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Proceso 1000
June 2, 2004
ISSN 0259-9864
 
 

INDEX




Editorial: Weak strength

Politics: From discourses and other political realities

Economy: Antonio Saca and the economic future of El Salvador

 
 
Editorial


Weak strength

 

The panorama presented by the opinion poll conducted by the Public Opinion Institute of the Central American University (IUDOP, in Spanish) in reference to the evaluation of the last ARENA administration can be read from a couple of perspectives: a partial perspective, that can be a deceitful one; and a global perspective that can be more realistic. The former is content with a positive evaluation of the public opinion in regard to the government and the presidents of ARENA. The latter goes a step further and observes the weaknesses that threaten the strong aspects of the situation.

The public opinion made a very positive evaluation about the Flores administration, and that is probably a consequence of the electoral campaign. Over 50% of those interviewed think that the former president made positive changes, and particularly, that he built streets and roads, and that he punished the juvenile gangs, something that might had reduced the delinquency levels in a significant manner. Therefore, for a considerable amount of people, the country is now the same or better than it was five years ago, the President would have fulfilled his promises, and the performance of his administration would have been good. Only approximately one third of the population interviewed thinks that the situation is bad, and makes a negative evaluation about the government. The “grade” granted to the Flores administration is the highest one of the last five years; however, his cabinet was not evaluated in a positive manner. Except for the ministers of Public Works and Education, who ranked even higher than the President, all of the ministers did not get a positive evaluation, especially the ministers of Agriculture, Labor, and Economy. Therefore, from the perspective of the public opinion, Flores did not have the best cabinet of the Salvadoran history contrary to what he stated when making self-pleasing compliments during several interviews published in the morning newspapers.

From this positive perspective, Flores would be the most honest President that ARENA has had, the one that did more for the country, and the one that brought more benefits. The new President inherits that positive vision and awakens, because of that reason, great expectations among the Salvadoran population. The people do not have doubts about his capacity to administrate the country or that he will manage to make positive changes. They think that the country’s situation will improve during his administration; while those who think the contrary are only a minority. The new President ranked higher that the former one. And according to the information provided by the opinion poll, if the elections were to be celebrated again, ARENA would win with over 47% of the votes against less than 20% for the FMLN.

This hypothetical defeat is based in a series of negative opinions about the FMLN. Most of those interviewed, that is, 8 out of every 10 people, disapproves of the absence of the FMLN in the presidential inauguration. Instead of presenting a strong opposition such as the one this party intends to portray, more than half of those interviewed thinks that the FMLN should collaborate with the new administration. That portion of people also thinks that the image of the FMLN has become weaker. Although the reasons for the electoral defeat are divided in a couple of similar blocks, those who think that it was the fault of the party’s directive board, and those who think it was the result of external factors, most people (6 out of every 10) think that the elections followed a legitimate process. It is evident that the public opinion does not share the conclusions made by the directive board of the FMLN (that the elections were an illegal and an illegitimate process). The public opinion does not think that it was deceived or manipulated; their thoughts and judgments are positive in regard to the new government, they have positive expectations. Once again, the policies of the FMLN do not seem to be close to the thoughts and the feelings of the population.

The partial interpretation about the social scenery of the country ends here, but the opinion poll reveals enough information as to make a profound analysis and observe that the strengths of ARENA and its administration are not solid features. Almost since the beginning, the ARENA administrations have always had an enormously weak feature: the economy. Most people would like the economic policy to be changed, and this is a problem for a government that basically counts with the presence of a sector that represents the interests of the private business companies, and they refuse to change such policy. On the other hand, some of them would like to take a step further, that is, to offer more advantages for the wealthiest people and the business elite without considering the rest of the people. It is important to remember that ARENA moved quickly in order to avoid any transformations in the economic route. They might intend to continue with that strategy, but they will not go too far with it. They will have to introduce several important changes if they wish to consolidate the already identified strengths. The expectations of the people will only be kept alive with changes that are able to create more of an equitable society through a better distribution of the resources. Without that, governance will become more of a complex task.

With the delinquency issue apparently resolved, most people think that poverty, unemployment, and the economy are the main problems of the country. Safety, at the moment, occupies a second place. Eight out of every ten people think that the national and the family economy are now either worst or the same, and that is not a positive comment. Half of those interviewed think that the poverty level is higher now, and 25% of those interviewed believe that the level of poverty remains the same. The people also evaluated the performance of the Ministries of Agriculture, Labor, and Economy, and the results were frankly the most negative ones of the whole opinion poll; these are also the most critical areas. The population concentrates here the flaws of the Flores administration. The new administration cannot run away from this. That majority perceives that the priorities of the ARENA administrations are both the wealthiest people and the businessmen. Most of those interviewed believe that the former administration did not bring along much benefits, that they have no effect over the important decisions, and that no one has listened to them. This is another aspect that the new government has to consider in a careful manner. If it chooses a demagogic solution, its strong features might crumble away. On the one hand, this depends on what is the direction that the FMLN will take, because ARENA owes its present level of strength to the lack of actual alternatives. The new President should not forget that the critiques and the reviews received by the former president have fluctuated along his administration period: he was between a level of acceptation and a level of rejection along the last five years.

The consolidation of the civilian security remains at an apparent level. For now, the public opinion shares the thoughts of the government in regard to this issue: the punishments against the juvenile gangs are evaluated in a positive manner, and those interviewed approve of this sort of strategy regardless of the fact that it is an unconstitutional measure, and even if it violates the international rights. ARENA has promoted the idea that the best way to fight insecurity is to violate rights and weaken the institutions that should be strengthened, and this has become an obstacle for the people’s coexistence. At the moment, this is a critical shortcoming for an administration concerned by governance. Another problem is that the homicides allegedly committed by the juvenile gangs represent one third of the total amount of murders, which by the way keeps increasing. This kind of crimes are mostly committed with fire guns. When the population finds out, eventually, that the government cannot provide an acceptable standard of public security, this administration will lose legitimacy. This incompetence will be seen as a weakness and the citizenry will feel helpless.

The government should not forget that the ultimate goal of the combat against criminal violence is the promotion of the civil rights, which means that crime has not only to be fought back against individuals, but also against the institutional violence, the illegal conducts, the lack of control, the lack of social protection, and the existence of the authoritarian enclaves. Corruption, for instance, is an eloquent proof that the government protects the criminals or that, at least, does not fight against it with determination. Therefore, the “iron fists” are not a long-term solution.

The favorable perception of today can change before the brutality of a weak reality that is both violent and insecure. The answer that the ARENA administrations have found is a trap that sooner or later can snap. Therefore, the strength that ARENA and its government seem to have now shows its weak foundations and it can crumble away as easy as it was built.

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Politics


From discourses and other political realities

 

The presidential inaugurations are a fundamental ritual for democracies. The elected one is not only introduced to the society, but he also helps people to dream about his abilities to overcome the most critical problems. From this perspective, it can be said that the presidential inauguration of Antonio Saca and all of the media’s paraphernalia that has surrounded this subject has achieved its goal. The Salvadoran population, even if they do not have their expectations too high, they want the fourth President of ARENA to fulfill his promises.

Even if it all seems so simple, it is not just one more observation to say that the process through which the power has been transferred has been successful. The worst that can happen to a democracy is that the new President is not able to lift the spirits of an important sector of the population a couple of months after his inauguration. At the same time, it is no surprise if the opposition was not positively evaluated. In this case, the opposition has a double sanction. On the one hand, because of political conveniences that can be easily explained, it cannot share the dreams of most of the population that seems willing to wait and see how the new administration works.

On the other hand, in the particular case of the FMLN, after the elections its members have not been capable to present a coherent project able to at least create the illusion that they are willing correct the mistakes of the past. The leaders of the FMLN not only keep holding on to their positions, but also the confrontation strategy against the new President is not understandable for most of the Salvadorans. In other words, while ARENA gets the benefits of the enthusiasm and the share of hope that the new President inspires, the FMLN stays anchored off in the past and its leaders keep fighting over the control of the organization.

The inauguration speech of the President intended to increase the share of sympathy that it holds at the moment. He did not present a specific project, but quite a few general aspects that could make many people dream about a better tomorrow. He made an emphasis on his profile, that is those qualities that define him a as a good person and a simple character with humble beginnings. He promised to the Salvadoran population that he will not change because of the amount of power that he has now, and that he will always be by the side of the less fortunate because once he belonged to this considerable sector of the society. These words, without a doubt, sweeten the ears of a population that has not seen the benefits of the Neoliberal economy yet, an economy that has created the fortunes of the business elite that belongs to ARENA. Elias Antonio Saca stated that his administration will not be economically dogmatic and that “the logic of the market will not be venerated in a way that might be out of proportion”.

In simple words, Saca announced that he will move away from the Neoliberal orthodox attitude that was the ideological principle over which his predecessor based his governmental decisions. In other terms, he announced that he would break free from the thoughts that are popular in his party, which has always recommended the goodness of the market and the justice through which it divides and shares the country’s resources. It is necessary to wait and see to believe if President Saca will be able to honor his declarations. It is not necessary to be that keen to know that reality usually contradicts the dreams of the politicians. In addition, especially in the case of Saca, there is an immense mortgage that his position holds. His campaign was sponsored by the most important businessmen that have made a fortune precisely through the economic conception that he says he does not share. How much space will he have before the dominant interests of his own party? Will he find a mechanism of harmony to conciliate the interests of the wealthiest people with those of the less fortunate? The following days will somehow answer to several of these questions.

Saca seems a little intransigent when it comes to deal with his relation with the FMLN. In his speech, he declared that he had a good disposition to establish a dialogue process with his adversaries. However, his warning was that: “one thing is a tolerant and an open minded President that intends to find a way to reach an understanding with a constructive opposition, and another thing is an intransigent opposition that might intend to extortion the President. Foolishness cannot be confused with needs”. The leaders of the left-wing party are called “obstinate” people with the intention to extort the noble President. On the other hand, the other opposition, the one that puts its demands aside, is greeted and invited to work with the government in order to face the different problems that the country has.

It is necessary to say that the statements made by Saca about the FMLN intend to become part of the internal debate of this party, and establish the differences between the reformists and the irremediable orthodox. He wants to take advantage of the party’s incapacity to renovate itself in order to disapprove of, beforehand, any initiative that might be different from the official purposes. Thinking about the next municipal and legislative elections, Saca places the people as the only judge that has to evaluate the behavior of the radical politicians that intend to prevent his good purposes from coming true for El Salvador.

This is both a sly and an unrealistic discourse. It intends to prepare the ground for the next elections without saying much, and to spread the word about how the adversary is not defending the country’s interests. The unrealistic aspect of this whole matter is that Saca intends to ignore the opposition by saying that he will not establish a dialogue with it due to its intransigent behavior. At the same time, he highlights the image of a basically irrelevant opposition for the first battle that he will have to win during the following days: the approval of the budget. The extortion that the President fustigates about is a political reality used by all of the political actors from all of the political systems. The capacity of extortion that a party has is determined by its power inside the legislature. And if some attention is paid to these parameters, the FMLN has the capacity to block any governmental effort that might intend to step over the interests that this party allegedly represents. That is why it would have been more of a prudent behavior, on Saca’s account, to offer a better attitude towards the left-wing party. In politics, no one ever wins by humiliating or discrediting the adversary. On the other hand, to favor the image of the other opposition is not a realistic step because it overlooks the true relevance of the actual power that this one has inside the national political game. The intention could be to encourage the reduction of the importance that the FMLN has inside the opposition. However, to create a negotiation strategy exclusively over some parties that do not exist seems to be a political tactic that will not succeed. Even if the Salvadorans voted massively for ARENA during the last elections, it is also true that the people voted for the FMLN as well, and that those voters turned their backs on other options that intended to replace the left wing.

The designation of a presidential governance commissioner seems to frame the importance of this issue in Saca’s agenda. In fact, this issue has been one of the most widely discussed subjects inside the political speeches of the country. The last annual encounter of the businessmen, called ENADE 2003, focused a great deal of attention on this subject, calling it one of the most important tasks of the country. In this case, it is understandable if the new president is concerned about it. However, his concerns about the governance issue should go beyond than what has been said at this point. This idea is sold as if it only depended on the attitude of an opposition that has always been condemned because of its alleged incoherent behavior and its lack of commitment towards the country. If this person who will represent Saca intends to keep facing this subject under the same perspective, it is very probable that she will not be able to get ahead with her agenda.

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Economy


Antonio Saca and the economic future of El Salvador

 

The new Salvadoran President, Antonio Saca, has problems that he has to confront together with all of the national sectors in order to build a new way to create economic policies, economic policies that should be different from the legacy left by the Flores administration.

The unresolved problems of Flores
The former President kept talking about the alleged achievements of his economic policy: the eradication of poverty, the creation of new jobs, stability, and economic growth. The media took the time to spread the word about the alleged benefits created by the privatization process and the dollarization established by Flores. Despite that the economic situation has followed a deterioration process, this situation has been hidden away from society in many ways. The things that have been left unsaid are the following:

1. The level of poverty was not reduced during the Flores administration. The evidence of all this is the investigations of the Development Program of the United Nations (PNUD, in Spanish), the Development Foundation (FUNDE), and the Economics Department of the UCA, among other studies, where a more complex reality has been revealed. The official figures presented by the government concerning the poverty level have followed obsolete and wrong methods which have overlooked the actual level of poverty in the country (See ECA # 663-664). The poverty level adjusted by inflation calculated by the Economics Department of the UCA presented an indicator where 53.5% of the Salvadoran homes are poor, while the official information indicated that only 36.8% of the homes live in poverty.

2. The unemployment level has not been reduced in the proportion indicated by ARENA. This report does not associate the country’s unemployment level with the accelerated growth of the number of people that travel to the United States in order to find a job and send money to their families (more than $2 million every year that represent almost two thirds of the currency that comes to the country). Once again, the questionable origins of the official statistics (such as the ones provided by the General Direction of Statistics and Census –DIGESTYC, in Spanish-) confirms what other investigations reveal: in an economy with a recession and a stagnated productive apparatus, especially inside the agricultural and the industrial sectors that have had decreasing growth rates, it is almost impossible to create thousands of new jobs with decent salaries (this excludes the governmental figures that include the maquilas in their reports, the job positions created there represent a set of precarious conditions, plus working schedules developed in inadequate conditions and without any benefits for a smaller wage).

3. The widely advertised economic openness has had almost no impact at all in the economic growth. At least four free trade agreements have already been signed (Chile, Mexico, the Dominican Republic, and Panama), and this has not actually transformed into a positive growth of the GNP indicators. In fact, the growth of the GNP has been one of the lowest in the last ten years because it has been kept in a rate close to 2%. While the GNP per capita is stagnated. The agricultural sector is depressed, and there are no possibilities to grow in the short or the medium term. In addition, a negative commercial balance has prevailed. An evidence of this is the negative balance of the free trade agreements signed with Mexico and Chile. They have revealed the decreasing level of competitiveness of our exporters, a miserable creation of jobs, and a poor attraction of new investments, among other problems.

4. The dollarization process of 2001 did not bring new investments either, contrary to the promises of the government. Precisely because of dollarization, the macroeconomic unbalance has grown worse since the monetary policy has disappeared and the reserves of the currency have been reduced.

5. The economic stability is a fallacy. The wrong direction that the public finances took has created and indebtedness that goes beyond the limits accepted by the international financial organisms, and this can put the entire performance of the economy in danger. In December 2003, the balance was $7,247 million, an amount that represents an increase of $838 million if compared with the balance of December 2002.

The challenges of Saca
In a context such as this one, the challenge that the new governmental administration has is greater than the one of the former administration: he has to respond to the population, not with more Neoliberal policies, but on the contrary, with structural solutions in order to put the less fortunate at the center of the economic planning instead of the business elite, as it usually has been done until today. For instance, the free trade agreements have not been designed to favor the micro, the small or the medium companies, but to favor the interests of the large corporations that have the necessary resources and the competitiveness to export its products. The pre-electoral rhetoric adopted the idea that his challenges basically have to do now with the social affairs; however, the successful social achievements cannot be accomplished if inside the governmental plans the interests of the economic elite come first and not the welfare of the citizenry.

The economic plan of Flores seemed to be a copy of the one created by FUSADES, which basically drafted the typical idea of an economic overflow that would come from the free market through a successfully supported business initiative, the good performance of the institutions, and the aid policies for the less fortunate sectors.

From this perspective, the transformations will be imperceptible in regard to the logic of the economic policies of Flores. We are at the door of the free trade agreement with the United States in 2005, and other similar agreements will be the goal according to the press, such as the one with the European Union and with Taiwan. It will be once again an open market policy against the growing vulnerability of the productive sectors and the human development indicators of the population.

Since the social policy will be the strong feature of the new government, according to President Saca, that initiative will have to be financed somehow. The purpose of the Saca administration is to promote the social charities in order to alleviate its political explosiveness. However, with the growing indebtedness of the State and a decreasing general budget (which has not been approved yet), an expansive fiscal policy will be limited, since the country does not generate enough income. In order to reduce that restriction of the budget, one of the already announced options (announced between the lines) by the Saca administration (following the recommendations made by FUSADES) will be to increase the regressive taxes, such as the IVA (the Added Value Tax), from 13% to 15%. This will have an impact on the increasing cost of living and on the pauperization of considerable sectors of the population all over the country, especially in the rural areas.

In summary, the challenges that Saca has, that is, to reduce the gaps created by poverty and inequality, the weak index of economic dynamism (including the support to the depressed exportations), the reduction of the immigration levels and the unemployment levels, the increase on the investment on human resources, the creation of sustainable development programs and long-term projects for El Salvador, are a complete menu of economic policies that will demand the modification of the ones adopted by ARENA. The detonating device of this change is clear: the increasing weight of the public debt and the growing need to apply progressive fiscal policies for the literally abandoned sectors (such as the agricultural sector, the environmental problems, education, health, housing, and the access to water, among other aspects). How to resolve this contradiction without changing the development model that has been followed to this day? Probably no one knows that in ARENA.
 

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