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

Nicaragua

Left gains in municipal elections
The leftist opposition, Sandinista National Liberation Front (FSLN), triumphed in the November 7 municipal elections, winning 85 of the 152 mayoral seats available. Delays in the inspection of polling centers and a rise in the number of challenges to the Supreme Electoral Court (CSE) postponed the publication of the official results. Leftist celebrations were tempered by the killing of a journalist in a fight between rival political factions during vote counting. Meanwhile, those parties that took part in the contest have begun internal investigations into their respective performances, with a view to identifying their strengths and weaknesses ahead of the presidential elections in 2006.

Honduras

Primary Congressional elections underway
On October 20, the three biggest parties named their candidates for the primary elections, set for 20 February 2005, which will determine who will run for president the following November. The forthcoming elections will be the first test of the new Electoral and Political Organizations Law passed in April this year. On the one hand, civil society is ready and waiting for the new law to have a positive impact on the political game and to pave the way for a fairer election process. But on the other hand, those in charge of the leading parties are seeking to find their way round some of the reforms in order to maintain their dominance.

Region

Closer links with South America
At the 19-nation Rio Group Summit, closer political, economic and social integration of Central and South America was proposed, although no concrete commitments were made. While Guatemala is moving towards a Free Trade Agreement (FTA) between the Central American Integration System (SICA) and the Southern Common Market (Mercosur), El Salvador has so far resisted such a move. However, a timescale of provisional meetings for 2005 has been agreed which, if fruitful, could result in a powerful counterweight to the FTA between the isthmus countries and the US. Maintaining its unilateral position with regards to the agreement, the Guatemalan government believes this move provides "more freedom" in its relation with other markets.

Guatemala

Ex PAC payments saga continues
The recent approval of a new law authorizing payments to members of the former Civil Defense Patrols (ex PAC) has again provoked outspoken criticisms of Congress. As well as ex patrols and government authorities, human rights activists have also become trapped in the vicious circle surrounding the question of payment; the new law has already prompted appeals against it. The latest events have accentuated the differences not only between the various factions of the ex PAC but also between the political interests behind them.

El Salvador

Tax laws ratified
In the final week of October, the Legislative Assembly approved a series of fiscal reforms. Although president Elías Antonio Saca and his cabinet made concessions to the private sector, businessmen continued to voice their discontent over the final version of the reforms. In parliament, the National Conciliation Party (PCN) provided the necessary support to push through the initiatives. However, the process was tainted by the FMLN's decision to pull out of both the talks and the voting process. Furthermore, economic and business analysts predict poor results for the new fiscal package.

Costa Rica

Corruption scandal deepens
On October 27, José María Figueres Olsen, Costa Rica's president between 1994 and 1998, admitted receiving over US$900,000 from French telecommunications firm ALCATEL for consulting services after he left office. The revelations led Figueres to resign as chief executive of the World Economic Forum, and coincide with two other high profile corruption scandals involving ex presidents; Miguel Angel Rodriguez is under house arrest for allegedly taking further payments from ALCATEL, while Rafael Angel Calderon awaits trial charged with accepting an illegal commission on medical equipment.

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19 November 2004