GUATEMALA
Election authority´s 2005 budget increases as voter registration drops
Currently, the number of registered voters in Guatemala is declining, as voting authorities in charge of registration fail to keep up with the number of deaths. Less than half the number of Guatemalans who receive their legal identification cards when they turn 18 years of age bother to register for voting. In the first half of 2005, the total number of registered voters dropped from 5.134 million people to 5.117 million, while the budget for the Supreme Electoral Tribunal (TSE as abbreviated in Spanish) has increased from US$7.2 million in 2004, to US$9.3 million in 2005. An official for the TSE refused to share budget information with CAR, stating that the budget was an "internal" matter. However, according to a CAR estimate, more than 40% of this US$9.3 million budget is for financing the 22 departmental delegations and 309 municipal sub-delegates whose primary duties are to register voters. Even so, according to official figures, in many municipalities the sub-delegates are not bothering to register voters. In Almolonga, Quezaltenango, for example, the town government issued 187 new citizen IDs during the first half of 2005, while the TSE Registrar in town only signed up three voters, costing tax payers almost US$2,000 for each new voter. A TSE magistrate blamed low voter registration on public disillusionment with politics and budget constraints. However, some analysts consider that the State´s lack of interest in promoting participation is part of a "low-intensity" democracy, in which voting legitimizes the political system without transforming an economic system that historically has excluded most of the population from decision making.

REGION
Interview with Vince McElhinny, expert on multilateral banks
During a visit to Guatemala in August, Vince McElhinny, an expert on multilateral banks, shared his insights on the issue with CAR _ focussing specifically on the Inter-American Development Bank (IADB). Currently an independent consultant working with organizations in the region, McElhinny previously worked for InterAction, a coalition of US NGOs, and was in charge of monitoring the IADB. What follows is a translated summary of the discussion (conducted in Spanish).

PANAMA
Torrijos renews links with Cuba
During the first year of the Torrijos administration, Panama has intensified and weakened links with distinct hemispheric blocks. Examples include closer alignment with Brazil, Argentina and most recently Cuba and Venezuela. Meanwhile less emphasis has been placed on issues such as the Free Trade Agreement of the Americas (FTAA), which under the previous government had attracted much attention. Torrijos´ recent surprise meeting with Castro and Chávez has met with negative reactions from the business class in Panama.

REGION
CABEI: gaining ground in the region
The Central American Bank for Economic Integration (CABEI) was founded in 1960 to promote economic integration and development of the isthmus countries. However, the objectives have changed, in line with international tendencies and financial interests while the Bank is steadily intensifying its presence in the region.

COSTA RICA
IADB admits projects had limited impact
While Costa Rica borrows more money than any other country in the region from the Inter-American Development Bank (IADB), a report by the Bank's Office of Evaluation and Oversight (OVE) and an evaluation by the Friedrich Ebert Foundation expose the limited impact of development projects in the country. Meanwhile failure to use the loans has resulted in an increase in payments.

COSTA RICA
Economy grows but so does inequality and poverty
Despite the fact that salaries have not sufficiently increased, that complaints regarding the meager growth in wages are becoming more prevalent and that the price of basic necessities is rising, statistics show the Costa Rican economy to be growing at a rate of 4.2% annually. The figures also show that poverty levels remain stable, with little over 20% of the population living below the poverty line during the last decade. To explain the discrepancy between statistics and reality, Silvia Lara and Minor Mora, researchers from the Latin American Faculty of Social Sciences (FLACSO), claim that serious errors have been made in the way that poverty is calculated and dealt with. They have presented a report entitled "Poverty and the Options of Social Politics", as part of an initiative organized by the Costa Rican Technological Institute (ITCR).

EL SALVADOR
Economy fails to take off
The national economy is going through a period of unjustifiable stagnation, according to analysts, despite financial circumstances appearing favorable for investment: sufficient monetary resources, low interest rates and political stability. National production is showing no signs of significant renewal and both the industrial and construction sectors are on the decline. Statistics from July 2005 show that the volume of industrial production has dropped every month since May 2003, with the exception of one month, and activity in the construction sector fell by 21% over a period of 18 months. Meanwhile, family remittances continue to subsidize national consumption, promoting imports and discouraging exports.