TUESDAY, JANUARY 31, 2012
Nicaragua News Bulletin (January 31, 2012)
1. OAS releases report on Nicaraguan elections2. Clinton statement causes controversy
3. Nicaragua grew 4.8% in 2011
4. Renewable and efficient energy top priorities
5. Beekeepers certified as organic producers
1. OAS releases report on Nicaraguan elections
On Jan. 23, the electoral observation mission of the Organization of American States released its report on the Nov. 6, 2011, presidential elections in which Daniel Ortega was reelected by a wide margin. Although the report spoke of irregularities during the process, nowhere in the report does it speak of fraud or recommend non-recognition of the election results. The report noted that the results of samples taken by members of the mission were “similar to those released by the Supreme Electoral Council,” adding, “We also had knowledge of similar proceedings [exit polls or quick counts] with the same conclusions.”
The report noted that voting places on average opened their doors at 6:59am; 100% of the precincts observed had all necessary materials; in 100% of the precincts the voter roll was posted and visible; and 98% had all electoral officials present. The report stated that 94% of the precincts observed had poll watchers from the Sandinista Party; 85% had poll watchers from the Independent Liberal Party (PLI) Alliance; and 81% had poll watchers from the Constitutional Liberal Party (PLC).
In the 74 page report, the OAS recommends changes to Nicaragua's electoral law and in the structure of the Supreme Electoral Council (CSE) to remedy structural problems which it says stem from 1996. [The electoral law was changed in 1995, before presidential elections in 1996.] The report says that Nicaragua should change the criteria for choosing the electoral officials at each polling place so that they would be chosen “without consideration of their party affiliation.” The report adds that, “In this way the role of the party poll watchers would be strengthened.” The report recommends streamlining the issuing of citizen identification cards “in order to prevent [the cards] becoming an election issue.”
The OAS report expressed concern that some national groups that requested accreditation as election observers, including Hagamos Democracia and the Institute for Development and Democracy (IPADE), were not accredited by the Supreme Electoral Council. [Other groups, including the National Council of Universities, were accredited.] The OAS also said that there should be an audit of additions, changes, and exclusions to the electoral roll. The report should be posted to the OAS web page in the next few days.
Reaction in Nicaragua to the report was varied. Retired Gen. Hugo Torres, a member of the Sandinista Renovation Movement (MRS), part of the PLI Alliance, said that the report includes sufficient elements to say that the elections were not clean and transparent. “It reflects what previous reports had said and reflects in part the fraud of November 6, but for diplomatic reasons they don't call it that.” Jaime Morales Carazo, who served as vice-president in Ortega's previous term, said that the majority support received by the FSLN has not been questioned and that, if it is true that there were irregularities, these incidents occur in elections in any country.
In the United States, U.S. Representative Ileana Ros-Lehtinen (R-FL), chair of the House Foreign Affairs Committee, was angered by the report. She said it “lacks any concrete solutions or actions to condemn Daniel Ortega's raid on the Nicaraguan constitution.” She went on to say, “The OAS report… acknowledges several deficiencies in the Nicaraguan electoral process, but it fails to mention the real cause and root of the problem: that Daniel Ortega violated the Nicaraguan constitution, which forbade his re-election.” [A Supreme Court decision in 2010 said that a clause giving Nicaraguans the right to “elect and be elected” trumped a clause added later prohibiting consecutive reelection.] She said, “I urge all responsible nations to condemn Ortega's actions in Nicaragua, demand a new election, ensure that the OAS charter is applied appropriately, and not recognize the Ortega regime.” (Informe Pastran, Jan. 26; La Prensa, Jan. 26, 27; House Foreign Affairs Committee News, Jan. 27)
2. Clinton statement causes controversy
On Jan. 25, US Secretary of State Hillary Clinton released a statement on the Nicaraguan elections which caused much more controversy and concern in Nicaragua than the OAS electoral mission report (see story above). The statement says that, “The final report of the Organization of American States (OAS) election observation mission to Nicaragua supports the democratic aspirations of the Nicaraguan people and expresses many of the concerns we share with regard to the conduct of recent elections.” It goes on to say, without referring specifically to the OAS report, “As noted by international observers and Nicaraguan civil society groups, Nicaragua's recent elections were not conducted in a transparent and impartial manner, and the entire electoral process was marred by significant irregularities. The elections marked a setback to democracy in Nicaragua and undermined the ability of Nicaraguans to hold their government accountable.” These latter statements were not in the OAS report.
But it was the reference to aid and loans to Nicaragua that aroused concern among Nicaraguan politicians and businesspeople. Clinton said, “As part of a review of our assistance and policy toward Nicaragua, the United States will continue to apply aggressive scrutiny to project loans at the Inter-American Development Bank and World Bank, and we will oppose any loan proposals that do not meet these institutions' high standards, or do not provide sufficient development impact.”
The Nicaraguan Foreign Ministry answered the Clinton statement the next day with a statement of its own. Foreign Minister Samuel Santos said that the Nov. 6 elections represented the consolidation of the democratic process in Nicaragua and that the strengthening of that process would continue without intervention. The Santos statement goes on to say that, “In our relations with the Inter-American Development Bank and the World Bank in the last five years, the government of Nicaragua has prepared all of its proposals at the highest technical level, based on the high standards required by the international financial institutions” and adds that “all the financial operations contracted in that period have been focused on generating the greatest impact on the socioeconomic development of the country in the areas of health, education, energy, highways, etc.” And, finally, Santos reiterates Nicaragua's “disposition to continue developing with the United States of America relations within the framework of respect and collaboration in different areas of mutual interest.”
Sandinista National Assembly deputies accused the US of intervention while opposition leaders applauded the Clinton statement. Sandinista Deputy Jose Figueroa said, “They are trying, as they have at other moments in our history, to intervene in the internal affairs of Nicaragua.” Walmaro Gutierrez, also a Sandinista, said that Nicaragua's relationship with the multilateral lending agencies has always been respectful and they have recognized Nicaragua's achievements in reducing poverty. Losing presidential candidate Fabio Gadea said, “The declarations of the United States Secretary of State are a warning to Mr. Ortega that he has to take into account because they could have grave consequences.”
The Inter-American Development Bank has provided US$1.06 billion in financing to Nicaragua in the last five years. The World Bank is funding 13 projects for a total of US$269 million of which US$136 million has not yet been disbursed. The World Bank's Country Partnership Strategy agreement with Nicaragua in the amount of US$240 million was approved for the period 2007-2012. The United States can veto the loan agreements of these financial institutions if it is so disposed.
Pending each year are two separate waivers that the US Secretary of State must grant so that Nicaragua can receive US assistance. Gary Clements, economic officer of the US Embassy in Managua, said, “We are in the process of review to determine if we are going to grant the two waivers [this year] or not.” The best known of the two is the so-called “property waiver,” dating from the 1990s, which certifies that Nicaragua has made progress each year in compensating US citizens for property taken over by the revolutionary government in the 1980s. [Most of them were Nicaraguans who became US citizens after they lost their property to foreclosure or confiscation for collaboration with the Somoza dictatorship or for use in land reform.] The other, dating from 2008, requires a waiver each year in order for countries whose national budgets are not public to receive assistance from the United States.
In an analysis, the Informe Pastran reminds readers of the statements by Florida Sen. Marco Rubio in December that he had reached an agreement with the Obama administration that the administration would make a strong declaration about the Nicaraguan elections and Senate Republicans would respond by approving the nomination of Maria Carmen Aponte to be ambassador to El Salvador. Approval of the nomination of Phyllis Powers to be ambassador to Nicaragua was also speculated to be part of the bargain. The Informe Pastran states, “It appears that the Obama administration ceded to the pressure of the Republicans.”
In contrast to the statements by the Secretary of State, US drug czar Gil Kerlikwske said, “The countries of Central America are making considerable efforts to confront the criminal transnational organizations …. Nicaragua is the star country in the fight against drug trafficking in the Central American region.”
Meanwhile, some Nicaraguans in Los Angeles, California, are collecting signatures on a letter to all 435 members of the US House of Representatives in which they say that Nicaragua has been kidnapped and oppressed at the hands of a dictator with pseudo-revolutionary and criminal rhetoric. They go on to say that their opposition to the Ortega government is due to electoral fraud, violations of human rights, corruption, misuse of public funds, accusations of ties to drug traffickers, coercion and murder of opposition members. They will also send the letter to the State Department and to the embassies of the countries that sent delegations to Ortega's inauguration.
But Nicaragua's businesspeople were much calmer. Yali Molina, president of the Nicaraguan-American Chamber of Commerce (AMCHAM), said that businesspeople would use their political networks in the United States to favor Nicaraguan business and also the people of Nicaragua. And, in fact, by Monday Jan. 30, Jose Adan Aguerri, head of the Superior Council of Private Enterprise (COSEP), and Cesar Zamora, who serves as vice-president of the American Chambers of Commerce of Latin America (ACCLA), were in Washington, DC, to meet with Obama administration officials to exchange information and concerns and hold meetings with the international financial institutions and think tanks headquartered there.
Arturo Cruz said he believes that the Obama administration wants good relations with the Sandinista government because of its effectiveness in fighting drug trafficking, its level of citizen safety, and its macroeconomic stability. He stated that the Department of State knew that Daniel Ortega would be reelected but for the US officials it is very important to see changes in the Supreme Electoral Council, changes also urged by the OAS report. He said that the two waivers could be granted this year (in March and July), but if there are no changes before the municipal elections scheduled for November of this year, 2013 could be a very difficult year for Nicaragua. (Radio La Primerisima, Jan. 26; La Prensa, Jan. 26, 27; Informe Pastran, Jan. 24, 26, 30; http://www.state.gov/secretary/rm/2012/01/182506.htm, Jan. 25, 2012)
3. Nicaragua grew 4.8% in 2011
Nicaragua closed 2011 with an economic growth rate of 4.8% according to Carlos Muñiz, executive director of the Nicaraguan Foundation for Economic and Social Development (FUNIDES). “That is an important number although not sufficient for the great needs of the country,” he said. FUNIDES is recommending policies that he believes would allow 7-8% growth, “but a growth of 4.8% is a good performance,” he said. Mining, construction, the cattle sector and industry all had a good rate of growth, with the recovery of the private construction sector leading the way. Foreign investment also grew 15-20%; exports grew by 20%, strongly influenced by a 40% increase in exports from the Free Trade Zone assembly plants.
Muñiz added that macroeconomics were well handled by the Ortega government with increases in currency reserves of the Central Bank and a controlled national budget which grew 15% in real terms but was matched by growth in tax receipts. “Another positive aspect is that the private banking system that had fallen from mid-2008 began to recover in mid-2011. That is positive because it means that the banks are generating more loans in response to the greater demand of the economy,” Muñiz said. He added that Nicaragua's Gross Domestic Product is growing faster than the other countries of Central America. He noted that the economy benefitted from high international market prices which it appears will remain high in 2012 but not go higher. (Informe Pastran, Jan. 24; Radio La Primerisima, Jan. 24)
4. Renewable and efficient energy top priorities
Emilio Rapacciolli, minister of Energy and Mines (MEM), announced on Jan. 24 that by 2017 Nicaragua expects to generate 95% of its electricity from renewable sources, geothermal, biomass, wind, and water. In conflicting stories, Radio La Primerisima cited Rapacciolli as stating that in 2011 Nicaragua generated 48.11% of electricity from clean sources while La Prensa cited him as claiming 38.5%. Either figure represents an historical high and strong advancement in renewable energy production since the Sandinistas returned to power. At the time of Daniel Ortega's presidential inauguration in January 2007, Nicaragua was suffering daily rolling blackouts which were having a severe impact on the economy. By 2011 Nicaragua was generating 829 megawatts; more than the 540 megawatt national demand.
Rapacciolli also announced new regulations on the importation of domestic and commercial electrical products to guarantee that only energy efficient lights, refrigerators, air conditioners, and other products are imported. A ministry study determined that in the home, refrigerators consume 37% of household energy use. Lighting and air conditioning consume the majority of energy. Rapacciolli said that Nicaragua is in the forefront within Central America of efforts to increase the use of energy efficient products. Shuyan Delgado, head of the energy efficiency office of the MEM, spoke of the “great benefits” the regulations will have “to reduce electricity use by high consumption equipment and to reduce the use of oil.” Rapacciolli also declared that with a loan of US$2.9 million from the Inter-American Development Bank, his ministry was able to conduct 48 energy audits and three feasibility studies which will save up to 7.5 million kilowatt hours of electricity per year representing annual savings of US$2.8 million. (Radio La Primerisima, Jan. 24; La Prensa, Jan. 24)
5. Beekeepers certified as organic producers
In order to become more competitive in the national and international market, 206 beekeepers from eight cooperatives throughout Nicaragua were recently certified in organic honey production. Shifting to production of organic honey will likely lead to increased exports in the sector and also yield a greater profit for producers. On average, organic honey is valued at a price that is 20-25% higher than that of non-organic honey, according to Roberto Brenes of the Center for Exports and Investments (CEI). Moreover, organic certification guarantees that the honey is healthier and of a higher quality.
The program was funded by the Swiss Foundation for Technical Cooperation and a CEI project that has funding from the Netherlands. The beekeepers were from various parts of the country including the municipalities of Achuapa, Villanueva, El Sauce, Managua, León, Carazo and Boaco. Currently, most producers are small family businesses; however, beekeeping is beginning to generate seasonal employment as well during each one of its six annual cycles of production.
According to Jaime Picado of the certifying group Biolatina, "There are now 430 beekeepers in all of Nicaragua, who, with their 15,000 hives, produce close to half-a-million kilos of honey." (La Prensa, Jan. 25)
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