Networked Notes - 28 June 2016

A slew of over-reaching analyses have been written about the impact of Brexit on Latin America specifically and on emerging markets in general. While the UK’s decision to leave the EU certainly impacts the region in a limited fashion, Latin American governments have taken note of the media attention and are prepared to make Brexit a great scapegoat for their ongoing economic problems for at least the next quarter. Mexico announced pre-planned budget cuts, including some controversial cuts in education, the day the UK voted to leave. Argentine officials are happy Brexit artificially weakened the peso. At least one official in Venezuela made the ridiculous suggestion that Brexit was part of the economic plot against the Maduro government. Expect to see additional Latin American governments in the coming weeks point their fingers at the UK and Europe.

Oaxaca’s Governor’s Race: Fractured Parties & Alliances

The Partido Revolucionario Institucional (PRI) is fighting to return Oaxaca to its control after the PRD disrupted its 80 year streak in 2010. The PRI has allied with Nueva Alianza and Verde Ecologista de México (PVEM) under PRI candidate Alejandro Murat Hinojosa. Murat left the directorship of the Instituto del Fondo Nacional para la Vivienda de los Trabajadores (Infonavit) to follow in his father’s footsteps -- José Murat Casab was the former Oaxaca Governor -- and seek the state governorship. Murat has accused the current Cue administration of lying with its failed public policies, leaving Oaxacans without access to healthcare, sewage, and electricity. Murat promises to bring transparency and accountability to spending and focus on public policies that come from the public.