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Friday, May 31, 2013

Guatemala: Political, Security, and Socio- Economic Conditions and U.S. Relations



Maureen Taft-Morales
Specialist in Latin American Affairs

Since the 1980s, Guatemala, the most populous country in Central America with a population just over 14 million, has continued its transition from a centuries-long tradition of mostly autocratic rule toward representative government. A democratic constitution was adopted in 1985, and a democratically elected government was inaugurated in 1986. A 36-year civil war that ravaged Guatemala ended in 1996.

This report provides an overview of Guatemala’s current political and economic conditions, relations with the United States, and several issues likely to figure in future decisions by Congress and the Administration regarding Guatemala. With respect to continued cooperation and foreign assistance, these issues include security and governance; protection of human rights and human rights conditions on some U.S. military aid to Guatemala; support for the International Commission against Impunity in Guatemala; combating narcotics trafficking and organized crime; trade relations; and intercountry adoption.

In November 2011, Otto Pérez Molina won the second-round presidential election run-off with 53.8% of the vote. He took office, along with the 158-member Congress, in January 2012. A former military commander who served during the civil war period, Pérez Molina faces concerns from some regarding his role in the human rights abuses committed during that period. In a landmark case, a Guatemalan court found former dictator Efrain Rios Montt guilty of genocide and crimes against humanity on May 10, 2013. Appeals have been filed.

Guatemala continues to be plagued by security issues related to narcotics trafficking and the rise of organized crime, social inequality, and poverty. Upon taking office Pérez Molina announced a controversial position to decriminalize drugs as one policy initiative to address Guatemala’s many problems. Pérez Molina's proposal has failed to garner the support of other Central American leaders, but he seems willing to continue pushing the debate forward. In his view, decriminalization has to be gradual and strongly regulated, and it has to take place in the whole region, including producer and consumer countries. In the meantime, Pérez Molina vows to continue prosecuting and jailing drug-traffickers.

Economic growth fell in 2009, to 0.5%, as export demand from U.S. and other Central American markets declined and foreign investment slowed amid the global recession. The economy gradually recovered, up to 2.8% in 2010, and 3.8% in 2011, though this is expected to taper off slightly in 2012. Agriculture contributes 13% of GDP and accounts for 26% of exports from Guatemala. According to the World Bank, Guatemala has one of the most unequal income distributions in the hemisphere. Guatemala is part of the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).

Relations between Guatemala and the United States have traditionally been close, but they have been strained at times by human rights and civil-military issues, long of interest to the U.S. Congress. U.S. policy objectives in Guatemala include strengthening democratic institutions; encouraging respect for human rights and the rule of law; supporting broad-based economic growth, sustainable development, and mutually beneficial trade relations; combating drug trafficking; and supporting continued Central American integration.



Date of Report: May 16, 2013
Number of Pages: 21
Order Number: R42580
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Haiti Under President Martelly: Current Conditions and Congressional Concerns



Maureen Taft-Morales
Specialist in Latin American Affairs

Haiti shares the island of Hispaniola with the Dominican Republic. Since the fall of the Duvalier dictatorship in 1986, Haiti has struggled to overcome its centuries-long legacy of authoritarianism, extreme poverty, and underdevelopment. During that time, economic and social stability improved considerably, and many analysts believed Haiti was turning a corner toward sustainable development. Unfortunately, Haiti’s development was set back by a massive earthquake in January 2010 that devastated much of the capital of Port-au-Prince and other parts of the country. Poverty remains massive and deep, and economic disparity is wide: Haiti remains the poorest country in the western hemisphere.

Haiti is the Obama Administration’s top foreign assistance priority for Latin American and Caribbean countries. Haiti’s developmental needs and priorities are many. The Haitian government and the international donor community are implementing a 10-year recovery plan focusing on territorial, economic, social, and institutional rebuilding. An outbreak of cholera that began in late 2010 has swept across most of the country and further complicated assistance efforts. While some progress has been made in developing democratic institutions, they remain weak. In May 2011, following yet another controversial election, President René Préval was succeeded by Michel Martelly, a popular musician without any previous political experience. President Martelly’s difficulty in forming a government and political gridlock, especially the lengthy and contentious delays in beginning a long overdue elections process, are hampering reconstruction efforts and frustrating international donors. Some steps toward elections have been made, including naming an electoral council and passing a political parties law.

The United Nations Stabilization Mission in Haiti (MINUSTAH) has been in Haiti to help restore order since the collapse of former President Jean-Bertrand Aristide’s government in 2004. It currently has 9,464 troops. The mission has helped facilitate elections, conducted campaigns to combat gangs and drug trafficking with the Haitian National Police, and played a key role in emergency responses to natural disasters, especially after the earthquake. Nonetheless, popular protests have called for MINUSTAH’s withdrawal because of sexual abuse by some of its forces and scientific findings that its troops apparently introduced cholera to the country. In February 2013 the U.N. said it would not compensate cholera victims, citing diplomatic immunity. The main priorities for U.S. policy regarding Haiti are to strengthen fragile democratic processes, continue to improve security, and promote economic development. Other concerns include the cost and effectiveness of U.S. aid; protecting human rights; combating narcotics, arms, and human trafficking; and alleviating poverty. The Obama Administration granted Temporary Protected Status to Haitians living in the United States at the time of the earthquake.

Congressional concerns include the pace and effectiveness of reconstruction, respect for human rights, security issues, counternarcotics efforts and trade issues. Congress is also concerned that overdue Senate and local elections be scheduled quickly and be free, fair, and peaceful.

Current legislation related to Haiti includes P.L. 112-74, P.L. 111-171, P.L. 110-246, P.L. 109- 432, H.R. 651, H.R. 1525, H.R. 1749, H.Res. 31, H.Res. 61, and S.Res. 12.



Date of Report: May 10, 2013
Number of Pages: 38
Order Number: R42559
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Tuesday, May 28, 2013

El Salvador: Political and Economic Conditions and U.S. Relations



Clare Ribando Seelke
Specialist in Latin American Affairs

Congress has maintained a strong interest in developments in El Salvador, a small Central American country with a population of 6 million. During the 1980s, El Salvador was the largest recipient of U.S. aid in Latin America as its government struggled against the leftist Farabundo Marti National Liberation Front (FMLN) insurgency during a 12-year civil war. A peace accord negotiated in 1992 brought the war to an end and formally assimilated the FMLN into the political process as a political party. After the peace accords were signed, U.S. involvement shifted toward helping successive Nationalist Republican Alliance (ARENA) governments rebuild democracy and implement market-friendly economic reforms. 

Funes Administration 


Twenty-one years after the signing of the peace accords, El Salvador is governed by an FMLN Administration. In March 2009, Mauricio Funes, a former television journalist and the first FMLN presidential candidate without a guerilla past, defeated Rodrigo Ávila of the conservative ARENA party for a five-year presidential term. President Funes has generally pursued moderate policies that have enabled him to form cross-party coalitions in the National Assembly, but caused periodic friction with more radical members of his party.

Now in his fourth year in office, President Funes still has high approval ratings, but faces a number of serious challenges. His political influence has weakened since ARENA replaced the FMLN as the largest party in the legislature and the attention of both parties has turned to the 2014 presidential contest, which President Funes is constitutionally barred from contesting. Nevertheless, Funes successfully mediated a resolution to a months-long standoff between the Salvadoran judiciary and legislature over the composition and power of the Supreme Court in August 2012. In the economic realm, the Funes Administration is seeking to boost investment and growth, which has been inhibited by low productivity, natural disasters, and insecurity. In an attempt to address insecurity in the country, the Funes government endorsed a historic—and risky—truce involving the country’s largest gangs. The truce has contributed to a large reduction in homicides since March 2012. 

2014 Elections 


Political attention in El Salvador is turning toward the country’s March 2014 presidential elections. ARENA has selected Norman Quijano, the popular second-term mayor of San Salvador, as its standard bearer. His running mate is Rene Portillo Cuadro, a lawyer. The FMLN has chosen Salvador Sánchez Cerén, the current vice president and a former guerrilla leader, and Oscar Ortiz, the popular mayor of Santa Tecla. Former President Elías Antonio “Tony” Saca has also entered the race on a “Unity Movement” coalition ticket, but has yet to name a running mate. Saca could potentially force a runoff election. 

U.S.-Salvadoran Relations 


Congress has maintained an interest in events in El Salvador as well as bilateral relations, particularly in the security realm. During a March 2011 visit to El Salvador, President Barack Obama and President Funes pledged to strengthen cooperation through the new Partnership for Growth (PFG) initiative. The PFG commits both governments to work closely together to boost competitiveness and reduce insecurity in El Salvador. Congress has provided bilateral assistance, which totaled $28.2 million in FY2012, as well as aid provided through the Central American Regional Security Initiative (CARSI), in support of PFG priorities. The Millennium Challenge Corporation (MCC) recently completed a five-year, $461 million program that helped develop El Salvador’s northern border region. MCC has determined that El Salvador is eligible to submit a second compact proposal to develop its southern coastal region. It is as yet unclear how the U.S. Treasury Department’s recent designation of the MS-13 gang as a major transnational criminal organization whose assets will be targeted may affect bilateral anti-gang efforts.

This report examines current conditions in El Salvador as well as issues in U.S.-Salvadoran relations. For related information, see: CRS Report R41731, Central America Regional Security Initiative: Background and Policy Issues for Congress and CRS Report RL34112, Gangs in Central America.


Date of Report: April 5, 2013
Number of Pages: 26
Order Number: RS21655
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Friday, May 24, 2013

Cuba: U.S. Restrictions on Travel and Remittances



Mark P. Sullivan
Specialist in Latin American Affairs

Restrictions on travel to Cuba have been a key and often contentious component in U.S. efforts to isolate Cuba’s communist government since the early 1960s. Under the George W. Bush Administration, restrictions on travel and on private remittances to Cuba were tightened. In March 2003, the Administration eliminated travel for people-to-people educational exchanges unrelated to academic coursework. In June 2004, the Administration further restricted family and educational travel, eliminated the category of fully-hosted travel, and restricted remittances so that they could only be sent to the remitter’s immediate family. Initially there was mixed reaction to the Administration’s June 2004 tightening of Cuba travel and remittance restrictions, but opposition to the policy grew, especially within the Cuban American community regarding the restrictions on family travel and remittances. 

Obama Administration Policy 


Under the Obama Administration, Congress took action in March 2009 by including two provisions in the FY2009 omnibus appropriations measure (P.L. 111-8) that eased restrictions on family travel and travel related to marketing and sale of agricultural and medical goods to Cuba. Subsequently, in April 2009, President Obama announced that his Administration would go further and allow unlimited family travel and remittances. Regulations implementing these changes were issued in September 2009. The new regulations also included the authorization of general licenses for travel transactions for telecommunications-related sales and for attendance at professional meetings related to commercial telecommunications.

In January 2011, the Obama Administration announced policy changes further easing restrictions on travel and remittances. The measures (1) increase purposeful travel to Cuba related to religious, educational, and people-to-people exchanges; (2) allow any U.S. person to send remittances to non-family members in Cuba and make it easier for religious institutions to send remittances for religious activities; and (3) permit all U.S. international airports to apply to provide services to licensed charter flights. These new measures, with the exception of the expansion of eligible airports, are similar to policies that were undertaken by the Clinton Administration in 1999, but subsequently curtailed by the Bush Administration in 2003-2004. 

Legislative Initiatives 


There were several attempts in the 112
th Congress aimed at rolling back the Obama Administration’s actions easing restrictions on travel and remittances, but none of these were approved. Several legislative initiatives were also introduced that would have further eased or lifted such restrictions altogether, but no action was taken on these measures.

To date in the 113
th Congress, several initiatives again have been introduced that would lift all travel restrictions: H.R. 871 (Rangel) would lift travel restrictions; H.R. 873 (Rangel) would lift travel restrictions and restrictions on U.S. agricultural exports; and H.R. 214 (Serrano) and H.R. 872 (Rangel) would lift the overall embargo, including travel restrictions.

For further information, see CRS Report R43024, Cuba: U.S. Policy and Issues for the 113th Congress, by Mark P. Sullivan.



Date of Report: March 7, 2013
Number of Pages: 42
Order Number: RL31139
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Wednesday, May 22, 2013

Central America Regional Security Initiative: Background and Policy Issues for Congress



Peter J. Meyer
Analyst in Latin American Affairs

Clare Ribando Seelke
Specialist in Latin American Affairs


Central America faces significant security challenges. Criminal threats, fragile political and judicial systems, and social hardships such as poverty and unemployment contribute to widespread insecurity in the region. Consequently, improving security conditions in these countries is a difficult, multifaceted endeavor. Because U.S. drug demand contributes to regional security challenges and the consequences of citizen insecurity in Central America are potentially far-reaching, the United States is collaborating with countries in the region to implement and refine security efforts. 

Criminal Threats 


Well-financed drug trafficking organizations (DTOs), along with transnational gangs and other criminal groups, threaten to overwhelm Central American governments. Counternarcotics efforts in Colombia and Mexico have put pressure on DTOs in those countries, leading many to increase their operations in Central America—a region with fewer resources and weaker institutions with which to combat drug trafficking and related criminality. Increasing flows of narcotics through Central America are contributing to rising levels of violence and the corruption of government officials, both of which are weakening citizens’ support for democracy and the rule of law. DTOs are also increasingly becoming poly-criminal organizations, raising millions of dollars through smuggling, extorting, and sometimes kidnapping migrants. Given the transnational character of criminal organizations and their abilities to exploit ungoverned spaces, some analysts assert that insecurity in Central America poses a potential threat to the United States. 

Social and Political Factors 


Throughout Central America, underlying social conditions and structural weaknesses in governance inhibit efforts to improve security. Persistent poverty, inequality, and unemployment leave large portions of the population susceptible to crime. Given the limited opportunities other than emigration available to the expanding youth populations in Central America, young people are particularly vulnerable. At the same time, underfunded security forces and the failure to fully implement post-conflict institutional reforms initiated in several countries in the 1990s have left police, prisons, and judicial systems weak and susceptible to corruption. 

Approaches to Central American Security 


Central American governments have attempted to improve security conditions in a variety of ways, and are increasingly experimenting with new policies. Several countries, including Honduras, have taken more of a hardline approach to organized crime, deploying military forces to carry out policing functions. The Guatemalan government has also embraced a larger role for the military in public security, although it has simultaneously called on countries in the region to consider drug decriminalization and other alternatives. Other Central American governments have emphasized prevention activities, such as programs that focus on strengthening families of at-risk youth, while the governments of Belize and El Salvador have supported efforts to broker truces between criminal gangs. Additionally, Central American nations have sought to improve regional security cooperation, recognizing the transnational nature of the threats they face.


U.S. Assistance 


To address growing security concerns, the Obama Administration has sought to develop collaborative partnerships throughout the hemisphere. In Central America, this has taken the form of the Central America Regional Security Initiative (CARSI), which was originally created in FY2008 as part of the Mexico-focused counterdrug and anticrime assistance package known as the Mérida Initiative. CARSI takes a broad approach to the issue of security. In addition to providing the seven nations of Central America with equipment, training, and technical assistance to support immediate law enforcement and interdiction operations, CARSI seeks to strengthen the capacities of governmental institutions to address security challenges and the underlying conditions that contribute to them. From FY2008 to FY2012, Congress appropriated $496.5 million for Central America through Mérida/CARSI. While CARSI funding for FY2013 is currently unclear, the Obama Administration has requested $161.5 million for FY2014. 

Scope of This Report 


This report examines the extent of security problems in Central America, current efforts being undertaken by Central American governments to address them, and U.S. support for Central American efforts through the Central America Regional Security Initiative. It also raises potential policy issues for congressional consideration such as funding levels, human rights concerns, and how CARSI relates to other U.S. government policies.


Date of Report: May 7, 2013
Number of Pages: 42
Order Number: R41731
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