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Proceso is published weekly in Spanish by the Center for Information, Documentation and Research Support (CIDAI) of the Central American University (UCA) of El Salvador. Portions are sent in English to the *reg.elsalvador* conference of PeaceNet in the USA and may be forwarded or copied to other networks and electronic mailing lists. Please make sure to mention Proceso when quoting from this publication.

 

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Proceso 1129
January 19, 2005
ISSN 0259-9864

 

 

Índice


 

Editorial: The thirteen years of the Peace accords

Politics: The beginning of an uncertain year

Economy: The economic situation thirteen years after the Peace Accords

 

 

Editorial


The thirteen years of the Peace accords

 

The Peace Accords were signed 13 years ago (January 16th , 1992). That interval of time allows us to seriously analyze the achievements of the Peace Accords as well as its limitations. This balance has to question, on the one hand, all of those interpretations that have read and that still read the Peace Agreements as an unimportant matter, and even as a backward movement in the history of El Salvador; on the other hand, it also has to question all those interpretations that have seen in the Peace Accords the greatest accomplishment of the Salvadoran population. Thirteen years later, both positions are plainly revealed for what they are: biased interpretations and not very objective views.

In order to come closer to the actual meaning of the Peace Accords, it is necessary to take a closer look at its most important achievements.
1. The civil war ended. No one will be able, ever, to say how good it was for the society to end with the civil war.
2. The Armed Forces were depurated and now they are no longer a part of the political life.
3. The FMLN dissolved the guerrilla structure, and it became a legally established political party.
4. The Office for the Defense of the Human Rights and the National Civilian Police were created.
5. The reform process of the judicial system began.

All of these important achievements would be unthinkable without the Peace Accords. All of these achievements were fundamentally political, and have been the key to keep, for thirteen years and with all of the problems that come along with it, the incipient Salvadoran democratic order. The Salvadoran democracy can be as weak as anyone might think it is, but it surely would not even exist if the Peace Accords had not ended with the war, if they had not depurated the Armed Forces, and allowed the conversion of the FMLN into a political party.

However, the problem is that it is not enough to make political achievements to create more of a democratic and an equitable a social reorganization for most of the Salvadorans. Those who signed the Peace Accords knew this, judging by the content of the documents. The document clearly states that the political reform was the first step to build a different society, different from the one affected by the civil war; the second step had to lead to an economic reform. How to take this step? What were going to be the mechanisms and the institutions involved? What was the expected economic model? These questions do not have a clear answer in the Peace Accords, and that is simply because the economic reform was just an insinuation. The bet of those who signed, mainly those from the FMLN, was that the adequate conditions for this would develop themselves later on -once the political reform would take place- in order to approach the subject of an agreed economic model compatible with the needs of the population. That “later” never came; the insinuated aspects of the economic reform in the Peace Accords were systematically eliminated from the agenda, and they were just forgotten. The euphoria for the political profits in the Peace Accords has been, partially, the reason why the economic reform was forgotten. The ARENA administrations are also responsible for all this –especially the administrations led by Alfredo Cristiani and Armando Calderón Sol- and did everything they could to proceed without following the economic demands approached in the Peace Accords.

Yet, even if the economic reform was in the background, it has its roots in the Peace Agreements. Leaving it for later, as something derived from the political reform, was a terrible mistake committed by those who, when signing the Peace Accords, had the intention to build a different society.

The FMLN is partially responsible for the fact that a new and fairer economic model was not discussed from a serious and an analytical perspective at the time that the Peace Agreements were negotiated. To have delayed this discussion proved to be an erroneous decision, because such discussion never took place. ARENA and the business elite took advantage of the vulnerability in the economic matters included in the Peace Accords: an inarticulate model divided in three sectors that has only favored a small group of people.

When the Peace Accords were signed no one detected the terrible mistake committed by the FMLN. In the discussions held with the government, the FMLN was seen at an equal level, an institution able to paralyze the country, an institution that had to be part of an agreement. It had both territorial and military power; in fact, the best aspect of the political reform cannot be understood without the capacity that the FMLN had to make a military political pressure. The FMLN was never in better conditions to conceive, articulate, and execute the political reform along with the economic one. However, they approached these subjects as a couple of parallel realities, not as a couple of realities that had to be blended together.

As a result of all this, we not only have an extremely weak democracy, always threatened by the lack of governance, but also an economic model that, through the exclusion and the poverty that it creates, undermines and debilitates the advances of democracy. In other words, we have the consolidation of an economic model that, far from being coherent with the political achievements of the Peace Accords, it is actually a threat for such goals. This is the drama of El Salvador: a violent peace prevails, not the violence of the war, but the violence of poverty, the exclusion, and marginalization. There are reasons to celebrate the 13th Anniversary of the Peace Accords, but also there are reasons to complain for losing a great opportunity -to build a new socioeconomic order- because of the myopia and the ambitions of those who time and time and again had proclaimed not to be interested in anything but the well-being of the majorities.

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Politics


The beginning of an uncertain year

 

The year 2005 appears as a year full of uncertainties, a year that comes along with the threat of repeating the state of political anxiety that we lived throughout 2004. Once again, the background is formed by the confrontations between both of the most important political parties. The negative situation between ARENA and the FMLN in reference to the approval of the General Budget of the Nation is just a symptom of a complex crisis, which should lead us to seriously analyze the performance of the political system.

The wear-and-tear strategy of the adversary
At this point the results are evident. ARENA would have preferred to buy the will of a couple of congressmen from the FMLN, instead of negotiating with the leaders of the left wing party. The fact that these organizations are incapable of talking about the best mechanisms to finance the expenses of the State for this year has definitively to do with the pre-electoral conjunction. Inside the official party, they seem to believe that the discredit campaign will end up with the image of the FMLN, whose leaders are presented as extremists who try to sabotage the genuine actions of the Executive power. At least that is how the government’s spokespeople have referred to the situation time and time and again, when they have explained their differences with the left-wing.

The president’s team believes that a good part of the population approves of the performance of the Saca administration. In fact, according to the last poll conducted by the Institute of Public Opinion of the UCA (IUDOP, in Spanish), more than 55% of the population thinks that the president is adequately administrating the country. According to the survey, "the Salvadorans described the performance of the government with a 6.76, in a scale from 0 to 10. It is important to indicate that this amount is superior to the one obtained by Flores by the end of 2003". In reference to the promise made by the government about improving the social situation of the country, 45% of the population considers that Saca is fulfilling it; 27.3% thinks that his administration is only partially fulfilling it, whereas only 26.8% of those interviewed declared that the president is failing to fulfill his campaign promises.

In summary, the strategy of wearing down the image of the left-wing party has been about connecting the behavior of the leaders from the FMLN with their lack of sensibility towards the demands of the country. And they expect that the level of acceptance that the president counts with before the public opinion will be enough to discredit the members of the FMLN. This way, ARENA would be making sure that the party will have a good performance in the next elections. In this line, the right wing bet is placed in a constant wear-and-tear of its main opponent, as a mechanism to force the approval of the budget. As for the rest, many easily realize -in a clear authoritarian option- that the Executive authority has the last word on the State’s expenses and other elements of the political life.

Everything seems to indicate that it will be very difficult for the FMLN to convince the public opinion about the fairness of their skepticism. In the first place, the left-wing party was not convincing enough when speaking about the reasons why it was against the plan of expenses designed by the Council of Ministers. Secondly, it did not present an alternative plan to neutralize what it considers as unnecessary in the governmental debt plan. Due to these mistakes, the left-wing party lost the battle and was not able to gain credibility among the public opinion. The lack of credibility about the behavior of the FMLN is due to their incapacity to reveal its postulates to the Salvadoran population.

It is important to discuss this issue because, in spite of what usually is indicated with too many speculations, the Salvadoran population has not totally approved of the decisions of the official party. The survey of the IUDOP itself indicates that an important number of Salvadorans do not think that the discussion groups have to do with a genuine effort of the president to approach, along with other political actors, the country’s problems. A considerable number of those interviewed thinks that these actions are simply used as propaganda for the government: "the results reflect divided opinions about this issue: 48.9% of the people said that the discussion groups are useful to improve the social situation of the country; however, 47.2% said that these groups were only part of the governmental propaganda".

In other words, the strategy of wearing down the image of the left-wing party, that the government thought about launching through the alleged discussion groups, has not come up with the expected results. Such fact, however, does not reflect the amount of resources that ARENA has invested in the subject. A considerable part of the Salvadoran population thinks that it is a hook to gain electoral preferences. It is necessary to insist on this subject, because the left-wing has tried without much intelligence to dealt with the problem. Its members never knew how to react before the attacks of the official party’s propaganda.

For that reason, The leaders of the FMLN follow the ARENA saga hoping that the citizens’ own capacity of analysis will help them to confront the next elections. In any case, there is no doubt that, at the moment, there is an authentic crisis between two of the key institutions of the Salvadoran power. It is important to pay attention to this problem of governance, especially in the context of the Peace Agreements’ Anniversary.

A regime in crisis?
Some make an effort to present the political situation like a fleeting crisis that will be
resolved once the results of the next elections are revealed. Some people expect that the situation takes a turn for the best once the voters act with a little good sense, and return the control of the Legislative Assembly to ARENA. Such optimism would be based on the internal disorganization portrayed by the FMLN, combined with the great popularity that Saca counts with among most Salvadorans. There is no doubt that a possible victory for ARENA in the next legislative elections would be a good mechanism to palliate the crisis between Legislative and the Executive authorities, which already has lasted for too long. In this case, the official party would only have worry about negotiating the approval of the budget with its natural allies from both the PCN and the PDC.

In any case, to fulfill the predictions of ARENA, this result would have to be positively overwhelming for this party in order to take away the 56 votes that now belong to the left-wing party. In order to do that, the other parties of the right-wing must have a superb political performance, much better than the one they have offered until now. Otherwise, the problem will not be resolved. The political strategists of Saca have placed their bets on this scenery. They have prevented the PCN and the PDC from disappearing and have promised a position to the PCN in the electoral tribunal.

In other words, the right wing has accumulated enough power in the institutions of the country to ensure "the necessary" victory in the next elections.

Nevertheless, as the strategists of the government would have to know by now, the electoral results are always uncertain. In addition, in the Salvadoran context everybody knows how strong each one of the parties actually is. It would be reasonable to think that the legal salvation maneuver of the PDC and the PCN will not be enough to ensure the success of the political bet placed by Saca. In addition, despite the last minute changes, Saca and the FMLN keep playing the starring roles in the country’s political life, they are the only parties that count with enough strength to get the attention of the electorate. In this context, it is quite difficult to predict what will be the electoral scene in which the desires of the right wing will be fulfilled. It is very probable that, even in the worst of the cases, the FMLN is able to keep its power of veto in the Legislative Assembly.

In this context, a short-term solution will not solve the problem. The present political situation is so serious that demands solutions that go beyond the immediate goals of the actors in conflict. The conjunction of the Peace Accords reminds us that despite the importance of this foundation stone of the modern Salvadoran policy, it is necessary to review it and amend it, to put it at the height of the present needs of the population.

There are many elements that justify the need of a new reform to complement and to change, possibly, the conception of the political confrontation that is at the base of the Peace Accords. The permanent disagreements with the approval of the Budget are the most evident element of this note of discord between the politicians. With this attitude, they no longer worry about giving a certain image of unity during the celebrations of the Peace Agreements. It has been a couple of years since the pro-governmental groups and the opposition have had separate celebrations. For some of them, the agreements already gave everything they had to give for the harmonization of the political life; for others, the right wing squandered the spirit of the agreements that they never intended to actually fulfill.

Instead of getting lost in a debate between the positions that sustain, on the one hand, that the Accords are a thing of the past, and, on the other hand, that the Accords have been used by some of the most powerful sectors of the country for their own advantage, it would be convenient to wonder what are the commitments that the politicians should make so that peace can be restored in the country. And, at first sight, it seems that it is absolutely necessary to dramatically reform the structure of the political power. Experience has demonstrated that it is useless to continue dreaming about cooperation, between both sectors in conflict, in the name of the national interests.

For that reason, the least that can be done is to adopt a series of political reforms that can improve the coherence of the political institutions. There are a couple of subjects in reference to this problem:
1. It seems necessary to adopt a reform in the electoral institution, which simultaneously assures its independence from the parties, and turns it into the most important authority of the electoral matters.
2. It would be necessary to discuss a reform that automatically assures that whoever controls the Executive authority is also able to control most of the seats in the Congress. This way, the system would be more coherent, and the mechanism through which the levels of democracy are reported would be clearer.

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Economy


The economic situation thirteen years after the Peace Accords

 

The celebration of the 13th Anniversary of the Peace Accords has opened the doors to reflect on the implications of these historical documents in the present. Indeed, one of the most important points within the Agreements was the economic subject: the parts in conflict were committed to look for solutions for the diverse socioeconomic problems through the transference of properties, the credits aimed to cultivate the lands, and the creation of a Forum for Social and Economic Agreements, where different aspects from the economic and the social scenery would be approached. During the implementation of such agreements, it was the Forum what seemed to be more problematic, due to the obstacles that the association of businessmen saw in it.

From the beginning, the Forum was conceived with a certain ambiguity. In the introduction of the Fifth Chapter in the Peace Accords, this ambiguity is evident, and it indicates how difficult it would be to deal with the Forum. "The philosophy or the general direction of the economic policy of the Government, which the left wing does not necessarily share, are not the object of this Agreement, both parts agree that it is necessary to offer some basic directions that will allow to create the necessary social stability in the transition period, to consolidate peace and to advance towards the reunification of the Salvadoran society".

In other words, no one is questioning the economic policy making style of the government. Considering that the economic policy is nothing more than the reflection of the economic theory that the government uses to maintain the status quo, it can be said that the changes that could be implemented were only superficial. Thus, the Forum of Social and Economic Agreement is a failure in reference to the economic issues. To a certain extent, it is possible to accept that the other aspects of that part of the document were moderately resolved: the land transference program, some measures to alleviate the social cost of the structural adjustment programs, and the national reconstruction plan. Although it is important to mention that many of the most relevant decisions made in the Forum would affect the subjects that were previously mentioned, this observation remained in a piece of paper, because the important economic matters were never approached during the brief existence of the Forum.

The Forum was formally established on February 16th of 1992. Nevertheless, the country’s most important business associations did not attend, because they considered that it was important to fulfill several conditions first. After a continuous number of rejections, it was not until September 9th of that same year when the agreement group between the private sector, the representatives of the government, and the labor sector finally got together. A year after the Peace Accords, there seemed to be a possibility to negotiate some of the aspects of the Labor Code. In 1993, the Forum, due to the boycott of the business sector, came to an end. In fact, for several political actors at the time, this forum did not make any sense, because its duties had been adopted by the Superior Council of Labor, an institution that had been recently created.

The forum never came close to at least to create the "basic directions that could allow the country to generate a social stability in the transition period". In fact, for many analysts, the forum had a promising beginning, creating expectations about the most important decisions in economic and social matters that would be made for the benefit of all the Salvadorans. However, during its implementation and due to the business elite’s constant refusal to discuss these issues, it ended up being just a space to negotiate labor subjects. It is clear that this aspect is extremely important in a democracy, but is not enough for its consolidation. Therefore, the forum did not last in the long term.

In this context, it can be said that the peace negotiations were and are conceived as a purely political exercise; in this sense, it was a space that both the government and the insurgent groups took advantage of to determine the creation of a new political scene. This is not a despicable action in any sense; nevertheless, it left the economic matters in a secondary place of importance. In fact, some thought that, once the political freedom was established, the solution to the economic problems created by the conflict would be conceived in the new scenery. Thirteen years later, there are no substantial advances on this matter.

From the official perspective, they speak about the consolidation of democracy in the country and about the right course in the way towards development. In ARENA there are voices that triumphantly announce that El Salvador, once the war ended and the Agreements were reached, became a country of opportunities for all. This biased perspective does not contemplate the fact that a considerable part of the population still lives in unfavorable conditions (the percentage is higher than the one of 1992), since the country has substantial socioeconomic differences.

Perhaps, the most important reflection is that it would be wrong to consider that the political and the economic dimensions can be handled separately. It is not possible to talk about the consolidation of democracy in a country where almost half of the inhabitants live in poverty. Both dimensions must then be complementary; otherwise, a degree of political freedom could exist, but just to build "castles in the air". There still is an economic deficit in the agreements.

Some transformations in the economic matters
Since the Peace Accords were signed, the Salvadoran economy has been subjected to many changes. Some socioeconomic indicators, among them the poverty level, have revealed slight advances. Nevertheless, there are others, mainly in the national accounts, that reveal discouraging numbers. An example is the stagnation of the economy, demonstrated by the reduction of the GNP from the 7.5% that it had in 1992, to the 1.8% that it reached in 2004.

In references to the advances, although the poverty level has been reduced throughout these 13 years, that does not mean that the problems are resolved. The Survey of Homes and Multiple Purposes (EHPM, in Spanish), indicates that from 1992 to 2002, the poverty level was reduced from 65% to approximately 43%. Meanwhile, the percentage of population that lives in conditions of absolute poverty decreased by 12.3%, when it went from 31.25% to 19.2% in that same period.

More than half of the reduction of the absolute poverty levels during the last years can be explained by the increase of the remittances. Although migration is considered as an effect of the social and the economic displeasure of the population, it is important to mention that the remittances have brought positive consequences for the national economy. For 1992, the economic contributions sent by the Salvadorans who live abroad prevented a little more 4% of the rural population from reaching levels of absolute poverty. Ten years later, this percentage had increased to 8.6%. The remittances, then, are the most important source of income for these families and help to resist the considerable commercial deficit of the country. After the Peace Accords were signed, the migration level decreased (15,000 people per year); however, by1996, with the deceleration of the economy, that amount increased again (35,000 people per year). From the total amount of people that emigrates, nearly 60% of them are between 15 and 30 years old; most of them leave because they are searching for better employment opportunities.

On the other hand, according to the Report of Human Development El Salvador 2003, prepared by the Development Program of the United Nations (PNUD, in Spanish), in 2002, at least 4.3 out of every ten individuals of the country continue living in poverty, whereas 19 out of every 100 people live in absolute poverty. This means that their income is below the cost of the basic food basket. In the case of the rural population, the situation is worse: the poverty level affects 55.8%, and 29.1% live in absolute poverty.

The distribution of the income is another problem, and the indicators have shown an unfavorable behavior in the last years. El Salvador has historically presented a concentrated income distribution structure. For example, in 1961, the wealthiest 20% of the population received 61% of the national income; whereas the poorest 20% only received 6%. In the seventies, this situation took a turn for the worse: whereas 20% of the poorest families reduced their participation level in the national income (only 2%); the wealthiest 20% increased it (66%).

This situation affected the civil war of the eighties. Nevertheless, in 1992, the situation was slightly improved because 20% of wealthiest homes received 54.5% of the national income, and 20% of the poorest families, 3.2%. For 2002, 20% of the wealthiest homes had increased their participation to 58.3%, and 20% of the poorest families had reduced it to 2.4%. In addition, the urban-rural social gaps had become larger; in 1992, the total poverty level was11.3%, and the absolute poverty level was 11.5%; for the year 2002 these numbers had been increased to 21.8% and 16.9%, respectively.

Another one of the important effects brought by the postwar period was the “contraction” of the coffee-growing sector. This sector, which was traditionally characterized as the axis of the economy, barely reached in 2002 an exportation level of 3.5%. The fall of the prices in this sector all over the world took the country, not only to a smaller production level, but to a reduction of the rural labor level. El Salvador centered its axis of growth in the industrial sector and in the field of commerce. And now, the maquilas are the ones that provide the most important amount of contributions to the national income.

On the other hand, throughout this stage an important transformation in the fiscal matters took place. The Peace Accords had a budget to sponsor social programs of transition and services. The international aid was present, that is why now the external debt of the government exceeds 38% of the national production. And although the government was concentrated in the improvement of the present taxation system, this one managed to achieve such improvement by increasing the Value Added Tax (IVA, in Spanish), established in 10% in September of 1992, and reaching 13% in July of 1995. At the moment, the IVA is the most important source of taxes and represents approximately 57.41% of the total revenue for 2004, which led the country to a regressive taxation structure.

The political and the economic improvements have to follow a parallel direction in order to speak about a true consolidation of peace. The information about poverty, the reduction of the income level, and the fiscal situation indicate that it is still necessary to achieve many social and many economic improvements.

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