Hunger and desolation reign three weeks after Hurricane Felix struck the largely poor and indigenous Northern Atlantic Autonomous Region (RAAN). According to the most recent accounts, the hurricane killed 300 people and left 200,000 more in need of food and shelter. But it is unclear where funds for recuperation, or even short term relief, will come from. The UN and RAAN authorities estimate that rehabilitating the region will cost around US$300 million, but the federal government's budget is too small to cover this – and, to date, only US$6 million dollars of international aid has arrived. Furthermore, at a recent speech before the UN General Assembly, Sandinista President Daniel Ortega scarcely mentioned the hurricanes' victims at all. Meanwhile, the US government has stepped in with $ US 7 million in loans, assuring that RAAN's best bet lies with the private sector.

Second Vice-President Kevin Casas recently resigned two weeks after it was revealed that he recommended using dirty tricks to ensure that CAFTA is passed in the October 7 referendum. The center-piece of his proposal, which was directed to President Óscar Arias, was that the government unleash a “campaign of fear” to scare the “simplest people” into voting for CAFTA. The public was appalled and CAFTA itself might bear the brunt. Analysts were only recently declaring the treaty's certain victory, but now, according to polls, many Costa Ricans are rethinking their vote. And only a week before the referendum, the anti-CAFTA swing will likely continue: another campaign of dirty tricks orchestrated by the treaty's advocates has come to light.

By Javier Córdoba

Translated by Matthew Brooke

The Panama Canal 's expansion is considered one of the most important projects in the nation's history. On September 3, hundreds turned out for the inauguration of this historic undertaking - which, at a supposed cost of US$5.25 billion, will build two new locks, on both the Pacific and Atlantic sides, and will allow the ocean's largest ships to navigate the Canal. However, many have voiced concern over rising costs and the environmental consequences of the construction. Objections regarding the process by which contracts were awarded have also been raised. Though the benefits are potentially huge, many wonder how the wealth generated by the canal expansion will be shared.

Three years after being informed that lead contamination from a battery factory was poisoning nearby residents, the state has finally intervened. On Monday, September 24, the Ministry of Health closed the Record battery factory in the municipality of San Juan Opico , on the grounds that it was continuing to breach environmental standards. The company had been officially banned from operating by the Health Ministry since 2004, but its failure to act after being given a three month “final warning” in June this year appears to have been the final straw. Management of the company is protesting the closure, asserting that the government has not followed due process – the Environment Ministry had given the company until December to clean up its act. Meanwhile, environmental groups and the Human Rights Ombudsman are debating whether to take Record – whose slogan is Dura de Matar, or Die Hard – to the International Court of Human Rights.

By MIrian Abarca

Translated by James Smith

The National Institute of Statistics' Survey on Living Standards (ENCOVI) is one of the country's most important indicators in terms of economic development and social welfare. However, the hype surrounding the general elections overshadowed the publication of the most recent survey. For the government, it was a good time to bury bad news as statistics show that little progress has been made in terms of reducing poverty and inequality. Today, 51% of Guatemalans live below the poverty line and disparities between urban and rural areas continue to grow. The number of people living below the poverty line has decreased slightly over the past seven years but according to analysts this has more to do with overall economic growth than with effective government policies to improve living standards for the overall population.