VZCZCXYZ0000
PP RUEHWEB

DE RUEHMU #0871/01 0932156
ZNR UUUUU ZZH
P 032156Z APR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 9714
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000871 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR WHA/CEN 
 
E.O. 12958: N/A 
TAGS: PGOV ECON KDEM SOCI NU
 
SUBJECT: NGO GIVES ORTEGA A FAILING GRADE ON HIS FIRST 60 DAYS 
 
¶1. (U) Summary: After a legal, economic and political analysis of 
the Ortega administration's first sixty days, Movimiento por 
Nicaragua (MpN), an influential civil society organization, gave the 
government a failing grade.  Analysts attacked the government's 
numerous decrees and legislative initiatives that run counter to the 
constitution and legal precedent, and its growing totalitarian 
tendencies.  An expert economist reported that the administration 
has (so far) maintained economic policies similar to previous 
governments, and will likely continue to be dependent on foreign 
assistance.  End Summary. 
 
Legal Analysis 
- - - - - - - - 
 
¶2. (U) Dr. Gabriel Alvarez, a Constitutional Law specialist, based 
his analysis on the proposed laws and regulations supported and 
enacted by the Executive and Legislative branches.  He noted that 
six laws, twenty-three decrees and three presidential agreements 
have been published since the inauguration, and that many of them 
violate and/or contradict the Constitution and a number of existing 
laws.  The following examples highlight particularly egregious 
transgressions: 
 
¶A. Decree 02-2007, the President creates the "Latin American Unity" 
Medal.  According to Article 138.14 of the Constitution, only the 
National Assembly is authorized to create honorific orders and other 
distinctions of national character. 
 
¶B. Decree 03-2007 contradicts Law 290, Article 11, where the 
President of the Republic has the faculty to create as many 
secretariats as he wants, but does not have the faculty to create 
the so-called Councils, created in Article 1 of Decree 03-2007. 
 
¶C. Presidential Agreement 16-2007 appoints Rosario Murillo as the 
coordinator of the Council of Communication and Citizenry, violating 
disposition of Article 11 of Law 438 "Law of Probity," which 
explicitly establishes in numeral a. that the spouse or common-law 
spouse cannot exercise public functions. 
 
¶D. Law 610 "Reform of Ley Marco" Article 1, violates the 
constitutional principle of superiority, established in Article 182 
of the Constitution, as it postpones the entrance in force of Law 
520 and other reforms. 
 
¶E. Decree 6-2007 violates the autonomy laws of the North and South 
Atlantic Autonomous Regions by establishing a "Council of 
Development of the Caribbean Coast" to coordinate the consultation 
processes of the regional governments. 
 
¶F. Decree 10-2007 Reform of Decree 44-2004 in Article 6 grants 
executive functions to the Coordinator of the Council of 
Communication and Citizenry, concerning the   official travel of 
government officials, violating what is established in Law 612 
"Reform to Law 290" Article 11, which states that councils cannot 
perform any executive functions. 
 
¶G. Decree 8-2007 that creates in Article 1 the National Council of 
Reconciliation and Peace and grants executive faculties, such as 
making policies, plans, programs and projects to be considered by 
the National Assembly regarding peace, reconciliation and national 
unity, violates the same law and article previously described. 
 
¶3. (U) In addition, Dr. Alvarez criticized President Ortega's "total 
disrespect for the legal structure," by illegally seizing control of 
property from autonomous institutions, altering the National Seal in 
violation of the constitution, and flouting the Cultural and 
National Patrimony laws by giving away original manuscripts of famed 
poet Ruben Dario.  Dr. Alvarez also stated that the Sandinista 
government's secretive communications policy violates the 
constitution, which establishes the right to information of the 
public regarding official activities.  He characterized the 
administration's actions as "crude illegality" - not a lack of 
knowledge of legal techniques, but rather, an expression of 
authoritarianism. 
 
Political Analysis 
- - - - - - - - - - 
 
¶4. (U) Cesar Castillo Navas of Movimiento por Nicaragua described 
the political acts of the President as authoritarian. He highlighted 
the creation of illegal citizenry councils, Ortega's refusal to move 
to the Presidential house, the taking over of the Olof Palme 
Building, disrespect of the National Symbols, nepotism, the giving 
away of cultural patrimony, and the appointment of Cardinal Miguel 
Obando to a public position. 
 
¶5. (U) According to Castillo, Ortega's rule has been largely 
characterized by the concentration of power, secrecy and attacks on 
freedom of speech, making international commitments without 
consultation, erratic international relations, complaisance with 
interventionist attitudes (regarding Venezuela), and intending 
continuous re-election.  Castillo also acknowledged a few "positive" 
reforms, such as the reduction of public sector "mega salaries," the 
elimination of extra fees for health care and education, and a 
financial austerity policy. 
 
¶6. (U) Dr. Castillo concluded by advising the government to respect 
the constitutional order and laws and democratic freedoms, 
contribute to the strengthening of a rule of law, maintain 
respectful and harmonious relations with all countries, avoid 
confrontational rhetoric at international level, and consult the 
strategic decisions of the country with civil society.  He also 
urged the President to abandon any plans to constitutional reform 
that would allow for presidential reelection. 
 
Economic Analysis 
- - - - - - - - - 
 
¶7. (U) Economist Jose Luis Medal started his analysis by comparing 
the Ortega's economic policy to previous governments.  He concluded 
that, while the administration has so far declined to state a 
comprehensive economic policy beyond socialist platitudes, actions 
to date in the realms of currency policy, credit policy, fiscal 
policy, and external cooperation have remained largely consistent. 
Medal predicted that the government would attempt to return to an 
agro-export driven growth model, but would remain dependent on 
foreign assistance. 
 
¶8. (U) Dr. Medal noted that the government's current growth 
projections are largely based on Venezuelan oil concessions and 
direct financial aid, much of which is outside of the official 
budget process.  Despite the administration's praise of "Bolivarian 
socialism," it continues to support regional free trade agreements 
and has not implemented price or currency controls. 
 
¶9. (SBU) Comment: Civil society's concern with Ortega's totalitarian 
tendencies continues to grow.  Six hundred people attended 
Movimiento's presentation - an event that was planned for two 
hundred.  We will continue to support efforts to monitor and review 
the administration at periodic intervals. 
 
TRIVELLI