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1 NICARAGUA NETWORK NICARAGUA MONITOR January-February 2008 # 147 Nicaragua Network 1247 “E” Street, SE, Washington, DC 20003 202-544-9355 [email protected] Acción Médica Cristiana Gets Aid to Hurricane Victims By Dr. Belinda Forbes [Dr. Belinda Forbes is a US citizen working with Acción Médica Cristiana in communications, promotion and community health. You can contact AMC at [email protected]] On September 4, 2007, category-5 Hurricane Felix blew through the North Atlantic Autonomous Region (RAAN) of Nicaragua, leaving devastation in its wake and affecting the lives of approximately 200,000 mostly poor, indigenous people. Already vulnerable to natural disasters and historically marginalized by political powers, the Caribbean region of Nicaragua faced many challenges before Felix hit, making the aftermath even more difficult. Understanding the conditions in this region prior to the hurricane helps to emphasize the importance of an immediate and efficient response to this most recent emergency. The population in the RAAN See Hurricane Victims, p. 6. “Leap Into Action” for Jubilee is very dispersed, with only 9 people per square kilometer compared to national average of 43. More than 62% of the roadways are in poor condition and many communities are only accessible by water with elevated transportation costs. Families survive by subsistence farming, hunting and fishing with little or no basic services in health, education and housing. There is no industry or Food distribution was the first priority for groups like Accion Medica Cristiana. Photo: AMC By the Jubilee USA Network Call Congress on Leap Day February 29 Capitol Switchboard: (202) 224-3121 Use your “extra” day this Leap Year to call your Senators AND Representative about the Jubilee Act for Responsible Lending and Expanded Debt Cancellation (HR 2634 / S 2166). Right now, Congress is discussing the most important piece of debt legislation in seven years! Since Jubilee 2000, we have seen 23 countries receive near 100% cancellation of eligible debt to the International Monetary Fund (IMF), the World Bank and the Paris Club of lender countries. In countries like Zambia, Tanzania, and Nicaragua, debt relief has produced results – eliminating fees that had blocked access to primary education and rural health clinics for the poorest, helping millions of children return to school and providing access to basic medical care. Yet, despite the remarkable track record of debt cancellation, more than 40 poor countries, such as Haiti and Lesotho, are still waiting to see their debts canceled. Every day over $100 million flows out of impoverished countries in the form of debt payments. This is money that could be invested in health care, clean water and education. The Jubilee Act (HR 2634 / S 2166) builds on past debt cancellation successes, by calling for expanded debt cancellation to all countries that need it to reach the United Nations Millennium Development Goals to cut extreme poverty in half by 2015. The Jubilee Act would prohibit specific harmful economic and policy conditions while insisting on transparency and accountability. The prohibited harmful conditions include user fees for primary health care and education, increased cost for the poorest for clean drinking water, measures that compromise workers’ rights, and IMF constraints on government spending for essential health care and education. Research by the Jubilee Debt Campaign (UK) found that in order to access debt cancellation under the IMF’s HIPC Initiative: •Zambia had to privatize its national bank in the face of parliamentary and public opposition. IMF policies also forced it to restrict public sector spending through a wage and hiring freeze, leaving it unable to employ 9,000 teachers; •Nicaragua had to privatize electricity. Electricity prices rose by 200%, pricing the poor out of the market, and blackouts became frequent. •Sierra Leone has had to prepare for privatization of 24 state enterprises, including water, power, and telecommunication. Another problem addressed in the Jubilee Act is that of so-called vulture funds. When countries such as Nicaragua See Jubilee, p. 9.

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Page 1: January-February 2008 # 147 Acción Médica Cristiana Gets ... · in the face of parliamentary and public opposition. IMF policies also forced it to restrict public sector spending

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NICARAGUA NETWORKNICARAGUA MONITORJanuary-February 2008 # 147

Nicaragua Network 1247 “E” Street, SE, Washington, DC 20003 202-544-9355 [email protected]

Acción Médica CristianaGets Aid to Hurricane Victims

By Dr. Belinda Forbes[Dr. Belinda Forbes is a US citizen working with Acción Médica Cristiana in communications, promotion and community health. You can contact AMC at [email protected]] On September 4, 2007, category-5 Hurricane Felix blew through the North Atlantic Autonomous Region (RAAN) of Nicaragua, leaving devastation in its wake and affecting the lives of approximately 200,000 mostly poor, indigenous people. Already vulnerable to natural disasters and historically marginalized by political powers, the Caribbean region of Nicaragua faced many challenges before Felix hit, making the aftermath even more diffi cult. Understanding the conditions in this

region prior to the hurricane helps to emphasize the importance of an immediate

and effi cient response to this most recent emergency. The population in the RAAN

See Hurricane Victims, p. 6.

“Leap Into Action” for Jubilee

is very dispersed, with only 9 people per square kilometer compared to national average of 43. More than 62% of the roadways are in poor condition and many communities are only accessible by water with elevated transportation costs. Families survive by subsistence farming, hunting and fi shing with little or no basic services in health, education and housing. There is no industry or Food distribution was the fi rst priority for groups like

Accion Medica Cristiana. Photo: AMC

By the Jubilee USA NetworkCall Congress on Leap Day February 29Capitol Switchboard: (202) 224-3121 Use your “extra” day this Leap Year to call your Senators AND Representative about the Jubilee Act for Responsible Lending and Expanded Debt Cancellation (HR 2634 / S 2166). Right now, Congress is discussing the most important piece of debt legislation in seven years! Since Jubilee 2000, we have seen 23 countries receive near 100% cancellation of eligible debt to the International Monetary Fund (IMF), the World Bank and the Paris Club of lender countries. In countries like Zambia, Tanzania, and Nicaragua, debt relief has produced results – eliminating fees that had blocked access to primary education and rural health clinics for the poorest, helping millions of children return to school and providing access to basic medical care. Yet, despite the remarkable track record

of debt cancellation, more than 40 poor countries, such as Haiti and Lesotho, are still waiting to see their debts canceled. Every day over $100 million fl ows out of impoverished countries in the form of debt payments. This is money that could be invested in health care, clean water and education. The Jubilee Act (HR 2634 / S 2166) builds on past debt cancellation successes, by calling for expanded debt cancellation to all countries that need it to reach the United Nations Millennium Development Goals to cut extreme poverty in half by 2015. The Jubilee Act would prohibit specifi c harmful economic and policy conditions while insisting on transparency and accountability. The prohibited harmful conditions include user fees for primary health care and education, increased cost for the poorest for clean drinking water, measures that compromise workers’ rights, and IMF constraints on government

spending for essential health care and education. Research by the Jubilee Debt Campaign (UK) found that in order to access debt cancellation under the IMF’s HIPC Initiative:•Zambia had to privatize its national bank in the face of parliamentary and public opposition. IMF policies also forced it to restrict public sector spending through a wage and hiring freeze, leaving it unable to employ 9,000 teachers;•Nicaragua had to privatize electricity. Electricity prices rose by 200%, pricing the poor out of the market, and blackouts became frequent.•Sierra Leone has had to prepare for privatization of 24 state enterprises, including water, power, and telecommunication. Another problem addressed in the Jubilee Act is that of so-called vulture funds. When countries such as Nicaragua

See Jubilee, p. 9.

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Announcing the April 2008 VSN Symposium“What’s Up With Venezuela:

Participatory Democracy orDemocracy as Usual?”

Today we are witnessing the emergence of democracy in countries that have existed for too long under regimes controlled by U.S. corporate interests. Throughout Latin America and the Caribbean countries are developing a true path to self-determination and self-suffi ciency, along with Simon Bolivar’s dream of unity and self-empowerment. The Bolivarian Republic of Venezuela is in the forefront of this movement. But, people in the United States - including activists, academics, policymakers, religious groups and labor unions – lack a depth of understanding about what is taking place in Venezuela and its ramifi cations for the Western Hemisphere. Therefore, we see a great need to break down the myths surrounding Venezuela and to understand Venezuela’s “Agents of Change”: the Workers and Peasant Movements, the Social/Ethnic Popular Movements and the powerful Women’s Movement. The United States needs facts, not rhetoric, on what is happening with Venezuela’s economy, energy and even environmental policies. Indeed, to be aware of Venezuela one must comprehend

is planning a National Symposium entitled: What’s Up With Venezuela: Participatory Democracy or Democracy as Usual? This conference will be held on April 18-20, 2008 at historic Howard University in Washington, D.C., followed by a lobby day and demonstration on April 21. The event will have three components:

include academics, journalists, labor leaders, economic analysts, as well as Venezuelans who represent the peasant, women, Afro-Venezuelan, labor and cooperative movements as well as academics and government offi cials. Among the invited panelists are: Journalist Bart Jones, Venezuelan Ambassador Bernardo Alvarez, Afro-

Nearly 500 people participated in the March 2006 conference that founded the Venezuela Solidarity Network. Photo: www.vensolidarity.net

1. On Friday morning, there will be a Congressional Briefi ng, then2. The Venezuelan Symposium will kick off on Friday evening with an opening night presentation and cultural show. A

Venezuelan leader Jorge Guerrero, Professor Dan Hellinger, Venezuelan Supreme Court Judge Fernando Vegas, Venezuelan labor leader Luis Primo, economist Mark Weisbrot, Venezuelan indigenous leader Noly Fernandez, and professor Steve Ellner. It is our intention that this symposium make a lasting contribution to building peace and friendship between the peoples of the United States and Venezuela and to debunk some of the disinformation about the Bolivarian process that has been raised questions in the minds of many progressive activists and opinion makers in the U.S. As a grassroots coalition, VSN relies on small donations from individual supporters and therefore has an extremely limited budget. The VSN as well as our host from the Howard University Cimeroones Student Organization invite you to register on-line here. If you register and pay before March 15, your feel will only be $35, a $15 discount on the regular registration rate of $50. To register go to www.vensolidarity.net.

Now, for the fi rst time Venezuelans are guaranteed access to education. Photo shows Pres. Hugo Chavez with students.

the difference between Traditional Democracy and Participatory Democracy as well as Venezuela’s vision of Latin-American sovereignty and integration. To address these needs, the Venezuela Solidarity Network (VSN), formed at a conference on Venezuela attended by nearly 500 activists in March 2006,

diverse number of panels on current issues facing Venezuela will take place on Saturday and Sunday.3. On Monday, April 21, the VSN encourages people to lobby their congressional representatives and join a demonstration against the National Endowment for Democracy at 12 noon. The lack of facts and the signifi cant number of half truths that the mainstream

media presents on a daily basis makes “Venezuela” almost impossible to comprehend. This symposium, therefore, brings a range of experts on Venezuela to demystify and clarify the issues that are being discussed both in Venezuela and in the United States. Panelists for this independent event

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Members of our 2007 delegation have their trees ready to plant. Photo: Kathy Hoyt

Volunteer from 2005 brigade demonstrates cistern for capturing rain water. Photo Laura Jensen

Volunteer to Plant Trees in Nicaragua!Reforestation Brigade Sponsored by the Nicaragua Network

June 15-29, 2008Cost: $850 for everything except airfare to Nicaragua

Plant trees in post-Felix Nicaragua to help prevent further natural disasters!Learn about the work being done to solve Nicaragua’s envi-ronmental problems!Visit scenic areas in Estelí and Madriz!Meet with environmentalists and governmental offi cials in Managua!

be traveling to Nicaragua June 15-29, 2008, to assist with a water restora-tion and reforestation project supported by the Nicaragua Network called “Let the Rivers Run” of FEDICAMP (Federation for the Integral Devel-opment of Peasant Farmers).

Members of the brigade will spend ten days assisting local small farmers and cooperative members with the planting of mango, avocado, citrus, and other trees along streams or with other aspects of the campaign. The trees will serve to prevent erosion and also provide food and income for the local people. As a rest from planting trees, excursions are planned to scenic areas (canyon and waterfalls) in the Estelí/Somoto area.

Before leaving the country, the volunteers will travel to Nicaragua’s capi-tal, Managua, to meet with environmental groups and other organizations supporting sustainable peasant agriculture. The group will also meet with offi cials of the Sandinista government to hear about policies the govern-ment has put in place to address problems of poverty and environmental degradation.

Cost: $850 (This includes all ground transportation, three simple meals a day, basic lodging, translation, orientation materials, work materials and a contribution to our Nicaraguan partner organization. It does not include airfare to Nicaragua.)

Send an email to [email protected] to receive an application for the reforestation brigade. Deadline for applications is May 1, 2008.

Nicaragua was devastated by the winds and water of Hurricane Felix and the fl oods caused by two tropical depressions in 2007. The damage was aggravated by existing environmental damage to forests and watersheds. The Nicaragua Network invites you to join a team of volunteers that will

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The Nicaragua Monitor is published by the Nicaragua Network (a project of the Alliance for Global Justice) to educate US citizens about the effects of US policy on the people of Nicaragua and to build ties of peace and friend-ship between our two peoples.

Subscription information: $20 for one year (individuals), or $50 yearly (com-mittees). This publication may be reproduced in whole or in part to educate US citizens about Nicaragua and US policy. Credit the Nicaragua Network.

National Offi ce Staff: Katherine Hoyt, Chuck Kaufman, Jill HokansonNicaragua Network * 1247 “E” St., SE • Washington, DC 20003

Phone: (202) 544-9355 Fax: (202) 544-9359 [email protected]

Web site: www.nicanet.org

Fair Trade Expansion Helps Small FarmersBy Transfair USA[This and other information about Transfair and its work can be found at www.transfairusa.org. This article and the accompanying one on the next page address an issue being discussed in Fair Trade coffee circles--How to deal with the expansion of Fair Trade coffee into the mainstrean market?] What is Fair Trade certifi cation? Fair Trade certifi cation is a market-based model of international trade that benefi ts over one million farmers and farm workers in 58 developing countries across Africa, Asia and Latin America. Fair Trade certifi cation enables consumers to vote for a better world with their dollars, simply by looking for the Fair Trade Certifi ed label on the products they buy. Fair Trade Certifi ed agricultural products including coffee, tea and herbs, cocoa and chocolate, fresh fruit, sugar, rice, and spices (vanilla) are currently available at over 35,000 retail establishments in the U.S. Fair Trade empowers farmers and farm workers to lift themselves out of poverty by developing the business skills necessary to compete in the global marketplace. By guaranteeing minimum fl oor prices and social premiums, Fair Trade enables producers to invest in their farms and communities and protect the environment. But Fair Trade is much more than a fair price. What is TransFair USA and what does TransFair do? TransFair USA, a non-profi t organization, is the only independent, third-party certifi er of Fair Trade products in the U.S. TransFair’s rigorous audit

system verifi es industry compliance with Fair Trade criteria. TransFair licenses over 600 U.S. companies to display the Fair Trade Certifi ed label on agricultural products that meet strict international Fair Trade standards. TransFair is one of 23 members of Fairtrade Labeling Organizations International (FLO). TransFair USA enables sustainable development and community empowerment by cultivating a more

products into thousands of retail outlets across the U.S. means TransFair USA is extending the benefi ts of Fair Trade to a growing number of farming families around the world. And giving Americans the opportunity to purchase Fair Trade products wherever they choose to shop makes it possible for a broader range of consumers to be part of the Fair Trade solution. That’s why TransFair is working to make Fair Trade Certifi ed products

A fair trade coffee cooperative in Nicaragua elects a new president--a woman. Photo: Esperanza En Accion

equitable global trade model that benefi ts farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade products. How does TransFair USA feel about large-volume retailers like WalMart and McDonald’s carrying Fair Trade Certifi ed products? The expansion of Fair Trade Certifi ed

available everywhere; at large retailers and national chains as well as small independent stores and cooperatives. TransFair understands that consumer confi dence in the Fair Trade Certifi ed label is of utmost

importance to our model. That’s why we never lower our product certifi cation standards for any company, regardless of its size or commitment to Fair Trade. The Fair Trade Certifi ed label on a product package is the consumer’s guarantee that the product has met strict social, economic and environmental standards. The same international Fair Trade standards apply to all participating companies and retailers, regardless of their size or business model. It is important to remember that the Fair Trade Certifi cation model cannot and does not attempt to monitor a company’s broader business practices or motives for involvement in Fair Trade. In other words, TransFair certifi es products, not companies. TransFair strongly supports “conscious consumerism”: we encourage people to educate themselves about the companies from which they buy, the origins of the products they consume, and the business practices of the stores where they shop.As large, mainstream companies and

See Expansion, p. 8.

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Fair to the Last Drop: Corporate Challenges to FairtradeBy Eric Holt-Giménez, Ian Bailey, and Devon Sampson[Eric Hold-Giménez is Executive Director of the Institute for Food and Development Policy, better known as Food First. Ian Bailey and Devon Sampson also work at Food First. They can be reached at: foodfi rst@foodfi rst.org. This article and the accompanying one on the previous page address an issue being discussed in Fair Trade coffee circles--How to deal with the expansion of Fair Trade coffee into the mainstrean market? ] In the wake of the recent extraordinary market expansion of Fairtrade—and in the midst of a mild rebound in the coffee market—the Fairtrade movement is being criticized. Even student groups, social justice groups, and some Fairtrade roasters are questioning the development claims, the “fairness” and the future of the Fairtrade coffee industry, for very different reasons. Farmer organizations, such as Via Campesina and the Brazilian Landless People’s Movement (MST) challenge the Fairtrade movement to work politically for structural change. Many ethical consumers and Fairtrade activists are also uncomfortable selling Fairtrade products through multinational corporations with unfair labor practices and monopolistic market power. Recently the Fairtrade Labeling Organization (FLO) and Fairtrade certifi ers have been promoting the idea that Fairtrade should become mainstream. Most recent criticism revolves around this strategy. For the largest coffee buyers, Fairtrade makes up only a tiny portion of their coffee purchases. For these companies Fairtrade is not a social movement or a business ethic, but rather a public relations opportunity and a profi table niche. One Fairtrade product can make the whole brand seem socially responsible, even though the corporation continues to buy the vast majority of its coffee on the conventional market. This phenomenon has many actors in Fairtrade questioning the meaning of fair trade. Is the goal to help as many peasant farmers as possible by selling as much Fairtrade coffee as possible? Or is the goal to transform coffee’s historically unfair market structures? Are markets the engine

for social change or are social movements the force to change markets? These questions refl ect the growing disagreement among Fairtrade advocates over whether it is advisable to “mainstream” Fairtrade through the very corporations and market structures that provoked the coffee crisis in the fi rst place. Social change and value chains Although the Fairtrade premium

Fairtrade are as much due to the efforts farmers put into local organizing as they are to certifi cation. At the very least, there appears to be a mutually benefi cial relation between higher premiums and the extensive social and political work carried out by farmers’ movements. Under these circumstances, it is diffi cult to imagine Fairtrade even taking root without building upon the historical agrarian struggles for land reform, cooperative organizations, and indigenous rights. However, none of this is refl ected in corporate marketing of Fairtrade, where development claims are politically sanitized for mass consumption. At best, cooperation—not struggle—is emphasized. Minimum wage or living wage? In December 2006, the Association of Cooperatives of Small Coffee Producers of Nicaragua (CAFENICA) and the coordinating body of Producers in Latin America and the Caribbean, the Coordinadora Latinoamericana y del Caribe de Pequeňos Productores de Comercio Justo (CLAC) submitted a report to the Fairtrade Labeling Organization (FLO) requesting a 15 cent per pound Fairtrade price increase. Citing a lack of information, FLO initially denied the request and postponed talks. After pressure from farmer organizations and consumer groups, FLO agreed to a fi ve cent per pound increase. The CLAC report and other impact studies expose some of the drawbacks within the Fairtrade certifi cation process and its market mechanisms. Fairtrade’s minimum price was a lifesaver during the coffee crisis. But it was never pegged to farmers’ cost of production or cost of living, and it is now increasingly less effective at ensuring social benefi ts. Some studies indicate that farmers now lose money under Fairtrade—they just lose less than conventional growers. By pursuing a mainstream approach, Fairtrade ensures more of a “minimum wage” rather than a “living wage”. Now, farmers represented in CLAC who seek a “living wage” for their coffee are at odds with Fairtrade certifi ers, who must keep the price low if they are to mainstream Fairtrade through large corporate retailers.

See Challenges, p. 10

Coop members sort coffee in Nicaragua. Photo: CECOCAFEN

provided an important safety net during the worst of the coffee crisis, recent studies question many of the development claims reported by certifi ers and corporate retailers. In a study of Mexican and Central American coffee farming families and communities, researchers from the Community Agroecology Network (CAN), reported that there were no signifi cant differences in the ability to send children to school or the level of food security between Fairtrade farm families and non-Fairtrade farm families. The CAN study did not fi nd evidence that Fairtrade certifi cation alone empowered farmers to lift themselves out of poverty. Instead, the researchers noted that the cooperative that seemed to benefi t most from Fairtrade had a direct relationship with a U.S. buyer that bought all of their coffee at a price above the Fairtrade minimum every year. Studies also suggest that the development successes claimed by

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manufacturing. Only 1% of the population has access to telephone service, most of which is in Puerto Cabezas (Bilwi), the regional capital of the RAAN. In the last seventeen years, the region has lived through fourteen disasters such as tropical storms, hurricane and plagues of rats. In the early hours of September 4th, Hurricane Felix fi rst hit the Miskito Keys off the Caribbean shore and Sandy Bay, blew through the indigenous territory known as Tasba Pri located between Puerto Cabezas and the mining town of Rosita, and then turned north to hit portions of the Coco River before dissipating over Honduras. “We have never seen this happen before in this region,” says Belarmino Wilson of Tasba Pri. The previous natural phenomena have always hit the Coco River or the South Atlantic Autonomous Region. Felix caught Tasba Pri inhabitants by surprise, exacerbating the damage and loss. The hurricane landed in the heart of the Mesoamerican biological corridor where 7% of the world’s biodiversity can be found. The natural balance has been tilted with the immense number of plants and animals lost to the hurricane. Birds, monkeys, and sloths are among the species affected. The human loss has also been great – 102 deaths, 133 disappeared and presumed dead, 350 communities affected, 994 km of roadways destroyed and over twenty thousand houses damaged or destroyed. Experts calculate up to 35 years to extract the fallen timber in the region. A third of the Bosawas natural reserve was destroyed, adding to the total of over 500,000 hectares of forest fl attened by the force of the hurricane. Sixty percent of the precious wood could be extracted, another portion is simply inaccessible. Political forces are now at play to see who will benefi t from the felled lumber, calculated at 11 million square tons of wood, almost twice what Nicaragua processed in the year 2004. Fishing, the principal economic activity of most inhabitants of the RAAN, was also severely affected, with shellfi sh and boned fi sh in diminished supplies. The sea turtles that lay eggs on Nicaragua’s shore are also under threat as a result of the disaster. Acción Médica Cristiana, (AMC) a Nicaraguan non-governmental organization with more than 18 years experience in this remote region has been

working tirelessly to bring an authentic response to the needs left by Felix. AMC has fi eld offi ces in Waspam on the Coco River, which is the northern border with Honduras, and in Sahsa in the Tasba Pri territory. One of the principal contributions made by AMC was in documenting a needs assessment and evaluation of damages provoked by Felix. This was carried out by AMC’s Field Staff in both locations, as well as in the AMC Regional Offi ce in Puerto Cabezas. The

Central, worked day and night to ensure a timely and adequate response. All aid distributions were made in the presence of a representative of the committee, and police offered a security escort for the distribution and storage areas. Each community leader receives the aid and channels it to the benefi ting families with logistical support (boats, trucks, and accounting systems) from AMC and the Emergency Committee. “The help has been distributed in a concrete way and we are thankful to

Hurricane Victims, from p. 1.

Tasba Pri Emergency Committee, headed up by AMC’s Field Coordinator, and representing governmental authorities, non-governmental agencies and local communities, organized to channel the aid more effi ciently and more quickly to those in need. This was done based on the assessment which showed food and shelter to be the priority, followed by clean water and sanitation, kitchen utensils, transportation. Over US$800,000 dollars was received from over twenty agencies and an equal number of individuals, churches and anonymous gifts. The funds were used to purchase goods that were distributed in the three areas where AMC has a presence. Food aid, sanitation packets, kitchen utensils, black plastic for temporary roofi ng, building supplies, mattresses and hammocks, mosquito netting and medicines were among the most important materials sent to local community leaders for distribution. In AMC’s Central Offi ce, more than 15 of the 35 staff worked full-time on the emergency response and all three of the RAAN Field Teams, plus additional volunteer support from AMC

AMC,” comments Elvis Diaz, Truslaya (Tasba Pri) judicial leader. AMC also served as a gateway for other agencies offering direct aid to enter into the region. AMC’s reputation and levels of organization at the grass-roots level provided a social base which was fundamental to the success of the aid distribution. “This committee has responded to the need and we have tried to be

transparent,” emphasizes Yamileth Palma, AMC Project Manager for the RAAN. AMC also brought reports of the impact of and response to the hurricane to the national and international media. Tomabilo Saballo, community leader in Sumubila (Tasba Pri) summarized, “The needs are being met. “ The rehabilitation phase is now focused on four areas: agricultural production, rebuilding infrastructure such as houses, latrines and wells, emotional recovery and healthcare. This is some of the ongoing rehabilitation work in the two most affected regions where AMC has permanent presence - Tasba Pri and Waspam: Beans, corn, rice and vegetable seeds totaling 3,400 hundredweight sacks have been distributed; 350 latrines have been repaired, and 50 wells restored. Sheets of galvanized metal roofi ng, which must be transported out to the region, are currently being distributed. A psychologist is working with AMC to provide a space for emotional recovery after the disaster. Many of the survivors lived in shelters for more than a month and

Sheets of galvanized roofi ng are currently being distributed in the hur-ricane affected areas. Photo: AMC

See Hurricane, p. 7.

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were caught in a cycle of post-traumatic stress syndrome. Health kits and mobile medical brigades have been coordinated with the government ministry of health to provide primary health care to the population. The rehabilitation activities are in line with long-term strategies for AMC’s Waspam-Río Coco and Sahsa projects for agricultural model farms and commercial centers as well as disaster prevention and mitigation. AMC has developed an early-warning system along the Coco River, but not as yet in Tasba Pri, making this a priority for the future. The foundation for the emergency response to be successful is the local organization that AMC has facilitated since the late 1980s and the collaboration of donor agencies. The goal for the future is a transition to secure food access by the population and more preparedness for the inevitable natural phenomena that are common in the region. To avoid potential famine, the AMC Field Team worked over the Christmas and New Year Holidays to ensure that seeds were distributed in time for the third planting cycle in early January. The youth promoters in Bilwi put their work in sexual and reproductive health on hold in order to go out to local barrios in that city and help with clean-up and aid distribution. AMC Field Team members, many of whom are indigenous to the region, suffered personal and material losses, but continued to work to coordinate the response to communities that are only accessible by water (in the case of the Coco River) or by footpath (as in Tasba Pri). “In the life of a poor person we must struggle, in good times and bad, and we depend on the help offered by neighboring communities and from other nations who help us to benefi t us when disaster strikes,” says Bernestina Taylor – Miskito community leader in Sumubila (Tasba Pri). Where did the support come from? The following AMC partner agencies have supported the emergency response: Action by Churches Together, CRWRC, Foundation Against Hunger, Horizont 3000, Tearfund, ActionAid, OIKOS/European Union, Farmamundi, SNV - Netherlands Development Organization, Norwegian Church Aid, Church World Service, Mennonite Central Committee, Oxfam GB, and Dan Church Aid. Individuals, Churches, and other

agencies have made and/or channeled donations, among them: Nicaragua Network, FH International, Quail Roost Foundation, El Porvenir, and the Uncasville Community. Also local support has come from schools, cultural centers and individuals in Nicaragua responding in solidarity with their own people. AMC is especially grateful to the Nicaragua Network for providing a donation channel on its website which raised more than U$6,000 for hurricane response. The needs are still great – in housing, schools, agriculture and the continued work of preparedness and disaster prevention. AMC’s response is only for a small percentage of the existing need. The health and wellbeing of the communities where AMC works depend on a collaborative effort of local, regional, national and international contributors. We say MUCHAS GRACIAS for your generous support to bring hope to the most vulnerable people in Nicaragua.

Hurricane, from p. 6.proposal drafted by the Constitutional Liberal Party (PLC) and the Nicaraguan Liberal Alliance (ALN) was revealed to the media. The proposal would benefi t over 200 former and current public offi cials who committed, or are alleged to have committed any type of crime between 1990 and 2006. The legislation is proposed as a legislative decree rather than a law in order to avoid an inevitable presidential veto and so that it would go into effect immediately if passed by the National Assembly. It is so far unclear as to whether the PLC and the ALN will be able to summon up enough support to pass the amnesty which would benefi t the leaders of the two parties, namely Arnoldo Aleman (convicted of massive fraud) and Eduardo Montealegre (being investigated for massive fraud). Intense talks between the Constitutional Liberal Party (PLC) and the Nicaraguan Liberal Alliance (ALN) resulted on Jan. 9 in an agreement to form a Liberal coalition to run unity candidates in the November municipal elections. The Liberal coalition candidate for mayor of Managua will be ALN leader and failed presidential candidate Eduardo Montealegre.

News, from p. 12. Apparently the Sandinista Renovation Movement (MRS) and the Bench for National Unity, two minority blocs in the legislature, will not be joining in a unifi ed anti-Sandinista coalition for the municipal elections. There was intense speculation about the fact that former president and convicted felon Arnoldo Aleman attended the meeting even though he was supposed to be under house arrest. It soon surfaced that Judge Roxana Zapata of the Penitentiary System Court had ruled that Aleman could return to his previous “family life regime” until the Supreme Court ruled on his case. On Jan. 10 came another surprise when the 16 justices of the Supreme Court unanimously ruled in favor of President Ortega’s installation of the Councils of Citizen Power (CPCs) by presidential decree. The Councils, however, will not be able to form part of the structures of public administration or receive government funds. International Relations February saw a rise in tension between the Nicaraguan and Colombian governments over the maritime border dispute currently being considered by the International Court of Justice (the World Court) at The Hague. In 1928, when Nicaragua was occupied by the US Marines Corps, an agreement was signed between Nicaragua and Colombia giving the latter sovereignty over three Caribbean islands situated approximately 100 miles from the Nicaraguan coast; San Andres, Santa Catalina and Providencia. No maritime border was established as part of the agreement though Colombia has ever since claimed sovereignty over the maritime area up to and surrounding these islands (situated to the east of the 82nd meridian west longitude). On Dec. 13, 2007, the World Court ruled that Colombia’s claim that the 82nd meridian marks the border between the two countries was invalid. The court has yet to defi ne where the maritime border does lie, however. [To read the Court’s judgment, go to: http://www.icj-cij.org/docket/fi les/124/14303.pdf ] On Feb. 8 during a public gathering broadcast live on national TV and radio, Ortega said that he had ordered the Nicaraguan military and National Police to protect Nicaraguan fi shermen working in the area. He said that the two

See News, p. 8.

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retailers begin to offer Fair Trade Certifi ed products, is there a danger that the Fair Trade standards will erode? The standards will not erode. Fair Trade standards are established by Fairtrade Labeling Organizations International (FLO) and address social and economic development, environmental management, and labor conditions on Fair Trade farms. For example, the Fair Trade standards require that producer groups receive the established Fair Trade fl oor price for their products. Therefore, all US companies licensed to sell Fair Trade Certifi ed products must pay Fair Trade fl oor prices to Fair Trade farmer groups for those products. TransFair USA, the only independent certifi er of Fair Trade products in the US, verifi es industry compliance with the Fair Trade criteria. FLO uses a multi-stakeholder process to set the Fair Trade standards. Fair Trade producer networks, workers, Alternative Trade Organizations (ATOs), conventional traders, Labeling Initiatives (including TransFair USA), and independent consultants specializing in Fair Trade and labor issues are all involved in the standards approval process. This thorough process ensures that a broad range of stakeholders’ views are considered in setting and reviewing Fair Trade standards. Rather than getting weakened, Fair Trade standards are subject to an ongoing process of review, improvement and strengthening. For example, in December 2005 FLO tightened the standards for hired labor on Fair Trade farms (for product categories in which the FLO standards incorporate hired labor, such as tea and bananas). Now, workers on Fair Trade farms must democratically elect a workers’ committee to represent them and negotiate with management to defend their rights and interests. This clause goes beyond the previous requirement that management simply respect the right of freedom of association and collective bargaining. Similarly, Fair Trade has always had strong environmental standards and a strict list of prohibited agrochemicals, but in 2005 FLO reviewed and strengthened them. As a result, the new standards contain clearer objectives, provide more guidance to producers on how to comply, and are more specifi c and therefore more

practical to audit. How does TransFair USA protect against corporate “greenwashing”? TransFair seeks real commitment and real partnerships with companies that have a genuine interest in investing in and increasing the market for Fair Trade Certifi ed products. We believe that when companies make the necessary investments in marketing, promotion and consumer education, their Fair Trade products perform much better in the marketplace, and so we work with them to invest appropriately as part of their commitment to Fair Trade. At the same time, we respect the right of companies to test the market for Fair Trade and then grow their volumes over time, based on consumer response. Particularly for large companies, it is unrealistic to expect them to convert large portions of their overall business to Fair Trade overnight, before demand has been proven, and before they can stage the reorganization of their supply chains on the rest of their business. Our approach has therefore been to engage with companies, encourage them to test the market, and require a commitment on their part to marketing support, increased volumes, and growth of their Fair Trade product lines over time. Even small percentages of Fair Trade purchases by very large companies can translate into real benefi ts for tens of thousands of farmers. If we take a rigid approach with regard to minimum volumes or percentages -- presumably in defense of the credibility of the label -- we could potentially lose signifi cant volume to the detriment of the farmers we seek to serve. If, on the other hand, TransFair is perceived as condoning greenwashing (when companies engage in minimal efforts toward social or environmental responsibility in order to enhance their public image), we risk losing credibility with consumers, who form part of the movement upon which the long-term success of Fair Trade depends. Thus, we seek a balanced policy that is based on engagement, partnership and mutual trust, one that acknowledges the particular business challenges of conversion to Fair Trade, and one that defends the credibility of the FTC label and the mission of TransFair. Finding that balance is not always easy, and we welcome the dialogue and input of our allies in preserving this balance.

Expansion, from p. 4.institutions plan to begin patrols to the east of the 82nd meridian as part of the regional fi ght against drugs shortly. On Feb. 11 the Nicaraguan and Colombian representatives at the International Court of Justice met with the President of the court in order to discuss the future of the case. During the meeting Colombia was to be given a deadline by which to present its case against Nicaragua’s claim to sovereignty over the disputed area. The Sixth Summit of the Bolivarian Alternative for the People of Our America (ALBA), the Latin American and Caribbean economic, political, social and cultural integration project, took place on Jan. 25 and 26 in Caracas, Venezuela. Government representatives of the four member countries (Venezuela, Cuba, Bolivia and Nicaragua) were accompanied by government representatives from Honduras, Haiti, Dominica, Ecuador, Antigua and Barbados and San Vicente and the Grenadines. Dominica became the fi fth country member of the initiative while the representatives of the other countries expressed interest in joining ALBA in the near future. Perhaps the most signifi cant announcement to come out of the sixth ALBA Summit was the founding of the ALBA bank with US$3 billion. It was announced that the ALBA bank, which will fi nance social and economic development projects in Latin America and the Caribbean, will be fully functioning within two months. On January 29, during his message to the nation about the 6th Summit of the ALBA, Ortega said that Venezuelan aid to Nicaragua in 2007 exceeded US$385 million. Ortega went on to announce that Venezuelan President Chavez had promised another US$372.2 million for 2008. This money will be used for, among other things, road repairs in impoverished areas across the country, the purchase of Nicaraguan-grown beans to sell to poor families at below market prices, to develop Nicaragua’s cattle farming industry, for the Zero Usury and Zero Hunger programs and to repair the pier in Puerto Cabezas which was partially destroyed during Hurricane Felix in September 2007. Labor Issues A joint declaration of fi ve labor unions from Central America protested the threat by eight multinational companies with

News, from p. 7.

See News, p. 9.

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receive substantial debt cancellation, they suddenly have more access to cash freed up by the cancellation – and thus look more attractive to opportunistic vulture funds which have bought the country’s debt for a few cents on the dollar but now demand payment in full. An August 2007 report by IMF and World Bank staff found that 11 out of 24 poor countries approached said they were involved in litigation by commercial or vulture

Jubilee, from p. 1. creditors worth a total of $1.8 billion with 46 creditors. At this very moment, Zambia, Cameroon, Democratic Republic of Congo, Republic of Congo, Uganda, Sierra Leone, Nicaragua, Honduras and Liberia are facing judgments to pay, pending suits, or the threat of litigation from vulture funds or other commercial creditors. The Jubilee Act calls on the Secretary of the Treasury to collaborate with

appropriate government agencies to stop the practices of vulture funds by designing legal remedies to curtail vulture fund activity; by providing legal support to countries being sued by vulture funds; and by providing technical assistance to advise governments likely to be targeted by vulture funds. Another challenge facing nations that have received debt cancellation is the fact that new lenders often threaten to send countries that benefi t from debt relief back into unsustainable debt. To ensure that this doesn’t happen, the Jubilee Act calls on our government to provide that the international fi nancing needs of low-income countries are primarily met through grants rather than new lending and mandating the development of policies to ensure that all creditors work together to preserve the gains of debt relief The Jubilee Act is one of the most widely supported anti-poverty bills in Congress. We have a historic opportunity to end debt and make big step forward in the fi ght against poverty. There are only 55 working days on Congress’ calendar this year (most of them before June) and Congress is going to vote on the Jubilee Act soon! CALL TODAY Capitol Switchboard: (202) 224-3121ORDER POSTCARDS to write to CongressGo to www.jubileeusa.org/measure or write to [email protected]

textile factories within the Nicaraguan Free Trade Zones to suspend operations in the country claiming they have experienced a signifi cant reduction in orders from the US. Over 8,850 jobs are at stake. Miguel Ruiz, General Secretary of the Jose Benito Escobar Sandinista Workers Central, one of the union federations which signed the declaration, explained he believes that the real reason behind the threats is not a reduction in production orders but the fact that the Sandinista (FSLN) government has “changed the rules of the game” for the companies. Among other things MITRAB, under the FSLN government, requires multinational companies to comply with the national labor and environmental laws and is working to make MITRAB inspections more effective. On top of this, the government recently announced an

increase in the minimum wage. On Jan. 17 after ten days of negotiations, representatives of the Ministry of Public Finance, the biggest labor unions and the small, medium and micro companies, signed an agreement for an immediate 15% increase in the minimum wage. Mario Zelaya, the representative of the Superior Council of Private Enterprise (COSEP) which represents Nicaragua’s major capitalists, did not sign the agreement saying “there was no pressing need” to do so as the increase had already been announced by President Daniel Ortega on Jan. 16. During the negotiations COSEP had been pushing for a 12% increase while the National Workers Front demanded a 20% increase. Human Rights For the fi rst time since therapeutic abortion, which previously allowed abortion to save the life of the woman,

was banned during last year’s election campaign, President Daniel Ortega spoke publicly on the issue in late December. According to Ortega it is “a lie that lots of women are dying as a result of the legislation… What they are saying is totally false.” Ortega insisted that the Ministry of Health (MINSA) guidelines “oblige” doctors “to attempt to save both [the woman’s and the unborn child’s] life. That would be the ideal outcome. If, in the end, it is impossible to save both lives though, then logically either the mother or the child will have survived.” Finally, Ortega said that he would have to send the text of the new Penal Code back to the National Assembly for fi nal revision because there are a number of anomalies included within the legislation. He did not mention whether or not the issue of the abortion ban would be included within these revisions.

Protesters demand debt cancellation in Haiti. Photo: Haiti Justice Blog

News, from p. 8.

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Alternatives to corporate Fairtrade Trading arrangements as practiced by many of the Alternative Trade Organizations (ATOs) do improve the

books to auditors. Conversely, most large corporations who retail the coffee are secretive about how much Fairtrade coffee they sell. Movement companies are largely transparent about how much

remain in the producing community.Beyond the mainstreaming debate: Fairtrade and food sovereignty Fairtrade’s mainstreaming debate refl ects growing disagreements on

Prodecoop in Nicaragua

Challenges, from p. 5.

An Alternative Trade Organization like Equal Exchange can make a big difference in people’s lives as this example from Nicaragua shows. One of the most important roles of Fairtrade has been to help build and sustain farmers’ cooperatives. In Nicaragua, when the leftist Sandinista government lost power in 1990, farmers’ cooperatives found themselves without any government support. They formed cooperatives of many smaller cooperatives to provide marketing, credit, and other programs. Prodecoop (Promotora de desarollo cooperativo de las Segovias), was the fi rst such organization. Rosario Catellón, co-founder of Prodecoop, tells the story: “In 1991, the fi rst cooperatives that today make up Prodecoop fi rst exported to the U.S.-based Fairtrade coffee buyer, Equal Exchange. Some of the cooperative members of Prodecoop had taken out loans during the Sandinista revolution, but the new government demanded immediate repayment. The bank held their coffee crop as collateral, and put their land into foreclosure. The representatives of the member cooperatives came to the Prodecoop offi ces with this diffi cult situation. “Jonathan Rosenthal, then Executive Director of Equal Exchange, listened to the cooperatives, and took the risk that no bank or other fi nancial institution was willing to take. He advanced the cooperative a portion of the purchase of the coffee. After negotiations with the bank, Prodecoop bought the coffee back from them, promising to apply all the income from the sales to pay off the cooperatives’ debts. “Equal Exchange contributed to bringing Prodecoop out of anonymity. They were the fi rst buyer of our coffee, and helped to make our coffee known in the North American market. Jonathan Rosenthal and Equal Exchange have been dedicated to building bridges, so that those who have historically been disadvantaged can pass over to the other side, where the coffee industry is, and break the long chain of intermediaries. Thus they can access better incomes; alleviate poverty; achieve economic, environmental, and social sustainability; and most of all regain their hope for the future and for themselves. The small farmers of Prodecoop never imagined that they would, over and over again, be sitting down to negotiate face-to-face with North American and European coffee importers and roasters. Prodecoop has been an example for the country and the world. It has motivated the resurgence of many cooperatives of small farmers in Nicaragua and in other countries.”

conditions and opportunities for the coffee cooperatives with whom they trade directly because certifi cation is seen as a fl oor and not a ceiling. Roasters like Equal Exchange in the U.S. and Cafédirect in the UK are committed to selling 100 percent Fairtrade Certifi ed coffee, and using certifi cation as a point of departure for forming meaningful, long-term partnerships with producer cooperatives. Thanksgiving Coffee pays quality premiums up to 40 cents over the Fairtrade price. Owner Paul Katzeff searches out Certifi ed Organic cooperatives and helps them obtain Fairtrade certifi cation, and then works diligently with the producing

the fairness, development claims, and the future of Fairtrade. These differences are rooted in tensions between market-based and movement-based strategies for social change. On one hand, market-based certifi ers champion the benefi ts of the increased volume made possible by a relatively low Fairtrade fl oor price. On the other, many producers and Alternative Trade Organizations argue for prices based on production costs, and worry about the loss of control and authenticity of Fairtrade. This puts the Fairtrade movement in

See next page.

communities to help improve the quality of the coffee (see Box 1 for an example of a successful partnership). The direct trade model of the Community Agroecology Network (CAN) localizes the value added process and provides an alternative model to certifi cation. Other companies are jointly owned by participating farmer organizations. Farmer-ownership models not only return more of the retail value to farmers, they give farmers more sovereignty in the process of bringing their produce to market. The Alternative Trade Organizations share a number of characteristics that differentiate them from the much larger, corporate Fairtrade players: Transparency. Fairtrade certifi ed producers are required to open their

they pay farmers for their coffee, and what portion of their sales is Fairtrade. Long-term commitment. Movement companies work with producer cooperatives to invest in the quality of their coffee. This might mean training coffee tasters to be able to recognize and strive for quality coffee, or helping farm cooperatives diversify their production into other products, or supporting health and education projects. Localizing the value of coffee. Traditionally, most of the value of coffee is exported, generating big profi ts at the roasting and retailing stages of the value chain. Even if farmers sell at the Fairtrade price, this unequal balance of power remains. Movement companies pursuing farmer-owned and direct trade initiatives allow more of the value of coffee to

a diffi cult position. If the movement is isolated from the mainstream, it may not be relevant enough to change the farmers’ situation. But by interacting with the mainstream without asking critical questions, the movement risks becoming diluted, and the benefi ts may decrease. The mainstreaming emphasis of Fairtrade risks marginalizing activists and farmers—the very drivers of social change that make Fairtrade more than just a “slightly better market” for poor coffee farmers. The fairness of Fairtrade is more than a simple ethical debate. Fairness regarding transparency, risk, labor practices and profi ts are a refl ection of market power. In the present unregulated coffee market, rules are set by those who control the most

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This family has benefi ted from belonging to Prodecoop. Photo: Rusty Car Coffee.

lucrative parts of the value chain: roasting and distribution. Until farmers are able to own substantial shares in roasting and distribution, they will always be subject to the levels of “fairness” acceptable to those who control the coffee market. Luckily, there are already encouraging experiments within the larger Fairtrade coffee community that shift power in the value chain towards the coffee producers.

From previous page. cooperatives, the students and consumers who advocate for Fairtrade, and the NGO advocates that run major Fairtade campaigns have something more than a safety net in mind: they want an end to hunger, poverty, and the extreme injustice brought about by “free” trade. They don’t want to settle for a safety net, they want Fairtrade to be a strategy for sustainable development. While such safety nets ensure farmers security from steep price drops and

on a sense of belonging, commitment and participation in decision-making. But because Fairtrade is a business as well as a movement, this participation also depends on ownership. To ensure the politically committed participation of farmers in Fairtrade, they must not only be “stakeholders” in development, but “shareholders” in the business. Giving farmers a majority stake on the Fairtrade Labeling Organization (FLO) board of directors would go a long way towards this goal. It is unlikely that large corporations will advance a farmer-driven, movement agenda for social change within Fairtrade. They will attempt to sell as little Fairtrade coffee as possible at the lowest possible price, counting on their vast market power to keep Fairtrade farmers coming to them. This is not a reason to give up the Fairtrade market. On the contrary, to keep Fairtrade from becoming irrelevant to farmers’ livelihood struggles, it is up to alternative organizations, NGO’s, and activists to help poor coffee farmers grow not just their market, but their market power, not just their business, but their controlling share within the business. Ultimately, the ability to hold the corporate players in Fairtrade publicly accountable to more equitable standards depends on the degree that the Fairtrade movement advances farmers’ market sovereignty—the ability to determine how to produce, process, sell and distribute in ways that are fair and sustainable. Building market sovereignty from the premium fl oor up will certainly not be easy, and will be strongly resisted by the corporate players. Fortunately, the Fairtrade movement is dynamic and constantly evolves new forms of social, economic and political organization. Even FLO surprised skeptics by rewriting its constitution to include seats for farmers’ organizations on its board of directors, taking concrete steps towards letting farmers fi nally participate in ownership of Fairtrade certifi cation. As farmers’ power grows within Fairtrade, and as the movement links strategically with peasant and consumer movements for social change, Fairtrade will be well positioned to make good on its development claims. This article has been edited from an original version published by Food First, which can be found, with full references, at: http://www.foodfi rst.org/node/1794

Scaling up these experiences would help tip Fairtrade’s balance of power in favor of farmers rather than large corporations. Safety net or development strategy? The neoliberal position that markets themselves are suffi cient to reduce poverty, end hunger, and promote sustainable development, is a notion that has been refuted by two decades of disastrous corporate-led globalization. Fairtrade marketers who fl agrantly claim that Fairtrade “empowers farmers” are in essence claiming certifi cation is the small adjustment needed to make good on the neoliberal promise. When coffee prices dropped catastrophically in 2001 and 2002, it became clear that Fairtrade price fl oors provide an essential safety net for farmers. One can fi nd hundreds of testimonies from farmers who are acutely aware of this value, because they are widely published on the websites and promotional materials of certifi ers and coffee companies that market Fairtrade products. However, the farmers who organize

extreme poverty, a comprehensive development strategy is needed to provide farming communities and organizations with opportunities to strengthen local institutions and farmers’ market power. It is clear that certifi cation in and of itself—the kind of certifi cation that is being adopted when big corporate players get into the Fairtrade business—fails to deliver on these larger issues. To make good on its development claims, rather than mainstreaming, Fairtrade needs to intensify its work with peasant movements in the Global South to roll back corporate globalization and re-establish the social institutions and rural policies needed for productive, healthy agriculture. Looking forward: building market sovereignty The future of Fairtrade depends on the degree to which it can bring producers, consumers and roaster-distributors not just into its market, but into the growing social movements for agrarian change. It is clear that movement building depends

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The News from Nicaragua[This is only a brief overview of some important items in the news. For a fuller picture, read the Nicanet Hotlines archived at www.nicanet.org.]US Role The appointment of Robert Callahan as the new US Ambassador in Managua was questioned by the Nicaraguan press in early February. Callahan, who was the spokesman of the US Embassy in Honduras during the 1980s from where Washington fi nanced and trained contra troops, was due to take over from current Ambassador Paul Trivelli by the end of the month. Callahan worked extensively with John Negroponte who was the US Ambassador in Honduras during the Contra War On Jan. 29 the weekly magazine Confi dencial published a translation of an article by U.S. journalist Stephen Kinzer which asked why the US government would want to “rub salt into Nicaragua’s wound by naming as Ambassador someone who collaborated in one of the bloodiest wars of the country’s history?” A top level mission from the US Drug Enforcement Agency (DEA), led by Deputy Assistant Secretary of State for Counternarcotics Christy McCampbell, visited Nicaragua on Feb. 4 – 5 to meet with Nicaraguan President Daniel Ortega and others in order to discuss the future of Nicaragua’s contribution to the fi ght against international drug traffi cking and organized crime. [In January Ortega publicly criticized the DEA’s presence in Nicaragua saying that the agency makes direct payments to Nicaraguan police offi cers and had plans to set up a telephone espionage system. The US Embassy in Managua denied these claims.] Ortega said, “During 2007 and the beginning of 2008 the Nicaraguan police and army have delivered important blows to drug traffi ckers.... I would say they have carried out the most signifi cant drug raids in the Central American region, despite working with such limited resources.” US citizen Eric Stanley Volz, who was convicted in April 2007 of the rape and murder of 21 year-old Nicaraguan Ivana Jimenez Alvarado and sentenced to 30 years in prison, left Nicaragua for the US on Dec. 21 after two justices at the Granada Appeals Court ruled in favor of

his appeal of his sentence. Human Rights Ombudsman Omar Cabezas said that Volz is related to a “very powerful Republican Senator” who has used all his “fi nancial means” in order to bring about Volz’s liberty. Government programs The 2008 school year began on Feb. 4 with what Minister Miguel De Castilla described as an “extraordinary” number of pupils. The Ministry of Education (MINED) said that preliminary reports, not including fi gures from some rural areas, showed that already 1.25 million have been registered. MINED has also scheduled three shifts of classes a day at many schools.

Nicaragua. The agreement contemplates a total budget of US$3.55 million, US$1 million more than the budget of a similar agreement signed last year for US$2.5 million. As a result of this agreement, the Nicaraguan government has for the fi rst time committed itself to paying for healthcare for retired teachers. US$105,000 has been allocated for these ends during 2008. A survey carried out by the Nicaraguan Institute of Social Studies and Investigations indicates that there is majority support for the government’s social programs. 2,100 people from across Managua and the surrounding rural areas were interviewed as part of the survey. All the people interviewed were over 16 years of age, 52% were women and 48% were men. 68.3% of those interviewed describe the changes in the public health system brought about by the Sandinista (FSLN) government this year as “very good,” while 71.9% consider the re-nationalization of the education system is a “positive” move. Government program Zero Hunger was considered as “good” or “very good” by 55% of those interviewed.Economic News On Dec. 5 the Minister of Public Finance Alberto Guevara announced that the Central Bank will buy US$1.326 billion (94%) of Nicaragua’s foreign commercial debt as part of a plan to reduce the burden of the country’s external debt. That amounts to 94% of Nicaragua’s foreign commercial debt. Payments will be made to 118 creditors for debt contracted principally by the Somoza government of the 1970s. The debt was bought back at a price of 4.5 cents on the dollar. President of the Nicaraguan Central Bank Antenor Rosales said that as a result of the repurchase of the commercial debt Nicaragua’s foreign debt will be reduced from US$3.456 billion to US$3.259 billion. The buyback of this debt was brokered by the World Bank which also donated US$61 million toward the deal. One has to hope that the US$84.6 million remaining debt does not fall into the hands of so-called vulture funds which buy previously unpayable debt and sue in U.S. or British courts for full payment.Politics On Feb. 6 the text of the amnesty

See News, p. 7.

Government spokesperson Rosario Murillo announced plans to reopen the Child Development Centers that were created during the fi rst Sandinista (FSLN) government (1979 – 1990). The centers provided public day care where the babies, toddlers and preschool-aged children of poor working or studying mothers, often single, could be looked after, educated and fed. After the FSLN lost power in 1990 the Child Development Centers were starved of funding and, as a result, most have now either closed or been privatized and charge too much to be accessible to most women. On Jan. 8 the Ministry of Education and representatives of eleven different teacher unions signed an agreement on benefi ts for working and retired primary and secondary school teachers in

Former President Arnoldo Aleman was re-leased from house arrest. Photo PL.