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

Nicaragua

Bolaños in spotlight for alleged embezzlement
On October 8 the Republic's Treasury Inspector's Office (CRG) sent an impeachment request to the National Assembly against president Enrique Bolaños. The CRG accuses Bolaños of channeling 2001 election campaign funds through the Nicaraguan Democratic Foundation, which was created by ex president Arnoldo Alemán to ´clean´ money siphoned from the state. Alemán is currently serving a 20 year prison sentence for fraud and misappropriation of funds. The decision to impeach is now in the hands of the Legislative Assembly, which is controlled by the Sandinista National Liberation Front (FSLN) and the Constitutional Liberal Party (PLC). Both parties have made it clear that a commission to investigate the case against the president will be postponed until after the municipal elections of November 7.

Region

Remittances: keeping the economy afloat
Remittance figures leave no room for doubt concerning the huge importance of the role played by migrant workers for the isthmus' economies. In 2003, Guatemala, El Salvador, Honduras and Nicaragua received a total of US$5,865 million from migrant workers; with a growth rate of 20% in 2004 the total is expected to reach US$6,986 million by the end of the year. Numerous experts believe that this trend in growth will remain stable in the coming years and that the region's countries must try to properly exploit the potential that remittances have to maximize sustainable development. However, behind the figures another worry has been highlighted by social organizations that defend the interests of migrant workers; that of "social mutilation", which is precipitated by high levels of migration. They accuse Central American governments of double standards in using remittances to relieve the social bill but at the same time consciously sidestepping issues related to migrant workers' rights.

Guatemala

Legal frame to fight hunger still pending
With the approval of the Law of Food and Nutritional Security (SAN), it is hoped that a legal and institutional framework can be established to tackle the malnutrition faced by over 2.4 million Guatemalans. In order to deal with the crisis facing one in three of the country's municipalities, the government has launched the anti-hunger initiative "Frente Contra el Hambre", which will involve short and long-term measures that draw on the experiences of similar plans such as Brazil's Zero Hunger program.

New Comptroller Forgotten
More than seven months ago Congress unanimously decided to dismiss the ex Comptroller Óscar Dubón Palma and passed a resolution (No. 24-2004) agreeing to convoke the Selection Commission that would select candidates to finish the present term as Comptroller. After haphazard proceedings marred by contestations, the selection process has been forgotten. Despite the order to initiate new proceedings, Congress has not advanced on the matter.

El Salvador

"Friendly hand", "Hard hand"
On September 27 President Antonio Saca announced the commencement of the "Friendly Hand" plan, which will seek to rehabilitate members of juvenile gangs operating in the country. The new initiative is a counterpart to the "Super Hard Hand Plan" that aims at dismantling gangs and will use farm programs and other related schemes to provide rehabilitation treatment for these youths.

Panama

Protests fail to shake Torrijos´ popularity
Transport workers unhappy with fuel price increases, campesinos angry with plans to expand the Panama Canal, public sector workers affected by lay offs, leftist organizations protesting against Free Trade negotiations with the US… in under 3 months, opposition to the Martín Torrijos government has begun to take shape. However, a recent poll indicates that the president's popularity has grown to 80%. According to analysts, Torrijos will confront his first major challenge when he faces the Social Security crisis, which labor and business sources say involves a US$2,500 million debt.

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29 October 2004