TUESDAY, MARCH 18, 2008

Nicaragua Network Hotline (March 18, 2009)

Topics covered in this hotline include:
1. Nicaraguans living abroad sent US$739 million to relatives back home in 2007
2. “Chureca” workers block entrance to dump causing public debate and fears for public health
3. Nicaragua repairs relations with Colombia, strengthens ties to Costa Rica
4. Political alliances register candidates for local elections
5. Iran to loan Nicaragua US$233.4 million for construction of hydro electric plant


Topic 1: Nicaraguans living abroad sent US$739 million to relatives back home in 2007

The remittances that Nicaraguans living abroad sent to their family members in Nicaragua reached US$739.6 million in 2007, according to the Central Bank of Nicaragua. This was the highest figure in the last two decades according to the Bank. In 2006, the figure was US$697.5 million; in 2005 it was US$615.7 million and in 2004 the amount was US$518.8 million. Between 1994 and 2003, the average amount was only US$234.1 million.

The Central Bank predicts that in 2008 the value of the remittances will reach US$800 million. The amount the country receives each year in family remittances equals approximately 60% of the amount earned from the country's exports and is greater than the amount received in foreign aid, which amounts to about US$500 million each year.

Of the US$800 million expected to be received by Nicaraguan families from abroad in 2008, about US$600 million is expected to come from the United States while about US$200 million will come from Costa Rica. Approximately one million Nicaraguans live in Costa Rica, according to several sources. The Nicaraguan Foreign Ministry estimates that about 20% of Nicaragua's 5.2 million citizens live abroad, principally in the United States and Costa Rica. Nicaragua remains the second poorest country in the hemisphere and subject to free trade vulture capitalism. While anti-poverty measures undertaken by the Ortega government can make a substantial difference, only measures taken to change the dominate global economic model will ultimately allow Nicaraguans to reunite their families and earn a livelihood in Nicaragua.

Topic 2: “Chureca” workers block entrance to dump causing public debate and fears for public health

The more than 1,600 workers who earn their living by scavenging for recyclable material in Managua's municipal garbage dump “La Chureca” began blocking the entrance to the site on Mar. 1 as part of a protest against the local authorities who, they claim, extract the most valuable materials from the garbage trucks' loads before they reach “La Chureca.” According to the workers, who are affiliated with both the Nicaraguan Community Movement and the National Workers Front (FNT), officials from Managua's local government encourage the workers of the municipal garbage collection service to pick out the most valuable waste materials like iron, bronze, copper, aluminum, and cardboard. These materials are then sold on to companies with links to the local government, claims German Salgado, one of the Chureca workers' leaders.

This heart wrenching story underlines Nicaragua's poverty and pits the miserably poor against the desperately poor where the “quality” of garbage becomes a life and death issue.

“There are over 1,600 people in Managua's largest garbage dump, Chureca, who live from collecting recyclable materials and another 400 or 500 who wash and sell the materials. The National Workers Front issued a statement on Mar. 13 saying it would defend the “Chureca” workers in their struggle no matter how far they decide to take it. Mayor Dionisio Marenco described the FNT's decision to support the workers as “totally irresponsible” given that the protest was putting the lives of 1.2 million people at risk. FSLN deputy and leader of the National Workers Front Gustavo Porras said Marenco was acting in a “socially insensitive” way.

As a result of the protest the streets of Managua are full of garbage. The Ministry of Health (MINSA) has warned that the city is on the brink of an outbreak of disease due to the presence of over 3,000 tons of waste, including organic waste and dead animals, on the city's streets.

Porras suggested the city government offer its low paid garbage collector a bonus and other benefits in compensation for not extracting the best quality recyclable material. He described this as a “just” and “economically viable” solution. Independent economist Adolfo Acevedo denied that “perverse incentives” could solve the problem because garbage collectors, who earn barely enough to get by, would not stop extracting and selling recyclable material to make a little extra money just because they were receiving a bonus from their employers. Acevedo went on to point out that there is nothing the authorities can do to prevent any individual from getting their hands on and selling garbage because it does not belong to anyone. The garbage collectors “are not stealing the waste,” he said.

Anyway, “you are not going to solve the problem by dumping better quality waste,” said sociologist Cirilo Otero, Director of the Center for Environmental Policy Initiatives. “The solution is to get the “Chureca” workers out of there, train them and employ them in something healthy and productive. By taking them out of there you would be saving the lives of the children who die after consuming contaminated food.”

Of the 1,600 “Chureca” workers, over 500 are between the ages of 7 and 18 according to a study carried out by the Two Generations Center, a non-profit agency that works to support the workers. According to the findings of an investigation by the National Autonomous University of Nicaragua (UNAN) over 30% of the children who work in the garbage dump are contaminated with lead, mercury and DDT. Walter Calderon of the Two Generations Center said this protest reflects the “very tip of the iceberg of a profound social problem... There had to be an emergency to remind the Nicaraguan society that this hell exists where women give birth amidst garbage.”

Topic 3: Nicaragua repairs relations with Colombia, strengthens ties to Costa Rica

On Mar. 12 Nicaragua officially resumed diplomatic relations with Colombia after suspending them on Mar. 6 in solidarity with Ecuador. Colombia had attacked a FARC camp in Ecuador, a violation of Ecuador's sovereignty condemned by every country in the Organization of American States except the US. President Daniel Ortega said he feared a similar attack on Nicaragua's sovereignty due to the maritime border dispute between the two countries. Colombian President Alvaro Uribe promised to withdraw the war ships his Navy had located along the 82nd Meridian, which marks the disputed maritime border, during the XX Summit of the Rio Group, and Ortega decided to normalize relations.

On Mar. 11 President Ortega announced that he and Uribe had made a verbal agreement to carry out joint drug trafficking patrols in the disputed area to the east of the 82nd Meridian. Members of the Rio Group would help by overseeing this new relationship between the Nicaraguan and Colombian armed forces until the International Court of Justice issues a conclusive ruling on the bilateral dispute, said Ortega. According to the Nicaraguan President “the most important lesson” to come out of the Rio Group Summit during which the crisis between Colombia, Ecuador and Venezuela was overcome, “is that we Latin Americans get on better and can resolve our problems more easily without the presence of the US.”

During the same period Ortega and Costa Rican President Oscar Arias signed a joint declaration committing them to strengthen relations. Both presidents confirmed intentions to overcome the difficulties between Nicaragua and Costa Rica over issues like border controls and migration. The signing of the declaration was particularly significant given the turbulent history the two presidents share. Arias was president of Costa Rica during the contra war when he allowed Northern Costa Rica to become a basing area for contra attacks on Nicaragua. He also militarized Costa Rica's security forces during that period turning the fact that Costa Rica does not have an army into a hollow truth.

The Nicaraguan and Costa Rican bilateral commission did not meet between 1997 and 2006 due to a dispute concerning navigation rights on San Juan River which marks the border between the two countries but belongs by treaty to Nicaragua. In 2005, the Costa Rican government took the case to the World Court when the Nicaraguan government prohibited Costa Rican armed police guards from patrolling the river. During the bilateral meeting in Managua both presidents said they planned to leave the matter up to the World Court and that the dispute should not be an obstacle to developing closer bilateral relations.

Topic 4: Political alliances register candidates for local elections

On Mar. 14, as scheduled, the country's various political alliances registered their candidates for mayor, vice mayor and city councilors for the upcoming municipal elections in November. There were no major surprises as to the candidates each alliance registered, although the Constitutional Liberal Party (PLC)-led alliance kept journalists in suspense by not registering its candidates until just a few minutes before the midnight deadline.

It is generally agreed that control over the local government of Managua is the most sought after prize in the Nicaraguan municipal elections, which are held every four years. As expected the Sandinista- led coalition registered the former world featherweight boxing champion Alexis Arguello as its candidate for mayor of Managua and journalist Deysi Torres for vice mayor while the PLC-led coalition registered former presidential candidate Eduardo Montealegre and PLC rebel Enrique Quiñonez for Managua mayor and vice mayor. The Sandinista Renovation Movement (MRS), which concentrates most of its support in Managua, registered economist Enrique Saenz and journalist Azucena Castillo as its candidates for Managua mayor and vice mayor.

Currently the governing FSLN controls 87 of the 152 municipal governments, 5 out of 6 of the municipalities of the department of Managua and 25 of the 42 most important towns in the country after what was described as a landslide victory in the local elections of 2004.

Despite a traditionally high level of abstinence among voters, the municipal elections, which are held half way through each presidential period, are generally regarded as a referendum on the governing party. It remains to be seen if the FSLN will be able to cling to its majority of large town and city mayors' offices against the united Liberal forces when the population goes to vote on Nov. 2. (Channel 2, 03/14, Channel 4, 03/14, Radio La Primerisima, 04/17)

Topic 5: Iran to loan Nicaragua US$233.4 million for construction of hydro electric plant

On Mar. 12 Minister of Energy Emilio Rappaccioli announced that the Iranian government has approved a loan to Nicaragua of 150 million Euros (US$233.4 million) for the construction of a damn and a hydro electric generating plant in the northern department of Jinotega. The loan, which still needs to be approved by the Nicaraguan National Assembly, should be paid back within ten years at an interest rate of 5%. Construction of the mega project, which will be carried out by an Iranian company, will begin at the end of the year, said Rappaccioli, and should be completed by the end of 2011. The hydro electric plant, which will be situated on the Tuma River, will generate 70 megawatts of electricity (Nicaragua currently uses approximately 490 megawatts).

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

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