(Published in the Spring 2005 issue of the CPJ Newsletter)
Recently, CPJ member Bill Stock learned first hand about the complex economic issue of free trade.  In January, Bill spent nine days in Nicaragua as part of a Witness for Peace delegation.  This politically independent organization works for “human rights, peace, justice, and sustainable economies through socially responsible travel, personal experience, popular education, and grassroots activism.”

Bill saw Nicaragua’s spectacular natural beauty, as well as its extreme poverty.  This Central American nation is the second poorest in the Western Hemisphere, next to Haiti,  due to factors including decades of dictatorship, war, governmental corruption, external interference (largely by the U.S.), a five year U.S. trade embargo, as well as a massive earthquake in 1972 and the devastation of Hurricane Mitch in 1998.  Starting in the 1970’s, Nicaragua developed an ever-increasing international debt ($6.5 billion by 1994).  To even pay the interest on the debt, funds were diverted away from the provision of education, health care, and public services.  In an attempt to remedy this, the International Monetary Fund and the World Bank instituted “structural adjustment policies” that pressured Nicaragua to privatize utilities and encourage foreign investment by opening Free Trade Zones.  Part of free trade means that countries must offer their resources to their trading partners.  In the case of a developed country such as the U.S, that might be technology.  For a country like Nicaragua, it is cheap, unregulated labor.  This has created competition for the lowest labor costs – a “race to the bottom” – resulting in further damage to living standards, labor conditions, and the environment.  Workers in a magila, or export assembly factory, make an average of $600/year; 100 hour work weeks are common.  On the horizon is an attempt to broaden free trade in the region, the Central American Free Trade Agreement (CAFTA).

During Bill’s visit, he met factory workers; heard those striving to improve conditions; and stayed with a family for two days in their dirt-floored home.  He also saw a Fair Trade cooperative which adheres to labor laws and pays workers a living wage, and visited a women’s health clinic – “islands of hope,” in Bill’s words.

Those who wish to take action can contact their representatives to express their opinion about CAFTA and look for Fair Trade products.  Also, the CPJ continues to support Ann Marie Zon’s mission to help the people of Nicaragua.

There is much more to learn about this topic.  Bill will speak about his experience at the CPJ meeting on April 21 at 7:30 pm at SUNY Fredonia, Houghton Hall, First Floor Lounge.

Some websites providing more information are:
www.witnessforpeace.org
www.stopcafta.org
www.madre.org
www.tradewatch.org

The alternate perspective can be found at:
www.freetradeusa.org