Disaster aid likely to benefit
Nicaraguas wealthy
By GARY MacEOIN
Managua, Nicaragua
The following is the third of an occasional series on the
ongoing problems and the emerging hopes of Central America by Gary MacEoin, a
longtime observer of the region.
This city was destroyed by an
earthquake in 1972. Only two major buildings survived in the center of the
city, the Intercontinental Hotel and the Bank of America. Only the shell of the
cathedral remained.
Dictator Anastasio Somozas followers, self-exiled after the
Sandinistas came to power in 1979, returned when Violeta Barrios de Chamorro
became president in 1990, following the electoral defeat of the rebel party.
The new Managua they proceeded to construct reflects their priorities.
Nicaragua now faces another chance at a different kind of
rebuilding, thanks to the latest natural disaster, Hurricane Mitch. The central
question is whether new concern throughout the world and the accompanying new
development money will be spent in a way that will alleviate poverty or
increase the distance between rich and poor.
Sorting out the implications of decisions about rebuilding in the
coming months requires sorting through the dramatic turns of Nicaraguas
recent tumultuous past.
Modern stores and upscale boutiques today line newly constructed
avenues in downtown Managua. The Rubén Darío rotunda is dominated
by 45-foot-high advertisements for Coca Cola, Esso, Ron Flor de Caña and
Cerveza Victoria. McDonalds triumphs in the rotunda named for Gueguense,
the indigenous chief who fought the Spaniards. Dominos Pizza, whose
founder Thomas S. Monaghan gave $3.5 million to build the gaudy new cathedral,
is similarly heralded.
Soon additional monuments will adorn new plazas. Cardinal Miquel
Obando Bravo has announced that a statue of Pope John Paul, costing $150,000,
will grace the Plaza de la Fe Juan Pablo II. The plaza, bigger than any other
in Central America (27,000 square meters), will cost $4 million.
Paying the price
Later, a statue of Christ the King will mark the plaza named after
him. Its cost has not been specified, but presumably it will not be less than
that of the pope.
Inevitably, someone had to pay for the luxury. International
financial agencies were cooperative, but at a price, and that price was
structural adjustment: harsh cutbacks on health, education and
other public services. The official statistics of the Labor Ministry and the
Central Bank tell part of the story, an increase in unemployment and
sub-employment from 44.3 percent in 1990 to 53.5 percent in 1995.
A recent study by a prestigious international body tells an even
more dismal story. Between 1993 and 1998, the proportion of the population in
the major cities that does not earn enough to buy half the basic basket of food
rose from 40.8 percent to 63.5 percent. Some sources report a substantial drop
in the literacy level, which in 1980 was 66 percent of the population. No
figures were available showing exact literacy rates today.
However, hordes of children swarming around the traffic lights are
palpable evidence of the new Managua. They dash recklessly among the cars,
cleaning windshields, selling Chiclets, trinkets, flowers, simply begging a
coin. At night, 13-, 14-, 15-year-old girls, scantily clad and with painted
faces, work the streets. Sex tourism has reached Managua.
Hardly surprising in these circumstances, domestic violence has
become rampant. Since Mitch it is worse. On the International Day Against
Violence, Nov. 25, the Nicaragua Network of Women Against Violence deplored the
shocking increase of violence and sexual abuse against women and
children of both sexes since the hurricane.
Hurricane Mitch not only destroyed thousands of homes and
radically changed geography and ecology, with new streams, canyons, hills and
roads, but it also stirred international calls for a change of the conditions
that caused the hurricane to concentrate its devastation on those already most
disadvantaged. Four months later, one can visualize the outlines of the
response.
The government of President Arnoldo Alemán Lacayo hopes to
get vast new loans from the international financial agencies and spend the
money in ways that will benefit the already wealthy while doing very little for
those who suffered most. It has committed itself to strict observance of the
IMFs structural adjustment terms on which such loans are
conditioned. The result is destruction of local enterprises, lowering of wages
and of food production, cuts in public spending on health, education and other
social services, with a resultant increase of polarization of society.
Capital will flow to short-term deposits with high returns, at the
expense of productive investments. Environmental controls will be further
relaxed. And the deforestation, which in the past decade created conditions
that intensified the devastation of Mitch, will continue apace.
Fear that whatever money comes will be diverted to the politicians
is widely voiced in the press. It points to President Alemáns
recent acquisition of thousands of acres of land in areas that will benefit
from projected tourist projects.
Already since Mitch, the Nicaraguan Congress has voted increases
to itself while refusing to raise the minimum wage, which is 345 Cordobas, the
equivalent of $30. The salary increases, per month, that congress voted on are:
$1,000 a month additional to deputies, $2,000 to cabinet ministers, $3,000 to
Alemán. The increase will bring Alemáns salary to $7,000
per month, about 163 times that of the average primary school teacher, who is
paid 500 Cordobas or $43 per month.
Transparency International, a nongovernmental organization based
in Berlin and associated with Goettingen University, says that Nicaragua is
one of the most corrupt countries in Latin America.
The most obscure factor today is the role of the main opposition
party, the Sandinistas, still headed by Daniel Ortega. So far, its protests are
muted. Many are talking about a pact between Ortega and Alemán. In 1980,
after they had lost the elections, the Sandinistas voted what is referred to
here as a piñata (a gift to themselves) in the form of substantial real
estate to the top leaders. A pact, the rumor goes, would ensure that
Alemán would drop the efforts still underway to reverse the
piñata.
It could also end the proposal before the legislature to lift the
immunity Ortega enjoys as a deputy so as to allow his stepdaughter Zoilamerica
Narvaez, 30, to pursue her charges that he molested her sexually. In a recent
public opinion poll, 44.3 percent favored and 30.3 percent opposed lifting
immunity.
Two priests resign
The Sandinista leadership has also been hurt by the resignation
from the party of two of the three priests who were members of the National
Directorate, Jesuit Fernando Cardenal, minister of education, and his brother
Ernesto, minister of culture. A small group, Fernando Cardenal said in his
public statement, appropriated property of the state and of the party.
These corrupt acts broke the tradition of Sandinista honesty and
constituted the greatest damage in all its history to the Frente Sandinista.
... I end my political activity, but I shall continue faithful, for whatever
time life grants me, to my original commitment: the cause of the
poor.
The third priest, Maryknoller Miguel DEscoto, continues to
back Ortega. When he heard that I was in Managua, he sent a message saying he
wanted to see me. I visited him one Sunday morning in his gracious home on the
outskirts of the city, a home -- he volunteered -- that belonged to his mother
and that he can maintain thanks to the beneficence of a wealthy friend in
London.
For more than an hour he briefed me on what he is now doing.
Ortega, he said, has entrusted him with the task of reinventing the
Sandinista Party. He waxed eloquent about two books that have guided him:
Yehaskel Drovs The Capacity to Govern, published by the Club of
Rome, and Richard Waldens Action U.S.A. He has put together a
small think tank composed of the best brains in the country, and they are
starting from scratch to build something totally new. The project will take
time, he said. I was unable to elicit any clear description of what it will
look like.
According to several with whom I spoke and also to Envio, a
monthly produced by the Jesuit University, a large part of the Sandinista rank
and file is unhappy with the leadership. Even the leaders dont all agree
with the apparent support of Alemáns reconstruction policy.
Urged to use vacant land
Rita Retes, a Sandinista deputy, told me that she and many of her
colleagues are urging the victims of Mitch to take the law into their own hands
and squat on vacant lands (invade, they call it) in protest against
the governments failure to relocate them. In fact there have been several
such invasions since Mitch, and so far the authorities have not moved to
dispossess the new squatters.
Cardinal Obando has given no indication of unhappiness with the
Alemán project. On his way home from Rome after he received the red hat
in 1985, he showed his loyalties by stopping in Miami to bless the contra
leaders.
His attitude since has never wavered, an attitude that has the
approval of nearly all the diocesan clergy who constitute about half of all
priests in Nicaragua, though not of the overwhelming majority of the men and
women religious.
Just days before the 1996 elections, when the legal ban on
electioneering (a period before the election during which advertisements by the
parties were prohibited) was already in effect, he took an action that many
believe decided the outcome of a contest then too close to call. He chose
candidate Alemán and his wife to lead the procession at the solemn Mass
in the cathedral, put them in a prominent position and blessed them. The
ceremony and quotations from his homily, understood by all as calling for
Alemáns election, were broadcast repeatedly by the
government-controlled TV stations the day before the voting.
Caritas of Nicaragua, the official Catholic aid agency, is the
only major nongovernmental organization (NGO) that has stood aloof from the NGO
Coordinating Committee, the one body that has enunciated a clear alternative
for the rebuilding of Nicaragua. The committee insists it does not want to
rebuild the old Nicaragua.
We want another model of development, one that will be
sustainable and human, that will make it possible to eliminate both the extreme
poverty and the extreme wealth, a model that will gradually get rid of the deep
inequalities in the having, the knowing and the power of Nicaraguans.
Is this dream realizable? The international NGO community, both
church-related and secular, certainly approves it, and that community can
provide substantial resources. But the international financial institutions
must provide far more. Even if their only concern is to make money, they are
political animals. A massive arousal of world opinion could pressure them into
doing the right thing and ensure that Hurricane Mitch was not only a scourge
but also a blessing for Nicaragua.
Transparency International's Web site:
http://www.transparency.de/index.html
National Catholic Reporter, March 26,
1999
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