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

GUATEMALA

Return to old "logic of terror"
The discovery of a plan to assassinate Alvaro Ramizzini, who had recently emerged as a spokesperson for the case against mining, constitutes a return to the old "logic of terror", say some analysts. The same analysts argue that, while the demands of civil society continue to be fragmented, the private sector has a clear business agenda and appears to be behind many of the recent acts of repression. Some critics fear the social repercussions and accuse the government of abandoning any genuine development strategy.

Improved export figures no guarantee of economic development
Despite a poor exchange rate and continuing problems of insecurity, Guatemala's exports, headed by non-traditional products, have continued to steadily increase in the last five years. Although more than half of the country's exports go to the US, which remains Guatemala's main trading partner, Central America is slowly becoming a more significant export market for Guatemala. The government has expressed its satisfaction with the latest export figures, but is seeking to improve them via a program called "Guate Competes". The program includes the creation of the controversial Department for the Administration of Free Trade Agreements.

HONDURAS

Maras: repression without prevention
The Honduran Congress has agreed to implement much tougher penalties for youth gang members, among them higher fines. Congressmen also approved a sum of 20 million lempiras (US$1 million) for the construction of a maximum security jail away from the urban centers. At the same time, the Ministry for Security, launched a plan to tackle crime which it baptized "jaula" (cage). The new policies clearly show that Maduro has entered his last year as president with only one tactic to confront Honduras' endemic criminality: repression.

REGION

WSF sets 2005 plan
In the last week of January, on opposite sides of the Atlantic and discussing similar themes from very contrasting points of view, the World Social Forum (WSF) and World Economic Forum (WEF) held their annual meetings. The WSF, under the banner of "another world is possible", returned to Porto Alegre, Brasil, to hold its fifth conference, while the WEF once again convened in Davos, Switzerland. During the Forum in Brazil a plan of action was laid down for 2005; meanwhile in Davos the business and poilitical elite focused on social themes such as world poverty. In both cases, critics cast doubt over the potential results.

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EL SALVADOR

Who guards the guards?
The General Prison Authority has revealed that, up to December 2004, there were at least 122 former police agents behind bars. The jailed officials cited greed, the ease of attaining fire-arms and drunkenness as the main reasons for breaking the law. Meanwhile, the Human Rights Ombudsman argues that the National Police's General Inspectorate lacks the necessary autonomy to carry out its role of investigating police crime. Although the Inspectorate insists that the cases involved are purely isolated, some analysts believe the problem is more structural.

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NICARAGUA

End of tax breaks for the media?
Reforms to the Constitution approved in early January 2005 could spell the end of tax exemption for the media, authorized by article 68 of the Magna Carta. Proposed by the National Assembly whose majority lies in the hands of the Liberal Constitutional Party (PLC) and the Sandistina National Liberation Front (FSLN) - deputies justify the reforms by arguing that media chiefs abuse the privilege for personal enrichment. However, media organizations condemn the measures, arguing that they are a reprisal for the media's revelations of corruption. If the reforms are approved by the Assembly in the second session, the cost of newspapers could significantly increase effectively limiting public access to more diverse information.

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11 february 2005