Nicaragua Network

1. Nicaragua “graduates” from IMF programs
2. Law 779 amended to allow mediation
3. Panama comes to tentative understanding with Nicaragua over territorial waters
4. Chinchilla attacks Nicaragua at UN; Costa Rica asks World Court for new measures
5. United States: Conflict between Colombia and Nicaragua should be resolved peacefully
6. Olive Ridley Turtles arrive at last
7. Law to regulate organ transplants passed
8. Telica Volcano got noisy on September 26
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1. Nicaragua “graduates” from IMF programs

On Sept. 26, Central Bank President Alberto Guevara, speaking at a joint press conference with International Monetary Fund (IMF) representative Przemek Gajdeczka, said that Nicaragua had graduated from IMF programs but had asked the IMF to serve as an “advisor of confidence” to the government on macroeconomic topics.  In February of 2014, a Nicaraguan delegation will meet with the IMF in Washington to evaluate closing numbers from 2013 and update perspectives for 2014. Among the issues that will be addressed will be changes to Nicaragua’s social security pension system to assure its viability for the coming years.  A final plan is expected to be agreed upon by the end of this year.

Gajdeczka said, “Economic performance recently has been favorable.  Gross Domestic Product (GDP) growth in the last two years has averaged 5.3% while inflation has averaged 7.3%.  In 2012, the consolidated public sector deficit was 0.3% of GDP.  As a result of fiscal discipline, public debt was reduced from 45.7% of GDP in 2011 to 42.3% in 2012.”  He added that the balance of trade deficit was reduced from 13.2% of GDP in 2012 to 12.9% in 2012 with foreign currency reserves at a level equivalent to 3.5 months of imports.  According to Gajdeczka, Nicaragua’s macroeconomic perspectives for the short and medium term are favorable with an expected growth of 4.2% for 2013. 

Gajdeczka summarized by saying, “The [IMF] mission welcomes the recent prudent management of macroeconomic policies while at the same time emphasizing the need to concentrate efforts to reduce fiscal and external vulnerabilities.”  Among the “vulnerabilities” that he mentioned were the small pension that around 20,000 seniors who had not paid into social security long enough to receive full pensions were now receiving from the government and the small salary bonus paid to low wage government employees.  Gajdeczka said that the bonus, following suggestions from the IMF, has now been placed by the government under the national budget. The bonus goes to more than 160,000 public sector workers and was previously financed off budget by aid from Venezuela.  He noted that increased tax revenues have made possible the necessary budget adjustments.

Reaction among economists was generally favorable.  Carlos Muñiz, director of the Nicaraguan Foundation for Economic and Social Development (FUNIDES), said that he agreed with the favorable evaluation by the IMF of economic management the past few years. He did say, however, that “the good performance of recent years reflects not only the good economic management of the government but also an external environment that has been favorable in all aspects and that the scenario for 2013-15 is subject to risks due to the weak and volatile international situation and some internal uncertainties such as the short term impact of social security reform and a possible reduction in support from Venezuela.”  He also said that he was concerned that since Nicaragua [as an exporter of commodities] is so vulnerable to external shocks, it may have been too soon to speak of “graduation” from the IMF and it might have been better to have signed another program with the organization.  (Informe Pastran, Sept. 26, 30; La Prensa, Sept. 27; El Nuevo Diario, Sept. 26; Radio La Primerisima, Sept. 26)

2. Law 779 amended to allow mediation

On Sept.26, the bill before the National Assembly to amend the Law against Violence toward Women, known as Law 779, was amended to allow for mediation between a woman and her aggressor.  Under the law as originally passed, a case, once filed, went forward with no chance for mediation.  As amended, mediation is allowed in cases of “lesser injuries”, psychological mistreatment, and economic and workplace mistreatment if the victim agrees and the aggressor has not committed previous offenses.  The amendment was debated on the floor of the Assembly for two hours with the majority of the 18 deputies who spoke saying that they supported the amendment.  Opposition Deputy Pedro Joaquin Chamorro Barrios opened the debate saying that the law could mean that a man could go to jail for “psychological aggression or yelling without the possibility of saving his marriage.” Sandinista Deputy Edwin Castro said that “the objective of the law is to eradicate violence and not punish the greatest number of aggressors but rather decrease the number of aggressors.”  Opposition Deputy Maria Eugenia Sequeira said that the mediation could be positive when the woman is not pushed toward mediation but negative if she feels that she has to accept mediation.  Speaking against the amendment were Victor Hugo Tinoco and Enrique Saenz, both of the Sandinista Renovation Movement (MRS) and Wilfredo Navarro of the Constitutional Liberal Party (PLC).  Those three plus Jorge Castillo Quan, also of the PLC, voted against the measure.

Supreme Court President Alba Luz Ramos, seeming to indicate her own divided sentiments on the issue, suggested that “Women’s organizations should accompany women to prevent cases from going to mediation.” She added, “Within the amendment, it is clearly written that the judge must tell the woman that mediation is voluntary and ask her if she is being pressured by someone to accept mediation.”  She added that while the law won’t increase violent acts, it can’t completely prevent them either but should have some preventive effect.  Government spokesperson Rosario Murillo said that in answer to a proposal from the government’s social cabinet, President Daniel Ortega will increase the number of representatives of the Ministry of the Family to work in the Women’s Police Stations around the country to increase the national capacity to fight domestic violence and “promote affection, understanding, and harmony in our families.”  (El Nuevo Diario, Sept. 26; Radio La Primerisima, Sept. 25; La Prensa, Sept. 27)

3. Panama comes to tentative understanding with Nicaragua over territorial waters

Just a few hours after Panamanian President Ricardo Martinelli had spoken before the General Assembly of the United Nations expressing his “profound concern” and “categorical rejection” of Nicaragua’s ambition to extend its territorial waters and after having signed the previous week a letter written by the government of Colombia to Secretary General of the United Nations Ban Ki-Moon denouncing alleged Nicaraguan expansionism in the Caribbean, Panama announced on Sept. 25 that it had reached a verbal understanding with Nicaragua.  A note from the Panamanian Foreign Ministry stated that its differences with Nicaragua had been overcome during a meeting between Nicaragua’s Foreign Minister Samuel Santo and the Panamanian Foreign Minister Fernando Nuñez.  The note explained that the two nations will review Nicaragua’s petition to a United Nations agency “to expand its territorial waters without that aspiration affecting the territorial waters of Panama.”  Santos said, “Our application doesn’t affect Panama.  It won’t affect third countries.  In case of an overlap, we will find a formula for understanding with Panama just as we did with Jamaica.”

A World Court ruling on Nov. 19, 2012, gave the San Andres Archipelago to Colombia but assigned the surrounding waters to Nicaragua and advised the latter country of its right under international law to make a claim to the waters above its extensive continental shelf.  In June, Nicaragua presented a petition to the UN Commission on the Limits of the Continental Shelf to expand its waters 250 miles into the Caribbean and on Sept. 17, the World Court confirmed receipt of Nicaragua’s petition asking the Court to rule on the maritime boundary.  On Sept. 27, the Panamanian Foreign Ministry confirmed that a process of negotiations had begun on the issue of a possible overlap of waters and a Panamanian technical team was working to make sure Nicaraguan claims do not affect Panama’s rights.  (La Prensa, Sept. 25, 27; Informe Pastran, Sept. 27)

4. Chinchilla attacks Nicaragua at UN; Costa Rica asks World Court for new measures

Last week, Costa Rican President Laura Chinchilla, speaking at the General Assembly of the United Nations, accused Nicaragua of invading Costa Rican territory, of violating World Court precautionary measures, and of offering oil exploration concessions in Costa Rican waters.  At the same time, the government of Costa Rica petitioned the World Court for further precautionary measures to stop all dredging of the San Juan River by Nicaragua, which Nicaragua says it has clear treaty rights to do.  “The peoples of Nicaragua and Costa Rica want to live in peace,” she said, “but the Nicaraguan government is determined to prevent that.”

The case of the border along the San Juan River between Nicaragua and Costa Rica is before the World Court. The Court issued a request in the form of a precautionary measure to both parties to refrain from sending government personnel to the area in dispute, a small triangle of swamp called Harbour Head at the mouth of the River, while a resolution of the issue is pending.  Costa Rica maintains that the groups of young environmentalists from Nicaragua who visit Harbour Head are organized and financed by the Nicaraguan government in violation of the World Court request.  The World Court has combined into one case the demand from Costa Rica about Harbour Head and the dredging of the river along with a demand from Nicaragua about environmental damage from a roughly built road along the Costa Rican side of the river.

In related news, speaking on the Costa Rican television network REPRETEL, Jose Fabio Pizzaro, described as an expert in “police interventions,” said that in the mountains of that country an army is being trained “in case the Nicaraguan army takes over more Costa Rican territory.” REPRETEL reported that according to Pizzaro this fighting body would be available to the government because “the idea of a possible invasion from Nicaragua is not out of the question in the minds of the experts.”  Pizzaro called on students, housewives, and professionals who were willing to risk their lives for Costa Rica to join in numbers he hoped would reach 4,000.  Costa Rican Foreign Minister Enrique Castillo has in recent days spoken of the country’s need for an army.  [Costa Rica’s Civil Guard has a budget that matches that of Nicaragua’s Army.]

Nicaraguan President Daniel Ortega reacted by saying, “We are ready to dialogue with Costa Rica to overcome this situation that they have presented. … We insist with Costa Rica on dialogue, not confrontation.  I believe that it is mistaken to question Costa Rica’s right to again have an army, or give legal status to the army that they have which really is an army.”  However, Chinchilla said, “I don’t respond to those things” and Foreign Minister Castillo said the call for dialogue was a “publicity stunt.” (El Nuevo Diario, Sept. 24; Informe Pastran, Sept. 30)

5. United States: Conflict between Colombia and Nicaragua should be resolved peacefully

Referring to the differences over territorial limits between Nicaragua and Colombia, United States Ambassador to Nicaragua Phyllis Powers said last week, “This is a bilateral issue.  My government is confident that the two governments are going to resolve this problem in a pacific manner, under international law.”  She said that it was good that both countries are carrying out their own actions in order to resolve the situation since all countries who use the International Court of Justice have their own understanding of what that means. [This was a less than forceful statement of support for the Court and for international law and could be taken as a reference to the United States’ violation in recent decades of Court rulings].  Powers added that the government of the United States is observing the situation but does not have a direct interest in the issue.(Radio La Primerisima, Sept. 24; El Nuevo Diario, Sept. 24)

6. Olive Ridley Turtles arrive at last

The Ministry of the Environment and Natural Resources (MARENA) announced that 35,087 endangered Olive Ridley sea turtles have arrived at their nesting grounds in the Chacocente and La Flor Wildlife Refuges. Yeffer Cruz, technical director of Chacocente said that, “Yes, there was a delay.  Obviously climate change delayed the arrival; fishing with explosives also had an effect, but they are arriving massively as they do every year.”  Indeed he said that little by little the numbers are increasing due to conservation and enforcement measures. He noted, “In 2000, 26,000 turtles arrived and now there are many more.” MARENA delegate for the Department of Rivas Mario Jose Rodriguez said that an inter-agency cooperation plan for protection of the turtles includes roadblocks at strategic points in the region to inspect vehicles and confiscate eggs. Volunteers walk the turtle nesting grounds to prevent theft of the eggs. Law enforcement officials patrol the bars and restaurants to prevent the sale of turtle eggs which many people consider a delicacy. (El Nuevo Diario, Sept. 30)

7. Law to regulate organ transplants passed

The National Assembly passed, with 89 votes in favor and one abstention, the Law of Donation and Transplant of Organs and Tissues with penalties of up to 10 years in prison for organ traffickers and the cancellation of professional licenses of health care providers who violate medical ethics concerning organ donation. The law is designed to make it possible for patients without economic resources to receive a transplant, to stop organ tourism, and provide a legal framework for doctors who have been performing organ transplants. The law also spells out administrative and financial sanctions for public and private hospitals that participate in illegal transplants. The law was passed after almost three years of discussion among interested sectors.

The law will allow organ transplants from living donors (for example kidney donors) exclusively between people who are legally related.  This is intended to close the door to organ trafficking which, according to Assembly Deputy Arlyn Alonso, has been a reality in Nicaragua. In the case of deceased donors, the donor must have authorized the donation or a family member may give permission for organ donation at the time of death.  Alonso noted that Nicaragua currently lacks a “culture of organ donation” and health officials need to begin to inform the public so that consciousness can be developed. The law nullifies any agreement that is not “conceived with the principle of voluntarism, altruism, and gratuitousness” meaning that sale or purchase of organs, even between family members, is prohibited. At the present time in Nicaragua, the only transplants that have been performed are kidney and cornea transplants. (El Nuevo Diario, Sept. 29; La Prensa, Sept. 27)

8. Telica Volcano got noisy on September 26

Telica, Nicaragua’s most active volcano located in the Department of Leon, had three explosive eruptions of gas and ash on Sept. 26 and the temperature inside the volcano reached 1058°F. Civil Defense authorities have not issued an alert but are maintaining vigilance and have communicated with the five communities closest to the volcano. They are Las Quemadas, El Caracol, San Pedro Nuevo, El Ojo Chal del Listón, Aguas Frías y Caserío de lasJoyas. Over 1,200 people live within seven kilometers of the volcano. Marbely Miranda, mayor of the town of Telica, said that the local committee for the prevention of disasters had been alerted and that citizens knew the evacuation routes to take if necessary. By the following day temperatures in the caldera had fallen below levels of concern. (La Prensa, Sept. 27; El Nuevo Diario, Sept. 26)