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 New Approach to Youth Violence?

The number of students murdered in El Salvador more than doubled from 52 students in 2010 to 126 in 2011. In January 2011, even before the increase of violence in Salvadoran schools, the Ministry of Education (MINED) and the National Civil Police (PNC) began developing a plan that would, in-part, put police patrols in the schools most affected by gang violence. In late January 2012, Sub-director of the PNC, Manuel Ramírez Landaverde, announced they would begin implementing the new programs for the 2012 school year, with the goal of reducing student violence and the murder rate.

One of the new programs is “Discipline through Sports,” which aims to bridge the divide between students and police officers. According to an expert on Salvadoran youth and gangs, there is a very common belief in El Salvador that the police are “corrupt to its core.” The source, which requested anonymity, said that many communities, rural and urban, believe the PNC has “been infiltrated by gangs, by organized crime, by narco-trafficking, and you name it.” The source also said, “police brutality is common,” and they also “extort kids in the gangs so they don’t beat them or their families, or investigate them.”

It is unclear what the new program, which police officials tout as both preventative and protective, will look like, but the goal seems to be to get police officers active in coaching or even playing sports with the kids. Through direct interactions with students, the PNC hopes to be more than just a police presence. Landaverde said that the program “will allow us to detect, before any warning or situation, a problem developing within any group of students.”

While it is important that the police recognize the divide between the police and youth, Discipline through Sports seems to do little  to address the reason for the divide – the perception that the police are the actual “bad guys.” Instead of addressing accusations of abuse and corruption, police officials seem more interested in gathering information and detecting issues early, rather than strengthening their relationships with youth.

The PNC and MINED have identified 300 schools as “high risk,” 166 of which are also considered the “most vulnerable.” The program will assign 160 officers to work on sports programs in the 300 schools, which is just over 1 officer for every 2 high-risk schools. The 160 officers will join another 400 officers who are patrolling the 166 schools that are already marked as the most vulnerable. Sub-director Landaverde also said that thousands of other personnel would continue supporting schools around the country with “patrols, control, education, and road security, regulating vehicle traffic around the schools.”

The program is part of the PNC’s effort to reduce El Salvador’s extremely high murder rate (66 per 100,000, second highest in the world). Police officials recently said they would reduce the murder rate by 30% in 2012, in part by reducing the levels of violence among youth. According to David Munguía Payés, a retired General who is now the Minister of Justice and Public Security, and other government officials, violence perpetrated by youth gangs accounted for 90% of El Salvador’s 4,223 murders in 2011. El Salvador’s Government Forensics Institute, former PNC officials, and several civil society organizations, however, assert that youth gangs account for only 10-20% of the nation’s murders. They attribute the majority of El Salvador’s violence to international organized criminal networks involved in trafficking drugs, guns, and people, money laundering, and other illicit activities. Though the 126 student victims only account for 3% of the murder in 2011, the PNC is focusing on schools because they believe them to be recruiting centers for the gangs. They hope that by increasing the police presence, active gang members will no longer have the access that they once did, and youth will focus more on their studies instead of turning to gangs and violence.

The focus on murdered students may also be a good public relations move for the PNC and Funes Administration. Highlighting the tragic murders of these students,  the PNC and other officials are able to continue casting youth gangs as the heinous enemy and justify the same kind of draconian security plans implemented in the past (Mano Duro, 2003 and Super Mano Duro, 2004 – both laws were found to be unconstitutional by El Salvador’s Supreme Court). In just the past month, the Funes Administration has militarized the country’s domestic security institutions in a manner not seen since the Peace Accords were signed in 1992.

In 2011, the Funes Administration proposed to steer youth away from gangs by requiring “at risk” youth ages 16-18 to participate in a military training program. Activists and experts rejected the plan arguing that the youth would emerge from the program as skilled laborers for the gangs and drug traffickers. Instead of putting youth into a military program, the PNC’s latest idea puts the police into the schools.

Teachers, organizations and other experts, however, have criticized the PNC’s proposal fearing that it will only lead to more police brutality. A spokesperson for Bases Magisteriales, a teacher’s union, shared a recent story from the Joaquín Rodenzo school in downtown San Salvador as an example. He said that police would hit students and even put their service weapons to the student’s heads. The Bases Magisteriales spokesperson said that schools simply don’t have the resources to support the PNC presence and protect the rights of the students.

Salvador Sánchez Cerén, El Salvador’s Vice President and Minister of Education, signed off on Dicipline through Sports on January 30, 2012, and Security Minister David Munguía Payés hopes to see the plan in place within two months. Whether putting police officers into school sports programs and patrolling the hallways is something new that will deter involvement in gang activities or just another heavy-handed security measure that will result in more abuse remains to be seen. But with such uncertainty about who is responsible for the violence and the motive behind the crimes, there is plenty of reason to doubt the plan will help reduce El Salvador’s murder rate by the 30% officials are hoping for.