PROCESO — WEEKLY NEWS BULLETIN — EL SALVADOR, C.A.

Center for Information, Documentation and Research Support (CIDAI)
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Proceso 1065
September 17, 2003
ISSN 0259-9864
 
 

INDEX



Editorial: The gap between tradition and reality

Politics: Mystified Independence

Economy: The PYME before the Free Trade Agreement with the United States

 
 
Editorial

The gap between tradition and reality

 

The right wing adds to the list of lost values the fact that the people have lost the thrill for the patriotic symbols and the rituals. It did not use to be that way. In the past, the society vibrated with the patriotic celebrations. Nowadays, the population is only interested in the show that a parade can offer. Therefore, the right wing is not completely wrong. It is true that the students still sing the national anthem and honor the flag; however, the right wing perceives that something is missing, that a very important bond has been broken, and that, naturally, the values have to be saved. Only the immigrants probably get together to reaffirm their identity, because they get excited with the traditional patriotic ideals. Nevertheless, the right wing does not seem to realize that nostalgia is the bond that unites those immigrants. This is a nostalgic feeling for both the past and the lost lands where they were born. It is necessary to wonder why that land that they miss so much does not say much to today’s young people and the society in general.

The idea of the patriotic traditions the right wing refers to was constructed after the failure of the first regional intent to build a federated state. Ever since then, every state built its own national identity and the symbols that represented it during the last half of the 19th Century. The national history was written and the patriotic celebrations were created, as we know them, including the military presence –the legacy of the wars of the federation, not the legacy of the independence, a civic event-. It could not be any different, since the nation is a consequence of the state, of its cultural policies, and of its efforts to unite the population that lived in that territory in order to achieve a shared identity. The history and the national symbols were created as a foundation for the construction of a nation. That is why the national history is not usually faithful to the historic reality. The idea of a nation, created by the coffee-growing state, was reinvented later, in order to model it according to the circumstances. This is how this idea managed to survive. In other words, the nation vibrated at the same rhythm. The fact of the matter is that now the nation does not vibrate with the same intensity.

The reasons are simple. A state that excludes people cannot produce a nation, since it destroys its foundations. When the majority is excluded, and when individuality prevails, people lose the sense of sharing, and it becomes almost impossible to refer to a collectivity, to an “us”. When the public policies are eventually perceived as part of the foreign interests and as a part of those ideas defended by the privileged groups, the nation forgets about the state. The bond dissolves itself. That is why the symbols that presently represent the nation do not have the same strength that they had in the past.

The opened markets include a cultural dimension that is paradoxically unnoticed but real at the same time. That openness widens the horizons, increases the options to practice the individual freedoms, and opens new possibilities to participate; however, at the same time it ends with the bonds and the traditional behaviors, those attitudes that were part of an identity, those values that protected the people. An individual and his freedom, the fundamental articles of the Neoliberal creed, became stronger ideals; however, in the same measure, it becomes more difficult to have a clear idea about the meaning of society, what is common and what can be shared. The country exists, but the society in general is not an evident fact anymore. An individual can choose his religion, his sexual preferences, his acquaintances, and his groups. The multiplicity of beliefs, values, lifestyles, and fashions brought by that openness ratifies the image of a free individual, but it makes it difficult to acquire a sense of collectivity.

The Neoliberal state has imposed a lifestyle where the social bonds have been reduced to their minimum expression. That is why the nation, understood as a collectivity, is empty. The governmental policies of the last 15 years have left most of the Salvadoran population defenseless. This excluded population becomes passive and it loses the sense of belonging, its identity, and the solidarity feelings for the community. The spaces designed to cultivate solidarity and live collective experiences have disappeared. The importance of the appearances has increased, but the reality becomes less social. The words lose their power before images, and virtual reality takes the place of reality. In other words, it is difficult to have the idea of a social life and be part of a collectivity.

The increasing individual freedoms carry an implicit sense of impotence. The present social order is naturally accepted and, therefore, it is subtracted from transformations of the political action. That is why many people are not interested in the public life, or in politics, or in democracy. The symbols that represent the nation and the state cannot remain intact before this general degradation of the common and the social realities. The people have to go through an enormously difficult process in order to perceive themselves as an “us” with enough power to make decisions about their future. The repetition of the national rituals is not effective anymore, it can no longer reproduce or transmit the identification with the traditional order.

The gap between the social reality and the symbols that represent it is evident. The leaders have been incapable of creating new symbols, that is, symbols connected with the everyday life. It is not easy to create new aspects of the collective identity when the social reality remains disarticulated and abandoned. In other words, no one can talk about freedom or celebrate freedom when most of the population is the prisoner of its basic needs, when there is no freedom to grow and develop skills, or even reach our most legitimate aspirations. Only a few people feel satisfied about the amount of freedom that they enjoy, when others have to sacrifice their own freedom.

The meaning of the national symbols has been removed by the same people who now feel worried about how unimportant these symbols are at present. The challenge is to build an “us” with a diversity of actors, visions, and values. Without a doubt, this is not the traditional sense of “us”.

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Politics

Mystified Independence

 

One more year of the Central American independence was celebrated during September 15th. There were colorful parades, pompous official discourses, and grandiloquent declarations about the meaning of the freedom conquered 182 years ago. This year’s celebration had its share of military parades, and a display of fireworks that are commonly associated with the army and the commemoration of independence.

However, for the first time ever since he became President, Francisco Flores presented a valuable speech, acknowledging the dedication and the spirit that the Salvadorans have. In the past, the President would usually talk about the almost natural bonds between ARENA and the defense of freedom. This time, Flores spoke about freedom in global terms, and he included all of the Salvadorans in his speech, without distinction of creeds or political inclinations. The following phrases show the surprising tone that he used this time, the tone of a statesman. He said, “It is a good day to remember. But it is also a good day to celebrate, a day to realize what we have achieved together, united under the same sky, under the same flag, and enveloped by the values that we share”.

Flores also spoke about his faith in the region. “We are from Central America, we deeply believe in the Great Country, that is why Morazan lies here on a Cuscatleco ground, because here is where a feeling of integration lives”. Without making a detailed analysis about Flores’ behavior in relation to the issue of the Central American integration, it is important to remember that the future of this region depends on the union of its countries.

These are all of the positive considerations about the commemoration of the patriotic celebrations organized by the official circles. This year, the electoral context had an influence on the celebrations. In such context, several references have been made about an alleged Communist invasion. That is why Antonio Saca’s slogan invites the Salvadorans to “speak with freedom”. Even if Flores did not take advantage of the national audience in the context of his traditional speech to the nation to promote Saca’s campaign, Saca, on the other hand did take advantage of this extraordinary opportunity to promote his own political campaign.

A few days before September 15th, the frequency of the propaganda increased and so did the declarations of Saca about the alleged democratic virtues of his party. According to ARENA, its members will undertake an anti-Communist crusade in order to assure liberty will prevail in the Salvadoran lands. They think that our freedom is not safe if the opposition that belongs to the left wing finally arrives to the Executive power. That is why Saca’s team says that they are willing to offer the necessary certainties and prevent the country from falling into the Communist menace.

There are not many elements that could allow us to think that the Salvadoran population is somehow connecting the independence and the country’s present reality. On the contrary, it is possible that a considerable part of the population might not be aware about not only the most important facts connected to the struggle for independence, but about the actual meaning of this event for the new generations. The crowds that usually gather to watch the parades and the parachutists are not necessarily identified with the heroes of independence. This alleged civic fervor hides a deep sense of ignorance about the most ordinary aspects related with that event.

That might be the reason why this year Flores did not waste any time giving civic advices. He was happy to frame the celebration in the context of the national liberation from the colonial yoke. In addition, he said that it is necessary to take good care of that legacy. In his words, “This is our legacy, it is our compromise, our future is in these values”.

It is evident that the caretakers of this legacy have not performed a qualified duty. Flores forgot to mention that the relation he is establishing between his party and the independence issue is not the best response to the present needs of the Salvadorans. The President is right when he says that freedom is the foundation to build the future. However, at this point, it is necessary to have a more accurate approach to this issue. It is necessary to wonder why 182 years after the independence most of the citizenry is not enjoying the privileges of freedom.

The ideal of independence in the 19th Century cannot be separated from the aspiration for equality and justice. When the Latin Americans screamed for freedom, they were at the same time denouncing the injustice and the inequality in the colonial world. It was a society of lineage in which the Europeans counted with all the privileges, while most people belonged to an inferior category. Many of the leaders protested against this world and against this society.

That is why any reflection about the conquered freedom cannot be related with this reality. In the first place, the legacy of freedom has to be valued. Freedom has to be celebrated, but is also necessary to criticize the poor vision of the Creole that managed to achieve that independence. Their project for the society did not go beyond removing the Spanish people. The Creole longed to occupy the positions and enjoy the privileges that the Spanish had. That is why their rebellion was not against the model of the colonial world, but against those that administrated that society. When they finally got rid of the colonial yoke, they just replaced their former masters only to become dominators.

This situation leads us to wonder what can be done to neutralize the excluding model that led to the independence of the region. That is why it is necessary to read between the lines when it comes to examine the freedom f this country. We have to remember the humiliation that the Central Americans suffered during the colonial period, and compared them with the deprivations that most of the inhabitants of this region go through in the present. In addition, it would be important to analyze the authority model of the 19th Century, and the present decision-making mechanisms that the authorities use. It would also be necessary to reflect about the new colonialism that intends to affect the society, even if this is not a problem for the elite.

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Economy

The PYME before the Free Trade Agreement with the United States

 

During the last weeks, we have been able to see the compromise of the state and the private business companies to strengthen the sector of the Small and the Medium Business Companies of the country (PYME, in Spanish). The objective is to improve the skills of these productive areas before the serious challenges that the establishment of a free trade agreement with the United States brings. A series of business meetings, organized during the last weeks, intend that the PYME implement association mechanisms that allow them to reduce their operational costs. During those meetings, several international institutions such as the Inter-American Bank of Development and the Spanish Cooperation, through the different Central American governments are granting a series of micro credits for the improvement of the PYME.

In this context, Mario Diaz, who represents the Association of the Medium and the Small Business Company Owners of El Salvador (AMPES, in Spanish), said that it is necessary that the state establishes a favorable law for the PYMES. As an example of this objective, Diaz said that the United States has a law which establishes that the state has to purchase products from this sort of companies. In addition, he explained that a considerable part of the businessmen of the sector are confused before the possibility of an agreement with the North American nations. According to Diaz, many business owners think that the free trade agreements with Mexico, Panama, Chile, and other countries have not been positive for them, and this contradicts what the government offered in the beginning. The business owners said that they did not know the meaning of both the free trade agreements and the devices that the state offers to benefit their sector.

In the economic area, the PYME are an important source of jobs that makes a substantial contribution to the GNP. According to the Ministry of Economy, its contribution can be calculated in approximately 45.3% of the GNP. As an employment source, these companies hold 32.9% of the job positions of the country. These companies have a low productivity level if they are compared to the large business companies, and this is transformed, among other things, in goods and services that are not easily sold in the market. Most of these companies are located in San Salvador, La Libertad, Santa Ana, and San Miguel. It is necessary to notice that over 50% of the PYME are located in the city capital of the country.

Socially, the PYME are very important, since many Salvadoran families depend on them as they offer employment. Many women who are the head of their home administrate a considerable amount of these companies. The PYME are also the place where these women bring their children. A deterioration in the commercial activity of these companies would become a considerable reduction in the income level and the quality of the life standards of the families that depend on them. In this context, it is necessary to realize that the PYME are also the source of the incomes of many middle class families.

During the last decade, and due to an economic reform organized by the ARENA administrations, the PYME sector grew. The privatization of the state’s assets caused the expulsion of a considerable number of public workers who a while later decided to look for a job in the formal as well as in the informal sector. Many of these people founded their own small business companies. It is important to notice that the sector of the PYME has a fluctuating participation in the market, since its economic activity seems to be connected with the presence of informal activities. Therefore, when the economy is not doing too well, more informal PYMES are created and vice versa.

The expectations before the commercial openness
The owners of the PYME have had different reactions about the trade agreements. A considerable number of them think that the free trade agreements have not generated the benefits that the ARENA administration announced. A minority thinks that in such treaties they found the possibility to export their products, and that they managed to resolve the low demand of goods and services of the local market. This is one of the main reasons that, according to the Salvadoran Foundation for the Economic and the Social Development (FUSADES, in Spanish), explains the low economic activity level of many companies of the sector. The existence of a low demand in the local market, which generates a large offer of goods and a difficult access to the credits, are the main obstacles for the development of the PYME.

According to the Business Foundation for the Sustainable Development of the Small and the Medium Companies (FUNDAPYME), 30% of the owners of these companies consider that the process of commercial openness that has characterized the country during the last decade has generated an increasing competition in the local market. This kind of competition, for 25% of the business company owners, has reduced their sales, and only 10% of them consider that such process has increased their profits. The PYME are therefore perceiving the effects of the commercial openness in a very heterogeneous way; however, it is important to notice that, in general terms, the medium business companies seem to have received more benefits than the small ones.

On the other hand, 71% of the business companies’ owners explain that the free trade agreements with other countries, specifically with Mexico and Chile, have not had particular effects over their companies. Others, a 14% consider that the free trade agreements have been positive for them, and 11% consider that these trade agreements have had many negative effects. The diversity of companies that belong to the PYME has been affected in different ways due to the trade agreements.

In the specific case of the Free Trade Agreement with the United States, 53% of the members of the PYME consider that such a commercial bond would be very positive for them. Another 39% do not expect any benefits from it, and 8% think that the Free Trade Agreement will generate pernicious effects for their companies. Therefore, most of the owners of these business companies expect to receive the benefits of this trade agreement. However, many of them think that it is necessary to count with the support of the state and the support of the private sector of the country. This is how they will be able to see what are the benefits of the ratification of a trade agreement with the North American country.

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