Friday, May 16, 2008

The Strike

Twelve days ago the vast majority of transportation workers in Nicaragua went on strike. Virtually all the inter-city buses have shut down, in addition to cargo trucks and taxis. Transportation officials are complaining about two things: 1) the high cost of gas (Nicaragua has the highest prices of all central American countries) and 2) a lack of transparency on the government's part about the results of fuel subsidies from Venezuela.

The strike has wreaked havoc on the Nicaraguan economy; one economist has estimated that in twelve days Nicaragua has lost $17 million. Clothing factories can't work, as raw goods can't make it from the ports. The local farmers markets in Managua sit empty, while fruits, vegetables, milk, and cheese pile up on farms across the country. Most universities have cancelled classes for the past two weeks, as professors and students can't travel.

Fortunately, the buses within Managua are still running, so we can still make it around the city fairly well. But it's been rather difficult for people that need to travel between cities. Most people have resorted to hitching a ride on the back of someone's pickup (see photo above). Food still seems to be in supply, although the prices on some products have risen steeply because of the strike.

Earlier this week the negotiations between the transportation leaders and government ministry of transport broke down with much fiery rhetoric on both sides. A few days later President Ortega addressed the nation about the crisis, but no new negotiations have begun. Transportation workers say they are willing to strike for 30 days.

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