Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for May 08, 2007

News topics covered in this Hotline include:

Topic 1: Ortega administration kicks-off the “Zero Hunger” program


The “Zero Hunger Program,” which aims to reduce poverty in the rural areas over a five year period, was inaugurated by President Daniel Ortega and other members of his administration in the northern department of Jinotega. The program was designed to achieve the first objective of the United Nations’ Millennium Development Goals, “to eradicate extreme poverty and reduce hunger to zero.”

“Zero Hunger” with its budget of US$150 million plans to deliver a US$2,000 bond or voucher to 75,000 rural families between 2007 and 2012. The voucher will consist of the delivery of a pregnant cow and a pregnant sow, five chickens and a rooster, seeds, fruit-bearing plants and plants for reforestation. The project’s short-term objective is to have each rural family capable of producing enough milk, meat, eggs, fruits, vegetables and cereals to cover its basic needs while its medium range objective is to establish local markets and export certain products.

The families that benefit from the project will be required to pay back 20 percent of the amount that they receive in order to create a rural fund that will guarantee the continuity of the program. NGOs and representatives from each community will be in charge of managing the project.



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Topic 2: Nicaragua, Venezuela and Bolivia withdraw from ICSID

Nicaragua along with Venezuela and Bolivia will no longer participate in the World Bank’s International Center for Settlement of Investment Disputes (ICSID). This decision formed part of the agreements reached at the recent President’s Summit for the Bolivarian Alternative for the Americas (ALBA). The ICSID, with headquarters in Washington, DC, is a World Band agency that provides legal security for international investors by dealing with disputes between governments and transnational companies.

The text agreed upon by the ALBA countries specifies that they “emphatically” reject the impositions and pressures from “transnational companies that…resist the application of decisions by their countries’ sovereign governments. These companies rather threaten to initiate international legal proceedings and arbitration processes using mechanisms such as the ICSID.” A cited example of this in Nicaragua is the current dispute between the government and Union Fenosa, although Fenosa’s demand is with the Multinational Investment Guarantee Agency, another World Bank entity.

The Nicaragua Network believes that the US government has a moral obligation to pay Nicaragua for the devastating effects of its illegal war against the Sandinista revolution. At a modest 5% interest, that debt today stands at over $47 billion. The less than $2 billion in US aid over the last 17 years is a paltry sum in comparison.


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Topic 3: Venezuela to cover all of Nicaragua’s oil needs


A new agreement between Venezuela and Nicaragua under the Bolivarian Alternative for the Americas (ALBA) establishes that Venezuela will provide 100% of Nicaragua’s petroleum needs for a total of 10 million barrels annually. Venezuela will also finance 50% of the cost of this oil, worth approximately US$300 million. This money will be used to create a fund that will finance local projects as well as subsidize public transportation.

Nicaraguan President Daniel Ortega praised Venezuela for the more than US$340 million in cooperation agreements stating that "Venezuela has made available its petroleum, because under the ALBA, we are all one nation," with 63 million inhabitants including Nicaragua, Venezuela, Bolivia, Cuba and Haiti.


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Topic 4: Nicaraguan teachers sign agreement with the government

After more than a month of labor strikes and hunger fasts, union leaders for the Magisterial Union (which organized the strikes) and the Sandinista National Teachers Association (known as ANDEN from its Spanish acronym) signed an agreement with the Minister of the Economy. Members of these unions, however, have not yet voted to approve the agreement.

The agreement would require that the teachers unions end their labor and hunger strikes. The government on its part agreed to insure the immediate payout of the US$11.5 million budgeted for salaries under the previous administration and approved in the 2007 National Budget. In addition the government also promised to send to the National Assembly a bill to amend the budget with an increase of US$2.05 million for the Ministry of Education.

Teachers in the Magisterial Union argued that their fight for a raise of US$30 per month was not achieved and that the current agreement only provides a US$22 increase. The government however assured the union that the increase for some teachers could reach more than US$33 depending on their position and years of accumulated experience.

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Topic 5: Government announces plans preserve forests and water sources

At a press conference on May 7, Minister of the Environment and Natural Resources Juana Argeñal announced that the Ortega administration will be making an effort, through programs and more bio-friendly policies, to reverse the effects of contamination to the principal water sources in the country as well as the deforestation that has taken place in a number of departments. The administration has already sent to the National Assembly a bill to regulate water usage and will be working on reforms for agricultural land use among other projects.

An estimated 70,000 hectares of forest are lost every year in Nicaragua due to “indiscriminate logging” by timber companies along the Pacific Coast where close to 80% of Nicaragua’s population is found. The Sandinista government plans to introduce more bio-friendly logging regulations as well as provide material resources and funding for community-based reforestation projects around river basins and water sources in the Pacific coastal regions.

In addition to the water bill and reforestation projects, the government considers it an immediate priority to look for ways to prevent the contamination of the more than 21 river basins and important lakes that provide Nicaragua with fresh water. In Managua alone there are 11 large industrial companies that do not have adequate treatment systems for what they dump directly into Lake Managua. This, along with poor garbage management and contamination from underground seepages from gas stations are urgent problems for which the administration promises to look for viable solutions.

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Topic 6: Central American doctors call for Nicaragua to reinstate therapeutic abortion

The Central American Federation of Obstetric and Gynecology Associations and Societies (FECASOG) on May 7 declared publicly its support for reinstating legal therapeutic abortion into Nicaraguan law and gave its full support and solidarity to the reinstatement efforts by local organizations. The Central American doctors argued that therapeutic abortion is a “necessary procedure” in the practice of gynecology and obstetrics and that it saves lives and prevents severe medical complications.

Archbishop Leopoldo Brenes, in response to the statement, reiterated his opposition to therapeutic abortion during his homily in the Municipality of Cuapa the following day. Brenes asked his fellow citizens to unite to stop abortion saying that “the Church is for life, which is sustained in love. This is why we oppose abortion, because the Holy Virgin Mary always cared for her child providing the example of how women should fight to preserve life.”

The Nicaraguan Supreme Court currently has a case before it on the constitutionality of the National Assembly’s decision to make therapeutic abortion illegal.

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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.