31 years of economic and political information and analysis on the region

El Salvador

Doubts persist over ethics an independencie of media
Although analysts believe there have been promising advances in terms of freedom of expression for journalists and the media, there remains an undeniable culture of personal favors and cronyism within much of the communications sector. Furthermore, most all national media adopt editorial lines which are ideologically partisan and news stories are accordingly biased. One of the reasons for this lack of objectivity is the media’s economic dependence on advertising, in turn controlled by agencies and big business which often remain immune to criticism.

Nicaragua

América Móvil seeks market domination
With the latest acquisition of shares in Nicaragua’s formerly state-owned Telecommunications Company ENITEL, América Móvil (AM) has consolidated its market presence and now has total control of the country’s fixed line telephone network. Following the purchase of Megatel, Mexican giant AM is also market leader in Honduras and now competes with Telefónica for overall control in Latin America. Meanwhile, unionists are worried about AM’s increased presence in Nicaragua due to the company’s precedent for exploitative practices.

Guatemala

Honey exports doubin 2003
The value of non traditional exports has steadily risen in recent years, due to growth in a wide range of agricultural, maritime and manufactured products. Given the continued low prices for coffee, and the barriers to small-producer participation in other traditional sectors such as bananas, sugar cane and petroleum, the opportunities for growth are concentrated in other non traditional farm prdoucts. One small, but growing area is honey production, which doubled its export income last year, following a combination of higher prices and output. Guatemalan honey production is considered of high quality due to the flavor produced by the wide variety of flora, but producers face numerous obstacles, such as the impact of pesticides and limited access to markets. Specialists consider that producer associations and technificed production are keys to increasing income.

State blamed in human rights verdict
Once again, the International Court of Human Rights (ICHR) has handed down a verdict against the Guatemalan state. time the court charges the state as responsible for the disappearance of 14-year-old Marco Molina Theissen, who was captured by the Army in 1981. Human rights organizations have expressed their satisfaction regarding both the verdict and the Guatemalan state´s willingness to accept responsibility for human rights violations during the Armed Conflict.

Region

Pirated software dominates market
A recent study on illegal use of software in different regions of the world indicates that on average more than 65% of computer programs are "pirated" in the areas studied. The authors of the study call on governments to take actions against this practice, including a more active enforcement of copyright laws. Other experts on information technology call for the promotion of freeware or shareware as an alternative to the prohibitive prices set by transnational companies.

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Costa Rica

Mysterious discrepancies in Costa Eican and Mexican trade figures
According to Costa Rican authorities, in 2003 their country´s trade balance with Mexico was a negative US$247 million. However, according to Mexico, its trade balance with Costa Rica was a negative US$253 million — combined, the figures represent a half billion dollar deficit, in which both sides reportedly lose. Major discrepancies in trade figures have been reported since the free trade agreement between the two countries was signed in 1994. Although the International Monetary Fund regulates the statistical methods used in balance of payments calculations, both countries are sticking to their figures. According to one Costa Rican economist, Mexico is manipulating its trade figures for political purposes, transferring the weight of US exports to Mexico onto third countries in order to reduce the appearance of a trade imbalance stemming from the North American Free Trade Agreement (NAFTA). The ease with which trade statistics can be manipulated casts serious doubts over the real impact of globalization, especially when intracompany accounting is considered, such as that seen in Intel´s global production arrangements.

 

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06 August 2004