Nicaragua Network

1. CELAC meets in Costa Rica with 33 leaders in attendance
2. Motorcycles deaths rise; Police launch Road Safety Campaign
3. Economic briefs: beef exports, minimum wage talks, coffee harvest, artisanal fishing
4. Assembly passes human trafficking law
5. Teacher pay increase announced
6. Affordable housing construction to grow in 2015
7. Director of World Food Program receives recognition

1. CELAC meets in Costa Rica with 33 leaders in attendance

The Community of Latin American and Caribbean States (CELAC) held its third summit meeting in Belen, near San Jose, Costa Rica, on Jan. 28 and 29 with the presence of 33 heads of state and government. The leaders approved a plan of action that promised work toward the eradication of hunger and poverty in the region and toward improving living conditions for the region’s peoples. The gathering also approved 27 special declarations including a declaration that expressed support for Venezuela and that condemned the destabilization plans against that government. Also approved were a demand for an end to the economic, financial, and trade embargo against Cuba which also urged US President Barack Obama to use his executive powers to modify the embargo along with declarations of support for the Colombian peace process and for the efforts of Argentina to restructure its debt and to reclaim the Malvinas Islands.

In his speech, Ortega condemned the blockade against Cuba and coup conspiracies against Venezuelan President Nicolas Maduro and expressed his support for Puerto Rican independence. He said, “Democracy is not valued by the Yankee; for the Yankee it is only force; because this is the Yankee’s back yard and faced with the strengthening of the different regional forums, in particular CELAC, the Yankee continues conspiring and wants to weaken, divide, destroy this forum.” He said that the US wants to repeat in Venezuela the 1973 coup in Chile. He said, “Dear President Bachelet, they want to repeat the history of Chile with Venezuela. They want to apply, they are applying, the same script. They are applying it now! …. They have not renounced that principle of ‘America for the Yankee.’”

News reports from San Jose highlighted an interchange that then occurred between Ortega and the host, Costa Rican President Luis Guillermo Solis, when Ortega ceded the microphone to Ruben Berrios, president of the Puerto Rican Independence Party. Berrios asked the forum to adopt a series of measures in support of Puerto Rican independence. After Berrios spoke, Solis said that by ceding his time to Berrios, Ortega had broken with summit procedures. He said that CELAC “has procedures in place for adopting resolutions.” Ortega then interrupted Solis to say, “The voice of Puerto Rico is the voice of Nicaragua” and he asked for “a little respect” for Berrios. Ortega noted that under those procedures Solis had given the microphone to a representative of the Organization of the American States, “an instrument of Yankee colonialism.” Later, Solis cancelled a closed–door meeting of the presidents because Ortega had returned to Nicaragua and left Berrios in his place to represent Nicaragua at the meeting. Solis was supported in his decision by the in-coming president pro tem of CELAC, Ecuadoran President Rafael Correa, who said, “We love Nicaragua very much; we love Puerto Rico very much” but to have Berrios in a private meeting of the heads of state of CELAC “would have set a bad precedent.”

Upon returning to Nicaragua, Ortega named Berrios as advisor to the president on international policy and decolonization affairs. Berrios said, “I hope to be worthy of this privilege. We will all see each other at the Summit of the Americas in Panama [April 10-11] where, as an advisor to Daniel, I will be speaking for the independence of my country.” (Radio La Primerisima, Jan. 28, 29; El Nuevo Diario, Jan. 29, 31; La Prensa, Jan. 29, 30; Informe Pastran, Jan. 29)

2. Motorcycles deaths rise; Police launch Road Safety Campaign

National Assembly Deputy Filiberto Rodriguez said last week that there would be no change in traffic law to please motorcyclists who have been protesting tickets, fines, and impoundments of their motorcycles for traffic violations. Rodriguez said, “The motorcyclists’ position is not one where they can demand that we reform the law because they are the ones who provoke the most traffic accidents and also those who most often die in those accidents are precisely the motorcyclists.”  Police Commissioner Juan Valle said that while police operations on the streets of Managua were directed at all drivers, there was a special focus on motorcycle riders because they were the ones who violated the traffic laws the most. He said that officers continued to see riders without helmets and whole families riding on one motorcycle. According to the National Traffic Office, there were more than 600 traffic deaths in Nicaragua last year with 200 of those being motorcyclists. The main causes were illegal turns, alcohol, and excessive speed. Deputy Director of Transit Norman Castillo said that the number of motorcycles in Nicaragua had grown from 50,000 a few years ago to 250,000 today.

On Jan. 28, the National Police launched the 2015 Road Safety Campaign with the goal of reducing the high rates of accidents and deaths on the country’s streets and roads. National Police Deputy Director Francisco Diaz said that the campaign strategy was to promote a culture of safety and prevention among drivers, passengers, and pedestrians. Components of the campaign will include safety education for primary and secondary school students, training of public transportation workers, education of motorcyclists, work with student traffic brigades, and vehicle inspections. On the weekend of Jan. 3 - Feb. 1, police increased vigilance on streets and highways around the country as part of the campaign. Valle called on drivers to slow down and not drink and drive adding that there would be zero tolerance for drivers violating the law.

Meanwhile, motorcycle riders organized their second protest making demands for an end to expensive fines and for changes to the traffic law. Participants called the Road Safety Campaign “a witch hunt.” The first protest caravan was held on Jan. 4 and degenerated into violence. Carlos Kabistan, one of the leaders of the Feb. 2 march, said that a bill to change the law would soon be introduced in the Assembly. He proposed that only the motorcycles of those found to be driving while intoxicated or who had no license should be impounded and that fines, which he said were currently too high, should be imposed based on the ability to pay of the individual. He said that the protest movement had collected 5,000 signatures demanding reforms. (El Nuevo Diario, Jan. 27; Radio La Primerisima, Jan 28, 31; Informe Pastran, Jan 30, Feb. 2; La Prensa, Feb. 1, 2)

3. Economic briefs: beef exports, minimum wage talks, coffee harvest, artisanal fishing

In 2014, beef was Nicaragua’s principal export, displacing gold for the top spot. Coffee continued in third place, displaced these last two years by the effects of the coffee rust plague, after having occupied first place for decades. The value of beef exports was US$483.8 million while coffee brought in US$378.7 million. Industrial meat plants process 790,000 animals per year for export and municipal slaughterhouses process 48,000 for domestic consumption, according to Onel Perez, director of the Nicaraguan Chamber of Beef Export Plants. The increase in export value is partly due to a rise in beef processing in Nicaragua and a corresponding decline in the export of beef cattle on the hoof. The principal importers of Nicaraguan beef were the United States which imported 50,000 tons and Venezuela with 19,600 tons. Exports to Venezuela dropped in 2014 but are expected to rise again in 2015.  (La Prensa, Jan. 30; El Nuevo Diario, Jan. 29)

No progress has been made in ongoing tripartite minimum wage talks between the government, the business sector, and labor unions. Luis Barboza, general secretary of the CST-JBE federation told reporters that the Superior Council of Private Enterprise (COSEP) was showing a lack of respect for the talks by not presenting a proposal. “Jose Adan Aguerri [COSEP president] is playing a game; he wants us to agree to a minimum wage for two years but he won’t get that from us,” Barboza said. He proposed signing right now an agreement with the small business and rural sectors on the margin of talks with COSEP.  (Informe Pastran, Jan. 29)

Nicaraguan coffee growers have sold approximately half of this year’s harvest either on the coffee futures market or to local exporters, according to Jose Angel Buitrigo, president of the Association of Coffee Exporters of Nicaragua (EXCAN).  Production for this 2014-2015 harvest is expected to exceed two million hundredweights. Growers have been able to take advantage of a good price on the world market—between US$170 and US$200 per hundredweight, according to Aura Lila Sevilla, president of the Matagalpa Coffee Growers Association. However, after subtracting between US$27 and US$30 per hundredweight for processing, the grower might receive only between US$140 and US$170. Frank Lanzas, also of Matagalpa, said that this year’s harvest may be down about 20% from last year because of the continued effects of the rust plague and the slow pace of renovation of coffee groves. Because of climate variations, the harvest at high altitudes may not be completed until March or April. (Radio La Primerisima, Jan. 29; La Prensa, Feb. 2)

The government, through the Nicaraguan Institute for Fisheries and Aquaculture is providing US$362,638 in funds for a program to revive artisanal fishing in Monkey Point in the South Caribbean Autonomous Region. The project includes the construction of a dock, a collection station, an ice production plant, a generator, fishing equipment and working capital. The project will benefit five fishing communities with 1,250 families. Seventy-three associates formed the New Vision Cooperative for Artisanal Fishing and Multiple Services and will administer the project. So far, 15 fiber glass boats, 15 outboard motors, 61 fishing nets, navigation equipment, life vests, tables, scales, aprons, and boots have been turned over to the local fishermen and women. Construction of the plant and further distribution of equipment are expected to be completed by the end of February. (Radio La Primerisima, Jan. 27)

4. Assembly passes human trafficking law

The National Assembly gave final passage to a law on human trafficking which mandates a prison term of up to 20 years for those found guilty of the crime. The law includes trafficking in persons for slave labor and prostitution and also trafficking in babies and children for illegal adoptions and trafficking in organs, among others. Carlos Emilio Lopez, chair of the Committee on Women, Youth, Children, and the Family, said that penalties are more severe if the trafficked person is handicapped, under 18 or over 60, or is a member of an indigenous or Afro-descended group. The law mandates the keeping of a data base of cases and their progression through the legal system to be run by the National Coalition against Human Trafficking which will also be charged with formulating policy to carry out the law. Deputy Filiberto Rodriguez, chair of the Peace, Defense, Governance, and Human Rights Committee, said that under the law, authorities will be able to confiscate the property and money of those convicted of human trafficking if it can be proved that they were gotten through the illegal activity and those funds can be used to help the victims. Rodriguez added that the government must provide funding for the agency to carry out the functions laid out in the law. (El Nuevo Diario, Jan. 29)

5. Teacher pay increase announced

Jose Antonio Zepeda, general secretary of the Confederation of Nicaraguan Education Workers (ANDEN) announced that 98% of teachers and administrators, 57,856 workers, will receive a 9% raise beginning Feb. 9.  He noted that this is the ninth straight year that the Sandinista government has awarded raises to education workers, raising the base salary by 50%. He said the basic monthly salary will range from US$225 for preschool teachers to US$239 for secondary teachers. Professional credentials and number of years teaching are also recognized and can add to that basic salary. Nicaragua has the lowest teacher salaries in Central America where the basic basket of goods (equivalent to cost of living) is more than $500. [The basic basket does not compare directly with that of other countries in the region because Nicaragua includes more products. Also, Nicaraguan schools run in two half-day shifts with many teachers teaching both shifts and thus doubling their salary.] Teachers and other low salary government workers also receive a US$50/month “solidarity bonus”. However, Juan Jose Rodriguez of an independent teachers’ union said that teachers in his union had hoped for 16.5% increase to match the rise in the cost of food. Meanwhile, Zepeda of ANDEN cited three aspects of the continued improvement of education: 1) significantly improving school infrastructure, especially classrooms; 2) training and professional improvement of teachers; and 3) improving the living conditions and salaries of teachers. (Informe Pastran, Jan. 30; Radio La Primerisima, Jan. 29; La Prensa, Feb. 1)

6. Affordable housing construction to grow in 2015

The reform of law 677 – The Special Law for the Promotion of Construction of Social Interest [Affordable] Housing – in mid-2014, is setting off a building boom in 2015 with 13,978 modest houses scheduled to be built in partnerships between the national and municipal governments and private construction companies, according to Judith Silva, director of the Institute for Urban and Rural Housing. In 2012, 2013, and 2014, a total of 34,240 affordable houses were built under the program. The 2014 change in the law raised the top price for affordable housing covered by government low-interest loan guarantees from US$20,000 to US$32,000. The modest homes are between 390 and 650 sq. feet.

Hector Lacayo, vice-president of the Nicaragua Chamber of Developers (CADUR), said that the organization is committed to social housing making up 60% of its members’ offerings. Ricardo Melendez, president of CADUR, noted that prices are stable, with only a 3% rise in the price of cement at the beginning of the year and a probable increase in the cost of labor. Social housing is a Sandinista government program to promote dignified home ownership for low income families such as teachers, police, firefighters and others who can make a 10% down payment with the help of a $2,000 subsidy. The government also offers an interest rate reduction of between 2.5% and 3.5% applied to the mortgage interest rate offered by the bank. Housing has also been used in the past by the government to indemnify former banana workers affected by the pesticide Nemagon, former residents of the La Chureca dump, and families flooded out of low-lying areas near Lake Managua.. (El Nuevo Diario, Jan. 30)

7. Director of World Food Program receives recognition

Foreign Minister Samuel Santos, representing President Daniel Ortega, presented Helmut Rauch, Nicaragua director of the World Food Program, with the Order of Jose de Marcoleta, grand cross grade. Santos recognized the contribution of the World Food Program (WFP) in the struggle against poverty, hunger, and malnutrition in Nicaragua.  Among the government programs assisted by the WFP, Santos mentioned the school meal program, prevention of malnutrition among children and pregnant women, food for those infected with HIV, and emergency food for natural disaster victims.  Santos credited the WFP-government collaboration with novel and effective work which augmented exponentially the resources mobilized to attack hunger, “especially in the North Caribbean Autonomous Region, Nueva Segovia, Madriz, Estelí, Matagalpa, and Jinotega.” In 2013, the UN Food and Agriculture Organization (FAO) recognized Nicaragua as one of the countries in Latin America and the Caribbean most advanced in the elimination of that [hunger and malnutrition] scourge.”  (Radio La Primerisima, Jan. 29; Informe Pastran, Jan. 30)