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

NICARAGUA

Truce defuses government crisis
Surprisingly, at a press conference on January 12, president Enrique Bolaños appeared side by side with Sandinista National Liberation Front (FSLN) leader Daniel Ortega Saavedra and Cardinal Miguel Obando y Bravo to publicly announce the signing of a political agreement, which has been touted for the last few weeks as the only way out of the institutional crisis that has thrown the country into tension and chaos. In signing the document, to which a Liberal Party (PL) representative will soon add his or her signature, the president officially accepted the legitimacy of the constitutional reforms passed by the Assembly on November 26 2004. It is hoped that these reforms, which curb the Executive's power whilst increasing those of the Legislature, will soon be ratified in a second legislative round. Such a move is likely to go ahead, as both majority parties, the FSLN and PL, have already announced their support for the reforms. Nevertheless, the precise date when the reforms will come in to affect will be subject to a `national dialogue'.

REGION

Never-ending war with maras
Official statistics from El Salvador and Honduras claim that 2004 saw reduced levels of crime. The countries' respective authorities put this success down to reforms in their penal codes, which gave the green light for specific campaigns against the youth gangs known as maras. However, individual crimes have been marked by increasing violence and brutality throughout the region _ particularly in Guatemala where no anti-mara strategy seems to exist. As a reaction to the harsher stance adopted by the governments, human rights groups, experts and various congressmen have denounced measures to imprison mara members as a form of social cleansing that violates both inherent human and constitutional rights. They urge the authorities to implement more constructive policies of rehabilitation instead.

US seeks to block world justice
The inauguration of the International Criminal Court (ICC) on March 11 2003 represented an important advance for international justice, as the first permanent international judicial body capable of trying individuals for human rights violations. The US has proved hostile to such developments however, attempting to secure bilateral agreements which exempt US nationals from ICC jurisdiction. In the region, Costa Rica, Honduras and Panama have signed and ratified their participation in the ICC. The latter two, together with El Salvador and Nicaragua, have also signed bilateral agreements with the US.

PANAMA

Modernization of Canal in doubt
After five years of being administered by the Panamanian authorities, the Panama Canal appears to be in good hands. Shipping traffic has increased, journeys take less time and there are fewer accidents than in the days under US management. However, its possible expansion is in doubt following the financial crisis currently affecting the Social Security Service, which could result in the country taking on unviable amounts of debt in order to finance the project. While the authorities say expansion will lead to the displacement of around 8,500 people from their homes, Catholic NGO Caritas estimates the figure could be closer to 35 thousand. According to a Caritas report, almost 80 thousand hectares of high ecological value will be harmed if the project goes ahead. The final decision will be made in a referendum planned for November 2005.

GUATEMALA

Spain's first steps to prosecute Álvarez
On December 10 2004, the Spanish government issued an international arrest warrant for Donaldo Álvarez Ruiz, Guatemala's ex interior minister, charging him with responsibility for the 1980 assault on the Spanish Embassy in Guatemala in which 39 people died. Spain also accuses Álvarez of being behind the deaths of three Spanish priests, and the disappearance of another, between 1980 and 1981. The hunt for the accused individual in Mexico has thus far been fruitless, amid charges that the Mexican government has made a deal to let him escape.

COSTA RICA

2004: a shaky year for democracy
2004 began with huge expectations following Costa Rica's ratification of the Central American Free Trade Agreement (CAFTA) with the US, having initially refused to sign at the same time as the isthmus countries one month earlier. However, with the discovery of unreported 'side letters' and the extended discussion of certain terms of the agreement, these expectations soured, many feeling disillusioned over the lack of popular consultation regarding the Treaty's final content. This undermining of the democratic process was further intensified following a series of corruption scandals involving civil servants, businessmen and ex presidents.

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14 January 2005