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

GUATEMALA

Government seeks to impose Land Registry Law

The Executive has withdrawn its support for the Land Registry Law proposal negotiated with campesino, business and other sectors. Following its passage to the second reading in Congress, deputies of the ruling Grand National Alliance (GANA) were successful in getting the Land Registry Commission to agree to modify the initiative. The Executive has less than two months to change the article regarding the autonomy of the Land Registry Institution. Civil society fears that this manoeuvre will benefit the business sector as regards surplus land which can be purchased for the symbolic price of Q1 per hectare, as requested by the Chamber of Agriculture during the negotiations.

Economic environment favors big business

Results from the first business survey of 2005, published by the Investigation and Social Studies Association (ASIES), suggest there is a growing gap between the perceptions of big businesses and those of small and medium size. While large enterprises express confidence and optimism regarding globalization, smaller companies remain skeptical about any future scenarios. According to some analysts, this difference is mainly due to the numerous advantages that large enterprises possess in terms of multi-national alliances, access to cheap capital, market controls and vertical integration in their respective industries.

 

COSTA RICA

PLN and PUSC in pacts scandals

According to the Constitution of the Republic, responsibility for appointing key government officials lies with the Legislative Assembly. However, in recent weeks, various scandals have come to light, surrounding both the Ombudsman candidate and the election of Comptroller General whose ex-director, Alex Solis was elected and dismissed by Congress in the second semester of 2004. Some experts consider this the result of pacts between deputies of the two majority parties, the National Liberation Party (PLN) and the Christian Social Unity Party (PUSC). Other analysts also argue that this practice strengthens neoliberal principles in institutions whose purpose is precisely to defend the rights of citizens and State property.

PANAMA

Panama keeps its faith in oil

The Panamanian president recently presented a series of strategies to the Legislative Assembly that sheds light on new elements of his announced energy policy. This policy continues focusing on oil as the principal source of energy in a country which, as a non-oil producer, should be shifting towards alternative energy sources.

CAFTA protection ineffective and flimsy

A complaint was made to CAR that a large amount of Honduran contraband coffee is crossing the border into Chiquimula, with police consent. This revelation, as well as other accounts of food smuggling, has cast further doubts over Central America's ability to protect its sensitive products in the case that the Central America Free Trade Agreement (DR-CAFTA) is implemented. Built into the CAFTA text are a series of intricate mechanisms including gradual lifting of import duties and quotas which are supposed to protect sensitive products for the isthmus economies. Nevertheless, porous borders and opportunities for triangulation, encouraged by incoherent government policies, could undermine the already inadequate CAFTA protection.

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29 April 2005