Editorial.
During a summit of the Bolivarian Alliance for Our Americas in early 2009, in the heady days of ALBA expansionism, Venezuela’s Hugo Chávez urged his fellow travelers not to fall into the temptation of getting lost in paradisiacal woolgathering about “21st century socialism.” ALBA, he stressed, had to stay grounded in reality.
In Nicaragua, ALBA became an everyday reality for millions of people. Though critics argue it’s impossible to account for the estimated $2.6 billion in ALBA aid that entered Sandinista coffers over the past six years, that money did allow the government to stabilize the country’s desperate energy sector by increasing power production and putting an end to daily blackouts. ALBA also provided electricity subsidies for low-consumption households, transportation subsidies for the working poor, and fellowships for university students. It funded road construction through dust-clouded barrios, provided roofing materials for leaky shanties, monthly cash handouts for thousands of government employees, and other assorted eleemosynary programs for the poor and not-so-poor.
ALBA’s success in Nicaragua was a measure of its ability to stay grounded in reality and affect real change in people’s lives.
But ALBA’s greater promises were mostly will-o’-the-wisp stuff. Many of the projects Chávez offered Nicaragua never materialized. Over the past six years, the Venezuelan caudillo offered Nicaragua a $6.6 billion oil refinery, a regasification plant, a fertilizer plant, a new ship to double cattle exports to Venezuela, two aluminum-production plants, a factory to produce industrial bags, construction of 200,000 homes, the creation of two engineering universities, an ALBA airlines and an ALBA baseball league. If it weren’t for newspaper reporters, there would be almost no memory or record of those promises; most of them were never mentioned more than once, which made ALBA seem like a very capricious arrangement.
Of the many unfulfilled promises, only the “Supreme Dream of Bolivar” refinery got off the ground, and not by much—about six inches, or the height of the cornerstone laid in 2007. The refinery is reportedly still underway, though less than $100 million of the $6.6 billion has been spent in five years. (Each day that passes takes the promised refinery further from its woulda-coulda-shoulda 2012 inauguration, and Chávez’s death will only cause further delays for a project that seems fittingly named as “supreme dream.”)
ALBA also promised much loftier and ideological goals of uniting Latin America in a giant, pan-American fatherland, fulfilling the vision (or delusion) of South American liberator and Chávez idol Simón Bolivar. President Ortega contributed to ALBA’s legend by comparing Venezuelan aid to the “project of Christ” and suggesting it was somehow helping to build “the Kingdom of God on earth.”
Yet despite the promises of divine glory—and the logic of Pascal’s Wager—most countries did not believe in ALBA enough to join the club, and Honduras withdrew its membership the first chance it got following the coup in 2009.
By hurling insults at other nations and sparring quixotically against the shadows of imperialism, ALBA became a predictable voice of dissent and a kooky club of countries that often played the unintentional role of jester at larger international forums. ALBA, despite its mission statement, was far more polarizing than unifying. And its membership—a curious gaggle of beggared and/or authoritarian nations—was perhaps the single greatest deterrent to other countries that might have otherwise considered joining.
Other than producing a few ventose political pronouncements, ALBA couldn’t even pull together meaningfully when it mattered most; it couldn’t organize a cohesive opposition to the coup in Honduras in 2009, and has remained fecklessly tongue-tied when it comes to speaking up in defense of Nicaragua’s sovereignty, which is being threatened by Colombia’s naval encroachment and blatant disregard for international law.
While ALBA will most likely be remembered in Nicaragua as a political arrangement that helped many thousands of poor Nicaraguans with their immediate needs, its ultimate failure to convert bigger promises and visions into reality was a symptom of ALBA’s structural weakness and informality (The organization was so slapdash, it changed the meaning of its acronym three times in six years—from the Bolivarian Alternative for the Americas, to the Bolivarian Alliance for the Americas, to the Bolivarian Alliance for Our Americas).
Regardless of the name changes, ALBA was really a synonym for Chávez— it was as generous, avuncular, whimsical and spontaneous as the Venezuelan caudillo himself. ALBA was a loosely-knit organization that relied as much on Chávez’s vision and charisma as it did his petrodollars. ALBA was Chávez’s baby, and it will never be the same under its new adoptive parents.
Sandinista officials this week said they are confident that relations with Venezuela will continue unruffled by Chávez’s “transcendence into immortality.” But that’s a short-term wager. In quieter moments, even the Sandinistas recognize that they better be standing next to another chair when the music eventually stops. “We have to anticipate that ALBA is not going to be permanent,” presidential economic advisor Bayardo Arce told me in an interview last year.
Though Venezuelan aid is likely to continue for the time being—at least to create the semblance of stability and continuity in a region not known for either—without Chávez’s foot on the accelerator, ALBA is likely to lose momentum quickly.
Opposition lawmakers in Nicaragua are echoing calls from business leaders to “institutionalize” Venezuelan aid through a free-trade agreement to provide some assurances during the uneasy transition from Chavismo to whatever comes next (Chavismo con maduro frito?). But if ALBA wasn’t institutionalized during its heyday, it’s unlikely to happen in its denouement.
The Sandinista government, which has benefited mightily from ALBA over the years, would be wise to use Chávez’s death as an opportunity for a reality check. The success of ALBA and Ortega are built upon real achievements—the projects and aid programs that count most in people’s lives. ALBA shows that results and real development matter more in Nicaragua than ideological rhetoric or fantastical promises.
While it’s fun to daydream about megaprojects requiring tons of money that Nicaragua doesn’t have—a $300 million satellite, a $35 billion inter-oceanic canal, a $6.6 billion refinery, and a $500 million deep-water port on the Caribbean—the Sandinista government needs to focus more on what it does have: a rapidly flourishing tourism industry. Yet for all the lip-service the Sandinistas give to tourism, the government has been unable to complete the two not-so-mega projects that would most benefit the industry: a coastal highway along the Pacific shoreline and a convention center in Granada’s abandoned former hospital. Both those projects, which have been talked about for years, are more affordable, plausible and beneficial to development than the government’s megaproject plans. They are attainable projects that would produce real results for Nicaragua.
If ALBA has taught the Sandinista government anything, it’s that smaller projects that directly affect people’s lives in a real and meaningful way are what work in Nicaragua. The rest, as Chávez said in 2009, is succumbing to the temptation of getting lost in paradisiacal woolgathering.
The road forward for ALBA—and indeed Nicaragua—will certainly be bumpy following Chávez’s death. But Sandinista handlers can help steady the wheel if they keep their heads out of the clouds and their eyes on the road. President Ortega would be wise to honor Hugo Chávez the humanist who had a dedicated concerned for the commonweal, rather than follow his fallen comandante’s example as an egomaniacal strongman with a penchant for mega-project promises he couldn’t deliver.


“ALBA’s success in Nicaragua was a measure of its ability to stay grounded in reality and affect real change in people’s lives.”
I disagree wholeheartedly sir. They key words being here “real change” do not fit the socio-economic reality of Nicaragua’s entrenched and systematic poverty. In order to have “real change” you need a component of sustainability. Of this, ALBA has none, except the perpetual absolute power of one man: Hugo Chavez and his total control over Venezuelas oil.
That man is now dead. Nicaragua has the highest kilowatt per hour rate in the continent, the highest gallon per dollar, the most expensive electoral system, the highest paid (and now 3 times over bloated bureaucracy) government officials …The government spend a mere $125-30 per student in both primary and secondary level, this government has not built a single school or hospital in 5 years in office and 1 year so far as an unconstitutional and illegitimate president, in fact, for almost 3 years now it continued to cut the education and health budgets while loading his cronies and family members with huge government contracts for publicity, construction, transport and even the flower business that decor so many of the states events.
All in all, Nicaragua is no more well of than it was 6 years ago despite the massive influx of money and free/cheap oil from ALBA.
Ortega, following the model of Chavez, is model of “feed me today, grow hunger tomorrow”. There is no real change in the socio-economic well being of everyday Nicaraguans. It is a model of governance based on populism, clientilism, and crony capitalism …. the spoon full of disastrous and empty governance of the last 100 years.
ALBA success in Nicaragua is ONLY in propping up a personal-authoritarian government with the $2.6 billion led unconstitutionally by Ortega-Murillo family. And that is what Nicaraguans will most remember: the rape and dismemberment of our 16 yr old Republic.
Excellent response to the article Mr. Lacayo, I could not have said it any better myself. I am not Nicaraguan but love the Country.
Saludos!
Manolo
well said Sr. Lacayo
interesting…the per capita income has doubled on Ometepe in 6 years.. The power is on 97% of the time verses 50% just 6 years ago, there are now health clinics through-out the island communities, The new roads all over the island are dramatic, a new international airport with a mile long runway,… heavy truck and car ferry capacity is up 1,200%, we look out to 97 new wind turbines across the lake, the entire Cardenas area has been redeveloped, water plant, malecon, etc. the roads to Colon are passable!, the Rio San Juan/Solentename Islands infrastructure has huge improvements, the new bridge crossing the river was joined 2 weeks ago, the new international highway going up the west coast of Lake Nicaragua is frankly unbelievable, the water project to SJDS, …and just go visit northern Nica to see incredible advances with infrastructure… I could keep writing but those that do not see these advances will never see them. The human brain can not change its mind once it is made up…. regardless of the evidence. …interesting…. of course the discussion should be is the change happening too quickly? probably but I see most Nicas unwilling to give up their new water/electricity/roads. Of course one could say that any country that received this level of aid/gifts/assistance can not help but get ahead.. that is partially true but other leaders inside and outside Nica have been able to squander & steal all the goodies. Chavez is gone but to say Nica has not made spectacular advances during the most significant financial crisis in modern history may be incorrect. In my 1st world city, the roads, water system, municipal services, crime, are in crisis. There are more for sale signs on my road than driveways and lets not even mention Detroit. I do think credit should be given even if you may have done it better.
Good thing the only ones who read these nonsenses,
are its sponsors, namely the Pellas and friends.
You got to be kidding! I am not Nicaraguan and I read these things… Mr. Lacayo is 100% accurate!
Manolo
So, Periodista Libre, are you a Pellas or just a friend???
Well said but it is wishful thinking my dear Tim as Socialism or Comunism or the garbage excuse started by the Castros and the Chavez disfunctional puppies FAILS precisely because there is no common sense behind their plans. Not to say the feeble lack of integrity used by prior or other options is less disfunctional, stupid or embarrasing and bound also to fail. It’s a hard and lenghty process. Same as anywhere else…
Pedro, “Socialism or Communism…FAILS precisely because there is no common sense behind their plans”…
I always thought that Democracy suffered from the same missing ingredient.
Lacayo’s perspective is needed, and while voices like his can be heard, there is still some freedom and democracy in Nicaragua.
I suggest, however, that it is a mistake to underestimate the appeal of the Sandinista government. There have been remarkable improvements in infrastructure. People feel that things are getting better. It is simply not true that there are no new schools or hospitals–even if we don’t know who is building them and paying for them. The Sandinistas are winning local elections by lopsided margins. They are here to stay. I hope that people like Lacayo will be able to keep them honest. Dreaming?
Thank your for comment Mr. Nelson.
I´ve never underestimated the appeal of the Sandinista government, they´ve always represeneted a good 35-40% of the population. Only fools underestimate that many people.
However, I challenge you to research and find out how many schools and hospitals have been built in the last 6 years by theis government. These types of projects are generally done by FISE, a highly (until ortega turned it into a propaganda machine led by Nelson Artola) effecient instution (it built over 250 schools, bridges, tens of thousands of letrines, potable water, etc from 1992-2004). And please post them here.
If you analyze the government budgets for the last 4 years.. you will see 3 line items that have increased 3 fold: contracts to security firms, paint and decor, government salaries… almost all other line items inlcuding education and health have been consistenlty cut.
And yes Ortega has been “winning” elections, and as someone who has worked in the last 3 elections – municipal 08 (fiscal), presedential 11(jefe de ruta) and municipal 12 (fiscal) – I can tell you the first two, were outright rigged, manipulated and stolen. Nevermind the fact that Ortega broke the constitution ART. 147 by even running (incision a) let alone excerise power again. (incision b).
Populism is a great force for creating the feeling that things are better. But the reality again does not fit the rhetoric sir.
One final example, 52 essential products of foodstuffs, hygiene, clothing, sanatary, medicine etc for a healthy, comfortable, decent life are measured to track there price relative to the average income (adjusted after inflation which is now roughly 11-9% a yr) . When Ortega took office in 2006, the price of these basket or “canasta basica” was around 300 dollars. Today, it is almost 480 dollars… while income has stayed stagnate and even receeded at 145 dollares a month. People are having a hard time affordng the typical staple food s of beans and rice.
Populism is a great force for creating the feeling that things are better.
Give them some chickens, a pig, and some zinc roofing, decorate like christmas everyday, every year for 5-6 years now, talk about love, and peace and christian values and you create immediate satisfaction that “things are getting better” while neglecting the real long-term issues that will make the everyday citizen lift themselves out of poverty.
Its a “feed me today, hungry tomorrow” program. The house of cards will soon fall.
I really thought this editorial was well done–and that Lacayo’s comments were worth heeding too.
However, I think the truth obscured by both lies in Arce’s comment in the article to the effect that the administration hasn’t been counting on ALBA for a long time.
People always assume that Ortega is dumber than he is. I don’t believe that he’s ever counted on Chavez’s slush fund continuing or put much stock in ALBA’s lofty rhetoric. He’s a pragmatist who used ALBA to help Nicaragua, as Tim notes, and surely to help himself, as Lacayo implies, but he has long been thinking many moves ahead of ALBA.
Don’t put much stock in the rhetoric. If you want it to happen, you will just be disappointed; if you don’t want it to happen, you will just be fighting windmills. The guys running the show in Nicaragua don’t fall for it, and if you do you’re a couple moves behind them.
Ken,
The real brains is his wife. Ortega is a mess.
However, I do think Ortega, and Fidel, and Morales, et all. counted on the venezuelan-alba slush fund for at least another 15 years. Remember that Chavez kept the scope and depth of his lillness a state secret and showed no signs of sickness during the campaign.
Ortega is not a pragmatist he is a radical. Again, you are confusing his wife management of the presidency with his own.
Cheers!