Transition Update: Funes Prepares to Take Office

Mauricio Funes' Whereabouts

A few days after the election on March 15, 2009, Mauricio Funes met with President Saca in the Presidential Palace to plan the transition. As a result of that meeting Funes created his "Transition Committee", which is composed of six people: three FMLN Congresspeople and three renowned professionals in the areas of economics, sociology, philosophy and education.  Saca also designated a committee to work closely with Funes' team to give them the necessary information about the current status of the central government.  A subcommittee to deal solely with economic affairs was created due to the financial crisis.

Later in March both leaders attended the Summit of the Central American Presidents in Costa Rica together where they also met with US Vice-President Joseph Biden. From April 17-19 they attended the Fifth Summit of the Americas in Trinidad and Tobago, which gathered all 34 presidents of the region, except Cuban President Raúl Castro.  In his speech at the Summit, Funes reassured his commitment to work for social change and the consolidation of democracy in El Salvador.  During the Summit Funes also held bilateral meetings with several Latin American presidents including Mexican President Felipe Calderón, Colombian President Alvaro Uribe and Chilean President Michelle Bachelet.   During his meeting with Calderón, Funes proposed that they work together for an immigration reform to help the citizens of both nations who live undocumented in the United States.  Before the Summit, Funes had already met with President Oscar Arias from Costa Rica and with Brazilian President Inácio Lula da Silva. Lula promised Funes a cooperation agreement to finance social and economic projects in El Salvador. Funes has mentioned in several occasions that he will lead a moderate left government modeled after Brazil.  While in Brazil, Funes received a phone called from US President Barack Obama to congratulate him for wining the presidential election.

In April Funes and his team met for the second time with leaders of grassroots organizations as part of a process that he calls "Diálogo Permanente" (Permanent Dialogue), through which he has met with leaders from organizations of the social, agricultural, human rights and religious sectors.   Funes plans to put an end to the exclusion of the social sectors and is going to institutionalize the dialogue with the country's leaders. "They will be welcome in the Presidential Palace," he added.   Funes has designated two of his team members to act as his liaison with the grassroots organizations.  Funes also fulfilled his campaign promise of participating in the traditional Workers March on May Day. In his speech Funes told the cheering crowd that he was there to "accompany them as one more worker who from the presidential office was going to dedicate every minute of his life and all his energy to transform the work conditions of all Salvadorans." Funes' presence marked the fist time a President-elect participated in the workers' celebration. 

In early May, Funes held a two-day meeting with the World Bank, the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF).  They discussed the macroeconomic measures that the country needs to adopt in order to face the economic crisis, as well as strategies for sustainable economic growth, and social investment. According to Funes, the difference between his government and that of previous administrations is that he is not going to reduce social spending.  On the contrary his government will invest in social programs to reduce poverty, without compromising macroeconomic stability.  Other topics discussed according to Funes'official website, were: governability, transparency, justice and public safety, and youth.  Maraa Carmenza Mclean, an IDB official, stated that this bank is going to disburse US$300 million to El Salvador in June to reactivate the Salvadoran economy.  Funes also expressed that his administration will seek loans from the World Bank and the Central American Bank for Economic Integration (BCIE). 

Funes will take office on June 1^st, 2009.  His administration will have to deal with great challenges such as one of the worst world-wide economic recessions in history.  For political and electoral reasons the Saca administration did not admit the real problems affecting the Salvadoran economy.  It was not until Mauricio Funes won the election that grim news about the economy started to come out.  Two weeks after the election, the President of the Salvadoran Central Reserve Bank, Luz María de Portillo, announced that the economy was showing signs of recession. According to De Portillo, the main economic indicators had negative growth rates during the first quarter of 2009: remittances decreased by 8.1%, and exports and imports fell by 11.2% and 27.7% respectively.  Bank credit has also been shrinking.  De Portillo said that in February 2008, credit grew at a rate of 10.6%, however, a year later in February, credit the growth rate was of only 2.1%.  With fewer loans available other sectors of the economy have been freezing such as the real state market.  Funes will also inherit a fiscal deficit of about 4.8% of the GDP.  In order to reduce the gap Funes expressed that he will work to reduce tax evasion from business. Quoting former US Ambassador to El Salvador Douglas Barkley, Funes said that about $500 million could be raised if the country combats fiscal evasion and black markets.

Another challenge for the Funes administration is to be able to work with right wing parties (ARENA, PCN and PDC) in the legislature in order to move forward necessary reforms.  Neither the FMLN nor ARENA obtained the majority of seats in Congress in the past legislative elections.  However the right-wing parties as a block still maintain a majority.

New Legislative Assembly takes office in the midst of controversy

May 1^st, 2009 was the first day of office for the newly elected Assembly Members and mayors.  Once again Assembly Member Ciro Cruz Zepeda from the National Conciliation Party (PNC) was elected President of Congress with 47 votes from the right-wing parties ARENA, PCN and PDC. The FMLN and the Democratic Change (CD) abstained from voting to express their discontent.   A group of FMLN sympathizers stormed the Salón Azul (Assembly Chambers) in protest of the election of Zepeda for 45 minutes, forcing the Legislators to end the session. The protesters believed that the President of Congress should be from the FMLN because it is the party that obtained the majority of votes during the elections.  This will be Ciro Cruz Zepeda's second term as  Congress President.  ARENA traditionally trades this position with the PCN as a way to buy this party's support for upcoming bills.  With this election, the right-wing parties consolidate their control over Congress. 

On the other hand Norman Quijano from ARENA also began office on May 1^st as the new mayor of San Salvador putting an end to 12 years of FMLN municipal government. Quijano celebrated with a luxurious reception in the National Palace in downtown San Salvador.

"Illegal omission": Attorney General has not been selected

In a clear violation of the Salvadoran Constitution the position of Attorney General has not been selected, even though the 2006-2009 Legislature has already ended its period.  According to a pronouncement by the Foundation for the Studies and Application of Law (FESPAD) this omission responds to "political interests that try to impose an Attorney General who lacks independence and who responds to the interests of powerful groups."  FESPAD states that the last Legislature started the selection process based on an ad hoc commission but this one lacked transparency since the process was not open to the public, and neither the media nor the public had access to the background and profile of the candidates, the results of their evaluations, and the work plans proposed by them. This violates the public transparency guaranteed by the Legislative Assembly's rules, according to FESPAD.

On the other hand President Saca expressed that ARENA will support the acting Attorney General Astor Escalante for this position. However, Gerson Martinez, FMLN Congressman and a member of Funes' Transition Committee, expressed that Escalante has been imposed by ARENA since no one in the Legislative Assembly elected him. According to many human rights organizations, if Escalante remains the Attorney General, ARENA will ensure control over the judiciary guaranteeing the same history of impunity, and many crimes and corruption cases where ARENA leaders have been involved will not be prosecuted.  With Funes' victory, there is hope that many of the war crimes that were tabled since the Amnesty Law in 1992 can be re-opened and prosecuted. Therefore, social and grassroots organizations are pressuring for the election of an Attorney General who is transparent, objective and respectful of the rule of law.  To see the video of the Restorative Justice Tribunal click here.

- Claudia Rodríguez, DC Policy Office Director