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

Panama

Moscoso faces new embezzlement charges
Less than 60 days after leaving office, the publication of a report into the use of discretional funds by Mireya Moscoso (1999-2004) has once again plunged the ex president into controversy. She may soon find herself among the list of Central American ex presidents who have to face trial on charges of corruption. The financial settlements report has collated data on how much state money Moscoso allegedly spent on jewelry, luxury handbags and haute couture dresses. A group of lawyers has denounced the former leader to the comptroller general, ordering her to return the purchases. Meanwhile Moscoso denies the allegations, arguing that the claims form part of a mud slinging campaign orchestrated by president Martin Torrijos. She has also resigned from her seat on the Central American parliament, thus stripping herself of parliamentary immunity.

Region

Isthmus hit hard by high oil prices
The world is experiencing an oil crisis without precedent. The war in Iraq, instability in the Middle East and the global rise in oil consumption have pushed prices to an all time nominal record of over US$50 a barrel. That the entire world is dependent on the "black gold" is a well known fact. However, the present crisis is having an especially acute impact on non-oil producing countries, and thus on Central America. On October 19, representatives of the region's countries agreed to draw up a new timetable for the future to find means of confronting the high oil prices and of reducing energy consumption. Two possible ways in which to combat the crisis were highlighted: the development of different sources of energy and the implementation of an "ethanol plan". The latter could revitalize the rural economy, create thousands of jobs and contribute to environmental efforts to clean up the isthmus.

PARLACEN: carving out future integration
The Central American Parliament (PARLACEN) seems to be coming out of the inertia it has suffered since its inauguration 13 years ago. The inactivity has been mostly due to factors out of its hands, but now the parliament has set itself the task of redefining its agenda, which has hitherto gone unnoticed, to tackle crucial issues effecting regional integration. The new PARLACEN president, Nicaraguan Fabio Gadea, has outlined three priorities: to deepen relations with the region's presidents, to launch a publicity campaign to promote the parliament's potential and to push for more binding resolutions. Difficulties in balancing political factions on the board of directors could cause problems regarding the Central American Integration System's (SICA) budget and the definition of a clearer and more democratic relationship with regional governments.

Guatemala

Renewed calls for Women's Parliament
The world is experiencing an oil crisis without precedent. The war in Iraq, instability in the Middle East and the global rise in oil consumption have pushed prices to an all time nominal record of over US$50 a barrel. That the entire world is dependent on the "black gold" is a well known fact. However, the present crisis is having an especially acute impact on non-oil producing countries, and thus on Central America. On October 19, representatives of the region's countries agreed to draw up a new timetable for the future to find means of confronting the high oil prices and of reducing energy consumption. Two possible ways in which to combat the crisis were highlighted: the development of different sources of energy and the implementation of an "ethanol plan". The latter could revitalize the rural economy, create thousands of jobs and contribute to environmental efforts to clean up the isthmus.

Budget transfers cloud public audits
Differences over how to create an institution that could present the demands of women's organizations to Congress have alienated deputies and social representatives. Legally, the Women's Parliament would be appointed to the Women's Commission in Congress. Such a move would give women's organizations independence and the power to influence government decisions.

El Salvador

Social projects face financial realities
During his inaugural speech in June, president Antonio Saca promised to make social issues his number one priority. Four months into his presidency, various political and civilian pundits still believe Saca's message is essentially positive; however, they also point out the lack of concrete actions. Currently, the government is torn between maintaining its credibility by delivering on its progressive rhetoric, and the need to show loyalty to big business which financed the presidential campaign. The government's dilemma is also between fighting poverty in order to prove its willingness to promote change, and the urgent need to implement fiscal reform which would allow the financing of social reform policies.

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5 November 2004