The neo-liberal model, after the war

29/05/2003
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In an interview with ALAI, Jacinto Suárez Espinosa, Nicaraguan representative of the Central American Parliament and member of the National Sandinista Council (CSN), reflected on the widespread economic crisis, unemployment and growing poverty in Central America. Suárez declared that this degradation is the result of the devastation of the war, foreign debt, corruption and the application of models of neo-liberal adjustments: implemented, precisely, during the final stage in the process of pacification and establishment of electoral institutions. Other elements in the current crisis are the Plan Puebla Panama (PPP), the Free Trade Area of the Americas (FTAA) and the Free Trade Agreements (FTA), which are emerging as key issues that the region must confront. This is the context of the interview which we now present. - What can you tell us about the progress in the negotiations surrounding the PPP, the FTAA and the FTA in Central America? Despite the existence of a Central American committee for the negotiations surrounding the FTA, the United States has encountered a divided Central America. In the first stage of the PPP the US will facilitate investment in order primarily to create infrastructure, as well as electronic communication systems and highways that will cover the Middle American biological corridor starting in the south of Mexico and ending in Panama. However, nobody is answering the questions regarding the subsequent economic plan. In spite of the fact that the implementation of the FTAA in Latin America has been established for 2005, negotiations in Central America regarding the FTAA concluded in 2003. In the same way, the inauguration of the agreements of the FTA, Central America – US, have been defined for 2004. Bush wants to conclude the negotiations regarding the FTAA, as the political conditions are optimum for signing the agreements. The Central American governments are uniformly pro-US and in spite of widespread impoverishment there is no opposition to impede the total implementation of the FTAA. In South America, the US is stumbling upon obstacles in the form of Colombia, Venezuela, Brazil and Argentina. - In this context, which sectors are in the official negotiating committee regarding the FTAA and the FTA? Representatives from private firms and the government. Almost all of the Central American oligarchies are producers of sugar cane and rum. Consequently an agreement has been reached to protect sugar and rum. Each country has different interests: they are hoping to save the products of those power groups that govern Central America; those are the ones who are in the negotiating committee. - There are, however, sectors in society that are forming resistance. How is this resistance organized? Nicaragua and other countries have successfully implemented a mechanism called "the room next door" in the negotiations regarding the FTA. This space allows for the representation of social organizations and trade unions, with neither a voice nor vote, in the official negotiating committee. Nevertheless, these sectors are gathering information and feeding public opinion, which has allowed them to head initiatives in various matters, such as the agrarian issue. As regards the PPP and the FTA, a broad cross-section of civil society and social organizations has expressed their opinions. In Nicaragua, pressure is being applied through the national parliament. We have prepared bills which we will introduce to Congress and "the room next door". Moreover, producers who are far from positions of left- ideology are also raising the alarm. Once the people start to listen and understand, there will be other reactions to this matter. - What are points of disagreement between the Central American countries? Each country has its own interests. Guatemala broke the agreement due to internal conflict, since it has been condemned because of a series of human rights violations. Under the pretext of improving their international image and attracting investment, this country made proposals outside the Central American agreement, deregulating 90% of its customs charges on US agricultural products; while Nicaragua's proposal does not exceed 40%. As regards Honduras and El Salvador, neither country has an interest in agricultural matters. This is a serious problem for Nicaragua, as the US can introduce its products at rock-bottom prices and bankrupt us. Small producers who have until now survived would be fated to disappear. - In your opinion, is there a possible way of benefiting from current differences between the European Union and the US? The European Union has planned to open an FTA with Latin America. There is one substantial difference between Europe and the US. The US is a large producer of farming surplus, while Europe has a deficit in this area. Central America does not have the capacity to compete in terms of industrial products but it could consider free trade with Europe, to introduce agricultural produce and receive industrial products from that part of the world. Of course, the US has subsidies protecting it from European agricultural production and the Europeans too have subsidies that protect them from US agricultural production. As for ourselves, what will save us? The US plan is to swallow the markets and re-colonize Latin America, subjecting us to the FTA. What is the situation of left-wing forces in Central American? After the experience of the rebel insurgency in Central America the Unidad Revolucionaria Nacional Guatemalteca (URNG) emerged with 13% of the electoral vote. In the elections in El Salvador the FMLN gained the majority in the national parliament. Nicaragua needs the vote of the Frente Sandinista (FS) to pass laws. In Honduras there is a growing movement of democratic unification which has successfully ensured that the forces from the left coordinate around a united project with the strong support of social movements and campesinos. The people's movement in Central America is far from falling to pieces: it is growing; it is getting stronger. (Translation by ALAI)
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