartoon duck beloved by children in Mexico.

    The tortilla shelves had been picked clean on this particular day, so Gallegos took our tour a few blocks north to La Diana Market and Tortilla Factory at 56 S. 900 West.

    Owner Raphael Gomez remembers when he opened the store in 1988. It was barely 500 square feet and his family lived in a small apartment in the back.

    Today, the store has expanded several times and includes a fresh meat case, produce, several aisles of groceries and a small counter where customers can get fresh tacos and pork carnitas.

    The tortilla factory has expanded at a more rapid pace. At first, tortillas were made by hand and sold to a few Salt Lake City stores and restaurants. Today, a large machine makes thousands of tortillas every day, which find their way to supermarket shelves in Utah, Idaho, Nevada and Wyoming.

    While the number of Latin markets has increased, the Gomez family said business has not been hurt by the competition.

    "More people are coming into Utah, so we see new customers every day," said Sergio Gomez, Raphael's son, who took over day-to-day operations of the business two years ago.

    The majority of customers are Latino, he said, but there are plenty of shoppers of other ethnicities who stop in regularly.

    While not every employee at Utah's Latin markets is fluent in English, there usually is someone in the store who speaks enough English to answer any questions shoppers may have.

    Hoping to capitalize on the Latino population growth, most large supermarkets have increased ethnic offerings in recent years. But hitting such ethnic aisles is not the same as making a trip to a Latin specialty market, said author Linda Bladholm, in Latin and Caribbean Grocery Stores Demystified (Renaissance Books, $16.95). The guidebook identifies and explains the uses Latin American herbs, chiles, fruits, sauces, meats, beans and beverages.

    "You miss the atmosphere, home-cooked snacks and the experiences of meeting people who will be glad to help you and share their culture and recipe tips," she said.

    kathys@sltrib.com        Chicken in Green Sauce (Jocon)     Pronounced ho-cone, this is a famous Guatemalan chicken dish.     2 chipotle chiles     2 small corn tortillas, toasted, chopped     2 (3- to 4-pound) fryer chickens, cut into 6 or 8 pieces each     Kosher salt, to taste     Freshly ground pepper to taste     1/4 cup canola oil     1 cup chicken stock     6 to 8 ripe tomatillos, papery husk removed, rinsed and cored     4 cloves garlic, sliced     1 cup cilantro, chopped     1 cup scallion greens, chopped     1/2 medium Spanish onion, diced     2 tablespoons toasted and ground pepitas     plain white rice

   Heat oven to 350 degrees. Toast the chipotles in a small skillet over medium heat, then soak in a bowl of warm water until soft, about 20 minutes. Drain and remove seeds and stems. Reserve.

    In the same dry skillet over medium heat, toast tortillas briefly on each side until fragrant. Chop and set aside.

    Season chicken with salt and pepper. Heat oil in a large ovenproof skillet over medium-high heat. When hot, add chicken in batches, skin side down. Sear about 2 minutes per side, until golden brown. Turn and brown on other side.

    Return all chicken to pan, transfer to oven and bake 30 minutes.     Meanwhile in a blender or food processor, puree tortillas with chipotles, chicken stock, tomatillos, garlic, cilantro, scallion greens, onion, and pumpkin seeds. Reserve.

    Remove skillet from oven and place on the stove over medium heat. Add the pureed sauce to skillet and simmer for 15 minutes, stirring occasionally. Season with salt and pepper. Serve over plain white rice. Makes 4 to 6 servings.

    -- "New World Kitchen: Latin American and Caribbean Cuisine" (Ecco, $34.95) by Norman Van Aken        Chilean Tomato and Sweet Onion Salad     1 medium Vidalia or other sweet onion, halved and thinly sliced     1 tablespoon sugar     6 large, ripe tomatoes, sliced about 1/2-inch thick     Salt     3 tablespoons olive oil     1 jalape-o chili, seeded and minced     3 tablespoons cilantro leaves, chopped

    Place onion slices in a bowl with sugar and cover with cold water. Soak 10 minutes, drain, rinse and pat dry with paper towels. Layer tomato, and onion slices on a plate or in a bowl. Season with salt to taste. Drizzle with olive oil. Garnish with jalape-o and cilantro. Makes 4 to 6 servings.

    -- "Latin and Caribbean Grocery Stores Demystified"    Peach and Chayote Salsa     2 chayotes, peeled     1 cup fresh orange juice     4 peaches, peeled, pitted and diced     1 cucumber, peeled, seeded and diced     2 tablespoons white balsamic vinegar     1/3 cup olive oil     2 teaspoons aji amarillo

    Cook the chayotes in simmering water for 25 minutes or until soft. Drain and cool to room temperature. Seed and dice. Meanwhile, bring orange juice to a simmer in a small saucepan. Cook for 5 to 7 minutes until reduced by half. Remove from heat and let cool to room temperature.

    In a large bowl, combine chayotes, peaches and cucumber. Add orange juice, vinegar, oil and aji. Stir to blend. Let sit for about 20 minutes before serving. Or cover and refrigerate for up to two days. Bring to room temperature before serving. Serve over grilled fish or a salad. Makes about 7 cups.

    -- "Nueva Salsa" (Chronicle Books, $16.95) by Rafael Palomino and Arlen Gargagliano

<a href=www.falkland-malvinas.com>Mercosur Wednesday, 30 April

Latinamerica economy is forecasted to grow 2% in 2003 given the improvement in world trade conditions, easier access to credit and the significant improvement of the Argentine economy, according to the latest release from the United Nations Economic Commission on Latinamerica, Cepal.

“Following a recessive cycle began in 2001 the region has retaken a moderate path of growth which should turn into a regional growth in the range of 2% for 2003”, reads the report from Cepal main office in Santiago de Chile.

However Cepal also points out that political and economic uncertainties persist, among which it mentions erratic oil prices and the meagre growth prospects in the industrialized countries.

The report stresses that access to money markets has improved given the drop in region-risk particularly since Brazil has kept to orthodox policies ensuring the sustainability of its foreign debt.

Argentina has performed better than expected and is forecasted to grow 4% in 2003, the highest of the region together with Peru.

At the other end is Venezuela where a 10% contraction of its GDP is anticipated and Uruguay and Paraguay that are still suffering the effects of the regional crisis and will experience a negative growth of 2 and 3%.

Brazil is expected to keep to its modest recovery reaching 1,8% in 2003 following the 1,5% of 2002. Brazil’s economy boost comes from exports because the domestic market will actually remain stagnant or suffer a modest contraction.

Prospects for other countries of the region are: Chile 3,5%; Colombia 2%; Mexico 2,4$, Nicaragua and Panama 1,5% and Bolivia and Ecuador 2%.

Finally Cepal indicates that in 2002 the regional economy contracted 0,6%, completing what is defined as “half a lost decade”, when per capita income in the region dropped significantly and the fast growing economies lost their dynamism.

By Elzio Barreto

Sao Paulo, April 29 (<a href=quote.bloomberg.com>Bloomberg) -- Brazil's currency rose from yesterday's eight-month high on optimism the government's sale of $1 billion in bonds shows increased confidence in the country's ability to pay its debts.

The currency rose as much as 1.9 percent to 2.9025 reais per dollar, its strongest level in almost nine months, and at 3:35 p.m. New York time, was trading at 2.9105. The real has gained 21 percent in 2003, the best performance among the 59 currencies tracked by Bloomberg. The Mexican and Chilean pesos strengthened.

Brazil sold $1 billion of bonds due Jan. 16, 2007, and was priced to yield 10.7 percent, according a spokesman for UBS Warburg LLC, which is managing the sale with Merrill Lynch & Co. Brazil is taking advantage of falling borrowing rates as investors gain confidence in its ability to pay its roughly $300 billion in debt.

The sale is important because it shows international markets believe in Brazil's credibility,'' said Carlos Gandolfo, a partner at Pioneer Corretora de Cambio SA, a Sao Paulo currency broker. There is a lot of talk that most of the bonds have been placed, which signals there is a lot of demand for the bonds.''

Also boosting the currency was the revision of the country's B+ credit rating to stable from negative by Standard & Poor's Rating Services, citing ``prospects fro a further strengthening of Brazil's fiscal position,'' S&P said in a statement.

Brazil's currency yesterday closed at its strongest level since Aug. 8 after central bank President Henrique Meirelles said the currency was still undervalued'' and we still have lots of room to see the currency appreciate.''

Exporters

Meirelles' comments damped investor concern the central bank might take steps to slow the real's appreciation against the dollar as a way to sustain export growth.

Following the central bank chief's comments, the bank said it won't renew a $429 million credit line to exporters that is maturing on May 5, on increased bond sales by banks and companies that are bringing U.S. dollars to the country.

The credit line was part of a $2 billion program the central bank set up last year to finance exports, as international banks such as Citigroup Inc. and FleetBoston Financial Corp. cut financing to Brazilian companies.

Not renewing the trade lines would pressure the exchange rate, but the recent good news and inflows are more than making up for that,'' Gandolfo said. The exchange rate is getting closer to year-ago levels, but it still has more room to gain.''

The real rose in the futures market. The U.S. dollar contract for May 1 settlement, the most traded on Sao Paulo's BM&F commodities and futures exchange, fell 1.5 percent to 2.919 reais to the dollar.

The country's benchmark 8 percent bond due 2014 climbed 0.25 cent on the dollar to 86.88, its highest level since October 1997, paring the yield to 11.28 percent.

Mexico

Mexico's peso rose to a four-month high after consumer confidence in the U.S. took its biggest monthly jump in 12 years, boosting the prospects for growth in world's largest economy and Mexico's biggest trading partner.

The peso rose as much as 0.8 percent to 10.2845 per dollar, its strongest level since reaching 10.25 per dollar on Dec. 30, and was recently exchanging hands at 10.2895. The peso has gained 9.5 percent since falling to a record low of 11.2644 on March 6.

Investors were buoyed by the New York-based Conference Board's report today that its consumer confidence index increased to 81 from 61.4 in March. The rise was the biggest since March 1991, the end of the previous war with Iraq, and well above the median forecast of 70 in a Bloomberg News survey of 62 analysts.

U.S. consumers buy 85 percent of Mexico's exports, representing a quarter of its $600 billion gross domestic product, while U.S. investors account for 70 percent of the direct foreign investment flowing into Latin America's largest economy.

Cone

Argentina's peso rose to near a one-year high reached last week, gaining 2.2 percent to 2.8050 per dollar, 1 centavo weaker than its intraday high of 2.7950 reached April 22. The currency last traded at a stronger level on April 17, 2002.

Chile's currency rose 0.3 percent to 706.15 per dollar and earlier reached 704.20, its strongest level since trading at 699.60 on Dec. 23, after the price of Chile's No. 1 export, copper, had it biggest one-day gain in two-weeks.

Andes

Colombia's peso rose rose 0.4 percent to 2,875 per dollar, paring its loss against the dollar in 2003 to 0.3 percent.

Peru's new sol rose 0.1 percent to 3.4595 per dollar.

Venezuela fixed its bolivar currency at 1,598 per dollar after it plunged to a record-low of 1,921.8. Last Updated: April 29, 2003 15:37 EDT

<a href=www.lapress.org>LatinAmerican press In brief

According to the Association of Families of the Disappeared and Detained in Colombia (ASFADDES), 5,372 people were detained or disappeared between 1977 and 2002.

In the last four years Venezuela has lost more than US$33 billion, the most costly flight of capital in the history of the country. Businesspeople blame the stampede on the policies of the government of President Hugo Chávez (LP, Jan. 15, 2003).

In Peru last year, there were 46,654 complaints of family violence, on average 148 a day. The figure was announced by the general prosecutor, Nelly Calderón during a visit by Diane Stuart, director of the US Department of Justice’s Office on Violence Against Women. Stuart said the Peruvian model, dedicating 154 prosecutors to the investigation of the abuse of women, adolescents and children, has been closely followed in the United States.

In 2002 alone, 25,000 undocumented people disappeared on the journey between Mexico and the United States. Of them, 10,000 were Salvadorian, according to an investigation by the daily La Jornada into the abuses inflicted on emigrants by the Mexican authorities.

Five wetlands in Cuba were incorporated into the Ramsar Convention, which guarantees the conservation and rational use of these ecosystems (LP, Sept. 24, 2001). The wetlands in question are Buena Vista, Ciénaga de Lanier and the southern part of the Isla de la Juventud, Gran Humedal de Ciego de Ávila, Delta del Cauto and Río Máximo. Ciénaga de Zapata was incorporated in 2001.

Charles Chaplin in Modern Times  Andrés Gaudin.  Apr 29, 2003

International Labor Day is marked by high unemployment, low union membership and a steady erosion of workers’ rights.

More than a century after the "Haymarket massacre" of May 1, 1886, in the US city of Chicago, which gave rise to International Labor Day and marked a milestone in the struggle for the labor rights gained in the 20th century, Latin American workers have fallen on hard times, with high unemployment and low union membership rates.

According to the International Labor Organization (ILO), 17 million urban workers in the region were unemployed last year. The situation could be even worse in rural areas, where no specific records are kept.

The fifth consecutive year of recession, exacerbated by a decade of free-market reforms, left the region with an average unemployment rate of 9.2 percent, the highest in the past 22 years. The workers who did have jobs received wages that were below the average for the previous five years, according to the ILO, while working conditions deteriorated. The average work day is now 10 hours or more.

Rubén Manusovich of the Federation of Chambers and Centers of Commerce of Argentina, a business organization, attributed the precariousness of the labor situation to increased tax pressure from governments seeking to finance budget deficits, as well as high public service fees, a lack of credit and high interest rates.

The greatest increase in urban unemployment between 2001 and last year was registered in Argentina, where it rose from 16.4 percent to 23 percent. This was followed by a 1.9-percent increase in Venezuela, to 15.8 percent; a 1.1-percent increase in Brazil, to 7.3 percent; and a 1.1-percent increase in Uruguay, to 16.5 percent. In the past, some of these countries had registered the region’s lowest unemployment rates.

At the other end of the scale were Ecuador, where unemployment decreased by 2.1 percent, and El Salvador, where the rate dropped by 0.8 percent. In Colombia and Chile, the jobless rates held steady at 16.8 percent and 9.3 percent, respectively. Those figures, however, disguise other social problems.

"Ecuador showed a drop in unemployment because of emigration and the large number of people who withdrew from the labor market. The same is true in Colombia," said Ricardo Cano, head of the ILO’s technical teams (LP, March 26, 2003).

The situation is different in Chile, where "measures have been applied that have stimulated the creation of jobs, particularly the use of contracted labor," according to an ILO report. In those cases, because the employee is not on the payroll, the employer avoids paying benefits such as insurance and social security, lowering labor costs (LP, Nov. 8, 1999).

Employers in Argentina and Uruguay are trying to adopt the same measures, which violate workers’ rights, according to Víctor de Genaro, leader of the Argentine Workers Organization (CTA). "It represents an enormous transfer of income to wealthy sectors, similar to what we have already seen with wage reductions and the privatization of the retirement system," he said.

Agustín Muñoz, regional ILO director, warned that the trend could have negative consequences.

"The increase in unemployment could destabilize a great consensus of the 1990s — the emphasis on the value of democracy," he said, echoing the results of a regional survey by the Chilean polling company Latinobarómetro, which found that people’s satisfaction with democracy as a form of government is directly related to their economic well-being (LP, March 26, 2003).

The employment crisis, which worsened throughout the 1990s, has also had an effect on labor organizing.

"Because they were afraid of losing their jobs or suffering other reprisals from their employers, many workers dropped their union membership, abandoning the organizations that defend their rights," Argentine labor leader Héctor Recalde said.

Between 1995 and 2000, union membership in the region fell from 21.1 percent to 19 percent, according to the ILO. The decrease was even greater in Central America, with the largest drop in El Salvador, where membership fell from 27 percent to 5.2 percent (LP, Oct. 9, 2000).

The increasingly precarious labor situation is also reflected in the growth of the informal sector, where workers have neither set working hours nor benefits. According to the ILO, the informal sector represents 51 percent of the Latin American economy, putting the region ahead of other parts of the world, including northern Africa, where the informal sector accounts for 48 percent of economic activity.

Although experts predicted that Peru would have the largest informal sector in Latin America, an ILO study of the past decade, which includes figures through 2000, placed Bolivia in first place, with 63 percent of the work force in the informal sector. This was followed by Brazil, with 60 percent; Honduras, with 58 percent; El Salvador, with 57 percent; Guatemala, with 56 percent; and Mexico, with 55 percent.

Peru does rank first in the informal sector’s contribution to the gross domestic product (GDP), at 49 percent, followed by Colombia, at 25 percent, and Mexico, where the informal sector represents 13 percent of GDP. The ILO study did not include agriculture, domestic labor or clandestine work connected with organized crime, such as the sex trade.

Child labor also contributes to the region’s grim outlook for workers at the start of the third millennium (LP, June 3, 2002). The ILO estimated that about 20 million children between ages 5 and 14 were working in the region at the end of last year. The largest number — at least 7 million — is in Brazil, according to the ILO.

There has been a dramatic increase in Uruguay, where child labor had been limited mainly to rural areas. In March, UNICEF announced that in the poorest 40 percent of the country’s households, children contributed 18 percent of their families’ income.

In urban areas of Ecuador and Colombia, 20 percent of girls between ages 10 and 14 are involved in domestic labor, according to Eduardo Araujo, who heads the ILO’s regional program. The problem has "the potential for growth" in all the region’s countries, especially in the increasingly impoverished Caribbean nations, he said.

Besides agriculture and domestic work, where child labor is traditionally concentrated, about 65,000 Latin American children are involved in small-scale traditional gold mining in Peru and Bolivia (LP, Nov. 19, 2001) and "many others are in worse situations, such as sex tourism, mainly in Brazil and Caribbean countries," according to the ILO (LP, Dec. 30, 2002).