TUESDAY, OCTOBER 23, 2007
Nicaragua Network Hotline (October 23, 2007)
Topics covered in this hotline include:1. Ortega declares state of National Disaster after another week of torrential rains
2. Venezuela to help create Plan Sandino for devastated areas
3. Government presents 2008 budget proposal
4. Health workers demand more budget for salaries and medicines
Topic 1: Ortega declares state of National Disaster after another week of torrential rains
On Oct. 19 President Daniel Ortega declared a state of National Disaster after receiving preliminary reports from the System of Prevention and Mitigation of Disasters (SINAPRED) and the Civil Defense arm of the military on the damage caused by the most recent torrential rains to hit the country. “We are confronted by a situation of national emergency,” said Ortega who described the damages caused by the recent natural disasters to have struck Nicaragua as “incalculable.”
The torrential rains which have characterized the last month and a half in Nicaragua continued to fall over much of national territory last week, exacerbating the situation in the already devastated regions of the Northern Atlantic Autonomous Region (RAAN) and the departments of Chinandega and Leon (in the North Pacific part of the country) and causing devastating flooding the highlands department of Matagalpa.
On Oct. 17 the River Grande of Matagalpa overflowed its banks, flooding much of the city of Matagalpa and nearby communities and practically doing away with two whole neighborhoods. As a result of the flooding in the Matagalpa region five people were reported dead, two missing, 837 houses partially or totally destroyed and 342 miles of road damaged.
At a press conference on Oct. 22 SINAPRED, the military Civil Defense and the Ministry of Infrastructure gave preliminary reports about the damage caused by the latest rains while summarizing the damage that occurred as the result of the three natural disasters (Hurricane Felix and tropical depressions numbers 35 and 36) which have affected Nicaragua during the last 47 days since Hurricane Felix struck the RAAN on Sept. 4.
Mario Perez-Cassar, head of Civil Defense, explained that besides the situation in the RAAN where over 65% of the population was been severely affected by Hurricane Felix on Sept. 4, the northern pacific departments of Leon and Chinandega were affected by torrential rains between Oct. 8 and Oct. 16 where over 24 inches of rain fell in just six days. Between Sept. 14 and Oct. 22, the following municipalities were affected: Managua, San Francisco Libre, Granada, Masaya, Esteli, San Juan de Limay, San Nicolas, San Jose de Cusmapa and Rivas.
In summary, damages during the last 47 days are as follows: 216,000 people (37,287 families) directly affected, 109 dead and 135 missing, 22,000 houses partially or totally destroyed, 150 public buildings (schools, health centers and churches) destroyed, 255,000 acres of crops lost, 45,000 cattle lost, 1.7 million acres of forest destroyed, 9 bridges destroyed and 1,864 miles of road damaged. The authorities have also warned that there is a very high risk of landslides should the rains continue and of forest fires in the downed forest toward the end of the next dry season.
If you would like to make a donation to help victims of these disasters, visit the Nicaragua Network web page at www.nicanet.org.
Topic 2: Venezuela to help create Plan Sandino for devastated areas
After the System of Prevention and Mitigation of Disasters (SINAPRED), Civil Defense and the Ministry of Transportation and Infrastructure presented preliminary reports on the damage caused by the most recent bouts of torrential rains at a press conference on Oct. 22, national TV channels and radio stations broadcast a live phone conversation between President Daniel Ortega and President Hugo Chavez of Venezuela.
During the conversation Chavez spoke of his idea to create a special Plan Sandino within the Bolivarian Alternative for the Americas (ALBA) which would bring immediate relief and long term rehabilitation to the areas devastated by recent natural disasters in Nicaragua. Chavez said he hoped the idea would be converted into an “integral rehabilitation plan” which would include the reconstruction of highways, roads, housing and the rehabilitation of agricultural zones as well as immediate food aid. “We must go beyond aid,” said Chavez, who sent a delegation of Venezuelan public officials including the Foreign Minister Nicolas Maduro and Vice Foreign Minister Edith Gomez as well as members of the Venezuelan military and representatives of the Ministry of Housing.
“I told Nicolas [Maduro] to explain to you [Ortega] my idea of a sort of special Plan Sandino ... which, with funding from the ALBA bank [probably a reference to the Venezuelan National Social and Economic Development Bank (BANDES) which already has a branch in Managua], would facilitate the arrival of human, financial, technological and machinery in Nicaragua along with our hands and our hearts. ... Under your [Ortega's] direction, I asked Nicolas to produce a plan of short, medium and long term” solutions to the national disaster.
Ortega, who identified food and the provision of temporary shelter as the most urgent necessities, described Chavez' offer of support as a “truly historic event.” For the first time in Nicaraguan history, said Ortega, the president of a foreign nation has offered to incorporate the efforts of his government into a plan of rehabilitation on this scale.
Topic 3: Government presents 2008 budget proposal
On Oct. 15 the executive branch presented its 2008 budget to the National Assembly. Total government income was estimated at US$1.2 billion and total government expenditure at US$1.5 billion (US$213.9 million more than in 2007). The deficit of US$295.5 million would be covered by international loans and donations. The government predicts economic growth of 4.5% for 2008 and an inflation rate of 8%. Public Finance Minister Alberto Guevara said the budget proposal has a “profound social emphasis” with 62% of government spending directed towards social sectors.
The executive branch proposed to continue to service the controversial internal debt made up of the Certificates of Negotiated Investments (CENIS) and compensation payments for those who had land and property confiscated during the 1980s. In the budget proposal, US$130 million would go towards compensation payments while US$48 million would go towards servicing the CENIS. Meanwhile, US$44.27 million would be directed towards the payment of the foreign debt.
The budget proposal contemplates a 17% reduction in presidential expenditure from US$218 million in 2007 to US$180 million in 2008. The education budget would increase from US$207.55 million in 2007 to US$234 million in 2008, while the health budget would increase from US$221 million to US$245 million. The budget also contemplates hiring 1,500 new teachers, 600 new health workers and 500 new police officers. A pay raise of 12% for health workers, teachers, police officers and soldiers is also proposed within the 2008 budget.
The budget assigned for the government's Zero Hunger Program would increase from US$10 million to US$15 million for next year while the budget for the Zero Usury Program would increase from US$2.3 million to US$5 million. The amount of US$2 million dollars is allotted to the much anticipated Development Bank. The budget plan also proposes that the constitutionally assigned 6% for universities, 4% for the Supreme Court and 7% for municipalities be respected, something which past governments have failed to do. The budget plan should be approved, modified or rejected by the National Assembly in December.
However, economist Adolfo Acevedo criticized the government for proposing to continue to service the internal debt. He asked, “Why hasn't Ortega ordered Attorney General Hernan Estrada to take the necessary legal action based on the Comptroller General's declaration that the CENIS debt is illicit?” While Acevedo admitted that there are “new things” which give a more social emphasis to the budget, he said that the budget proposal does not change the economic logic of the Bolaños administration.
On Oct. 18 Public Finance Minister Alberto Guevara responded that a renegotiation of the debt was being discussed between the government and representatives of the private banks, but that as public finance minister he cannot unilaterally decide to stop servicing the debt.
Sandinista Party and vice-chair of the National Assembly economics committee Walmaro Gutierrez defended the budget because is it “the beginning” of a move towards more “humane” budget policies. Gutierrez said that it is impossible to overcome the enormous social deficit created during the last 16 years from one day to the next.
On Oct. 19 President Ortega called on private bankers to participate in a “rapid renegotiation of the internal debt” in order to “liberate funds for the national reconstruction necessary after the last 50 days of devastating rains.” Ortega said that the government is currently in conversations with representatives of private banks and is pushing not only for long term restructuring of the debt but also for a reduction in interest rates.
Topic 4: Health workers demand more budget for salaries and medicines
Thousands of health workers affiliated with the Federation of Health Workers (FETSALUD) marched in Managua on Oct. 17 to demand a higher budget for the health sector. The FETSALUD demand includes an extra US$47.2 million for health, 50% of which would be used for a 25.5% pay raise for all workers, while the other 50% would be used to buy medicines and medical equipment. FETSALUD proposes that, instead of paying US$48 million to service what they call the “illicit” CENIS debt, the government allocate this money to health and education.
General Secretary of FETSALUD and Sandinista party Deputy Gustavo Porras said that the members of the health workers union have been obliged to come out on the streets to protest against a budget which prioritizes the payment of an “illegal” debt over medicines for the population and salaries for doctors and nurses.
Currently a general practitioner in Nicaragua earns a basic salary of US$250 a month [for five hours a day at a government clinic]. The government budget proposal for 2008 contemplates a 12% pay raise for health workers. The basic basket of essential consumer goods for a family of four is currently valued at US$346 a month.
This hotline is prepared from the Nicaragua News Service and other sources. To receive a more extensive weekly summary of the news from Nicaragua by e-mail or postal service, send a check for $60.00 to Nicaragua Network, 1247 E St., SE, Washington, DC 20003. We can be reached by phone at 202-544-9355. Our web site is: www.nicanet.org. To subscribe to the Hotline, send an e-mail to nicanet@afgj.org
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