The Congressional Commission for Energy and Mining recently submitted a new Gasoline Bill to Congress. Under the new legislation, all gasoline sold in Guatemala would include a 10% mandatory blending of ethanol. Those who advocate the approval of the bill point out that ethanol is cheaper and more environmentally friendly than fossil fuel. They also argue Guatemala ought to profit from the growing appetite for biofuel in the US and start exporting ethanol. With the cost of fossil fuel on the rise and an increasing demand for biofuel in the US, the Guatemalan agro industrial elite is seeking to tap into the highly lucrative ethanol market and is the driving force behind this initiative. The handful of families who control the sugar and African oil palm industries are thus eager to secure the approval of the new bill. However, critics have argued that the proposed legislation would increase land pressure in Northern region of the country where agribusiness has already displaced entire communities.

President Daniel Ortega officially installed the Citizen Power Councils (CPCs) on November 30 in a ceremony attended by thousands of government supporters. The event followed an intense ten day power struggle between the executive and judicial branches on the one side and the legislative branch on the other. On December 5, the struggle seemed to have been resolved when the Supreme Court of Justice upheld President Ortega's veto of a bill repealing the installation of the Councils. Ortega's controversial flagship project, the CPCs are promoted as neighborhood and community bodies intended to bring democratic decision making closer to the grassroots level. Many though, including some Sandinistas, have criticized the CPCs for being managed in a sectarian manner and – ironically, given the professed aim of the Councils – an undemocratic imposition from upon high.

By James Smith

President Zelaya's decision to import Venezuelan fuel has caused uproar among the business sector. With funds to subsidize fuel now dwindling and the looming specter of a fuel crisis ahead, the Zelaya administration has decided to import gasoline, diesel and bunker from state-owned Venezuelan oil company, Petrocaribe. Transport workers' unions and public transport users' associations have breathed a sigh of relief and are glad that the government has found a way of averting the impending fuel crisis. However, the business sector is up in arms and argues that the move is unwise as Petrocaribe is an unreliable supplier. The right is strongly anti-Chávez and blames the Venezuelan leader for the high price of oil on the world market. Now, the business elite fears that the oil deal will be used to secure support for Chávez's "Bolivarian Revolution" and that the Zelaya administration will veer towards socialism.

Just in time for the upcoming elections in 2009, a recently approved budgetary increase in public financing for political parties will give parties a 60% rise from the previous elections. However, political financing is subjected to constant criticism and debate in Panama and the move has proven highly controversial. Increased budgetary allocations for the public financing of political parties will reach US$ 32 million. Up to 40% of the funds will be made available to the parties in 2008. The remaining 60% will be granted between 2009 and 2014. Whereas some analysts believe that the increase in public funding for political parties will help to preserve democracy by sustaining more parties in the political arena, others have argued that it would be better to invest these funds in public works and strengthening legislation to limit private campaign contributions.

By Sharon Pringle

Translated by Dylan Ramshaw

Twelve of El Salvador 's thirteen banks have received hefty fines after it emerged that thousands of customers were ripped off with improper service charges. Customers were incensed when they discovered that they were unduly charged interest and service fee charges, fees for the payment of utility bills, and even fees for counting loose change among other irregular charges. The Consumers' Defence Bureau (DC) fined the banks accordingly but so far only Banco Agrícola has complied with the ruling. In the wake of this huge scandal, the FMLN is proposing an amendment to the Banking Law to protect consumers' rights.

By Mirian Abarca

Translated by Joshua Covey