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[introduction.]

p Humberto Vargas Carbonell— General Secretary, CC, People’s Vanguard Party of Costa Rica (PVP)

p SAFEGUARDING peace is a challenge common to us all now. This is essential if we are to survive. Every country and every party has its own view of this challenge. Ours is that Central America has been the target of unceasing aggression and crushing exploitation by imperialism. For us the drive for human survival is also one for the survival and progress of the working people. To effectively protect peace, people’s support is vital, and to have that we need to press harder against the alliance of oligarchy and imperialism.

p Whatever the barriers facing us we still remain optimistic. The role of the USSR in campaigning for disarmament and peace and CPSU efforts at streamlining society through broad democracy and openness are making things easier for us, too. Events like the meeting of communist parties and other democratic and left forces to celebrate the 70th anniversary of the Great October Socialist Revolution, which was hallmarked by unobstructed dialogue and mutual respect, have inestimable historic significance and help unmask imperialist lies of the ’Soviet threat’.

p What we Costa Rican Communists need to do in the first place now is to fight for peace, against US interference in Central America, as well as to boost revolutionary action against oppression and exploitation by imperialism and the local oligarchy.

The situation in Costa Rica, events of the past few years, and the policy of the People’s Vanguard Party of Costa Rica should be seen in the context of the historical evolution of Latin America and our region. Relations between the US and Latin America are undergoing profound changes caused, among other factors, by the deepening crisis of a ’development model’ imperialism is forcing on us. Its more salient economic aspects are an overpowering foreign debt, and the power politics of the International Monetary Fund and the World Bank^^1^^, which are pressing us hard to repay the debt. Costa Rica, for one, is going through extremely hard times. We are burdened with an economic policy developed under accords with these 31 financial institutions. Like the peoples of other states on the subcontinent, the Costa Ricans increasingly become aware of who is really to blame for their dire straits, and are frequently taking to the streets to protest over the IMF line, more specifically a ’declaration of intentions’ and other obligations by our government to ‘settle’ the debt problem.

Responsibility of the Revolutionaries

p Central America is now in the grip of the most hard-hitting political, military, economic and social crisis it has ever seen. It is the scene of revolutionary processes of varying intensity and a growing contention between the people, on the one hand, and imperialism and its allies, the local oligarchies, on the other. The only conclusion we can make is that the region will never be the same again. There already is clear evidence to support our case.

p The building of a new, truly independent, democratic and popular state in Nicaragua has radically changed the nature of its relations with the US. But the Nicaraguan revolution is also having its impact on changes in the neighbouring republics. Their range is broad, including relations with imperialism.

p The situation around Nicaragua, the heroic revolutionary struggle in El Salvador, the mounting guerrilla movement in Guatemala, US army occupation of Honduran territory, and the broadening involvement of Costa Rica in regional affairs all go to prove that changes in each individual country occur amidst most intense military and political tensions.

p The present situation urges the revolutionaries to show effective flexibility, as strikingly exemplified by the Sandinist leaders’ policies. Aside from a clear vision of the future we need much tactical skill and a political steadfastness combined with an ability for manoeuvre. We must resist interventionist imperialist policy with an adamant struggle for peace and the sovereignty of our peoples, providing a strong leadership to them.

p Our resolve to build up solidarity with the Nicaraguan revolution requires that we keep a close watch over the Costa Rican government’s policy towards the neighbouring republic. The administrations of Luis Alberto Monge (1982-1986) and Oscar Arias (in office since 1986) were formed by the National Liberation Party (NLP), which portrays itself as a social democratic one. The four years of Monge’s tenure saw overt antiNicaraguan policies. Amid much propaganda fanfare the president declared a ’constant neutrality’ of Costa Rica, which was virtually a cover for operations in its territory by the US and its hirelings the contras. Efforts were made to present it as a defenceless victim risking ending up in the ’claws of Sandinism’. The position of the Costa Rican government was fully endorsed by the chief opposition bourgeois party, the Social Christian Alliance. A propaganda ballyhoo is being steadily fuelled—and financed —by imperialism and the oligarchies of both bourgeois parties. It has now grown into an overt psychological war. Our people are being incited to be aggressive, chauvinistic and hateful towards Nicaragua. All this is being paraded as defending ‘democracy’ but is actually an element of the campaign to destabilise the Sandinist revolution. While Honduras has been the chief beach-head of aggression against Nicaragua, Costa Rica has been 32 used to provoke armed conflicts or overt foreign intervention.

p Our party has consistently stressed that neutrality could be the mainstay of a true peace policy if only the government matched its words with actions. Regrettably, this was not the case. The contras set up their bases, hospitals and supply routes in Costa Rica to use it as their dependable rear.

p A US congressional inquiry into the Irangate affair produced ample evidence of the way Potrero Grande airport was being used for contra needs, as well as of CIA operations in Costa Rica. There is evidence pinning down the Monge administration’s complicity in the dirty war against Nicaragua.

p The international prestige of Costa Rica and its image of a democratic government lauded by the bourgeois press in many countries turned to dust overnight. Instead the Monge cabinet got sizeable financial aid from the US, which helped to keep it economically .afloat in the teeth of a most severe crisis and one of the biggest per capita debts in the world.

What shaped government policies was pressure by imperialism and the very class nature of the National Liberation Party, implicitly loyal to the oligarchy. But as the danger of direct intervention and the war engulfing the whole of Central American region became increasingly real, some elements within the ruling class started to air misgivings about such prospects. There were also people worried by the position of many Latin American states, primarily those within the Contadora group and the Support group, which did not share the anti-Nicaraguan stance of Costa Rican authorities. As well, the party leaders could not turn a deaf ear to the views of some West European governments and parties, which disagreed with the power politics practised by Reagan in Central America.

President Arias and Nicaragua

p Oscar Arias came to power with a political platform of regional peace and solution of the country’s crying social problems like unemployment and housing shortages. But already his first year in office showed him to be as hostile and arrogant towards Nicaragua as his predecessors. His promises to deal with domestic social and economic problems remained as such. The authorities continued to clamp down on peasant actions for more land and campaigns by the urban poor for more housing.

p But later the government policies showed a measure of disagreement with Washington. After the president unveiled his peace plan for Central America, the CC plenary meeting in March 1987 pointed out: "Special note should be made of the document, ’The hour of peace has struck’, submitted to the meeting of Central American presidents (in February 1987—H.V.C.). Originally an interventionist, anti-Nicaraguan manifesto, it later evolved into a basis for talks . . .”^^2^^

p Indeed, the initial draft publicly endorsed by Frank Carlucci^^3^^ aimed to isolate Nicaragua. But when the heads of the Central American nations (excluding Daniel Ortega) came to Costa Rica to sign it they failed to reach agreement. Why? Chiefly owing to the failed strategy of the ‘contras’, the greater international standing of the Sandinist revolution and the Contadora and the Support groups, and also because the four presidents failed, even with US support, to lay down their terms to Nicaragua.

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p It became clear that the plan had a chance of success only if Nicaragua was a party to it, which, would drastically change its nature. This is exactly what happened. After protracted negotiations a document was signed in Guatemala on August 7, 1987, now known as ’Esquipulas IF or, more popularly, the Arias Plan.

p What this process will come to is hard to predict. The warmongers, primarily the US administration, have not given up their schemes and aid and comfort the contras. The above document will doubtless help the peace policy along. Characteristically enough, Nicaragua is the only signatory country to strictly abide by the accords. The Communist parties and other revolutionary and progressive quarters in the region are demanding that all the other countries do likewise. The guerrilla forces in El Salvador and Guatemala were fairly instrumental in this respect by starting talks with the authorities. In Honduras the democratic forces set up a national reconciliation commission. In Costa Rica we have" been successful in forming a similar commission to look into demands by our party and other public organisations.

The US administration is looking askance at this formula to settle the Central American problems. With support from its allies in the region it will sabotage any shift for the better. The plan is being boycotted even by some of its signatories. Arias himself has been sending out conflicting signals. And yet his winning the Nobel Prize is a bonus for the cause of peace in Central America and efforts at a negotiated resolution of conflicts and greater democracy in our countries.

Common People on the Receiving End of the Crisis

p The Costa Rican president has made some political capital out of the peace plan. There has been more public backing for his foreign policy since the signing of the Guatemala accords, but there is also mounting protest against his current socio-economic policies. iThe nation is getting more dependent on the IMF and the International Development Association (ADI). The policies these two are laying down are adding to the taxing burden the working people already have to shoulder.

p Costa Rica’s foreign debt of nearly $5 billion^^4^^ is impossible to repay. The private banks are responsible for the more burdensome part of it, owing to high interest rates. In 1983 it stood at $800 million and topped $1.5 billion after yet another ‘agreement’ with the creditors in 1987. The chronic defaulting on financial obligations and consequently ever new ’refinancing measures’ are only making things worse. This is not something new for the Third World, but the problem of Costa Rica has a special urgency due to its relatively small population and economic disarray.

p To gain new settlements with the IMF the government is slashing social programmes and reducing taxes on enterprises, while raising those on the people. Consumer goods taxes are going up while grains subsidies are going down. The state sector in the economy is being phased out; the process started with the abolition of our people’s milestone gain, the system of nationalised banks. Over the past few years privatisation has affected cement, aluminium, mineral fertilizer, fish farming and processing and other areas. It is now the turn of the services. Consumer necessities 34 and utilities are costing more now and pay curbs are being tightened.

p Our national currency is trading at less and less to the US dollar. The republic’s weak economy is being increasingly hurt by inequitable trade. Costa Rican industry is suffering from US protectionist measures, which are at odds with Reagan’s widely publicised ’Caribbean initiative’. The debt problem will never be settled if its discussion with the creditors carries on in the same vein.

p The ’belt-tightening policy’ may do a lot of harm to a country which has for years been run by reformists fairly skilled in demagoguery. The living standards people have become accustomed to over the past forty years or so are going downhill. As we mentioned earlier, the workers, peasants and other social groups have come to realise that the decline in their living and other standards has been caused by the overbearing international financial institutions. Evidence of it were working people’s strikes and marches and recent big demonstrations by high and higher school students who demanded resistance to IMF pressure and urged the government to take charge of financing the education system.

p The economic development model imperialism forced on Costa Rica with consent by the local oligarchy has been an unmitigated flop. The vicepresident of the preceding administration had to admit that 70 per cent of the Costa Ricans live in poverty. Such is the outcome of reformist rule and submission to imperialist orders.

p A meeting of former Costa Rican presidents in August 1987 evinced the anxiety of a wide section of the local bourgeoisie. The participants suggested a meeting in Costa Rica of former Latin American presidents to jointly look for ways to settle the foreign debt problem. The IMF was strongly criticised and charged with appropriating the Costa Rican government’s functions. Ex-president Jose Figueres stressed that Latin Americans should uphold their reputation for being honourable.

p The crisis is affecting the propertied classes as well, though in varying measure. In its March 1987 plenary meeting resolution our party’s CC noted that "there has been a strengthening of the economic and political positions of the bourgeoisie’s financial circles, the most powerful groups of industrial and agro-industrial exporters and trader importers. These circles are the chief motive force behind the present policies and immediate beneficiaries of the financial aid extended by the IDA, IMF and IBRD. Their predominance in the state apparatus, bourgeois political organisations and the mass media has become much more conspicuous than before".^^5^^ The positions of other groups of the bourgeoisie have been slipping. The policies of liberalisation and privatisation of credits, free imports of goods, the depreciation of the currency and the lifting of duties on imported raw materials, parts and equipment have constrained their ability for accumulation of capital.

p By and large the Arias government is following the lead of international imperialist financial institutions, even though they do differ on some matters. The working people are growing more dissatisfied with their falling living standards and mounting social problems. One indication of their increasing social and political awareness is that for over two years now the country’s trade associations and major independent trade unions 35 have been working within a Standing Council of the Working People. Unity processes have been gaining fresh ground among peasant federations and student organisations opposed to the present economic policies.

p The government’s political ambiguity stems from its awareness of, apart from divisions among the capitalists {hemselves, mounting public protest.

An impartial examination of the highly complicated situation in Costa Rica will make it obvious that neither the government nor the bourgeoisie could profit from the instability or the continuation of war in Central America. They hardly relish the prospect of direct US armed intervention in the region. Many local businessmen choose to transfer their capital to other, quieter places abroad. All this is having its effect on the taking of decisions to settle regional conflicts by negotiation.

Our Goal Is Unity

p The March 1987 Plenary Meeting of the Central Committee of the PVP emphasised that today the "prime objective is to mobilise and organise the people. The party must help them gain their own experience of struggle".^^6^^ The meeting stressed that the people have awoken to the need for political action and become increasingly active in this regard. It considered the effect the crisis had not only on the working people but on the middle classes as well. The delegates stressed that "demands by the trade union and peasant movements became more clear and mature, and that the trend towards setting up bodies to coordinate joint action was growing all the time". The meeting’s conclusion was: "Concerted action by the mass organisations should promote the broadest yet political unity with other public quarters.”^^7^^

p Our party is doing a lot for alliance with other left organisations. It recently came up with a proposal of an alliance of trade unions with left policies as well as other mass movements. Our goal is creation of a Coordination Centre for the left forces, and its work should not be necessarily confined to election campaigning. What we want is concerted action in possible elections of deputies to a Central American parliament. There have been consistent attempts at a rapprochement with organisations fighting for peace, sovereignty, and civil rights and freedoms.

p The Communists’ desire for dialogue and cooperation with all progressives in the land was made clear in a Central Committee resolution on the 16th PVP Congress published in late November 1987. It stresses, in part: "The 16th Congress should be used to start a candid, fraternal and serious dialogue with all elements in the popular mpvement. We need to hear them all speak out. We want their experience and ideas to enrich our views, whatever our ideological differences. Young people wishing to come to terms with the knotty problems facing their generation, Christians concerned about social justice, and intellectuals anxious for the future of Costa Rican culture will all be given a fair hearing at our forum. The basic documents to be discussed by the Congress will be published and widely circulated in advance to enable anyone wishing so to make their suggestions on them.”^^8^^

p The Costa Rican Communists are convinced that the unity of all left organisations should be rooted in the following principles: a consensus 36 decision-making, mutual respect and independence of all allied forces, constructive and tolerant discussion of varying views, and a broad openness in discussing and adopting concrete policies. This is what the People’s Vanguard Party essentially thinks of the alliances problem at this grave historic moment.

p The Reagan administration’s continuing truculence towards Nicaragua is a grave threat to peace in Costa Rica and the whole region. The party is bracing itself for the worst.

p Staunchly committed to the popular cause, the People’s Vanguard Party endorses the government’s moves towards settling regional conflicts by negotiation and is simultaneously resisting its treacherous and anti-popular economic line. Our efforts to protect the rights and living standards of the working people enable us to broaden our contacts with them. It is only with unqualified support by the working people that we can hope to do our level best to safeguard peace and stave off imperialist interference in Central America.

p  ^^1^^ This is how the International Bank for Reconstruction and Development is commonly known.—• Ed.

p ^^2^^ Trabajo, San Jose, No. 1, 1987, p. 6.

p  ^^1^^ At the time President Reagan’s national security adviser. Became US Defense Secretary in November 1987.—Ed.

p  ^^4^^ In per capita terms every Costa Rican owes some $2,000 to foreign creditors.

p  ^^5^^ Trabajo, No. 1, 1987, p. 11.

p ^^*^^ Ibid., pp. 15-16.  ^^7^^ Ibid., p. 13.

^^*^^ Adelante, San Jose, November 19-25, 1987.