NICARAGUA: ORTEGA USES THE "S" WORD

C O N F I D E N T I A L MANAGUA 000848 DEPT FOR WHA/CEN NYMAN AND GREENE DEPT FOR INR/IAA EMERSON DEPT FOR USOAS NSC FOR ALVARADO USS KEARSARGE FOR COMMODORE PONDS E.O. 12958: DECL: 07/01/2018 TAGS: PHUM PGOV NU SUBJECT: NICARAGUA: ORTEGA USES THE "S" WORD REF: A. 2008 MANAGUA 573 ¶B. 2008 MANAGUA 350 Classified By: Ambassador Paul Trivelli, Reasons 1.4 (b and d) ¶1. (C) SUMMARY: The week of June 23 saw three developments that may indicate a troubling and explicit ideological shift by the government of Nicaragua (GON). President Daniel Ortega of the Sandinista National Liberation Front (FSLN),issued a decree granting his wife, Rosario Murillo, control over all social programs and institutions of the State, including the Social Security Institute (INSS), making her, in effect, what the press has termed "co-president." Ortega's son, Juan Carlos, issued a rare open letter to the youth of Nicaragua calling for the end of the political pact between Ortega and the ex-president and convict Arnoldo Aleman, characterizing it as a "dinosaur", and encouraging youth to seize power through the Citizen Power Councils (CPCs). Finally, Ortega publicly announced his intention to return the country to "socialism." These three incidents suggest further consolidation of Ortega's personal power via "direct democracy." END SUMMARY Co-Presidenta - - - - - - - - - - - ¶2. (U) On Friday June 13, 2008 Presidential Decree No. 26-2008 appeared in "La Gaceta" granting Ortega's wife, Rosario Murillo, control over all social programs and institutions of the State as well as the Social Security Institute (INSS). The Nicaraguan press subsequently dubbed Murillo "co-president," given Ortega's statement that fifty percent of the power of the government resides in his wife's management of public policy. Murillo is also the coordinator for the Citizen Power Councils(REF A). Through this decree, Ortega essentially fused management of the CPCs with government social programs, further blurring the distinction between government, CPCs and the party. Citizen Power instead of the Pacto - - - - - - - - - - - - - - - - - ¶3. (C) On June 23, Juan Carlos Ortega Murillo, son of the presidential duo, issued a rare open letter to the Nicaraguan youth, published on the presidential website, in which he pronounced the pact ("el pacto") between the Constitutional Liberal Party (PLC) and the Sandinista National Liberation Front (FSLN) a "dinosaur" whose usefulness had come to an end. The missive, entitled "Rebellious Youth" called on youth to reject "el pacto" (REF B),terming it a relic of "an antiquated representative democracy," to be replaced by the CPCs (REF A). This formulation represents the first open hint by the Ortega administration that collaboration with the PLC may be nearing an end. The transcript of the letter as well as a short biography of Juan Carlos have been sent to WHA/CEN. Deja Vu? Ortega Espouses Socialism - - - - - - - - - - - - - - - ¶4. (U) As if to drive home the true meaning of both his son's words and the decree, in a speech Monday, June 23, Ortega told FSLN supporters that "socialism" was the only way Nicaragua can solve its social problems and "confront savage capitalism." To carry out what he termed "a political-ideological project", Ortega named Carlos Fonseca Teran, the son of FSLN founder Carlos Fonseca Amador as the political secretary of the FSLN in the department of Leon. Notably, in the same speech, Ortega again denounced the media for criticizing his administration. He assserted that the Revolution "is exposed to insults and slander of all kinds" and that people should not be fooled by what they hear or see in the press as the media represents the "oligarchy." Despite his regular criticism of market-based economies, Ortega's Monday night speech was the first time during this administration he has openly espoused socialism for Nicaragua. Comment - - - - - - - - - - - - - - - ¶5. (C) Given the control that Rosario Murillo already holds over the CPCs and other aspects of day-to-day governmental affairs, her new administrative position and her son's articulation of FSLN re-evaluation of the "pacto", may foreshadow a potential future shift away from the power-sharing agreement with the PLC towards more direct control of government through the CPC's. As municipal elections in November loom, and with three of the main rival democratic parties now eliminated, the "pacto" may indeed become ever more irrelevant to Ortega. These three incidents suggest further consolidation of Ortega's personal power via "direct democracy." TRIVELLI