Nicaragua pre release

Question 1

Economic overview of Nicaragua’s development

Answer 1

Economically dependant on export of low value primary products (Textiles and
agriculture combined account for nearly 50% of exports)

• Massive debt relief by the International
Development Association

• Poverty remains high and the second poorest in the Western Hemisphere, has
widespread underemployment and poverty.

• The Dominican Republic-Central America-United States Free Trade Agreement
(CAFTA-DR) has been in effect since April 2006 and has expanded export
opportunities for many Nicaraguan agricultural and manufactured goods.

Question 2

Nicaragua development achievements

Answer 2

Improvements in infrastructure and sanitation

• Improved access to drinking water, sanitations and ameliorated its life
expectancy, infant and child mortality and immunization rates

• World Bank board of directors approved US$ 96.8 million credit to help improve
road systems for nearly 550,000 residents of urban and rural areas of the country
(March, 2017)

Question 3

Challenges that exist in Nicaragua

Answer 3

High levels of inequality

• Poverty remains high
• High levels of public debt (350% of GDP in 1990´s)
• Indigenous groups still lack basic healthcare services
• Low literacy rates and school enrolment
• Poor infrastructure, particularly in the more remote areas

Question 4

Social factors for why challenges in Nicaragua exist

Answer 4

-Roman Catholic religion, non-existent sex education and rural culture prevents
people, especially adolescents, accessing to contraception. Creates
perpetuating cycle of poverty.

• Reliance on low value added exports

Question 5

Poltical factors for why challenges in Nicaragua exist

Answer 5

• Poor social funding, for example whilst primary education is free and
compulsory, schools and students must pay for their own materials. Only 72% of
children finished primary school in 2009

• Corruption and the erosion of democracy under Ortega`s leadership
(appointment of his wife as Vice-President and prominent roles for his son and
daughter widely thought to be a move to attempt to secure a dynastic
succession similar to the Somoza family dictatorship