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In English & News & economy NicaNews on 20 Abr 2007

ANALYSIS: Close scrutiny after President Ortega’s first 100 days

By Franz Smets Apr 20, 2007, 1:51 GMT

Managua - Former guerrilla leader Daniel Ortega celebrates his first 100 days as Nicaraguan head of state Friday, after the same voters who once ousted his movement returned the former president to power.Ortega, 61, governed the Central American country from 1979-90 after the Sandinista Revolution. His first, stormy rule was marked by a civil war - between his Marxist-leaning regime and US-sponsored Contra insurgents - in which more than 50,000 people died.His return to power on January 10, following 16 years in opposition and three straight defeats at the ballot box, made a lot of noise, but things have since quietened down.Not much has come of Ortega’s many promises to end the problems of impoverished

Nicaragua.At least 75 per cent of Nicaragua’s 5.5 million people live in poverty, according to the Economic Commission for Latin America and the

Caribbean. Only dysfunctional Haiti has a lower per capita income in

Latin America.Still, under Ortega - as was the case earlier - only 14 per cent of the state’s modest budget is devoted to fighting poverty, with no expansion of resources on the horizon for such efforts.Instead, the Sandinista leader has continued to consolidate his political power, and political analysts are beginning to see the first signs of likely nationalizations in the economy.Experts have pointed out that Ortega found a favourable setting when he took power this time. Exports topped 1 billion dollars for the first time, and the country’s debt - at 3.7 billion dollars - was no higher than in 1990. The conservative government of predecessor Enrique Bolanos had brought inflation under check.From the start, Ortega made every effort to dispel notions that he would once again turn

Nicaragua into a communist state.He did make clear his alliances with Cuba and with Venezuelan President Hugo Chavez - leader of a Latin American bloc often at odds with the

United States. At the same time, though, Ortega attempted to reassure

Washington.The one-time revolutionary backed Iranian President Mahmoud Ahmadinejad but did not support his initiative to deny the Holocaust. Ortega included a former opponent, former Cardinal Miguel Obando y Bravo, in his reconciliation policy and sought rapprochement with neighbouring Costa Rica and

Honduras despite border disputes.He has maintained talks with the International Monetary Fund (IMF) to reassure foreign investors, who fear that the Sandinista leader could nationalize much of the economy - a route taken recently by fellow leftists Chavez and Bolivian President Evo Morales.Meanwhile, the first 100 days have seen Ortega consolidating his own power and that of his influential wife Rosario Murillo. Two cabinet ministers have already had to relinquish their posts after expressing criticism.Ortega has achieved direct control over the police, and he heads the armed forces, having failed so far to name a defence minister.Ortega won the November 5 presidential election in the first round with 38 per cent of the vote - enough to avoid a runoff under

Nicaragua’s election rules.He has weakened the opposition through a controversial pact with conservative former president Arnoldo Aleman. The deal allows Aleman free movement around

Nicaragua despite his conviction on corruption charges.On Monday, the leader of a splinter faction from Ortega’s own Sandinista party described the president’s recent actions as anti- democratic. Edmundo Jarquin, head of the dissenting Sandinista Renovation Movement (MRS), criticized Ortega for allegedly leading an authoritarian family regime and of wanting to destroy the Nicaraguan economy again.“This is a serious threat,’ Jarquin warned, ‘to democracy, to economic progress and to the mitigation of poverty.”

 

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News & economy NicaNews on 09 Mar 2007

Venezuela kicks off surveys to build USD 2.5 billion refinery in Nicaragua

Venezuela has started land surveys required for construction in Nicaragua of a USD 2.5 billion 150,000 bpd refinery expected to be completed in four years, Reuters reported.

The announcement was made by Venezuelan Minister of Agriculture and Lands Elías Jaua, who headed a Venezuelan delegation meeting with Nicaraguan officials to review the agreements initialed by Nicaraguan and Venezuelan presidents Daniel Ortega and Hugo Chávez, respectively.

According to figures provided by Jaua, Chávez financial aid to Nicaragua is totaling some USD 430 million in energy, agriculture, health and social projects. “These investments are huge,” Ortega conceded.

Out of this USD 430 million, USD 340 million has been earmarked for oil supply and other means to solve the Central American country’s grave energy crisis, Efe explained. This initiative includes shipment from Venezuela of a first batch of electric powerhouses at a cost of USD 50 million. Another similar batch is scheduled to be shipped any time soon, and Venezuela has also pardoned Nicaragua’s USD 22 million resulting from Venezuelan fuel sales to a number of Sandinist mayors in Nicaragua last year.

The remaining funds -USD 90 million- will be injected into different healthcare, education, exports, agriculture and electric power projects. This includes USD 10 million that are not refundable and will be used to guarantee free healthcare and education of Nicaraguans, while other USD 10 million are funding a number of agriculture projects starting May in Nicaragua.

http://english.eluniversal.com/2007/03/08/en_eco_art_08A842807.shtml

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