Nicaragua Network

1. Holiday briefs: Bishops call to support family; 70,000 come home from Costa Rica; Christmas lottery winners from poor barrios; fireworks stand explodes in Matagalpa
2. Government makes public changes to Social Security regulations
3. Group lists “people of the year” for 2013
4. Nicaraguan Army continues search for sailors lost at sea in small vessel
5. Nicaragua requests cancellation of INTERPOL warrant against Pastora
6. Roads in RAAN reopened after heavy rains cut off areas
7. Nicaraguan workers buying power held steady in 2013
8. Honey production is an emerging industry
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1. Holiday briefs: Bishops call to support family; 70,000 come home from Costa Rica; Christmas lottery winners from poor barrios; fireworks stand explodes in Matagalpa

In his message to the faithful on Christmas Eve, Managua Archbishop Leopoldo Brenes called on Nicaraguans to “Make this time of Christmas a moment to be with families and strengthen family life together.”  He noted that Nicaraguans may lack many material things, “but where there is affection, love, [and] fraternity, that is enough to be happy.”  The end of year message of the Catholic Bishops Conference was similar if more political.  The bishops said that they had noted that the country has seen “constant changes in its social structures…product of post-modernity that have affected all persons… who receive as solutions to their daily problems seductive proposals that compromise truth and the dignity of the human person, naturally affecting the family.”  The message went on to refer to “campaigns in support of abortion” based on “egoism and individualism” and motivated by “foreign models.”  The bishops blamed these societal changes for a long list of ills, including “divorce, single parents, domestic violence, unemployment, insecurity, alcoholism, drugs, prostitution, sexually transmitted diseases, spiritual emptiness, lack of satisfaction with life, and a crisis in human, moral and Christian values.” In answer, the bishops promised to evangelize and promote and accompany families in their human and spiritual development and called on all persons of good will to join “in defense of the family and of life in the year 2014 which we have decided to call ‘The Year of the Family.’”

Meanwhile, Costa Rican migration authorities reported that 71,000 people had crossed into Nicaragua at the Peñas Blancas border crossing between Dec. 1 and 23, the vast majority of them Nicaraguans returning home for the holidays. With the crossing post open for 24 hours between Dec. 22 and 23, there were no incidents and each individual spent only an average of 35 seconds to be checked through and have his or her passport stamped, according to Costa Rican authorities.  Many people rode one public bus in Costa Rica to the border, walked across and then caught another bus on the other side to their destination in Nicaragua.  Approximately 300,000 Nicaraguans live and work in Costa Rica.

In other news, the National Lottery reported that the Christmas “fat one,” worth US$1.12 million, was won by a number of people from poor neighborhoods in Managua.  The winning ticket was sold by Julia Lopez, who has been selling lottery on the streets of Managua for twenty years and who will receive a prize herself.  “I am content to have brought happiness to many people,” she said with tears flowing.  Lottery tickets can be divided into as many as 20 pieces and on Dec. 27 one person had appeared with three parts of the ticket to receive a check for US$160,000 at a brief ceremony at the Lottery’s Palace of Luck building in Managua.

A total of 52 people were injured in fireworks accidents by Dec. 30, according to Carlos Saenz, head of epidemiology at the Health Ministry, down from 99 for the same period last year.  Of those, 31 were children under nine years of age.  However, there was one fatality. On Dec. 29 in Matagalpa a stand selling fireworks to greet the New Year exploded and set fire to eight other stands resulting in the death of the owner of the first stand and the loss of possibly thousands of dollars in fireworks.  One of the fireworks stand owners, Blanca Garcia said that, while they had fire extinguishers and barrels of sand and water, according to regulations, “at that moment we didn’t use any of it as we knew we couldn’t stop [the fire] and people just ran to save themselves.”  (La Prensa, Dec. 25, 29; Informe Pastran, Dec. 30; El Nuevo Diario, Dec. 26, 28; Radio La Primerisima, Dec. 30)

2. Government makes public changes to Social Security regulations

On Dec. 24, National Assembly Deputy Dr. Gustavo Porras, head of the National Workers Front (FNT), announced the agreement by business, labor, and the government on changes to the regulations governing the nation’s social security system.  Retirement age will be kept at 60 years and the amount of time a worker must pay into the system will remain the same at 14 ½ years.  But, employers will begin to pay 1% more than the current 16% of each worker’s salary into the system during 2014 and 2015; half a percent more in 2016 and another half percent in 2017 until the rate of 19% is reached.  This payment will be deductible from a business owner’s income tax.  The employee contribution will not change.

Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), said that, accusations to the contrary, the business community would not pass the increase in management’s contribution to social security on to consumers.  Earlier in the week, Aguerri had confirmed the consensus on the 1% but said that there was no agreement yet on some other points.  He said that business is concerned about the agreement to allot smaller pensions to those who did not pay into the system the full 14 ½ years as well as the government’s tendency to add pensions for war victims, mothers of heroes and martyrs, retired police officers and others to the social security system. 

Presidential economic advisor Bayardo Arce repeated the promise of several months ago that the government would honor its US$500 million debt to the social security system that dates from as far back as the 1970s.  He said that in January President Daniel Ortega would send to the National Assembly a bill that would authorize US$10 million each year from government revenues to be paid to the Nicaraguan Institute for Social Security (INSS) to “help keep the system afloat.”

Luis Barboza, head of the CST-JBE, a Sandinista union federation, said that besides increasing the employer contribution by 3%, it was necessary to increase the number of workers paying into the system by bringing more of the workers in the informal sector into the formal sector.  He said that unions would insist that in 2014 the Assembly pass a law on contractors “because we need to reinforce the idea that the businesses that are in the informal sector can become part of the formal sector to the benefit of the INSS and of workers in general.”

The Central Bank announced that between January and October of 2013, 26,000 new formal sector jobs were created and the INSS announced that 4,600 new workers were signed up to the social security system just in October.  This brings the total number of workers paying into the social security system to 677,700.  This is an increase from 578,300 in 2011, according to the Central Bank.  (La Prensa, Dec. 18, 25; El Nuevo Diario, Dec. 24; Informe Pastran, Dec. 20, 23, 26)

3. Group lists “people of the year” for 2013

The media was full of reviews of the year’s events which were many and notable, including the granting of a concession to a Chinese businessman to study the feasibility of a shipping canal across Nicaragua and the amending of the country’s constitution.  Consultants for Development (COPADES), headed by economist Nestor Avendaño, announced its choices for persons of the year for 2013 on Dec. 30. President Daniel Ortega was COPADES’s Politician of the Year “for his respect for the rulings of the International Court of Justice [World Court] and his statesmanlike positions in the face of the border problems with Costa Rica and Colombia.”

President of the Supreme Court Alba Luz Ramos was named Woman of the Year for her work “to improve the functioning of the judicial branch.” Man of the Year was Managua Auxiliary Bishop Silvio Baez “for his rectitude, courage, and constructive criticism with the desire to contribute to the solution of Nicaragua’s socioeconomic problems.”  Government Official of the Year was Javier Chamorro, Director of the Agency for the Promotion of Investment in Nicaragua (ProNicaragua) “for increasing foreign direct investment from US$1.28 billion in 2012 to US$1.5 billion in 2013.”  COPADES’s choice for Business Leader of the Year was Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP) for his work to establish “an alliance of the government with small, medium, and large scale businesses and with workers under a permanent dialogue in search of consensus.” (Informe Pastran, Dec. 30)

4. Nicaraguan Army continues search for sailors lost at sea in small vessel

Lieutenant Colonel Marvin Ortega of the Naval Force of the Nicaraguan Army said on Dec. 28 that the search for the four sailors lost in a small vessel in the Caribbean on Dec. 6 continues.  The last word from the sailors was on Dec. 6 when they were 84 nautical miles northeast of the Miskito Cays and reported being capsized by a three meter high wave. Along with vessels belonging to Nicaragua, ships and planes from the United States, Honduras and Colombia have assisted in the search which so far has produced no sign of the men or their boat. The four were patrolling in the part of the Caribbean that Nicaragua gained back from Colombia as a result of a November 2012 decision of the World Court. (Radio La Primerisima, Dec. 28; Informe Pastran, Dec. 30)

5. Nicaragua requests cancellation of INTERPOL warrant against Pastora

Commissioner Aminta Granera, head of the Nicaraguan Police, asked the International Criminal Police Organization (INTERPOL) to annul the arrest warrant, known as a “red notice,” it had issued in October against Nicaraguan Eden Pastora at the request of Costa Rica. According to Granera, Pastora works for the government of Nicaragua in the dredging of the San Juan River and did not violate any Costa Rican law because “the territory in which the crimes were supposedly committed is currently the object of a boundary dispute between the two countries” at the International Court of Justice (World Court).  In November the Court issued preliminary measures in the case asking Nicaragua to fill a channel that Pastora had dug in the area in dispute, an operation which Pastora has completed.

Granera went on to say that the bad faith with which the Costa Ricans had acted threatens “the neutrality of the organization” by using it for “its own political ends.”  She also asked the Secretariat of INTERPOL to “without delay” notify the offices of the member nations about the cancellation of the “red notice” against Pastora. 

Meanwhile, Costa Rican Foreign Minister Enrique Castillo said, “We’ll see the results but we are convinced that INTERPOL will let the order stand.”  He went on to say, “That petition by Nicaragua is strange and based on bad arguments such as saying that Costa Rica acted in bad faith.  They are used to manipulating the Central American Court [which Costa Rica does not recognize] and they believe they can do the same with INTERPOL.” (El Nuevo Diario, Dec. 26; Informe Pastran, Dec. 30)

6. Roads in RAAN reopened after heavy rains cut off areas

Officials reported that roads were open and a damaged bridge repaired after heavy rains in the North Atlantic Autonomous Region (RAAN) cut Bilwi and much of the RAAN off from the rest of the country. Ferry service to carry vehicles across the Wawa River was also reopened. Heavy crop damage was reported in the area. The Bilwi Municipal Committee for the Prevention, Mitigation and Response to Disasters (COMPRED) said that relief to affected residents was not immediate because there was no gasoline in Waspam and vehicles from Bilwi had not been able to reach the area because the roads were flooded. They also lack resources to deal with the aftermath. The national disaster agency SINAPRED said it will assume responsibility and Col. Rogelio Flores, head of Civil Defense for the Army, said that the disaster was not national and that government resources are sufficient to handle recovery. He said those who lost crops will receive assistance. The World Food Program of the United Nations also offered help if requested. (Radio La Primerisima, Dec. 27)

7. Nicaraguan workers buying power held steady in 2013

The International Labor Organization (ILO) said in a report that Nicaraguan workers maintained their buying power this year thanks to an 8.2% increase in the minimum wage. Nicaragua was third in the increase in minimum wage in the hemisphere behind Bolivia (12.8%) and the Dominican Republic (10.2%). The minimum wage overall in Latin America increased by 2.6% in the last quarter of the year according to the ILO. That was a significant decrease from the 6.9% raise in the same period of 2012. Most Latin American workers saw only minor increases in their paychecks in 2013. Mexican workers had it the worst with an increase of only 0.1%. Nicaragua’s minimum wage is US$140 a month, while the “basic basket” of goods, a measure comparable to Cost of Living in the US, is $250 per month. (Radio La Primerisma, Dec. 25; Informe Pastran, Dec. 26)

8. Honey production is an emerging industry

Nicaraguan bee keepers hope to produce 1,000 tons of honey in the 2013-14 harvest season according to Jose Bermudez, president of the National Bee Keepers Commission. He said that is a 200 ton increase over last year due to the good rainy season which enabled the bees to collect more nectar. Eighty percent of Nicaragua’s honey is sold to Canada, Germany, and the US according to Bermudez. The rest is consumed domestically.  There are 1,500 bee keepers with most of the honey produced in the departments of Leon, Chinandega, Boaco, Matagalpa, Madriz, Nueva Segovia, Esteli, and Managua. Recently producers have begun operating in the southern part of the country, including in Masaya, Granada, and Rivas. Producers are asking for bank credit so they can expand their operations. Bermudez said that he has recently had discussions with the Ministry of Agriculture and Forestry about support for this emerging industry. Bee keepers have had access to micro-credit but not other types of loans. (Radio La Primerisima, Dec. 27)