The
effectiveness of the FOVIAL: the invisible roads
When the budget
for the Fund for the Conservation of the Roads (FOVIAL, in Spanish) was
approved and made official by the Legislative Assembly, in February 22nd of
2002, the national maintenance program of the net of urban roads was
released. Today, a year after the program’s reactivation, the civilian
control becomes an imperative for the effective regulation of the resources
that come from these funds. Theoretically, these funds will be used in the
benefit of those who have contributed with its creation.
The nature of this tax created a controversy. On October 29th of 2001,
ARENA, the PCN, and a couple of independent candidates added 45 votes to
approve an increase on the price of the combustibles to finance the FOVIAL.
The extra charge was $0.20 cents for each purchased gallon of fuel. This tax
counted with the support of an enormous advertising machine, and it also
showed the intentions of the government.
The government did not care very much for the potentially negative impact
that this would cause over the lives of the middle class, the sector that
was most affected by this measure. This tax is applied following the same
criterion used with the Value Added Tax: to charge the same amount of taxes
to everyone, without making the necessary considerations to understand the
vulnerabilities of those who pay for it. The systematic increase of the cost
of life for the present economic situation is negatively affected as well
because it is a regressive tax. It is assumed that everyone has the same
purchasing power and that, therefore, the impact will be “fair”. Nothing
could be further from the reality.
The questions about this issue are separated from the everyday traveler of
the main arteries of the metropolitan area of San Salvador. Despite that the
logic of that tax indicates that the consumers who own a vehicle are those
who pay for the proper maintenance of the main areas of circulation, they do
not receive the benefits of that tax. It is important to wonder about the
perverse logic of paying a tax that will affect the contributors who move
around the precarious conditions of the main roads of the city, which
evidently are the place where the “Gordian knot” of the heavy traffic
concentrates. This can be understood as a structural incongruity of the
objective of the tax, because this one does not keep a direct connection
with the results.
It is necessary to consider that the propaganda for the FOVIAL highlights
the positive character of this tax for the country. This fact could be a
fallacy because of three factors:
- Since it is a regressive tax, it shows that the ARENA administration has
the tendency to deteriorate the purchasing power of the middle class (those
who earn a monthly amount of 5,000 to 25,000 colones). The existence of the
middle class is a challenging achievement, since it is the thermometer of
the quality of the economic policies. If the middle class keeps a positive
position, or if the number of people who become part of it increases in the
long-term, this will put away the obstacles that encourage the radical
polarity of the Salvadoran society’s income: the extreme poverty versus the
incalculable amount of wealth concentrated in a few hands.
- It is still not clear if the toll system (a direct tax and, therefore, a
progressive one), which is also used in those nations with a higher level of
development, is not an suitable tax. This tax is paid by those who need to
travel through certain roads, since it is supposed to be a fair instrument
for the citizens who drive their own vehicles.
- The risk using the collected taxes in an illegal way is a latent loophole,
and the citizenry should be relentless for an audit. In fact, to prevent the
possible “leaks” and an inefficient use of the millions of money that come
from the FOVIAL and other taxes is a key factor to promote a transparent
administration of the public resources.
The positive influence of the program in question is potentially stimulant,
since it belongs to the logic of Keynes (the attraction of public and
private investments, the creation of jobs, and positive external options for
the population). In reference to this aspect, the Directive Council of the
FOVIAL explains that “with the renovation of 172.60 kilometers, in five
projects that belong to the Periodical and Ordinary Maintenance Program of
4,442.24 kilometers at a national level, between the paved roads (2,344.28
kilometers) and the non paved roads (2,077.96 kilometers), El Salvador
received, for the first time, a permanent maintenance of its roads”. This is
a positive change, but if the situation is closely examined, there are
doubts about what roads will become the priority.
It would be dangerous not to question the implementation of the project to
obtain the best possible results from the expensive projects such as the
FOVIAL (The Ordinary Maintenance Program alone, after nine months, has
absorbed an investment of over $60 million dollars). President Flores stated
in one of his introductory discourses about this program that “the
development of our country goes as far as our boundaries go”. The question
that follows is: What are the priorities? Will there be any technical
studies to quantify the number of vehicles that circulate through the main
roads of El Salvador? Is this program part of a defined strategy of
development that represents the interests of the contributors?
It seems as if all that matters is the FOVIAL and not how it really
works.What is its impact?, and who receives most of its benefits, according
to a long-term strategy and a coherent development plan for the middle and
the less fortunate sectors of the country?
The FOVIAL is very practical and that is why it is important as a
transversal axis of a national sustainable plan. That is why it is necessary
to consider what could be the actual achievements of the FOVIAL, as well as
the negative examples of the abandoned main roads, where the potholes are so
numerous even during the summer. The vehicle owners that travel through the
España Avenue, the old road to Huizucar and many others that have a massive
affluence of vehicles pay the price of this situation. This situation must
be analyzed in order that the citizenry does not resent the poor
administration of the funds. “When the resources are abundant, there are
plenty of people willing to waste them”, says a popular proverb, and it
seems to be the opinion of those who circulate everyday through the
neglected roads.
The FOVIAL program is an opportunity to change the chronic misappropriation
of funds. The problem is not about the lack of resources; this is an
administrative problem. To use the public expense efficiently could be a
positive choice to improve the productivity, the efficiency, and most of all,
the performance of the actions aimed to preserve and improve the roads. That
is why it is important when we hear questions such as “why do people who do
not circulate through the roads should pay for those who do it everyday?”
This logic leads us to believe that the FOVIAL is not a positive measure for
the majority, but that it will only be beneficial for those vehicles that
transport a heavy load. The maintenance expenses for this kind of vehicles
will probably be reduced; however, this will not strengthen the rest of the
citizenry.
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