TUESDAY, JANUARY 20, 2009

Nicaragua Network Hotline (January 20, 2009)

1. Aleman prison sentence revoked in exchange for political stability
2. FSLN Continues Electoral Gains on Atlantic Coast
3. Outlines of Emergency Economic Plan Emerge
4. Teachers "Obliged to become Street Vendors"

Topic 1: Aleman Prison Sentence Revoked/Lawsuit Threatened

The Nicaraguan Supreme Court freed "in a definitive manner" former President Arnoldo Aleman, voiding his 2003 conviction for stealing more than US$100 million from state coffers and with money-laundering on a grand scale. The move seemed to be the last step in a five year political dance between Aleman and President Daniel Ortega, although there were indications that the political machinations could continue with an announcement from the Prosecutor General's office that it was preparing new indictments on other financial corruption charges that have never been brought to court. Aleman also continues to face indictments in Miami and Panama. For his part, Aleman threatened to sue for $4,000/month back pay he was denied when he lost his legislative immunity.

The timing of the exoneration coincided with the end of the paralysis of the National Assembly as most of Aleman's Constitutional Liberal Party (PLC) deputies joined Sandinista (FSLN) deputies in re-electing Sandinista Rene Nuñez as president of the National Assembly. The deal was a set-back for institutionality. It was also a severe blow to the political aspirations of Eduardo Montealegre, both because he failed to pull together a majority to elect his slate to the leadership of the Assembly, and because presumably part of the negotiations for Aleman's freedom included an end to the protests about alleged irregularities in the November 9 municipal elections. Montealegre was contesting his defeat for Mayor of Managua and leading the campaign claiming fraud in the elections. However, with the Nicaraguan right-wing's ever shifting alliances and fractures, one never knows what next month will bring. The annulment removes any legal impediment to an Aleman run for the presidency in 2010. However, he remains the Nicaraguan politician with the lowest public approval rating.

We can expect a period of relative political calm which the Ortega government badly needs to confront the effects of the world financial crisis on Nicaragua. The months of paralysis of the National Assembly has meant that laws were not passed that the IMF requires before it will release loans scheduled for 2009. The European Union, several European countries, and the US Millennium Challenge Account have suspended aid to the Nicaraguan government over concerns about the municipal elections. In response to a letter from the Nicaragua Network urging the EU not to cut aid because it would constitute "collective punishment" of Nicaragua's poor, EU Ambassador to the US, John Bruton, responded that he is also concerned and, "The European Commission sincerely hopes that the situation will evolve in a positive and constructive way, so that the decision to suspend budget support can be reconsidered as soon as possible."

Topic 2: FSLN Continues Electoral Gains on Atlantic Coast

In November, the FSLN won control of 105 municipalities on the Pacific side of Nicaragua, leaving the main opposition parties with only 41, including just one municipality of significant size, the southern city of Granada, on Lake Cocibolca. On Sunday, Jan. 19, these gains were complemented in the municipal elections in the Northern Atlantic Autonomous Region (RAAN) which were delayed due to damage by Hurricane Felix. The FSLN took all the main centers of population, including the principal city of Bilwi/Puerto Cabesas.

The Atlantic Coast, home to many of Nicaragua's indigenous peoples, was declared autonomous by the Constitution passed by the first FSLN government in 1987. Under that Constitution, the North and South Atlantic Autonomous Regions (RAAN and RAAS) have the right to govern themselves through regional councils representing the local populations of Miskito, Sumo- Mayagna, Rama and other ethnic groups. With 97% of votes counted, the president of the Supreme Electoral Council (CSE), Dr. Roberto Rivas, declared the FSLN victorious in Bilwi/Puerto Cabezas, Waspam, Rosita y Bonanza. The Constitutional Liberal Party (PLC), the Front's principal rival, won Siuna and Mulukukú, while the indigenous people's party, Yatama, won Prinzapolka.

Despite alarmist anticipation in much of the national news media, claiming concern that the Coast would see tumult similar to that following the Pacific Coast elections when opposition parties took to the streets to protest the results, Sunday passed without serious incident, perhaps indicative of agreements reached over the nullification of Aleman's conviction. Voter turnout at 34%, however, was low by Nicaraguan standards, which has historically seen levels way above 50%.

Topic 3: Outlines of Emergency Economic Plan Emerge

The global financial crisis has forced the Nicaraguan government to send a revised 2009 budget to the National Assembly. Instead of the US$700 million that it was seeking, the total budget will now come in at US$500 million, pretty much in line with that of last year. Presidential economic advisor Bayardo Arce and Central Bank president Antenor Rosales acknowledged that, of the US$200 million deficit, at least US$100 million was due to European countries and the US suspending promised aid due to alleged irregularities in the November municipal elections.

Rosales went on to say that Central Bank projections for 2009 had Nicaragua halving its probable overall growth, from over 4% to just 2.0%, and an anticipated rate of inflation of 8-9%. Arce underlined that the government will guarantee the financing of all measures adopted, explicitly ruling out a rumored revision of the tax code "for this year, at least." Given the extraordinary nature of the crisis, both men emphasized the vital importance of the assistance provided to Nicaragua by Venezuela and others by virtue of its membership in the Bolivarian Alternative for Our Americas (ALBA). ALBA has established itself as a "fair trading block" challenging conventional "free trade agreements" sponsored by the US and Europe, now widely seen in Latin America as doing more harm than good.

The budget cut-backs have raised concerns among students who can attend university only if they continue to receive scholarships. César Pérez, President of the Nicaraguan National Union of Students (UNEN), explained that those who already have grants will continue to receive their scholarships. "Those primarily affected will be the new students. There simply may well be no budget to offer them support for this year."

Gustavo Porras, FSLN deputy to the National Assembly and General Secretary of the National Workers Front (FNT), called on all sectors of Nicaraguan society to bear the burden of the government's anti-crisis measures. "It's vital that such measures reflect our priorities, our model, our values," he said. "That means they should be aimed at the support of people in the countryside, to support the production of food, the development of small farmer production, the development of our country." He continued, "We want nothing to do with measures to continue and defend neo-liberalism. We've stated clearly that we will not return to neo-liberalism; for example, measures intended to support the banks. Why on earth? That's just defending neo-liberalism! On the contrary, we must adopt measures which involve everyone, all sectors, including the banks and bankers, in developing national production. This is something all Nicaraguans must take on together."

Porras continued by saying that, in the past, the burden of emergency measures tended to be borne by the working class, while the business classes as a rule sought exonerations and other means to soften the impact on themselves, while giving little in return. "Not this time," said Porras. "This time, it's up to all of us to act to cushion and ameliorate this situation." He went on to criticize offices with several vehicles assigned to them where one would do, and challenged his colleagues to cut back on their cell phone ownership and big spending on calls. "The working people are prepared to take on some of the burden of these cuts made necessary by the failure of neo-liberalism," he declared, "but only if they see that they are being borne equitably by all sectors. If we expect them to assist in solving the crisis, we legislators and others in government must set the example," he concluded.

Topic 4: Teachers "Obliged to become Street Vendors"

Arsenio Vivas, president of the Nicaraguan National Confederation of Teachers, declared that as many as 7,000 teachers will find themselves forced to take to the streets to sell whatever they can if they are denied "their right" to a double shift. With the lowest teachers pay in Central America many teachers have been forced to teach in both of Nicaragua's daily school sessions in order to earn a double income. Education Minister Miguel de Castilla, has managed to raise teachers' monthly pay three times for a total increase of approximately US$75, although it still remains low. He intends to eliminate the double shift to improve standards within the profession. De Castilla insists that the law expressly forbids teachers taking more than a single public school shift per day, adding that they are entirely at liberty to take other forms of extra work if they find it necessary.

The minister's position was supported wholeheartedly by José Antonio Zepeda, leader of the Nicaraguan National Association of Teachers (ANDEN). "These people with double or triple shifts are just shameless," he said. "The practice is a leftover from the corrupt so-called school autonomy system, (imposed by the World Bank and IMF) which the current government has replaced with genuinely public schools once again." He claimed that in fact no more than 1,800 teachers would be affected, and that, as single shift teachers, they receive a salary of between US$160 - US$170 per month.

Vivas hotly disputed Zepeda's claims, calling ANDEN a "company union" at the minister's beck and call. "The majority of the teachers who take double shifts are single mothers, struggling to support their families," he said. "How dare they call these people ‘shameless,' especially when they themselves enjoy the fat salary of a minister or deputy to the national assembly? Even the Central Bank admits that the basic 'food basket' for a month here is now costing around US$ 590. And a teacher on US$160!" In response to Xepeda's claim that the 44,000 teachers working directly with the ministry of education seemed to be managing, Vivas retorted, "Sure, by working in private schools or by selling on the street!"

Claiming that teachers had gained the right to the double shift, and that de Castilla was really seeking to make room for teachers who were FSLN members, Vivas concluded, "We're going to fight for this right at the start of the new school year in early February. We'll set up a picket outside the Education Ministry and take several other measures to make our voices heard. We're not delinquents nor shameless; this is not a political business, it's a question of hunger." The efforts by the Ortega government to rebuild the education system after 16 years of strangulation and privatization forced by World Bank/IMF structural adjustment conditions has been heroic but difficult. Classrooms are filled to overflowing, infrastructure has deteriorated, and teachers' salaries do not provide a living wage.

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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