Political parties and civil society

The FMLN, a project on the verge of shipwreck

Reactions to the law governing free-trade zones

News Briefs

POLITICAL PARTIES AND CIVIL SOCIETY

A democratic regime revolves around two fundamental centers: the state and civil society. Nevertheless, in and of themselves they constitute two spheres, each separate from the other, the first under the aegis of the logic of control and order and the second by the logic of demands and the existence of a disruptive presence. In order for a democratic order to come to life, each one of these spheres of social reality must empower itself in its most essential dimensions: the state must do it at an institutional level; civil society must do it at an organizational level.

A strong state is a state that has fully institutionalized its basic functions, that is to say, governed by a normative rationality expressly assumed and implemented by those who make up its institutions. The absence of a normative rationality, or the absence of an effective practice of a normative rationality, weakens the state inasmuch as it allows for the free exercise of discretion by its high-ranking functionaries who may see in the absence of norms, or in their inoperability, the possibility for governing the destinies of the institutions which have been entrusted to them by implementing their own subjective decisions because they conceive of themselves as proprietary owners of a good which they have inherited.

A strong civil society is one which is endowed with organizational formations sufficient to permit the expression of the interests of individuals and groups which make it up and which allow them to make their demands heard and felt publicly. Nothing weakens civil society as much as the apathy of citizens for joining in specific interest groups or the dispersion of efforts which many times are the result of excessive individualization of demands. If the first leads to socio-political immobility —which is in and of itself dangerous because it passively accepts things as they are—, the second leads to a dispersion of efforts —which is also dangerous in that the demands which ought to have been channeled collectively are posed in an individual way, and this causes an inevitable waste of strength.

Given this, for the empowerment of civil society to move forward, above all, in the formation of intermediate organizations —such as neighborhood, professional, university, religious, youth, women, market sellers, homosexuals, lesbians and prostitutes, etc.—; and, in second place, for the coordination of efforts and the reciprocal support among these groupings in an effort to achieve common goals, when there exist, or to empower the position of each one of these at the moment in which a specific good or service is demanded.

A strong state and civil society, in the sense indicated above, are necessary conditions for a democratic political regime to come alive. But this is not enough because the presence of an intermediate form is necessary, and this is precisely that which serves as a bridge between both. This formation which acts as a mediator is the political system, the basic function of which is to serve as a transmission belt for social demands vis-a-vis the state. That is to say, the political system and its constituent elements —the political parties— not only serve as filters for the demands of civil society —which are continually growing and evolving in more and more complex ways—, but also channels them in an adequate direction. Adequate for what? Adequate for a response on the part of the state to social needs which must be firmly supported on the basis of signals that present themselves through or by means of the political system and political parties. These are what link those two such disparate and separate worlds, with such dissimilar logic, as the state and civil society.

The result is a democratic political order which is built upon three basic centers: a strong state (guided by a clearly defined institutional rationality), a strong civil society (with sufficient levels of organization and interrelationships among its group formations) and a political system capable of serving as an intermediary between both poles. As Alain Touraine says: "it is therefore necessary that the two worlds —the state and civil society—should remain separate and be equally united the one with the other by means of political leaders who serve as representatives". The political system —i.e., the political parties and their leaders—, in order to carry out this mediating function, must be "representative", that is to say, they must be able to express social interests in all of their diversity and complexity. If this requisite is not complied with, the political system will be far from able to transmit to the corresponding state formations the demands which arise from the society.

Nevertheless, the ability to represent in order to guarantee that the political system will carry out its function fully is insufficient. Parallel with this, it must comply with other, much more basic, but by no means less important, requisites. The first has to do with the minimal educational level which political cadres must have, especially those who occupy leadership positions in the parties. Ignorance (oftentimes extreme ignorance) or the manifest lack of capacity to engage in the most elemental social, economic or political analysis does not contribute in any way and, in fact, sets serious limits, to the intermediary function which ought to be a characteristic of the political system.

The second requisite has to do with the proven public and private honesty of those who engage in political activity. Political figures with a personal history darkened by fraudulent activities or who have never hidden their leanings towards crime prefigure calamity for the parties which give them shelter and protection, and this, by extension, prefigures a perversion of political practice itself.

Lastly, a requisite which cannot be forgotten is that which points towards the formation of leadership structures inside the political parties; that is to say, mechanisms for election and redirection of party mandates. These mechanisms, in order to empower the political system, must be democratic mechanisms: this is to say that they ought to be guided by norms and procedures which make it possible for the bases of the parties [the rank and file] to renew and replace party leadership by means of internal voting procedures. In other words, what must be eradicated is the conception—so nefarious for democracy—that the party leaderships are the owners of the political parties.

THE FMLN, A PROJECT ON THE VERGE OF SHIPWRECK

After all that has happened, few doubt that the FMLN is a ship that is foundering and taking on water at an alarming rate. The idyllic beginning of the process of electing a presidential formula has culminated during recent weeks in a bitter collision between the two tendencies which make it up: the "revisionist" and the "orthodox" tendencies. This is true to such an extent that even the leaders of the FMLN have given up insisting that the process in which they are immersed is something other than an internal struggle between the forces of these two tendencies within that party.

The revisionist versus the orthodox tendency is, plainly and simply put, what defines the party, for now —a party which, at one point in time, demonstrated a good probability for replacing ARENA in the nation’s presidential seat. Nevertheless, the failure of the FMLN cannot be seen to reside, as some analysts have wished us to think, in the poor level of democracy which the election of the presidential formula demonstrated; it resides, rather, in the kind of response being sought in order to provide an escape from the quagmire into which the party has fallen. It is true that the tremendous organizational errors and the errors which have been committed and which continue to be committed in the national conventions and in the meetings of the National Council leave the FMLN in a one down position as it faces the electorate; but the principal faux pas has been to aim to clean up the internal party dynamic by committing a crass external error —an error which could reduce that party’s electoral possibilities to an even greater extent.

With the aim of amicably settling the disputes which led Drs. Hector Silva and Hector Dada to abandon the race for one of the positions in the presidential formula in a less than decorous manner, those heeling to the revisionist line have presented their last card of the game: the nomination of Mr. Facundo Guardado, leader of the revisionist tendency, together with Ms. Marta Valladares as a formula to compete with the Drs. Avilés-Arias, the couple proposed by the orthodox tendency at the party’s convention which will take place next Sunday. Being, as the FMLN members say, the first "pure blood" cadres —alluding to Messrs. Guardado’s and Valladares’ historic membership in the FMLN— they can be said to be removing the danger of a frontal rejection by the rank and file of the FMLN, setting firmly the bases for finally achieving consensus in a formula which could reunify the FMLN.

With this new movement inside the party, the struggle between the tendencies seems to be amenable to an interpretation in which there is no longer a dispute for who can unlawfully maintain the power in the FMLN, but, rather, a dispute for who, by means of his or her historic roots in the formerly armed left project, can best represent it before the party’s rank and file. So it is, then, that what the leaders of the party seem to be suggesting is that what obstructed the path for Silva or Dada in achieving a position in the formula was not the pole from which their postulations originated, but rather the poor linkage which both can claim to the bloodlines of the left royalty.

On this point, then, the FMLN’s confusion deepens. However, the process for the election of the presidential formula aims to present itself, the leaders of the party seem also to have fallen into confusion over something fundamental vis-a-vis the 1999 elections: that the result of the process —the final choosing of the definitive formula— will not necessarily satisfy a rank and file profoundly divided and confused but may enjoy success when it faces an electorate which, tired of traditional politicking, might embrace in apathy any political candidate representative of a hard party line.

The way things are being handled, the obvious —the assumption that what is good for the internal dynamic of the FMLN, per se, is not necessarily good for its external dynamic— is not evident to the leadership of the FMLN. Whether rooted in their own drunkenness for power or rooted in the distance which separates them from the political reality of the country, both the orthodox and revisionist tendencies are currently in such an obscure and disturbed state of mind as to attempt to resolve their disputes through electoral suicide.

One of the essential elements for the reasons why the FMLN won the mayoral election was the presentation of a candidate that, in the eyes of the electorate, was not directly linked to the rancid left tradition but was surrounded by a team made up of apparently apolitical professionals. Ability, novelty, freshness, but not purity, were the keys which brought victory to the current mayor. This experience, at the present time, is being thrown out the window in an effort to elect a presidential formula which, for its purity, will be politically anachronistic and inefficient.

It is, of course, possible that the direct participation of Mr. Facundo Guardado in the turmoil of the FMLN might finally resolve its serious internal polemic, but his participation will offer nothing towards the necessity for creating a strategy which might succeed in penetrating the citizenry’s lack of belief in personalities already deeply blemished by traditional politics. On Sunday, the FMLN will probably resolve its feuds once and for all and succeed in making a pact between its warring tendencies. This, at least, will lay a foundation in such a way that, faced with a bleak electoral future, the orthodox and revisionist tendencies can console themselves mutually and lament their errors in unity.

REACTIONS TO THE LAW GOVERNING FREE-TRADE ZONES

The effects of the recently approved Law Governing Free-Trade Zones has been the object of intense debate during recent weeks, principally because of possible repercussions on the national productive sector. The objective of this law is to permit the sale of 100% of production by maquila (runaway shops) businesses and it has provoked a variety of reactions among deputies, representatives of private enterprise, government and even among government functionaries themselves.

While some may affirm that the new law will be beneficial to the country’s economy, others maintain that it will only provoke the collapse of numerous businesses in the industrial, agricultural and industrial sector. What is certain is that the new Law Governing Free-Trade Zones marks an important change in relation to previous laws which contemplated only the production of the businesses located in free-trade zones exclusively engaged in exportation.

The intention is to promote the sale on the domestic market of what is produced in the businesses located in free-trade zones; this, however, is a qualitative leap which ought not simply to be accepted, in the same way that free-trade zones were introduced at the beginning of the 1970’s. There are two basic reasons for this: the sale on the domestic market of this production might imply the submission of national producers to unfair competition; and, in second place, it would presuppose pushing the concessions granted to foreign investment to the limit, suggesting, with this, that the only way forward towards development is by entirely eliminating the barriers against the entry of foreign products and businesses.

It should not come as a surprise, then, that the law has occasioned contradictions between, say, the appreciation offered by the Ministry of the Economy and that offered by Ministry of Agriculture and Livestock (MAG, for its initials in Spanish) concerning the possible effects on national enterprises. So it is that Mr. Eduardo Zablah, the Minister of the Economy, maintains that the law under discussion "does not affect the national producer". By the same token, however, Mr. Zablah was obliged to accept the possible negative effects that the application of the law could have on the sugar cane sector as well as on small and medium-sized businesses.

Mr. Ricardo Quiñonez, the Minister for Agriculture and Livestock, for his part, publicly declared himself in favor of introducing reforms to the law because, in its current state, it would provoke negative effects on the small and medium-sized industrial enterprises, as well as on the agricultural and livestock sector. The most impressive arguments by MAG are, however, those related to violations of clauses in the General Agreement on Tariffs and Business (GATT, for its initials in English).

With respect to these arguments, MAG maintains that the fact that the law contemplates the provision that the products used in the free-trade zones must contain a minimum of 50% of raw materials which must be obtained regionally, a provision which contradicts Article 3 of the GATT, which establishes that "taxes…as well as laws and prescriptions which affect the sale, purchase, transport or use of products in determinate proportions ought not to be applied to imported or national products in such a way as to protect national production". Curiously enough, what actually occurs is very much to the contrary because proportions and percentages of raw materials are imposed precisely in order not to leave national production totally unprotected. From the observation made by MAG, what unfolds is that what ought to be eliminated is the requirement that 50% of raw materials, with which proviso, then, national production would be left even more unprotected.

In another order of things, in MAG’s judgement, the new law proposes to grant tax incentives for maquila enterprises in such a way that these would find themselves enjoying a clear advantage in relation to similar enterprises in the country, but outside the free-trade zones. Specifically, Articles 11,14,17 and 19 of the law under discussion propose tax incentives which, according to MAG, contravene once again international agreements which aim to progressively eliminate subsidies before the year 2003.

MAG’s arguments, although in appearance aimed at protecting domestic producers, seem rather to reflect, oddly enough, a posture which seeks to eliminate any kind of protection for national producers. These, nevertheless constitute an open criticism against the formulation by the Ministry of Economy, which, for its part, limited itself to indicating that the arguments directed at MAG are not valid because MAG interpreted the agreements out of context given that the free-trade zones are a special case which still has not received specific treatment in the GATT agreement.

The most important point of this law ought not to be whether it violates international agreements or not, but, rather, how it is going to contribute towards the development of the country. The criterion of associations such as the Association of Medium and Small Enterprises, the National Commission of Very Small and Small Enterprises, the Chamber of Commerce for Agriculture and Livestock and the Sugar Producers Association is that the law under discussion might cause the closing of businesses involved in textile activity (which, for now, is the most widespread in the free-trade zones) and might even affect the sugar-producing and processing sector, given that it could give rise to businesses inside the free-trade zone who might be disposed to buy their sugar on the foreign market and diminish, in this way, the demand for national products, which would, in turn, affect income to the sugar cane producers and processors.

In fact, during recent days, speculations on this topic provoked frustration of the sale of a state sugar processing mill owing to the fact that the profits of this processing mill would be clearly threatened by the new law. So it is that some versions indicate that if, with the new law, the industrial consumers of the product could import sugar (even if it were 50%) then the sales of the local sugar mills would be lowered together with their profits. It is, probably for this reason that, after two days at auction, not even a fourth of the shares of the mill could be sold, in spite of the fact that only a few weeks before there had been great expectations of a total sale to four groups of investors.

Other criticisms have been forthcoming from the Salvadoran Foundation for Economic and Social Development (FUSADES, for its initials in Spanish), who maintain that Article 204 of the law is unconstitutional because it aims to grant fiscal exemptions without consulting the respective Municipal Councils. Moreover, FUSADES affirms that the law creates a possible loophole through which enterprises in the free trade zones might succeed in evading the payment of the tax on the Transference of Goods in transactions for the purchase of raw materials.

As might be noted, there exists a mosaic of criticisms of the new Law Governing Free-Trade Zones which justifiably take note of its harmful and injurious provisions. Although it might be argued that the law might attract greater foreign investment and generate more jobs, one should also not omit to mention that it would provoke a reduction in investment and jobs in national businesses.

This kind of law suggests that it is already the case that the government does not serve the interests of the domestic class of businessmen, as it has in the recent past with the promulgation of laws which would favor coffee, cotton, industrial and financial activities. On the contrary, the laws totally ignore the effects on national production in an effort to promote foreign investment. This policy, in reality, is not a new one and is found embedded in other judicial instruments such as the law for the protection of intellectual property and the law for the regulation of transport, warehousing and distribution of petroleum derivatives.

Even so, as part of the process of questioning the law, the government ought to reflect on the necessity for developing public policies which would be centered on the expectations of development in national, domestic productive sectors and not on speculative investments which favor "fiscal vacations".

FMLN. Dr. Victoria Marina de Avilés and Dr. Salvador Arias were official proposed as presidential candidates for the FMLN on September 20 by the San Salvador section of that party. The decision was taken during a departmental convention where 416 votes were cast in favor, two abstentions were registered and zero votes cast against the proposed candidacy. Given this, the leader of the San Salvador departmental section, Mr. Miguel Saenz, declared his satisfaction and, at the same time, explained that the ordinary convention meeting was held in compliance with instructions stipulated by the superior leadership bodies of the FMLN at the convention held on August 29. The official proposals from each department will be presented to the Political Commission which, in turn, will present them to the National Council (LA PRENSA GRAFICA, September 21, p. 8).

PDC. Concerning the sudden candidacy of Mr. Rodolfo Parker for the PDC, Mr. Ronal Umaña, Secretary General of that party, affirmed that his election was owing to the need to present a "young, academic, successful businessman, with a presence in society". Mr. Parker, indicated Mr. Umaña, accepted the candidacy when it was presented to the Political Commission and after the National Directorate had approved it. The candidacy of Mr. Parker is a result of the fact that the PDC does not want to present politicians, stated Mr. Umaña. "He is a Christian person, a democrat and accepts the social economy of the German market," he argued (LA PRENSA GRAFICA, September 21, p. 14).

INCREASES. Local telephone bills could reflect an increase with the proposal to broaden the coverage and better the services of the wireless telephone company, according to explanations presented by the President of the Telecommunications Company of El Salvador (CET), Mme. Dominique Saint-Jean. "In order to survive in a competitive market and be the preferred provider for [telephone] users, France Telecom must offer better services…the users will have to pay for the quality of service which is being offered to them because everything in life has a price", she argued. Moreover, she explained that costs for international calls would have to be lower, although she specified neither percentages nor dates for the regulations and their implementation. Mr. Enrique Hinds, Minister of the Treasury, declared that the price for local calls would not suffer an increase because competition would not permit it. On the other hand, functionaries of the Superintendency for Electricity (SIGET, for its initials in Spanish), said that the rates for telephone service would remain frozen until the year 2002, at the same time as they declared that they could be modified only with the authorization of that organism. Article 8 of the Law Governing Electricity and Telecommunications specifies that the rates are frozen and that, should they be increased, it would be at the same percentage that is provided for in the Index for Consumer Prices (IPC, for its initials in Spanish) (EL DIARIO DE HOY, September 19, p. 26).

ZABLAH. Faced with the conflict arising from the removal of the Departmental Directorate for the ARENA party in La Libertad, the director of that body, Mr. Mauricio Zablah, expressed his discontent with that state of affairs and accused Mr. Mario Acosta Oertel, Minister of the Interior, of being behind the removal and of being responsible for causing a lack of unity in the party. Mr. Zablah declared that the root of the problem is that the National Executive Council of ARENA (COENA, for its initials in Spanish) had not sent any notifications indicating "bad work" or any other anomaly. According to his statements, the COENA has mentioned some negative polls which count against him, but that there has been not a single specific element which would warrant his removal. Likewise, he declared that, behind Mr. Alfredo Cristiani, who signed the letter calling for his removal, there exist other persons who "have his ear, as it were. They say negative, but not positive, things". In his judgement, these persons belong to the Departmental Council for Santa Tecla. "There are personal interests, serious interests, such as those of Minister Mario Acosta", he continued. The decision of the COENA, for Mr. Zablah, results from "an authoritarian line which is outside the institutionality of the party". "I do not want to be confrontational, and for this reason I do not wish to mention names. I did not want them to remove him…I say this sincerely, because I do not want to continue entering into problems with the Minister, because I am as violent as he is. I will not allow him to step on me", he stated (LA PRENSA GRAFICA, September 19, p. 10).

ARENA. The ARENA Departmental Director for La Libertad, Mr. Mauricio Zablah, refused, on September 18, to obey a request to leave his post, together with the rest of the leadership body, arguing that there are no explanations which would justify his removal. The petition was presented on August 19 by the National Executive Council (COENA, for its initials in Spanish) by means of a letter signed by the president of the party, Mr. Alfredo Cristiani. On the basis of that letter, Deputy Walter Araujo declared that "it is not a question of getting rid of anyone; on the contrary, [it is a question of] empowering new elements in the party". For his part, Mr. Zablah expressed the following: "let them tell us why they have called upon us to leave our positions, because we have not been informed whether they are going to swear in a branch of the local so that we will have a new leadership body". According to his statements, "this demonstrates a lack of ethics, and is a lack of respect for these people’s human rights". Nevertheless, Mr. Cristiani declared, during the swearing in of the San Salvador Departmental Directorate, that the COENA is not fighting with anyone, "even less so with another member of the ARENA party….a good ARENA party member should never speak ill of another party member". Mr. Cristiani said that the party is pleased with the "outgoing directorates", among these, Mr. Zablah, but that, for the 1999 elections, the Departmental Assembly for La Libertad needs people who will "do things a little better" (LA PRENSA GRAFICA, September 18 and 19, p. 8).