Indigenous Women/Daniel Ortega. Beverly Goldberg.
Nicaragua has been saturating the news lately
following an outburst of violence and repression as a consequence of increasing
social unrest in one of the poorest and most corrupt countries in the region.
However, beyond the violent reaction to a protest that turned violent itself,
the issue of the mega-canal project is very telling of how the country’s ruler,
Daniel Ortega, and his government, deal with public affairs, and particularly
with the indigenous communities directly affected by their policies.
The Grand Nicaraguan Canal project hit
the headlines in 2013 after mysterious Chinese telecoms billionaire Wang Jing
brokered a deal with the Sandinista government for $50 billion (US) to create a
waterway connecting the Pacific and Atlantic for ships too large to pass
through Panama.
The Nicaraguan “dream” project was, according to president Daniel
Ortega, to lift the country out of poverty and set the nation on the road to
development, a promise that struck a chord in the second poorest nation of the
Americas after Haiti.
But when it appeared the project had come
to a standstill early this year, many had already begun to perceive it as less
of a dream and more of a nightmare.
The Canal Law 840 posed a threat to
Nicaragua’s most vulnerable groups from its inception. It specified that any
property or land in the area needed to construct the project would be
expropriated by the authorities, affecting up to 100,000 rural and indigenous families without their prior consultation,
threatening their wellbeing and survival.
Then there is the issue of government
repression and corruption. Questions arose over how the project could have been
used to legitimise a leader who has systematically and violently repressed
civilians since the beginning of his mandate, but most strikingly since an outbreak of protests in April that have resulted in the deaths of around 300.
The government of the indigenous Rama-Kriol territory was apparently threatened and co-opted into signing the “Free, Prior, and Informed Consent Agreement of the Grand Interoceanic Canal” by Ortega’s government.
With a ranking in the bottom 30 out of
180 countries in Transparency International’s Corruption Index, doubts were also raised over the ability of the
Nicaraguan government to distribute the profits to its population and those in
need.
A mysterious end for Wang Jing
Suspicions surrounding the state of the
project began in 2017 when both the local and international press picked up on
the fact that 4 years after the infamous deal had been brokered with Chinese
entrepreneur Wang Jing, not a single brick had been lain.
Jing’s Hong Kong
Nicaragua Canal Development (HKND) group had promised to have the canal
finished by 2020, but around June 2017, they began emitting messages to the public that construction had yet
to commence because they were in talks with international partners to create
the designs for the canal.
The end of the mega-canal project
appeared imminent earlier this year when Panama decided to cut its ties with
Taiwan in exchange for opening relations up with Beijing.
As a consequence,
Beijing committed to developing Nicaragua’s competitor, the Panama Canal, with
concessions of up to 40 years on the projects they develop. This would
potentially complicate Chinese involvement in the mega-canal project for the
foreseeable future.
Confusion surrounding the project was
also fuelled by Jing’s inability to confirm where he would source the $50
billion needed to carry out the project, feeding rumours that his fortune was
not as secure as he had claimed.
In April this year, the Hong Kong offices of
his Canal Development group were mysteriously abandoned with no
explanation and no information left regarding a potential relocation to another
address.
The project has yet to be officially
annulled by the government but for now all the signs point to a collapse in
Jing’s investment potential.
The massive level of investment required
to carry out the project, new Chinese investment in Panama and the negative
externalities the project would aggravate make it unlikely another investor
will take his place any time soon.
A simultaneous victory and defeat for Nicaragua’s indigenous groups
The Canal Law 840 was passed in 2013
after days of clandestine negotiations between the government and Wang Jing,
and its construction was agreed without respecting the right to ‘consulta
previa’ (prior consultation).
Nicaragua committed to adhere
to the principle of ‘consulta previa’, the fundamental right of indigenous
people to be fairly consulted and fully informed about any measure taken that
may affect their communities, upon ratifying Convention 169 of the ILO and the
UN Declaration on the Rights of Indigenous Peoples. The principle is even
enshrined in the Nicaraguan constitution.
Despite this, the government
of the indigenous Rama-Kriol territory, which was granted autonomy over its
lands in 2009, was apparently threatened and co-opted into signing the “Free, Prior, and Informed Consent Agreement
of the Grand Interoceanic Canal” by Ortega’s government, leading indigenous
organisations to refer to the agreement as fraudulent as it failed to comply with the necessary ethical
procedures.
It is estimated by the Center for World
Indigenous Studies that around 10,000 indigenous people have been killed by Sandinista governments whilst trying to defend
their territories and their way of life, therefore the approval of the
mega-canal project in 2013 may not have come as a surprise for many.
52 % of the project sanctioned by Ortega’s Sandinista government would have cut through indigenous territories including the lands of the Miskito, Rama and Rama Kriol communities, reinforcing a painful history that indigenous people have suffered under Sandinista rule.
52 % of the project sanctioned
by Ortega’s Sandinista government would have cut through indigenous territories
including the lands of the Miskito, Rama and Rama Kriol communities,
reinforcing a painful history that indigenous people have suffered under
Sandinista rule. The Canal Law 840 included a provision that allowed the
expropriation of land needed for the canal which would have threatened up to 100,000 rural and
indigenous families.
The canal project would not only have
implied the displacement of indigenous communities from their lands, but it
would have also affected the wetlands and forests on which they depend to
survive.
The proposed canal would cut through Lake Nicaragua, the largest lake
in Central America used as a source of water for all Nicaraguans, but most
importantly as a food source for the indigenous communities of Urbaite Las
Pilas and San Jorge Nicaraocalí located on the lake.
As the
lake is too shallow for the super tankers that would be passing through, it
would have to be dredged, devastating the bed of the lake, causing the water to
become polluted, and harming species native to the area.
Opening up the lake to
the Atlantic and the Pacific would also cause a surge in invasive species that would threaten the survival of local fish and could have a
devastating knock on effect on the local ecosystem.
The failure of the great canal project
will bring simultaneous security and dread to local indigenous groups, who have
seen the process of ‘consulta previa’ greatly undermined by the Ortega
government but who will no doubt feel relieved at the possibility of the canal
no longer being constructed on their land.
Benefitting a repressive, corrupt regime instead of promoting
development
Current president Daniel Ortega has
struggled to consolidate democracy and has proved himself incapable of dealing
with civil unrest since his mandate began in 2006.
Prior to the current crisis, Ortega was
already known to repress protests with force, evident in the case of the 2014 peaceful demonstration against the canal which was shut down aggressively by the military
police, leaving dozens injured and unjustly imprisoned.
A recent wave of protests in Nicaragua
that began over reforms to the government pension scheme has led however to
unprecedented levels of violence throughout the country as government forces
and allies of Ortega target protesters.
The Pro-Human Rights Organization of Nicaragua estimates that 2100 have been injured and 329 have disappeared or
been kidnapped since April, and additionally there have been reports of torture
being used against civilians.
Pro-Sandinista paramilitary groups bankrolled by
the regime have made a comeback. Reportedly, these paramilitary police groups,
comprised of ex-guerrilla members, gang members, and members of the Sandinista
youth, were aiming for the head or the chest of protesters, causing numerous
fatalities.
As Ortega has control over the Judiciary, it is highly unlikely any corruption charge against his government or his allies relating to the canal will be taken to court, yet politically motivated cases implicating the opposition are common.
Ortega is also responsible for
significant democratic backslides since his presidency began, and corruption
levels remain high. His elimination of term limits from the constitution and
the centralisation of the Judiciary allowing for serious crimes to be dealt
with by loyal judges as opposed to by a jury are particular causes for concern.
Every branch of government and almost
every public institution is now under the control of Ortega’s party and he has
recently rejected demands for early
elections claiming they will only destabilise the country further.
Ortega has done little to reassure those
concerned about a corruption so strong that it has seeped through every layer
of Nicaragua’s government and its institutions.
As Ortega has control over the Judiciary, it is highly unlikely any corruption charge against his government
or his allies relating to the canal will be taken to court, yet politically
motivated cases implicating the opposition are common. To add to the air of
nepotism and impunity, many of Ortega’s family members, including his wife
Raquel Murillo (the current vice president), and his sons and daughters, have
been promoted to high ranking public positions.
In the case of the canal the issue of
corruption immediately became apparent, with Wang Jing’s company being provided
with a concession to operate the canal and enjoy the profits for up to 100
years after its construction, a move that would ensure Nicaragua’s elite and
Jing get richer whilst the people of Nicaragua see little benefit.
As Chinese aid and investment is provided
without conditions regarding the state of governance and respect for human
rights within a nation, it is unlikely investors would detract as violence
increased.
Therefore, there exists a fear that a mega-project of this kind
could help provide political legitimacy to an increasingly violent and corrupt
regime in the same way that oil provides legitimacy to many undemocratic
regimes in the Middle East.
Ortega could use profits to provide
handouts that would increase his clientelist networks, or make his population
dependent on government aid – like we are currently seeing in Venezuela,
without simultaneously promoting development projects.
The end of a nightmare
The end of the mega-canal project is a
cause for celebration for many Nicaraguans. Indigenous communities such as the
Miskito, Rama, and Rama Kriol will find hope in the seeming desertion of the
project that their eco-systems are safe and that they will be free from
eviction for the time being.
However, the Canal Law and Ortega’s
underhanded strategy of coercing the Rama-Kriol government into signing an
illegitimate ‘consulta previa’ deal has undermined further prior consultation
processes and sets a precedence for a similar unlawful deal to be drawn up in
the future.
Many in Nicaragua will be undoubtedly relieved that the mega-canal may never become a reality.
Many in Nicaragua will be undoubtedly
relieved that the mega-canal may never become a reality. Rather than promoting
development, the project would have simply strengthened and legitimised a
regime that has been responsible for significant democratic backslides and
indiscriminate violence targeting civilians.
Has this nightmare
really come to an end? Only time will tell, but if Jing’s investment truly
falls through, it is highly unlikely anyone else will be willing to assume both
the financial and environmental risks of the mega-project of a megalomaniac.