TUESDAY, FEBRUARY 08, 2011
Nicaragua Network Bulletin (February 8, 2011)
1. Alliance between Fabio Gadea and ALN in doubt2. Callahan says Ortega will win elections if opposition does not unite
3. World Bank lends US$19.5 million to Nicaragua to keep children in school
4. Record numbers register for school; problems remain
5. Debate begins on social security reform
6. El Nuevo Diario accuses Customs of holding newsprint because of corruption stories
7. Gold fever grips investors in Nicaragua
8. Nicaragua publishes map with Harbor Head in Nicaragua; Google shows the same
1. Alliance between Fabio Gadea and ALN in doubt
“Uncertain” was how analysts were classifying the political alliance between supporters of radio broadcaster Fabio Gadea Mantilla and leaders of the Nicaraguan Liberal Alliance (ALN) tentatively announced on Jan. 28. Gadea would run in November's presidential elections as the candidate of the ALN, which is a registered political party. Gadea's Nicaraguan Unity for Hope (UNE) is a coalition of groups and parties that do not have legal recognition. Formal announcement was expected on Feb. 3, but talks reportedly went awry when the principal supporter of Gadea, Eduardo Montealegre (himself a former presidential candidate), refused to accept that the leadership of the alliance as well as representation on local electoral councils and the naming of party poll watchers would remain in the hands of the ALN. It was also reported that the ALN was unwilling to accept one of the UNE members, the Sandinista Renovation Movement (MRS), into the Alliance. Alejandro Mejia, president of the ALN, called that “speculation.”
Meanwhile, the Citizen Action Party (PAC) offered its slot “without conditions” to Gadea. Party president Carlos Zapata said that the UNE could name the members of the political council of the party and choose the slate of National Assembly candidates, respecting the relative strength of the different members of the alliance. The PAC competed in the 1990 elections as the Revolutionary Unity Movement with Moises Hassan, a former Sandinista mayor of Managua, as candidate. In 1996, the party used the name Unity Alliance and ran philosopher Alejandro Serrano as its candidate. The party lost its legal recognition but later regained it and in 2006 formed an alliance with the Sandinista Renovation Movement in support of the candidacies of Herty Lewites and Edmundo Jarquin. (El Nuevo Diario, Feb. 5, 7; La Prensa, Feb. 3)
2. Callahan says Ortega will win elections if opposition doesn't unite
Speaking in Washington, DC, at a gathering of United States ambassadors to Central America at the Woodrow Wilson International Center for Scholars, Ambassador to Nicaragua Robert Callahan said “I predict that Daniel Ortega will win [the November presidential elections] if the opposition is incapable of uniting.” He added, “The opposition is fragmented; it doesn't have funds and is subject to the personal ambitions of its leaders.” He cited the social and anti-poverty programs of his government as the principle advantages that President Ortega has over the opposition.
To begin his talk, Callahan said that Nicaragua did not have the problems that other countries in Central America had with gangs and crime; its economy was doing well with a growth of 4% last year based on prudent macroeconomic policies, good prices for its exports, US$500 million in aid each year from Venezuela, and a similar amount in remittances from Nicaraguans living abroad.
But he said that the United States had concerns about the legitimacy of Ortega's candidacy, stating that it was unconstitutional, and about the fact that no international or national observers had been accredited for the elections. He said that the governments of several European countries had expressed the same concerns and added, without elaborating, that the US was working with national and international civil society groups.
Leonel Teller, spokesman for the Constitutional Liberal Party (PLC) led by former President and current candidate Arnoldo Aleman, said that his party's letter to Fabio Gadea, the other opposition candidate for president for the Nicaraguan Unity for Hope (UNE) alliance, asking him to return to the PLC and unite in support of Aleman was not in answer to Callahan's statements. He said, “We don't react to the agendas of the media, or any business group or nations with diplomatic representation [here].” (El Nuevo Diario, Feb. 3; La Prensa, Feb. 1; http://www.wilsoncenter.org/index.cfm?fuseaction=events.event_summary&event_id=649039 )
3. World Bank lends US$19.5 million to Nicaragua to keep children in school
On February 5th, the World Bank approved a US$19.5 million loan to Nicaragua. The loan will be used to assist 20,000 families living in extreme poverty with increased social services. To qualify families must have one or more children under the age of 13 who have abandoned school in order to work. The beneficiary families will also receive family scholarships for two years, educational workshops and support for keeping their children in school, including school meals. The funds will be used as part of the Model of Social Well-Being of the Integral Care of the Community Program developed by the Nicaraguan Ministry of the Family (MIFAN). It will start this year and continue through 2015. The loan is interest free and has a grace period of ten years. It is repayable over forty years.
"The project will be executed in a gradual manner, until it covers 20,000 families living in extreme poverty in the poorest districts, including Jinotega, Matagalpa, Leon, Esteli, Chinandega and Madriz," said Minister of the Family Marcia Ramirez. (El Nuevo Diario, Feb. 5; Radio La Primerisima; Feb. 4; La Prensa, Feb. 4)
4. Record numbers register for school; problems remain
Classes for the new school year begin on February 15. As of Feb. 5, 834,556 school age children had registered for classes. Government spokeswoman Rosario Murillo said that in recent days government officials have been going door to door to insure that all school age children have the opportunity to receive an education. She said that 140,000 backpacks filled with school supplies are being distributed to the poorest children along with 200,000 pairs of shoes. “There are 46 million pounds of food that will be consumed at school meals during the school year,” Murillo said. “It is a campaign without precedent.”
However, Nicaragua remains the hemisphere's second poorest country and the educational deficit from 17 years of neoliberal neglect and IMF spending restrictions have not been overcome by four years of Sandinista government. Fewer than half the country's classrooms are in good condition and nationwide there is a deficit of 35,000 school desks. Class sizes exceed government standards and many teachers are inadequately trained for the courses they teach, causing students to fail final exams. Critics call for a substantial increase in spending on school infrastructure and teacher training and decry the fact that the education budget actually decreased slightly this year as a percentage of the Gross Domestic Product (GDP). This makes it more difficult to achieve the government's goal of universal education to the sixth grade, according to critics. (Radio La Primerísima, Feb. 5, La Prensa, Feb. 3; El Nuevo Diario, Feb. 7)
5. Debate begins on social security reform
The Ministry of Labor (MINTRAB) has presented for discussion a proposal for social security reform to the National Labor Council which is composed of labor unions, business associations, and government ministries. Labor Minister Jeannette Chavez said, “It is very important that this be developed in a tripartite fashion [business, labor and government] in which each party has the opportunity to participate in its approval.” She said studies show that the system is currently solvent with enough reserves to continue benefits for more than three years, but that the government has to make projections 60 years in the future and, for the program to remain solvent into the future, changes must be made.
Luis Barbosa, head of the Sandinista Workers Central Jose Benito Escobar (CST-JBE), said, “We know that reform of social security is necessary, but we don't agree with raising the retirement age to 65 or increasing the number of months of work needed to qualify.” He believes the solution is that those who earn more should pay in more and that the funding the system should not fall entirely on the shoulders of the workers. He said labor would study the proposal and make a counter proposal. Freddy Blandon, representative of the Superior Council of Private Enterprise (COSEP), said that the proposal by MINTRAB was important because the data presented provides a snapshot of the situation. He said business would study the proposal and come up with its recommendations, noting that COSEP did not believe that this was a good year to make changes to the Social Security system. (Radio La Primerísima, Feb. 1)
6. El Nuevo Diario accuses Customs of holding newsprint because of corruption stories
Opposition deputies in the National Assembly said that the government was trying to repress freedom of expression and of the press by putting up barriers and inventing charges for the release of newsprint and other imported materials needed for the printing of the newspaper El Nuevo Diario. The deputies put the blame at the doors of the General Directorate of Customs, the General Directorate of Revenue, and the Ministry of the Treasury. The paper has been publishing stories about corruption under Revenue Office head Walter Porras, and Treasury Minister Alberto Guevara.
Victor Hugo Tinoco of the Sandinista Renovation Movement said, “We have to close ranks in the face of this, especially in support of the right of El Nuevo Diario to inform [the public].” Sandinista Deputy Martha Marina Gonzalez rejected a political motive for the hold up in customs, saying, “I think that they must be missing something; Customs is not going to hold up their goods if they fulfill all the requirements. It's a technical question.”
The Inter-American Press Association (IAPA) condemned the hold by Customs on the newspaper's imports. IAPA President Gonzalo Marroquin said, “Using public power to punish a medium of communication because of its critical and independent editorial position must be considered as a censorship measure and contrary to law and the constitution.” (El Nuevo Diario, Feb. 5)
7. Gold fever grips investors in Nicaragua
Nicaragua is again one of the top ten producers of gold in Latin America and in the top 20 in the world, according to the country's Chamber of Mining (CAMINIC). Production increased by 88% in 2010 compared with 2009 with exports reaching US$222 million making gold Nicaragua's third most important export after coffee and beef. The jump in production was a result of the reopening of the La Libertad mine after an investment of US$70 million to convert to a newer gold mining and processing system.
There are currently three mines in operation in Nicaragua: La Libertad in the Department of Chontales and Mina Limon (also known as Triton Minera of which Santa Pancha is a part) in operation for 70 years in the department of Leon, both owned by the Canadian company B2Gold, and a Hemco-owned mine in Bonanza, North Atlantic Autonomous Region, which has Canadian, US, and Nicaraguan capital. The La Libertad mine produced 70,000 troy ounces of gold or US$87.2 million in earnings last year, more than the amount the company invested in upgrading it. Mine manager Omar Vega said that the mine had enough gold reserves to produce between 80 and 90,000 ounces of gold per year for seven years. [Interestingly, neither of our sources for this story asked Nicaragua's environmental organizations about the impact of these gold mines on Nicaragua's environment. But, see the Bulletin for Dec. 21, 2010, for coverage of a mine collapse at Santa Pancha; also go to www.humboldt.org.ni/ to read about residents of Mina Limon protesting a new tailings dam; search “Triton Minera” on the site.]
Mining companies say they are expecting to invest some US$100 million in Nicaragua during 2011 with ten new companies beginning the process of applying for exploration concessions. The Canadian company Golden Reign Resources, Ltd. announced last week that their exploration in the San Albino- Murra area near El Jicaro in the Department of Nueva Segovia had produced very positive results. According to CAMINIC President Sergio Rios, “The rules for mining [in Nicaragua] are very clear…. The country is favoring investment. In reality, Nicaragua has excellent technicians, very good geologists, and people trained in mining.”
Most of Nicaragua's gold is exported to Canada and the United States but China is a growing market. According to CAMINIC, the mining sector generates 2,790 jobs directly and a total of 15,000 including indirect jobs. The price of gold on the futures market for February delivery is currently at US$1,349 per ounce having reached a record high of US$1,431 on Dec. 7 of last year.
Silver production in Nicaragua also increased 56% in 2010 over 2009 with earnings at US$4.5 million on a production of 224,000 ounces. (La Prensa, Feb. 6; Radio La Primerisima, Feb. 2, 7)
8. Nicaragua publishes map with Harbor Head in Nicaragua; Google shows the same
Costa Rica sent to Nicaragua its “most energetic protest” over the publication in Nicaragua of a new map that includes the area known as Harbor Head which is claimed by Nicaragua based on the late 19th century Alexander Arbitration Awards. However, it turned out that the map was virtually identical to a map issued by the government of Costa Rica in 1971. The new map, prepared by Nicaragua geographers, appeared on the web page of the Nicaraguan Institute for Territorial Studies (INETER). INETER Director Alejandro Rodriguez said that it is now the official map and will be used by all offices of the Nicaraguan government. To see this map, visit www.ineter.gob.ni .
Rene Castro, Costa Rican Minister of Foreign Affairs, said in a statement that “this error is intentional, clearly directed toward updating Nicaraguan cartography to comply with the false arguments that Nicaragua presented at the International Court of Justice during the oral arguments of January 11 through 13.” He added, “My country entirely rejects any legal value that they desire to give to those maps.”
Google's map of the area appeared in the news again when La Prensa reported that Google had changed its map back to show Harbor Head within Nicaraguan territory. In November when the conflict between Nicaragua and Costa Rica over the tiny triangle of swamp land was beginning, Costa Rica demanded that Google change its map to show Harbor Head in Costa Rican territory. Google said that it would make the adjustment. On Feb. 2, La Prensa reported that Google had changed the boundary on the map back to its original place. However, on Feb. 4, Google issued a statement saying that it had not made the change. However, a quick check at Google maps shows Harbor Head within Nicaragua. (Radio La Primerisima, Feb. 3; La Prensa, Feb. 1, 3; El Nuevo Diario, Feb. 5)
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