TUESDAY, APRIL 20, 2010

Nicaragua News Bulletin (April 20, 2010)

1. Miguel De Castilla replaced as Minister of Education
2. US Ambassador announces extension of property waiver
3. No resolution in sight in struggle over nominations to high posts
5. Young Environmentalist Club targets hunting of threatened turtles
6. Long-awaited Development Bank opens
7. Chavez visits Nicaragua before ALBA summit in Caracas and Bicentennial celebration

1. Miguel De Castilla replaced as Minister of Education

Last week respected educator Miguel De Castilla was replaced as Minister of Education by Miriam Ráudez, head of the Ministry in the Department of Esteli. Milena Nuñez resigned as Vice-Minister of Education and Director of Statistics Yolanda Zamora and Special Education Director Elizabeth Baltodano were fired.

A Ministry source told La Prensa that De Castilla's Ten Year Plan, which was a plan to guarantee investment in Nicaragua's principal education problems would be suspended. Ernesto Robleto, president of the group Eduquemos, said, “We are very concerned that the authorities of the Ministry are making the decision of postponing the Ten Year Plan because that is where short term investment [plans] would be laid out.”

El Nuevo Diario reported that anonymous labor union and internal ministry sources had told the daily that there was inefficiency and even corruption in the acquisition of educational materials, in particular 157,000 multi-grade teachers' guides for which US$440,000 was spent but which in the end had to be withdrawn because they were out of date.

The Education and Human Development Forum (FEDH), a non-governmental organization, released a statement expressing “to the people of Nicaragua our unconditional support for Professor Miguel De Castilla Urbina, former Minister of Education, whom the communications media accuses of misappropriation of funds assigned to that institution.” The statement went on to say: “We recognize in Professor De Castillo his honesty, integrity, commitment and professional ethics and under no circumstances would our organizations that work for the right to education remain silent in the face of this public abuse to which he is being subjected.” .” The Nicaragua Network is deeply saddened by the sudden removal of Nicaragua's most dedicated and visionary educator. (La Prensa, Apr. 17; El Nuevo Diario, Apr. 18; Radio La Primerisima, Apr. 20)

2. US Ambassador announces extension of property waiver

US Ambassador to Nicaragua Robert Callahan announced on April 13 that Nicaragua has “complied” with the requirements for a waiver needed to continue to receive US aid. “This year the government of Nicaragua has resolved more than 50 property claims by US citizens,” the Ambassador said.

US law requires aid to be cut off if another country confiscates the property of US citizens unless the Secretary of State issues an annual waiver. Many Nicaraguans, including those who committed human rights abuses as part of the Somoza dictatorship, had their property confiscated during the years of the Sandinista Revolution. In subsequent years they became naturalized US citizens and were treated retroactively under the US law as if they had been US citizens at the time their property was confiscated.

Callahan said that there remain some 500 claims by 250 people to be resolved. “Some of the cases are difficult,” he said, “but we have to work together, the government of Nicaragua and my government too, because we want to [find out] if those cases are legitimate and we have a process for that.” (Radio La Primerisima, Apr. 13)

3. No resolution in sight in struggle over nominations to high posts

Nicaragua has been plunged into a constitutional crisis by the inability of the country's political forces to agree on who should fill 25 high level posts, including all the magistrates of the sensitive Supreme Electoral Council, whose terms are expiring. The National Assembly Special Commission on Nominations presented its unanimous recommendation of Victor Urcuyo for reappointment as Superintendent of Banks. However, he was the only candidate about whom the Commission could reach consensus. More recommendations were expected by the end of last week but were not released. The Commission is divided as is the Assembly as a whole, where a super majority of 56 votes is necessary to confirm an appointment. The situation is a result of a reform, passed during the presidency of Enrique Bolaños, which redistributed power away from Nicaragua's strong presidential system in favor of the legislature. The unintended consequence is that it allows a minority in the National Assembly to prevent the other three branches of government (executive, judicial, electoral) from functioning by holding up appointments.

Meanwhile, some officials allied with the governing Sandinista Party, including two justices of the Supreme Court and two Comptrollers of the Comptrollers General Office, remained in their offices after their terms had expired. They based their actions on a January decree by President Daniel Ortega which stated that officials could remain in their posts until their replacements were named. The decree was challenged by the opposition both in the National Assembly and in the courts. The opposition in the National Assembly refused to attend sessions, meaning that the body has not functioned for lack of a quorum. Last week a majority of the Assembly leadership voted to put on the Assembly agenda a bill that would repeal the president's decree. But the Constitutional Panel of the Supreme Court, with only Sandinista justices present including two whose terms had expired (Rafael Solis and Armengol Cuadra), issued a ruling on Friday, Apr. 16, stating that the decree was valid. The Court sent a letter to Assembly President Rene Nuñez notifying him that only the Supreme Court had authority in the matter and exhorting him not to place the bill on the agenda. Leonel Teller, spokesman for the Constitutional Liberal Party (PLC), said that the Liberal justices did not attend court that day because they were told that the police would not intervene in their support at the time of a demonstration of the union of court employees in support of the Sandinista justices.

National Assembly Deputy Ramon Macias of the Nicaraguan Liberal Alliance (ALN) said that the objective was to extend the crisis up to the last instant so that the PLC and the Sandinista Party (FSLN) could negotiate an agreement and keep in place the current magistrates of the Supreme Electoral Council until the election year of 2011. (Radio La Primerisima, Apr. 13, 16; La Prensa, Apr. 17; El Nuevo Diario, Apr. 17, 18)

4. Last round begins for Association Accord between Central America and European Union

Two matters of importance separate the countries of Central America and their European Union partners in discussions over what is being called an “Association Accord” rather than a trade agreement because it includes other areas of cooperation including development assistance and political cooperation. The Nicaraguan government has said, in the words on Apr. 19 of Vice-Minister of Foreign Affairs Manuel Coronel, “If there is no fund, there is no signature.” The Common Fund Coronel refers to would be for infrastructure and other projects that would help address the development difference between Central America and Europe. The other area of disagreement centers around sensitive product categories where the Central Americans want more access to European markets for certain products such as sugar and beef while the Europeans want the Central Americans to further open their service sectors to European investment.

The last round of talks (before a tentatively scheduled signing date of May 15 at an Ibero-European Summit in Madrid) begins on Apr. 19 in Brussels, Belgium.

Mauricio Herdocia, president of the Central American Integration Institute, said, “In order to achieve a balance it is very important to make concrete the initiative of the Common Fund, which must not be only for investment, but also to decrease asymmetries and address the poverty gap between our countries, promoting social cohesion.” Coronel said that Nicaragua proposed a fund of US$60 billion but that the amount was negotiable. EU Representative for Central America Mendel Goldstein said that a meeting had been scheduled to discuss the fund on Mar. 26 but that the Central American side was not prepared with a concrete proposal.

Meanwhile, the Nicaraguan Superior Council of Private Enterprise (COSEP) demanded that access be expanded for Central American rice, beef, dairy products, sugar, bananas, other fruits and vegetables, coffee and textiles. COSEP President Jose Adan Aguerri said that there is consensus among Central American negotiators to not cede further in these areas. He added, “What we want is to have a good agreement. We are optimistic that there will be the flexibility to respond to these demands.”

Goldstein said that while Central America wanted more access for its products, “[W]e have said that access [to the Central American market] for service companies is not sufficient, but with the good will of both parties it is possible to sign. We think that it is possible to arrive at an agreement.”

A number of civil society groups and coalitions in Central America and Europe spoke out against the accord. The Nicaraguan Network of Social Movements said, “The European Union is a giant and Central America is a tiny dwarf.” Victor Campos of the Humboldt Center in Managua said that if the countries sign the agreement in May, the organizations will continue to protest and will lobby legislatures in the different countries not to ratify it. Luis Barbosa, of the Jose Benito Escobar Sandinista Workers' Central, said that the accord was similar to CAFTA in that the labor chapter stipulates that “if you are able to demonstrate that workers' rights have been violated by a transnational company, it's the government of the country that pays [rather than the company].” Toni Sandell, of the Finnish organization KEPA, noted that the accord doesn't benefit Europeans either. She said “We don't feel that the Association Accord is benefitting the Central Americans, but neither is it benefitting the Europeans. It is an agreement instead drawn up to favor the transnationals.” She added, “You open the market for Central American products in Europe but at the same time Europe is paying US$60 billion annually in subsidy to its farmers. It is difficult to compete under these conditions.” (La Prensa Apr. 19)

5. Young Environmentalist Club targets hunting of threatened turtles

Despite the fact that in 1997 Nicaragua signed on to the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES), which protects endangered and threatened species, the killing of threatened green sea turtles (chelonia mydas) continues to occur. Nicaraguan law allows Atlantic coastal communities to hunt turtles for the purpose of subsistence except during the closed season at the time of egg laying. But the Young Environmentalist Club (CJA) insists that the killings have gone beyond hunting for subsistence and are fueling a lucrative market. Turtle meat can be sold for US$1.75 lb., and a whole turtle can be sold for between US$60 and US$90. "The slaughter of the green turtle is becoming a business, which has decreased the turtle population, obviously meaning that it is a danger for this species," said Julio Santos, director of the Young Environmentalists Club.

The CJA completed a study of the turtle's situation in the North Atlantic Autonomous Region (RAAN), which it plans to present to government officials in May. The study focused on the Awastara community, because reportedly last year there were around 45 barges in that area dedicated exclusively to hunting turtles, each with the capacity to capture 15-20 turtles a day. After presenting the report to the government, the CJA intends to push for better enforcement of national regulations related to turtle hunting. (El Nuevo Diario, Apr. 18)

6. Long-awaited Development Bank opens

The long-awaited state-run “Let's Produce” Development Bank (known as Produzcamos) opened on Apr. 19 with initial capital of US$117 million and with windows at the main Produzcamos office in Managua and at branches of the privately-owned Bank of Production (BANPRO) in Leon, Chinandega, Granada, Matagalpa and Jinotega. Manuel Alvarez, president of the Union of Agricultural Producers (UPANIC) and a member of the new bank's board, said that when the bank has grown it will establish its own branches around the country. He said the bank would not base its decisions about loans on the political affiliation of the borrower, noting that “in the countryside everybody needs credit.” The new bank will be able to offer credit to some 20,000 farmers at an annual interest rate of 12%. Repayment periods will vary depending on the crop cycles in the different regions of the country. Alvarez said that a percentage of the available credit is being assigned to different sectors of the agricultural economy. (Radio La Primerisima, Apr. 15; La Prensa, Apr. 19)

7. Chavez visits Nicaragua before ALBA summit in Caracas and Bicentennial celebration

Venezuelan President Hugo Chavez visited Nicaragua on Apr. 14 and 15 and signed agreements for the construction of a petroleum gas plant, a fertilizer plant and a milk processing plant financed by Venezuela and for the exportation to Venezuela of more Nicaraguan beef, milk and beans. The health ministers of the two countries signed an agreement under which Venezuela will provide cancer medications and antiretrovirals, and the countries will exchange technical knowledge. Other agreements were signed with the Nicaraguan Institute of Tourism and with the Nicaraguan Basic Foods Company (ENABAS).

Unofficial sources said that Chavez was visiting Nicaragua to “review the account books” of ALBA of Nicaragua (ALBANISA) which receives funds from Venezuela under the Bolivarian Alliance for Our Americas (ALBA) and invests it in socially significant projects. Chavez noted that he and President Daniel Ortega would be going over 50 projects that come under the ALBA banner, including those of ALBANISA, PetroCaribe, energy projects and others.

The presidents of the ALBA member countries met in Caracas on Apr. 19 and released a declaration congratulating Venezuela on the 200th anniversary of the start of the process that led to its independence. Among the presidents and prime ministers attending the events of the bicentennial celebration were Raul Castro of Cuba, Evo Morales of Bolivia, Cristina Fernandez of Argentina, Rafael Correa of Ecuador, Leonel Fernandez of the Dominican Republic, Daniel Ortega of Nicaragua, Baldwin Spencer of Antigua and Barbuda, Roosevelt Skerrit of Dominica and Ralph Gonsalves of St. Vincent and the Grenadines). Many of these leaders, including Ortega, were scheduled to attend the World People's Conference on Climate Change and the Rights of Mother Earth in Cochabamba, Bolivia, April 20-22, hosted by Bolivia's President Evo Morales. Some 18,000 people were expected to attend from 129 countries. (El Nuevo Diario, Apr. 16, 18; Radio La Primerisima, Apr. 17, 19)
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