Nicaragua News Service Published by the Nicaragua Network Volume 7, No. 42 October 17 - 23, 1999. By Xenia Barahona 1. New demands to release hostages in Bonanza 2. Ex-Combatants Take Over Coffee Farms 3. Plant Variety Protection Law approved 4. Lack of government support a year after Mitch 5. Little improvement in nutritional situation 6. Unemployment levels drop 7. National Budget with a US$ 236 million deficit 8. 110 Families evacuated due to rise of Lake Managua 9. Central American Presidents Sign Free Trade Treaty with Chile ___________________________________________________________________ 1. New demands to release hostages in Bonanza After twenty-two days, the armed group of former members of the Andres Castro United Front (FUAC) presented new demands for the release of Orlando Rocha, a Nicaraguan army soldier, and Manley Guarducci, a Canadian engineer at the gold mine of Bonanza. The new demands are the following: 1) The release from prison of seven former members of their armed group. 2) An end of the military repression in the rural areas by the Army and the Police. 3) The creation of a committee to verify the fulfillment of the agreements signed between the armed group (FUAC) and the government in 1997. 4) The permanency of the Canadian mine company in Bonanza and an increase in the salaries of the workers. 5) Respect for the integrity of the North Atlantic Autonomous Region by the municipalities. The demands were very similar to those made initially, with the exception of a reward of one million dollars. The contact person, Camilo Turcios, a former head of the armed group FUAC who disarmed after the 1997 agreement, also brought back letters and a recording of the two hostages to prove that they are both alive and well. The government, through Minister of Defense Jose Antonio Alvarado, stated that it is optimistic about the situation since the armed group dropped the request for a monetary reward. Nevertheless, the government still holds its initial position of only negotiating after the hostages are released. He also made clear that "some demands are out of reach of the government" and that he "hoped the hostages are released safe and sound soon" concluded Alvarado. The Canadian government and the mine company also expressed the hope that the situation will have a satisfactory outcome and the hostages will be free soon. (La Tribuna Oct. 18 - 22, El Nuevo Diario Oct. 18-22, La Prensa Oct. 20) 2. Ex-Combatants Take Over Coffee Farms In Jinotega Department, 100 miles north of Managua, some 6,500 former members of the Contras and of the Nicaraguan army occupied 15 coffee farms. Led by "El Licenciado" (military usage, "The Veteran"), they're yet another group of former-combatants claiming they laid down their arms in good faith in return for promises by the government which have not been kept. El Licenciado said the government signed accords with his followers as long ago as December 1998, promising them land and houses. "The only thing we're asking," he said, "is that the government keep its word." El Licenciado was a captain in the army, which has been drastically reduced in size, throwing many members into unemployment. He said his men were not heavily armed, but that "blood could run here" since they knew where to find AK-47s if necessary. He gave the government one week to resolve the situation satisfactorily. "Unless this happens," he insisted, "we'll dig up the roads to disrupt the extraction of coffee." Buenaventura Gutierrez, vice-president of the Nicaraguan Union of Coffee Producers (UNICAFE), directly affected herself by the takeover of three of her farms, said the situation was extremely worrying, since over 3 million pounds of coffee could be lost. Javier Carrion Suarez, police second-in-command in Jinotega, claimed that he had sufficient personnel to drive the occupiers from some of the farms, but not enough for them all. He said that El Licenciado's men had threatened to occupy more farms if the government refused to negotiate, emphasizing that this could easily lead to armed conflict, since the producers whose plantations would be at risk had ordered their guards to fire on invaders. Union of Ranchers and Farmers (UNAG) spokesperson Alvaro Fiallos agreed with the potential 3 million-pound loss in the coffee harvest. He emphasized that other ways to solve these disputes must be found, otherwise the "whole economy will be destabilized." Latest reports are that the ex-combatants have withdrawn without violence, in expectation of a positive government response to their demands. (La Prensa, October 21-24). 3. Plant Variety Protection Law approved After much discussion in the National Assembly between the pro government deputies of the PLC and deputies of the minority FSLN, the Law for the Protection of Plant Varieties was approved with 48 votes in favor, 14 against and 3 abstentions. The proponents of the polemic law argue that it is aimed at protecting individuals and scientists who develop or discover new seed varieties by giving them copyrights. Environmental organizations and Sandinista representatives argued against the law since it will allow the introduction of genetically-engineered seed into the country, causing hazards to biodiversity and the health of the population in the future. Nathan Sevilla, a Sandinista representative, said that genetically engineered products include genes of non-vegetable species and affect the environment. "We cannot accept and protect developers of these kinds of products, while forgetting to protect our environment," said Sevilla. Some deputies proposed to investigate further the impact of the use of genetically engineered seeds in agriculture, especially on staple foods since the first seeds to be introduced and used are corn, rice, soy, all products consumed by the majority of the population. Representatives in favor of the law argued that food production in the country was going to increase, bringing progress to the nation. Luis Osorio, president of the governmental Nicaraguan Institute for Agricultural Technology (INTA), supported the law since it deemed it essential to stimulate research in the agricultural arena and explained that all types of seeds used in the country have to go through technical examination to test their quality and ensure their safety. He added that almost all developing countries have laws similar to the one just approved and gave examples of countries which already use genetically engineered seeds in agriculture, such as the United States where 40% of the production of corn, cotton, and other agriculture products are produced with genetically engineered seeds. (El Nuevo Diario, Oct. 20, La Tribuna, Oct. 20.) 4. Lack of government support a year after Mitch A survey done by CIET International for the Civil Coordinating Body for Emergency and Reconstruction (CCER) among families affected by Hurricane Mitch revealed that they feel their situation has not improved or has gotten worse. The survey was done in eight departments of the country (Chinandega, Jinotega, León, Matagalpa, Managua, Estelí, Nueva Segovia and Waspam) in 6,200 homes, including communities most affected by Mitch. The survey showed that a year after the disaster, 16% of the families live from donations, 23% live from whatever they can find and 61% have some kind of stable income. A high percentage (71%) of the participants perceived their situation as being the same or worse than a year ago. Only 29% felt were better off than before the natural disaster, thanks to the support of international organizations, non-government organizations (NGOs), religious groups and the Red Cross, but not by government actions. The study showed little support from the government in the construction of houses. For the construction or reconstruction of their homes, 71% of the interviewed received help from a NGO, 9% from religious groups, 9% from the central government, 8% from the municipality and 3% from the Red Cross. Apparently, aid has also been lacking for agricultural activities because one of every four families that lived from agricultural activity has not been able to plant their crops. Ana Quiroz, head of the Civil Coordinating Body for Emergency and Reconstruction (CCER) criticized the role of the government. "The government response is inadequate. What is needed is a comprehensive development plan for the affected communities," she said. According to the results, only 17% of the homes reported that some kind of preparedness activity is being done in their communities to face a new natural disaster, meaning more damage and lives could be lost in the future. (La Tribuna Oct. 22, El Nuevo Diario Oct. 23, Channel 2 TV Noticias Oct. 22) 5. Little improvement in nutritional situation In the closing ceremony of the World Food Day on Saturday, the representative of the Food and Agriculture Organization (FAO) in Nicaragua, Jean Francois Ghyoot, revealed that there has not been much progress in poverty alleviation and the nutritional conditions in Nicaragua during the last few years. He said that after Haiti, Nicaragua has the lowest calorie intake per day in Latin America. When the recommended average is around 1,700 calories per day, there are people that consume less than 1,000 calories per day. According to official statistics, 27 of every 100 children under five years old are undernourished. In some rural areas in the northern and western parts of the country, up to 40% are undernourished. Ghyoot clarified that although poor nutrition and chronic malnutrition is not always linked with poverty; it limits access to food and favors food insecurity. In Nicaragua around 70 % of the population lives in poverty and, therefore, are at risk of suffering food insecurity. The representative of FAO admitted that the present situation is partly due to the natural disasters that have affected the country. One way to improve the nutritional situation is for families to diversify their food. But to change the nutrition habits of the population, the government needs to invest in education campaigns. He recognized that the National Nutrition Program of the government is on the right path but that it needs to intensify its implementation. On a related topic, the Ministry of Health announced the Second National Survey of Micronutrients 1999 - 2000 will be carried out in January and March of next year. The sample of 5,080 people will include women in reproductive age as well as children from six months to twelve years of age. The survey, which costs US$ 243,000, will be conducted and funded by the Ministry of Health, UNICEF, USAID, the Pan American Health Organization (PAHO) and the Central American Nutrition Institute. Vitamin A, Iron and Iodine will be measured to determine the nutritional status of the population. (El Nuevo Diario Oct. 18, La Prensa Oct. 23) 6. Unemployment levels drop Some 37% Nicaraguans are underemployed, 11.04% are unemployed and 51.9% are employed. These were some of the findings of a survey carried out by the Institute for Nicaraguan Studies (IEN) between September 5 - 12, 1999, in 1,250 rural and urban homes. The results are similar to the ones found by the Ministry of Labor in April this year among 3,500 homes in six departments of the country. According to the Tenth Survey of Employment, 55.2% of the population was found to be employed, 35.5% underemployed and 9.3% was unemployed. The figures of both surveys are better than the ones of 1998 when 48% of the population was employed. Mario Montenegro, Minister of Labor, affirmed that the decrease in unemployment is due to the boom in the construction and tourism business in the last few years. "The building of new hotels and restaurants in the tourist industry, and the reconstruction of roads, houses and bridges destroyed by hurricane Mitch have opened many jobs for the nation," he explained. Independent economist, Carlos Benavente, argues that the construction of houses for the homeless, roads, and food for work programs that are being implemented by many institutions, only create temporary jobs. "To really change the unemployment situation, permanent jobs must be created in the productive sectors," concluded Benavente. (La Tribuna Oct. 21, La Prensa Oct. 22) 7. National Budget with a US$ 236 million deficit The National Budget proposal for the Ministry of Public Finance presented the year 2000 to the National Assembly to be discussed and approved before the end of this year. The budget proposal expects incomes of around US$ 590 million, and expenditures of US$ 821.5 million, resulting in a deficit of around US$ 236 million. Donations and loans from foreign and national institutions will cover this deficit. Around $US 125 million of the budget is destined to pay the internal and external debt. Esteban Duquestrada, Minister of Public Finance, stated that as long as Nicaragua is not officially included in the initiative of Highly Indebted Poor Countries (HIPC), it will have to pay interest due on the foreign debt. The Ministry of Health, Ministry of Education, Culture and Sports, and the Ministry of Transportation and Infrastructure received the largest apportions. There is going to be a substantial increase in the financial allotment to the Ministry of the Presidency and the National Assembly. While the Office of the Comptroller, in charge of overseeing the efficient and transparent management of state resources, will only receive an increase of US $20,000, the Ministry of the Presidency and the National Assembly will have an increase of US $23 million and US $ 2 million respectively. (El Nuevo Diario 18/10/99, La Tribuna 21/10/99). 8. 110 Families evacuated due to rise of Lake Managua Due to the heavy rains of last week, Lake Xolotlán (known as Lake Managua) continued to rise affecting many families living around it. On Wednesday, about 110 families were evacuated by boat and an army helicopter from the community of Cuatro Palos, near La Paz Centro in the department of Leon. During the last eight days, the rivers Pochote, Papalón and Cinecapa and Lake Managua flooded and isolated the community. With the help of the Red Cross, Civil Defense and the army, 675 people were evacuated to the school of the community of El Paponal, which was used as a shelter. The Regional Civil Defense Authorities aided the community with supplies, black plastic, hammocks and filters to purify water. In addition, the Ministry of Health provided a medical team to assist the people in the shelters and fumigate the area to prevent any outbreak. The affected community is already organizing itself with the collaboration of the mayor's office and Protestant leaders to look for land for their relocation since the lake completely destroyed their houses. They hope to receive immediate support to start building their new homes. (El Nuevo Diario Oct. 21, La Prensa Oct. 21, Channel 2 TV Noticias Oct. 22). 9. Central American Presidents Sign Free Trade Treaty with Chile On Monday 18, the presidents of the Central American countries and the president of Chile, Eduardo Frei, signed in Guatemala a framework agreement for a Free Trade Treaty. The Treaty will establish a potential market for 46 million people, fostering commercial trade in addition to cultural and educational exchange between the countries. The presidents of Costa Rica, Chile, El Salvador, Honduras and Nicaragua signed the agreement after 18 months of negotiations. Qualified by the signatories as "a new generation treaty," the agreement allows each Central American country to individually negotiate with Chile export products and tariffs. "Globalization is a challenge, but Central America and Latin America will face it with treaties like the one just signed," said Carlos Flores, president of Honduras. President Frei called upon other small countries to unite forces to eliminate poverty and isolation in a globalized economy. He added that Chile and the Central Americans countries hope to conclude the negotiations of the products by January 2000. Nicaragua and Costa Rica are further along in the negotiations. Last year's trade between Chile and Central America reached US$108.9 million, with a surplus of US$34 million for the South American country. During the last five years there has been a 74% increase in trade. While Chile exports to Central America copper, ships, tomato juice and processed fruits, Central America is interested in exporting sugar, flour and meat (El Nuevo Diario, Oct. 19).