Nicaragua Network

1. Colombia formally rejects November 2012 World Court ruling
2. Private sector and government confirm alliance
3. Donor nations shifting Nicaragua aid to poorer nations
4. Housing construction slows but affordable housing remains priority
5. Government to honor historic debt to the Social Security Institute
6. Drunk driving penalties to be increased
7. Nicaraguans oppose US military strike on Syria
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1. Colombia formally rejects November 2012 World Court ruling

On Sept. 9, in a televised address, Colombian President Juan Manuel Santos announced that the Nov. 19, 2012, ruling of the International Court of Justice at The Hague (World Court) is inapplicable and will not be applicable until and unless it protects the rights of Colombians and accords with the Colombian constitution, adding that without a treaty with Nicaragua to that effect his government will not recognize it.  The 2012 decision, while it gave Colombia the islands of the San Andres Archipelago, gave Nicaragua most of the surrounding waters and opened to Nicaragua the possibility of expanding its territorial waters to the fullest extent of its continental shelf.   Santos said that the islands of San Andres, Santa Catalina, Roncador, Quitasueño, Serrania and others each have their surrounding 12 nautical miles of territorial waters which cannot remain isolated from Colombian waters.  Therefore, he said, Colombia will ask the Court to clarify and rectify its decision.  He said that together with other countries that are neighbors of Nicaragua, such as Panama, Costa Rica, and Jamaica, Colombia will send a letter of protest to the Secretary General of the United Nations stating that the Court’s ruling ignores treaties establishing maritime boundaries of these countries and for that reason is not enforceable.

Santos stated that Colombia would defend its territorial waters “to the ultimate consequences.”  He accused Nicaragua of having expansionist ambitions in petitioning the United Nations Commission on the Limits of the Continental Shelf (CLCS) to extend its territorial waters to include its continental shelf.  In a decree released by Santos’ government, Colombia maintains that its continental platform is continuous from the island of San Andres to the Colombian port of Cartagena and that the border between Nicaraguan and Colombian waters is the 82 meridian west longitude, in direct contradiction to the World Court ruling. (On Sept. 4 an armed patrol boat was launched at Cartagena and sent to the 82° meridian.) Santos said that with relation to the UNESCO Seaflower Biosphere Maritime Reserve, part of which lies in what the Court said were Nicaraguan territorial waters, Colombia will “use all legal and diplomatic means to reaffirm [the] protection of the area where our fishermen have fished for centuries.”

On Sept. 2, President Daniel Ortega, in a speech marking the 34^th anniversary of the formation of the Nicaraguan Army, had said, “We propose to President Juan Manuel Santos that we work to form a Colombian-Nicaraguan commission to put together a treaty that permits us to respect and put into practice the ruling of the International Court of Justice.” He said that the Nicaraguan Army’s naval force was patrolling the waters granted to Nicaragua by the ruling.  But, he said, “This army is a small army that is not as powerful as the army of Colombia and doesn’t have the naval power that Colombia has, but it is an army of heroes…, that carries in its veins the conscience and example of Diriangen, Andres Castro, … of Sandino, of Carlos Fonseca.  It is an army that has its origins in our national identity and which has enormous moral strength and I am not going to make comparisons with the moral strength that the Colombian army might have” [in a not-so-subtle reference to the Colombian army’s involvement in massive human rights violations and displacements of populations].   

The Colombian magazine Semana noted that an outside observer might think that Ortega’s proposal was a good way out of the controversy “clarifying once and for all the limits by means of a treaty.” But, for the Colombian government the ruling is still too recent, “the wound is still open and the government is in full blown reelection campaign.”  Nicaraguan government communications coordinator Rosario Murillo announced that President Ortega would address the Nicaraguan people about the Colombian decision on the night of Sept. 10. (Informe Pastran, Sept. 4, 9; El Nuevo Diario, Sept. 3; Radio La Primerisima, Sept. 2, 6, 9, 10)

2. Private sector and government confirm alliance

On Sept. 4, President Daniel Ortega met with representatives of the business community in a gathering that, along with the statements coming out of Colombia, dominated the week’s news.  Ortega proposed institutionalizing the model of alliances between the government and the business community to guarantee the continuity of the policies needed to overcome the economic and social problems still confronting Nicaragua.  “It would be a challenge,” he said, “because we would be the first country to institutionalize this model.”  The business leaders recognized that the Ortega government has fulfilled the commitments it has made to the private sector and lauded the public-private cooperation that has resulted.

Julio Herrera, an investor from Guatemala who has worked 15 years in Nicaragua, said, “I believe that this is an example of leadership that we need in all of Central America… because the only way that things function is with a public-private alliance.  The private sector alone can’t do it all nor can the public sector and what we need is a future that follows this example of constructive dialogue, … fighting poverty, educating the population, and working so that the nutrition and health of all continue to improve.”  In closing the event, Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), laid out the “great themes that we must prioritize.” He said they were “productivity; education and the alliance that there needs to be between the private sector and the education sector with the government on education; the theme of formalization that must be translated into more employment for our population, more jobs in the formal sector.”

There was strong criticism from the political parties.  National Assembly Deputy Enrique Saenz of the Sandinista Renovation Movement (MRS) said that “Both sectors coincide on a model that produces underemployment, migration, and impoverishment on the one hand and multimillionaires on the other.  Oligarchies throughout history have shown that their interest is in accumulating money and power.  Liberty, democracy, and the rule of law for them have always been unnecessary adornments.” The opposition daily La Prensa was more balanced.  An editorial on Sept. 6 said that the alliance between the government and the private sector had begun under President Violeta Chamorro and the writer complained that the President had not made clear if he had abandoned revolutionary socialism or if he had replaced it with “socialist capitalism” or with “capitalist socialism.”  But, the editorial added, “Without a doubt it is beneficial for private business and for the country that the accord between the top businesspeople and the government be extended and consolidated.  The truth is that if it were not for that [alliance] the country would be worse off than it is and we would not be enjoying the successful economic situation that, according to the businesspeople and the government, exists currently in the country.” (Informe Pastran, Sept. 5; Radio La Primerisima, Sept. 5; La Prensa, Sept. 6)

3. Donor nations shifting Nicaragua aid to poorer nations

This year Nicaragua will receive the lowest level of international donations in 19 years--US$15.9 million—from donor countries, down from US$48.4 million in 2012. Reina Buijs, trade secretary of the Embassy of the Netherlands, said, “Nicaragua is a middle-income country, although low, and we’ve made a decision to focus aid on poorer countries.” She said her country was shifting its foreign aid from the 33 countries it has supported to 15, “the poorest in the world.” Nicaragua’s economic growth last year was 5.2% and in the first half of 2013 the Gross Domestic Product has surpassed US$11 billion according to the Central Bank. International aid has fallen by 67.1% this year over last year.  Holland has shifted from providing aid to individual states in Central America to a regional program funded with 15 million euros. Nicaragua is included in that program.  Finland also announced that it was shifting its 10 million euros in international aid to poorer countries. Eeva-Lissa Myllymaaki, trade secretary for the Embassy of Finland said, “Nicaragua is considered a middle level country...the economy has improved and there are many plans for investment.” The Economic Commission for Latin America and the Caribbean (CEPAL) projects that Nicaragua will continue economic growth of 5% in 2013. (El Nuevo Diario, Sept. 5)

4. Housing construction slows but affordable housing remains priority

Nicaragua’s construction industry has fallen off this year with only 2.1% growth compared to last year’s phenomenal growth of 29.5%. The drop has resulted in a loss of 2,300 construction jobs. The main loss has been in the residential market with the exhaustion of the government’s fund to subsidize low income mortgages in the affordable sector. The Sandinista government has invested nearly US$20.6 million on the construction and improvement on affordable housing since 2007 which translates into 45,000 homes built by private capital with mortgages subsidized by the government. Nicaragua has a historical housing deficit estimated at 700,000 houses and which would require annual construction of 25,000 homes.

For the period of 2013-2016 the government has budgeted for construction of between 14,000 and 22,000 affordable houses annually with the number increasing each year. The government projects will spend US$47 million of which US$43 million will be funded by foreign loans and donations. "The goal is to restore access to dignified, comfortable, and safe housing to poor families," according to a government report. The same report said, "The goal is to assist low and middle-income families to acquire, improve or rehabilitate 77,800 homes, an annual average of 15,600 houses." It also intends to supply galvanized roofing panels to 750,000 families as part of the Plan Roof program from 2012 to 2016. Seventy percent of housing sales are in the affordable housing sector. (El Nuevo Diario, Sept. 9)

5. Government to honor historic debt to the Social Security Institute

On Sept. 6, presidential economic advisor Bayardo Arce announced that the government would begin making payments to the Nicaraguan Institute for Social Security (INSS) in 2014 to pay off the debt run up over past decades since 1957.  Arce presented the government’s new Economic and Financial Program for the years 2013-2016 at a seminar on growth and productivity at the Central Bank.  He said that both workers and employers should also prepare themselves to pay in more to Social Security in coming years in order to help achieve long term sustainability for the pension system.  Arce speculated that the government’s debt to the Social Security fund could be as much as between US$580 and US$600 million.  “This is one of the proposals that the businesspeople put forward at the meeting with the president,” Arce said, explaining that “the reforms to Social Security and the financial salvation of the INSS had to be shared among the three—government, workers and employers.”  Arce said that the exact amount of the increase in worker and employer contributions would be settled “at the negotiation table.” 

Union leader Luis Barbosa of the CST-JBE said that union members were willing to accept an increase in contributions given that the government had dropped initial proposals to increase the number of years a worker had to pay into the system and also to increase the retirement age.  However, leaders of the National Workers Front (FNT) on Sept. 9 reiterated their opposition to any hike in the contributions of workers.  Gustavo Porras said, “We want to make clear the position of the FNT and of all the workers in the country which is that you can’t raise the INSS quota from the current 6.25% to 9% or whatever.”  One proposal that had been put forward by the unions was that the contributions should be progressive with those who earn more paying a higher percentage.

Social security expert Manuel Israel Ruiz said that he considered that the government could pay back its debt to the INSS over the next 20 years at a rate of 5%. However, Informe Pastran noted that the time period in question covers the Managua earthquake of 1972, the war against the Somoza dictatorship, and then the war against the contras and the United States, all of which caused enormous economic upheaval.  “The government of Nicaragua must clarify from when and for how much is the debt to the INSS that it is willing to honor because all are reporting that it will pay the historic debt of US$600 million which it does not have the capacity to do,” noted the Informe Pastran.  (La Prensa, Sept. 6, 8, 9; El Nuevo Diario, Sept. 7; Radio La Primerisima, Sept. 9)

6. Drunk driving penalties to be increased

National Police Chief Aminta Granera announced that the police are going to take “strong measures” against drunk drivers, including jail time. Her announcement came as the National Assembly is considering revisions to the Vehicle and Moving Infractions Law. The police are recommending drunken driving penalties of up to one year in jail and up to US$100 in fines. The police are also recommending a tax on liquor sales. Presidential Economic advisor Bayardo Arce said he “wasn’t very happy with” the tax proposal because people will continue to drink, just buying cheaper liquor. Granera said that Nicaragua has 11 traffic deaths per 100,000 people which, while alarming, is below the 16.1 deaths overall in Latin America.

The National Police reported in the first half of 2013, 1,824 automobile accidents and 292 fatalities.  National Assembly Deputy Filiberto Rodriguez, chair of the Committee on Governance, said he was not in favor of jail time but rather requiring alcohol rehabilitation programs and visible community service such as sweeping streets as penalties. He also said changes to the law will include better regulation of motorcycles. “We’re not going to permit them to travel 3 to 4 on a motorcycle.” He cited the high number of women and children injured in motorcycle accidents.  (Radio La Primerisma, Sept. 3; El Nuevo Diario, Sept. 3; La Prensa, Sept. 4)

7. Nicaraguans oppose US military strike on Syria

Over 100 Nicaraguans and North Americans rallied at the US Embassy on Sept. 6 to demand that the US not attack Syria. The demonstration was organized by the “Another World is Possible” Nicaraguan Social Movement (MSN), the Ecumenical Committee of English Speaking Religious People (CEPRHI), the Unitary Federation of Nicaraguan Food Workers (FUTATSCON), and others. The MSN press statement said that millions of people in the world “cry out for peace and reject any military interference or intervention in the conflict in Syria or the Middle East.” A FUTATSCON statement called for conflicts to be resolved by diplomatic means “as demanded by the civilized governments in the world” including the countries of the Bolivarian Alliance for the Peoples of Our America (ALBA).  Marcial Cabrera of FUTATSCON and Nan McCurdy of CEPRHI said that a US attack on Syria would definitively end whatever legitimacy the United Nations retains as an organization where decisions are made by a few countries.

The next day the Nicaraguan Catholic Church hierarchy responded to a call by Pope Francis for an international day of prayer for peace in Syria. Catholic church doors were open for prayer and priests led services for peace. Radio Catolica carried the Pope’s address live from Rome. Cardinal Miguel Obando y Bravo, at the cathedral in Managua, said, “The Church fights for peace with prayer...” and Archbishop of Managua Leopoldo Brenes said, “We want a world of peace, not more war.” (Radio La Primerisima, Sept. 7; El Nuevo Diario, Sept. 7)