Is Selling Sugar to China Really Such a Sweet Deal for El Salvador?

Salvadoran government officials recently announced a deal to export 52,000 tons of sugar (12% of the country’s annual production) to China in a deal worth $15-20 million to local producers. El Salvador has sold sugar to South Korea, Taiwan, the U.S., Mexico, Canada, Indonesia, and the European Union, but this is the first time exporting to China.

Sugarcane burning in the Bajo Lempa

With Partnership for Growth pressing El Salvador to produce more exports, sugarcane has become a larger part of the country’s economic plan. Already, sugarcane production has created 50,000 direct jobs and 200,000 more indirect jobs. This week Vice President Oscar Ortiz said “This is the key, this is the solution for our country: to diversify our production of exports. We are unable to be alone in a market, we have to be open to a variety of markets and in this direction we have to have the ability to improve our process of commercialization.”

Exporting $15-20 million of sugar to China and creating 250,000 jobs may sound like a sweet deal, but El Salvador is paying a substantial price. In addition to labor, agrochemicals, machinery, processing, and shipping, there are enormous costs related to the environment, public health, food sovereignty, and local culture. The individuals and corporations profiting from sugarcane exports don’t pay these costs. Instead they pass the debt on to the country’s poor who earn sub-poverty wages, suffer from chronic renal failure and other diseases, live in depleted ecosystems, struggle to feed their families, and are forced to migrate to urban areas.

Last year, Voices staff spoke with a team of migrant workers from Santa Ana cutting cane in a field in Usulután. They said they earn the agricultural minimum wage for cutting sugarcane 14-hours a day during the hottest months of the year. In 2014, the minimum wage for agricultural workers was $3.79/day. In 2015, it is up to $3.94/day. That is less than half of what is needed to feed a family. When these migrant workers arrive in a field of ripe sugarcane, they begin by burning the field to defoliate the cane, making it faster and cheaper to harvest, transport and process. The next day, as the field smolders, workers use machetes to cut the cane and pile it into rows. A tractor then loads the cane into tractor-trailers that deliver it to a processing plant. Yes, these and others workers have jobs, but they still live in abject poverty.

Another issue with sugarcane exports is way it is grown – large-scale monoculture production that relies on agrochemicals and is burned before harvest. Monoculture production of any crop destroys local ecosystems and displaces or kills the wildlife and people that once depended on them. When an ecosystem is destroyed, soil structures and natural defense systems deteriorate, requiring inputs such as fertilizers, herbicides, pesticides, and many other toxic agrochemicals that contaminate local communities, rivers, streams, fields and forests. Many of these chemicals are linked to high rates of chronic renal failure, cancer, and other diseases common where sugarcane is produced.

Perhaps the most egregious practice with sugarcane production is burning the fields before harvest. Once alight, sugarcane burns quickly, flames and smoke snapping acre to acre, throwing thick black smoke, ash, and soot high into the air before snowing down on schools, soccer fields, homes, farms, and communities. The particulates include residues of all the agrochemicals that had been sprayed on the fields the months before. In addition to contaminating surrounding communities, burning sugarcane emits large quantities of greenhouse gases that contribute to climate change.

The use of toxic agrochemicals and burning of fields motivated residents of La Tirana, Monte Cristo, San Juan del Gozo and other communities to oppose large-scale sugarcane production next to mangrove forests on the San Juan del Gozo Peninsula. Residents fear that Glyphosate and other agrochemicals would have an adverse affect on their health and destroy the valuable and fragile ecosystem that they depend on.

In addition to the environmental impacts, large-scale sugarcane production also disrupts the local economy and culture. Rural communities in El Salvador have traditionally supported themselves by growing corn, beans, rice and other crops. Farmers generally keep a portion of what they grew to feed their family and sell the rest at local markets to generate a modest income. While small-scale farming will not generate the kind of concentrated wealth that large-scale monoculture can, it is a more sustainable way to live. And the campesino culture has always been one of humility, respect, and simplicity.

In 2013, the UN Commission on Trade and Development published a report titled “Wake Up Before It’s Too Late”. One of the report’s findings is “the world needs a paradigm shift in agricultural development: from a ‘green revolution’ to an ‘ecological intensification’ approach. This implies a rapid and significant shift from conventional, monoculture-based and high external-input-dependent industrial production towards mosaics of sustainable, regenerative production systems that also considerably improve the productivity of small-scale farmers.”

El Salvador’s focus on producing more sugarcane and other export crops does just the opposite. It is doubling down on monoculture production at the cost of small-scale farming. Monocultural production displaces families when they rent, sell, or otherwise lose their land sugarcane producers. There has been a long trend of farming families moving to urban areas where at best they work for minimum wage jobs. Idle youth lack access to education and are subject to the violence and gang culture that El Salvador has become famous for.

Selling $15-20 million in sugarcane may be good for a few Salvadorans, but the money does not pay for or trickle down to people who are bearing the environmental, health, economic, and cultural impacts. The demand for sugarcane is going to grow and the Salvadoran and U.S. governments will continue to promote it as a way to develop the stagnant economy. But Salvadorans should have to an informed debate about whether they are willing to pay the real costs of sugarcane.

The Sugarcane Standoff in La Tirana

Wednesday morning tensions on the San Juan del Gozo Peninsula peaked when 60 people from eight communities gathered on farmland outside La Tirana to stop tractors from plowing 680 acres for sugarcane production.

Workers had already begun plowing when the communities arrived, so they surrounded the tractors and made them stop. The men plowing were not interested in a confrontation so they shut down their equipment and tried to call their boss. The boss was unavailable so they left the site. Naún Diaz, a community leader from La Tirana, said they were hoping the owner would come talk to them, but he never arrived.

As mentioned in two earlier posts this week (click here and here), residents oppose sugarcane production due to the impact on the environment. Don Jorge, a resident of La Tirana told Voices’ staff “it’s their land and they can’t plant about anything they want, just not sugarcane. They can raise potatoes, cattle, corn… anything but sugarcane.”

While there is a break in plowing, community leaders continue their efforts to get the Ministry of Agriculture or the Ministry of the Environment to intervene. Both have jurisdiction, but so far, no one has responded to calls or letters. Voices staff learned today that a mid-level employee from the Ministry of the Environment failed to pass on a letter the communities wrote to Environmental Minister Lina Pohl asking for help. In the coming days Voices and other civil society organizations will be following up with the Ministry to determine what happened to the letter and ensure a copy finally reaches Minister Pohl. Don Jorge from La Tirana calls on Minister Pohl “to give the vulnerable people in the region and Bajo Lempa priority.”

Mr. Diaz said that on Monday, fifteen community leaders visited City Hall in Jiquilisco with the hopes that “the Municipal Environmental Unit or the Mayor [David Barahona] would promote a municipal ordinance against sugarcane cultivation. He added, “it’s our hope that [Mayor Barahona] will support us in this way. We are in his municipality and he has to do something positive that benefits the communities.

La Tirana has been quiet since Wednesday, but the issue is far from over. The investor who signed a 15-year lease for the land is unlikely to just walk away from it or the idea that he can plant sugarcane. And the communities are emphatic that they will not allow sugarcane production near the mangroves.

Mr. Diaz said the communities are “ready to stop the cultivation of sugarcane [so close to their natural resources], but the Ministry of the Environment or Ministry of Agriculture should help [resolve the situation].” Voices and other civil society organizations are also working to find legal and political ways to protect the region from sugarcane production.

Investigators from El Salvador’s Attorney General’s Office Visit El Chile

For over a year, the small, economically depressed community of El Chile on El Salvador’s San Juan del Gozo Peninsula has been trying to stop private investors from encroaching on nearby mangrove forests and fragile beaches – area that are supposed to be protected State land. Residents got some good news last week when a team from the State Attorney General’s Office (FGR in Spanish) came to investigate, a sign that someone is finally listening.

(Photo from FGR)

Community leaders believe investors have illegally appropriated land in two areas. One investor bought a large plot on one side of the village and fenced it off all the way through a section of mangrove forest to the Bay, an apparent violation of Salvadoran law. He even posted a sign in the mangrove forest threatening legal action against trespassers. Another investor who had acquired a long stretch of beachfront property in El Chile allegedly bought the adjacent dunes and part of the beach. Like the mangrove forest, the dunes and beach are protected State land that cannot be privatized.

In recent months, Residents of El Chile have escalated their advocacy efforts, holding press conferences, calling State agencies, and engaging in a variety of other efforts to get the State to oust these investors from the public land.

Finally, last week the Attorney General’s Office (FGR, in Spanish) sent a team to El Chile to investigate allegations that investors were encroaching on State land. FGR investigators even took the time to tweet some photos from their visit, though there is little information about their time in the community. One FGR tweet says, “If [the FGR] proves the crime of usurpation of [State] land, [the owner] could face a sentance of one to five years in prison.”

It is too early to call the FGR visit a victory for the community, but it is certainly a positive development. The rule of law is weak in El Salvador and too often private investors and corporations are able to ignore laws with impunity. The visit at least demonstrates that the advocacy efforts have put the issue on the FGR’s radar. Residents of El Chile will now have to ensure that protecting these State lands remains a priority and the investigation doesn’t get lost on someone’s desk.

 

 

 

 

 

 

 

 

Residents of El Chile are concerned about the State land for a few reasons. They are concerned about the mangroves because they use the forests for fishing and harvesting clams – their primary sources of income. They are concerned about the beaches for more environmental reasons. Critically endangered Hawksbill Sea Turtles use the beach and dunes as a nesting ground, and developing the beaches will further threaten their survival.

The community has other fears as well. The mangroves, dunes, and beaches are State land that everyone should have a right to use in accordance with the law. If El Chile doesn’t protect it from developers, nothing will be left for future generations. And despite more than 20 years of trying, residents of El Chile have yet to get titles to their land. With investors buying land on all sides, they fear it is only a matter of time before developers and the State try to kick them off their land.

The struggle for land began in at least 2004 when a tourism consultant presented a plan to turn the Jiquilisco Bay into the “Cancun of Central America.” Phase One of his plan was to pave a road out the San Juan del Gozo Peninsula and acquire land. The government completed the road in 2011 and investors have bought up the most valuable properties in the region. The next steps are to attract developers and investors to the region to build hotels, resorts, marinas, wharfs, shopping centers, golf courses and other tourism facilities. The second Millennium Challenge Corporation grant, if ever released by the U.S. Embassy in San Salvador, will provide seed money for tourism infrastructure projects to attract other investors, domestic and international.

El Chile is just one small community taking on investors right now. Residents of communities like La Tirana, Montecristo, El Retiro, Cieba Doblado, Las Mesitas, Isla de Mendez, San Juan del Gozo, and others are equally concerned about how tourism development will affect their environment and agrarian-based economy and culture.

Voices on the Border is currently partnering with other organizations to help build the organizational capacity of these communities to realize their own goals and priorities, and defend against unwanted development. In April of this year, we drafted a report in Spanish and English on El Chile detailing these threats (they are attached above).

The Price for a $277 Million MCC Grant

Since Sanchez Cerén became the President of El Salvador on June 1, his administration has said securing the $277 million Millennium Challenge Corporation (MCC) grant is a top priority. Vice President Oscar Ortiz said they want to get it done within their first 100 days in office, which means within the next three months.

The MCC approved the grant in September 2013, but the US Embassy blocked the release of the funds until the government met conditions such as reforming the Public Private Partnership Law (P3 Law) and restructuring a popular seed program.

The P3 Law facilitates government contracts with private entities to provide public goods and services. The US Embassy made the P3 Law a prerequisite for the MCC funds but they don’t like the law passed by the Legislative Assembly. They don’t approve of the oversight role the Legislature created for itself – a committee that must approve all P3 contracts. The Embassy and business community also don’t like that the law exempts important public goods and services like water, health, education, and public security from public private partnerships.

One of the most vocal opponents of the P3 Law has been El Salvador’s labor movement. Unions fear that public private partnerships will result in a loss of jobs, decrease in wages, and even worse working conditions as private investors maximize profits. Other civil society organizations fear the P3 Law, even with the exemptions, will lead to the privatization of important goods and services – like water, health care, and education.

The US Embassy also doesn’t approve of the Seed Distribution Program operated by the Ministry of Agriculture (MAG). Officials argue the procurement process violates the Central American Free Trade Agreement (CAFTA) because the government only buys seeds from Salvadoran Farming Cooperatives, excluding international seed producers like Monsanto. The program provides thousands of jobs for people working for the cooperatives and ensures that more than 400,000 farmers have quality, non-GMO seeds.

Last week US Ambassador said that the Embassy’s problem was not with the seeds, but with the process. On May 2 Voices wrote an article arguing that the problem was not the seeds or the procurement process, but CAFTA.

The MCC program is popular with a lot of Salvadorans and politicians who see it as free money for development projects. But a growing number of environmentalists, unions, and communities argue that the Embassy’s conditions are too high a price to pay for development projects they don’t want anyway. And many see the conditions as an encroachment on El Salvador’s sovereignty.

Among those who oppose the MCC program outright are environmental groups and communities in the Jiquilisco Bay. MCC funds will support tourism development in the Bay and residents fear it will cause irreparable harm to mangrove forests, nesting grounds for the critically endangered Hawksbill sea turtle, and El Salvador’s most fertile agricultural land. (Voices has written about Tourism on this blog in the past – here are two reports we wrote on tourism in the Jiquilisco Bay).

Roberto Lorenzana, President Sanchez Cerén’s Chief of Staff said two weeks ago that the administration already has a draft Fomelinio Law (in El Salvador the MCC is called Fomelinio) that they will send to the Legislative Assembly soon. It’s unclear what is in the Fomelinio Law, but it likely contains all of the reforms the US Embassy is requiring for release of the MCC funds. Even before he became Chief of Staff, Lorenzana said the new administration is going to open the procurement process to national and international seed producers, in an apparent effort to satisfy the Embassy’s concerns.

While some Salvadorans have spoken out against the second MCC compact, the P3 Law and other neoliberal policies, many have not. The politics of opposing neoliberal economic policies grew more complex when the leftist FMLN party took office in 2009 and again on June 1, 2014. People and groups that organized against privatization, dollarization, CAFTA, and the first MCC compact (all policies adopted by the rightwing ARENA party between 1994 and 2008) have not been as critical since the leftist FMLN party took power. The result is that opposition to these destructive policies is less now that the FMLN is power.

El Salvador will soon get a $277 million grant from the U.S. Millennium Challenge Corporation, but it should be clear – this is not free money.

The 17 farming cooperatives that have been growing seed corn and beans for the MAG’s Seed Distribution Program will pay for the MCC grant when they have to compete with Monsanto and other international seed giants.

Communities that depend on the mangroves for their survival will pay for the MCC grant when developers cut down forest to build resorts and golf courses.

The Salvadoran labor force will pay for the MCC grant when private contractors take over government services and cut jobs and wages to increase profitability.

And all Salvadorans will pay if public goods and services like water, education, and health are contracted out to for-profit entities, especially if there is no oversight in the process.

 

A Declaration from COO: The Bajo Lempa Continues to Resist!

Friday was International Day of the Mangroves.  Voices’ partner communities and other friends from the Bajo Lempa and Bay of Jiquilisco marked the day by meeting in Comunidad Octavio Ortiz to discuss Climate Change and the tourism projects that the Salvadoran Government and private investors are planning for the region – issues that affect the health of the mangrove forests in the region.

They concluded the meeting by drafting a Declaration: “In Order to Have Life and Hope: The Bajo Lempa Continues to Resist” – We’ve posted below in English and Spanish (the original).

We at Voices are in the middle of a fundraising campaign to raise $7,600 by this Friday (Aug. 2). The funds are to support the communities that drafted this Declaration in their efforts to protect their environment, including the mangrove forests, and preserve their simple, agrarian way of life. Here is a link to our original appeal posted last week. If have donated already, THANK YOU! If you haven’t, there is still time and every dollar helps (you can donate by clicking here). This is an urgent appeal – the government and private investors have huge resources and institutions backing them.

There is a slideshow at the bottom of the post with photos from the mangroves and coastal area, and the communities that are asking for you support.

IN ORDER TO HAVE LIFE AND HOPE,
THE BAJO LEMPA CONTINUES TO RESIST

Accompanied by the revolutionary spirit of Father Octavio Ortiz Luna, we the residents of the Bajo Lempa met again in the community of La Canoa to analyze the issue of climate change, which we experience in the form of floods and at times as prolonged droughts. These affects of climate change are becoming more intense and more frequent, and are the product of a political economic model that is leading us to destruction.

We also met to consider that we live in the region of El Salvador with the greatest biodiversity. We are located in one of the most pristine mangrove forests on the planet.

Species such as crocodiles, fish, crabs, migratory birds like the roseate spoonbill and many others make up an ecosystem that is vital for the survival of our communities. In addition, the mangrove forests are a natural barrier that protect the region from the rising sea waters and reduce the impacts of flooding.

The mangrove forests are an ecological treasure that communities have used, maintained and improved for many years, because we look to them for the sustainence and hope for the present and future generations.

However, the tranquility inspired by the mangroves, the simple lifestyle of the communities, and the hope of life for future generations, are being threatened by domestic and international corporations, and their insatiable thirst for profit through tourism development, with complete disregard for the impacts on the region’s biodiversity and the human rights of our population.

The construction of a modern road through the heart of the Bay of Jiquilisco, land speculation, the government’s tourism development plan, approval of the Public Private Partnership Act, and the the Second Millennium Challenge Compact, indicate that there are serious efforts to turn our region of El Salvador into another Cancun, Mexico, where the beaches are private and exclusive to foreign tourists.

But our communities have a history of struggle and organization. This land and its resources belong to us, and our children and grandchildren, and we have the strength, courage, and moral duty to defend our lives and territory until the end.

So, on this day marking the INTERNATIONAL DAY OF THE MANGROVES, the communities of the Bajo Lempa and in the mangrove forests of the Peninsula of San Juan del Gozo, DECLARE:

1 – We strongly reject all mega tourism and we are ready to mobilize and use all legal remedies against companies seeking to destroy our natural resources.

2 – The communities that live in the mangroves are the only guarantee of the forests’ preservation, and therefore we are organizing and strongly linking with these mangrove communities.

3 – The Communities of the Bajo Lempa, and especially Community Octavio Ortiz are in the process of adaptating to climate change with intense focus on food sovereignty based on agro-ecological production that protects biodiversity, soil, and water. Nature is our source of knowledge and every day we learn more about her.

4 – We demand the government promptly complete and maintain the public works projects meant to protect the region from flooding. We also demand government agencies regulate discharge from the September 15 dam.

We demand respect for our right to life and our right to a healthy environment. We want that forests remain an inexhaustible source of life. We want to have clean and sufficient water supplies, and we want to produce our own food and eat well. We want health and education for our children. We want to remain free …

We want to have life and hope.

Community Octavio Ortiz, July 26, 2013

EN ESPAÑOL:

PARA TENER VIDA Y ESPERANZA,

EL BAJO LEMPA SIGUE EN RESISTENCIA

Acompañados por el espíritu revolucionario del Padre Octavio Ortiz Luna, nuevamente nos reunimos en la comunidad La Canoa para analizar el tema de cambio climático que vivimos en forma de inundaciones y otras veces en forma de sequías prolongadas.  Hemos visto que estos fenómenos se presentan cada vez más intensos y con mayor frecuencia  y que son producto de un modelo económico político que nos está llevando a la destrucción.

Pero también nos hemos reunido para analizar que vivimos en la región de El Salvador de mayor riqueza biológica. En nuestro territorio se ubica uno de los bosques de manglar más desarrollados del planeta.

Especies como cocodrilos, peces, cangrejos, aves  migratorias como la espátula rosada y otras muchas conforman una red vital para la sobrevivencia de las comunidades. El bosque de manglar también constituye una barrera natural que detiene el avance del mar y reduce los impactos de inundaciones.

Este bosque de manglar constituye una riqueza ecológica que las comunidades han aprovechado, mantenido y mejorado durante muchos años, porque en el encuentran el sustento y son la esperanza para las presentes y futuras generaciones.

Sin embargo, la tranquilidad que inspira el manglar, la forma de vida sencilla de las comunidades y la esperanza de vida para las futuras generaciones, hoy se ve amenazada por la sed de lucro insaciable de empresarios nacionales y de corporaciones trasnacionales que pretenden impulsar un desarrollo turístico sin importarles la conservación de la biodiversidad ni los derechos humanos de la población.

La construcción de una moderna carretera que cruza el corazón de la Bahía de Jiquilisco, el acaparamiento y especulación  con la tierra, el plan gubernamental de desarrollo turístico, la aprobación de la Ley de Asociaciones Público Privadas y un interés sospechoso de la empresa privada por que se apruebe el Segundo FOMILENIO, son los principales indicadores de que existen serias pretensiones de convertir este territorio en una región similar a Cancún, en México, en donde las playas son privadas y exclusivas para turistas extranjeros.

Pero nuestras comunidades tienen una historia de lucha y de organización, este territorio y sus recursos nos pertenece y le pertenece a nuestros hijos y nietos, tenemos  la fuerza, el coraje y  el deber moral de defender la vida y el territorio hasta las últimas consecuencias.

Por eso, en este día que se celebra el DIA MUNDIAL DE LOS MANGLARES, las comunidades del Bajo Lempa y las comunidades habitantes de los bosques de manglar de la Península de San Juan del Gozo, DECLARAMOS:

 

1-    Que rechazamos enérgicamente todo megaproyecto de turismo  y que estamos dispuestos a movilizarnos y a demandar judicialmente a cualquier empresa que pretendan destruir nuestros recursos naturales.

2-    Que las comunidades que vivimos en los bosques de manglar somos la única garantía de su conservación, para ello nos estamos organizando y vinculando fuertemente entre comunidades del manglar.

3-    Que las comunidades del Bajo Lempa y en especial la comunidad Octavio Ortiz estamos llevando a cabo un proceso de adaptación al cambio climático con un intenso trabajo por la soberanía alimentaria, en base a la producción agroecológica que protege la biodiversidad, el suelo y el agua. La naturaleza es nuestra fuente de conocimiento y cada día aprendemos más de ella.

4-    Demandamos del gobierno la pronta ejecución de obras de protección ante inundaciones, así como su permanente mantenimiento y la regulación de las descargas de la presa 15 de Septiembre.

Exigimos que se respete nuestro derecho a la vida, nuestro derecho a un medio ambiente saludable. Queremos que los bosques sigan siendo fuente inagotable de vida. Queremos tener agua limpia y suficiente, queremos producir y comer bien. Queremos salud y educación para nuestros hijos.  Queremos seguir siendo libres…

Queremos tener vida y  esperanzas.

Comunidad Octavio Ortiz, 26 de Julio de 2013

 

 

 

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Earth Day and Climate Change in the Bajo Lempa

This weekend residents of the Bajo Lempa region of Usulután are celebrating Earth Day in Amando Lopez. The events will focus on climate change and its extreme impacts on the communities, as well as the possible impacts of the Millennium Challenge Corporation (MCC) and associated tourism projects. Voices posted a blog last week regarding the MCC in El Salvador, and another today about the effect of climate change. We will post more over the weekend about the Earth Day activities and future efforts in the fight to protect communities and the environment in the Bajo Lempa.

This article was written by Jose Acosta, Voices’ new field director, and first published in Contrapunto (El Bajo Lempa con Tenacidad y Esperanza), an online journal in El Salvador.

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The Bajo Lempa, with Tenacity and Hope

The Intergovernmental Panel on Climate Change says human actions are directly changing our global climate, and environmental changes will affect all people and ecosystems. The panel also shows that those who live below the poverty line will suffer the greatest impacts.

Residents of El Salvador have already felt the disastrous effects of climate change. The Salvadoran Ecological Unit (UNES, in Spanish) reports that the country’s average temperature has increased 1.2 degrees over the past 40 years. As a consequence, there has been an increase in the occurrence and strength of storms and hurricanes. A recent government study found that El Salvador has suffered five large-magnitude, climate-related events in just the past three years. These events resulted in 244 deaths and affected more than 500,000 people, 86,000 of which live in shelters. In addition, these events have caused considerable material damage. Three storms – hurricanes Ida and Agatha, and stropical storm 12-E – resulted in $1.3 billion in damage.

Poorer populations are even more vulnerable to the effects of climate change, and these storms exacerbate poverty by further reducing the ability of impoverished families to respond to crises. During and after disasters, households are forced to use or sell their few resources just to survive, limiting their long-term resilience and further diminishing their food security. Their way of life and capacity to cope with their poverty are weakened with each disaster, forcing many into chronic poverty. CESTA/Friends of the Earth demonstrated this cycle in a study carried out  in the communities of Amando Lopez and Comunidad Octavio Ortiz, located in the Lower Lempa region of Usulután.

The study reports that the main problem for communities in the Bajo Lempa is flooding. According to the Confederations of Federations for Agrarian Reform (CONFRAS) flooding is partly due to the mismanagement of the 15 of September dam located a few kilometers up the Lempa River. During Tropical Storm 12E (October 2011), the discharge from the dam reached 9,000 cubic meters per second, resulting in record flooding throughout the communities downstream from the dam. The CEL, the government institution that manages the dam, was supposed to send information about flow rates to the communities downstream to warn them when the Lempa River may rise. Unfortunately, the CEL did not communicate with the communities and the most extreme flooding happened with little warning.

Organizaitons in the Bajo Lempa, however, came together and formed the Inter-Institutional Roundtable, and issued a press release on November 11, 2011 stating, “We demand to know the CEL’s plan for managing the release of water from the dam and the environmental impact study in order to coordinate the agricultural production cycles and manage risks, and to prioritize life and the protection of the inhabitants of the communities.”

In addition to the flooding, the local population reports several other impacts of climate change, including higher temperatures, droughts, extinction of species, increase of disease, and salinzation of soil and water sources due to increased sea levels. The Association of the United Communities for Economic and Social Development of the Bajo Lempa (ACUDESBAL) declared that communities in the Bajo Lempa are strongly feeling the affects of climate change, and that it has increased food insecurity and made poverty worse.

These problems increase as the levels of consumption and the concentration of greenhouse gases in the atmosphere continue to rise. The IPCC says that if CO2 in the atmosphere reaches 450 ppm, average temperatures will rise 2 degrees. Such a rise in temperatures will cause catastrophic climate events.

For El Salvador projections indicate an increase in the temperature between 0.8 and 1.1 degrees by the year 2020. Some of the expected impacts in the Bjao Lempa are:

–       Public health problems

–       Shortage of potable water and species of plants and animals

–       Contamination of wells and salinization of bodies of water,

–       Degradation of agricultural lands and decrease in their productivity

–       Loss of domestic animals and livestock

–       Local drainage systems will fill with sediment and collapse

–       Failure of other existing flood prevention systems, among them roads, paths, and bridges

The affected communities are already taking steps to prevent these impacts before they happen. Concepción Martínez, a historic leader of Comunidad Octavio Ortiz, recently stated, “We believe that in confronting climate change, the only viable option is to fight for our survival.”

A resolution adopted by various communities states, “we meet under the heat in La Canoa (another name for Comunidad Octavio Ortiz), to analyze the impacts of climate change that we are experiencing in the form of floods and droughts, but also in the form of the voracity of the transnational businesses and governments that do not respect the cycles of life.”

In this occasion we (communities in the Bajo Lempa) express:

“We commit to watch and demand that government policies confront climate change, and we demand they listen and include the opinions and proposals from the communities and civic organizations when forming these policies… to survive and maintain hope that another Bajo Lempa is possible.”

 

The Debate Over Public-Private Partnership Law and MCC Funding in El Salvador

Last week Pacific Rim Mining Company announced it is seeking $315 million dollars in damages from El Salvador. It was a stark reminder that the 8-year old mining debate, which included several years of threats and violence between mining supporters and opponents, has yet to been resolved and could still result in a devastating economic blow to El Salvador.

As the mining issue continues, another debate with the potential to become just as volatile is brewing. In March the Funes Administration provided some details about its proposal for a second round of funding from the Millennium Challenge Corporation (MCC), a US aid program started by President Bush in 2004. The proposal is worth $413 million dollars, half of which will likely go towards an infrastructure project like improving the Litoral Highway that runs along El Salvador’s southern coast. The other half is likely to help finance public-private partnerships and improve human capital, which seems to mean education.

As details of the proposal emerge, opposition to a second round of MCC funding is growing. So far, opposition has opened on two fronts. The Salvadoran labor movement has been the most outspoken opponent, denouncing the proposed Law on Public Private Partnerships (P3 Law) since last year. Environmentalists and communities in the Lower Lempa region of Usulután have been less outspoken, but oppose the MCC proposal because the public-private partnerships will support tourism, which they strongly oppose. In 2011, members of the anti-mining movement also spoke out against the P3 Law fearing it would result in mining activities.

Mangrove Forests near La Tirana, a community targeted for a large tourism project

Because politicians within the FMLN are supporting the MCC, the politics of opposing the P3 Law and tourism are a little more complicated than opposition to mining was. Other than a protest outside the US Embassy in March and other small activities organized by the labor movement, opposition has remained largely behind closed doors, which may change soon.

            The Public Private Partnership Law

US Ambassador Maria Carmen Aponte said in October 2012 that approval of a second round of MCC funds relies on the passage of the P3 Law. The labor movement and their international supporters, argue that the P3 Law will privatize government operations including the airport, seaports, health care facilities, and other important services. They fear it will result in the loss of thousands of jobs, increasing the country’s already high rates of unemployment and driving wages down even further.

The labor movement and other opponents also do not want the private sector to control important resources and services like water, education, and health controlled. For example, Salvadoran civil society has fought against privatization of water for many years, making it such a toxic issue that politicians are unable to advocate for it publicly. Just like the government has not been able to privatize water, civil society organizations have not been able to pass a water law they have been promoting for over 8 years. Among other things, the law would protect water resources from privatization. Similarly, in 2002 then President Francisco Flores tried to privatize part of the health care system, but health care workers and many others took to the streets and forced the government to back off. Opponents of the P3 law fear it will make it easier for the government to accomplish what it has failed to do in the past – privatizing water and health care.

Supporters of the P3 Law, including President Funes, counter that public-private partnerships are not privatization, and the government will not privatize any important services, like health and education. They argue, instead, that public-private partnerships will result in more foreign direct investments, injecting capital into services and industries that are lagging behind.

The labor movement and other activists fear, however, that while not called privatization, the P3s are a way to accomplish the same goals. Concessions could last as long as 40 years, which means the state is essentially relinquishing control of an asset. Similarly, while capital investments are needed, the P3 Law will allow private, international investors to generate profits from basic services in El Salvador and take the profits overseas instead of re-investing in El Salvador.

Public-private partnerships are not new in El Salvador – they government has contracted out many operations to private companies over the years. One regular criticism is that these relationships prioritize profits over the well being of Salvadorans. For example, in the aftermath of the October 2011 floods, communities and organizations in the Lower Lempa blamed the CEL for washing them out. The CEL is the state-owned agency that manages the dam, generating electricity that private power companies sell for profit. The more electricity produced, the more money the companies make. In the months after the 2011 floods CEL representatives responded frankly, stating they operate the dams to make electricity and generate profits, not protect the people downstream.

FESPAD and Voices on the Borders 2012 legal interns recently published a full analysis of the P3 Law.

Tourism and other Investments

One of the public-private partnerships being proposed in the second MCC compact is tourism – hotels and resorts being built along El Salvador’s Pacific coast. In December the government solicited proposals from the private sector and received 49 responses, 27 of which are tourism projects in Usulután, La Paz, and La Libertad.

Tourism is not inherently bad, but communities in the Lower Lempa of Usulután fear that building hotels and resorts in and around their important and fragile ecosystems will cause irreparable harm. One Lower Lempa community targeted for a tourism project is La Tirana, an isolated and economically poor community located at the edge of one of the most pristine mangrove forest in Central America. In addition to its immense natural beauty, the forest supports thousands of species of flora and fauna. The nearby beaches are protected as a nesting ground for several species of endangered sea turtles. Residents of La Tirana fear tourists would damage the fragile mangroves with construction of houses and resorts, jet skis and motorboats, and solid waste and sewage, while displacing local residents and their farms.

Proponents of tourism argue that resorts and hotels in places like Tirana would provide jobs and spur the local economy. They believe this to be especially important in communities, such as those in the Lower Lempa, that have had their agricultural economy diminished by free trade. But locals doubt resorts will help the local economy. They know that hotels are much more likely to hire bilingual youth from San Salvador who have degrees in hotel management than poor campesinos who barely have a sixth grade education.

Voices staff recently met with community members in La Tirana, and they are very much against outside investors building resorts in their region. Recognizing that they live in a special place, the community board is proposing that the community build a series of small, humble cabanas that would have a small ecological footprint, but provide comfortable housing for a small number of guests. They are also proposing that the community build a small community kitchen that could feed guests. The community wants to develop its own small eco-tourism industry that it can regulate and ensure does not harm the forest or turtle nesting ground. It would also mean that the money from tourism would benefit the community, and not just make wealthy investors in San Salvador or abroad even richer.

Other communities in the region are even more vulnerable than La Tirana. In El Chile and other small communities, many residents still do not have title to their land. They fear that if a private investor wants to build a hotel or resort the State could take their land and they would have no legal recourse.

Our staff also met with other communities in the Lower Lempa – Comunidad Octavio Ortiz, Amando Lopez, Nueva Esperanza – and several local organizations. They are also completely opposed to tourism projects in the region. They fear that hotels and resorts will further destroy agricultural land, use up limited water resources, and destroy local culture. The community of Octavio Ortiz even wrote in their strategic plan that they see tourism as a large threat to farming and their peaceful way of life.

While most of the public-private partnership proposals involve tourism, there are quite a few agricultural projects. According to PRESA, the government agency managing the project proposals, they received 14 requests to support production of exports in dairy, mangoes, limes, and honey. In order to be considered for a public-private partnership, investors have to have $100,000 in capital and be producing export crops. The capital requirement means local farmers will not be able to participate. And the requirement that products be grown for export means even more land will be dedicated to products that do not contribute to food sovereignty, which is a top priority for the region.

There are also civil society leaders and academics in El Salvador who oppose the MCC because they see it as the latest phase in implementing a neoliberal economic agenda in their country. They hold it in the same regard as the privatization of state assets (1990s), dollarization (1995-2001), Central American Free Trade Agreement (2006), the first MCC compact (2007-2012), and Partnership for Growth (2011). Similarly, Gilberto Garcia from Center for Labor Studies (CEAL, in Spanish) believes the

highway projects, including the northern highway funded by the first MCC compact and the Litoral Highway project planned for the second compact, are part of an effort to build a land bridge in Guatemala. The “Inter-Oceanic Corridor” will connect ports on the Pacific coasts of Guatemala and El Salvador with Caribbean or Atlantic ports in Guatemala. ODEPAL is managing the project in what they call a public-private partnership. The land bridge is located in Guatemala, but it is right on the borders with El Salvador and Honduras, giving both countries easy access.

Politics of Opposing the MCC and P3 Law

Building a strong national movement around opposition to the second MCC compact and the P3 Law may be more difficult than organizing Salvadorans against mining. While the anti-mining movement was able to reduce the debate to a single issue that all Salvadorans could understand – i.e. gold mining will destroy water resources for 60% of the country – most people believe that tourism, better highways, and other capital investments are always good. Similarly, the P3 Law is fairly abstract and difficult to reduce into a simple message that the majority of Salvadorans can relate to their everyday lives.

The politics around the MCC and P3 Law will make it more difficult to achieve the kind of nation-wide opposition that the anti-mining movement was able to garner. During the mining debate, the FMLN (leftist political party) was the opposition party and had the political freedom to take an anti-mining position. The FMLN is now in power and has to consider the economic and political interests that helped them get there. President Funes and FMLN presidential candidate Sanchez Cerén support the P3 Law and MCC compact, arguing the investments will be good for the economy. According to anonymous sources, many of the same business interests that helped Mauricio Funes with the 2009 presidential elections will benefit from the P3 Law and MCC funds. FMLN legislators have been a slower to sign on to the P3 Law. At times FMLN legislators have said it was not their top priority, and more recently they have tried to negotiate amendments to exclude certain sectors such as health and education from public-private partnerships. Officials from the conservative ARENA party have accused the FMLN legislators of not supporting the law because they want to implement a socialist economy agenda.

But the civil society organizations, communities, and labor unions that are opposed to the P3 Law and the MCC funding generally make up much of the FMLN’s base. If Sanchez Cerén and his supporters continue to embrace the P3 law and the MCC funding, while many in their base protest against it, it could exacerbate an existing split within the party in the months leading up to the February 2014 presidential elections. Many former FMLN militants and supporters, especially in the Lower Lempa, already believe the movement they once fought for no longer represents their interests and values.

Though the US and Salvadoran governments want to pass the P3 Law and sign the MCC compact before the elections, many opponents are gearing up for a long struggle. Even if the P3 Law passes, when the government wants to enter into a public-private partnership the Legislative Assembly will have to approve it. They are likely to face great scrutiny and opposition. Similarly, developers wanting to break ground on tourism projects in La Tirana and other communities are likely to face some rather significant legal and social barriers – much like Pacific Rim faced in Cabañas.

The Mangroves of La Tirana

Thompson Reuters published a photo yesterday of La Tirana, one of the communities in the Lower Lempa region of Usulutan targeted for tourism. The short article accompanying the photo focused not on tourism, but on the impact of greenhouse gases and climate change on the region. Here’s the photo and the full text:

Mangrove trees are pictured at the small community of La Tirana, about 110 kilometres (68 miles) from San Salvador August 3, 2012. Because of its location as a thin strip of land between two oceans in a tropical zone, Central America is one of the regions most vulnerable to greenhouse gases. The Economic Commission for Latin America and the Caribbean (ECLAC) estimates that the area stands to lose $10 billion over the next four years for this reason alone. The damage is not confined to El Salvador, Central America’s smallest country, but also its neighbours. Across the region, large tracts of mangroves have also been destroyed by the shrimp and hotel industry, the cultivation of palm oil and sugarcane, as well as salt fields. According to a FAO study, Central America’s mangroves as a whole declined by 35 percent between 1980 and 2005 in terms of hectares. Honduran mangroves decreased by 56 percent, Nicaragua’s forests by 37 percent and Panama by 32 percent. Picture taken August 3, 2012. REUTERS/Ulises Rodriguez

Last year, Ryan Luckey published an article in Al Jazeera English documenting the loss of these mangrove forests in La Tirana and elsewhere in El Salvador. The article quotes Dr. Ricardo Navarro from CESTA (EL Salvador Center for Applied Technology), “All along the central coast of El Salvador there is a dead zone stretching along the beach, measuring between 10 and 50 metres. The cause? Climate change.”

Voices staff took a delegation to La Tirana earlier in this year to see the dead zone – here are a couple photos:

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Royal Decameron Announces Plans to Build Resort in the Lower Lempa

Last week the Royal Decameron Hotel Group announced plans to invest $60 million in three El Salvador projects – an expansion of their high-end beach resort in Sonsonate, construction of a four-star hotel in San Salvador, and a beachfront resort in Usulután. The new Usulután facility, which will cost $12 million, will be modeled after their Sonsonate resort with 300 individual cabins, an office center, spas, and a conference room.

Royal Decameron’s announcement wasn’t completely unexpected. Investors have been working to develop tourism in the Lower Lempa for many years, and there are likely several other projects being planned. Though tourism may seem like a great boost for the local economy, it’s a complicated issue and Royal Decameron is likely to face some stiff opposition from Lower Lempa residents.

Usulután is centrally located along El Salvador’s coast. One of the local treasures is the Bay of Jiquilisco, a large inlet known for its fishing, mangrove forests, and beautiful beaches. The stretch of land between the bay and the ocean is the San Juan del Gozo Peninsula. The only things out on the peninsula right now are mangrove forests, a few fishing and crabbing villages, and a nesting ground for endangered sea turtles… and a very fancy highway.

In 2004, the Ministry of Tourism hosted an event for potential investors at the Intercontinental Hotel in San Salvador. An Argentinean architect presented plans for the Espino Resort, as well as other infrastructure development plans. His presentation included draft plans for “El Pueblo,” a high-end shopping center on the San Juan del Gozo Peninsula for tourists that included grocery stores, ATMs, and other amenities. It was all part of a 25-year plan that outlined specific stages of development – land acquisition, construction of a highway to the end of the peninsula, and a dyke that would supply water. Eight years into the plan, investors have acquired land, the highway through the peninsula is complete, and the government announced plans last year to install a water system.

Three people are reported own much of the real estate between La Tirana and Isla de Mendez. Angel Velasquez owns two sections of land totaling 2.5 miles of waterfront property. Eduard Quiroz owns 1 mile of beachfront property, and the Tesak family owns another 3 miles along the coast. CESTA, a Salvadoran nonprofit environmental organization, owns 872 feet of beachfront that they preserve. Sources also claim that ex-president Alfredo Cristiani owns property in the region, as does FMLN politician Facundo Guardado, who has a consortium of investors that includes possible FMLN VP candidate Oscar Ortiz. Royal Decameron is rumored to own 103 acres in the region though it is unclear whether this is the property they plan to develop.

Land acquisition on the peninsula has been quiet, but not free of controversy. Locals report that Quiroz and Velazquez regularly violate land-use and easement requirements. For example, environmental regulations allow landowners to own property up to 50 meters above the highest tide. Quiroz and Velazquez, however, fenced their property at the high-tide point, ignoring the 50-meter boundary. Similarly, in 2006 ISTA (the Salvadoran Land Reform Institute) distributed plots of land to landless families in La Tirana. The families moved in, but lacking roads and utilities, seven of them sold their plots to Velazquez. Ignoring ISTA regulations that require passage between the plots and access to the mangroves, Velazquez fenced off the plots and blocked access to the forests. The president of La Tirana, Nahum Diaz, has spoken out about the violations but to no end. The 23 families in La Tirana have to survive on crabbing and shellfish, while Velazquez controls access to all of the farmland, which he uses to graze his several hundred head of cattle. Residents are also upset because in addition to blocking access to agricultural fields, Velazquez cleared large areas of forest to expand his cattle operation.

As investors were starting to buy up land along the Peninsula, Gustavo Guerrero arrived in the Lower Lempa. He introduced himself as the charity manager for the Tesak family, which owns Bocadeli, a Salvadoran food company. In 2007, Guerrero created the San Juan del Gozo and Jiquilisco Bay Integral Development Association and illegally listed local community leaders as members of the board without their knowledge. The new organization published a full-page add in a Salvadoran paper listing its priorities – building a levee for irrigation, constructing a National University campus in the Lower Lempa, and other investments to build the tourism infrastructure. He is still handing out checks and has financed several projects in the region including hiring the Linares Company to repave of the road in La Canoa. In 2009, one of our local partners said “Gustavo Guerrero is the person that made it possible for the rich to buy land,” which they often did at prices far below-market value.

But land acquisition also included making room for the new highway through the Peninsula, primarily convincing landowners to allow builders to cut across their property. Linares, the company that repaved the road in La Canoa won the contract to build the road. If you’ve been in the Lower Lempa at all over the past few years you’ve seen large dump trucks tearing up and down the main road – that was Linares hauling sand and backfill for the highway.

Few people or groups are currently protesting tourism in the Lower Lempa. Many locals, however, oppose development projects that threaten their fragile environment. The community of Amando López, for example, released a statement in May 2012 stating: “This land is our life and our life is this land, we will never stop resisting any project that threatens our natural resources and our organized communities.” They also said, “we know that so-called development means more problems for poor communities, and we are not interested in the development they are offering, because in the end the only thing they develop are transnational businesses. We care about our livelihoods and our children’s lives, and we want proposals to come from our communities, that respond to our interests, to our livelihoods, our needs, and our own worldview.

While Amando López residents were specifically referring to the Millennium Challenge Corporation in their address, they assure us that these sentiments apply to a wide array of initiatives being imposed on the region, including tourism. Amando López was the only community in the region to reject funding offered by Gustavo Guerrero.

The Jiquilisco Bay is one of El Salvador’s few remaining treasures, and residents know that once it’s gone – it’s gone. The mangrove forests protect the region from flooding, which is happening with greater frequency, and the Bay provides residents with food and a livlihood. Communities are very aware of how fragile their ecosystem is and are unlikely to let outsiders exploit it.

The argument for allowing tourism is that it will provide jobs and economic growth, but local residents understand that most jobs will go to people with degrees in tourism and hotel management. They also know that profits will be distributed to investors in San Salvador and beyond and not stay local. Residents of the Lower Lempa also know better than to count on the government to enforce the environmental laws that are supposed to protect their natural resources.

But as pointed out by our friends in Amando López, there is a bigger issue at play. Many in the Lower Lempa are not interested in the kinds of development that wealthy investors from San Salvador are selling. Communities prioritize food security over tourism, and a healthy environment for their kids over a larger income for themselves. Amando López residents said “this land is ours and we will defend it with the same courage with which we won it.”

Royal Decameron says that they still have to work out some land acquisition issues, so this is a story that will likely play out over the next several years. Along the way they will likely face a healthy opposition to their ideas of development.