July 24, 2012

1. Anniversary of 1979 revolution celebrated in Managua
2. Nicaraguans criticize Callahan for opposing waiver
3. Latin American social movements meet in Managua
4. PLC announces intention to participate in local elections
5. Nicaraguan Army condemns introduction of assault weapons into Honduras
6. Nicaraguans travel to London for Olympics and Paralympics
7. Hawksbill Turtles in “critical danger of extinction”
8. Japanese Peace Boat docks in Nicaragua

Flash from the Nicaragua Network/Alliance for Global Justice:
US has approved property waiver; aid and international loans will continue!

1. US issues property waiver
2. Verification of voter rolls held
3. Economic briefs
4. Joint military training base to be built in Honduras
5. Labor conditions improve in Free Trade Zones
6. Ambitious housing projects proceed
7. First person sentenced under law protecting women
8. Canal moves a step closer
9. Nicaraguan Olympic boxer advances

July 3, 2012
1. Central American nations meet, sign agreement with EU

Meeting in Tegucigalpa, Honduras, the presidents of the Central American countries and Panama signed an Accord of Association (AdA) with the European Union on June 29 at a meeting of the Central American Integration System (SICA). The presidents emphasized the benefits that they expected from the lowering of trade barriers between the two regions. EU trade commissioner Karel de Gucht said, “The negotiation of this accord has taken much time and effort as well as resources, but this is not the end of the process. Before it can go into effect, it will have to be approved on both sides by our legislatures.” He told a meeting of business people that the AdA is expected to increase the Gross Domestic Product of Central America by €2.5 billion yearly (approx. US$3.164 billion). Previous Free Trade Agreements have shown, however, that an increase in GDP does not translate into an improved standard of living in countries that adhere to neoliberal economic prescriptions. Indeed, populations displaced by cheaper foreign production are usually much worse off.

The presidents agreed to incorporate Panama into the Secretariat for Central American Economic Integration (SIECA) and include that country in the agreement with the EU. Nicaragua had demanded that, in order to participate, Panama had to submit to all the conditions required of the other countries and, because it was incorporated into the talks later, will thus begin its participation later. The trade portion of the AdA will not go into force until 2013 at the earliest, depending on when the European Parliament and the legislatures of the Central American countries ratify the agreement. The agreement between the EU and each country will go into effect at the time each ratification takes place.

Mario Amador, president of the Nicaraguan Chamber of Industry, said that Nicaragua could benefit in spite of the economic problems of Europe. He noted that Nicaragua produced food and said, “You can stop buying clothes but you can’t stop eating.” Trade Minister Orlando Solorzano said, “We have the great advantage that this crisis is financial and our capacity is in agro-industry. What we need to do is produce food of higher quality. We are already exporting to that market and we have 37 plants certified, but we need to certify more.” In 2011, Central America exported US$4.2 billion to the EU. On the day the agreement goes into force 91% of Central American products will enter the EU tariff free and 69% of European industrial exports and fish will enter Central America freely. Some sensitive products such as tuna fish, textiles and plastic will be protected longer.

At the beginning of the meeting, President Daniel Ortega took over the office of president of SICA for a one-year term. The 36 point declaration emitted at the end of the meeting, which was the 39th SICA summit, noted that “it is necessary to deepen [Central American] integration in order to maximize the social and economic development of the region.” The presidents also agreed that social programs “demand more attention” from governments because they “are directed at achieving higher and better levels” of wellbeing for their countries’ populations. Civil society groups that organized forums at the event noted that the greatest challenge to the tranquility of the region was drug trafficking because Central America, as a result of its geography, is the channel through which the drugs pass from their source in the south to the consumers in the north.

Upon his arrival in Tegucigalpa, Salvadoran President Mauricio Funes proposed a regional statement of rejection of the legislative coup in Paraguay and said that El Salvador would not recognize the new government. The proposal did not progress, however, perhaps because an even more blatantly illegal coup had taken place exactly three years before in the very city where the meeting was taking place. Costa Rican President Laura Chinchilla deliberately avoided greeting President Ortega, making evident the disagreement between them over the San Juan River at the border between their two countries. (See story below.) (La Prensa, June 29; El Nuevo Diario, June 29; Radio La Primerisima, June 29; Informe Pastran, June 29, July 2)

2. IMF gives seal of approval

The Executive Board of the International Monetary Fund approved Nicaragua’s progress under the Extended Credit Facility program signed with the institution in 2007 adding that it was prepared for the negotiating of a new agreement that would be signed in December of this year. The announcement was made by Central Bank President Alberto Guevara who said, “These results are a reflection of the prudent management of our economic policies. The IMF valued the fact that in an adverse world environment we have reinforced stability and macroeconomic sustainability.” He pointed out that for 2011 the IMF had predicted a growth rate of 3% for Nicaragua and, he said, “We grew 4.7%” adding that the state had a budgetary surplus instead of a deficit. He pointed out that Nicaragua has worked on a model to “give the poor the capacity to get out of poverty with programs clearly oriented toward providing capital in the countryside and in the city to these poor families.”

Guevara said that he did not yet know what type of program Nicaragua might be negotiating with the IMF. The Extended Credit Facility is part of the Poverty Reduction and Growth Trust and, according to the IMF, part of a reform “to make the Fund’s financial support more flexible and better tailored to the diverse needs of Low Income Countries” with protracted balance of payments problems. With the progress Nicaragua has made, it may come under a different type of program. Guevara added that Nicaragua has fulfilled all its obligations to also renew programs with the World Bank and Inter-American Development Bank which were completed at the end of last year.

Businessman Enrique Zamora celebrated the news saying that it was especially important that the government negotiate a new accord with the IMF, based on its fulfillment of the conditions of the last agreement, in order to carry forward its projects. He said an IMF agreement was an open door for new investment, showing that Nicaragua had maintained economic and monetary discipline, although the country needed to strengthen institutionality somewhat.

Meanwhile, Guevara announced that talks between the Ortega administration and business and labor sectors on the issue of tax reform had started. He said, “We have advanced talks going on with business sectors and with workers.” However, Jose Adan Aguerri, head of the Superior Council of Private Enterprise (COSEP) said that his group was awaiting a call from the government to begin talks on July 2 or 9. He said that the goal of tax reform should be to be neutral, “enlarging the base of taxpayers while keeping Nicaragua competitive.” (El Nuevo Diario, June 28; Informe Pastran, June 29; La Prensa, July 1, 2)

3. Court condemns Costa Rica on San Juan River road

On the morning of July 2, the Central American Court of Justice (CCJ) issued a unanimous ruling finding that Costa Rica had built the road along the southern banks of the San Juan River “without the studies and analysis demanded within the obligations imposed by regional and international law, avoiding the collaboration, mutual understanding and communication among the nations party to those agreements that should exist in matters of the environment and sustainable development.” The southern bank of the river forms the border between Nicaragua and Costa Rica. The Court called the road a “high risk project” which was “environmentally dangerous” and repeated its January 17 order that work on the road be stopped and the damage repaired. The CCJ noted that 160 kilometer long road put at risk the Central American Biological Corridor that maintains the “ecological equilibrium of flora and fauna that the State of Costa Rica is obliged to respect as the patrimony of all humanity.”

Costa Rican President Laura Chinchilla immediately announced that her country rejected the ruling as “spurious and illegitimate” given that Costa Rica does not recognize the Court. She went on to say, “We have every right to doubt the objectivity of this court because it is located in Nicaragua and the presiding judge is Nicaraguan.” [The court’s location and presidency rotate every six months.] The CCJ is one of the organisms of the Central American Integration System (SICA) of which both Costa Rica and Nicaragua are members. Costa Rican officials indicated that they may consider the possibility of leaving SICA.

Nicaraguan environmentalist Kamilo Lara, leader of one of the organizations that brought the suit, said after hearing of the ruling, “We will be widening the breadth of our demands when we quantify the damages,” adding, “Costa Rica must pay” for destruction of the ecosystem in the zone. Meanwhile, another bridge spanning a San Juan River tributary collapsed on June 30th, the second collapse in ten days along the road.

The Costa Rican Administrative Environmental Tribunal began its investigations of environmental damages caused by the road in a visit to the area. The National System of Conservation Areas presented its reports on the damage to streams and biodiversity on the Costa Rican side of the river caused by the chopping down of trees. The San Jose newspaper La Nacion also reported that the companies that received the contracts to build the road owned no machinery and had no public works experience. (El Nuevo Diario, July 2; Radio La Primerisima, June 29, July 1, 2; Informe Pastran, June 27, July 2; La Prensa, July 2)

4. Opposition undecided about participation in local elections

To participate or not to participate (in the November municipal elections), that is the question for the opposition political parties. The elections are four months away and the Independent Liberal Party (PLI), which came in second after the Sandinista Party in last year’s presidential elections, has not yet decided. PLI president Indalecio Rodriguez said that the party’s executive council must decide by August 20 and if the decision is not to participate, party leaders will call for an assembly to put that decision to a vote. Rodriguez protested what he said was imbalance in the recent naming of heads of local electoral councils by the Supreme Electoral Council (CSE) with Sandinistas named to the top post in the largest municipalities.

But the principal issue for the opposition and for other sectors is the issue of the expired terms of the magistrates of the CSE and the demand that the sides negotiate which of them will be reelected and which will be replaced. Managua city council member Luciano Garcia said, “While those corrupt magistrates are there, obviously we will have to think hard [about whether to participate] since the vote of the people is involved.” Jose Adan Aguerri, head of the Superior Council of Private Enterprise (COSEP) said that his organization has a permanent campaign to demand that the magistrates be changed but he said that the decision is up to the politicians. Carlos Tunnerman of the Movement for Nicaragua [a group funded by USAID] said that the National Assembly should elect new magistrates before they go on vacation in the middle of July.

Meanwhile, the political alliance led by the Sandinista Party will not announce its candidate for mayor of Managua until August. Informe Pastran cited party sources who said that the FSLN is polling its base to see who would be the best candidate. Agustin Jarquin of the Christian Democratic Union, a member of the Sandinista alliance, has not hidden his desire to run for the post, using social networking to promote his candidacy. (El Nuevo Diario, June 30, July 2; La Prensa, June 29; Informe Pastran, June 27, 29)

5. Nearly 3,000 women to receive micro-loans

The Nicaraguan government will make 2,892 new micro-credit loans to women-owned small businesses organized into 541 solidarity groups in 46 municipalities. The loans are part of the Zero Usury program to integrate more women into economically productive activities. The small, low-interest loans help women build their businesses and improve the quality of life of their families. To qualify, women must organize themselves with other women into solidarity groups. The solidarity groups allow the micro-credit recipients to receive help and encouragement from other women in their area and provide a platform through which skills training and business seminars can be conducted to improve the recipients’ chances of business success. (Radio Primerisima, July 2; Informe Pastran, July 2)

6. FAO initiates new food education program

The UN Food and Agriculture Organization (FAO) Nicaragua Representative Gero Vaagt, praised Nicaragua for reducing malnutrition from 52% to 19% in recent years. He announced that FAO is initiating a new program to educate students and teachers about the “management and production of their food, protecting the environment, and the creation of school gardens” as part of the government’s efforts to achieve food sovereignty and sustainability. The World Food Program in Nicaragua benefits 150,000 students with a ration of hot food 150 days of the year. Vaagt also said that Nicaragua achieved the UN’s Millennium Development objective for malnutrition reduction last year. (Radio La Primerisima, June 29; Informe Pastran, July 2)

7. Reforestation programs ongoing

The Hemco mining company will reforest over 1,000 acres in the buffer zone around the Bosawas Nature Preserve this year with half a million trees including mahogany and teak as well as other native species. The project, which is part of a 20 year effort to reforest 18,000 acres in which they will invest $US2.7 million annually. So far, 5,000 acres have been planted. According to the company, the project will focus on restoring areas of the forest that have been converted to cattle ranching, which has a lower economic value than precious hardwood logging. The reforestation work is taking place in the Municipality of Siuna in the North Atlantic Autonomous Region and is being touted as a development project which will provide jobs and training for local residents as well as create a buffer against expansion of the agricultural frontier into the Bosawas..

In related news, the Sandinista Youth environmental organization, Guardabarranco Environmental Movement, recognized Nicaragua’s Arbor Day by identifying and marking trees in Managua that are over 100 years old. That project will now expand to the rest of the country starting on July 4. They will also identify diseased trees and continue their work to raise the environmental consciousness of people. Young environmentalist Nestor Pineda said that they will help people see the value of the forest as more than a source of firewood and furniture. They will educate people to see it as a valuable source of oxygen and animal habitat. Beginning on July 6, Guardabarranco volunteers will begin planting 1.5 million saplings nationally. (El Nuevo Diario, June 28; Radio La Primerisma, June 29)

8. Housing Construction on the Rise in Nicaragua

Alberto Atha, president of the Chamber of Developers, the construction sector is expected to grow between 12 and 15% this year, with the most growth predicted in residential construction. It is estimated that by the end of this year come there will be 45 housing development projects under construction that will take four years to complete. The total from these developments could reach 25,000 units, with 4,500 homes loans annually. Atha stated that at the moment, the housing construction sector generates 15,000 permanent direct jobs and an average of two indirect jobs for each direct job. Also, construction of affordable housing has increased 29.7% nationally. (Radio La Primerisima, July 2)

1. President signs bill creating Canal Authority

On July 3 the National Assembly approved a bill authorizing the construction of a shipping canal across Nicaragua connecting the Atlantic and Pacific Oceans and, on July 7, President Daniel Ortega signed it into law. The vote in the National Assembly was 85 votes in favor, zero opposed and two abstentions. The canal would be built over a period of ten years at an estimated cost of US$30 billion. The Nicaraguan state would own 51% of the canal company, offering 49% to investors who could be other nation states, international organizations, corporations or individuals. In signing the bill, Ortega noted that the canal had been a dream of national hero Augusto Sandino. National Assembly President Rene Nuñez said that it had been studied by Nicaraguan authorities since 1833. [Another study put the first feasibility study for a canal even earlier, saying it was ordered by King Philip II of Spain in 1567.]

Noting the continued increase in international shipping and the probable benefits to the Nicaraguan economy, opposition deputies in the Assembly supported the bill. Liberal Party Deputy Wilfredo Navarro said, “I don’t know if we will get the funds for this canal but it is a hope.” Former vice-presidential candidate Edmundo Jarquin, however, said the president was “selling illusions about the future to mitigate the difficulties of the present.”

The new law created the Grand Inter-Oceanic Canal Authority to carry out environmental studies and feasibility studies of the six possible routes, and to seek investors. At the moment, conversations have been held with Brazil, China, Russia and Venezuela. Venezuelan Ambassador to Nicaragua Maria Alejandra Avila told a Managua television station that the canal was “a manifestation of sovereignty” and Venezuela was interested in investing. Belgian investors also expressed interest. Nicaraguan authorities said that the canal would be complementary and not competitive with the enlarged Panama Canal. They also said that property owners along the route of the canal would be compensated for the loss of their property. Vice-Minister of Foreign Affairs Manuel Coronel Kautz said that preliminary studies had already been done and a decision would be made as to the best route in about four months.

One of the possible routes for the canal would be using the San Juan River and because the southern bank of the river forms the border between Nicaragua and Costa Rica, the Costa Rican government said that Nicaragua had to get its opinion about the project. Jaime Incer Barquero, presidential advisor for the environment said, however, that while Costa Rica could make observations, it could have no role in decision making about the canal because the river belongs in its entirety to Nicaragua. There were no reports of statements from environmental organizations in the news this week, but previous statements have noted that [as happened in Panama], because water is so essential to the functioning of a canal, preservation of the rain forest becomes by necessity a matter of top national interest. (Informe Pastran, July 4, 6, 9; Radio La Primerisima, July 3, 4, 5; La Prensa, July 4)

2. National Assembly approves Family Economy Ministry

The National Assembly on July 6 approved the creation of a new ministry with the full title of Ministry of the Family, Community, and Cooperative Economy. The new ministry will seek to strengthen micro, small and medium businesses, which together produce 40% of Nicaragua’s Gross Domestic Product. President Daniel Ortega explained that the ministry will serve small scale producers in urban and rural areas, adding that this sector generates 70% of jobs in the country. The vote in the National Assembly was 63 votes in favor (all the deputies of the Sandinista bench), 17 opposed, and one abstention.

Opposition deputies in the National Assembly criticized the new ministry. Eliseo Nuñez said that it would promote “sectarianism” while Pedro Joaquin Chamorro called it a “white elephant” and questioned how it would function with 37 groups that will have a consultative role in the ministry. Maria Eugenia Sequeira and Carlos Langrand called it a “mechanism to control the family.” Former vice-presidential candidate Edmundo Jarquin said the new ministry seemed to be a good idea but it could also serve only to increase bureaucracy.

The new Family Economy Ministry (as it will be called for short) will absorb the Rural Development Institute (IDR) and the Nicaraguan Institute for Small and Medium Businesses (INPYME) as well as Zero Hunger and Zero Usury and be dedicated to promoting cooperatives and food sovereignty through the transfer of new technologies and encouraging sustainable productive practices, according to government sources. The programs of the ministry will be funded by a total of US$83.2 in national monies and donations and loans from the United Nations Development Program, the Inter-American Development Bank, and the government of Switzerland. Among the beneficiaries will be 6,139 micro businesses, 180 groups of young people, 150 medium scale export businesses, 29 tourist farms, and numerous other projects, including women’s cooperatives and agricultural cooperatives. (Radio La Primerisima, July 4. 6; El Nuevo Diario, July 7; La Prensa, July 6; Informe Pastran, July 6)

3. High level government officials attend July Fourth celebration at US embassy

The list of high level Sandinista government officials who attended the July Fourth celebration at the US Embassy had analysts buzzing about a possible warming in relations between the two governments after the deep freeze produced by the announcement by the US that it would not issue a waiver certifying that Nicaragua had complied with US rules on budgetary transparency in order to receive US$3 million in aid. Ortega had indicated in reply that he was studying the possibility of not allowing so-called “democracy promotion” assistance to non-governmental groups if USAID would not be aiding government health and education programs. Still pending is the “property waiver” which requires that the U.S. government refuse aid to countries that expropriated U.S. citizen lands, unless the President provides such countries with a waiver. Nicaragua has complied with U.S. demands on this issue, resolving 60 cases in the past year.

Heading the delegation to the July 4th festivities was Vice-President and former head of the Army Omar Hallesleven who was accompanied by Central Bank President Alberto Guevara, presidential economic advisor Bayardo Arce, Trade Minister Orlando Solorzano, Energy Minister Emilio Rapacciolli and numerous others.

The Informe Pastran reported that, “Contrary to what might have been expected, at the Embassy residence there was no atmosphere of tension but rather one of relaxation and cordiality, where they spoke about the necessary relationship between the two countries and the property waiver. In the majority of the conversations it was a given that the waiver would be issued without difficulty because the Nicaraguan government has over complied” with the technical requirements for the waiver.

In the speeches, however, one could hear a reflection of the issues that still divide the two countries. Ambassador Phyllis Powers spoke of the struggles of the United States from the Revolutionary War to the Civil War to the struggle for civil rights. She said, “Nicaragua is also taking its own road. In a little over 30 years, the Nicaraguan people have overthrown a dictator, fought a civil war, and planted the seeds for a democratic society. This transformation cannot occur from one day to the next. The people of Nicaragua can only complete this road if institutions that are democratic, independent and transparent prosper.” For his part, Hallesleven also spoke of the struggle of the United States for independence which could only be achieved by force of arms. He added that history shows that oppressed nations whose dignity has been violated will seek their self determination with the same honor that the people of the United States showed.

Alberto Novoa, who was in charge with complying with the property waiver requirements under President Enrique Bolaños (2001-2006), was not hopeful about the granting of the waiver. He said, “The United States always demands transparency and governability. You can resolve all the cases but if you don’t stick to the rules of the game that they demand, you are not going to get the waiver.”

The US law setting up the property waiver mandates that if the waiver is not granted, not only will US aid to the government of Nicaragua be withheld, but the US must vote against assistance to Nicaragua from the multilateral financial institutions as well. In 2011 the United States donated US$21 million to the Nicaraguan government and US$31.5 million to the private sector. The World Bank provided the government with US$61.7 million in loans and donations; the Inter-American Development Bank US$157.7 million, and the International Monetary Fund US$17.8 million, according to the Central Bank of Nicaragua.

Florida Republicans have been lobbying the State Department asking Secretary of State Hillary Clinton not to grant the property waiver. Rep. Ileana Ros-Lehtinen said last week, “Aid should not go to the dictatorship of Daniel Ortega who is taking away all the rights of his people.” However, supporters of the waiver have not been silent. Informe Pastran reported [from last week’s Nicaragua News Bulletin] that John Ballard at the Nicaragua Desk at the State Department told the Nicaragua Network and ALBA-USA that he has been receiving calls and e-mails in favor of the waiver and forwarding them to Assistant Secretary of State for the Western Hemisphere, Roberta Jacobson. For information about how you can participate in the campaign in support of the waiver, visit www.nicanet.org. (Informe Pastran, July 4, 5; La Prensa, July 8, 9)

4. IDB says Nicaragua on right track

Mirna Lievano, representative of the Inter-American Development Bank (IDB) in Nicaragua, said last week that Nicaragua is “on the right track” with its anti-poverty programs. The IDB has provided US$579.4 million in loans to Nicaragua between 2008 and 2012. Lievano said that the funds have been carefully used in the programs for which they were allocated and that adding up the results permits her to catalog Nicaragua as one of the countries with the highest efficiency and fulfillment of goals. Among the areas funded by the IDB have been energy, transportation, water and sewage, health care, the needs of children, the environment, production, and fiscal sustainability. She said that the Bank considers Nicaragua “a strategic member.” In 2007, the IDB cancelled US$1.172 billion in debt that Nicaragua had with the organism and in 2010 lowered the interest rate by 50% on 15 of Nicaragua’s loans. (La Prensa, July 6; Informe Pastran July 6; El Nuevo Diario, July 5; Radio La Primerisima, July 5)

5. Death of police officer mars Repliegue

The death from a heart attack of one of the police officers in President Daniel Ortega’s security detail marred this year’s reenactment of the “tactical retreat” from Managua 33 years ago in the middle of the final offensive against the Somoza dictatorship. Aminta Granera, head of the National Police, told reporters that the officer was Capitan Elias Antonio Talavera who was only 45 years of age and had been serving in the police force for 28 years. President Ortega led the walk from Managua to Masaya that began with a rally in the afternoon of July 9 and ended the next morning in Masaya, a distance of 32 kilometers. Ortega said that he was proud of the participation of youth in the Repliegue and he said that he wanted to dedicate this year’s walk to Fernando Lugo, recently overthrown as president of Paraguay.

The retreat on June 24, 1979, involved moving 5,000 people, mainly civilians, from Managua where they were being killed in the neighborhoods controlled by Somoza, to Masaya where they could be trained as militia. They later marched into Managua on July 19, 1979. (Radio La Primerisima, July 9)

6. Concerns raised about Nicaragua’s endangered species

The death in the Galapagos Islands of “Solitary George, the last Chelonoidis Abingdoni species of tortoise, has raised the issue of endangered species in Nicaragua where there are 128 animal species listed as in danger of extinction and 62 as threatened. These include all Nicaragua’s species of monkey and felines, as well as the Great Green Macaw and the Yellow Naped Parrot, among others. There is a total ban on killing or capturing these and the other species on that list. There is also a partial ban with relation to 62 species that are threatened, including the Green Iguana and the boa constrictor. These lists only contain animals that have commercial value. Experts say there are likely endangered species that have not yet been cataloged and those with no commercial value. Environmental authority René Castellon said, “There is tangible evidence that the species are disappearing from our planet and in the majority of cases the cause is actions of human beings.” (El Nuevo Diario, July 7)

7. Economic briefs on growth in formal sector employment, foreign investment, call centers, and internet access

Formal sector employment grew by 8.6% in January through May compared to the same period last year as measured by enrollment of workers in the social security system. Analysts said that the increase was due to growth in economic activity and government programs to promote social security enrollment. On the other hand, the buying power of workers’ salaries fell by .6% compared to a growth of .2% last year in spite of the fact that the National Minimum Wage Commission (composed of representatives of government, unions, and employers) in February approved an increase in the minimum wage of 6.5% for the first half of the year. That increase excluded farm workers and Free Trade Zone workers from the adjustment as their wages are agreed to through separate negotiations. (Radio La Primerisima, July 7)

According to a UN Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) in Nicaragua grew by 91% in 2011, leading the countries of the region. UNCTAD representative Nicole Moussa said that despite having a small economy, Nicaragua has shown itself to be much more attractive than other countries if you take into account “the level of direct foreign investment with respect to its Gross Domestic Product.” Last year, FDI in Nicaragua reached a record of nearly US$1 billion and analysts expect a similar level this year.  (Informe Pastran, July 9) 

The state agency ProNicaragua is working to increase Nicaragua’s attraction as a “service provider” competing with India and the Philippians for Call Center jobs. Currently twelve Call Centers provide 4,500 jobs for bilingual Nicaraguans, jobs which pay US$500-$700 per month. In a country with high under-employment and unemployment, Call Center jobs are considered good jobs. Xavier Chamorro, director of ProNicaragua, said that Nicaragua has enormous potential due to proximity to the United States and its location in the same time zone. Call Centers require little investment and Chamorro hopes to attract many more given that Nicaragua is the safest country in Central America. One company, Sitel, has 1,000 employees and is preparing to add another 1,500. In 2013 it plans to open new Call Centers in Leon and in Bluefields on the Caribbean Coast. (Radio La Primerisima, July 4; El Nuevo Diario, July 5)

Nicaragua last year more than doubled (113%) the number of homes connected by wide band to the internet, the fastest growth rate in Central America. Costa Rica continues to enjoy the highest percentage of internet wired homes with 33.5% versus 15.3% for Nicaragua. In Honduras, 13% are connected; in El Salvador, 16.3%; and in Guatemala, 17.5%. There are more than 1,056,000 households in Nicaragua of which 704,000 have electricity. Of those, 108,000 now have an internet subscription. In addition, an estimated quarter of a million Nicaraguans regularly use internet cafes or school computer labs to access the internet. (El Nuevo Diario, July 9; Radio La Primerisima, July 9)

July 18, 2012

1 Divided Liberals celebrate 199th anniversary; election participation undecided
Liberals celebrated the 119th anniversary of the Liberal Revolution led by Gen. Jose Zelaya with the laying of a wreath in a solemn ceremony at his mausoleum. Zelaya’s political descendents continue to be divided into parties and movements unable to unite since the presidency of President Arnoldo Aleman (1996-2001). The disgraced former president’s party, the Constitutional Liberal Party (PLC), only managed to garner 5.93% of the vote in last year’s presidential election national party. Its party congress last week saw participation by only 620 delegates of the 953 expected.
Less than a month before candidates must be registered for the Nov. 4 municipal elections, Liberal factions continue to call for unity while strongly criticizing each other’s leadership. A faction of the PLC, which calls itself the Ramiro Sacasa Guerrero Movement, is urging Liberals to boycott the elections. All Liberal factions are united around the claim that President Daniel Ortega’s election last year to a second consecutive term was a violation of the constitution, which they say makes his administration illegitimate. Factional leader and PLC dissident Leonel Teller said, “To vote in the upcoming municipal elections is to vote for the bad sons of the nation that are helping Ortega and his party legitimize and consolidate their dictatorial project, and my principles will not allow me to do so.”

Meanwhile, other PLC factions and the rival Liberal Independent Party (PLI) are gearing up for elections while still deciding whether to participate. The PLI, a venerable Liberal Party that stood in opposition to the Somoza dictatorship, was taken over by supporters of Eduardo Montealegre in the run up to last year’s presidential campaign after he was ousted by the party he founded, the Nicaragua Liberal Alliance (ALN). Montealegre, who is giving up his seat in the National Assembly due to recovery from a recent heart operation, said that on the 119th anniversary of the Liberal Revolution Liberals should be lamenting that “we are returning to strong-men leaders and individualism.”
Among opposition demands is that the Supreme Electoral Council (CSE), the fourth branch of government that is responsible for elections, be reconstituted with new magistrates. Terms for the magistrates ran out in President Ortega’s previous term but each faction in the National Assembly was able to block any combination of other parties from electing new magistrates. In the current National Assembly, the Sandinista Party (FSLN) holds enough seats to elect magistrates without the support of any other party, but has been attempting to negotiate a consensus with the minority parties. So far that has proven impossible. Eleven right-wing youth gave up a 24-day hunger strike in front of the CSE claiming that the Ortega government didn’t care if they died and lamenting the lack of public support for their action. An M&R poll released on July 16 showed that 42.4% of the population expressed “much confidence” in the upcoming elections under the current CSE, while 28.1% have “no confidence” and 27.2 have a “little confidence.” On the other hand, 88.5% of the interviewees considered that a real political opposition, to contribute to the well-being of the country “must organize to participate, discuss and negotiate with the government” and only 6.3% considered that it should be organized to confront and mobilize against the government. On the participation of the opposition in municipal elections, 71.6% of respondents answered that it must participate, whether or not changes to the Supreme Electoral Council are made and 18.6% replied that the opposition should not take part if there are no changes in the electoral system.

In other election news, outspoken right-wing Auxiliary Bishop of Managua, Silvio Jose Baez, stated that conditions do not exist for democratic municipal elections and that the Catholic hierarchy will meet soon to issue a pastoral letter to Catholics about the election. He did say that the bishops would leave to each citizen’s conscience whether or not to vote. Edmundo Jarquin, the Sandinista Renovation Movement (MRS) standard bearer in the 2006 presidential election who headed the MRS in its alliance with Montealegre (for which he was awarded the vice-presidency of the PLI Alliance), is calling for the elections to be suspended. The PLI is calling for demonstrations in all 153 municipalities. Finally, the Christian Democratic Union (UDC), and its leader Agustin Jarquin, which have gone into previous elections in alliance with the FSLN, are considering fielding an independent slate of candidates this year. This may be a negotiating position to gain Jarquin the FSLN nomination for mayor of Managua. (La Prensa, July 10, 11, 12, 13, 16; El Nuevo Diario, July 10, 11, 12, 13, 16)

2 Callahan urges Obama not to extend property waiver
Former US Ambassador to Nicaragua Robert Callahan and Ray Walser wrote an incendiary piece posted on the Heritage Foundation website (http://www.heritage.org/research/reports/2012/07/nicaragua-s-daniel-ortega-no-new-property-waiver) calling on the Obama administration to refuse to grant a crucial waiver for a US law that prohibits the US government from giving aid to any country involved in property confiscations of US citizens. The absence of the waiver would result in US vetoes for loans and grants to Nicaragua from international financial institutions and a cut-off of US aid. The suspension of the waiver, according to Callahan and Walser, could be the impulse to make the “democratic opposition,” which they strongly criticize for being “unable” to join “around a person, plan or idea,” to put aside their differences and work together to “restore transparency, accountability and the rule of law in the country.” Businessman Cesar Zamora, vice-president of the Association of Latin American Chambers of Commerce, called the Callahan article “disinformation,” specifically referring to the part in the piece that mentioned “defacto confiscations” in the past year of property owned by US citizens. Zamora said there have been five peasant occupations, but that these are not the same as confiscations by the State. The waiver deadline is fast approaching. Go to http://www.nicanet.org/?p=1141 for more information and then call the State Department and your elected officials to demand that the property waiver be extended. (La Prensa, July 13; El Nuevo Diario, July 14; Radio La Primerisima, July 14)

3 Colombian spy sentenced
Convicted Colombian spy, Luis Felipe Rios Castaño, was sentenced to 16 years in prison for espionage and disclosing State secrets. His military confederates, Lt. Alvarez Granera and Captain Leonidas Castillo Ruiz, were dishonorably discharged from the army and sentenced to 17-1/2 years each. Rios obtained information about Nicaraguan defense strategies and military relations with Venezuela and Russia, which he passed on to the Colombian military. While it was not brought up in the sentencing hearing, the Colombian military is increasingly being used as a surrogate for the United States training police and military in countries such as Honduras. It is extremely unlikely that Colombia would withhold the intelligence obtained by Rios from the US. (La Prensa, July 10, 13; El Nuevo Diario, July 10, 13)

4 IMF Mission issues praise, concerns
An IMF technical mission, currently negotiating a new multi-year loan agreement with Nicaragua, described as positive Nicaragua’s economic performance and recommended that the government do more to control spending and improve its fiscal position by increasing taxes and reducing exemptions. The IMF recognized that macroeconomic development has been generally positive since 2010 and that “consumption and investment have been robust.”

However, the mission report criticized public employee salary supplements and electricity subsidies and called for reforms to the pension system. Bayardo Arce, chief economic advisor for the Ortega administration, acknowledged that without ALBA oil subsidies from Venezuela, which fund the approximately US$32 per month public employee salary bonus, Nicaragua would be unable to fund the bonus for 165,515 public employees as well as the lower electricity rates. Arce recognized that there is a serious need to either find alternative support funds in case Venezuelan oil aid were to cease, or to slowly phase out the subsidies. In terms of the electricity subsidies, “what should be clear to the population is that if we were to lose this [Venezuelan] support and the price of oil continues to rise, we will all face higher energy prices”, said Arce
Superior Council of Private Enterprise (COSEP) President Jose Adan Aguerri, said that the entire range of subsidies and IMF recommendations on taxes and deductions need to be discussed as part of the ongoing negotiations over a tax reform law. (El Nuevo Diario July 13; Radio La Primerisima July 13; La Prensa, July 13, 14 )

5 Foreign aid continues to flow
As part of a Central America-wide program to which the European Commission has allocated US$ 3 million, Nicaragua disaster relief agencies and at risk communities will receive funding to prepare for a range of natural disasters. Nicaragua will benefit from five projects nationally, one of which will include the Caribbean Coast region of Honduras. The rest of the funding will go to three projects that cover all of Central America. Also last week, Foreign Minister Hernan Estrada signed an agreement with Switzerland for a US$2 million grant to fight corruption and strengthen public administration. The Office of the Comptroller General will administer the grant. And finally, Spanish Ambassador Leon de la Torre Krais and Managua Mayor Daysi Torres participated in a ceremony closing out the first phase of a US$48 million Spanish-funded project to close Managua’s La Chureca, Latin America’s largest human inhabited dump. To date, 40 hectares of the dump have been sealed and 258 homes have been built to house the 1,500 former residents of the dump. Managua garbage coming to the area will now be either placed in controlled deposits or channeled to a modern recycling plant that will employ around 2,000 people, many former residents of the dump. (Radio La Primerisima, July 10, 13; El Nuevo Diario, July 13)

6 Advances in health care
Boasting 429 new doctors, Nicaragua will have the second highest number of non-Cuban students receiving Doctor of Medicine degrees this month from Cuban medical schools, surpassed only by Bolivia in the number of foreign graduates. Cuba’s commitment to health care for the world’s poor is shown by the fact that 5,694 foreigners will graduate this month after receiving free medical education. Students from 59 countries will graduate. The new doctors will join government health programs that have already benefitted hundreds of thousands of Nicaraguans with free health care. Communication Council and Citizen Power Coordinator Rosario Murillo said last week that the advances have been possible because health care is an interagency project incorporating the Councils of Citizen Power, volunteers, health brigades and citizens.

Among the various successes of the government’s health programs are the vast numbers of free doctor visits and surgeries given throughout the country. The “All with Voice” program for the disabled has already provided for 132,906 medical visits. Just in the past months, 115,000 dental exams and 12,666 dental surgeries took place while 715 people have had cataracts removed in the department of Rio San Juan. In total, 6,809 cataract surgeries have been completed throughout the country, bringing the back-log of surgeries down significantly. In the area of cancer prevention, 150,000 pap smears and 3,784 colonoscopies have been executed. The free health care system has also administered 214,211 breast exams and mammograms, as well as 95,000 gynecological ultrasounds for women, in addition to 9,000 ultrasounds for detection of prostate cancer in men. The health ministry has visited 1,817,425 homes for dengue control and other preventative health care purposes. On July 14, the third conference on prevention of childhood blindness at La Mascota Childrens Hospital is expected to treat 300 children with eye problems from around the country. (Radio La Primerisima, July 10, 11, 13; La Prensa, July 13)

7 Nicaragua’s Olympic hope
Nicaragua’s Olympic hopes lie in the hands of boxer Osmar Bravo, the only Nicaraguan athlete to qualify for this year’s Olympics in London, UK. Bravo departed for Cardiff, Wales on July 4 to continue his training and described himself as psychologically and emotionally in his best moment. His dream is to become Nicaragua’s first Olympic champion. In the 1996 Atlanta Olympics, Nicaragua’s baseball team narrowly lost to the US, ending up in fourth place just shy of the bronze medal. To Nicaragua’s chagrin, this year’s Olympic committee inexplicably eliminated baseball and softball, replacing them with the elite and exclusive sports of golf and rugby. While Chinandega born Bravo was the only Nicaraguan to qualify, five other Nicaraguan athletes will compete in four categories thanks to invitations, based on the principle of “universality”, from the International Federations of each athlete’s respective sport.

In other sporting news, the first internationally sanctioned surfing competition began in Nicaragua on Sunday, organized by the International Surfing Association. Great enthusiasm and hope for increased tourism greeted the 200 internationally ranked competitors at Colorado Beach in Rivas.
(Radio La Primerisima, July 10, 16; El Nuevo Diario, July 16; La Prensa, July 16)

8 UN to fight teen pregnancy
UN Population Fund (UNPF) Nicaragua deputy representative Osca Vizcar acknowledged that the ministries of Health and Education have “made great efforts” to educate and disseminate information on contraceptive methods but warned that 25% of pregnant women in Nicaragua are between the ages of 15-19. In rural areas, the level of pregnant adolescents is closer to 30%, which Vizcar attributes to “poverty and poor education.” However, Vizcar said, the issue is complex; teenage sexual activity is not necessarily a problem. Vizcar emphasized that the issue is one of lack of information and health services for older teenagers that are trying to live out their sexual lives. However, what is a major problem, Vizcar noted, is that Nicaragua has the highest teenage pregnancy rate in Central America, with pregnant girls as young as 10 or 11 years old. When girls this age are getting pregnant it is not an issue of health and education anymore but one of “sexual, physical and physiological violence,” Vizcar affirmed. He made the remarks while announcing a UNPF program of education in 43 of Nicaragua’s 53 municipalities. (Radio La Primerisima, July 10; La Prensa, July 10; El Nuevo Diario, July 13)

July 31, 2012
1. US issues property waiver

On July 25, the United States government announced that it would issue the yearly waiver certifying that Nicaragua had made progress resolving claims for compensation for confiscated property made by US citizens (principally Nicaraguans who became US citizens long after they lost their property by confiscation or foreclosure). The waiver, which will be in effect for a year, was issued, according to the US Embassy communiqué, based on the national interest of the United States and on the efforts of the government of Nicaragua to resolve the property claims of US citizens. The note, which has still not been posted in English, said that, between July 2011 and July 2012, 65 claims made by 31 US citizens had been resolved and 337 remained. The communiqué expressed concern about “land invasions and other forms of usurpation of property rights” in Nicaragua which it said were increasing, indicating “a deterioration in the rule of law in Nicaragua.” It added that they were a “significant obstacle to investment in the country.” [However, the property conflicts recently in the news have been over who actually owns a piece of property and not cases of confiscation. On the other hand, foreign investment last year reached a historical record and, in the words of former US Ambassador Robert Callahan, Nicaragua is the country that has benefited most under the DR-CAFTA trade agreement with the United States.]

US Ambassador Phyllis Powers said that Secretary of State Hillary Clinton had sent a letter to Nicaraguan Foreign Minister Samuel Santos telling him of the decision. Powers added that there was a possibility of ending forever the whole waiver process, stating, “If we can finish all the cases and end land invasions, I think that we can [end the process], but we will have to work and we are going to work with the government on this issue.”

In the United States, Republican reaction was swift. Representative Ileana Ros-Lehtinen (R-FL), chair of the House Foreign Affairs Committee, said, “I am deeply disappointed by the Obama Administration’s decision to reward the regime in Managua with the property confiscation waiver.” She went on to say, “Rewarding an anti-American and anti-democratic regime with the property confiscation waiver is just another step in the wrong direction by an Obama Administration which seeks to appease dictators in this Hemisphere.”

In contrast, the most common reaction in Nicaragua was relief. El Nuevo Diario reported that the business sector celebrated the decision. Benjamin Lanzas, a leader in the construction sector, said that the approval assures that the US$35 million loan from the Inter-American Development Bank for highway construction will go through. Dean Garcia, executive director of the Nicaraguan Association of the Textile and Garment Industry, challenged those Nicaraguans who opposed the waiver (alleging election irregularities and other problems with institutionality), saying, “You don’t get to democracy by making a country poorer; you get to democracy collaborating with that country and promoting productive development.” In an official press release, the Nicaraguan-American Chamber of Commerce said that the US decision was “opportune and intelligent” and that it “should be seen as an opportunity for the Nicaraguan government to respect institutionality and rule of law, beginning with the naming of the functionaries whose terms have run out, as the constitution demands.” Among politicians, Christian Democrat Agustin Jarquin said the issuing of the waiver was “a blessing for Nicaraguans” which “cleared up the uncertainty threatening private investment and bilateral assistance.”

A delegation of Nicaraguan Protestant pastors led by Rev. Mauricio Fonseca visited Washington in the days before the decision was announced to lobby US leaders to grant the waiver. They met with John Ballard at the Nicaragua Desk at the State Department and with other officials. [The Nicaragua Network working with ALBA-USA in Los Angeles also mounted a campaign to get activists to contact the State Department and their representatives in the House and Senate about the waiver. John Ballard called the Nicaragua Network several weeks before the decision to say that he was passing our e-mails and voice-mails on to the top officials in the State Department. Thank you to all who called or wrote.] (Radio La Primerisima, July 24, 25; http://spanish.nicaragua.usembassy.gov/pr_120725_waiver.html; La Prensa, July 25; El Nuevo Diario, July 25, 26; Informe Pastran, July 24, 25, 27; http://foreignaffairs.house.gov/news/story/?2552)

2. Verification of voter rolls held

About 700,000 voters went to their polling places over the past weekend to verify that they were on the voter rolls, apply for a voter ID, re-register to vote after not having participated in two national elections, or to report a change of address. This is part of the process leading up to the November 4 municipal elections. There were some problems reported. In the mining triangle, address change forms ran out because of the movement of many new people into the area to mine gold. In other places the technician to make voter ID cards did not show up. Independent Liberal Party (PLI) National Assembly Deputy Mauricio Diaz said that the Supreme Electoral Council (CSE) did not issue the necessary announcements that verification was going to take place resulting in many people not knowing it was happening. He also criticized the decision of the CSE, dating from 2007, to carry out the verification with only paid electoral staff and not to include poll watchers from the political parties. But, El Nuevo Diario reported that the “verification closed better” than it had opened with many young people lining up at polling places. Government Communications Coordinator Rosario Murillo said of the weekend’s events, “We are advancing in democracy, in the rights of women, of the family, of the communities, guaranteeing that we all feel equal in this our free country.”

In other political news, the PLI announced that it would participate in the November elections even though party representatives said that they did not see the conditions they had laid out for free and fair elections being met. Among those conditions is the replacement of some or all of the magistrates of the CSE, whose terms have run out. PLI National Assembly Deputy Luis Callejas said his party was working on possible alliances with other parties, including at the moment, the Citizen Action Party (PAC) and the Movement of Coast Unity (PAMUC). The Sandinista Renovation Movement (MRS), part of the PLI Alliance, said the elections will be fraudulent and the party will not allow any of its members to run as candidates in the elections. Dora Maria Tellez told Channel 2 Television that, “If there is someone who is affiliated with the MRS and appears on one of the lists of the PLI or any other party, that person will cease being a member of the MRS.”

As we reported last week, the Constitutional Liberal Party (PLC) has also decided to run candidates in the municipal elections. The Conservative Party and the Christian Democratic Union (UDC) are also participating. (Informe Pastran, July 25, 27, 30; El Nuevo Diario, July 24, 28, 30; La Prensa, July 25, 29; Radio La Primerisima, July 28, 29)

3. Economic briefs

On July 26, Pedro Haslam, president of the Rural Development Institute, announced that the country’s basic grain producers had planted 543,000 acres of corn, more than the goal for the first planting season, and expected to harvest 540,000 acres. More acres of beans and rice were planted than the goal as well and the August harvest is expected to be good. Haslam added that increases were also seen in sorghum, potatoes, squash, tomatoes, onions, yucca, and other root crops. Minister of Agriculture Ariel Bucardo said, however, that climatologists are predicting a renewal of the El Niño weather phenomenon which could mean drought in the next period. (Radio La Primerisima, July 26; Informe Pastran, July 27; El Nuevo Diario, July 26)

In other news, Minister of Energy Emilio Rappaccioli announced that the La Fe-San Martin wind farm, built by Blue Power Energy, S.A., began a test run of its first five windmills (out of a total of 22) that will eventually provide 39.5 megawatts to the national electricity grid. Rappaccioli said that the test runs will probably last two or three weeks and if all goes well, the windmills will begin functioning commercially. This is the second wind farm built by Blue Power in Nicaragua; both of them are in the Department of Rivas. Each has involved an investment of between US$105 and US$115 million but together they are expected to save much more than that in lower costs for importation of petroleum. There are two other wind farms being built in Rivas, one by Mexican investors and the other by ALBA of Nicaragua. (El Nuevo Diario, July 26)

Eight hundred producers from all over Nicaragua participated in the IV Gathering of Producers and Exporters 2012. At the gathering, sponsored by the Nicaragua Association of Producers and Exporters (APEN), producers attended workshops to learn about business opportunities in Nicaragua and also abroad under Nicaragua’s trade agreements. Representatives from the Latin American Integration Association (ALADI) spoke of opportunities for Nicaraguans as part of ALADI while others promoted possibilities under the new agreement between the European Union and Central America. APEN, in conjunction with the Nicaraguan-Northern European Chamber of Commerce, identified as a special objective for the Association the identification of small and medium businesses with potential for export to Northern Europe. At the same time as the Producers and Exporters meeting, cattle ranchers exhibited their prize animals. (Informe Pastran, July 27; El Nuevo Diario, July 28, 30; Radio La Primerisima July 28)

4. Joint military training base to be built in Honduras

According to military sources, the armies of Guatemala, El Salvador, Honduras and Nicaragua agreed to the installation of a regional training base in Honduras. It is expected to begin functioning in late 2012 or early 2013. The base, to be operated with US logistical and technical support, will provide counter-terrorism training including prevention of explosive and car bomb attacks by organized crime. This escalation of the so-called “drug war” was adopted during the 26th ordinary meeting of the Superior Council of the Conference of Central American Armed Forces in Honduras. Honduras army spokesperson Col. Jeremias Arevalo said, “There is no doubt. It is clear that, yes, we are going to boost the joint actions and have common goals in terms of intelligence and operating plans.” The training facility will join the US radar station in El Salvador, which has been operating for several years to track possible smuggling by boats and planes. It will also join three new US bases installed in Honduras in April, and will augment the Soto Cano (Palmerola) base in Honduras where the US now maintains 600 US soldiers and coordinates its military actions in all of Central America. (Radio La Primerisima, July 27)

5. Labor conditions improve in Free Trade Zones

According to El Nuevo Diario, maquiladora assembly plant work in the country’s Free Trade Zones (FTZ) has improved in recent years although problems remain. Quoting “Sylvia” who has worked in FTZ factories for 10 years, labor conditions are now “very different.” She said that ten years ago, before the current government, “they treated us quite inhumanely.” Since the first maquila opened in the first FTZ in 1991, the sector has exploded. In that year, 17 textile companies employed 9,000 workers. Last year 99,506 workers exported products worth over US$2 billion. Before 2007 the word maquiladora was a synonym for labor abuse. It was difficult for workers to organize unions and those who tried were often fired. Today most factories are unionized and there are more government inspectors inspecting more frequently and issuing more fines. There is labor stability thanks to tripartite talks implemented by the Ortega government bringing together factory owners, unions, and the Ministry of Labor to negotiate the minimum wage, meal subsidies, health care, and working conditions every six months. Nicaragua is also one of seven countries benefiting from the US Labor Department’s Better Work program (affiliated with the International Labor Organization) which provides initiatives and funding to improve labor conditions.

Still, while fewer workers are subjected to physical and psychological abuse than in previous years, and while more workers have better access to bathrooms and drinking water, Nicaraguan FTZ workers make only $142.63 a month, second only to Haiti as the lowest pay in the hemisphere. Employees of the FTZ factories are overwhelmingly female and 75% of those are mothers. Nevertheless, El Nuevo Diario quoted long-time FTZ workers who said that conditions used to be worse. One woman said there used to not be enough fans and the heat was stifling. Workers weren’t given masks and the lint in the air affected them. A 46 year old woman with 15 years as a FTZ worker said, “The Ministry of Labor has been reviewing all this and there are regulations now that the companies are following.” (El Nuevo Diario, July 30)

6. Ambitious housing projects proceed

So far this year the Nicaraguan government has provided 3,250 homes for families in extreme poverty according to Judith Silva, director of the Nicaraguan Institute of Urban and Rural Housing (INVUR). The social interest housing is provided through an alliance between the banks, workers and INVUR. There are currently 42 housing projects moving forward, a first in the nation’s history, said Silva. On July 26 the government of President Daniel Ortega kicked off a new program, focused mostly on families in extreme poverty. The Housing and Comprehensive Habitat Improvement Program will go beyond building houses to serve the whole neighborhood, with community participation, to wire it for electricity, install water and sewers, pave streets, and develop parks. Silva emphasized that all the institutions of government will be in communication to insure that their work is complementary. The goal of the program is to benefit 13,000 families, both urban and rural, over the next four years. The program will generate 71,500 direct jobs and 123,000 indirect ones. The National Technological Institute will give certification to workers with construction skills which will help them get jobs. Funding is provided by the government, the Inter-American Development Bank, the Central American Bank of Economic Integration, as well as Spain and the Netherlands. (Radio La Primerisima, July 25; El Nuevo Diario, July 26; La Prensa, July 27; Informe Pastran, July 27)

7. First person sentenced under law protecting women

The Seventh District Criminal Court, specializing in violence against women, issued the first sentence under Act 779, a law passed in Nicaragua’s National Assembly to punish abusers of women. Julio Esteban Rosales, age 28 was sentenced to eight months in jail for psychological abuse against his ex-wife and an additional eight months for assault on his former sister-in-law. Act 779, the Comprehensive Act to Stop Violence against Women went into effect on June 22. Judge Abelardo Ramos Alvir is the first to use it for sentencing. The law passed unanimously in the National Assembly and was hailed as a major victory for Nicaraguan women. (La Prensa, July 27)

8. Canal moves a step closer

A inter-oceanic canal across Nicaragua moved a step closer to reality with the award of a US$720,000 feasibility study contract to three Dutch companies, Royal Haskoning, DHV, and Ecorys. The consortium will determine which of six possible routes is most feasible. All routes cross Lake Nicaragua and the narrow piece of land between Lake Nicaragua and the Pacific Ocean known as the Isthmus of Rivas according to Manuel Coronel Kautz, director of the Grand Canal Authority. The route that has received the least study up until now is the one that would use the San Juan River at Nicaragua’s southern border. The study will include the feasibility of construction, sustainability of investment, and canal governance. Nicaragua estimates the canal will cost US$30 billion to construct. (Radio La Primerisima, July 26; El Nuevo Diario, July 26)

9. Nicaraguan Olympic boxer advances

Nicaraguan boxer Osmar Bravo, fighting in the 81 kilogram (light heavy-weight) class, won his first fight against Bosko Draskovic of Montenegro. It was Nicaragua’s second Olympic boxing victory. The first was in 1992. Bravo’s second fight will be against Oleksandr Gvozdyk of the Ukraine. (Radio La Primerisima, July 30; La Prensa, July 30; El Nuevo Diario, July 30)

 

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