One month ago four lawyers from the Attorney General's office began a hunger strike outside Congress, calling attention to the country's culture of impunity and corruption. They have demanded that some of the nation's most high-profile corruption cases be re-opened and insisted that the Attorney General step down. They have attracted support from civil society, the Minister of Education – even President Manuel Zelaya. But according to some analysts, Zelaya's stance is not motivated by an anti-corruption fervor but by self-interest. Some of his closest allies have fallen under suspicion, and ridding the government of the Attorney General could help him and his party. Nevertheless, it is clear that the hunger strike has brought together a wide-range of actors who believe it is time to stamp out corruption once and for all.

On May 6, the drivers of heavy commercial vehicles pushed a national transportation strike, intending to pressure municipal authorities into allowing them to drive into Guatemala City during the early morning rush hour. The move soon led to panic as people feared that gas stations would run out of fuel. That afternoon many stations became packed with people and, indeed, ran out. After a brief attempt at negotiating with the drivers, the government quickly declared a State of Prevention, thereby suspending certain constitutional rights. The decree guarantees free passage on roadways and should normalize the distribution of fuel. The order, carried out by the National Civil Police (PNC) and the armed forces, has already resulted in dozens of arrests. Meanwhile, the ongoing conflict between local authorities and the drivers that led to the stoppage in the first place persists.

By Crosby Girón

Translated by Matthew Brooke

An alternative system to measure poverty and extreme poverty in Nicaragua has made it difficult to gauge the extent of the problem. Whereas in 2001 the number of people in the country considered to be extremely poor was estimated to be 26% and in 2005 just over 17%, the most recent statistics, calculated using the Index of Unsatisfied Needs (NBI) methodology, suggest that up to 36% of Nicaraguans are living below the poverty line. This is significant because poverty indicators influence decision-making by donor countries who are currently negotiating with Nicaragua the parameters that will be used to evaluate the impact of the more than US$500million plus of aid that the country receives every year. It is unclear whether the change in methodology was made in response to an appeal by the International Monetary Fund (IMF) or was proposed by the government of its own volition in order to show that poverty in Nicaragua is greater than was previously thought. Whatever the motive, the new figures have renewed interest in ascertaining which is the most accurate method to evaluate a condition as multi-faceted as poverty and extreme poverty.

After years of financial mismanagement under the PUP administration, Belize is still suffering from the fall out of heavy debts incurred in recent years. From 2000 to 2005 the country's debt increased dramatically, from 11% of its GDP in 2000 to 98% in 2005. The PUP government needed to import many goods in order to carry out a series of ambitious reconstruction projects, which ideally would have been paid for with the proceeds of exports. However, owing to a deficit in the country's balance of payments, the government was forced to dip into its reserves. The government's woes began when it used up its reserves and creditors were unwilling to lend them money. The PUP tried to carry itself through the bad patch with 'quick fixes', but the repercussions of its inefficient debt management continue, landing the new UDP administration with the challenge of reducing its debt burden and increasing its foreign exchange reserves.

By Kelley Knox

Each year the Costa Rican government issues a report detailing the progress made on key policy issues as well as the challenges expected for the coming year. This year, the Arias administration has few achievements to celebrate and foresees difficult times ahead as a result of soaring fuel and food prices on the world market. In order to counter spiraling inflation and commodity prices, President Arias proposed four key points of action. However, Arias has come under fire as his proposals are vague and lacking in substance. Ironically, Arias is now advocating a tax hike despite the fact that he has been a strong advocate of CAFTA, and under the treaty state revenue will inevitable drop as tariff barriers are phased out. The president has also demanded a US$28 million budget to improve citizen security.

By Javier Córdoba

Translated by Louisa Reynolds