President Daniel Ortega addressed the assembled crowds of thousands of supporters on Friday and said: “We are here with open doors.”
There is a great deal of false and inaccurate information about Nicaragua in the media. Even on the left some have simply repeated the dubious claims of CNN and Nicaragua’s oligarchic media to support removal of President Ortega.
This article seeks to correct the record, describe what is happening in Nicaragua and why. As we write this, the coup seems to be failing, people have rallied for peace (as this massive march for peace held Saturday July 7 showed) and the truth is coming out. It is important to understand what is occurring because Nicaragua is an example of the types of violent coups the US and wealthy use to put in place business dominated, neoliberal governments. If people understand these tactics, they will become less effective.
Mixing up the Class Interests
In part, US pundits are getting their information from media outlets, such as Jaime Chamorro-Cardinal’s La Prensa, and the same oligarchical family’s Confidencial, that are the most active elements of the coup media. Repeating and amplifying their narrative delegitimizes the Sandinista government and presents unconditional surrender by Daniel Ortega as the only acceptable option. These pundits provide cover for nefarious internal and external interests who have set their sights on controlling Central America’s poorest and yet resource-rich country.
The coup attempt brought the class divisions in Nicaragua into the open. Piero Coen, the richest man in Nicaragua, owner of all national Western Union operations and an agrochemical company, personally arrived on the first day of protests at the Polytechnical University in Managua, to encourage students to keep protesting, promising his continued support.
The traditional landed oligarchy of Nicaragua, politically led by the Chamorro family, publishes constant ultimatums to the government through its media outlets and finances the roadblocks that have paralyzed the country for the last eight weeks.
The Catholic Church, long allied with the oligarchs, has put its full weight behind creating and sustaining anti-government actions, including its universities, high schools, churches, bank accounts, vehicles, tweets, Sunday sermons, and a one-sided effort to mediate the National Dialogue. Bishops have made death threats against the President and his family, and a priest has been filmed supervising the torture of Sandinistas. Pope Francis has called for peace dialogue, and even called Cardinal Leonaldo Brenes and Bishop Rolando Alvarez to a private meeting in the Vatican, setting off rumors that the Nicaraguan monseñores were being scolded for their obvious involvement in the conflict they are officially mediating. The church remains one of the few pillars keeping the coup alive.
A common claim is Ortega has cozied up to the traditional oligarchy, but the opposite is true. This is the first government since Nicaraguan independence that does not include the oligarchy. Since the 1830s through the 1990s, all Nicaraguan governments– even during the Sandinista Revolution– included people from the elite “last names,” of Chamorro, Cardenal, Belli, Pellas, Lacayo, Montealegre, Gurdián. The government since 2007 does not, which is why these families are supporting the coup.
Ortega detractors claim his three-part dialogue including labor unions, capitalists and the State is an alliance with big business. In fact, that process has yielded the highest growth rate in Central America and annual minimum wage increases 5-7% above inflation, improving workers’ living conditions and lifting people out of poverty. The anti-poverty Borgen project reports reports poverty fell by 30 percent between 2005 and 2014.
The Ortega economy is the opposite of neoliberalism, it is based on public investment and strengthening the safety net for the poor. The government invests in infrastructure, transit, maintains water and electricity within the public sector, and moved privatized services. e.g., health care and primary education into the public sector. This has ensured a stable economic structure that favors the real economy over the speculative economy.
What liberal and even leftists commentators overlook is that unlike the Lula government in Brazil, which reduced poverty through cash payouts to poor families, Nicaragua has redistributed productive capital in order to develop a self-sufficient popular economy. The FSLN model is better understood as an emphasis on the popular economy over the State or capitalist spheres. While the private sector employs about 15% of Nicaraguan workers, the informal sector employs over 60%. The informal sector has benefitted from $400 million in public investments, much of it coming from the ALBA alliance funds to finance micro loans for small and medium-sized agricultural enterprises. Policies to facilitate credit, equipment, training, animals, seeds and subsidized fuel further support these enterprises. The small and medium producers of Nicaragua have led the country to produce 80-90% of its food and end its dependence on IMF loans. Continue reading