Nicaragua Network Hotline--March 11, 2008
 
Resent-Date: Sat, 15 Mar 2008 12:37:11 -0500 (CDT)


Nicaragua Network Hotline www.nicanet.org March 11, 2008 Topics
covered in this hotline include:

1. IMF mission: considerable progress in implementation of economic
program

2. Colombia agrees to withdraw war ships from 82nd Meridian at Rio
Summit

3. ENABAS reactivates service centers and reduces prices of basic
products

4. ENACAL brings in rate increases and charges for water extraction
from private wells

5. Women's group denounces setback for human rights on International
Women's Day

6. Alexis Arguello is the FSLN alliance's candidate for Mayor of
Managua

7. Monkey Point residents challenge megaport project

Topic 1: IMF mission: considerable progress in implementation of
economic program

The high level International Monetary Fund (IMF) mission which was
in Nicaragua monitoring the implementation of the government's three
year economic program between Feb. 25 and Mar. 7 issued a statement
expressing "satisfaction" with the government's progress so far.
"In general the Nicaraguan economy has behaved satisfactorily and
the authorities have made considerable progress with the implementation
of the economic program," read the statement signed by the leader
of the IMF delegation Luis Cubeddu. "The quantitative aims for the
end of December 2007 were fulfilled reflecting the implementation
of sound tax and monetary policies.

Also the National Assembly approved a budget for 2008 which is
consistent with the aims of the [economic] program and which provides
space for an increase in spending on social programs and public
investment."

Cubeddu went on to say that, during the meetings the IMF mission
held with the Executive's economic team, representatives of public
institutions and the international donor community, members of the
National Assembly and representatives of the private sector and of
civil society organizations, it was agreed that the main challenges
for Nicaragua at present are "to strengthen economic growth, to
reduce poverty, to reduce inflation and to manage the flow of
external [financial] resources within an increasingly challenging
international context."

The IMF is certainly singing a different tune these days.  It has
seen its influence in Latin America waning as its loan portfolio
rapidly shrinks and countries pull out in rejection of IMF failed
structural adjustment policies.  The Ortega government has ended
school fees, increased spending on health care, raised the minimum
wage, raised the salaries of teachers and health care workers above
IMF mandates, subsidized food, increased credit to small farmers,
and given peasant families seeds and farm animals intended to give
them food sufficiency as part of the Zero Hunger Program.  All these
measures fly directly in the face of past IMF demands.  The
significance of the IMF not only accepting the importance of poverty
reduction, but actually praising it, cannot be overestimated.  The
efforts by many, including the Nicaragua Network, to challenge IMF
and World Bank neoliberal policies that first gained public attention
with the formation of the 50 Years Is Enough Campaign, fourteen
years ago are showing significant gains after years of intransigence
by the international financial institutions.

The IMF, of course, hasn't simply rolled over and exposed its throat.
President of the Nicaraguan Central Bank Antenor Rosales described
the meetings with the IMF during the two week visit as "positive"
and "satisfactory." Rosales admitted that the government and the
IMF were unable to reach an agreement on certain issues, mainly the
percentage by which public sector workers' pay will be increased
this year. The IMF has insisted that workers should not receive a
pay raise higher than 12% in order to prevent escalating inflation.
President Daniel Ortega, however, has made moves to increase public
sector workers pay by up to 16%. Rosales said that the discussions
between the government and the IMF will continue over the next two
weeks.

According to Rosales the Central Bank estimates economic growth of
4% to 4.5% and 8% inflation during the year. Independent economists,
including Nestor Avendaqo, disagree, however, estimating minimum
inflation of 12% and between 2.5% to 3% growth. Avendaqo criticized
the IMF for "exaggerating its concern about high inflation" with
the implication that the Nicaraguan government was not doing enough
to keep inflation low when the reasons behind high inflation (a
weak dollar and soaring oil prices) are outside the government's
control.

Along with a number of other independent economists including Roger
Cerda and Adolfo Acevedo, Avendaqo criticized Rosales' decision to
increase interest rates on bonds issued by the Central Bank and
limiting the amount of money in circulation as part of an attempt
to control inflation. Avendaqo believes these measures are likely
to reduce economic activity and cause greater unemployment.

Topic 2: Colombia agrees to withdraw war ships from 82nd Meridian
at Rio Summit

The embattled President of the narco government of Colombia, Alvaro
Uribe, has agreed to withdraw the Colombian Navy warships along the
82nd meridian.

The World Court had ruled against Colombia's claim that the 82nd
meridian is the maritime border between Nicaragua and Colombia.
Uribe initially refused to recognize the World Court ruling.

Colombia's claim is based on its disputed sovereignty over two small
islands near Nicaragua.

However, due to the nearly unanimous condemnation by Latin America
and Caribbean countries of Colombia's military incursion into Ecuador
which resulted in the death of the FARC commander who had been
negotiating prisoner releases, Uribe apparently figured he couldn't
afford a military stand- off on yet another front. Since the crisis
has now abated it will be interesting to see if Colombia attempts
to re-militarize the 82nd meridian and to renew harassment of
Nicaraguan fishing boats.

Topic 3: ENABAS reactivates service centers and reduces prices of
basic products

Director of the Nicaraguan Basic Food Company (ENABAS) Roger Ali
Romero announced on Mar. 6 that, as a result of the government
program "Food for the People," the prices of beans, rice and corn
at the 342 distribution points supplied by ENABAS were drastically
reduced. In coordination with the Ministry of Agriculture, small
and medium farmers and cooperatives and the Councils of Citizen
Power (CPCs), ENABAS is implementing the government program which
aims to guarantee food security and sovereignty within Nicaragua.

Romero explained that during recent months ENABAS reactivated 14
of its warehouses and service centers which were closed down during
the 16 years of neoliberal rule. With a total investment of US$2.8
million the government aims to reactivate another 36 warehouses and
service centers before the end of the year. Last November ENABAS
signed agreements with 50,000 small and medium farmers and 72
cooperatives in which the producers committed to sell their produce
to ENABAS. The produce purchased by ENABAS is then sold to the
population in poor neighborhoods and communities at below market
prices at distribution centers which are run by the local CPCs.

Topic 4: ENACAL brings in rate increases and charges for water
extraction from private wells

A presidential decree issued on Feb. 14 authorizes the state water
company ENACAL to apply monthly charges to companies, organizations
and individuals that extract water from private wells for commercial
or industrial purposes. In the decree ENACAL is authorized to
"regulate the extraction of subterranean water by private bodies
for industrial, commercial or tourism purposes in order to preserve
and protect the nation's water reserves and to guarantee the
Nicaraguan people's right to live in a healthy environment."  This
is a recognition that the underground aquifers tapped into by private
wells are a national resource.

On Feb. 29 the Nicaraguan institution which regulates the service
of water distribution, INAA, authorized a series of increases in
the water rates. There will be no charge to those who consume less
than 20 cubic meters of water a month. For families in poor
neighborhoods that consume between 20 - 30 cubic meters a month a
7% increase will be applied. For families and businesses in richer
neighborhoods which consume between 20 - 30 cubic meters a 15%
increase will be applied. For all families or businesses which
consume over 30 cubic meters a 42% increase will be applied.

Topic 5: Women's group denounces setback for human rights on
International Women's Day

The Network of Women Against Violence organized events and protests
across the country on Mar. 8, International Women's Day. The slogan
adopted by the group for these events was "Not one minute more of
sexist violence." The group issued a declaration which denounced
the setback for women's rights in Nicaragua since the introduction
of new criminal penalties against doctors and women for carrying
out therapeutic abortions.   The group said that it was "with grief
and indignation" for the ten Nicaraguan women who have already died
this year "that we commemorate International Women's Day." The
declaration goes on to denounce an increase in violence against
women and an increase in the brutality of that violence as is
reflected in the records of the National Police for the last few
years.

Finally the group denounced "the political persecution"

they claim is instigated by government authorities of "nine female
human rights defenders, who are being unjustly investigated for
accompanying and supporting the victims and survivors of [sexual]
abuse."

Topic 6: Alexis Arguello is the FSLN alliance's candidate for Mayor
of Managua

Former world boxing champion Alexis Arguello will run as the
Sandinista party (FSLN) led alliance's candidate for Mayor of Managua
in the upcoming local election which will take place on Nov. 2.
Arguello is currently Vice Mayor of Managua and will run against
the Constitutional Liberal Party (PLC) led alliance candidate Eduardo
Montealegre. Official FSLN sources confirmed Arguello's candidacy
on Mar. 10.

Journalist Daysi Torres will run as the FSLN candidate for vice
mayor.

Topic 7: Monkey Point residents challenge megaport project

Eight ambassadors (including the representatives of Denmark, Brazil,
Venezuela, Mexico, Iran, and Peru), along with seven Nicaraguan and
foreign investors visited the Caribbean Coast community of Monkey
Point on March 8 to examine the site where Nicaraguan authorities
hope to build a modern deep water port and the terminus for a
railroad that would carry freight across the country to a Pacific
Coast port.

According to Virgilio Silva, President of the Nicaraguan Port
Authority, Nicaragua presently loses US$130 million every year
because it has to use the Caribbean ports of neighboring countries
to import and export its products.  "We have done many studies,"
he said, "and all of them indicate that Monkey Point is the best
option for the construction of a deep water port on the Atlantic
side of Nicaragua."

However, Pearl Watson, president of the Creole Communal Council of
Monkey Point, said that while she was not necessarily against the
project, it should not be built until the central government finishes
the demarcation of the lands of the indigenous and ethnic communities
of the Atlantic Coast, and most particularly of Monkey Point.  Allen
Clair, vice-president of the community, said that he wanted to tell
Lourdes Aguilar, director of the National Commission for Demarcation
and Titling, that there would be no type of negotiation until the
demarcation and titling of land at Monkey Point was concluded.  "If
they think that it will be easy to throw us out of our little houses
to build docks, warehouses and railroad lines, they are mistaken,"
he said.  "We're not against progress,"

said Sandra Morales, "we know that our community surrounded by
nature will change forever; what we can't accept is that our rights
be violated and they take away from us this land and this sea that
we inherited from our ancestors who were fugitive slaves and from
whom we also inherit rebellious blood."

Port Authority head Silva warned the residents of Monkey Point not
to let themselves "be manipulated by anyone or you could scare off
the investors."

According to government documents, the port project could cost
US$350 million.  La Prensa reported that the ambassadors and investors
were impressed by the natural beauty of the area.

This hotline is prepared from the Nicaragua News Service and other
sources. To receive a more extensive weekly summary of the news
from Nicaragua by e-mail or postal service, send a check for $60.00
to Nicaragua Network, 1247 E St., SE, Washington, DC 20003.  We can
be reached by phone at 202-544-9355. Our web site is: www.nicanet.org.
To subscribe to the Hotline, send an e-mail to nicanet@afgj.org

Nicaragua Network | 1247 E St. SE | Washington | DC | 20003