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

Costa Rica

Corruption case implicates ex-president
Despite maintaining his innocence, on September 21, ex-president Rafael Calderón (1990-1994) deposited US$520,500 into an account belonging to the Costa Rican judiciary, the institution that is investigating Calderón for embezzlement. The Court suspects that Calderón could have received US$440,500 as part of a fee for a loan granted to the state in 2001. Just hours after making the deposit, Calderón declared to the press that he received the money “for legal activities related to my capacity as a lawyer.” The case against Calderón was made public on April 21 when Eliseo Vargas resigned as executive president of the Costa Rican Social Security Agency (CCSS), the same day that it came to light that the Fischel Corporation was renting his house. According to investigations, the Fischel Corporation, which is a principal provider of materials to the CCSS, would have benefited from a commission of more than US$8 million for landing the aforementioned loan and some of that money could have ended up in the hands of Calderón

El Salvador

Government promotes foreign investment
A year and a half ago the state Office for Investment Promotion (PROESA) proposed the idea that El Salvador could become a regional distribution and logistics center, along the lines of Uruguay in South America. PROESA have been buoyed by a recently completed feasibility study which indicates that the proposal has many strong points, including the country’s well developed infrastructure. Furthermore, there are signs that the government authorities are willing to take the necessary action to implement a proposal which they believe will provide a much needed boost for the economy. However, some analysts believe the project will face many hurdles.

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Guatemala

Political gender equality demanded
The Commission for Political Equality - consisting of women’s organizations - is asking the Special Congressional Commission for Electoral Affairs (CEAE) to reform article 212 of the Electoral and Political Parties Law, which deals with the application and inscription of candidates. Its goal is to establish a minimum quota of women participating in politics. The proposal has been supported by various political parties and in particular, by the New Nation Alliance, which is promoting the change as a legal reform. Others have spoken of the need for minimum quotas for indigenous people and young people

Nicaragua

Trade talks begin with Taiwan
On September 24 negotiations began between Nicaragua and Taiwan to extend trade links via a Free Trade Agreement (FTA). The Taiwanese have expressed interest in trade relations with the Central American country primarily because of its geographical proximity to the US, the biggest market in the world. An FTA with Nicaragua, added to the one that already exists between Taiwan and Panama, would give big advantages to Taiwan over other Asian countries that are trading their products directly with the US giant. Nicaragua hopes to attract tourist investments and to modernize its technological infrastructure, boost agricultural exports and generate more jobs.

Panama

Moscoso donations investigated
The Treasury Inspectors Office is investigating the suspicious handling of a sum of $45 million by the ex-president Mireya Moscoso´s administration. The money was donated by the Taiwanese government to Panama to help build hospital infrastructure. According to the investigation, the funds were managed through a private trust allegedly organized by the ex-Health Minister, Fernando Gracia.

Region

Governments reaffirm global war on hunger
The Summit against Hunger, held in New York in September, constitutes an effort to find ways to meet the Millennium Development Goals through initiatives that, according to some world leaders, require changes in the world economic and financial order. For the leaders attending the summit at the United Nations headquarters, the world situation today, in which 840 million people live in hunger, and 334 million live in extreme poverty, requires efforts to “close ranks” in order to reduce by one half in the next 10 years what has been called “one of the worst weapons of mass extermination”. In Central America, where more than six million persons live in poverty, initiatives are being discussed that will require greater political commitment on the part of governments, as well as the support of financial institutions and industrialized countries.

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Inforpress Centroamericana inforpre@inforpressca.com

01 October 2004