TUESDAY, MAY 20, 2014
Nicaragua News Bulletin (May 20, 2014)
1. On Sandino’s birthday, Ortega proposes national accord to eradicate poverty
2. IMF team gives Nicaragua good marks
3. Government-business delegation returns from US; Campbell wants “mature relationship”
4. US peanut subsidies threaten jobs and exports in Nicaragua
5. UN Subcommittee recommends improvement in detention centers
6. Government works to ameliorate climate change
7. New affordable housing law goes into effect
8. Nicaragua to be represented in DC at Free the Cuban Five forum
1. On Sandino’s birthday, Ortega proposes national accord to eradicate poverty
In a speech marking the 119th birthday of national hero Augusto Sandino on May 18, President Daniel Ortega proposed a long term national accord to eradicate poverty in Nicaragua which he said affects 42% of Nicaragua’s six million citizens. He said, “I want to officially present to the private sector and to the workers an alliance in which we work on a long term plan … combining the activities of the private sector and the public sector along with foreign investment in a way that will permit us all to bring Nicaragua out of poverty and take the country up the rungs toward a dignified life for all our families.” Speaking in Niquinohomo, the birthplace of Sandino, Ortega said that a government is more powerful when it guarantees the participation of the people and “thanks be to God, we have advanced in that, building a grand alliance between workers, producers, cooperatives, free trade zone workers, private and public sector workers, without distinctions based on party affiliation, all united to make Nicaragua a better homeland for all families.” He stated that in a multipolar world Nicaragua must form alliances and define projects for the short, medium and long term that permit the country to insert itself into the global economy. He added that, “We would be doing nothing more than converting Sandino’s ideas into reality—his dream that the people of Nicaragua could have dignity and be lifted out of misery.”
The Informe Pastran called the proposal “unprecedented” and reported that business leaders were analyzing the president’s statements. The Informe noted that business leaders had met with Ortega in 2007 where they proposed several possible “axes of development to move the country forward.” The Informe Pastran went on to say, “Sandinismo began to have a better understanding with the private sector and businesspeople added the subject of poverty [alleviation] to their discourse instead of just macroeconomic growth.”
Dr. Gustavo Porras, coordinator of the National Workers Front (FNT) and a National Assembly deputy, accepted the challenge saying that the struggle against poverty was the struggle of workers, farmers, businesspeople, of all Nicaraguans. Government spokesperson Rosario Murillo said on May 19 that the government would prepare a National Production Plan that would be presented for consultation with all sectors.
Also in his May 18the speech, Ortega said that there have been efforts orchestrated by the right to destroy the Bolivarian Revolution in Venezuela with rumors flying about a coup attempt expected for June. However, Ortega said, such attempts will fail just as the 2002 coup failed. He added that the Bolivarian Revolution had brought benefits not only to the people of Venezuela but also to the peoples of the Americas and the world. (Radio La Primerisima, May 18, 19; Informe Pastran, May 19)
2. IMF team gives Nicaragua good marks
The International Monetary Fund (IMF) team completed its eight day mission in Nicaragua on May 14 with the group’s chief Przemek Gajdeczka noting that, “In the last few years the economy of Nicaragua has grown at relatively high rates while at the same time strengthening macroeconomic stability. In 2013, the gross domestic product (GDP) grew 4.6% and inflation for the year was 5.7%. In spite of a slowing in tax revenues, public sector deficit was consolidated in line with the budget and public debt has continued to decline.” The IMF predicted a growth of 4.3% for the current year. Gajdeczka said that Nicaragua does not currently have any internal threats but there could be external problems if there were to be a slowdown in the global economy or changes in the availability of international financing. IMF recommendations included “strengthening public finances, modernizing the functioning of the financial system, [and] advancing efforts to change the matrix of electricity generation.” At the same time, the recent changes made to the social security were praised as having strengthened the system.
Central Bank president Ovidio Reyes said that, “It was a positive evaluation.” He added that the de-dolarization of the economy, which had been floated by the government in the days before the IMF visit, had been postponed. “We cannot go against the current,” he said, adding that many contracts are fixed in dollars and the dollar circulates freely in the Nicaraguan economy. “It is a reality that we live with the two currencies [córdobas and dollars],” he stated.
Arturo Cruz Sequeira, former ambassador to the United States and a professor at the INCAE business school, said that the Ortega government has been better at carrying out free market macroeconomic policies with discipline and clear objectives than the Liberal party governments that preceded him. Cruz called it “responsible populism” and said that Ortega “has used the resources from Venezuela to resolve multiple immediate needs of the country and at the same time, within the formal budget, he has handled the economy with great responsibility, within the IMF program,” and has achieved “an equilibrium, satisfying the immediate needs of the people without risking the macroeconomic future.” (Informe Pastran, May 14; La Prensa, May 14)
3. Government-business delegation returns from US; Campbell wants “mature relationship”
A delegation of government officials and businesspeople returned from a visit to Washington, DC, last week saying that they had had an opportunity to meet with US officials. Included in the group were Gen. (Rt.) Alvaro Baltodano, advisor to President Daniel Ortega on investment, Jose Adan Aguerri of the Superior Council on Private Enterprise (COSEP), and Cesar Zamora of the Association of American Chambers of Commerce in Latin America. The delegation met with the Deputy Assistant Secretary for Central America and the Caribbean at the State Department and the Deputy Assistant Secretary for Latin America at the Department of Commerce where they were able to express the concerns that Nicaragua has about US policies concerning peanuts and tobacco, two of Nicaragua’s principal exports which may be affected by changes in US farm policy. Zamora said that the relationship with the US is important because of remittances coming to Nicaraguan families from the US, investments, exports, and the various aspects of the Central American Free Trade Agreement (CAFTA). He said both government and business representatives expressed their points of view “which were not the same, but we made clear that in Nicaragua we try to find the necessary consensus for us to achieve the economic development that the country requires.” He stated that it was important for the business community that relations between the Nicaraguan and US governments “come out of the freezer and move toward more fluid relations.” He said that President Daniel Ortega was a factor for stability in the Central American region and that the government of Nicaragua had “acted with great responsibility in the areas” of drug trafficking and organized crime.
In an interview on the web blog Foreign Policy News, Nicaraguan Ambassador to the US Francisco Campbell said that, “An effort is underway to build for the first time a mature, constructive relationship between the United States and Nicaragua, based on mutual respect.” He said that it was not an easy task noting that, “The history of interventions, impositions and aggression has shaped perceptions as well as suspicions about intentions on both sides. This is why Nicaragua – U.S. relations are often described as ‘difficult.’” He continued saying, “Intransigent voices that want to dictate rather than listen have inhibited understanding and the nurturing of empathy for the aspirations, hopes and dreams of the other. This is why we believe that to build a mutually beneficial relationship the smoky lens of ideological prejudice must be removed, so as to squarely focus our attention on issues of fundamental importance to the safety and well-being of our two countries and peoples.”
The United States imported US$606 million in goods from Nicaragua last year, 25% of the nation’s exports, while the total of investment from the US was US$405 million or 29% of total foreign direct investment in the country for the year. The principal products exported to the US were coffee, gold, beef, lobster, and sugar, however, exports of automobile chasses, tobacco, ornamental plants, palm oil, and farm grown shrimp are growing. Also, Nicaragua is the 11th largest exporter of garments to the US. (Informe Pastran, May 15, 16; Radio La Primerisima, May 15; http://foreignpolicynews.org/
4. US peanut subsidies threaten jobs and exports in Nicaragua
Peanut subsidies in the US Farm Bill have peanut producers in Nicaragua worried about the future of Nicaragua’s sixth largest export commodity. According to the Nicaraguan American Chamber of Commerce (AMCHAM), 22,000 Nicaraguans depend directly on the peanut harvest for their jobs which produce US$105 million in annual sales from roughly 130,000 acres in production. Nicaragua’s AMCHAM has already been in touch with Argentina’s AMCHAM about possible legal actions that can be taken to stop US agribusiness from “dumping” peanuts on the international market. Argentina and Nicaragua are the Latin American countries that would be most affected by US peanut dumping at below market prices which would prevent Nicaragua and Argentine producers from competing.
The World Trade Organization (WTO) defines dumping as occurring when “the price of a product when sold in the importer state is less than the price of the product sold in the market of the exporter state.” Nicaraguan’s Superior Council of Private Enterprise (COSEP) is concerned that the US subsidy for its peanut producers will stimulate over-production which will depress the price of peanuts on the world market. Currently Nicaragua has a guaranteed price of US$535/ton for peanut sales to the European Union and the global market price is US$22/hundredweight (US$440/ton). Nicaraguan producers say if the US subsidies drive global prices much below that, Nicaraguan producers will be unable to compete. (El Nuevo Diario, May 13, 19)
5. UN Subcommittee recommends improvement in detention centers
A mission from the United Nations Subcommittee for Prevention of Torture visited Nicaragua last week and expressed concern about the crowding of prisoners in the nation’s jails. The delegation visited 12 police stations and five prisons, including the principal prison known as “the Modelo” in Tipitapa and the women’s prison. In the latter two installations, new construction is going on to ease some of the crowding and provide better facilities. The delegation also met with President Daniel Ortega. “The current situation of those persons deprived of their freedom in Nicaragua is extremely worrying,” said Enrique Font, head of the team, through a communique. He continued, “We are confident that our findings and recommendations will be used by the government of Nicaragua to eliminate any form of mistreatment in [detention centers] and to improve the conditions in which detainees find themselves.” The recommendations are being turned over to the government in a confidential report. The communique noted that the subcommittee’s work would continue with the Office of the Nicaraguan Human Rights Ombudsman and that that office “must play an active role in the prevention of torture and mistreatment of detained persons by means of periodic visits to jails and prisons following the Subcommittee’s recommendations.”
According to its web page, the Subcommittee on Prevention of Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (SPT) was established under the provisions of the Optional Protocol to the Convention against Torture which was adopted on December 2002 by the General Assembly of the United Nations and entered into force in June 2006. The SPT is composed of 25 independent and impartial experts from various regions of the world. Members are elected by states that are parties to the Protocol. (El Nuevo Diario, May 17; La Prensa, May 16; Radio La Primerisima, May 17; Informe Pastran, May 16; http://www.ohchr.org/EN/HRBodies/OPCAT/Pages/OPCATIntro.aspx)
6. Government works to ameliorate climate change
Hilda Espinoza, director of Environmental Quality at the Ministry of Environment and Natural Resources (MARENA), reported on an on-going project of the Sandinista government to cut greenhouse gas emissions by replacing old air conditioning systems with more efficient and eco-friendly systems in hospitals, health centers, and public institutions. She said the government recently replaced two million light bulbs and 40,000 street lights with energy efficient bulbs. Nicaragua tops the list of countries working with a UN initiative, Sustainable Energy for All, to mitigate the effects of climate change. Currently 60% of Nicaragua’s electricity is generated from renewable sources according to the Informe Pastran.
Last week Nicaragua’s Environmental Minister joined other Central American environmental ministers in San Salvador to discuss a regional strategy to confront climate change with international foreign aid agencies including those of Spain, Germany, the US, and Japan. Central America Integration System (SICA) Secretary General Hugo Martinez said to the group, “Climate change magnifies the social, economic, and environmental problems of our countries. The constant natural phenomena multiply their negative effects over people, communities, and societies in conjunction with effects on health, production, infrastructure, and the quality of life of our inhabitants.”
The Nicaragua Network/Alliance for Global Justice is organizing a delegation Aug. 3-12, 2014, to examine the effects of climate change in Nicaragua and the programs the Sandinista government is implementing to mediate those effects. For more information, send an email to Chuck@AFGJ.org. (Informe Pastran, May 13; El Nuevo Diario, May 15)
7. New affordable housing law goes into effect
President Daniel Ortega announced that he has signed the new affordable housing law passed by the National Assembly. He said that the law will permit “more Nicaraguans to build a house, from the poorest sectors to the middle sectors,” because the top price for a subsidized house was raised from US$25,000 to US$32,000 and interest rate subsidies increased. For example, if a family bought a US$25,000 house last month at 9.5% interest the family would make monthly payments of US$234 for 20 years. Now, with the new law in place, the family buying the same house at the lower 7% interest will pay only US$198.92 per month with a savings over the life of the 20 year mortgage of US$8,400. (Informe Pastran, May 19; El Nuevo Diario, May 16)
8. Nicaragua to be represented in DC at Free the Cuban Five forum
National Assembly First Secretary Alba Palacios will travel to Washington, DC to participate with other international parliamentarians in a world forum calling for freedom of the three members of the Cuban Five still serving long terms in US prisons. This 3rd forum of denunciation and solidarity, “Five Days for the Cuban Five” will be held from June 4-11. Gerardo Hernandez, Antonio Guerrero, Rene Gonzales, Ramon Labañino, and Fernando Gonzalez, were detained in Miami in 1998 after Cuba turned over evidence to the US government they had gathered by infiltrating anti-Castro terrorist groups. Rene and Fernando have been released after serving sentences for “espionage”, but the other three still face long prison terms, including life sentences. Participants in the conference will meet with members of the US Congress to seek their intervention with President Obama to release the three remaining political prisoners. Palacios said, “We hope that the voice of the world, and North American organizations, will be able to be heard.” (Informe Pastran, May 19; Radio La Primerisima, May 19)
Labels: Nicaragua News Bulletin