El Salvador: The Beginning Of A New Era

(El Salvador) -- On Monday, June 1, 2009 El Salvador turned a new page in its history with the inauguration of the country’s first left government, joining the ranks of the majority of Latin America.  Representing the FMLN (Farabundo Marti para la Liberacion Nacional), Mauricio Funes and Salvador Sanchez Ceren, president and vice-president elect, face a national assembly where the FMLN is outnumbered by more than 2:1.  Out of a total of 84 seats, the FMLN only have 35.  This will make broad sweeping changes difficult, but not impossible, and may force Funes to use the power of the presidential veto as a bargaining chip.  It is important that those of us observing from a distance understand the complicated environment within which the new government is operating.

The new government represents a coalition of interests including the FMLN and its well-established national (and international) grassroots system of committees, and a broad cross-section of civil society that includes church groups, non-governmental and labour organizations, workers, students, etc.  As the new government takes office, more and more information is coming to light that despite the glowing picture painted by the outgoing right-wing ARENA regime, the country is bankrupt -- the result of twenty years of failed economic and social policies, and rampant, shameless corruption by ARENA and its allies, the PDC and PCN.  After assuming office, the new government is now discovering the depth of the corruption and mismanagement. 

To further complicate matters, the former ARENA government was very busy over the last few weeks of its regime passing a number of laws and renewing contracts for their allies and supporters to ensure their continued control of the economy.   The FMLN won on a platform of priorities created by the people of El Salvador – through a lengthy, inclusive and thorough popular consultation process.  The priorities expressed by the people were access to adequate food, medicine/healthcare, jobs, affordable energy and security.   The Funes-Sanchez Ceren government will have to be creative in its approach to solving some of El Salvador’s many problems, most of which have been exacerbated over the last twenty years.

Anyone who knows the history of El Salvador will not be surprised by ARENA’s cynical, desperate and cruel last minute attempts to thwart the new government’s response to the needs of the people, particularly the most vulnerable.  Information is slowly coming to light of the extent of the damage the outgoing government has done to the nation – and this is only scratching the surface.   For example, in late May, a popular health committee in the city of Soyapango caught Department of Health employees red-handed trying to dispose of a warehouse of expired medicines.  The medicines carried expiration dates from 2005 to present.  What was the motive of the former ARENA government in hoarding medicines in a warehouse?  Create instability and scarcity in public health institutions to force people (who can hardly afford to buy food) to buy medicine through private means.  

The following is just a sample of the current state of chaos left behind by the former ARENA government.   

1.       The government subsidizes many basic services for the population, such as the private distribution of electricity, transportation, gas and water.  However, the former government owed months of back payments for those subsidies to the private service providers, and they left this debt to the new government.  What is the solution for the companies?  They can either raise the rates directly to the consumer, or shut off the services.  The cost of electricity for the average Salvadorean already increased by 40% in April this year.

2.       El Salvador has been hit hard by the global economic crisis.  Currently, the official poverty rate stands at 40% of the population (however, it is believed to be much higher).  The response of the former government to the crisis was similar to other neo-liberal governments (including the Canadian government): inject money into the economy by sponsoring huge infrastructure projects.  In El Salvador, the benefits of these projects will go directly to the two construction companies that are owned by ARENA party leaders.  For example, as I drove from San Salvador to the Port of La Libertad, I encountered a major highway twinning project.  The new highway is being built to facilitate a proposed (but not confirmed) Boeing parts plant, and to service the slew of million dollar luxury homes trailing up from the highway.

3.       Prior to leaving office, the office of former President Antonio Saca spent millions on publicity – preferring to spread propaganda rather than actually putting the money into services for the public.  The former Office of the President paid millions of dollars to public relations companies owned by ARENA party members; however, the source of the money was a ¨secret¨ presidential fund that is not subject to audit.  Surely, this is just the tip of the iceberg.

4.       Like other countries, El Salvador collects revenue through personal income and business taxes.  This year, income tax returns were not paid out because the government is bankrupt.

5.       Prior to leaving office, the ARENA government renewed the contract for the US Anti-Drug Monitoring Base at Comalapa for another five years. 

6.       The government has a multi-million dollar debt with government supply and service providers (for example, security, cleaning).  Not only were these bills not paid, the contracts with ARENA’s own networked companies that supply these services were hastily renewed before the arrival of the new government.

7.       During the ARENA regime, El Salvador borrowed a number of short-term loans from foreign countries and institutions, and this foreign debt accumulated because they were unable to make the payments.

8.       Because of the financial crisis in the U.S. and resulting job losses, approximately 300 undocumented Salvadoreans per day are returning to El Salvador.  The outgoing government had no plan or ability to deal with the influx, and this will now become a challenge for the new government.

9.       Former President Saca and his family made several last minute trips (purportedly to say “farewell”) covering almost the entire continent, as well as Israel, and a trip to see the Pope – all at great expense to the public purse.

This is just a sample of the state of affairs left by the former ARENA government.  Prior to leaving office, the right-wing dominated national assembly also passed a number of laws:

1.       The citizenship and voters list has been controlled by the presidency for a number of years (whether or not this is appropriate is another matter).  To prevent the FMLN from controlling the list, a law was passed that turns control over to the TSE (Supreme Electoral Tribunal), which is controlled by the right-wing opposition, appointed by the former government. 

2.       The former government passed a ¨bullet-proof¨ law that protects the positions of thousands of state employees that are ARENA supporters.

3.       Another law that was passed recently extends and protects the privileges of consular officials abroad.  Many consular officials are family members of governing members of the ARENA party (for example, the Consul General in Toronto is related to former President Saca).  The new law means they can keep their diplomatic passports, continue to receive tax exemptions and discounts on international flights, and most importantly, they will not be required to submit to luggage checks at customs. 

These points are just a sample of the corruption and level of political cynicism of the former ARENA government – that tried to foment chaos and insecurity before the new government took office, and continues to do so.  Despite the cynical moves, Salvadoreans are extremely hopeful and supportive of the new government.  Before Mauricio Funes even took office, his popularity was at 82%.  The inauguration on June 1 was the most highly-attended presidential inauguration in the history of the country, and included the presidents of Central America, many countries in the Caribbean, and allied country leaders like Rafael Correa, Lula da Silva, Manuel Zelaya and Fernando Lugo.  Also in attendance were Hillary Clinton, Alvaro Uribe and Spain’s Prince Felipe and Princess Letizia.  However, the real celebration was in the Cuscatlan Stadium where more than 70,000 Salvadoreans celebrated the big day with a popular celebration that included music, speeches by the new president and vice president, and attendance by hundreds of international delegations.  Rafael Correa, Cuba’s Vice President Esteban Lazo, Daniel Ortega, Miguel d’Escoto from the UN General Assembly also attended, however, Hugo Chavez and Evo Morales cancelled at the last minute due to security threats.  It is at this celebration that the new government sought a public pact with the people to support the new government and overcome the obstacles placed in their path by the former ARENA government.      

Jay Hartling is an independent journalist and researcher based in Halifax, NS. jayh@uvic.ca