Category Archives: Poverty

Cultivating the golden bean: Volume and quality

Cultivating the golden bean: Volume and quality

René Mendoza, Fabiola Zeledón, Elix Meneces, Hulda and Eliseo Miranda[1]

Up until 2010 we buyers who were looking for quality coffee, we first would come to Nicaragua. After 2010 we no longer did, first we go to Costa Rica, then Honduras … (Coffee buyer).

In the 60s and 70s tons of people came to Nicaragua from El Salvador and Honduras looking for work, now we are the ones who go to those countries, looking for work. (Flavio Cardoza, producer).

In the dry coffee mills imperfect coffee reached double digits in this 2019/20 cycle: 10%…15%; black beans, faded, chipped, full black beans, insect damaged beans…The fungus moved from “slight” to “severe” and smelled like fish. On the farms of producer families instead of doing “three passes” (three passes of picking red and almost ripe coffee during the coffee season within 2 months), they saw themselves forced to do only two, and even only one pass, because of lack of pickers (labor), while they neglected to regulate their coffee pulper which resulted in those broken and chipped beans. What makes the coffee quality and its production drop? In this brief article we list 4 basic elements on coffee farms in Madriz, Nueva Segovia and Matagalpa, and at the end we offer some suggestions.

What affects coffee production and quality

The literature is full of technical reasons. We list what we observed in this 2019/20 cycle, and what producer families commonly say, based on their own observations, as well as the staff in the dry mill.

Figure 1 shows two scarce resources and two limiting structures, which have a high impact on coffee volume and quality.

A first element is the reduction in nutrients for the coffee plants. In the 2018/19 cycle, the prices for coffee were low. In September 2018 it dropped to $98, and in December 2018 it was at $100, while the prices for agrochemicals rose, as a result of the new tax policy in the country. Not only that, but the financial institutions implemented a policy of loan restructuring without providing new loans. In other words, producer families saw their resources dry up, which is why they applied little or no agrochemical or organic inputs. This had a repercussion on coffee quality, which was seen in the current 2019/20 cycle, precisely when prices went up, reaching $123 on December 16, 2019. Consequently, producer families thinking was “I am going to receive now  the same thousand córdobas as last year; this season money is tight, in spite of the fact that prices are better than in the last cycle.”

A second element refers to the scarcity of labor. Pickers are going to coffee fields in Costa Rica and Honduras. Their argument: “They pay us better there, in addition we pick more than we do here.” Isn´t it the same coffee? Yes and no. Most of the coffee of Costa Rica is sold as specialty coffee at better prices; while Honduras has passed Nicaragua in production volume. Both countries have greater productivity, even though in Honduras it is due more to increase in area. This means that the person who picks coffee on small farms in Nicaragua, picks less in a day because the farms have less production; in addition, the price paid “per lata”[2] is low, and varies between 30 to 50 córdobas, plus food, per lata. “It doesn´t work for us,” the pickers complain. Producer families argue that they would prefer to pay all in cash (without food), but the pickers want food, and many of them pick very little, and by midday are already out of the fields and asking for their 3 meals. This situation means pickers are scarce, the consequence of this is that the coffee is not picked on time, with a corresponding loss in volume and quality.

A third element is the mentality of believing themselves to be coffee growers in mono-cropping systems. The producer families who established their farms with coffee and other crops, starting in 1990, after the “big war”, are now getting beyond 60 years of age, which is why their offspring have been taking over farms already “cut up into pieces” through inheritance. Given that in the last 15 years families have become dependent on coffee as a mono-crop, a good number of these offspring, as new family units, inherited also this culture of feeling themselves to be “coffee producers” with 2 to 4 mzs of coffee, which at the most produces 10qq export coffee per manzana, which is why they lost the culture of working “from sunup to sundown” in taking care of the farm, and no longer go out to pick coffee on other farms. Their problem is that they inherited coffee fields affected by coffee rust and anthracnose, which they have to replant now on land which is more worn out (low fertility). Consequently, that combination of feeling themselves to be “coffee producers” and at the same time not having income in the months between March and October has them “underwater” in financial and marriage crises, which is why the children are growing up without Fathers, while they neglect their farms, the regulation of their coffee pulpers, drying, diversification…

The last element is the variation in the climate. Rains were expected for December, which help the grain thicken and ripen; but it did not rain, rather the temperature increased, which is why a good part of the flowering period was lost and the coffee with little liquid did not thicken. The beans that were able to thicken did not reach their optimum level. Many beans, on being picked, pulped and washed, looked as if they had been dried for 6 days. The rains that started on January 10th were not expected, were unnecessary, their prolongation for more than 10 days damaged the roads, reduced the time for picking the coffee, and made it difficult to transport the coffee, and hindered the sun drying process.

The combination of these elements has the power of undermining plans and commitments, and above all, making the families depressed before the harvest ends.

Recovering coffee, the farm, the community

Figure 2 lists the ideas that lead us to confront the 4 elements that affect coffee volume and quality.

Some people from that generation that is now passing 60 years of age are still a good reference point. “My Dad gets up at 4am, drinks his coffee and goes out to work the farm; if in the morning he goes to town to do some task, and returns at 4pm, he still goes to the farm.” (Rebeca Espinoza, Samarkanda). If we add to that culture of dedication to work, youth dedicated to studying their realities and innovating, the families could save resources and invest them, doing their numbers, producing fertile land that would provide them product volume and quality.

If that combination responds to a long term perspective, one that avoids “cutting property into pieces” and children growing up without Fathers, and is committed to the diversification of the farm and  processing what they produce, these families could mobilize their members for activities like coffee picking on their own and their neighbor´s farm, and would attract workers from other places.

If we cultivated that work and study culture under a long term perspective, in a space of renovated cooperatives, the members of both sexes and different ages from the same community could cooperate better, and improve their collective actions, like transporting, drying and milling their coffee in their own community, selling any of their products, producing their own farm inputs, protecting and saving water, or preventing domestic violence.

Conclusion

Recovering the coffee quality that we achieved between 1996 and 2005, which the buyer refers to at the beginning of this text, is a challenge. Getting our people to stay in the country picking coffee, which Flavio observed in hindsight, is another challenge.

Both challenges are not achieved with the hundred year old ideas of the elites: “More inputs, more production”, “better price, more quality”, “investing only in coffee to buy the food for the year”, “the more members there are, the better the cooperative”, “farming is something men do”. The consequences of this cookbook, sadly reproduced by most of the farm cooperatives today, are destroyed families and farms, degraded environment, and the advance of elites expelling the peasantry from their communities.

Addressing those two challenges is possible with families that change as people, as they build a new type of cooperative, one in which families cooperate with one another to generate new technologies, organize and analyze new information, and add value to the coffee and a dozen agricultural products.

[1] The authors are part of a network that facilitates the training of cooperatives governed by their members.

[2] Lata refers to old cooking oil cans that were used to measure picked coffee beans for paying workers. The term is still used, although the measuring is now mostly done with 5-gallon plastic buckets.

Equitable distribution of surplus in cooperatives

Equitable distribution of surplus in cooperatives

René Mendoza Vidaurre[1]

Paying back is improving

The revolution and the agrarian reform came, people knew the word and their eyes were opened, many organized into cooperatives and received land, seed and technology, and they said “we are in power.” Within years they sold the land and forgot even the word. They received it, and lost it.

A woman received a cow and in months paid for it with a calf, which was given to another family. She understood that the cow pays for itself, she felt that she paid back, and made an effort along with other families. Paying back is improving.

(Based on a conversation with Gregorio Solórzano, Municipality of Cinco Pinos, Chinandega, Nicaragua)

This parable recalls the historic rules of indigenous and peasant communities. If the action of “giving” is connected with “paying back”, like the woman with the cow and the calf, their lives improve. While “receiving” unilaterally, without “paying back” to the community, creates a false world (“we are in power”) where people are left worse off (“without land and power”). The paradox is that “paying back” is not losing, it is gaining: it makes the person “make an effort” within a collective framework and community space.

That collective framework constitutes the paradoxical difference. In the case of the woman who received a cow and paid back with a calf, an arrangement (agreement, rule) underlies which she fulfills, an arrangement that is connected to a virtuous millennial indigenous institution, “giving-receiving-paying back”[2]. In the case of the beneficiaries of land on the part of the government, a damaging arrangement  underlies it, subordinating oneself and depending on the government, something that leads them to be connected to another historical institution, this time a counterproductive institution, “easy come, easy go”; people lose and the government loses. The gaze of the woman is toward the community, while the gaze of the people in the cooperative is directed outside the community.

Giving-receiving-paying back is growing in collective spaces mediated by rules that are connected with virtuous endogenous institutions of the people themselves. Within this framework, how can distributing (“paying back”) in the cooperatives be the key for growing with equity? Perhaps diminishing is growing?

In this article we study these questions in light of the cooperatives, even though it can be generalized to associations, associative enterprises or NGOS with initiatives under the framework of the social and solidarity economy. We start conceptualizing distribution as a different idea from the neoliberal economy, where the market is the great distributer. Then we look at five ways for the distribution of surpluses: legal reserve, cooperative reinvestment, social-educational fund, direct resources to members, and retribution by way of a member´s rights.  Then we work on how to carry them out. We conclude reconceptualizing equitable distribution as a cooperative concept and one from the social and solidarity economy, that goes along with the democratization of cooperatives, and connected to endogenous institutions of the peasantry.

1.    Distribution rules and policies

In capitalism “the invisible hand” attracts resources and distributes them with inequality, in dependence on the financial power of the actors, their connections, the support of the State for elites (e.g the policy of low taxes for mono-cropping enterprises), and guided by the rule “even the monkey dances for money”. The mediation network captures the resources and returns them as money that buys new products (and labor), mediated by institutions that worsen that inequality: usury, future purchases (crop lien system) and indebtedness. The capitalist, be it merchant, banker or industrialist, is the absolute owner of the surplus.

Polanyi (1976)[3], in an anthropological study, worked on the idea of reciprocity, distribution and interchange. For the topic that concerns us he says: “distribution designates the movements of ownership toward a center and then toward the exterior”, and added, “distribution depends on the presence to some extent of centrality in the grouping”” (1976:7). Santana (2014: 91)[4], rereading Polanyi, indicates that “what is unique here is that there must be trust and loyalty to be able to group the assets in that centrality, knowing that later it is going to be returned in an equitable way.” Let us reread both authors: resources come toward a center, let us say toward a cooperative (like taxes to the State), from there is “goes outside” of the cooperative, to the members in an equitable way. For those “movements of ownership” to happen, there has to be “centrality in the grouping”, which is possible if there is “trust and loyalty”. Without trust and loyalty, there is no “movement.” When is there trust and loyalty that takes resources to the cooperatives and makes them be  “paid back”? Our argument: there is trust and loyalty when the rules of the cooperative, connected to endogenous virtuous institutions, guide the cooperative from its beginnings with a societal and communitarian perspective. In other words, the cooperative, from and for the communities, is responsible for the distribution with equity.

Cooperatives currently, nevertheless, are formed and achieve a partial “movement”: they attract resources from dozens of their members, but it is difficult for them to “pay back” the surplus and pay them back in an equitable way. There is the challenge. For that reason, there are written rules. What are they?

Cooperatives include in their statutes, following the laws of each country, the distribution of profits[5]. Cooperatives include a percentage (%) for legal reserve, % for the social or educational fund, % for distribution among the members according to their contributions or economic transactions in the cooperative – note that improvement in the price of the raw materials is not mentioned as “distribution of surplus”, because it is not, the surplus is calculated after the annual financial year. This is consistent with the principles of historic cooperativism: among the Rochdale principles of 1844 is the “payback of surplus”, then  in 1966 the International Cooperative Alliance (ICA) reformed those principles and replaced it with “the surplus belong to the members”, and finally in another reform in 1995 the ICA said “the economic participation of the members”; in all of them the spirit of the distribution of surplus is maintained. These rules can be connected to the virtuous institutions of agrarian societies, giving-receiving-paying back, the gift that Mauss (1979) described.

Consistent with this cooperative and communitarian principle, the International Fair Trade Movement (FLO), begun in the 1980s and 1990s, in their policy of offering better prices to products coming from families that are organized, included a “fair trade premium”, which in the case of coffee, for example, is US$0.20/lb., a fund so that the members of a cooperative might decide to use it in educational, health projects, and farm improvements or investment in processing installations. Other buyers tend to include also a “cooperative premium”, a fund that the members might decide to use for collective investments that would benefit everyone.

In addition to rules, cooperatives have mechanisms for complying with them. They have their oversight board, the assembly, the education committee, there is also the administration with accounting that issues financial reports. In some countries the State has a role of comptroller of the cooperatives. The international fair trade organizations include their FLO certifier that audits the use of the Fair Trade premium and the democratic processes of the cooperative; social banks require financial statements and balance statements; aid agencies ask for audited reports and evaluate the projects that they finance, and in some exceptional cases withdraw their support when the cooperative fails to fulfill their rules for equitable distribution[6]; likewise some companies that buy coffee or cacao[7].

Having gotten to this point, what do we observe? In spite of having rules and mechanisms for distribution, it is rare the cooperative whose members participate in the decisions on the use of the social fund, reinvestment fund, or on the cooperative premium; it is rare the cooperative that is transparent with its members on the use of these funds; and it is rate the international aid agency or buyer who ensures this transparency, and that the surplus be distributed. In other words, the rules of the cooperative and the organizations are systematically not met; consequently, there is no confidence nor loyalty, which is why the “movement” is in only one direction: the resources from the members go to the cooperative and then to the companies (fair trade, direct trade, or independents), who do not “pay back” the surplus to the members. The rules of the cooperative and the organizations do not end up connecting to the virtuous endogenous rules.

2.    What opposes the distribution of the surplus

Even having rules and mechanisms, why do  cooperatives not distribute their surplus? It seems a matter of adding and subtracting, of knowing rules, signing and complying with agreements; it is not a technocratic matter, that a “scholarly” person might resolve; it implies adding and subtracting, showing the strength of the old anti-cooperative model, and of perceiving their own attitudes. Here we start with three interconnected responses, of the several that exist. See Figure 1.

First, the “business foot” of the cooperative, and organizations-international enterprises coincide in the fact that the business (sale-purchase of the product, disbursement-payment of the loan and execution of the project) works, not so much that the cooperative works.

They are content with the protocol, written and legal proof about the functioning of the cooperatives, proof that the elites of the cooperative learn to quickly fabricate: minutes that prove that the organs meet, audits with authorized signatures, financial and narrative reports including registry of data, and even members “trained” to repeat what the organizations want to hear, when some organizations visit. This practice, in turn, is read by the members as something that confirms their ideas that the cooperative does not change at all their way of working and selling their products: “If the organizations says that it is fine, surely it is fine, as we have always worked.” This is the formal structure that covers over the fact that the cooperative does not distribute its surpluses in accordance with its own rules, and the millennial aspiration of indigenous and peasant families.

“The peasant is interested in selling his product, he is not interested in whether there are surpluses”. This phrase presidents and managers of cooperatives repeat, along with buyers and international aid agencies, as well as technicians and boards of NGOs. This phrase underlies century old institutional practices. What are they? It is the institutionalized idea in the hacienda owner or the capitalist, that they have the exclusive rights to surpluses, that the peasantry were born to sell their labor and/or their raw materials. It is the same idea that the peasantry reproduces: “My country ends with my fence of piñuelas”, says the peasant family; “they pay my wage, that is all I ask”, says the working person (field-hand or peon); they never ask themselves about the surplus that their work or their product generates, they take it as given that it is not theirs. That institutionality absorbed the cooperatives and made them forget about the reason for their origins and their rules for distribution, and with that buried even more that indigenous-peasant right to the value that their work creates. So it is that the members demand that they increase the price of their sun-dried coffee, cacao pulp or their sugar cane; in some cases they demand an “adjustment”; “if we got credit as a cooperative so that you pay us a certain price for coffee, and if you paid us as the market price a little less than that set price, then pay us the adjustment”; no one demands their surplus; the presidents and managers behave like the hacienda owner or capitalist.  Figure 2 illustrates this institutionality: the worker reaches the wall of their days wage, the peasant their fence of piñuelas, the “business foot” of the cooperative goes as far as the “wall” of the port, and the buyers-roasters-distributors to the sale or even the cafeteria. Each one, and in each wall, seem to follow the rule of “I don´t touch you, and you don´t touch me.”

Second, the organs of the cooperatives are left bound up, because their rules are replaced by others that respond to what Polanyi (2001)[8] called the “market society”, and respond to colonial and patriarchal structures. One of those rules is: “To distribute, first you have to grow.” This rule comes from neoliberalism, that “economic growth is development”, from trickle-down economics: capturing the wealth of the members so that the cooperative might invest and accumulate in the short term, and benefit the members in the long term. This “development” and that “long term” with “benefits”, nevertheless, tends not to arrive; in other words, “they do not pay back”. Consistent with neoliberalism, the cooperatives assume that “distributing decapitalizes the organization” and they embark on the path of the “big headed dwarf”, whose head is large and is made of steel (concentration of physical investments and resources), and whose feet are clay (impoverished members who do not participate in the decisions of their organizations nor rotate offices). In this logic the managerial staff or the president tend to end up feeling themselves to be the true owners of the resources of the cooperative, that it is “their effort”, while the board members tend to abandon the volunteer nature that their offices imply, and seek any gap to take advantage individually, be it through travel allowances, loans on top of loans, or benefitting themselves from the donations that the cooperatives eventually might receive. Also consistent with neoliberalism, the fair trade and direct trade bodies reduce their relations with the cooperatives to just the financial aspect, and treat the cooperatives as just “businesses”.

Distribution, expressed in colonial rules, says to the members: “We always need a patron.” The field-hand depends on the patron, who “provides” for him (future purchase of his labor), like the peasant depends on the trader who “provides” for him (future purchase of his product). For them, this “providing for” is the best “distribution”; they know no other. This is what penetrates into the cooperative where the members confirm naturally that they never had rights to the surplus.

Distribution is also expressed in the heart of the family. There, the patriarchal rule says, “The father decides to leave the inheritance to the eldest son, and that will be carried out when he dies.” That will is conceived as something sacred. The family is an institution that attracts resources because of the family labor of its members, and in the end “pays back” (inherits) in an unequal way, leaving tacit that that older son is going to distribute the inheritance among his brothers and sisters, and what happens? Not always, but generally, that older son takes over the inheritance, or sells it and squanders it. That family institution also penetrates into the cooperative, where many times the person who occupies the presidency or management is seen like that “eldest son”, while the rest of the members are submitted to his will, in spite of the fact that they are the “parents” (owners of the cooperative) of that “eldest son.”

The cooperative, guided under this capitalist, colonial and patriarchal spell, tends to start with enthusiasm and when it capitalizes, the board members or the administrative staff turn into elites, exclude those who question them, and privatize the cooperatives. Thus, W. Berrios, from the CAFOD aid agency, observes, “In my years of work in Central America I have seen that it is in the maturation curve that the cooperatives go broke.” Infrequently they restructure the cooperative into a private enterprise, but many times they make it function as a private enterprise sheltered under the legal status of a cooperative, or under the discursive mantle of the social and solidarity economy.  In both cases the members are treated as simple sellers of raw materials.

Finally, there is dovetailing between the mentality of international organizations (buyers, banking institutions, certifiers and aid agencies) and that of the members. The international organizations turn a blind eye to the lack of compliance with the rule of distribution, because, following Streeck (2019), “the policy of distribution only function in nations; in world society there are donations,” global governance “is not democratic”, because “above the nation-state there is only the “international free market”, which consists in large enterprises that are free to do whatever they want.” That mentality leads them to have a mentality of turning a blind eye to distribution, which coincides with the mentality of the members, who have never had access to surpluses, they always saw them as something that belonged to the patron or intermediary, from there it is that the members also turn a blind eye to their right that they be “paid back” (distribute) the surplus. This is what Figure 2 expresses with the walls, “I don´t touch you and you don´t touch me.”

3.    Distribution of the surplus (“paying back”)

How can cooperatives unbind this adverse triangle and distribute the surplus? By distribution people tend to fall into two beliefs: that it is “distributing financial surpluses” and that it is “distributing all the surplus to the members.” From here comes the idea that “distributing is decapitalizing.” In this section we break down what equitable distribution of surplus is, expanding the content of the distribution already described in the rules of cooperatives.

Let us start with the attached graph. This illustrates the components of this “paying back” that include collective forms (legal reserve, reinvestment fund and social fund), and the individual forms that the members receive directly (distribution to members and payments when they leave the cooperative). The percentages in the graph are arbitrary estimates, they vary depending on the laws in each country, and the decisions of the cooperatives agreed upon in their statutes.

Note that this graph breaks with the belief that “distributing decapitalizes”: the reinvestment fund refers to the fact that their own fund or their own “capital” grows in accordance with the percentage approved in the cooperative. The assumption in the graph is that exercising distribution in the five ways, combination of collective-community and individual distribution, builds trust and loyalty, which makes the members turn in their products to their organizations in larger amounts and with better quality; from here distribution instead allows the economic transactions of the cooperative to increase, and therefore the entirety of their funds grow; in other words, ”decreasing” (paying back or distributing) is “growing” in resources. The graph also shows the underlying reason for cooperativism, that it is not to accumulate just to accumulate capital, the cooperative is a means, and the members and their communities are the end (final objective). We break down these funds in what follows, including some important remarks.

3.1  Components of collective distribution

Let us describe those funds that are in the statutes, let us clarify and add what they can have which is unique. “Legal reserves” is to cover losses that eventually the cooperative might have during the year in the economic fiscal year; it is a financial cushion that prevents the cooperatives from going broke. In the case that there are no losses, that reserve could swell the investment fund, or, for example, cover legal paperwork expenses, the opening or updating of bank accounts, the legal defense of the cooperative in the face of lawsuits from third parties, the legal defense of the members in cases that affect the cooperative, or to have legal counsel in the face of certain situations or issues.

“Cooperative fund” or “reinvestment fund”, belongs to the cooperative. In addition, some buyers tend to increase the price of the product that they buy with a “cooperative premium” or with an “infrastructure fund”, resources that are added to the funds of the cooperative. These funds are to buy equipment that the cooperative might need, repair or enlarge the infrastructure (building, harvest collection center) of the cooperative, and/or to increase the funds of the cooperative itself, which would increase the loan portfolio, or would pre-finance the payment that the members make on receiving products, while they process and sell them – avoiding the need to seek outside credit.

“Social or educational fund”. It is a fund from the rules of the cooperative itself, and is a fund that increases if the cooperative sells its product through fair trade organizations or buyers that condition a certain amount for a social fund. In general, cooperatives use it to finance some demand of the community school, provide backpacks to the children, provide support to the local sports team, or for trainings that their education committee might organize. Even though these initiatives are praiseworthy, physical investment in the school is the obligation of the State for which society pays taxes. The sports teams are going to function with or without the support of the cooperative, the children will go to school with an old or new backpack. Some innovative cooperatives use that fund under the following criteria: invest in something that generates value for the community, that is not the role of another institution, and doing so as a long-term investment. An example of this is the fact that two or three cooperatives from the same community might invest in libraries for children under 7 years of age, story books that their families might borrow to read to them before going to sleep, promoting reading in the family itself, and that the cooperative might organize reading circles with the support of people who promote reading; the long-term impact of this initiative in the creativity and cooperative spirit of the community can be significant.

3.2  Components of individual distributions

Following graph 1, 50% of the surplus of the cooperative is distributed to its members directly. The criteria for that varies from cooperative to cooperative, and depends on the services that they offer. In some cases, it is in accordance with the contributions of each member. In other cases, it is in accordance with the volume of product transacted with the cooperatives that collect the harvest and sell the product of its members. In other cases, it is in accordance with the quantity of products bought in their cooperative. And in other cases, it depends on the amount saved in their cooperative. There are cooperatives with similar services, and that “pay back” under different criteria; for example, the peasant store Los Encinos in Honduras “pays back” 100% of the amount of the agreed upon contribution, while the Esperanza of the Campesinos Cooperative with several supermarkets, “pays back” based on the amount that each member buys from those supermarkets.

These criteria promote the capacity of each member, and increase their trust in the collectivity that the cooperative is. There are members with more financial capacity and do not necessarily have larger contributions in the cooperative; it depends on the trust that the members have in their cooperative, and on the opportunity cost that each member thinks their resources have. In this sense, the biblical parable of the talents (Mt 25: 14-30) illustrates part of what the cooperative looks to incentivize with direct distribution; in that parable three people receive talents, one 5, another 2 and another 1, “in accordance with their capacity”. After a time, the person who received 5 and the one who received 2 double theirs, and the one who received 1 maintained it. In light of this, the person who gave them the talents rewarded the first two, and took away the only talent from the third, “because he who has, will be given more, and they will have an abundance, but he who does not have, even what they have will be taken away from them.”

From the religious context, this indicates that God gives people talents in order to develop them, which reveals an individual vision, where each person is responsible for duplicating their talents. From the cooperative context, one is “paid back” in proportion to the trust and loyalty of that member, demonstrated by contributions, savings, delivery of product or amount purchased; that “payback” is not taken away from them in the cooperative, in contrast with what happens in the parable of the talents, where each individual responds individually with the talents received; instead, there is cooperation among the members mediated by commonly agreed upon rules, compliance mechanisms and there is accompaniment so that each member might increase their capacities; there is individual responsibility within the framework of collective responsibility.

3.3  Compensating by rights those who resign from the cooperative

Following cooperative statutes, the member who resigns from the cooperative has the right to the return of their extraordinary contributions, and the “reimbursement of social assets” (shareable surplus) within a term generally of 90 days. This “departure” arrangement should be thought of and agreed upon from the beginning when the cooperative is founded, even though it is clear that in the beginning, being immersed in making the cooperative survive, no one thinks about this; it should be done, because it is thinking about the future, and because each member should be clear about their rights from the very beginning[9].

In our societies the member who resigns from the cooperative tends to leave without recovering, many times, not even their contributions; likewise, those who die, their relatives do not tend to receive any benefit that by rights the family members are due. For some members, having joined a cooperative is even a financial loss. In the case that there are voices that are raised about this, some board members pull out the ghost that “distributing is decapitalizing”.

If the cooperative does not pay the member who resigns, or the relatives of those who die, in accordance with their rules and the rights of each member, the cooperative signals distrust in its own future, and sends an erroneous message that they are not members, that the “cooperative does not belong to its members”, which undermines any sense of ownership of those who stay in the cooperative, and those in the community who observe it. If in contrast, the members fulfill the rights that each members has on leaving the cooperative, that they be paid the part that corresponds to them that the cooperative has at that moment, probably that person will leave with a good amount of resources, and happy for having been a member of a coop. In the short term, this is a hard moment for the cooperative, because it is going to disburse in cash resources what it surely needs; at the same time, each member will see themselves in the person who resigns: in the same way that they treat the person who leaves, they will treat me. If the member joined the cooperative with little, and leaves with a good amount of resources, those who remain will ask themselves: if after the cooperative fails, will we be the most unlucky ones? The doubts will keep them up at night. But in the long term, those who are left are less, which means that they will receive more from the future resources that the cooperative accumulates; more than that, each member, seeing that the one who left took what corresponded to him, will confirm that in truth he is a member of the cooperative, that the cooperative really does belong to him.

Let us talk about numbers to estimate the amount that could be due to a person who resigns. What is the arrangement with the member who leaves? A member who leaves or dies, that person or their relatives have the right to part of the assets or resources that the cooperative has generated. Let us help ourselves with an example. If through the use of the “cooperative fund” or the “reinvestment fund”, extraordinary contributions of $100 per member, and donations that the cooperative received, a cooperative has assets valued at $200,000; if that cooperative had 20 members at its founding 10 years ago; then if one of them resigns from the cooperative, they are due $10,000 (200,000/20 = 10,000). This amount could be paid over a term that the statutes indicate, or, if the cooperative does not have the $10,000 available, they can arrive at friendly arrangements for the time frame for the payment.

The biggest impact of this fact, nevertheless, is not in the financial “payback”, but in the fact that the 19 remaining members, and the rest of the community, confirm that effectively the cooperative does belong to its members. This is the seed of incomparable ownership. This implies greater trust, loyalty and the deployment of individual and collective capacities.

Concluding this section, distribution in the cooperative generates equity, and incentivizes the development of each member. An estimate of 40% of the surplus protect the cooperative from losses, increases their investments or their own capital fund, and contributes to the community with unique investment in education. With an estimated 50% of the surplus, the cooperative incentivizes the development of the capacities of each member, their trust and mutual loyalty. And with an estimated 10% of the surplus, the cooperative ensures the recognition of members who leave the cooperative, far from seeing it as a “financial loss”, they recognize the rights of the cooperative member and with that plant the seed of ownership. This collective and individual outcome is the way in which the cooperative distributes its surplus with equity, which is connected to the virtuous peasant institutions of giving-receiving-paying back, expressed in shared labor, sharecropping, and shared harvesting, among other institutions.

Now that distribution with equity appears obvious, along with its importance. How can it be carried out?

4.    How to implement equitable distribution

Inequitable pay back… breaks down the organization

The Spanish, Mexicans and US tried to dominate the Apaches; they failed. The Apaches had the nant’an as their leaders, they were decentralized, operated in circles. Their adversaries, as they did with the Aztecs and the Incas, did away with the

nant’an, but the Apaches did not fall apart, immediately another nant’an would emerge. But one day the North Americans donated cattle to the nant’an; since cattle were scarce, the nant’an had the power to distribute them, so everyone wanted to be nant’an, the egalitarian power structure became hierarchical. The Apaches were defeated.

(Based in Brafman, O. and Beckstrom, R.A., 2007, The spider and the starfish. Barcelona: Empresa Activa).

This historical passage shows us that distribution is more than distribution of surplus. It is important to have holistic egalitarian structures that include equitable rules and mechanisms for carrying them out. Before continuing, we cannot avoid comparing this event of the Apaches with the action of the government in the parable at the beginning of this article; the government in the parable, and the North Americans in this other one, seek to subordinate the cooperative or the Apaches, the first donates land to them, and the second donates cattle, in both cases without “payback”, thus they undermine them before their members, leave them not looking toward their community, which causes the cooperative and the Apaches to fall apart. Militarily the Apaches were indomitable, but a simple donation eroded their entire organization, like termites on wood. How did this happen?

The Apaches lacked equitable rules for the distribution of assets donated to their leaders. The North Americans took advantage of that gap, and donated the asset that was the scarcest, cattle, directly to the nant’an and not to the Apache tribe that surely had their own organization. This practice internally stirred up the Apaches, who fought over being nant’an, for having that connection to the North Americans and accessing the cattle; surely, like the managers or presidents in conventional cooperatives, the nant’an said to their tribe that the “cattle had cost them”, that they should be content with what “trickled down”, that they were their “connections”, and that without them they would all die of hunger -or in other words, the evil of the “big headed dwarf” began to corrode the minds of the nant’an and sow distrust in the rest of the tribe. This process led them to become hierarchical structures, and consequently to collective failure; it is what has also happened to most of the conventional cooperatives.

Cooperatives, in contrast to the Apaches, have rules and mechanisms for equitably distributing the surplus (including donations), but they lack democratic processes in their functioning, which is why they do not comply with their rules for equitable distribution. In many cases the cooperatives were started by the State with donations in land or other assets, undermining them from their own beginnings. International organizations (buyers, financiers and donors) have continued on this same path. Like the North Americans with the Apaches, they only connect with the nant’an of the cooperatives (managers or presidents), and they are not interested in knowing the consequences that their actions provoke. How can cooperatives fulfill their rules and make distribution their most valuable attribute for growing equitably?

This point about the Apaches leads us to understand that a cooperative that distributes its surplus with equity is that which, in addition to having rules for it, is democratic and transparent: See Figure 3.

If the organs, in democratic exercise, ensure the fulfillment of the agreements about equitable distribution, that cooperative will embark at a good port. In the case of the Apaches, their organs operated around resisting militarily, including their food, but they lacked the rules for donations and relationships with external actors. We can imagine that the Apaches, in decentralized groups, hunted animals for food; for which they had their rules and they applied them, but not so that some nant’an individually might receive 10 head of cattle as a gift behind the backs of the tribe, even precisely for their tribe.

This combination (rules-democracy) requires, nevertheless, a third foot: transparency. It is depressing to find members who after contributing for 5, 10 or 15 years do not know how to add up their contributions, and that do not recognize their rights over the surplus. It is not just having democratic economic management coherent with the rules themselves and the rotation of members in the different offices and decision making in the corresponding organs, but informational transparency with the members and with the allies. The idea of transparency or accountability in the cooperative is not being subject to trial, measured and humiliated by “the magic of the numbers”. It is sharing information that in turn forms and commits the members. A member can understand that their surplus might be $30 per qq of coffee that they have delivered to the cooperative, if he is informed about how that surplus was produced; otherwise that person will see that surplus as “an award” or a “favor” of the patron, as his historical rules make him see it. Distributing surplus implies distributing responsibilities (democracy) and information; the way “the legal reserve”, “investment fund” and “social fund”; the expenses and income… were produced and used. This information forms people and commits them: the member, based on transparent information, will want to participate in the definition of the goals for the year for their cooperative, and will want to be part of the implementation of those goals, because he recognize that his individual surplus will increase, that the benefits to his community will improve, that if the cooperative increases its reinvestment, any member who leaves will be able to go with more resources. In addition, if the first tier cooperative is a member of a second tier cooperative, the member also needs to be informed about the second tier cooperative, know how surplus is generated in that organization, and how much is due his cooperative, and how much of that amount is due each member. That explanation can happen in an assembly, in visits to each member family, on whiteboards or through brochures, and on the day of the distribution of surplus, combine festivities and information.

Correspondingly, transparency implies being accountable; for example, it is commendable that the credit record include columns for the amount of credit, amount past due and contributions; it is also commendable that the record include the amount that the member is leaving for “legal reserves”, “social fund” and for the “reinvestment fund”; the first format for the record contains control information for the member, and the second format has the accounting of the cooperative to its members. Being accountable in the assembly about their resources expresses the rights of each member, and it is an obligation of the cooperative that each member know that. From here, if the members are informed about each step of their cooperative, they will be committed to their cooperative, if their cooperative faces difficulties, they will sweat the fear of failing and will row the canoe together even in the midst of the biggest waves.

Equitable distribution is possible within a framework of democracy and transparency. There, being a cooperative member is thinking beyond salary, beyond raw materials and beyond exported product; it is thinking about the entirety of the cooperative, and the entirety of the chain of actors where value is created. In other words, it is breaking down the walls of Figure 2 and understanding that what creates value is the human work of the working person, producer, processer, importer, roaster and seller of the coffee in the stores and coffee shops. It is “I touch you and you touch me”, entering into different worlds. This implies including the international organizations and companies, which goes in the direction of global triangulation that we worked on in several other articles, about an alliance of actors that work for equitable distribution.

5.    Conclusions

You read a book from beginning to end. You lead a business just the opposite way. You start with the end, then you do what you have to in order to achieve it.

Harold Geneen, 1984, Managing. New York: Double-day

At the beginning of the article we asked ourselves how cooperatives can distribute (“pay back”) in order to grow with equity. Equitable distribution in a renovated cooperative is very different from the distribution of the market in the neoliberal economy, which is one unilateral way, from society to businesses and institutions, from which there is no “pay back” beyond what “trickles down”.

In the renovated cooperative, and in alliance with global actors, equitable distribution is illustrated in Figure 4.

It is the distribution of surplus combining the collective (social fund, reinvestment fund, and legal reserves) and the individual (direct distribution to the member for their differentiating actions and payment of what by right is due the member who leaves); it is financial and social distribution. Then, equitable distribution implies that the organization be democratic (rotation of officers, collegial decisions and compliance with the rules). Then equitable distribution implies distributing information under the maxim that the more informed the members are, the better their decisions will be.

This notion of equitable financial, social and political distribution (democratic and transparent), mobilize energies and hearts when it is connected to the endogenous institutions of the members, in our case, the peasantry. Consequently, each member feels part of the cooperative, seeks to know its goals, have an impact on them and commit themselves to fulfilling them.

Finally, when the members and their global allies follow equitable distribution connected to endogenous institutions, that is when they see the entirety of the cooperative and the entirety of the value-added chain with equity. Far away are left the “walls” that separated the worlds. Paraphrasing Harold Geneen, we organize a cooperative from its end, from its equitable distribution to the benefit of the members and their local and global communities. The more that is distributed, the more that it grows.

[1] René has a PhD in development studies, is a collaborator of the Winds of Peace Foundation, member of the COSERPROSS cooperative, and associate researcher of the IOB-University of Antwerp (Belgium). rmvidaurre@gmail.com

[2] Mauss (1979: 204-211), based on a type of distribution known as potlach, practiced in Eskimo societies in the Northwest of the US, finds the triple obligation of the gift culture: giving, receiving and paying back. “You do not have the rights to reject a gift, a potlack, because acting in this way makes clear that you are afraid to have to pay back and be left diminished, it is losing the “importance” of your name, it is declaring oneself beaten in advance, or in some cases proclaiming oneself victor or invincible” (p. 208). Marcel Mauss, 1979, Ensayo sobre los Dones. Motivo y forma de cambio en las sociedades primitivas, en: Sociología y Antropología, Madrid. Note that this identified institution is pretty similar to institutions of indigenous communities in Latin America.

[3] Polanyi, K., 1976, El sistema económico como proceso institucionalizado, en: Antropología y Economía (ed. Godelier, M.), Barcelona pp. 155-178

[4] Santana, M.E., 2014, “Reciprocidad y Redistribución en una Economía Solidaria” in: Ars & Humanitas 8/1. Slovenia.

[5] Surpluses result from deducting costs and expenses of the cooperative, amortization (value for deterioration of fixed assets). In associative organizations the term “profits” is used more, which is pretty similar to “surpluses”. The term “earnings” is different, there could be earnings through a discount if a product is sold above its acquisition price.

[6] W. Berrios, from the CAFOD aid agency, refers to the fact that some aid agencies linked to churches in Europe tend to withdraw their support for organizations that in theory assume the social and solidarity economy approach, but in practice do not follow it, and that instead become part of conventional mediation.

[7] Several buyer companies left Fair Trade on realizing that their premium payments were not getting to the member families, so they formed another movement called direct trade, to get around “cooperative mediation”. There are also European enterprises and cooperatives that buy coffee or cacao in Central America and want the cooperative that they work with to distribute their surpluses; correspondingly, some of them avoid the second-tier cooperatives and prefer buying directly from the first-tier cooperatives.

[8] Polanyi, K., 2001, The Great Transformation: The Political and Economic Origins of Our Time. Second Edition. Google Books. (First publication in English in 1957).

[9] See: Jack Stack, 2002, A Stake in the Outcome, New York: Doubleday. Stack, along with other workers, founded an innovative enterprise in the United States. In this book he recounts how they struggled with this issue from the beginning of their company. If they did it as a company, how much more should a cooperative!

They’re Coming to America

“Free, only want to be free, We huddle close, Hang on to a dream.” 

America by Neil Diamond

There’s no shortage of patriotic music today, July 4.  From God Bless America sung by Kate Smith to America by Simon and Garfunkle,  America the Beautiful by Ray Charles, God Bless the USA by Lee Greenwood, I’ve heard songs all day in honor of our nation’s birthday.  It’s part of the enjoyment that is the 4th of July, the quintessential holiday in our country.  But there was one song that stopped me and caught my breath as I listened to it.   It was America by Neil Diamond.  Both the music and the lyrics are powerful, which is why the song became so popular when originally released.  But today the words hit hard, and rang with an ironic twist that, frankly, pulled some of the energy out of the day.

On the boats and on the planes
They’re coming to America
Never looking back again,
They’re coming to America.

Yes, thousands flock to our country on boats and planes, but many also reach our borders for their dreams on foot.  The Mexican border holds thousands in detention at present, and not just in waiting for legal processing for possible admission to the U.S., but in separation from children, spouses, and in cell-like detention for indeterminate periods of time.  Those realities don’t quite match the drama and grandeur of Diamond’s song.  I guess things have changed.

Home
Don’t it seem so far away
Oh, we’re traveling light today
In the eye of the storm
In the eye of the storm

Immigrants coming to America today find themselves in the eye of the storm of a different sort.  The pride of Americans embracing their role as the “melting pot” of the world has faded these days, replaced by a storm of blame, suspicion, racism, and even hatred.  It has not helped to have a political leader who has fanned the flames of those reactions and re-shaped the notion of immigration from a beautiful dream to a horrible nightmare.

Home
To a new and a shiny place
Make our bed and we’ll say our grace
Freedom’s light burning warm
Freedom’s light burning warm

And suddenly it makes a difference to whom you are praying for your suppertime grace.  Some in this land of all faiths now want to know the nature of one’s spirituality so that interpretations can be made and aspersions cast, often in the densest of understanding.  Freedom’s light burning warm becomes ever cooler to the touch.

Everywhere around the world
They’re coming to America
Ev’ry time that flag’s unfurled
They’re coming to America

It’s true that the American dream resonates everywhere in the world, because we have exhibited some of the visions to which all human beings aspire: freedom, choice, participation, pursuit of happiness.  In recent times, though, it would appear as if we vastly preferred those coming from Norway.  Something about looking like more of us than those in detention on the border.

Got a dream to take them there
They’re coming to America
Got a dream they’ve come to share
They’re coming to America

The dreams driving today’s immigrant populations are no different than those of generations before.  They come for opportunity.  They come to escape persecution.  They come for freedom of thought and expression.  In years past, some even came because they perceived opportunities to lie, cheat, steal and break the law with impunity.  But the U.S. figured that the good that came through our doors far outweighed the inevitable bad that is a part of our human reality.

My country ’tis of thee (today)
Sweet land of liberty (today)
Of thee I sing (today)
Of thee I sing
Today, Today, Today
Today, today, today……

Today, we celebrate our country as we have every year on July 4.  There is much in which we take pride, and rightfully so.  Our stories are mythic and powerful and full of the promise of what our future can be.  I had a joyous day with family.

Or at least until I shed a tear upon hearing Neil Diamond sing about coming to America today….

Bleak House

“It is said that the children of the very poor are not brought up, but dragged up.”                                                    Bleak House, by Charles Dickens

It’s an image that is haunting, and daunting, this observation from 1852 Victorian England:  the idea that some children- many children, in fact- in the very prime of their learning and forming years were forced to find their way to young adulthood through the hauling  and heaving of desperate poverty and abuse.  It was a reality distinctly at odds with the Victorians’ self-proclaimed progressive era of reform and improved societal standards.  Author Charles Dickens made his mark, in part, chronicling the sad realities of the time.

That was a long time ago.  The pokes at our collective conscience by Dickens have persisted since his time, as his works are among the most revered and widely-read in the English language.  As a result, we should have every reason to expect that, with the passage of time and a presumed greater enlightenment about healthy societies, our nurture of children might have changed since 1852.

Not so.

Dickens would find endless fuel for his anger today.  Even a short visit to the Mexico-U.S. border would engender sufficient affront for him to create two volumes the size of Bleak House.  The experiences of border children is little better than those endured in the streets of London more than 150 years ago.  The realities of the War in Yemen have claimed 85,000 children under the age of 5 since 2015,  more than enough to flame Dickens’ sense of outrage.  The outlook there suggests the potential demise of another 14 million people over the next several years.  And if the well-known writer deigned to travel to the U.S., he would be dismayed to learn that the British progeny has fostered more than 16 million hungry children in 2018.  If Dickens took a side trip down to Nicaragua, he would encounter children facing family upheavals, disappeared parents, and poverty that is among the worst in the entire Western Hemisphere.  He might begin to wonder whether his famous works really made any impact at all.

I’ve re-read a number of Dickens’ classics in recent years, including Bleak House, Our Mutual Friend, Oliver Twist and A Tale of Two Cities.  I’m drawn to his characters and the ambience of the times in his writings.  But I also find myself distracted by the conditions encountered by many of his characters, especially the children.  The stories are uncomfortable.  The children’s circumstances are often abhorrent, to the point occasionally when I think that Dickens has likely exaggerated the realities faced by his young protagonists.  But I read on in the certain hope that things will get better by the tale’s end.

Dickens’ hopes for any kind of empathetic reforms or changed sensitivities as a result of his works would be shattered in the face of today’s world.  The travesties of Victorian England are comparatively small compared to the cold calculations of despots today. Reading fictional accounts of treachery and evil pales in comparison to the very real atrocities that we tolerate repeatedly on the world stage today.

A Christmas Carol delights audiences because of its ability to take us from the depths of human greed to the pinnacle of generosity and redemption.  It makes us feel good in the hope that it creates for eventual justice.  I wonder if Dickens would be inclined to write very different conclusions to his stories today….

 

 

 

 

Social Inequality

By any reckoning, any resolution to the current crisis will  still leave a very polarized society. In fact current government pronouncements fuel the polarization by continuing to refer to the opposition as coup supporters, many of whom were actually FSLN members shocked at the willingness of the government to kill their own people.

But another reason for the polarization – and one of the key arguments the government makes to garner support – is that it  has implemented, and continues to implement, policies that benefit the poor majorities, i.e. building public parks, investing in health care infrastructure, rural roads, providing subsidies for production, etc. Any glimpse at the official website el 19 Digital provides daily updated lists of examples. The unspoken but obvious question the government poses to the population is whether another government would implement such policies. 

This article stresses how important it is that any future government  address this key issue. The position of the opposition is that the current  “pro-poor” policies of this government are forms of political patronage, financed with  money siphoned from the Venezuela oil deal that Ortega used to enrich his family, and has also used to buy popular support. Therefore some of them argue that such policies should be terminated by any responsible future government, because in fact they are unsustainable. While this may seem a logical argument, if the end result is that the poor feel abandoned again, it will only feed the polarization.

The opposition now legitimately asks the question where the government is getting the money to finance all the police and paramilitary activity. But if a future government is not able to find the resources to respond to the social inequality, it will be asked a similar question about their own increased spending on “security”. Because if history is a gauge, what is saved by cutting social spending, ends up getting spent on social control.

Social Inequality

By Oscar René Vargas, published in electronic newsletter Artículo 66

June 30, 2019

[see original Spanish at https://www.articulo66.com/2019/06/30/la-desigualdad-social/ ]

If the people below move, those above will fall.

  1. The social inequality that prevails in Nicaragua has reached such levels that it conspires against social harmony, the environment, the security and development of the country.
  2. The social inequality is also violence on the part of the higher social strata toward those “below”, and every day moves us as a country away from the fruits of the Fourth Industrial Revolution.
  3. Important changes have only happened in the spheres of those above, the lives of those below continues not to be of interest the powerful.
  4. This growing inequality is not sustainable, and the way to attack it, the master key, is: employment, decent, well paid, productive work with rights and social protections.
  5. The phenomenon of child labor has its origins in the inequality, poverty and extreme poverty that leads families to send their youngest members out to work, as well as the different forms of domestic violence that force minors to earn their own living.
  6. The discrepancy between the volume of services provided and the meager health results have several explanations of a social, economic and political order, but the deficient and disfunctional public [health] system has a very direct influence with direct repercussions on the most vulnerable sectors.
  7. Also undeniable are the different forms of corruption that have grown like a cancer with multiple metastases in all the health sector to the detriment of the poor.
  8. We are immersed in a mind-boggling and monumental corruption of the Ortega-Murillo government that has lost even the smallest trace of honesty in the so called mafia of power.
  9. All of this are effective obstacles to health care services, and get translated into social inequities and inequalities.
  10. The social inequality must be the future of the country agenda from here to 2030. It is where we should go because the dominant, authoritarian and despotic style of development is not sustainable.
  11. Equality has to be in the center of the future economic policy of a progressive government, because what has increased is the disparity, the inequality between the one who has the most and the one who has the least; the inequality of income, distribution of wealth, opportunities and access to public goods.
  12. In the future the logic of zero corruption has to be implemented, zero cronyism, zero nepotism; eliminate all that blight of the national political culture.
  13. To effectively fight against inequality it is important to close off the tax evasion of big capital and take the case to a national debate.
  14. The country needs a redistribution of income and wealth, above all of profits.
  15. A national debate that would allow us to reach a consensus around a solution to the current imbalance in the distribution of income, social inequality, access to health care, type of education, as well as the appropriation of wealth.
  16. Therefore, the progressive government has to have as its priority objectives: improving equity, reducing social inequality and poverty.
  17. In other words, being in favor of a key point: not imposing poverty salaries as a mechanism for business productivity and bloated profits for capital.
  18. If we should learn anything from these hours of struggle and indignation, it is that without a social and political organization of citizens, the adversities will become a permanent and recurring tragedy from which no one will be exempt.

San José, Costa Rica, June 30, 2019

Well Said

From time to time I have reproduced the writings of others at this blog site, because they have stated ideas so powerfully.  I have elected to do it again, given the words written by Kathleen at the Center for Development in Central America  (CDCA).  Kathleen has been quoted here before because what is in her heart is so well said in her words.  The following is excerpted from the CDCA May 2019 newsletter.

My mother has said over and over that one of the two things Jesus wished he had never said was, “The poor you will have with you always.”  Why?

Because so many Christians use that phrase to justify pouring money into church buildings and doing nothing for the poor.  But what if we re-examined that phrase, and instead of looking at it as meaning an impossible goal of eradicating poverty, look at that phrase as an indictment of the rich?

It is true that, “There is enough in the world for everyone’s need, but not enough for everyone’s greed,” a quote from Frank Buchman.

Staying with my daughter in the Northeast, it is easy to let the poor slip my mind.  As she recuperate from surgery, my daughter is watching mindless television so she can crochet and heal.  One of her shows is “Top Chef.”  I have found it addictive but also, when I remember the poor in Nicaragua, nauseating.

In Nicaragua with climate change and with the socio-political crisis there, people are looking more and more at hunger.  It is easy to forget that as the Top Chef judges say to a contestant that the prime rib was not plated to please the eye.

It is easy for the wealthy or the intellectual class in Nicaragua to create and foment a crisis when their children will be fed and given medical care or even schooling if a new government comes in and discontinues social programs.

It is easy to forget that people are sweating and bearing unbelievable heat when there is cool air at a touch.  When you have food to eat and can jump in an air-conditioned car, it is easy not to feel the urgency that climate change should be our top priority (when diesel prices had dropped, one opposition leader said that the Nicaraguan government was doing the people a disservice by investing in renewable energy!).

A Brazilian priest, Frei Betto, helps those of us who would say we choose to stand with the poor by telling us that, “The head thinks where the feet stand.”

He says that, “It is impossible to be a leftist without dirtying one’s shoes in the soil where the people live, struggle, suffer, enjoy and celebrate their beliefs and victories.  To engage in theory without practice is to play the game of the right.”

Many tell us that our opinion of what is happening in Nicaragua is just wrong, and maybe it is; but Fr. Betto also says, “Choose the risk of making mistakes with the poor over the pretension of being right without them.”

And so, we risk the mistakes….

Thank you, Kathleen….

 

 

But What About Yareli?

It has been a year now since I last traveled to Nicaragua.  I miss it.  Some might wonder what there is to miss in a land of extreme poverty and, now, civil turmoil.  A couple people have even suggested to me that I must be glad not to be going to Nicaragua anymore, given all of the unrest, and observed that I picked a good time to retire from such travels.  In all due respect, they are wrong.

I miss the interactions with Mark and Ligia and Rene and his team.  I miss Bismarck and Edmundo and Corina, and all of the cooperative members with whom we have worked; they likely never knew it, but they are among my heroes.  I’ve stayed in many hotel rooms over the past year, but none of them entice me back for a return the way that Hotel Chepita in El Cua does.  Sometimes I even miss beans and rice for breakfast.

It’s easy for me to feel melancholy about what has transpired in Nicaragua over the past year; there are plenty of reasons to feel so.  But I’m certainly not the one paying the price.  Nor is it the well-connected in Nicaragua, who have plenty of safety nets in place.  As always, it’s the most marginalized part of the population that is taking the biggest hit from the current conflict.  The standoff began as students and older citizens confronted the government, but the  biggest losers are the rural peasants,  Some have been killed. Others have been  “disappeared.”  Most have lived in fear of rogue gangs roaming the countryside, who operate based upon whim.  At the lowest end of the economic and social totem pole, they are experiencing a deeper and accelerated decline as the rest of the world pulls back from the uncertainty that is Nicaragua today.  Jorge has not been able to resume his studies at the University of Central America (UCA).  But what about Yareli?

Yareli is the little girl whom I encountered outside of the Roberto Clemente School in Ciudad Sandino some years ago.  (I wrote about her here on May 5, 2012.)  Her face virtually lit up the space around her, and her gesture of greeting and blessing is as priceless to me today as it was seven years ago.  I can’t help but wonder where she is today, whether she is safe and well, how the turmoil of the past year has affected her beautiful smile.  I try to imagine her family and what their experience has been throughout this period.

As is true in most things political, the little guy loses the most.  It’s an ironic truth that when the rich and powerful maneuver for more wealth or more power, the people who have none are the ones who ultimately pay.   The actions of the elites may be clouded in words of patronage and concern, but too often they are hollow.

And it’s true no matter what the civil milieu: big, wealthy countries like the U.S., and small, impoverished ones like Nicaragua.  (The recent U.S. “tax cuts,” touted consistently by the person in the White House, were not tax cuts for most.  Despite words of praise about looking out for middle America {praise mostly from himself}, the extra pay in weekly pay envelopes was more than neutralized by the losses in tax refunds for many. The winners?  The ultra wealthy.)

It is estimated by economists that more than 215,000 jobs have been lost in Nicaragua over the past 12 months.  These were not CEOs or senior government officials or bank presidents.  Job losses almost always accrue to the lowest level of employment and impact the people least likely to withstand loss of income, like peasant farmers who cannot secure markets during a downturn.

And what about Char-les?  Mark and I met him last year, during my last visit to Nicaragua.  I wrote about him here on  April  21, 2018.)  This was one inquisitive young man, whose curiosity about geography and the world were infectious.   He talked imaginatively about visiting Mexico and the U.S. and seeing whales.  A little boy with enormous visions is a beautiful thing to behold.  I hope Char-les is OK.  I wonder if he is safe and still dreaming about fulfilling dreams and finding answers.  I hope that his single mother is not one of the 215,000 people who lost her job.

In some ways the tragedy in Nicaragua is just one more example of injustice in the lap of the poor. It happens everywhere.   But it’s made more real to me because of Yareli and Char-les.

The events of the past year in Nicaragua are tragic.  They are made still worse by the imprint made upon the lives of small angels….

 

“We are Building Nicaragua” Program

An important issue in the current crisis in Nicaragua is the question of what would Nicaragua look like should Ortega leave, as the opposition demands. In recent weeks some important proposals have been developed to begin to respond to this question. The following was developed by mostly student groups calling themselves “Construimos Nicaragua” and was posted shortly after the independence holidays in Nicaragua, Sept 14-15.

We are Building Nicaragua

 “We are Building Nicaragua” Program

This document is the draft of the Program of the Social and Political Movement called “WE ARE BUILDING NICARAGUA” which we submit to the consideration of the readers to open a public discussion among all social sectors on the urgent tasks that we need to promote for a real democratization of Nicaragua.

PROGRAM FOR THE DEMOCRATIZATION OF NICARAGUA: GIVE BACK TO THE PEOPLE THE RIGHT TO DECIDE!

Introduction

The days of struggle, started in April 2018, are forging and consolidating a strong sense of collective national identity in favor of democratization and justice, as had not occurred in our nearly two centuries of independent history around fundamental symbols and values: the blue and white flag, inextricably linked to republican democracy, public liberties, citizen participation in the State affairs, a strong sense of social equity and true solidarity.

The democratic struggle started by the youth opened the possibility of rebuilding and re-founding our nation on the bases of democracy, justice and social equity. The enjoyment and exercise of public liberties, as well as absolute respect for citizen rights, should not depend ever again on the will or discretion of any government. We all the sectors of the people (youth, students, women, workers, peasants, indigenous, etc) need to recover our popular sovereignty to re-found a new Nicaragua, creating a Social and Democratic Rule of Law on new bases, that imply eradicating forever the use of violence, repression or intimidation by those in power for the purpose of remaining in it, or limiting and blocking the exercise of these freedoms and rights.

The fundamental decisions of Nicaragua should not be made by small oligarchies, but by the broad majorities of men and women through democratic and deliberative processes with all the information on the table, where the broadest sectors can participate.

So that our society might move from discretion and the arbitrary and personalized use of power, to a social interaction more and more regulated by laws, norms and policies that are implemented in a more impartial, transparent and impersonal way possible, that is, with the absence of discrimination and punishment for some, and privileges and “awards” for others.

Currently State institutions have lost their public character by being completely subordinated to partisan control and the discretional management of the rulers. It is urgent to begin the transition toward the new Nicaragua, where national public institutions exist that fulfill their function of providing public goods and services, and that are capable of ensuring confidence, security and certainty to economic agents and all the citizenry.

Nicaragua needs a radical democratic revolution that would build national public institutions that can keep themselves relatively isolated from the pressures of economic groups and those in power, be focused on effective, professional performance and their objectives and responsibilities, establishing mechanisms that would ensure transparency and accountability, and that would make citizen control possible over the institutions that administer power.

Within the framework of this context, we a group of youth, men and women from all social strata, have agreed to launch a new political organization called “WE ARE BUILDING NICARAGUA”, an inclusive, horizontal, democratic and progressive political movement for the purpose of promoting structural changes for the sustainable development of Nicaragua.

WE ARE BUILDING NICARAGUA is a social and political movement where all us Nicaraguans find the opportunity to voice our opinions and participate to achieve our political, economic, social, cultural and environmental aspirations.

The mission of WE ARE BUILDING NICARAGUA is to provide each Nicaraguan the opportunity to promote and defend their rights to achieve a full, just and prosperous life.

We present, then, our proposal for a political program that we submit to the consideration of the citizens for their study, critique and improvement, because only united will we be able to accomplish the immense task of democratizing Nicaragua for the benefit of the great majorities.

16 BASIC POINTS FOR FOUNDING THE NEW NICARAGUA

  1. Free and Sovereign Constituent National Assembly

We men and women of WE ARE BUILDING NICARAGUA, many of us had not even been born during the time of the revolution, we think that the first thing that we should do is dismantle the status quo of the political power that was established in the last period, and that has roots in the institutions created during the process of the death of the revolution of 1979.

It requires returning sovereignty and decision making capacity to the people, in other words, the citizens. This elemental principle of democracy has been systematically denied in the history of Nicaragua. It requires profoundly reorganizing the State institutions. And this can only be achieved by repealing the Constitution of 1987 and its reforms, discussing and approving a new democratic Constitution, that would minimally bring together the issues that we discuss in what follows and that would bring the Nicaraguan State into the modernity of the XXI Century.

  1. Limits to re-election for popularly elected officials

Re-election is not a problem of principles in democracy, everything depends on the political culture and the electoral system, whether it is sufficiently democratic to respect the popular will.

Nevertheless, this is a key discussion in Nicaragua, because the emergence of the dictatorships of José Santos Zelaya (1896-1909), Anastasio Somoza and his successors (1937-1979), as well as the new dictatorship of Daniel Ortega and Rosario Murillo (2007-2018) have been related to presidential re-election.

For this reason, and taking into consideration that a good government is not improvised, presidential re-election should only be permitted for a second period, so the new election becomes a plebiscite on the first mandate. Starting with the second period, there should be an absolute prohibition of presidential re-election, establishing iron clad clauses in the new Constitution that would prevent a third presidential period.

Likewise the deputies should only be elected for two consecutive periods. This same norm should be applied to mayors and council-members and the members of regional governments.

  1. A new electoral system

A complete reform of the electoral system is needed, approving a new Electoral Law that would do away with the bipartisan system inherited from Somocism, and that served as a cover for installing a new dynastic dictatorship. A new Party and Political Association Law should be approved, which also should have constitutional standing, that would allow for the creation of groups, associations and political parties at the municipal, provincial, regional and national levels.

The obstacles created by the constitutional reform of 2000 should be ended, that demand a minimum of 4% for a party to maintain their legal status, because it limits the right to representation of minorities. The myth of dictatorships should be done away with, that only the traditional parties should exist. Democracy rests on the principle of diversity and the respect and protection of minorities.

But, above all, the monopoly of the political parties should be ended, that they are the only ones who can propose candidates. A new emphasis should be placed on the fact that citizens can run as candidates regardless of whether they are party members, in any type of election, including presidential elections, prioritizing the fact that youth, who have traditionally been marginated from political activity, might have a dominant role in the destiny of the country.

The election of deputies should be by provinces or districts, doing away with the election of national deputies. The right to proportional representation of minorities should be ensured, especially of indigenous, in every type of election.

The functions exercised by the Supreme Electoral Council (SEC) should be decentralized in different institutions (identity cards, parties and associations, organization of electoral processes, etc), completely reorganized, not just with the participation of the political parties, but civil society organizations, who should play a role of oversight and control.

Tbe new electoral system should include the partial or total renovation of the deputies of the National Assembly halfway through each presidential period. The dates for legislative elections should coincide with municipal and regional elections which should be held every two years, so that the elected officials might know that their posts will always depend on the assessment of their performance and the will of the electors.

To be a candidate for popular election they should be qualified and honest. In addition the 50/50 Law should be kept and respected that ensures the presence of women on electoral ballots which opens the doors for their participation in political decision making posts.

  1. System for direct election and renovation of magistrates and of other high officials, under citizen control.

The citizens should be given back the capacity to elect and remove magistrates, as well as other high officials from other branches and institutions of the State. That vicious cycle should be ended where the executive branch proposes candidates for magistrates who end up being approved through agreements and negotiations among the deputies, who generally obey the interests of party leaders, who include them on the electoral lists, annulling the capacity of the citizens who elected them.

On establishing a percentage of votes of deputies to choose the magistrates, the problem is resolved through transactions or political pacts, turning the deputies into the principal electors, annulling the popular will. This type of indirect election makes possible the creation of political rings and castes, which are the negation of democracy.

It should be established that the holders of the executive branch, deputies, mayors, councilpersons, members of the regional governments, all popularly elected officials, are subject to the evaluation of the people through a recall referendum. In this way any popularly elected official, having finished a third of their mandate, and in the face of a petition for their removal signed by a certain number of citizens, those signers should have the capacity to call for elections in that specific case, so that it be the electors who decide if the official continues or not in their post.

  1. Restructuring of the judicial branch

Democracy is, in the last instance, the governance of judges. These officials are the ones who decide on the freedom of people, the future of their assets and settle political conflicts. The one who controls the judicial power, controls the State and political power. That is why a profound reform and restructuring of the judicial system should be done. The magistrates, judges should be directly elected by the people, and submitted every two years, when intermediate elections are held, to the control of the citizenry.

The judicial profession should be submitted to periodic controls. Only the people through their vote can decide whether a judge continues in their post for one more period. The re-election of judges and magistrates should have a limit, no more than three periods, to open the way for the formation of new judges and magistrates.

A commission composed of recognized jurists and national and foreign academics should examine and review the curriculums of the aspirants, and they will be the candidates who would be subject to popular balloting. Political parties cannot campaign in favor of the candidates under pain of disqualification.

The Supreme Court of Justice (SCJ) should decentralize their functions, so that the administrative functions are not mixed with jurisdictional ones, and with those of control and sanctioning. Deputies cannot be candidates for judges or magistrates. It is a matter of building a new judicial branch that would supervise jointly with the citizenry the functioning of public administration and democracy.

Amparo [constitutional or administrative protection order] should not be an appeal but a judgement, as happens in Latin America. A Constitutional Tribunal should be created, whose magistrates will not obey political parties, but the mandate of the citizenry.

  1. Ongoing fight against corruption

In Nicaragua corruption is an evil embedded in all the State institutions, and it has become part of the political culture: popularly elected posts and public service have been turned into ladders for illicit enrichment. That is why the fight against corruption should be ongoing and at every level. Corruption is one of the principal causes of the increase in poverty and social inequality. It is not possible to fight poverty without fighting corruption at the same time. Indeed corruption erodes and weakens democratic institutionality, annulling existing legality, promoting impunity and social chaos.

The existing laws for fighting corruption are not applied because the State institutions responsible for fighting it, like the Comptroller General of the Republic (CGR), the Attorney General of the Republic and the different tribunals of justice have been victims of the concentration of power phenomenon, which centralizes the mechanisms for the election of magistrates and other high officials solely on the deputies of the National Assembly, who are elected through the lists of the political parties who exercise a monopoly on popular representation.

The anti-corruption legislation should be modernized, administrative processes should be greatly simplified, a new law of State Purchasing and one for Conflict of Interest of Public Officials should be approved, establishing online bidding, so that everyone can see what is happening with prices and technical specifications, taking into consideration citizen participation at all levels, developing to the maximum electronic governance.

Transparency should become a new fundamental right, a key factor for strengthening social confidence and a sense of participation and co-responsibility in the construction of a shared destiny. Public information should never be managed as if it were private. The people have the right to know all the affairs, no matter how complicated they may seem. The officials who violate this principle of access to public information will be submitted to severe penal sanctions.

Likewise, the obligation should be established of all officials to be accountable to the general assembly of workers of the public sector with the participation of the citizenry every three months for spending, investments or purchases made. The result of these reports should be placed on the web page of the respective institutions.

In all State institutions an assembly of public servants should be organized to create citizen control commissions responsible for overseeing the implementation of the budget, plans for purchasing and bidding, with the legal faculties to file the corresponding charges. Those who make any denouncements will not be able to be fired nor will there be any administrative reprisals against them, unless it is shown that they had no basis.

The new constitution should establish the new principle that there is no immunity for crimes related to corruption. All assets obtained through acts of corruption or money laundering are imprescriptible, it is the obligation of the State to pursue them until they are recovered, trying and punishing those who are guilty. The officials punished for acts of corruption through a final judgement will be disbarred for life from running for public posts or providing public service, as well as prohibited from being a supplier of the State or contracting with Public Administration.

  1. Professionalization and dignity of public service

A radical democratization is required so that workers in public administration never again are hired or fired based on their party affiliation or loyalty, but rather on the basis of their capacities and competency, and so that the career of civil service be respected.

The Civil Service Law should be governed by the principle of the merits and capacities of the applicants, we should eradicate the culture of sharing posts by pacts and political arrangements or by electoral quotas. Likewise they should promote reforms so that the youth can make a career in public service in a decent way and with facilities for access.

  1. A fair tax system

The taxes of all Nicaraguans should not be used or diverted to enrich small groups, but should form part of the sacred national patrimony. Tax collection should be based on transparency, social control and the principle that the payment of taxes should be proportional to income. In this way society will have the resources needed to cover social spending and ensure the minimum functioning of democracy and the construction of a medium and long term national development plan that is able to transcend changes in government.

  1. Incorporating new rights in the Constitution

Respect for human rights in Nicaragua will never be limited by any government, placing arguments of “national sovereignty” above the relevancy of international treaties on this matter.

New fundamental rights should be incorporated and applied, like Gender Equity, and other specific rights of women, that should be implemented in all the State institutions and at all levels of social life.

Likewise, basic income should be established in a progressive manner for people who are living in levels of poverty. It is the only way of ending the political patronage that does so much damage to democracy, and so that the State might protect in this way those most in need.

Nicaragua should be proclaimed as a Social and Democratic Rule of Law State, governed by fundamental rights, by the principle of absolute respect and equality under the law, the control of the citizenry in the affairs of the State, and the defense of the environment.

The right to rebellion or insurrection against dictatorial or dynastic governments should be recovered, as a fundamental essential right of Nicaraguans.

Likewise, new procedural guarantees should be reformed or incorporated: the function of the Police should be to investigate crimes and send the accused to the judicial authorities in a term no longer than 24 hours. In their investigations the Police should be subordinated to the Prosecutor´s office, who should be responsible for directing the investigations and the gathering of proof. Detentions can only be done through a judicial order or when catching a crime in progress.

Jury trials should be re-established for all cases, and exceptional jurisdictions should be ended.

In addition, Nicaragua should bring itself into the XXI Century and promote the access of all children and adolescents to information technologies and the internet.

  1. Reorganization of the Army and the Police

The role that the National Police have performed in the current civic insurrection, as a small, very centralized repressive army, forces us to re-examine the role of the police forces. The Police should play a very important role in ensuring citizen security, in a context of the advance of the drug trafficking cartels and organized crime in Central America.

To keep the National Police from being a small, mercenary army at the unconditional service of a dictatorial government, their operation should be decentralized, creating municipal police who will maintain a national coordination or command, but whose members will be recruited from within the community, who will be subject to the local authorities. The naming of the Chief of Police in each municipality, as well as their term in the post, will be done through direct election of the citizens. The monopoly of the control of the president of the republic over the National Police must end, it should be shared with the local authorities.

The National Police should have a Community Policing approach, composed of people from the community on a rotating manner, with a reduced administrative apparatus and permanent officials. More women should be incorporated into the chain of command of this Community Police.

Likewise, the role and conception of the National Army should be re-evaluated. The collective trauma that the implementation of military service had during the civil war (1982-1990) has made it possible, contradictorily, for the evolution of the National Army as an institution ever more separated from the people.

In times of peace, the Army should have a very reduced apparatus, it should be composed of citizens who provide their civil service regularly within the armed forces at certain times. Likewise, more women should be incorporated into the chain of command of the Army.

It should not only defend the national sovereignty against drug trafficking and organized crime, but also exercise a social function in the most vulnerable social sectors, protecting and defending the environment, enabling youth to join as their first job and acquire technical training. This is the only way to prevent having an Army of full time paid soldiers unconnected to the people. The Army should not have, nor its officers, businesses or companies to finance retirement systems different from those that most of the population have, or caste privileges that promote social inequality.

Due to the importance of this issue, a special plebiscite should be promoted on the reorganization of the National Army and the National Police, so that the people might democratically decide the path to follow.

  1. Educational revolution, academic freedom, and university autonomy.

Nicaragua will never come out of poverty without being able to raise the educational level of its population.

Nicaragua is losing the only opportunity from the “demographic dividend” as dozens of thousands of youth do not have the opportunity to study and work. The dichotomy between primary education and higher education is false. Both are complementary. That is why academic freedom and university autonomy should be insisted on for training the technical staff and the professionals that the country requires.

Primary and secondary education should include a class on civic education, so that the students might learn from an early age how the State functions and what the principles of democracy are.

Within the framework of basic income, it should be ensured that all children finish their primary and secondary schooling. For that purpose 15% of the Gross Domestic Product (GDP) should be used for public education. State resources should be used to develop public education, and the businesses of private schools and universities should never be subsidized. The universities should never be submitted to political power and party control.

The teaching profession and scientific research should be encouraged and protected by the State.

Social innovation and entrepreneurship should be encouraged by the State to expand the labor prospects of the recently graduated youth from the Universities so that they can be inserted into the work world. Likewise, the Youth First Job Law should be approved where the universities and companies will coordinate to provide facilities of access to work to recently graduated youth, and so that the relationship between professional majors and market demand might be improved.

  1. The role of the State in the economy

Given the backwardness of the productive forces in Nicaragua, the State should play the role of promoting economic development, the only way of doing away with migration and poverty. Within a scheme of the social market economy, the principal public services (water, health care, education, energy and communications) should be in the hands of the State. The acceptance of mixed enterprises in these areas, and the percentages of private, national or foreign participation, will depend on the needs of each concrete case.

A State bank should exist that would promote financing, at fair interest rates, to the benefit of the peasantry, artisans and small urban and rural producers. To prevent political patronage and corruption that can lead to their bankruptcy, the workers and clients of the state bank should be allowed to form a verification and control commission of the loans, focused on citizen participation.

The profits of the private banks should be regulated, through a policy of fair interest rates, that do not exploit the population.

  1. Agrarian reform and the defense of the environment

The agrarian reform that was promoted under the revolution in the 1979-1990 period was reversed in later decades. A process of land concentration functioned and now we have the existence of new large landowners. This process was possible because the peasantry did not have financial and technical assistance that would allow it to develop agriculture or ranching. Not only should the right of the peasantry to land be ensured, but also the right of peasant women to be owners of land. Likewise, a state bank is needed whose principal function would be to develop the peasant economy. The State should ensure a policy of fair prices for peasant products.

The agricultural production of Nicaragua in large measure rests on small and medium producers. It is necessary that these sectors grow through increase in yields and productivity, more than by the expansion of the agricultural frontier, which has degraded hydrological basins, produced sedimentation and the disappearance of water sources, and destroyed biodiversity.

Protected areas should be expanded, like Bosawás and Indio Maíz, and other new ones created. Protecting the national capital of the country should be a priority – water, soils, forests and biodiversity – the State should ensure that they be used in a sustainable manner.

The agrarian reform should have an ecological approach, one of defense of the land, forests, water and the environment. Zones apt for agriculture should be defined, planting should not be done on hills or inclines, what lands are apt for ranching should be pinpointed. Extensive ranching should be eliminated, promoting the creation of modern farms with breeds of cattle that allow production to increase without the need to destroy forests. Peasant or indigenous communities should be the protectors of the forests. A process of reforestation should be promoted and the protection of natural reserves for the purpose of caring for the water of rivers and lakes.

  1. For true autonomy in the Caribbean Coast

Raising the autonomy of the Caribbean Coast to constitutional status in 1995 implied great progress, but the real effects of the Autonomy Statute of the Regions of the Caribbean Coast of Nicaragua are more formal than real. The principal decisions on the economic resources of the Caribbean Coast, and investment in them, in reality are not up to the Regional Councils, nor the indigenous communities, but the central government, which continues limiting the right to autonomy of the native population.

Not only should the customs, language and culture be preserved, but also the communal forms of organization of the indigenous population, which should administer and protect the natural resources.

Even though it is true that as a result of the struggle of the indigenous communities progress has been made in the titling of communal lands, as long as there is no resettlement of non indigenous on their land, the autonomy of the Caribbean Coast will be a fiction.

  1. Consolidation of municipal autonomy

Municipal autonomy has been enshrined in the Constitution since 1987, but in reality the municipalities are subordinated to the central government, in spite of the existence of the Municipal Law. The role of the State in society should be realized through the municipalities. The national budget should be invested in the municipalities. The role of the central government should be reduced, and the functions decentralized in the municipalities. The structure of the State should rest on the municipalities, who should control education, the supply of potable water, public services, services of police, sewage and the defense of the environment.

The democratization of Nicaragua passes through transferring more national power and resources to the municipal governments.

  1. Reconstructing the Central American nation

In the XXI century the countries of Central America are intimately linked by their economic bases, but not on the level of state superstructure. What happens in some of the countries of Central America has repercussions on the rest. SICA [Spanish acronym for the Central American Integration System] has played a great role as a project for the reunification of the national economies, but it has not achieved the goal. The establishment of PARLACEN was a great step forward on the political plane, but it has very limited functions. We should make more progress. The deputies to PARLACEN should be the same deputies of the national legislative organs, so that there is no separation and ignorance about the regional reality.

We should proceed until achieving the call for a Central American Constituent Assembly that would allow for the creation of a Central American federation or confederacy.

Managua, Nicaragua, September 14 & 15, 2018.