Date: Mon, 14 Dec 1998 14:27:47 -0800 (PST)
From: Nicaragua Network <nicanet@igc.apc.org>
Subject: NICANET HOTLINE -- 12/14/98
Nicaragua Network Hotline
December 14, 1998
Topics covered in today's hotline include: Consultative Group meeting
disappoints civil society; US Army presence in Nicaragua increases;
Nicaragua sues US tobacco companies; and Belli resigns as Minister of Family.
Topic 1
The outcome of last week's meeting of the Consultative Group of Donors for
Central America fell far short of the hopes of representatives of civil
society and the FSLN. Although the Central American governments were
successful in obtaining pledges of an additional $137 million for hurricane
disaster relief and reconstruction (bringing the total to $300 million),
donors were clear that there would be no easing of the economic austerity
measures imposed on these countries by the international financial
institutions. These countries' hopes for immediate debt cancellation were
dashed as well. Instead, the donors declared a moratorium on debt payments
for Nicaragua and Honduras until the year 2001. At the end of this time,
Nicaragua will be eligible for a cancellation of between 80-85% of its debt,
but only if it adheres to the structural adjustment program prescribed by
the IMF.
In addition to the promises of bilateral aid, the World Bank pledged $1
billion in interest-free, forty-year loans, while the Interamerican
Development Bank pledged $3 billion in financing and debt relief. The IMF
stated that it would "consider speeding up debt relief for Nicaragua."
However, none of the terms discussed for debt relief exceeds those of the
Heavily Indebted Poor Country (HIPC) initiative -- the World Bank program
that was considered insufficient for Nicaragua even before Hurricane Mitch.
The donors' refusal to modify the structural adjustment policies upon which
previous aid has been conditioned virtually eliminates the possibility for
sustainable reconstruction. Given the magnitude of the losses caused by the
storm, recovery for these countries depends on the governments investing any
savings reaped from the debt moratorium into infrastructure, social
services, and credit for small and medium agricultural producers. Such
investment is not permitted within the context of structural adjustment. As
a result, the millions of dollars in relief aid that will be pouring into
Central America over the next several years will be nothing more than a
short-term "band-aid" solution.
Topic 2
Nearly 400 US soldiers arrived in Nicaragua last week to assist in
reconstruction efforts in the areas most severely affected by Hurricane
Mitch. Another 1000 are expected to arrive within the coming week, which
will bring the total number of US military personnel to approximately 1,800.
Many commentators in the media have made comparisons between this US
military mission and earlier US Marine presence in Nicaragua, most notably
the massive presence during the war against Sandino in the late 1920s and
early 1930s. Ironically, Ocotal, where the US army engineers will rebuild a
bridge (one of the country's largest, totally destroyed by the hurricane),
was the site of US aerial bombing in an attempt to dislodge Sandino's troops
some 70 years ago. A US captain, interviewed by El Nuevo Diario, said he
didn't know who Sandino was, and his interpreter told the reporters to seek
out the US Embassy if they had any more "political" questions.
The US Ambassador to Nicaragua, Lino Gutierrez, has commented that relations
between the US and Nicaraguan armies have notably improved in the wake of
the hurricane. The US and Nicaragua have not had formal military relations
since the triumph of the Sandinista Revolution. The US solidarity movement
has never advocated the normalization of military relations, because it
would open the door for the US to provide military training to the
Nicaraguan army at facilities such as the School of the Americas, notorious
for training Latin American military dictators and human rights abusers.
The Nicaraguan army is still primarily a Sandinista institution, and stands
in sharp contrast to its counterparts in El Salvador, Honduras, and
Guatemala -- all US trained institutions with abysmal human rights records.
Fears that military relations will soon be normalized were allayed when head
of the Nicaraguan army, General Joaquin Cuadra, did not show up at the
airport to greet the US military mission last week.
Topic 3
The Nicaraguan government has filed a case in a Puerto Rican court against
11 US tobacco companies. The Nicaraguan Attorney General's office says that
Nicaragua was misled about the damaging effects of tobacco use and the
addictive characteristics of nicotine, and therefore violated US law. The
case is being argued by a US firm based in Houston. The dollar amount
attached to the case was not given, but a similar case earlier this year,
the Guatemalan government sued tobacco companies for over $300 million.
Phillip Morris is among the companies named in the lawsuit. The Nicaraguan
Attorney General's office says that the country has spent "millions of
dollars" treating illnesses related to smoking. About 27% of Nicaraguans
smoke and the companies named in the suit control 100% of cigarette sales in
the country.
Topic 4
Minister of the Family Humberto Belli has resigned his post, stating that
economic problems in the recently-created institution severely curtailed his
ability to take action. Belli, a member of the right-wing Catholic sect
"City of God" known for his reactionary political and social views, served
as Minister of Education under Chamorro and Aleman until September 1 of this
year. Belli's resignation from the Ministry of the Family is believed to
have stemmed at least in part from a dispute with his successor at the
Education Ministry, José Antonio Alvarado.
Belli had accused Alvarado of violating his much-vaunted school "autonomy"
plan, to which Alvarado responded that under the current situation of school
autonomy, severe problems of corruption--both academic and financial--had
been noted in a number of schools. Belli also said that Alvarado has been
making daily visits to 10th and 11th grade classes with the goal of
increasing his political visibility. [Most students in these grades are able
to vote.] Most political observers agree that Alvarado is bent on winning
the Nicaraguan presidency in the next elections, and many believe that he is
Aleman's choice to be tthe next Liberal candidate. Belli said he is
concerned that Alvarado, secretary general of the Liberal party, is
"promoting anti-Liberal politics."
This hotline is prepared from the Nicaragua News Service and other sources.
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