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

Honduras

Attorney General's Office in turmoil
On October 15, highest officials in the Attorney General's Office (MP) suspended investigations into the corruption cases involving ex president Rafael Leonardo Callejas (1990-1994) and some of his close associates. The decision provoked anger from a group of attorneys from the Honduran Association of Attorneys. During a press conference, titled "We are ashamed of the decision", the Association condemned the political intervention into the judicial system. As a supposed reprisal for this act of rebellion, ten of the attorneys were fired and seven transferred to other parts of the country. Civil society groups were quick to react, declaring: "we are also ashamed" and demanding that the dismissals and transfers be annulled. The groups subsequently called for the MP's financial director, Jaime Banegas, to resign. Both analysts and civil society agreed that the current turmoil is symptomatic of the control that the powers that be have over the judicial system, and indicative of the culture of impunity that prevails in the country.

Nicaragua

Micro-finance chases savings
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.

Guatemala

Nueva Linda abuses confirmed
Campesinos are occupying the Nueva Linda farm for the second time. Although land ownership does not figure among the occupiers' grievances, the episode could become a landmark in the history of the campesino struggle in Guatemala. While there have been efforts to issue another eviction order, the Attorney General's Office (MP) has been slow to investigate the first occupation, on August 31, thus confirming suspicions of bias by the authorities and of the precarious state of civil liberties. Although attempts by social, political and religious leaders to initiate a Negotiating Commission averted a second eviction process, which may have had dire consequences, the conflict is still far from being resolved.

El Salvador

Economy stagnates
El Salvador is currently experiencing a severe economic recession. Analysts warn that the current situation is unsustainable given the lack of productive and competitive potential of national companies, especially in the medium, small and micro business sectors. The Latin American Economic Commission (CEPAL) has identified the main cause of imbalance in the commercial sector as the deficit in the country's finances. However, what is worrying is that they consider growing remittances as a lifeline. In this economic situation, experts say that high prices are having a deep impact on the country's urban and rural areas, though they highlight that the latter are worse off.

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Región

China and Central America: different paths towards economic development
On November 1, the presidents of Panama and Colombia signed a Memorandum of Understanding to start construction of a natural gas pipeline to serve Panama and extend an electricity line from Central to South America. Construction dates have yet to be set, but there is already much business interest surrounding the projects - as well as opposition from various social groups, most notably environmentalists.

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Panama

Pipeline to link Panama to Colombia
On November 1, the presidents of Panama and Colombia signed a Memorandum of Understanding to start construction of a natural gas pipeline to serve Panama and extend an electricity line from Central to South America. Construction dates have yet to be set, but there is already much business interest surrounding the projects - as well as opposition from various social groups, most notably environmentalists.

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Inforpress Centroamericana inforpre@inforpressca.com

12 November 2004