Tag: MCC
Environment, Partnership for Growth, U.S. Relations
¿Desarrollo para el país o el país por el desarrollo?
October 22, 2014 voicesontheborder
The University of Central America (UCA) in San Salvador just ran a program on the recent signing of the second Millennium Challenge Corporation compact between the United States and El Salvador. The program looks at the benefits proposed by the Salvadoran Government and the fears expressed by communities in the Bajo Lempa and San Juan del Gozo.
The program features Voices’ Field Director Jose Acosta, and many of our friends and partners in the Jiquilisco Bay region of El Salvador.
The 25-minute video is in Spanish only right now, but we will be working with AudiovisualesUCA to add subtitles and we will post it as soon as its ready.
We are writing up an analysis of the second MCC-FOMELINIO Compact that we’ll post soon.
Tagged AudiovisualesUCA, El Salvador, FOMELINIO, Jose Acosta, MCC, Millennium Challenge Corporation, UCALeave a comment
Climate Change, El Salvador Government, Environment, Mining
MOVIAC Environmental Reflections
September 30, 2014 voicesontheborder
This morning, the Movement of Victims Affected by Climate Change and Corporations (MOVIAC, in Spanish), published a two-page statement in Diario Co Latino on pending environmental issues in El Salvador – the Pacific Rim claim in the World Bank tribunal and the proposed ban on mining, Climate Change and the current economic model, the recent signing of the Millennium Challenge Corporation grant, and the Legislative Assembly’s failure to recognize water as a basic human right. MOVIAC wants the new Sánchez Cerén administration and the Legislative Assembly to be doing way more than they are.
Voices staff translated the MOVIAC statement to English and have attached it below along with the original in Spanish. (We will update this post with a link to the digital copy of today’s Co Latino when it is available.)
Tagged Bajo Lempa, Cabanas, Climate Change, FOMELINIO, MCC, Mining, Monsanto, MOVIAC, Pacific Rim, Sánchez Cerén, waterLeave a comment
Environment, Tourism
U.S. and El Salvador Ready to Sign Second MCC Compact
Beach in Corral de Mulas on the San Juan del Gozo Peninsula. Behind the fence is an incubator for critically endangered sea turtles. The land is owned by a wealthy investor who is allowing locals to incubate the sea turtle eggs until he is ready to break ground on a tourism project.
After more than a year of delays, the governments of El Salvador and the United States seem ready to sign a second Millennium Challenge Corporation (MCC) compact. Last weekend, Salvadoran President Salvador Sanchez Cerén said they would close the deal on September 30th.
The U.S. Embassy says the second MCC compact, which includes $277 million from the U.S. and $88.2 million from El Salvador, will “spur investment through public private partnerships and better regulations, improve the quality of education, and strengthen key logistical infrastructure.”
After the agreement is signed, the U.S. will disburse $10 million to FOMELINIO (the Salvadoran organization managing the grant) to lay the groundwork for MCC projects. From then it will take six to nine months before other funds will be released and projects can begin.
While the $277 grant from the U.S. is popular among Salvadorans and politicians, communities in the Jiquilisco Bay of Usulután remain strongly opposed to the aid package. They believe the MCC grant will help finance the destruction of the region’s fragile natural resources and agrarian culture.
As Voices has discussed elsewhere on this blog, developers want to use MCC funds to promote tourism along the coast. They are particularly interested in the Jiquilisco Bay, which they have proposed turning into the “Cancun of Central America.” The communities targeted for development argue that large-scale tourism projects will cause irreversible harm to the mangrove forests they rely on for their survival and beaches that critically endangered sea turtles use for a nesting ground.
A community leader speaking to a group about how land speculation and tourism projects are already affecting the health of the mangrove forests and destabilizing the community.
Hundreds of families in the Bay region make their living by fishing and harvesting crab. For generations they have cared for the mangroves and beaches, protecting them and taking only what they need to survive. In theory the Ministry of the Environment is supposed to enforce laws that protect the forests and the right for local communities to harvest what they need to survive. But residents say the State does not get down there much, and few have faith in the Ministry’s ability or willingness to enforce laws.
Community leaders emphasize that they are not against tourism; they welcome visitors who want to tour the mangrove forests, bird watch, and even surf. They are opposed only to the kind of large-scale, unregulated development that investors are planning for the region.
Most of the opposition to MCC is due to the complete lack of public consultation. Community leaders are quick to point out that MCC and FOMELINIO officials have never been to the region to discuss development priorities or what is at stake when investors talk about turning the Jiquilisco Bay into the Cancun of Central America.
Manuel Cruz, a representative of El Chile, says his community is united in their opposition to the MCC grant. He says MCC or FOMELINIO representatives have never come to the region to discuss the grant, much less ask how it might benefit (or harm) the region. All they have heard is that investors want to use funds to develop tourism and that land speculators have been acquiring land all around them, denying access to mangrove forests and beaches that are supposed to be public land.
Another community leader who wishes to remain anonymous says that the closest thing to consultation he knows of was an informal conversation he had in March 2013 with a supporter of the MCC grant. The supporter, who works for an international NGO, said his community had to support the MCC because opposing it would be going against the FMLN party, for which there would be consequences. The community leader ignored the threat and his community remains united in its opposition.
Jose “Mario” Santos Guevarra, representative of the United Communities of the Bajo Lempa and the President of MOVIAC, has voiced opposition against MCC and FOMELINIO on several occasions. His concerns also focus on the lack of consultation from MCC and FOMELINIO. He argues that if MCC and FOMELINIO were really interested in building infrastructure and had consulted with the people, they would know that one of the biggest barriers to economic growth along the coast is the poor condition of the levees along the Lempa and other rivers.
Mario and many others see the lack of consultation as an indication that the MCC grant is meant to benefit rich investors – creating conditions for them to extract value out of the coastal region. He says that if the MCC was to benefit the people, it would not require a $100,000 counterpart to access grant funds. In theory, communities like El Chile, La Tirana, and others could apply for MCC funds to finally install potable water systems or connect to the electrical grid, which they need. But they are unable to front the $100,000 needed to receive MCC funds.
Residents of Chile during a recent meeting to discuss tourism and the impact of land speculation on their ability to access mangrove forests.
Over the past year and a half, Voices staff has shared these concerns over the lack of consultation with policymakers at the U.S. Embassy in San Salvador. We have extended at least three invitations to host meetings between Embassy staff, who have a role in the MCC grant, and coastal communities. The Embassy has declined each of these invitations.
According to newspaper articles, $110 million of the MCC grant will be used to expand a section of the Litoral Highway between the airport and Zacatecaluca. Another $100 million will be for education. That leaves another $155.2 million to cover administrative costs and support tourism and other development. Communities in the Jiquilisco Bay have not had a voice in the MCC planning or approval process, and it is unlikely that that they will have a voice in deciding which proposals for MCC projects get approved. That does not mean, however, communities are going to allow developers to destroy their mangrove forests, beaches and agrarian way of life. They will be paying close attention to how MCC and FOMELINIO use the funds and ensure none will be used to harm their fragile ecosystems.
Tagged beaches, El Chile, El Salvador, FMLN, FOMELINIO, La Tirana, mangroves, MCC, Montecristo, MOVIAC, San Salvador, Sánchez Cerén, sea turtles, Tourism, U.S. EmbassyLeave a comment
Advocacy, agriculture, El Salvador Government, U.S. Relations
Jiquilisco Bay Communities Oppose U.S. Embassy Threats AND the MCC Grant
July 2, 2014 voicesontheborder
This week, U.S.-based organizations working in El Salvador published a letter opposing the U.S. State Department’s threats to withhold a $277 million Millennium Challenge Corporation (MCC) grant over a possible violation of the Central American Free Trade Agreement (CAFTA). Sixteen U.S. Congressmen signed onto the letter and sent it to the U.S. Department of State, sharing their concern over the controversy.
At issue is a seed distribution program for which the Ministry of Agriculture (MAG) purchases seed corn and beans from Salvadoran cooperatives and distributes to more than 400,000 small farmers. The program is a huge benefit to rural families and the 17 agricultural cooperatives that supply the seeds. The U.S. Embassy argues that the MAG violates CAFTA by not allowing international seed producers participate in the procurement process, buying seeds only from Salvadoran producers. The Embassy will not release the $277 million grant until El Salvador is in compliance with CAFTA.
Jose Santos Guevarra (aka Mario) in a community meeting to discuss MCC and tourism issues
Voices on the Border, at the advice of our Salvadoran partners, did not sign the letter published by the other solidarity organizations for one simple reason. Communities and organizations in the Jiquilisco Bay oppose the $277 million MCC grant and believe the outrage over the seed program, while justified, fails to address a much bigger issue – the MCC fund will destroy El Salvador’s coastal environment and agrarian way of life.
Yes, the Embassy’s complaint about the seed program is wrong. But the impacts of the $277 million MCC grant will be worse. Here’s why:
1. FOMELINIO will fund large-scale tourism development in the Jiquilisco Bay, causing irreparable harm to the region’s fragile mangrove forests, beaches, and agricultural lands, and drain the El Salvador’s scarce water resources.
2. MCC and FOMELINIO (the Salvadoran counterpart to the MCC) have never considered how the projects they are funding will affect the targeted communities. Jose Santos Guevara, resident of La Canoa and President of MOVIAC, makes this point well. “During the design phase of the FOMELINIO [proposal], they did not consult [the communities] with respect to the type of projects needed for the development of the communities. We have a series of proposals aimed at reactivating production in the region – the construction of levees, improving roads and drainage systems. However, none of these were incorporated into the proposal that the Government of El Salvador sent to the MCC.” The only people consulted were private investors and others with financial or political interests in the outcome of the proposal.
3. In order to have a project proposal considered for MCC funds, an applicant must be able to invest at least $100,000. There are no communities or community-based organizations that are able to front those kinds of funds meaning the only people who can develop projects are outside investors.
4. There has never been a public discussion or debate about the content, objectives, and impacts of FOMELIO projects. State institutions control the information about plans and projects, releasing only vague statements to the media when it is politically expedient.
Over the past couple of years the U.S. Embassy has used the $277 million MCC grant to get El Salvador to adopt several laws and policies that promote corporate interests. Just last year the Legislative Assembly passed the Public Private Partnership Law, which the U.S. Embassy had made a prerequisite for approval of the MCC funds. The Embassy, however, did not like a couple provisions in the final draft of the law and are requiring reforms before they will release the MCC funds. The U.S. Embassy also made reforms to the Law on Money Laundering a requirement for receiving MCC funds. And of course, the Embassy is requiring the MAG to reform the seed program so that international seed producers like Monsanto can compete for contracts alongside Salvadoran agricultural cooperatives.
Just this week, Medardo Gonzàles, the Secretary General of the FMLN, said the government has done everything the Embassy wants, but it seems they will never be able to satisfy their demands. Yesterday, Danilo Perez, the Director of the Center for Consumer Protection, recommended that the Government of El Salvador reconsider signing the second MCC Compact because of all the U.S. Embassy’s conditions.
Communities and organizations in the Jiquilisco Bay see the reforms and MCC funds as a really bad deal – adopt pro-development economic policies so wealthy developers can receive financial support to take their land and destroy the region’s mangrove forests, beaches, and agrarian culture. They prefer that the Salvadoran government just say no to the MCC; maintain the seed program the way it is; and start pushing back on the pro-corporation economic policies being pushed through the Legislative Assembly.
Yes, folks in the Jiquilisco Bay are angry that the U.S. is trying to get El Salvador to change a seed program that provides so many benefits for so many families. But they are even more concerned about the long-term negative impacts that the $277 million will have on the region.
Tagged CAFTA, El Salvador, FOMELINIO, Jiquilisco Bay, Jose Santos Guevarra, MAG, MCC, Medardo Gonzales, Ministry of Agriculture, Seed Distribution Program, U.S. EmbassyLeave a comment
Economy, Partnership for Growth, U.S. Relations
The Price for a $277 Million MCC Grant
June 18, 2014 voicesontheborder
Since Sanchez Cerén became the President of El Salvador on June 1, his administration has said securing the $277 million Millennium Challenge Corporation (MCC) grant is a top priority. Vice President Oscar Ortiz said they want to get it done within their first 100 days in office, which means within the next three months.
The MCC approved the grant in September 2013, but the US Embassy blocked the release of the funds until the government met conditions such as reforming the Public Private Partnership Law (P3 Law) and restructuring a popular seed program.
The P3 Law facilitates government contracts with private entities to provide public goods and services. The US Embassy made the P3 Law a prerequisite for the MCC funds but they don’t like the law passed by the Legislative Assembly. They don’t approve of the oversight role the Legislature created for itself – a committee that must approve all P3 contracts. The Embassy and business community also don’t like that the law exempts important public goods and services like water, health, education, and public security from public private partnerships.
One of the most vocal opponents of the P3 Law has been El Salvador’s labor movement. Unions fear that public private partnerships will result in a loss of jobs, decrease in wages, and even worse working conditions as private investors maximize profits. Other civil society organizations fear the P3 Law, even with the exemptions, will lead to the privatization of important goods and services – like water, health care, and education.
The US Embassy also doesn’t approve of the Seed Distribution Program operated by the Ministry of Agriculture (MAG). Officials argue the procurement process violates the Central American Free Trade Agreement (CAFTA) because the government only buys seeds from Salvadoran Farming Cooperatives, excluding international seed producers like Monsanto. The program provides thousands of jobs for people working for the cooperatives and ensures that more than 400,000 farmers have quality, non-GMO seeds.
Last week US Ambassador said that the Embassy’s problem was not with the seeds, but with the process. On May 2 Voices wrote an article arguing that the problem was not the seeds or the procurement process, but CAFTA.
The MCC program is popular with a lot of Salvadorans and politicians who see it as free money for development projects. But a growing number of environmentalists, unions, and communities argue that the Embassy’s conditions are too high a price to pay for development projects they don’t want anyway. And many see the conditions as an encroachment on El Salvador’s sovereignty.
Among those who oppose the MCC program outright are environmental groups and communities in the Jiquilisco Bay. MCC funds will support tourism development in the Bay and residents fear it will cause irreparable harm to mangrove forests, nesting grounds for the critically endangered Hawksbill sea turtle, and El Salvador’s most fertile agricultural land. (Voices has written about Tourism on this blog in the past – here are two reports we wrote on tourism in the Jiquilisco Bay).
Roberto Lorenzana, President Sanchez Cerén’s Chief of Staff said two weeks ago that the administration already has a draft Fomelinio Law (in El Salvador the MCC is called Fomelinio) that they will send to the Legislative Assembly soon. It’s unclear what is in the Fomelinio Law, but it likely contains all of the reforms the US Embassy is requiring for release of the MCC funds. Even before he became Chief of Staff, Lorenzana said the new administration is going to open the procurement process to national and international seed producers, in an apparent effort to satisfy the Embassy’s concerns.
While some Salvadorans have spoken out against the second MCC compact, the P3 Law and other neoliberal policies, many have not. The politics of opposing neoliberal economic policies grew more complex when the leftist FMLN party took office in 2009 and again on June 1, 2014. People and groups that organized against privatization, dollarization, CAFTA, and the first MCC compact (all policies adopted by the rightwing ARENA party between 1994 and 2008) have not been as critical since the leftist FMLN party took power. The result is that opposition to these destructive policies is less now that the FMLN is power.
El Salvador will soon get a $277 million grant from the U.S. Millennium Challenge Corporation, but it should be clear – this is not free money.
The 17 farming cooperatives that have been growing seed corn and beans for the MAG’s Seed Distribution Program will pay for the MCC grant when they have to compete with Monsanto and other international seed giants.
Communities that depend on the mangroves for their survival will pay for the MCC grant when developers cut down forest to build resorts and golf courses.
The Salvadoran labor force will pay for the MCC grant when private contractors take over government services and cut jobs and wages to increase profitability.
And all Salvadorans will pay if public goods and services like water, education, and health are contracted out to for-profit entities, especially if there is no oversight in the process.
Tagged ARENA, CAFTA, dollarization, El Salvador, FMLN, hawksbill sea turtle, Jiquilisco Bay, MAG, mangrove forests, Mari Carmen Aponte, MCC, Monsanto, Oscar Ortiz, P3 Law, Public-Private Partnership Law, Roberto Lorenzana, Salvador Sánchez Cerén, Seed Distribution Program, Tourism, US Embassy El SalvadorLeave a comment
agriculture, Economy, El Salvador Government, Food Security, U.S. Relations
Free Trade Threatens El Salvador’s Seed Distribution Program
May 2, 2014 voicesontheborder
Agricultural workers in the Bajo Lempa harvesting seed corn for the MAG’s distribution program
In recent months conservative groups and the U.S. Embassy in San Salvador have criticized a popular seed distribution program run by the Salvadoran Ministry of Agriculture (MAG). They allege the Ministry’s procurement of seeds violates section 9.2 of the Central American Free Trade Agreement (CAFTA) and lacks transparency.
Salvadoran farmers, however, argue that the seed distribution program provides real benefits to farmers and farming cooperatives, and that if there is a problem it is rooted in CAFTA and free trade.
Since 2004, the Salvadoran Ministry of Agriculture (MAG, in Spanish) has provided seed packages to small farmers in one form or another. The latest incarnation of the program is part of the Family Farming Program. In 2012, Vice-Minister Hugo Flores told the UN Food and Agriculture Organization that “after 20 years of neo-liberalism – a model that has neglected subsistence farmers, which total some 325,000 in the country, and left them in a situation of extreme poverty – a targeted approach had to be put into action given the lack of technical assistance for these sectors.”
Every year MAG buys beans and white corn seed, primarily from Salvadoran producers, and distributes them along with 100 pounds of fertilizer to peasant farmers. The seeds program amounts to a small agricultural subsidy of less than $100 per family, covering only part of the cost of producing corn and beans.
The program is very popular with the cooperatives that produce the seed and the small farmers who receive them. Will Hernandez, a member of the Nueva Esperanza Model Cooperative, told Voices on the Border, “the seed program has strengthened our cooperative, both economically and technically. Before it was just transnational corporations that had the capacity to produce seeds [on a large scale], now we also have the technical capacity.” In addition, the seed program generates employment in rural areas. Mr. Hernandez said that in 2013 the seed program resulted in $1.5 million in wages in rural communities, which is particularly important for thousands of peasant families.
MAG officials say the seed distribution program promotes domestic production of basic grains and food security for the population. They report the program resulted in a record 22.6 million bushels of corn and 2.7 million bushels of beans at harvest in 2013.
In April, MAG distributed more than 188,000 seed packages to small farmers throughout El Salvador. MAG officials plan to distribute more than twice that amount the first week of May to reach of total of 400,000 packages for the year, almost all small farmers in El Salvador.
In January, Vice-Minister Flores said that MAG will “prioritize domestic seeds and the importation of seeds will depend on the offers that we have. Last year we imported 8% of the seeds, because the cooperatives were unable to satisfy demand.” In fact, last year 17 Salvadoran Agricultural Cooperatives, three of which are located in the Bajo Lempa region of Jiquilisco, Usulután, supplied more than 91% of all the seed used in the MAG packages. The remaining 9% was from Guatemala and purchased on the Bolsa de Productos y Servicios de El Salvador (BOLPROS, in Spanish) market. The domestically produced seed cost the MAG $124 per quintal while the imported seed bought at the BOLPROS seed cost $132 per quintal. The domestic seeds used in the program are a specific hybrid and the MAG carefully monitors its quality.
The decision to buy domestic seeds was not just MAG’s. In December 2012 the Legislative Assembly passed Law No. 198, entitled the “Temporary Special Provisions for the Promotion of Certified Production of Corn and Bean Seed.” The law required that all seed used in the agricultural packages be purchased from Salvadoran farmers. Law No. 198 expired in December 2013, at which time the Legislature passed the Temporary Special Provisions to Promote the Production of Basic Grains, which governs the seed program this year. The new law allowed the MAG to purchase seed directly from Salvadoran farmers without going through an open bidding process or purchasing on the BOLPROS. The justification was that the Ministry did not have time to go through the procurement process and still have the seeds ready to distribute by April and May.
There are several reasons why it is more beneficial for the MAG to purchase seeds for the distribution program from Salvadoran cooperatives. As Vice-Minister Flores and Mr. Hernandez pointed out, the program invests in the technical capacity of farming cooperatives. Similarly, the money invested in the seed distribution program, $25 million in 2013, remains in the Salvadoran economy and generates jobs rural communities where they are needed most. Another benefit is that the domestic seeds in 2013 were $8/quintal less than the seed from Guatemala bought off the BOLPROS. This is likely due in part of the cost of transporting seeds from Guatemala to El Salvador. Another reason for contracting with Salvadoran growers is that the MAG can more easily monitor the quality of seed they are buying. The government works directly with farmers on producing hybrid seeds that are able to better withstand El Salvador’s increasingly extreme climate, which can present drought and floods in the same growing season.
Despite the economic and social benefits, John Barrett, an Economic Advisor for the U.S. Embassy, and Amy Angel, an agricultural economist with FUSADES, argue that requiring MAG to buy seed from domestic producers violates CAFTA. Section 9.2 of CAFTA requires the Salvadoran government to give domestic and international providers equal consideration and treatment when procuring goods and services. If the government wants to buy seeds or any other goods or services, Section 9.2 requires that it treat all interested vendors the same, without giving preference based nationality or country of origin.
Amy Angel and members of the ARENA political party also argue that the procurement process this year violated the Law on Acquisitions and Contracts for Public Administration (LACAP, in Spanish) and lacks transparency. Ms. Angel argues that Article 72 of LACAP requires specific conditions to be in place in order for the MAG to directly purchase seeds from the Salvadoran cooperatives, and that the seed purchases did not meet any of the conditions. She rejects the argument that the MAG did not have time to go through a formal bidding process. Ms. Angle says that even if they did not have time they could have gotten a third party to contract with buyers or just bought seeds off the BOLPROS, which would have made the procurement process transparent and CAFTA-compliant.
In January when the Legislative Assembly passed the Temporary Special Provisions to Promote the Production of Basic Grains bill, the rightwing ARENA political party accused MAG of ignoring LACAP and transparency norms in order to give “benefits to one of the FMLN businesses, Alba Alimentos.” Members of the leftwing FMLN party created ALBA in 2006 as a framework for working with the Bloivarian Alliance for the Peoples of the Americas, an economic trade alternative created by Venezuela. In April,Minister of Agriculture Pablo Ochoa reiterated that the reason for bypassing the formal procurement process was a time issue, and the claim that ALBA is at all involved in the seed program was a politically motivated claim that is untrue.
The seed program’s apparent violation of CAFTA is one of several issues that is currently holding up the release if the Millennium Challenge Corporation funds – a $284 million grant from the U.S. government to help develop El Salvador’s economy. While there is no indication that the U.S. government is planning to file a complaint against El Salvador over the program, John Barrett said “the seed issue is very important because it is an example of where the Salvadoran Government has to give confidence in how it will respect their obligations to free trade.”
According to Jose Santos Guevara, Coordinator of the Movement of Victims of Climate Change, the problem is not the seed program – it’s CAFTA. He believes the U.S. Government is using free trade to allow giant transnational organizations like Monsanto take even more control over El Salvador’s agricultural sector. Monsanto is the largest seed company in the word, controlling more than a forth of the global seed market. A few years ago Monsanto bought Semillas Cristiani Bunkard, the largest seed company in Central America, for more than $100 million, taking control of the regional seed market.
The United States, Central American countries, and the Dominican Republic all signed and ratified CAFTA in 2006. By 2011 U.S. exports to El Salvador had risen more than a billion dollars, a number the U.S. government says was low due to a spike in fuel prices. During the same period Salvadoran imports to the U.S. rose half that amount, resulting in a significant trade deficit that did not exist pre-CAFTA. More relevant to Salvadoran peasant farmers, in the seven-years between 2006 and 2013 U.S. agricultural exports to El Salvador doubled to $467 million. The US claims that under free trade they have increased its agricultural exports around the world by $4 billion. The U.S. maintains a trade surplus in agricultural products in part by ensuring that U.S. farmers, which receive large agricultural subsidies, have access to foreign markets and can compete in the kind of procurement opportunities like the MAG’s seed distribution program. While free trade has been good in allowing U.S. farmers to access to Salvadoran markets, it has been bad for the Salvadoran economy and the peasant farmers who are trying to survive and feed their families.
Every dollar (and it is dollars because in 2001 El Salvador traded the Colon for the U.S. dollar) that El Salvador spends on agricultural imports is a dollar that leaves the local economy and not invested in local farmers and agricultural workers. If MAG officials are forced to allow international producers to bid on contracts for the seed distribution program, it is likely to increase the trade deficit with the U.S even more. It will mean the 17 cooperatives that have been providing the seeds will lose their most stable source of income, and agricultural workers will loose their jobs.
Perhaps the MAG’s seed distribution program violates the Central American Free Trade Agreement, but that does not make it a bad program. It is just another reason why CAFTA and free trade are bad policies.
Tagged Amy Angel, Bajo Lempa, CAFTA, Cooperatives, El Salvador, Family Farming Program, Hugo Flores, Jiquilisco, John Barrett, MAG, MCC, Ministry of Agriculture, seed packages, UsulutánLeave a comment
El Salvador Government, Partnership for Growth
Bajo Lempa Rejects Latest Pressures from the U.S. Embassy over the Public-Private Partnership Law
In May, El Salvador passed a Law on Public-Private Partnerships (P3 Law) to facilitate foreign investment and increase the private sector’s role in managing and providing public services. The U.S. Embassy made the law a prerequisite for their approval of a second round of Millennium Challenge Corporation (MCC) funding.
The Legislative Assembly, led by the leftist FMLN party, passed the Law with reforms that exempt certain public goods and services from public-private partnerships. The public assets exempt include water, education, health care, and the prison system – all of which the government deems to important to contract out.
For a few months it seemed as though the passage of the P3 Law, even with the reforms, as enough to satisfy U.S. officials, and in September the MCC board approved a second round of funding.
Last week, however, Mari Carmen Aponte, the U.S. Ambassador, said that the Legislative Assembly would have to reform the P3 Law to take out the exceptions in order to get the MCC funds. The Embassy is also requiring that El Salvador have an anti-money laundering law in place.
Sigfredo Reyes, the FMLN president of the Legislative Assembly, responded to Ambassador Aponte’s new requirements saying that the pretentions that a person would impose such conditions on El Salvador that they would not adopt in their own country was unacceptable. He also stated, we are grateful that the government, or more the MCC has granted this second round of funding, as they call it, but the Salvadoran legislative branch moves to its own rhythm that Salvadorans determine.
Communities in the Bajo Lempa of Jiquilisco, Usulután responded to the Ambassador’s latest threats with the following statement (the original is in Spanish, with an English Translation below):
APROBAR LA LEY DE APP, FUE UN ERROR, REFORMARLA ES AGRABAR EL ERROR
Desde que surgió el proyecto de Ley de Asocios Público-Privado, las organizaciones sociales, sindicales, ambientalistas, de derechos humanos y campesinas, la rechazan debido a que los resultados serán: control transnacional de servicios e industrias estatales necesarias, incremento de los costos de servicios básicos, peores condiciones laborales para los trabajadores y la pérdida de ingresos para el Estado.
Durante el debate en la Asamblea Legislativa, los partidos llegaron a un acuerdo para proteger por lo menos varios bienes públicos, incluso el agua, la educación, la salud y los sistemas de justicia. También hicieron reformas importantes para garantizar más supervisión por la Asamblea. Estas modificaciones son positivas, pero no suficientes para evitar que bienes como el aeropuerto, los puertos, presas hidroeléctricas, carreteras y otros que actualmente son propiedad de todos los salvadoreños y salvadoreñas sean susceptibles de ser concesionados a empresas privadas; pero más grave aún es lo que puede pasar con las playas, los bosques de manglar y las reservas naturales.
Con la aprobación de la Ley de APP, El Salvador continúa asumiendo la receta neoliberal dictada por el Banco Mundial, El Fondo Monetario Internacional y el gobierno de Los Estados Unidos, principales “asesores” y promotores de esta Ley. A pesar que las medidas neoliberales fracasaron en todo sentido, las promesas de empleo y de crecimiento económico que acompañaron las privatizaciones, la dolarización y la firma del CAFTA-DR, jamás se cumplieron y en su lugar la pobreza, la violencia, el deterioro del medio ambiente y la corrupción se incrementaron.
A pocos meses de su aprobación la gran empresa privada y el gobierno de los Estados Unidos están presionando por introducir reformas en beneficio de los inversionistas, al respecto la Embajadora de los Estados Unidos en El Salvador, públicamente ha amenazado con detener el segundo compacto del FOMILENIO, si no se aprueban tales reformas.
Este chantaje viola la soberanía del pueblo salvadoreño. Son los y las salvadoreñas, no el gobierno de los Estados Unidos, quienes deben determinar la política económica de El Salvador. Por lo que ante las presiones externas de reformas a la Ley, es imprescindible que la Asamblea Legislativa reaccione y comprenda que aprobar la ley fue un error, introducirle reformas es agravar el error.
Las comunidades del Bajo Lempa, una de las regiones del país, principalmente afectadas con este tipo de leyes, claramente han manifestado:
La ley de asocios público privados y El Fomilenio II, han sido diseñados a partir de los intereses políticos de Los Estados Unidos y como tal se convierten en instrumentos de manipulación y dominación de nuestro pueblo, al mismo tiempo que destruyen los recursos naturales y generan división y conflictos entre comunidades. Además, expresan: Teniendo en cuenta que con la aprobación de la Ley de Asocios Público Privados todos los partidos políticos han perdido credibilidad, las organizaciones y comunidades del Bajo Lempa reiteramos una vez más nuestra determinación a defender la vida y el territorio hasta las últimas consecuencias.
Approving the Public Private Partnership Law was a Mistake, Reforming the Law Will Only Make it Worse
Since the beginning of the Public-Private Partnership Law project, social organizations, unions, environmentalists, human rights organizations, and peasant (campesino) communities have rejected it. They believe the law will result in the control of important state services and assets by transnational corporations; increase in the costs of basic services; worse labor conditions; and lost income for the State.
During the Legislative Assembly’s debate of the issue, the political parties came to an agreement to at least protect various public goods from the law, including water, education, health, and the prisons. They also inserted mechanisms to give the Legislative Assembly a greater supervisory role in overseeing public-private partnerships. While these modifications were positive, they were insufficient to ensure that assets like the airport, ports, hydroelectric dams, highways, and others that belong to the Salvadoran people but are now subject to concessions with private, for-profit corporations. The most serious results could be occur with the selling off of the beaches, mangrove forests, and natural reserves, which are currently targeted for tourism projects.
With the approval of the P3 Law, El Salvador continues to implement the neoliberal agenda dictated by the World Bank, International Monetary Fund, and the government of the United States, which is the principal advisors and promoters of the law. The neoliberal policies have failed the people of Salvador in every sense – the promises of employment and economic growth that were to accompany privatization, dollarization, and the signing of the Free Trade Agreement have never materialized. In their place, poverty, violence, deteriorating environment, and corruption have all increased.
A few months after the approval of the P3 Law, large private corporations and the United States govenrment are pressuring the Legislative Assembly to adopt reforms to the law that will benefit investors. The U.S. Ambassador to El Salvador, Mari Carmen Aponte, has threatened publicly to withhold the second round of funding from the Millennium Challenge Corporation if the Legislature does not pass the reforms.
This blackmail violates the sovereignty of the Salvadoran State and its people. Salvadorans, not the U.S. government, ought to be the ones who determine the economic policies of El Salvador. It is imparitive that the Legislative Assembly recognize these external pressures, and state that passing the law was a mistake in the first place, and introducing reforms would only compound previous errors.
The Communities of the Bajo Lempa, one of the regions of El Salvador most affected by these types of laws and the implementation of neoliberal policies, clearly states:
The Public-Private Partnership Law and the second round of the Millennium Challenge Corporation have been designed to benefit the political and economic interests of the United States, an as such have been converted into a tool of manipulation and domination of our communities and people, while destroying our natural resources and generating conflict between communities. We also state that with regards to the adoption of the Public Private Partnership Law, all political parties have lost credibility, and the social organizations and communities of the Lower Lempa once again reiterate our determination to defend our life and territory to the end.
Tagged Bajo Lempa, El Salvador, FMLN, Jiquilisco, Law on Public-Private Partnerships, Ley de Asocio Publico Privado, Mari Carmen Aponte, MCC, Millennium Challange Corporation, P3 Law, Sigfredo Reyes, U.S. Embassy in El Salvador, Usulután4 Comments
Advocacy, Tourism
Urgent Appeal! Help Protect the Bay of Jiquilisco and Bajo Lempa!
July 22, 2013 July 23, 2013 voicesontheborder
Communities in the Jiquilisco Bay and Bajo Lempa region of Usulután need your help protecting their invaluable, irreplaceable coastal environment and agrarian way of life. Developers are planning to build resorts, golf courses, and shopping centers in the region, and our local partners fear it will destroy their agricultural land, mangrove forests and the other ecosystems upon which they depend.
A small town nestled into the mangrove forests, but threatened by tourism projects targeted for the region
We at Voices need to raise $7,600 by August 2nd so we can help our partners develop a legal and political strategy to protect their land, launch a national advocacy campaign, and organize a small, eco-tourism alternative.
Plan for Large-Scale Tourism – Developers are planning large-scale tourism projects for the Jiquilisco Bay and Bajo Lempa region of Usulután. With support from the Salvadoran government they recently completed Phase One – building a highway out the San Juan del Gozo Peninsula and purchasing large tracts of land. They are now preparing to begin Phase Two – construction. The government is again supporting them by proposing that the U.S. Millennium Challenge Corporation provide financing. Yes, the Salvadoran government wants to give U.S. tax dollars to well-financed developers to build high-end resorts.
Protecting the Local Environment – Communities in the region have simple goals – food security and environmental sustainability. They celebrate their peaceful agrarian lifestyle and would rather have productive farmland and healthy environment than tourism. The government claims tourism will provide jobs and economic opportunities, but our partners want to farm, not clean bathrooms. They want healthy a healthy bay and mangrove forests, not manicured golf courses and jet skis. Government officials say they will require developers to meet “minimal environmental standards” but El Salvador lacks a positive record of enforcing its laws.
Please Help Protect the Region’s Environment and Agrarian Culture! – Our partners ask that we help them 1) organize a legal and political strategy, 2) fund a national advocacy campaign, and 3) support a small eco-tourism alternative. But we simlply can’t do it without your help. Time is short and we need to raise $7,600 by Friday, August 2nd. Help our partners’ VOICES be heard by making a generous donation today!
P.S. Lara Whyte recently published a piece in the Digital Journal about La Tirana and the Tourism threat. Als0, Justine Davidson, one our of Osgoode Hall Law School summer interns wrote an informative article on the Peninsula and the tourism issue.
Here is an overview of the projects/activities we need funding for:
Workshops to Develop Legal and Political Strategy
Voices’ volunteers and staff are helping our local partners develop a legal and political strategy to defend their land and way of life. By July 15th our partners will be ready to present their proposed strategy to their communities, and solicit their input and cooperation. They want to hold open meetings in key communities like Zamorano, La Tirana, El Chile, and Isla de Mendez. Our local partners will then host a weekend conference with 20 community leaders to organize a national advocacy campaign. Each of the open community meetings will cost $400 in transportation, printing, and refreshments. The weekend retreat will cost $1,000 in lodging, transportation, food, and printing.
National Advocacy Campaign
In August, after the workshops and weekend conference, our local partners will be ready to launch their National Advocacy Campaign. Organizers have asked Voices and partner organizations to help contribute funds to hire attorneys to file legal cases and monitor environmental permitting processes, arranging transport for rural community members to meet with policy makers in San Salvador, buying one-page advertisements in national newspapers and additional campaign opportunities. These activities will far exceed $3,000 but Voices is joining forces with several Salvadoran organizations that will also contribute to the campaign.
La Tirana
The community board of La Tirana has asked Voices and CESTA (a Salvadoran environmental organization) to help them develop an eco-tourism project as an alternative to the mega-projects. Birdwatchers and naturalists already visit La Tirana but residents are unable to offer lodging or food. CESTA is willing to help build small, comfortable cabins and a community-run restaurant if Voices will help the board develop the infrastructure and capacity to manage the project in the long-term.
We are ready to begin in July, but need $2,000 to help the board develop a business plan and build their capacity in areas such as accounting and business management which will enable La Tirana residents to sustain their own eco-tourism initiative in the long-run.
Tagged agrarian culture, Bajo Lempa, Bay of Jiquilisco, eco-tourism, El Salvador, Environment, farmland, Food Security, Jiquilisco Bay, Lower Lempa, mangroves, MCC, Millennium Challenge Corporation, San Juan del Gozo, TourismLeave a comment
Advocacy, U.S. Relations
The Salvadoran Roundtable Against Mining Releases a Statement Against the P3 Law
May 24, 2013 voicesontheborder
Yesterday the Salvadoran Legislative Assembly passed the controversial Public Private Partnership Law. The Law passed 84-0, meaning that no representative in the Legislative Assembly opposed the Law. The vote doesn’t necessarily reflect the public’s opinion of public-private partnerships or the Law. Many groups throughout El Salvador oppose the Law for a variety of reasons.
Over 75 leaders of communities throughout the Bajo Lempa and Bay of Jiquilisco gathered the day before yesterday’s vote to again denounce the law and the implications that public private partnerships have for the region (click here for more on that). In addition to opposing privatization of more state resources and services, leaders throughout the region oppose the plan to use public-private partnerships to promote tourism in the region.
Simiarlly, the labor movement organized a couple of protests this week and circulated an online petition (click here for more on that). They are concerned that public-private partnerships will cost thousands of public-sector jobs and a deterioration of workers rights.
The Salvadoran Roundtable Against Metallic Mining (MESA, in Spanish) are concerned that the PPP Law will result in government-sponsored mining activities. The MESA released a statement yesterday afternoon and this morning quickly translated it to English (apologies in advance to the authors for any errors) – it is posted below, first in English and then the original in Spanish.
The MESA Statement in English
We REJECT THE LAW BECAUSE Public Private Partnership OPEN POSSIBILITIES FOR METAL MINING IN EL SALVADOR
With regards to the debate around the Public-Private Partnership Law (PPP) and its dishonorable approval by the Legislature, the National Roundtable Against Metallic Mining releases its strong rejection of this new attempt to privatize public services .
As the National Roundtable Against Metallic Mining, we also express our deep concern that the PPP Law opens the door for approval of mining projects in [El Salvador]. When there is no law that prohibits metalic mining or a General Law on Water to alieviate the water shortage that we suffer, it is irresponsible and reprehesible that [the Legislature] would pass a law like the PPP Law that creates the conditions for severe predation and environmental degradation, and a the socio-environmental crisis in which we live.
It is foolish and wrong to repeate actions that have already been proven to be the cause of many of our structural problems. Vulnerability to disasters, along with environmental degradation, massive budgetary and institutional weaknesses in addressing climate change, forced migration, social exclusion and violence are the result of not keeping the voracious markets under control. The State’s goods and resources should serve to provide a dignified life for the population, not to finance predatory corporate profits.
The proposed public-private partnerships are a continuation of the neoliberal policies of the privatization of public services that affect the economic, social and cultural rights of the Salvadoran population. From an environmental sustainability perspective, we urge government authorities and the Legislative Assembly to stop implementing programs promoted by the International Monetary Fund, and pass with equal importance and speed, the General Law on Water, the Ban on Metallic Mining, and the ratification of Article 69 of the Constitution, which establishes the right to water and food.
We reject and deny that private concessions are the solution to improve the delivery of services to the population. We emphasize that if El Salvador prosecuted those who avoid and evade their tax liabilities, and adopt of a progressive tax code that requires those who have more to pay more, the State would have the conditions and resources to provide adequate public services.
We also call on legislative representatives to defend the sovereignty of our country. There are several international treaties such as the Convention for the Conservation of Biodiversity of SICA, Convention 169 of the International Labour Organization ILO, 1992 Rio Convention, the Universal Declaration of Human Rights which recognizes the right of people to participate and decide on the use that will be given to the resources of their territories. The Law on Public Private artnerships are nothing more and nothing less than an affront to any possibility of building a worthy development model that is just and sustainable.
Deputies: DEFEND THE SOVEREIGNTY OF THE PEOPLE SALVADORIAN
No to the proposed Public Private Partnership law!
The MESA Statement in Spanish
RECHAZAMOS LA LEY DE ASOCIO PÚBLICO PRIVADO PORQUE ABRE POSIBILIDADES PARA LA MINERÍA METÁLICA EN EL SALVADOR
En el contexto de discusión de la Ley de Asocio Público-Privado (APP) y su deshonrosa aprobación por parte de la Asamblea Legislativa, la Mesa Nacional frente a la Minería Metálica hace público su más enérgico rechazo a este nuevo intento de privatización de servicios públicos.
Como Mesa Nacional frente a la Minería Metálica manifestamos además nuestra profunda preocupación de que la Ley de APP abra las puertas para la aprobación de proyectos mineros en nuestro país. Mientras no se cuente con Ley que prohíba la Minería Metálica o una Ley General de Aguas orientada a revertir el estrés hídrico que sufrimos, es irresponsable y repudiable que se apruebe un marco jurídico como la Ley APP, que sienta las condiciones para agudizar gravemente la depredación ambiental y por ende, la crisis socioambiental que vivimos.
Es absurdo y equivocado que se repitan medidas que ya demostraron ser la causa de muchos de nuestros problemas estructurales. La vulnerabilidad ante desastres, al igual que el deterioro ambiental, las enormes desventajas presupuestarias e institucionales para enfrentar el Cambio Climático, la migración forzada, la exclusión y la violencia social son el resultado de no controlar la actitud voraz del mercado. Los bienes y recursos que son patrimonio del Estado deben orientarse para garantizar la vida digna de la población, no para financiar el lucro depredador de las corporaciones.
Las propuestas de Asocio Público constituyen la continuación de las políticas neoliberales de privatización de servicios públicos que afectarán los derechos económicos, sociales y culturales de la población salvadoreña. Desde una lógica por la sustentabilidad ambiental, exigimos a las autoridades del Gobierno y a la Asamblea Legislativa que en lugar de hacer valer los programas del Fondo Monetario Internacional, hagan valer con la misma importancia y celeridad, las leyes de agua, de la prohibición de la minería metálica, así como la ratificación del artículo 69 de la Constitución que establece el derecho humano al agua y a la alimentación.
Rechazamos y desmentimos que las concesiones a privados sean la solución para mejorar la prestación de servicios a la población. Enfatizamos que si en El Salvador se persiguiera la elusión y evasión fiscal, así como si se aprobara un pacto fiscal progresivo donde los que tienen más pagan más, el Estado contaría con las condiciones y recursos suficientes para hacerlo.
Llamamos a las y los diputados de la Asamblea Legislativa para que hagan respetar la soberanía de nuestro país. Existen diversos tratados internacionales como el Convenio para la Conservación de la Biodiversidad del SICA, el Convenio 169 de la Organización Internacional del Trabajo OIT, la Convención de Río de 1992, la Declaración Universal de los Derechos Humanos que reconocen el derecho de las poblaciones para participar y decidir sobre el uso que se le dará a los recursos de sus territorios. Los Asocio Públicos Privados son nada más y nada menos que una afrenta más para cualquier posibilidad de construir un modelo de desarrollo digno, justo y sustentable.
DIPUTADOS Y DIPUTADAS : DEFIENDAN LA SOBERANÍA DEL PUEBLO SALVADOREÑO
¡No a la propuesta de ley de Asocio Público Privado!
Tagged Bajo Lempa, Bay of Jiquilisco, El Salvador, labor movement, Legislative Assembly, MCC, MESA, P3 Law, Public-Private PartnershipsLeave a comment
Partnership for Growth, U.S. Relations
Law on Public Private Partnerships Seems to be Moving Forward in El Salvador (Please sign the Petition Below!)
Countrapunto reported Wednesday that the Legislative Assembly’s Treasury Commission gave a green light to the proposed Law on Public Private Partnerships (P3 Law). The full Assembly should have a chance to vote on the bill as soon as today, Thursday May 23.
Since the Funes Administration introduced the bill last year, opposition has grown, in part, around the fear that if passed that State would be able to privatize important state services and assets. Members of the Treasury Committee tried to address some of those concerns with amendments. FMLN Diputado (Representative) Orestes Ortez, said “at least how it has been modified through today, in agreement with all the other diputados, the bill does not open space for privatizing those goods that have a public or social interest.”
According to the Contrapunto article, the Committee took out a section that required the Legislative Assembly to vote on a contract within 45 days of receiving it. Ortez pointed out that no country in the world imposed such tight time limits on legislative functions. The Committee also created a roll for itself in negotiating the terms of P3 contracts. The original bill only gave them the right to approve or oppose a contract, but not contribute substantively to its content.
Among the other changes, the reforms require that all contractors abide by El Salvador’s labor laws, which they would presumably have to do anyway. This seems to be an attempt to pacify the labor movement, which has been the law’s most vocal opponent. The reforms also exclude services like water, health, education, the public university, the public insurance system, and El Salvador’s jails from P3 contracts.
According to La Prensa Grafica, the bill that left the Treasury Commission should have enough support to pass the Legislative Assembly.
But the reforms seem insufficient to pacify the bill’s opponents. Estela Ramírez, a representative of the Private Sector Worker’s Union Federation (FUERSA), told a group of supporters, “we are here from the private sector to accompany public sector workers in their opposition to the P3 law, not only out of solidarity for those workers’ rights, but because of the impact that this law would have on private sector workers by raising the costs of social services and further bankrupting the state.”
Residents of the Bajo Lempa reigon of Jiquilisco, Usulután share the labor movement’s concerns about the P3 law’s affects on the labor market and access to public services. Their main concern, however, is that the P3 Law is a prerequisite for the second round of Millennium Challenge Corporation funds, which will fund public-private partnerships for developing tourism throughout the region. Residents of the Bajo Lempa have stated on several occasions that they do not want large tourism projects or other mega-development projects that will continue to disrupt their agricultural economy and peaceful way of life.
Yesterday, more than 70 residents and civil society leaders in the Bajo Lempa gathered to discuss the P3 Law and the reforms, as well as the MCC projects. Even after reviewing the changes approved this week by the Treasury Committee, the representatives at the meeting remain 100% against the P3 law and MCC. The reforms did not change their view that the P3 law was written to benefit corporations and wealthy people, and has not taken into consideration the needs of the communities.
One person at yesterday’s meeting made the point that since 2005 civil society has tried to get the Legislative Assembly to consider a Water Law they drafted. Their bill enjoys widespread support because it tries to protect the interests of communities and people. But the Legislative Assembly has never tried to move the bill forward. The P3 Law, however, appears to be zipping through the legislative process even though people, communities and civil society organizations have spoken out against it.
The labor movement is organizing a protest today outside the Legislative Assembly, presumably around the time the diputados will be debating and possibly voting on the P3 Law. They, along with residents of the Bajo Lempa, will continue to protest the law and its application if it is approved.
So far the P3 Law has enjoyed the most support from the U.S. Embassy in San Salvador. U.S. Ambassador Mari Carmen Aponte has appeared in the Salvadoran news several times over the past few months calling on the Legislative Assembly to pass the law, stating that it is a prerequisite for the second Millennium Challenge Corporation grant worth $400 million.
Support for the P3 Law amongst Salvadorans doesn’t necessarily come from common sense that public-private partnerships are the key to economic growth, though there are some who are believers. It comes from the th.reat that if the law is not passed, the U.S. will withhold the $400 million MCC fund – an investment that people in the Bajo Lempa don’t want anyway
This morning our friends over at CISPES sent around a petition by CEAL (a Salvadoran Labor group) asking that members of the Legislative Assembly reject the P3 Law, which “was proposed by the Executive branch under the pressure of the United States Embassy.” Instead they call on the Legislative Assembly to approve fiscal reforms quickly that require those that have more to pay more taxes in order to finance more social projects that benefit Salvadoran communities without needing to privatize government assets and services.
Please take a moment to sign the petition – it’s an important way to let the U.S. Embassy and the Legislative Assembly know that you believe that the interests of the Salvadoran people should come before those of wealthy corporations that are already thriving in the neoliberal economic model the U.S. has been implementing since the early 1990s.
Tagged Bajo Lempa, CEAL, CISPES, El Salvador, Estela Ramirez, FUERSA, Funes, Legislative Assembly, Mari Carmen Aponte, MCC, Millennium Challange Corporation, Orestes Ortiz, P3 Law, Public-Private Partnership, Treasury Commission, U.S. Embassy El SalvadorLeave a comment