TUESDAY, MARCH 04, 2008
Nicaragua Network Hotline (March 4, 2008)
Topics covered in this hotline include:1. IMF mission begins two weeks of meetings with government
2. Montealegre to run as PLC candidate for mayor of Managua
3. Ortega condemns Colombian cross border attack in Ecuador
4. UN warns of nutritional crisis in Central America due to soaring food prices
5. Group demands that Supreme Court rules on constitutionality of abortion ban
Topic 1: IMF mission begins two weeks of meetings with government
On Feb. 25 an International Monetary Fund (IMF) delegation began a two week review of the three year economic agreement the organization signed with the Nicaraguan government last year. During the week the IMF representatives made very few comments to the press. On Feb. 27, however, the IMF spokesperson did say that the government's “macroeconomic policy continues to be sound.”
On Feb. 26 over 2,000 health workers, teachers and other public sector workers protested outside the Central Bank where government representatives and the IMF delegation were meeting. Protestors condemned IMF intervention in government economic decisions, specifically in decisions concerning public sector pay. “IMF out [of Nicaragua]” shouted the workers, who belonged to Sandinista affiliated labor unions including the Federation of Health Workers (FETSALUD), the Association of Nicaraguan Teachers (ANDEN) and the National Workers Front (FNT).
IMF conditions would restrict public sector workers pay raises to 12%. According to Bayardo Arce, presidential economic advisor, the IMF delegation has expressed its “concern” about the recently announced increase of public health and education workers' pay from 12% to 16%. The leaders of FETSALUD, ANDEN and FNT said that only a 30% plus pay raise would keep pace with inflation.
On Feb. 27 the government presented the IMF delegation with a detailed report about the economic cooperation with Venezuela, including the importation of Venezuelan oil under preferential payment conditions, which is not included within the National Budget. According to Central Bank President Antenor Rosales the government was completely open about the economic cooperation between the two countries. Arce said that the IMF mission was worried that Venezuela cooperation could cause inflation unless it is included in the budget. He said the government did not agree.
On Feb. 28 Rosales announced that, in line with IMF recommendations, the government plans to restrict the money supply in order to combat inflation. Rosales said that the government aims to avoid inflation creeping into double figures during 2008 and that restricting the amount of money in circulation, along with other measures, will help to do this by increasing the government's ability to sell bonds. Some economic analysts, however, fear that the measure will reduce trade and therefore increase unemployment.
Topic 2: Montealegre to run as PLC candidate for mayor of Managua
Proving once again that a week is a lifetime in Nicaraguan politics, Eduardo Montealegre confounded analysts (who only last week had written his political obituary) by accepting the nomination of a new alliance led by the Constitutional Liberal Party (PLC) for Mayor of Managua. Montealegre, who was the Nicaragua Liberal Alliance (ALN) standard bearer and anti-pact champion in the 2006 presidential election and the favored candidate of the US government, lost the leadership of his own party due to a ruling by the Supreme Electoral Council the previous week.
A lot of behind the scenes maneuvering took place to meet the Mar. 3 deadline for political parties to register their alliances for the Nov. 2 municipal elections. Montealegre accepted the nomination of the PLC-led alliance and what may be a poison pill endorsement by PLC leader and Montealegre's bitter enemy, former president Arnoldo Aleman. The Great Liberal Alliance is made up of the PLC, the “We're with Eduardo” Movement, the Independent Liberal Party (PLI) and the Central American Unity Party (PUCA). A possible indictment for financial irregularities during his tenure on the board of the Central Bank continues to be a sword hanging over Montealegre's head and could force him out of the race if criminal charges are filed. Alliances have until Mar. 14 to register their lists of candidates and some analysts predict a last minute betrayal of Montealegre by Aleman.
The other main political alliance to register with the CSE on Mar. 3 was the United Nicaragua Triumphs alliance, led by the Sandinista Party (FSLN). This alliance is made up of the FSLN, the National Convergence, the Democratic Christian Union, the Movement for Christian Unity, Yatama and a faction of the Nationalist Liberal Party. Government spokesperson Rosario Murillo, who registered the alliance accompanied by candidate for mayor of Managua, boxer Alexis Arguello, said that 50% of all candidates for mayor, vice mayor and councilors will be women.
Three other smaller parties registered alliances on Mar. 3, the Sandinista Renovation Movement, MRS, (which will run on its own despite earlier intentions to ally itself with Montealegre), the ALN, which has been reduced to a handful of members after Montealegre's status as party president was declared invalid, and the Alternative for Change (AC).
Topic 3: Ortega condemns Colombian cross border attack in Ecuador
President Daniel Ortega condemned the cross border attack carried out by the Colombian Army in Ecuador on Mar. 1 during which the second in command of the Revolutionary Armed Forces of Colombia (FARC) Raul Reyes was killed. Ortega said that with this attack, which he described as a “provocation,” the Colombian government was “killing the opportunity for a peace process” in Colombia. Ortega went on to say that the Colombian authorities' attacks on the FARC are “sponsored by the Yankee [US] empire.” Ortega described Reyes as the FARC's “first diplomat for peace” and said that he had known him personally.
Two days earlier, on Feb. 28, the President had said that the FARC's unilateral release of four former legislators (the second unilateral hostage release in the same number of months) had opened the possibility for peace in Colombia and that it was up to Colombian President Alvaro Uribe to make the next move towards peace. Ortega even expressed his willingness to contribute to the peace efforts to which he said Venezuelan President Hugo Chavez' contribution had been “fundamental.”
Topic 4: UN warns of nutritional crisis in Central America due to soaring food prices
On Feb. 26 the United Nations World Food Program issued a statement warning of the possibility of a nutritional crisis in Central America due to the rising cost of basic food products such as corn and beans. According to the organization, studies have shown that, due to the generalized inflation of the last year which has particularly affected food prices, the population of El Salvador is consuming just 60% the number of calories it was in May 2006.
In response to the possibility of a regional crisis the World Food Program created a special commission to monitor the situation and called on the international community to collaborate with the governments and the people of the Central American countries.
The Nicaraguan Agricultural and Forestry Ministry (MAGFOR), also concerned about the issue, announced the creation of a Food and Nutritional Security and Sovereignty Policy which will make recommendations for increasing local food production to guarantee that the population has access to basic food products. Currently the proposed policy is being consulted with the Ministry of Trade and Commerce, the Councils of Citizen Power of the agricultural cooperative sector, the Farmers and Ranchers Union (UNAG), the Rural Workers Association (ATC) and the UN's Food and Agriculture Organization (FAO).
Topic 5: Group demands that Supreme Court rules on constitutionality of abortion ban
A group made up of representatives of women's rights organizations and medical associations called the Strategic Group for the Legalization of Therapeutic Abortion presented an appeal to the Nicaraguan Supreme Court in which the group demands that the court rule on an earlier appeal against the total abortion ban imposed by the National Assembly in October 2006. In January 2007 the same group appealed against Law 603, which criminalizes the practice of therapeutic abortion under any circumstances, claiming that the legislation violates the Nicaraguan constitution and the basic human right to live. The Court has so far failed to rule on the appeal. Leonel Arguello, of the Association of General Practice Physicians, said that the appeal demands that the Supreme Court justices rule according to the law and do not allow themselves to be guided by political parties or religious groups. If the Supreme Court fails to rule on the appeal, then the group plans to take the case to international tribunals, said Arguello.
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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