The Funes Inauguration Center for Democracy in the Americas Trip

The Funes Inauguration
Center for Democracy in the Americas
Trip report
May 31, 2009 – June 3, 2009
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Introduction
The Center for Democracy in the Americas (CDA) is devoted to changing US policy toward the
countries of the Americas by basing our relations on respect, and it fosters dialogue particularly
with those governments and movements in the region with which US policy is at odds.
Consistent with this mission, CDA has a long-standing interest in El Salvador, and a growing
interest in how Latin America is dealing with questions of governance and the electoral process
for addressing problems like social and political exclusion as well as economic inequality.
For these reasons, CDA delegations have visited El Salvador twice in 2009 -- for the presidential
election, which saw the first FMLN victory in El Salvador, and again for the inauguration of the
winning candidate, Mauricio Funes.
Earlier we published a report about our experience observing the election. We are now pleased
to publish this report about the Inauguration, a historic event for El Salvador.
The delegation on this trip consisted of CDA Executive Director Sarah Stephens, CDA Program
Associate Collin Laverty and CDA’s consultant on El Salvador, Linda Garrett. The report is the
first written for CDA by Linda Garrett, but her findings reflect the views of our organization.
For more information about the CDA visit www.democracyinamericas.org.
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Inauguration in El Salvador: A New Beginning
“We need to reinvent the country…to carry out
a peaceful, democratic and ethical revolution.
The change begins now.”
President Mauricio Funes
June 1, 2009
The June 1st inauguration of Mauricio Funes was historic for both El Salvador and the United
States. For the first time since the founding of the Salvadoran republic, a left-of-center candidate
has been elected president. Moreover, after a long and difficult period when Washington
supported Salvadoran regimes that were prosecuting the civil war, the Obama administration was
in San Salvador to applaud and support a president whose party evolved from a guerrilla army
considered “terrorist” by former administrations. Secretary of State Hillary Clinton lauded the
event as “one of the most joyful” inaugurations she had ever attended.
The ceremony was conducted with the traditional pomp and circumstance surrounding any state
ritual: Honor guards, patriotic music and formal attire. Some 4,000 guests and 72 foreign
delegations were among the witnesses of an extraordinary, peaceful transition of power. While
the event was arranged according to protocol by the outgoing ARENA administration, the
audience largely represented supporters of the new FMLN government, as became apparent early
on.
Secretary Clinton arrived without fanfare but her presence was notable as she stood near the
stage wearing a brilliant red outfit, surrounded by a sea of men in dark suits. In what were
perhaps also signs of solidarity, Chilean President Michelle Bachelet wore red and many men
sported red ties.
Members of the legislature, the Supreme Court and foreign dignitaries arrived in solemn
procession amidst heightened expectations for the entries of Hugo Chávez, Evo Morales and
Daniel Ortega; none of the three appeared and no official explanation was offered. The audience
stood and roared however for Cuba’s Vice-President Lazo (“Cu-ba, Cu-ba, Cu-ba!”), the first
official Cuban visitor since 1962; just hours later, Hugo Martínez, the new Minister of Foreign
Affairs signed the document renewing diplomatic relations between the two countries,
“correcting an historic error.”
ARENA President Antonio Saca took his seat on the stage and finally a smiling president-elect
and his wife, Vanda Pignato, entered to chants of “Si se pudo” and “Fu-nes, Fu-nes, Fu-nes!” In
moments of unforgettable political drama, the former journalist and his vice-president, exguerrilla commander Salvador Sánchez Cerén were sworn in by the leader of the National
Assembly, with the four previous ARENA presidents and other party leaders looking on.
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“We have a gigantic task but we are not intimidated.”
President Mauricio Funes
The president began his address saying, “The people demanded a change and change begins
now,” and calling for national unity “without hatred or resentments.” He noted the long difficult
journey of the country to this moment and declared “we don’t have the right to make mistakes.”
Relations between outgoing ARENA president Antonio Saca and the president-elect were cordial
during the transition process, to the extent that some FMLN members were openly critical. But
gloves came off in the address as President Funes declared previous ARENA governments had
“governed for the few, been complacent with corruption, afraid of and complicit with organized
crime.” He promised his government will not make the same mistakes.
Former President Saca and other ARENA leaders on the stage appeared slightly stunned by the
harsh and apparently unexpected charges. The men sat immobile, with frozen expressions,
frequently wiping their faces with handkerchiefs as President Funes continued to criticize past
governance. Public administration has been “far from satisfactory,” he declared, and the national
economy is in the midst of a “profound social/economic crisis” caused not only by the
international financial meltdown, “but by the elite leadership in power until today.”
The president was very clear about the direction of his foreign policy, affirming Presidents
Obama and Lula as his role models and praising Secretary of State Clinton for her brilliance:
“This woman honors America…and her gender.” He made no reference to Presidents Chávez,
Morales or Ortega.
Funes outlined a “Global Anti-Crisis Plan” to ameliorate the immediate need for jobs, housing,
health care, and food on the table. He called for an “ethical revolution” in government, for
transparency, an end to corruption and pillage of public funds, a “peaceful and democratic
revolution” to reduce inequalities and secure the nation from “the dark forces of drug trafficking
and organized crime.” And he again condemned “governments of the past…that have allowed
corruption in state institutions,” and promised, “the time of impunity has ended.”
The new administration, he declared, “will be a government of merit, not of family privilege.” In
a country ruled for over a century by the infamous 14-family oligarchy, family name has meant
privilege; now, government will be led by people “recognized for their talent and honesty, not
for their connections or name.”
By the end of the discourse, ARENA leaders were visibly irritated and squirming in their chairs.
When President Funes acknowledged the assassinated archbishop, Oscar Arnulfo Romero as,
“my teacher and the spiritual guide of the nation,” the audience – with the exception of ARENA
leadership on the stage and some in the audience – stood and cheered.
“There have been leaders, parties and philosophies that have had the opportunity to govern and
have failed,” the president concluded. “After many years it is our turn, our responsibility. The
Salvadoran people are watching and Archbishop Romero will be the final judge.”
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The ceremony ended with applause and cheers. President Funes saluted the guests with a broad
smile, raised his left fist in the air and held his 17-month-old son on his right arm.
The president was scheduled to speak in the afternoon to 60,000 red t-shirted FMLN supporters
gathered in Cuscatlán Stadium for “a date with history.” The enthusiastic crowd listened to
music and waited all day under sun and rain for their new president to arrive and speak. Daniel
Ortega arrived in the late afternoon explaining that unspecified “security reasons” prevented the
participation of Chávez, Morales, and himself in the inauguration ceremony.
Ecuador’s President Correa spoke enthusiastically and was warmly received. As dusk fell the
Cuban Vice-President read a brief statement of solidarity: “We share your joy. For many years
we accompanied the FMLN through the darkest nights…Finally, today, we have re-established
relations with El Salvador.”
A police helicopter circled overhead throughout the day; supporters waved FMLN flags but
wondered if the helicopter belonged to the old or new governments? No one seemed to know
when the actual command of the military and police changed hands.
The tired crowd perked up when the president arrived at 7:30, wearing the blue and white
presidential sash…”This sash belongs to all the Salvadoran people…Today we left behind a
backward country. I promise to make ‘el pulgarcito’ (the little thumb) of America a great,
courageous and strong nation.”
Reactions
“I have attended many inaugurations but this was one of the most
joyful, most exciting I have ever been privileged to witness.”
Secretary of State Hillary Clinton
“The speech was too confrontational! He can’t say
everything we did was bad!”
Former President Alfredo Cristiani
Everyone was surprised by the vehemence of the speech, one analyst suggesting that President
Funes could not have been as aggressive in his declarations about corruption and organized
crime without the presence of the Secretary of State and her clear message of U.S. support.
The inaugural address provided a template for a new national project based on modernization of
the state, social inclusion, honesty and transparency and an end to corruption and impunity. In
foreign policy, the Funes government will look north to Washington and south to Brasilia for
political, economic, technical support but will also have friendly relations with Cuba and
Venezuela, and will support efforts toward Central American integration.
ARENA leaders condemned the address as confrontational and some warned that “the
communists” have taken over or will soon hijack the government. “I didn’t expect the attacks,”
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former President Cristiani complained, “he exaggerated; he should not create resentments when
he wants our good will.” ARENA deputy Gloria Salguera Gross accused President Funes of
“defamation” and demanded “proof” of his charges, and former party leader and businessman
Roberto Murray Meza insisted indignantly, “There was no corruption when I was in charge of
the party.”
The speech was “tough and showed political courage,” Spanish Ambassador José Javier GómezLlora García-Nava said. “ARENA thought he would be moderate. They were under the
impression they hadn’t completely lost which is not true. It is a new era.” A U.S. Embassy
political officer agreed that Funes was “quite critical” and said he sees the new government as
“generally positive,” but noted the U.S. “will be watching his appointments and policies.”
“I am very proud of my president,” said Dr. Héctor Silva, a two-time mayor of San Salvador.
“He gave a strong speech…suggesting corruption and drug trafficking had penetrated the highest
levels of government.” The newly appointed head of FIDSL (Fondo de Inversíon Social para el
Desarrollo Local) Silva added that President Saca was cordial during the transition process
because “he thought he could buy himself immunity.”
For his part, Archbishop José Escobar Alas praised the speech, particularly concerning the
choice of Brazil’s President Lula as a Funes role model: “He is possibly the greatest president in
the world for his programs that benefit the poor.” And the Rector of the University of Central
America (UCA) José Maria Tojéira expressed the hope of the Jesuit community that “this is the
beginning of a transformation, a new social-political El Salvador to confront the poverty,
impunity and violence.” The victory of the FMLN, he said, “means more conscientious social
and structural reforms.”
“Now the ball of history is in our court,” declared FMLN General Secretary Medardo González,
“it’s everyone in the bed or everyone on the floor…We will guarantee education, health care,
security and we’ll all work together. This is not socialism; it is more democracy.”
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International Relations
“Obama proved it is possible to reinvent hope….and Lula
showed that a government can be popular and democratic
with a strong economy and fair distribution of wealth.”
President Mauricio Funes
The first official act of the new government was to normalize relations with Cuba but Funes
aligned El Salvador strategically with presidents Obama and Lula as the guideposts of his
government. El Salvador thus joins the social democratic left of the Americas, which perhaps
could explain the mysterious non-appearance of the three members of the so-called
“revolutionary socialist club” at the inauguration.
Secretary of State Clinton expressed confidence and strong support for the new president, writing
in a Miami Herald opinion piece that she would be “celebrating the historic inauguration of
President-elect Funes.” At a ministerial meeting before the inauguration she described the
relationship between the two countries as “focused not on old battles but on new
partnerships…in a spirit of mutual respect, democracy, open markets integrated with social
inclusion…not just profit margins but the quality of human lives.”
During a joint press conference following the ceremony, President Funes declared that relations
with the U.S. “are strategic and fundamental.” He promised his government would be an ally in
the struggle against organized crime and drug trafficking, but emphasized, “We also need their
support to go against the dangerous enemies of poverty and social inequality.”
Clinton said President Obama hopes to have close relations with Funes and he will be invited to
meet in Washington very soon. “They have so much in common,” she said. “Some might say
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President Obama is left-of-center, and of course that means we are going to work well with
countries that share our commitment to improving and enhancing the human potential.”
Asked about the historic enmity between the United States and the FMLN, Funes said the great
challenges the country is facing mean “it’s time to turn the page.” “No one could have imagined
a left-wing government here and a left-wing president now commander-in-chief…The FMLN
won, I won, and the country is still standing. …The past has to be examined in order not to
repeat the mistakes, but my leadership is not about revenge or confrontation.”
It is in the U.S. interest for El Salvador to improve its security situation, according to analyst and
historian Roberto Turcios. “It is the country in Latin America most closely linked to the United
States, through family ties, U.S. investment and the fact that the dollar is the official currency.”
And El Salvador needs Washington’s support to secure funds from multi-lateral lending
institutions,” noted Dr. Silva, who also referred to the important role of Brazil in the electoral
and transition process: “People often joke and say the blueprint for the country is being written in
Portuguese!” The Lula model for poverty reduction will probably be replicated in El Salvador,
he said and Brazilian leadership “has been key in guaranteeing a smooth transition, advising on
how to choose a functional cabinet, how to secure loans and other insights.”
Economy: The Crisis
“The Salvadoran people are not responsible for the
economic crisis. The elite leaders who have been in
power until today are responsible.”
President Mauricio Funes
From taxi drivers to political analysts, everyone refers to it simply as “the crisis.” Salvadorans
were hit hard by rising food prices two years ago and the economy has spiraled downwards ever
since. President Saca had insisted the economy was in good order until the transition, when the
Funes team discovered the reality of a fiscal deficit of 5.4% ($1.2 billion) and empty coffers. Just
days before the inauguration, economist Alex Segovia, named as the Technical Secretary to the
President, warned the country “is on the brink of collapse” and “could be paralyzed.” Exports
were down 14.8% just in the month of April, and remittances from Salvadorans abroad are down
an average of 10% over the same period in 2008, and -12.8% in the month of May, according to
the Central Reserve Bank.
The crash in remittances is of great concern because some 20% of the population survives on
income from relatives abroad, primarily the 2.5 million Salvadorans in the United States. One
analyst described ARENA’s greatest accomplishment of the past 20 years as “exporting
humanity and collecting remittances,” and suggested the country would have been a failed state
in recent decades without the social net provided by Salvadorans abroad.
Then-president-elect Funes and his economic advisers met in May with the World Bank, IMF
and IDB to discuss loans and budget readjustments as the country’s S&P credit rating was
lowered “deeper into junk territory” and analysts predicted a 0.5% growth in 2009.
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The country will depend on loans and a serious austerity program to survive the next six months.
UCA Rector José María Tojéira expressed confidence in the ability of the economic team chosen
by President Funes. ”It is the best the country has ever seen,” he said. “ARENA never appointed
an economic team with the technical capacity that the current government will have.”
Over $460 million will be available from the Millennium Challenge Corporation designated to
reduce poverty through economic growth, but there is already controversy about the first
distribution of funds designated to build a north-south highway through the most impoverished
rural areas of the country, a traditional FMLN base. Sandra Barraza of CONADES (National
Development Commission) suggested important questions need to be asked: who is buying up
the land along the proposed highway, are the poor rural farmers being properly compensated for
their land, and what will be the environmental impact of the project?
Longer term challenges include the elimination of corruption, pilferage and misuse of
government funds and the implementation of a functioning system of tax collection. The new
director of CEPA (airports and ports) Carlos Cáceres served briefly under the ARENA
government as Minister of the Internal Revenue Service, but resigned when he looked in the
computer and discovered the miniscule amount of taxes paid by the wealthiest families.
ARENA lost the election because it is “a victim of its own development scheme,” said UCA
Rector José María Tojéira. “It’s a scheme that benefits the rich and is unfavorable to the poor,
especially at times of crisis…With a large portion of the society vulnerable to economic
turbulence the government itself becomes vulnerable.”
Members of the new cabinet visited their institutions on June 2 to find missing files and empty
coffers. “We don’t even know how we will pay staff on June 15,” Dr. Silva said.
Security
“Our democracy has been ambushed by the dark forces of
drug trafficking and organized crime…by the inadequate decisions of past
governments that have consented to corruption in state institutions.”
President Mauricio Funes
During the post-war years violence increased to the extent that El Salvador is now considered
one of the most violent countries per capita in the world, with 61 homicides per 100,000, an
average of 12 per day - and 25 on May 30th alone. Drug trafficking, organized crime, poverty,
unemployment, family disintegration and deportations of thousands of alleged gang members
from the U.S. have all contributed to a climate of criminalization that infects the entire country.
The notorious security forces were disbanded in 1992 as part of the Peace Accords and replaced
by a new professional National Civilian Police (PNC). But its image was soon tarnished by
inefficiency and corruption, and most recently with allegations of infiltration by organized crime,
especially in the eastern zone of the country.
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President Funes promised to clean-up the PNC immediately and the success of his government in
confronting drug traffickers and organized crime will depend on his ability to fulfill this
commitment. “I will be implacable,” he said “to decontaminate the police, to impose
administrative or criminal sanctions.” Drug trafficking, he said, “transforms governments into
hostages…We must not enter this circle of terror and neither can we allow the poor to be
hostages of gangs.”
Secretary of State Clinton praised the president’s commitment and said the U.S. “will provide
whatever technical and financial assistance” the administration needs. That support will be
critical to the stability of the country. Héctor Silva expressed concern about the personal security
of the president and members of the new government “if he does all the things he has said he will
do.” Some members of ARENA are said to be involved in the trafficking “and his speech really
hit home with them.”
The death of an ARENA party leader the morning after the inauguration was seen by some as a
message to the new government. Adolfo Tórrez had recently been removed as head of the party
in San Salvador due to connections with the criminal underworld made public through an FBI
tape; Tórrez allegedly committed suicide after suggesting he might “tell all” and many questions
about the death remain unanswered.
The new security team is comprised of experienced FMLN members. “They are good, honest
people,” affirmed Héctor Silva, “which shows the serious intent of the government to confront
the problem.” Carlos Ascencio, the newly appointed director of the PNC, said he agreed that the
institution had “lost its credibility” and promised to clean-out bad elements, to professionalize
investigative capacity, hire and train more agents and institute community policing as part of
preventative efforts.
Ascencio also criticized the prior administration’s policy of indiscriminate repression, “mano
duro” (iron fist) to eradicate gangs; over 7,000 alleged gang members are in prison “and the
homicide rate has not been reduced.” On June 2nd, imprisoned leaders of the MS 13 and 18
issued a communiqué offering a truce and dialogue “to find a way to resolve problems
intelligently.”
While good policing is essential to security, the criminal justice system is also said to be
infiltrated by criminal elements and, with some exceptions, provides the institutional impunity
necessary for organized crime to operate in the country. The National Assembly appoints state
prosecutors and the Supreme Court judges. The FMLN has a plurality but not a majority, making
judicial reform a particular challenge for the new government.
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The Cabinet
“This will be a government of meritocracy, not family privilege…
The people will be known for their talent and honesty, not for connections.
We will not be about privileges, cronyism or shady patronage.”
President Mauricio Funes
The new cabinet is a reflection of the broad coalition that brought Funes and the FMLN to
power. Ministers represent the alliance of the FMLN, the centrist “Friends of Mauricio” - which
included intellectuals, business, and military – and the president’s closest advisers. While there is
general praise for the economic team as technically skilled and non-partisan, there are questions
about the ability of the diverse members of the cabinet to function together. It is “very
fragmented” according to analyst Roberto Turcios, “without one shared vision for the direction
of the country.” Funes as “la figura” is “the first and last line of defense,” Turcios continued.
The “Friends” will run the economy and the FMLN is in charge of security and social projects
including the ministries of security, interior, intelligence, education, public works, labor and
public heath – guaranteeing that the party will have territorial control.
Two new and important positions were created and assigned to “Friends.” As the “Technical
Secretary to the President,” Alex Segovia will function as chief of staff for economic affairs.
And close adviser Hato Hasbún will oversee modernization of state institutions as “Minister of
Strategic Affairs.” The president’s wife, Brazilian lawyer and political activist Vanda Pignato,
has been named the Secretary of Social Inclusion and will play an active role overseeing
government projects related to women, children and the most disenfranchised.
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The Minister of Defense also represents the “Friends.” Retired colonel David Munguia Payés
was a close adviser to the president during the campaign and is considered to be “a good man”
by UCA Rector Tojéira.
Father Tojéira expressed some concern that the cabinet is so explicitly divided into two groups
and Héctor Silva acknowledged the challenge of constructing a unified vision for this diverse
cabinet but said, “It's like vinegar and water… it works if they are running in the same
direction.”
Roberto Turcios, representatives of Salvadoreños en el Mundo (SEEM) and others spoke of the
necessity for a political voice and participation in the government for the estimated three million
Salvadorans in the “Diaspora.” According to the Central Reserve Bank, the Diaspora has injected
$27 billion into the economy over the past 20 years but has been ignored by succeeding
administrations. SEEM is demanding representation in the National Assembly and absentee
voting rights. Turcios suggested the need for serious study of the phenomenon of mass migration
and its consequences for the country.
Finally, Turcios says there are plans to implement a national dialogue to develop a strategic plan
based on consensus, “a rich intellectual debate to discuss the future direction of the country.”
The First Week: Change Begins Now
In the days leading up to the inauguration there were reports that the military was apprehensive
about the historic transfer of power from the right to the left. As the newly installed cabinet
members assumed control of ministries, President Funes met with the Armed Forces High
Command to receive the “baton” as commander-in-chief. He called on the military to take a new,
active role with the National Civilian Police to combat violence and crime and to assist with the
reconstruction and modernization of the state. The president also promised increased funding to
the institution.
Vice-President and former guerrilla commander Salvador Sánchez Cerén participated in the
ceremony, signing the document that appointed Colonel David Munguia Payés as Minister of
Defense.
In her role as Secretary of Social Inclusion, Vanda Pignato set the tone for an active first lady
during a visit to the office of the “National Secretary of Youth,” a possibly phantom institution
financed by unaccountable funds from the secret presidential budget of the past administration.
Accompanied by the press, Pignato found a luxury office rented for $5,000 a month, complete
with a pool and Jacuzzi. The office will be closed immediately, she said, “We’re not going to be
throwing away money any longer.” All institutions related to women, youth, children and the
disabled will be merged for greater efficiency, she announced.
Later in the day, Pignato visited a project for women in the impoverished downtown area,
walked the streets and greeted pedestrians before visiting several poor neighborhoods with the
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new minister of Public Works. She noted the lack of infrastructure in the communities and
declared that the former minister had “zero qualifications” to do the job.
The week ended with an historic meeting in Casa Presidencial with leaders of the social
movement including human rights and environmental groups, unions and agricultural
organizations. “This is historic,” President Funes said, “the first time ever that representatives of
social organizations have been invited to Casa Presidencial. The people voted for change and the
change begins now.”
The First 100 Days
Presidents Obama and Funes have both come to power in the midst of great economic
turbulence; while each faces particular challenges, both have promised “change” and both
believe that the crisis can provide opportunity for a transformation in governance.
Both will be judged by how they manage the economy in the immediate period. “The crisis will
be the only test of the first 100 days for Funes,” according to analyst Roberto Turcios, “It will
consume all attention and energy for at least six months.”
The first 100 days may also demonstrate the capacity of the president to navigate the political
panorama of his government and of the country. “He has a complex task to negotiate with more
people than any previous government,” Father Tojéira said, “the private enterprise sector, the
army, the parties of the right, the FMLN and the “Friends.”
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He can expect no cooperation from the conservative media or ARENA and will not have control
of the legislature as he begins the process of dismantling the structures of privilege that have
existed for over a century, unraveling the tangled webs of corruption in every institution and
tackling organized crime.
However, Mauricio Funes now has an 81% approval rating and he and the FMLN have the
ability to mobilize massive support in the country. He can count on active technical and political
support from Brazil, political, financial and security support from U.S. and support from social
democratic countries including Spain. He has a brilliant economic cabinet and committed
security team.
With ARENA in disarray following defeat, the party may be too weak in the immediate future to
destabilize the new government. The right lost the patrimony of the state, Roberto Turcios said,
“Now there are new rules of the game.” But, he cautioned, “It all depends on Funes’ political
capacity. If he falls into a trap it will be all over….and there must be evidence of change in the
first 100 days.”
As one online news source noted, for the first time in 20 years former journalist Mauricio Funes
did not interview a new president. Journalist no longer, he now carries the hopes and aspirations
of millions of Salvadorans on his shoulders, “as the first and last in the line of fire.”
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