Capitalism is too often about the use of state power for private gain: The current proposal came to light in June 2012 in Law 800 when Ortega, less than a year into his second term, announced a public-private partnership with the state retaining majority control. It barely raised an eyebrow, perhaps because many assumed it was yet another iteration of the same old pipedream. The eventual deal, approved by Law 840 in June 2013, bore little resemblance to the original. The FSLN-controlled legislative assembly approved the mega-project under a cloud of secrecy in a record seven days. There was no public consultation, no feasibility or environmental studies were presented, and there was no parliamentary debate—a surprising approach given this would be the world’s biggest civil engineering and construction project, traverse the country’s most important fresh water source and destroy protected natural reserves where 22 endangered species live. The 100-year concession agreement, published only in English, gives Jing carte blanche to build and manage the giant waterway, as well as numerous sub-projects including two deep sea ports, a free trade zone, an airport, cement and explosive factories, an electricity plant and upmarket hotels. Or not. The company is indemnified against any delays caused by protests or legal challenges, but Nicaragua would not be compensated if the canal is abandoned. The concession exempts HKND, its subsidiaries and subcontractors from taxes, and allows them to operate outside the Nicaraguan legal system. The constitution was rewritten retrospectively in an attempt to put the concession beyond legal challenge. Perhaps most controversially, HKND is authorized to expropriate land wherever it wants. Displaced households are only entitled to be compensated the tax-assessed or “cadastral” value of their property— usually a fraction of the market value—with no right to appeal. It is this very sensitive issue that has galvanized widespread resistance from previously loyal campesinos. The Sandinista revolution, like most in Latin America, was motivated by centuries of virtually feudal land ownership which was concentrated in the hands of the military, economic and religious elites. Opposition politician Victor Tinoco, an FSLN reformist expelled from the party by Ortega, said: “The revolution was all about agrarian reform, about redistributing land to the poor majority. The canal law is contra-agrarian reform, it will re-concentrate land in the hands of a few.”
Posted on: Mon, 01 Dec 2014 03:43:56 +0000
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