GUATEMALA
Military involvement in civil security on the increase

Although the 1996 Peace Accords declared internal security to be the jurisdiction of the National Police (PNC), the Guatemalan military has been increasingly tasked with maintaining public order. The military combats drug trafficking, gangs, and immigration, while it has been receiving more money from the United States with less oversight, a December report from the Washington Office on Latin America (WOLA) says. Beyond posing a risk to human rights, a military actively involved in police work could undermine law and order, as investigations have shown that that former top military officials allegedly head the nation´s drug cartels. Moreover, in past weeks the Guatemalan and Columbian governments have been negotiating a plan to create a ¨mini-Plan Colombia¨ here, which would likely result in the military staking an even greater claim in the fight against drug trafficking. This is despite the fact that ¨Plan Colombia¨ is widely reported to have been both ineffective and disastrous for human rights.

PANAMA
Metal prices revive interest in mining

Having attracted little attention in recent years, Panama´s mining industry _ small in profit terms but substantial in terms of environmental damage - is showing signs of revival. Encouraged by high international metal prices, mining consortiums are renewing their mining patents in Panama. Environmentalists and inhabitants of areas affected are uniting to oppose this activity.

REGION
Study reveals environmental negligence in all isthmus countries except Costa Rica

Air pollution, availability of water and deforestation are the most important environmental issues in Central America, according to a Yale University study. The report, the Environmental Performance Index, ranks 131 countries' environmental practices from best to worst, giving each country a score from 1 to 100. Central America's performance on the list is varied, from Costa Rica's ranking of 15th, to El Salvador, the worst in the region, ranked 73rd. The other countries in the region, except Belize, which was excluded from the study because of a lack of data, had the following rankings: Panama came in 37th, Honduras 52nd, Nicaragua 56th, and Guatemala 58th. Although each country shows important differences, the Yale report notes the region´s abundant natural water resources, albeit failing to address the lack of access and poor quality of the water. The Achilles heel is air pollution, especially in Guatemala and Honduras, while deforestation also remains a concern, particularly in El Salvador. According to Executive Secretary of the Central American Commission on the Environment and Development (CCAD) Dr. Marco González, these environmental dangers result from "unsustainable production and consumption". However, despite these threats the region's governments, except Costa Rica's, do not enforce the few existing environmental laws, and some, such as El Salvador's, have even cut their environmental budgets up to 42%.

EL SALVADOR
Debt management: conflicting messages

The Public Municipal Debt law (Decree 930) was recently approved and for some months there has been a push to reform the Municipal Tax Law, now awaiting publication in the Official Gazette. These measures aim to improve debt control and tax collection at a municipal level. However analysts perceive contradictions in central government´s readiness to improve fiscal management; on the one hand regulating municipal debt and granting powers to improve tax collection while at the same time approving a budget that will result in new debts to pay off the old. Concerns also exist that the government will opt to raise tax collection by increasing sales tax to 16% while continuing to turn a blind eye to large scale tax evasion by the economically powerful sectors, linked to the ruling party.

HONDURAS
Zelaya with little room to maneuver

With the electoral victory of Manual Zelaya Rosales and the Liberal Party last November, many activists believed they were beginning to discern a small but important change. This optimism was based not only on campaign promises, but also in Zelaya´s general discourse over recent years. While proving a period where the country veered from one extreme to another, Zelaya´s platform generated sufficient popular support to elect him president. However, in these days of transition, negotiations, and appointments, it would seem that Zelaya is distancing himself from his previous positions. With less and less room to maneuver amidst powerful interests, and with opposition leaders (except the PINU) forging an alliance that aims to control Congress and limit the ability of the Liberal Party to govern, the mild euphoria is fading.

SPECIAL REPORT

Nicaraguan utilities Energy price hike to benefit Unión Fenosa

Late last year, the Nicaraguan Energy Institute (INE) announced its decision to authorize a 7% increase in electricity prices starting from 2006. Backed by the International Monetary Fund (IMF), the move benefits Spanish distribution company Unión Fenosa. While the INE claims the increase is necessary, given international oil prices, a recent investigation published by the National Consumer Defense Network (RNDC) suggests that the high tariffs result in part from the inefficiency and mismanagement of the transnational company itself, symptomatic of the failed privatization process.