Cablegate: Aln Platform Focuses On Employment and Energy

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PP RUEHWEB

DE RUEHMU #2329/01 2931211
ZNR UUUUU ZZH
P 201211Z OCT 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 7950
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS MANAGUA 002329

SIPDIS

SIPDIS

DEPT FOR WHA/CEN

E.O. 12958: N/A
TAGS: PGOV PREL ECON KDEM SOCI NU
SUBJECT: ALN PLATFORM FOCUSES ON EMPLOYMENT AND ENERGY
EFFICIENCY

1. (SBU) Summary: Nicaraguan presidential candidate Eduardo
Montealegre's Nicaraguan Liberal Alliance (ALN) has created a
campaign platform that focuses on creating employment -- with
specific plans for women, youth, and small and medium
enterprises -- and alleviating Nicaragua's periodic energy
crisis by developing renewable fuel resources and conserving
energy. These proposals dovetail with Montealegre's campaign
slogan: "the President of more and better jobs." Beyond the
"official" platform, Montealegre has made promises directed
to specific audiences, such as Catholics and evangelicals and
indigenous groups. The ALN campaign promises have, for the
most part, been consistent and uncontroversial, and seem to
be swaying certain groups, especially young adults and
evangelicals, in his favor. End Summary.

2. (U) The ALN has released a new development proposal every
two to three weeks for the last several months, ultimately
nine in total, in part to help voters associate with
Montealegre his assigned "number nine" position on the
ballot. (Note: Only seven proposals have been released so
far. The final two will deal with health and education and
will be summarized in septel. End Note.) The proposals are
distinct but clearly concentrate on generating employment and
plans to alleviate Nicaragua's dependency on energy imports.
A summary of each follows:

Creating Employment and Reducing Poverty
- - - - - - - - - - - - - - - - - - - - -

3. (U) The ALN plan proposes to consolidate or privatize a
number of government agencies that deal with development to
streamline the bureaucracy and use the savings to offer loans
to small and medium enterprises at favorable interest rates,
provide technical assistance, promote exports, and build
infrastructure.

Harvesting Energy
- - - - - - - - -

4. (U) To deal with Nicaragua's perennial energy crisis, the
ALN proposes shift from a reliance on imported oil to
renewable resources, especially plant-based sources that
could generate additional employment. Specifically, the plan
promotes the production of ethanol from sugar cane and
bio-diesel fuel from African palm. The ALN claims that
Nicaragua's dependence on imported fuel could be reduced by
30 percent by cultivating sugar cane and African palm, the
production of which would generate up to 75,000 additional
jobs in rural areas.

Creating Opportunities for Women
- - - - - - - - - - - - - - - - -

5. (U) To provide opportunities for poor women, the ALN
offers a series of proposals directed to specific demographic
groups. To assist rural women, the ALN plans to provide
programs dealing with financial services, technical
assistance, country schools, product marketing,
infrastructure and land titling. The ALN also plans a
special program in the cultivation of a variety of fruits and
vegetables that would generate employment for 8,000 rural
woman. For rural and urban women, the ALN would promote
training programs for the administration of small enterprises
and technical training directed towards women.

6. (U) The ALN also proposes to develop a program to promote
of home enterprise through a special micro-finance program
that would benefit 20,000 women. To assist women with young
children, an ALN government would develop increased access to
pre-school and pediatric health clinics. For urban women,
the ALN plans to promote micro-enterprises through technical
assistance and preferential access to credit.

Saving Energy and Jobs
- - - - - - - - - - - -

7. (U) The ALN proposes to alleviate Nicaragua's recurring
energy crisis by exchanging incandescent lightbulbs for
florescent lightbulbs. This program would be directed at
households that consume less that 150 kw/hour (about 85
percent of households in Nicaragua). The government would
provide low wattage florescent bulbs free of charge to
low-income families, who would be able to save on their
monthly electricity bill. The government would initially
need to spend $4.5 million to buy the lightbulbs, but would
recuperate the investment in three months through savings on
energy imports and subsidies. The ALN predicts the energy

savings would prompt the Free Zone factories to hire more
workers.

Sustaining the Creation of Employment
- - - - - - - - - - - - - - - - - - -

8. (U) The ALN's fifth proposal follows on the previous
proposals plan to increase employment by making the energy
sector more efficient. In addition to providing florescent
lightbulbs, the ALN would also develop hydroelectric power in
the Matagalpa River Basin and create smaller hydroelectric
plants in rural municipalities with no access to the national
power grid.

Creating Employment Opportunities for Young People
- - - - - - - - - - - - - - - - - - - - - - - - - -

9. (U) According to the ALN, the key to increasing employment
opportunities is to increase foreign and national investment
and provide young people with the technical training and
education necessary to find employment. The ALN proposes to
grant tax breaks to companies that hire young people new to
the job market, support technical training, and develop a
national curriculum for English language instruction. The
party would also focus on attracting investment in
information technology and work with the private sector to
develop physical and telecommunications infrastructure in
Nicaragua.

10. (U) At the university level, the ALN promises to support
new entrepreneurs and match new graduates with employers
through a "My First Job" program. To capture young minds in
the area of policy development, the ALN would promote student
internships at think tanks devoted to public policy research.

Generating Employment through Small and Medium Enterprises
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

11. (U) The ALN promises to support small and medium
enterprises (SMEs), the primary engines of job growth in
Nicaragua. The ALN would create "entrepreneur centers" in
the universities, and technological institutes dedicated to
developing skills required by SMEs. A National Council of
SMEs would coordinate with technical institutes and NGOs to
direct training programs. The ALN would also create
financial support mechanisms to promote SME development and
help SME owners complete the steps needed to found a
business. The ALN estimates that the promotion of SMEs could
generate 150,000 additional jobs.

Other Proposals
- - - - - - - -

12. (SBU) In addition to the "official" ALN proposals,
Montealegre has made other promises on the campaign trail
primarily directed at specific geographical/interest groups.
A representative selection of Montealegre's pronouncements on
key issues follows:

- Anti Abortion: Like all of the other candidates except
Edmundo Jarquin, Eduardo Montealegre came out strongly
against "elective" abortions. He told reporters about his
daughter who was born prematurely at 26 weeks, but today is
in good health. "My position will always be to defend human
life," he said.

- Support for the Police: The ALN proposes to increase police
presence in rural areas and increase salaries and benefits
for lower-ranking officers.

- Creation of Religious Liaison: To promote dialogue with all
religious groups in Nicaragua, the ALN would create a
religious liaison office to meet with members of all
denominations. Montealegre acknowledged in a communiquQ that
"the government does not treat all religions equally."

- Improved Local Transport: Montealegre promised voters in
the district of Waspam (North Atlantic Autonomous Region)
that the ALN would dredge the Rio Coco and improve roads in
the region to alleviate transportation problems.

- Indemnification for Sandinista Atrocities: Montealegre told
Atlantic Coast indigenous groups that an ALN government would
compensate them for atrocities committed by the Sandinistas
during the 1980s civil war (he was not specific about what
they would receive).

13. (SBU) Comment: The ALN campaign platform speaks to the
compelling national and social issues of the time (the energy
crisis, unemployment) and complements Montealegre's claim to
be the "Employment President." The proposals are
uncontroversial and have not generated a backlash from the
competing political parties, the development community, or
civil society. The ALN's focus on employment and specialized
training and job assistance for youth has made Montealegre
the candidate of choice for many young people.
TRIVELLI

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