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Proceso 1053
June 18, 2003
ISSN 0259-9864
 
 

INDEX




Editorial: The offer of ARENA

Politics: Ghosts and realities in the pre-electoral context

Economy: The unfair indebtedness of the private business companies

 
 
Editorial


The offer of ARENA

 

Those who aspire to be chosen as the presidential candidate of ARENA have an ambiguous attitude about the present government. They are aware that its deficient administration determines the electoral preferences of the population, which, at the moment, are not favorable. However, they do not dare to talk about the mistakes to avoid making specific promises. They cannot just say that, if they arrive to the Executive power, they will continue with the present policies. They, with the exception of one, do not dare to take distance either. At times it might seem that they are promising to offer a different kind of administration, since, on the contrary, it would not be possible to establish the difference between their proposal and the one of the present government. However, their discourses are so much alike that it is difficult to guess what is the new offer. It is clear that several aspiring candidates are more ambiguous than others, but continuity is the common denominator of their offer, despite the negative balance that the Flores administration shows.

The faces might be new, but their discourse is not. They all talk about getting closer to the people and about negotiating with the diverse sectors. They all talk about the poor and about the social policies. They all talk about the importance of a debate, about being open to the critics, and about the contributions of the citizenry. But none of them offers a specific plan. Their discourse even seems identical to the one used by Flores during the beginning of his campaign. However, what seems paradoxical about this issue is the contradictions that the whole process involves. During their public and their private careers, none of these aspiring candidates got close to the poor, they never defended their cause or promoted a debate about their situation. Now they insist that they will promote and accept the critics the critics that they have formerly rejected, they promise that they will not privatize the public health system when not too long ago they demanded its immediate privatization. Now they say that they are worried about the absence of a social policy. However, not too long ago, all they cared about was to increase the number of assets of the business elite and to repress the social protests caused by the absence of that social policy. None of them seem to have a specific plan for the presidency. It is just more of the same with a few contrasts.

If ARENA can only offer the same, it has no other choice but to use Anti-Communism as a campaign issue. However, Anti-Communism is not a governmental program, because instead of getting the voters closer to their ideals, they push them further apart, and it creates fear; that campaign does not create jobs or a fairer distribution of wealth; instead of developing social programs it represses those who are discontent. The country needs something more serious than Anti-Communism. However, it is an issue that has advantages for ARENA, since it saves it the effort that would be needed to elaborate an efficient governmental plan with an emphasis on the social matters, and the party easily avoids making a specific commitment with the population. If Anti-Communism is the best that ARENA can offer it will have an outdated campaign, promoted precisely by those who have insisted on concentrating in the future. Anti-Communism is not an electoral campaign issue and it will not do any good to the country, because it will exacerbate even more the polarization and the political violence. This type of campaign will not be a guaranteed success for ARENA, because when the population is tired or simply angry because of a vitiated administration and the lack of credible promises, that is enough to decide to vote against that party.

ARENA’s Anti-Communist crusade shows how improbable it might be that the governmental party accepts a change. It seems as if its members do not conceive that another party, especially not the FMLN, can replace them in the Executive power. If something like this happened, it would be a total catastrophe. That is what several politicians and a number of unknowing business companies affirm. If ARENA and the business elite sustain that the FMLN is a grave risk for the country because a left-wing administration would mean to change the capitalist system for a socialist one, a regime of freedoms for a regime of slavery, a state of democracy for a state of Communism, an environment of peace for an environment of class struggle, security for terrorism, good for evil... The logical conclusion is that in the case of wining the elections it will be necessary to prevent them, at any cost, from taking over the Executive power. In the present context, this discourse would be aimed to gain more votes for ARENA. But the implicit logic of this argument can lead to think that, in the case of wining the elections, and given the dangerous objectives that it represents, it would be necessary to prevent the FMLN from taking over the Executive power. From a democratic perspective, this is a very serious statement.

The dangers of the FMLN have been also emphasized by the Embassy of the United States. It has not only clearly demonstrated its electoral preference for the party in the government, but, in a way, it has also asked the Salvadoran population not to vote for the FMLN. This direct intervention in the internal affairs of El Salvador, which goes against the elemental aspects of diplomacy, can only be described as imperialism. The government of this country does not seem to care anymore about being called imperialist, because it is determined to defend the interests of its business companies at any cost. However, ARENA as well as the United States’ Embassy both speak about democracy and free elections. It is clear that these declarations have to be understood in the context of what is convenient for them.

That is how what should be the change of government has become a crucial election between two ways to organize the society, the economy and the state. The parties have turned what should simply be the continuity or change of policies into a matter of fundamental values. ARENA and the FMLN should make an effort to abandon a Fundamentalist position and moderate its actions, so that a change of administration were not understood as a change of system. The elections are nothing but a procedure to choose those who will administrate the country. In this sense, the change of government should stop being a matter of life and death. The procedure to change or modify the system is the national consensus.

G

 

Politics


Ghosts and realities in the pre-electoral context

 

Ghosts and realities in the pre-electoral context
Since the results of the March elections were revealed, the main concern of the parties is to improve their credibility among the electorate. The interpretation that has been made about the results is that the 2004 presidential elections can bring more than one surprise. The leaders of ARENA, the FMLN, and the leaders of the “center” are polishing their campaign strategies looking forward to that event. That is why the predominant sensation that comes to mind when observing the behavior of the political actors is a unrestrained nervousness that transforms itself into controversial measures that many consider as a populist style.
It is necessary to notice that the opposition as well as the governmental party blame each other for being “populists”. In the case of the opposition, several sectors close to ARENA denounce the irrationality of some of the measures recently promoted by the Legislative Assembly. That is the case, for example, of how the traffic fines were forgiven, or the efforts to restrain the seizures of the financial system against several coffee-growing farmers. As for the opposition, it denounced the recent decision of President Francisco Flores to lower the prices of the electric energy. This measure will affect the capacity of the city halls to collect the necessary taxes to offer the basic services for the citizenry.

Some people see in the populist measures a direct reflection of the Salvadoran electoral rhythm. In fact, the country is subjected to continuos electoral events that affect the behavior of the politicians. All of them intend to gain the sympathy of the electorate in an authentic mad race to take flashy decisions, regardless of the economic and the political consequences in the long term. This article will try to reflect upon the present political situation in the context of the internal conflict that the political parties go through to select their candidates.

The importance of this issue for the country’s political process allows us to focus on the internal institutional activity of each one of the parties involved in the system. On the other hand, it allows us to have an idea of the nature of the future political competition. This will contribute to establish the political scenery in which the winning party will have to work. In addition, the relevance of this subject helps us to reflect about the actual commitment of several national sectors with the Salvadoran democratic process.

Uncertainty
In this context, the most important matter is the electoral process that El Salvador is about to live during the selection of the candidates. No one knows the names of the candidates, or what political party (or what parties, in the case of a coalition) will arrive to the Executive power. This uncertainty invades the passive observers as well as the political actors.

The uncertainty about who the next President will be invades all the fields of the social and the political life (regardless of how much the ARENA leaders and the conservative press criticize the arrival of an invasion of Communist Martians) is a very important event for the Salvadoran democratic process. The most relevant virtue of a democratic system is that nobody can predict the result of the governments’ selection process. No one should have the right to misinterpret the result of the elections. However, it is necessary to say that this is an institutional uncertainty. What is really important is to know that in this game the future is not written, because only the voters can write that future.

The well-informed observers ask themselves if the right-wing leaders have actually understood the Peace Accords, signed in 1992, which allegedly inaugurated the Salvadoran democracy. It is permitted to make a negative propaganda against the political adversary, but to present them as the enemies of the system to prevent the electorate from making a free decision is a notoriously anti-democratic attitude. Those who are trying to scare the people with the ghost of Communism end up placing themselves in the same line of the system’s enemies that they are trying to neutralize.

Democracy also means to accept that the power will not always be in the same hands. When the elite seems reluctant to accept this principle, no matter how much its members talk about the noble ideals, they turn into dangerous detractors of the political stability that they allegedly defend. There is nothing complex about it. It is just about respecting the decision of the electorate.

Fernando Guasch thinks that “there is no democracy if the political power remains in the same hands. Whoever does not accept or understand this principle does not know what democracy is. This means that the voters should be able to choose those candidates that they find more qualified, being certain that their decision will be accepted.”

As an evidence of their “noble ideals” –with the alleged purpose of saving the Salvadorans from a Communist tyranny, Cuban Style-, the most important local news papers daily criticize the miseries of the Communist past and constantly repeat how poor the Cuban citizens are under the dictatorship of Fidel Castro. The papers exhort the Salvadorans to be afraid about the Communist menace that might come upon the country. On June 17th, El Diario de Hoy explained that “A considerable part of our readers know what happened to the doctors and the workers who did not support the strike: they were insulted, criticized, threatened and even attacked. The communist party does not tolerate the possibility of dissidence; the leaders have to blindly obey, as well as the working classes and the poor. Those who expect the Communist to make a miracle should see themselves in that mirror. If they are willing to throw their own comrades out, it is not hard to imagine the kind of informative freedom that they allow once they have the power”.

The political parties are on a crossroad
The different political organizations involved in the electoral process are trying to win the sympathy of the electorate. That is a valid operation, however it is also a very difficult one if we consider that most of the citizens highly disapprove of the deficient performance of the politicians. Nevertheless, there is also a majority that still has faith in the improvement of the Legislative Assembly’s performance during the next administration period.

The Legislative Assembly that just ended its period (2000 – 2003) faces a credibility level as low as the Executive power, since it gathers a number of unfavorable opinions. One of those unanimous expressions about this organ is that the population feels that the Legislative Assembly did not favor or represent the interests of the citizens. However, according to public opinion poll performed by the IUDOP, a considerable part of the population still feels that the situation of the country can be improved with the new Legislative Assembly.

In this context, the different public opinion polls suggest that the political parties should follow a specific way if they intend to reduce the effect of the continuos erosion of their popularity, and generate enough public support in order to achieve the victory in the next presidential elections.

All of the opinion polls reveal that the most credible characters to undertake the presidential duties are not the members of the parties. In other words, most Salvadorans do not believe in the leaders of the parties and they ask them to open their doors to the people who come from the civil society. In the case of the FMLN, this sentence will be more severe: its most emblematic members are the ones that, in theory, should symbolize the transformations claimed by most Salvadorans. However, the party does not have, according to the opinion polls, the approval of the people. Those who are unhappy with the administrations of ARENA, are suspicious about the postulation of a member of the FMLN for the presidency of the country.

The paradox of this reality is that the electorate seems to demand the transformations from those that, according to them, might not be completely qualified to transform the country. That is how it can be understood why, on the one hand, the left wing party is seen as the substitute of ARENA, and why, on the other hand, the Salvadorans do not give any credit to the leaders of the FMLN in order to accomplish this task.

G

 

Economy


The unfair indebtedness of the private business companies

 

The unfair indebtedness of the private business companies
The Superintendence of the System of Pensions has recently stated that a considerable number of private business companies are in a state of indebtedness. This means that those companies have not transferred to the Administrators of the Fund of Pensions (AFP, in Spanish) the money that they take from their workers’ salaries. This is a very serious matter, since the retirement of these employees is at risk.

A considerable number of workers are affiliated to the AFP. All of those employees who generate an income, are those who are presently active in the work market. These are the effective contributors. Unfortunately, there are also those who are affiliated active workers but who are not active contributors. This happens because there are employers who take from their workers’ salaries the amount that goes to the AFP, but these amounts are not sent to the AFP.

The debt that the business companies’ owners have with the AFP does not only harm the workers. It also attempts against one of the macroeconomic objectives why the System of Pensions’ Savings was established (SAP, in Spanish): to generate an increasing amount of national internal savings, in order to have in the future a better productive capacity and improve the investment activity. That is why the Superintendence of the System of Pensions is closely following the actions of all those companies that are not paying the contributions of the workers to the AFP.

In the present macroeconomic situation it is possible that the contributors ignore the impact of the debt, since their contributions represent a future income. However, in the long term, this indebtedness could turn into a considerable financial problem, since the workers would not enjoy a decent retirement pension, which, theoretically, they have paid for (through the Individual Contribution System). In other words, we are talking about a “long term theft” of the workers’ income.

The economic performance of the last years has had an indirect influence on this debt. This happens because if the companies do not have enough income to face their short term needs, they have serious difficulties to deliver the contributions to the AFP, for their employees’ pensions. However, this situation does not justify their actions What is worse is that they are illegally using the money that does not belong to them and assigning it to other economic activities of the managers, the owners or the administrators.

The amount owed by several private business companies to the AFP is $30 million. To understand the magnitude of this problem, it is necessary to say that one of the country’s most important AFP has identified approximately 140,000 workers who are employed in companies that have not transferred their contributions to the AFP. According to Francisco Sorto Rivas, the Superintendent of the System of Pensions, the corporations that owe that money belong mostly to the branch of construction, the maquila, and to the security field.

It is necessary to say that these branches usually pay very low salaries. This means that the people who work in this kind of companies earn a salary that is not enough to cover their basic needs. Despite that their employers are aware of this situation, they still take away a portion of the workers’ salaries with the pretext that an amount of their income will be destined to the fund of pensions.

These workers are not only living with a very narrow budget, but their future income is also in danger. When they stop working, they will receive a very small pension, much smaller than what they really deserve, much smaller than what they have worked for.

However, the implications of this problem go beyond this context. According to the law of the SAP, when an active employee stops contributing to the AFP for over six months, he loses the right to his life insurance. In other words, if the contributor dies, his family has no right to receive an income from the insurance company. An if the employee is badly injured, he has no right to claim any money. Most workers ignore that their employers are not transferring their contributions to the AFP.

To this date, there are approximately 1,000,000 people who are affiliated to the AFP. The number of those who are affiliated and pay their contributions is 460,000. Therefore, the density of the contributions, which can be calculated by dividing the number of contributors between the number of those affiliated, is approximately 46.2. This amount has gone downwards during the last years. Among other aspects, this means that the number of people who are affiliated to the AFP has grown much faster than the number of active contributors.

The number of active contributors has been characterized during the last couple of semesters by its fluctuation. By the end of 2002, this number experimented a reduction of 0.5%. That tendency continued until the first couple of months of 2003. The monthly fluctuations of the active contributors obey to the economic contractions that have a direct influence on the country’s labor market.

In this context, it is necessary that the government establish the necessary economic measures to improve the activities of the labor market, especially to generate employment in the formal sector. If the formal employment opportunities increase, the number of active contributors will increase as well. New workers will be able to affiliate themselves to the AFP in this situation. In the mid and the long term, this will generate a much larger fund to improve the national internal savings.

G

 

 
 
 


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