Political activism is Nicaragua's national pastime, with rallies and protests a regular part of daily life. Even by these standards, the past two weeks have been especially busy. Yesterday, a twelve day nationwide transportation strike came to an end when the central government agreed to provide a fuel subsidy equal to CDN$1.30 per gallon to taxis, busses and transport trucks, bringing an end to roadblocks and sporadic violence by strikers. Recent increases in fuel prices had made it impossible for transport operators to survive on the low, regulated fees they are allowed to charge.
The questions being asked now are about where the money is going to come from to pay the subsidy. Venezuela provides Nicaragua with financial aid and discounted oil, but none of this is publicly accounted for and it is estimated that some $800 million has gone into the private holdings of president Daniel Ortega.
For its oil Venezuela receives 60% of the current world price two years after delivery, with the rest, plus interest, payable after ten years. This should be a great boon for Nicaraguans, but the worst kept secret in the country is that large amounts of this oil is being shipped directly to Honduras and El Salvador, where it can be sold at higher prices. Ortega has a stake in the privately owned company that imports the oil and he refuses to open the books to auditors or the government's revenue ministry, even though the law dictates he must.
The immediate result of the subsidy has been taxis filling their tanks with subsidized fuel and then selling it at just below pump prices, a process they can repeat several times a day. It is difficult to blame the taxi drivers. After all, they can make more money this way than they could carrying fares.
No comments:
Post a Comment