Stuck in the middle of the road

There was something strangely reminiscent about the protest and barricades that shut down the Pan American highway January 12th near San Benito, Nicaragua. No, it was not the same sense of fear one felt during the US-sponsored Contra war when the Sandinista Army would shut down the highway due to Contra activity in the area. Nor was it the same sense of shock and awe one felt facing washed out roads and bridges a week after Hurricane Mitch killed thousands of Nicaraguans in 1998.

No, in a twist of surreal irony, the San Benito barricades seemed more immediate and self-reflexive. Our WCCN microfinance study tour was literally stuck in the middle of a protest organized by an agitated group of borrowers. While some of us mused at the probability of our predicament, most Nicaraguans exhibited a Job-like patience and seemed resigned to a long wait. The mood at times was almost festive, at least until riot police showed up around midnight and violence erupted.

Thanks to some heads-up leadership and decision making by Carlos Arenas and translator Ann McSweeney, not to mention some adroit driving by Juan Pablo, the delegation was able to retreat to Managua and rethink our itinerary.

The blockage of the Pan American highway January 12th was a troubling reminder and object lesson in Nicaragua’s current politics and struggle for control of the streets. In the wake of November’s municipal elections, which were widely criticized as fraudulent and seen as a power grab by Sandinista President Daniel Ortega to further consolidate his grip on Nicaragua, eruptions of political violence have become more frequent. Political protests by Liberals contesting election results are in lock step met by Sandinista shock troops in street-by-street clashes. Police often tolerate this effort to stifle dissent. While Ortega has remained largely silent about the rising levels of recent street violence, and those FSLN mobs acting to further his political interests, Nicaragua in many ways is turning back the clock on modest democratic gains made over recent years.

Vowing to forfeit US financial support through the Millennium Challenge Corporation, Ortega appears to be going retro revolutionary, strengthening his ties to Hugo Chavez and his Bolivarian Alternative for the Americas (ALBA), and vociferously rejecting US-style neo-liberal economic policies. Microfinance organizations have also drawn Ortega’s disdain. However, given the recent plunge in oil prices and the crippling effect that entails for Chavez’ ability to support Nicaragua and other ALBA nations, the huge financial gap filled by microfinance organizations cannot be underestimated nor taken for granted. In the end, banking on Chavez may not be Ortega’s best bet, and hopefully he will come to appreciate the importance microfinance organizations play in addressing Nicaragua’s credit crisis, especially among the poorest sectors of Nicaraguan society. In the meantime, WCCN continues to do great work with its Nicaraguan partners in poverty reduction projects, recent barricades notwithstanding.

By Mark Aumann
Former WCCN board member