Central America & Caribbean

Items

• DOMINICAN REPUBLIC: Mejí­a defies strike, vows to stand again

  12 July 2010 Hits: 211

  President Hipólito Mejí­a has dismissed the division within the ruling Partido Revolucionario Dominicano (PRD) over his re-election bid as 'family differences'. He also sent out a strong message to those who organised a massive general strike last week that he had every intention of standing for re-election in next May's presidential elections because, as he put it, 'I have prepared the ground, I have sown it and I want to be there for the harvest'.

  Speaking from Brazil, where he is trying to drum up more investment for the tourism sector, Mejí­a said 'There are some politicians who get tired of power but not me. I am happy. I want to carry on doing this.' There are seven other PRD pre-candidates preparing for party primaries on 14 December, united in their conviction that Mejí­a should not run as he is not popular enough to get re-elected. Thousands of protesters participated in last week's general strike. They demanded that Mejí­a resolve the power-shortage crisis and lower the prices of basic goods (including fuels). Seven people died in clashes with the police.

  Meanwhile, the head of the armed forces, Jorge Radhamés Zorrilla, has been accused of bribing people not to support the strike. The opposition Partido de la Liberación Nacional (PLD) has produced a video that shows Zorrilla handing over an envelope to a member of the public containing 20 pesos (about 50 cents) and a PRD logo.

• HONDURAS: Rebellion could derail IMF deal

  12 July 2010 Hits: 1736

  The government is facing a backbench rebellion over its efforts to secure a deal with the IMF by early 2004. Legislators from all the leading parties in congress, including the ruling Partido Nacional, have objected to the deal with the IMF, which would require a third fiscal adjustment in less than two years. A new deal is needed for Honduras to be eligible for the Highly Indebted Poor Counties initiative, under which it can write off US$900m of its foreign debt.

  Legislators argue that if Maduro has no other way of reducing the fiscal deficit he should dismiss his economic team who are clearly incapable. Gilberto Goldstein, a presidential aspirant, said that the PN would not support any further adjustment packages which have increased the price of most state-provided services for the people, who can ill-afford to pay more. Legislators say that the IMF has made it clear that any new standby agreement will include an increase in taxes, which they argue would be unsustainable for the people. The other parties in congress, including the main opposition Partido Liberal also reject the new deal.

  Porfirio Lobo, the president of congress, said that approving another adjustment scheme risked throwing the country into ungovernability. Three weeks ago, thousands of protesters across Honduras took to the streets to demonstrate against IMF-imposed austerity measures. The protest was organised by the Coordinadora Nacional de Resistencia Popular, a well-organised umbrella body that represents more than 100 unions, political groups, and civic associations.

  An IMF mission is currently in Tegucigalpa. The Fund wants the government to repeal pay increases for doctors and teachers. It argues that another adjustment package is unavoidable. The new papal nuncio, Antonio Arcari, said earlier this week that the IMF should be more flexible and that the foreign debt of poor countries should be written off by the developed world.

  The Honduran economy will need to grow by five percent for the next decade in order to make a substantial impact on poverty, which afflicts some 79% of the population, according to finance minister Arturo Alvarado. Given that the average annual rate of economic growth in the country has been 3.2% since 1990 and the annual rate of population growth has been 3.3% this looks unlikely. Alvarado said that the economy would grow by between 3% and 3.5% this year. He predicted 4% growth in 2004. He cited the need to increase foreign investment (FDI) in the energy and telecommunications sectors. He is pinning a lot on the impending US-Central American free trade agreement, which he expects to provide an influx of FDI.