1.2.5.- Nicaragua

 Figure 1.6 Country map Nicaragua

1.2.5.1.- General facts

Official name: Republic of Nicaragua           

Capital: Managua

Name
The country's name is derived from ‘Nicarao’, the name of the Nahuatl-speaking tribe which inhabited the shores of Lago de Nicaragua before the Spanish conquest, and the Spanish word ‘Agua’, meaning water, due to the presence of large lakes, lagoons and rivers in the region.

Time
Six hours behind Greenwich Mean Time (GMT -6)
The Netherlands: daylight saving time = GMT +2, winter-time = GMT +1

1.2.5.2.- Geography

Location
Nicaragua is located on the Central American isthmus and lies between 10°30'-15°00' northern latitude and 83°00'-87°45'western longitude.

Borders
Honduras (922 km) to the northwest, Costa Rica (309 km) to the south, the Pacific Ocean to the west, and the Caribbean Sea to the east.

Area
129,494 km2 (120,254 km2 of land and 9,240 km2 of water). Nicaragua is the largest country in Central America.

Altitude
The lowest altitude in the country is the Pacific Ocean at sea level; the highest point is Mogoton, a volcanic mountain, with an elevation of 2,438m. The capital Managua has an altitude of 83m.

Characterization
Nicaragua can be divided in three topographical regions: The Pacific lowlands, the central highlands and the Caribbean lowlands.
The Pacific lowlands extend about 75 kilometres inland from the Pacific coast. It is the most populous area, with over half of the nation's population, and contains the capital city of Managua. Most of the area is flat, except for a line of young volcanoes, running between the Golfo de Fonseca and Lago de Nicaragua. The area contains the largest freshwater lakes in Central America: Lago de Managua and Lago de Nicaragua. The valley of the Río San Juan forms a natural passageway close to sea level across the Nicaraguan isthmus from the Caribbean Sea to Lago de Nicaragua.
The triangular area known as the central highlands lies northeast and east of the Pacific lowlands. This rugged mountain terrain is composed of mountain ridges of 900 to 1,800m high and a mixed forest alternating with deep valleys that drain primarily toward the Caribbean. The relatively dry western slopes of the central highlands, protected by the ridges of the highlands from the moist winds of the Caribbean, have drawn farmers from the Pacific region since colonial times and are now well inhabited. The eastern slopes of the highlands are covered with rain forests and are lightly populated with pioneer agriculturalists and small communities of indigenous people. About a quarter of the country's agriculture takes place in the central highlands, with coffee grown on the higher slopes.
The eastern Caribbean lowlands of Nicaragua form the extensive (occupying more than 50 percent of national territory) lowland area known as the Costa de Mosquitos and is very sparsely populated. Nicaragua's ‘Bosawas Biosphere Reserve’ is located here, protecting a large rainforest, occupying almost seven percent of the country's area.

1.2.5.3.- Recent history

At the turn of the 1960s, a rebel movement called the Frente Sandinista de Liberación Nacional (FSLN), greatly strengthened by the Cuban Revolution and operating from Costa Rica, began a guerrilla campaign. With aid from the United States, the Somoza brothers succeeded in defeating the guerrillas several times, but finally the FSLN overthrew the Somozas after 17 years, in 1979. The revolutionary government began a program of agrarian reform, nationalization of industry and massive health and literacy schemes along semi-socialist lines. However, growing state control of production and distribution generated opposition. Nicaragua became a stage for Cold War, with US-backed Contras fighting the socialist government. Contra aid, including trade and aid embargoes and diplomatic pressure to weaken the Nicaraguan government, was one of the most controversial policies adopted by the U.S. administration under the then president, Ronald Reagan. Contra aid finally lost support following the Iran-Contra arms scandal and in the wake of the 1987 peace plan devised by the then president of Costa Rica, Óscar Arias. It was signed by the leaders of all five Central American republics as part of a move towards ending the bloody political and military conflicts that had plagued the region since the late 1970s. The FSLN was confirmed in power by election in 1984, when Daniel Ortega was elected president.
In 1990 the Unión Nacional Opositora (UNO) alliance representing 14 of the 21 opposition parties in Nicaragua, led by Violeta Barrios de Chamorro, widow of the newspaper editor Pedro Joaquín Chamorro (who was killed by the Somoza regime), defeated Daniel Ortega during the presidential elections.  Chamorro initially secured the demobilisation of the Contras, but in 1991 many former Contras, unhappy that they had failed to obtain the land to which they felt that they were entitled, started to form armed bands known as recontras. In the north of the country in particular there were conflicts between the recontras, the recompas (demobilised Sandinista soldiers) and the government. In 1993 a new amnesty was granted to all recontras and recompas who had given up their arms and in 1997 the matter was solved, as all groups had lay down their arms.

In 1997 Ortega was defeated by Arnoldo Alemán Lacayo of the Partido Liberal Constitucionalista (PLC), previously the mayor of the capital, Managua, and most recently in 2001 by Alemán’s vice-president, Enrique Bolanos Geyer. The Bolanos government work was initially hampered by a dispute over the fate of his predecessor Alemán. The former president had been arraigned for corruption during his term of office, but was protected by his parliamentary immunity. His immunity was eventually removed in 2002, after which Alemán was convicted and sentenced to 20 years imprisonment.
In November 2006 the presidential election was won by Daniel Ortega, bringing him back into power after 16 years of opposition. The FSLN and the PLC are expected to ratify constitutional reforms by the end of 2007 (together they have the necessary two-thirds majority needed to pass constitutional reforms) and to approve them a second time as required by law in early 2008.
The first 8 months of Ortega’s second term as the country’s president is characterized by uncertainty and instability. Efforts are made to enforce collaboration with allied left wing governments in Venezuela, Brazil, Iran and others. It is too early to make final judgements at this moment but Foreign Direct Investment is decreasing and the great number of changes which have taken place in Ministries and other public organizations do not create a positive and stable climate for doing business.

1.2.5.4.- Social aspects

Population

Development
Human Development Index (HDI):  0.698 (rank 112) (2006)
Human Poverty Index (HPI-1):  18.0% (rank 40) (2006) (See Appendix C, Table c.1)

Working Population
Unemployment rate : 3.8% (2006, it should be noted that this is an official figure but unlikely to be realistic)
Composition : 30.5% agriculture; 17.3% industry, 52.2% services (2003 est.)

Immigration / emigration
Emigration to Costa Rica is known to be high, but precise statistics are lacking.

Social stability
Mass demonstrations, and both civil and labour unrest, take place occasionally, usually in protest at the national government and poor living conditions. These activities may interrupt business operations, as roadblocks prevent the movement of people and goods. However, activists do not generally target foreign businesses.

Bilingualism
There are few English speaking professionals and most of them have been able to go to private schools. English taught at public schools is not considered to be sufficient.

1.2.5.5.- Safety

Poor law enforcement and high poverty rates make crime a growing problem in Nicaraguan urban areas. Although crime is not a major concern for business or foreign enterprises, its existence poses a threat to personnel and property. The most commonly occurring crimes are robbery and pick-pocketing, sometimes employing violence, and burglary. A hangover of the violence of the civil conflict in the 1980s is the frequent use of guns by criminals of all types. Although not as common as in most other Central American countries, gang activity and car-jacking are on the increase. Gang violence tends to be confined to poor neighbourhoods. Nevertheless, crime rates are still considerably lower than in other Central American countries.
There is a small amount of organised crime, mainly centred on the trafficking of arms, people and drugs. It poses little risk to foreign business. Kidnapping tends to be perpetrated in rural areas against wealthy landowners and their families. It has rarely affected foreigners.

1.2.5.6.- Political aspects

Form of state
Presidential democracy with National Assembly

Constitution
Nicaragua’s current constitution dates from 1987 and was the country’s first since the overthrow of the Somoza regime. Reforms to reduce the power of the executive branch and to shift more responsibility to the National Assembly were passed in 1995. Reforms in 2000 enlarged the Supreme Court and electoral council. The FSLN and the PLC are expected to ratify further constitutional reforms by the end of 2007.

Executive power
The president is head of state. Directly elected by adult suffrage for a five-year term, he is head of government, commander-in-chief of the armed forces and has the power to appoint ministers and vice-ministers. Furthermore, the president appoints the head of the Banco Central de Nicaragua (BCN, the Central Bank), which is not an autonomous institution.

Legislative power
The legislature, a 92-seat unicameral National Assembly, is directly elected by adult suffrage for a period of five years. Of those, 90 are elected by proportional representation (20 serve nationally and 70 represent the provinces). The two remaining seats are given to the outgoing president and the runner-up in the presidential election.

Judiciary power
The Supreme Court, at the apex of a subordinate court system, is an independent branch of state. Its 16 members are selected for five years by the National Assembly from lists submitted by the president and the parties in the legislature. The magistrates elect the court’s president and vice-president from within their own ranks. The court appoints judges to the lower ranks.
Denominations have always been political and judicial independence from executive and legislative pressure is slight. Public confidence in the fairness of judicial processes is extremely low. Corruption and nepotism in the judicial branch put foreign investors in sharp disadvantage in any lawsuit. Legal security for business in general is among the lowest in Latin America.

Main political parties
Government: Frente Sandinista de Liberación Nacional (FSLN, the Sandinistas)
Opposition: Partido Liberal Constitucionalista (PLC); Alianza Liberal Nicaragüense (ALN, formed by ex-PLC members, the Partido Conservador (PC), and the Partido de la Resistencia Nicaragüense, PRN); Movimiento Renovador Sandinista (MRS, formed by ex-FSLN members).

Political stability
Political stability and absence of violence indicator (PV): -0.16 (2005)
(See Appendix A, table a.1)

The risk of armed conflict in Nicaragua is small, and poses virtually no threat to business. Given the level of rural poverty and uncertainty over land rights, the resurgence of armed bands formed by ex-soldiers from the contra war, either Contras or Sandinistas, remains a possibility, but should not affect business. Violent conflict is currently limited to localised land disputes and occasional social protest in the cities. Conflicts on land disputes spurred by the government are increasing. In recent months, various foreign companies have been facing legal problems with the FSLN government concerning their legibility to execute their business or due to questions raised on tax related issues.
Nicaragua has a long-running maritime boundary dispute with neighbouring Honduras, but the two countries are seeking an amicable solution through arbitration by the International Court of Justice (ICJ) in The Hague. Bilateral relations with Costa Rica have been tense since 2005, when Costa Rica took the issue of navigation rights on the San Juan river to the ICJ, and its legislature passed a law aimed at controlling flows of migrant workers from Nicaragua.

Effectiveness
Government effectiveness indicator (GE) : -0.78 (2005)
Regulatory quality indicator (RQ) : -0.31(2005)
(See Appendix A, table a.2)

Corruption
Control of corruption indicator (CC) :  -0.62 (2005)
Corruption Perception index (CPI) :  2.6 (rank 111 ) (2006)
(See Appendix A, table a.3 and Appendix B, table b.1)

1.2.5.7.- Economic aspects

Currency
The national currency in Nicaragua is the Córdoba (C), for exchange rate see table 1.13.

Developments
Nicaragua is an impoverished country still struggling to recover from a political and economic disturbance that destroyed infrastructure, reduced productivity and increased poverty levels. Unfortunately, unlike in other Central American countries nowadays, political stability still is the main issue of concern for foreign investors.
Agriculture remains an important sector, contributing 17.2% to the GDP (2006), and is by far the country’s largest employer, accounting for around 40% of all employment.
The general assumption is that the newly installed government will require about one year to show what future years will look like and in what direction the Nicaraguan economy will be moving.

Foreign investment
Over the past decade, Nicaragua has made significant progress in terms of establishing the necessary conditions for securing an increased flow of FDI. In effect, the previous government headed by president Bolaños, implemented a number of measures which enabled the improvement of investment conditions in the country. The adoption of sound macroeconomic policies, liberalization policies, the opening up of the country’s economy to foreign capital and active promotion of Nicaragua’s investment promotion agency ProNicaragua, all contributed to improving FDI flows. As a result, for the period 2005-2006, FDI inward flows reached on average US$ 265.5 million, a considerable increase if compared to average US$ 214.4 million for the period 2000-2004 and average US$ 146.9 million for the period 1994-1999.
Since 1997, an influx of foreign direct investment (FDI) has boosted private investment spending, mainly concentrated in mobile telecommunications, maquilla operations, and tourist projects. In the last years, about 50% of the FDI went to the communications sector, 30% to trade including tourism and 10% to the energy sector, followed by the sectors of construction, agro-industry, mining and fisheries.
In spite of the considerably open nature of the Nicaraguan economy for FDI, there are a number of important obstacles and certain restrictions that hinder an increased investment inflow and do not allow the country to reach its full potential. The most important obstacles at present are: the weak, politicized and corrupt judicial system, the low credibility of state institutions, a lack of legal security which amongst other effects leads to an inconsistent enforcement of contracts, the inadequate protection of property rights and weakness of land tenure, a cumbersome and unstable regulatory framework, poor transport and infrastructure, inadequate and erratic supplies of electricity and water, and the new government’s populist stance. Due to above mentioned factors spurred by the recent change of government; FDI tends to decrease in recent months.

Free trade zones
At the moment there are 11 Free Trade Zones (‘Zona Franca’) located in Nicaragua:

OPINSA – Siglo XXI, UNISEBACO, S.A., ZIP Argeñal, Zona Franca Granada, Zona Franca Index, Zona Franca Industrial Las Mercedes, Zona Franca Mateare, Zona Franca San Cristobal, Zona Franca San Marcos, Zona Franca Saratoga y Zona Franca Senika.

(For more information: http://zonasfrancas.net/zonas.php)

DR-CAFTA
The Free Trade Agreement (DR-CAFTA) is expected to provide an opportunity for Nicaragua to attract investment, create jobs, and deepen economic development. Energy shortages, however, are still a serious bottleneck to growth.
With the assistance of trade agreements and other efforts, the export of Nicaraguan products and raw materials is likely to improve in the future. Along with the increase in exports from Nicaragua, will also hopefully come the improvement of the economy in general and a decrease in unemployment. All signs are positive but politics will decide in what direction future trade will be developing.

Regional development
The cultivation of basic food crops is concentrated in the central and Pacific coast regions, while coffee is grown in the uplands north of Matagalpa. Livestock farming is most prevalent in Boaco and Chontales and in the southern provinces near the border with Costa Rica. Commerce and manufacturing are concentrated in the capital, Managua, and in the cities of Matagalpa, Chinandega, León, Masaya and Estelí.
Although poverty levels declined in the Pacific region in the 1990s, they increased on the Caribbean coast. Growth is likely to have been well below the national average on the Caribbean coast as the area’s traditional mining and timber industries are in decline. Immigration has slowly altered the Caribbean region’s ethnic balance, putting pressure on the land base and inducing tension over land titles and demarcation.

1.2.5.8.- Fiscal aspects

Tax system
Nicaragua recently passed a Fiscal Equity Act to make the tax system simpler and fairer for citizens and friendlier to exporters.
The new law raised the corporate income tax rate to 30 percent from 25 percent and restricted some accounting and financial benefits available to businesses and their owners. It also eliminated the so-called “zero rate” on the value-added tax for domestic sales of certain goods. Businesses that used this “zero rate” not only avoided paying VAT but also claimed credit for VAT paid on their inputs, a treatment that lowered the tax take significantly and spawned opportunities for corruption. The Fiscal Equity Act also stiffened some penalties for tax violations. And, in a key step, it earmarked 3 percent of annual gross revenues for the tax and customs services when collections exceed 2.3 percent of GDP, compared to 1.7 percent at present.
The reform process received a boost in November 2003 with the approval of a $25 million IDB policy-based loan to consolidate the changes. While Nicaraguan authorities acknowledge that the changes will not solve all of their country’s problems, they also point out that the reform was a considerable achievement in light of the political turmoil and the economic hardship Nicaragua has endured.

1.2.5.9.- Invesment capital

Availability and capital guarantees
Agricultural loans are hard to obtain in Nicaragua. As the sector is mainly focused on production for the local market, it is not perceived as a priority market for banks. Guarantees are required even for small loans and interest rates for local currency loans are high.
The government has a strong focus on the development of small and medium size companies but does not really support credit lines for international operating companies intending to invest in Nicaragua. 

Interest rates
Lending rate: 12.1%
Deposit rate: 4.0% (2005)

1.2.5.10.- Infraestructure and communication

Roads
Internal transport relies almost entirely on the road network. Although the road network has recovered from wartime damage, it was only slightly more extensive in 2005 than before the revolution. Of a total of 19,137 km of roads, only 6,386 km are all-weather roads and a merely 2,033 km are paved. By contrast, motor vehicle traffic has grown rapidly, with passenger cars virtually doubling in number between 1996 and 2002. Nevertheless, traffic jams are only a minor problem in the capital Managua.
The Pan-American Highway crosses the country from north to south. It is the main road link with other countries in Central America. Improvements to major roads were made in the 1990s and again under the Bolaños administration. The basic network between major cities can be qualified as good. Secondary and rural roads remain in a poor condition.

Airports
The country’s main international airport, Managua International Airport, handles most air-passenger traffic. Cargo freight is limited because of the lack of carriers but also limited facilities at the airport. The Atlantic coastal region’s three airports are able to accommodate international cargo flights.

Harbours
There are six harbours in Nicaragua, most of which cannot handle large-scale cargo. The National Port Authority (Empresa Portuaria Nacional) manages all of these ports. The most important port is the Pacific port of Corinto. Recent investments have rehabilitated the Pacific port of Corinto, but it still cannot handle enough volume to attract major shipping lines to use it as a port of call. Rumours keep going around about possible investments in the realization of a harbor on the Caribbean coast supported by the Venezuelan government, but nothing has been decided yet. If so, chances of Nicaragua on the international market will increase significantly. Seafreight out of Nicaragua is considered to be the major restraint to develop export oriented agriculture in Nicaragua, after the insecure political situation. Low value products which could be easily produced in Nicaragua, loose competitiveness because of extra transport costs. For international sea freight, The Pan-American Highway gives Nicaragua access to seaports on the Atlantic Coast of the isthmus, principally Puerto Cortés in Honduras and Puerto Limón in Costa Rica. As paved roads linking the Pacific and the Atlantic coasts are still lacking, most of the country’s agricultural exports must be shipped through these ports at a significant cost.

Railroads
The railway network was closed in 1994 after falling into disrepair. There are some signs that a part of the still existing system will be reinstalled but it is unlikely to become operational on the short term.

Telephone
Telephone mainlines : 40 /1,000 people (2006)
Cellular subscribers : 137 /1,000 people (2006)
The country's telephone system is operated by the former state-owned telephone company, ENITEL.
In 2003, there were only 224,000 installed fixed lines out of a total population of 5.5 million, resulting in a telephone density of 4 per 100 people. Most developed destinations within Nicaragua will have land line connections, however in certain areas, particularly in rural settlements, there are no telephone lines.
The number of cellular phones has quickly surpassed fixed lines, with about 500,000 in use. ENITEL provides all fixed telephone services and competes with two private companies in wireless service. The country’s telecom system is being upgraded through the installation of fiber optic technology, and costs are therefore expected to decline.     
The best cellular coverage is in and around major cities, but reception is available throughout the country.

Internet
Internet users: 23 /1,000 people (2006). A total of 25 internet providers operate in Nicaragua, but private use of e-mail and the internet remains low due to high costs of the service relative to local income. Quality of services, especially in the urban areas, is rather good.

Electricity
Private suppliers generate the majority of electric energy in Nicaragua, with the Empresa Nicaraguense de Electricidad (Enel, state-owned electricity company) playing a diminishing role after undergoing partial privatisation during 1998-2003 (about 18% of total output). Enel’s distribution network was privatised in 2000. Small investments have been made to improve the distribution systems, which still loses nearly 30% of all power generated. Two of Enel’s generating plants were sold in 2002 and 2003. The Spanish company FENOSA has taken over part of the electricity distribution but is facing increasing conflicts with the Ortega government which aims at collaboration with countries like Venezuela and Iran. These forms of collaboration have not led to a significant improvement of the supply of energy. The ‘apagones’ (energy cuts) remain present and have even increased. The doors of many public institutes have been closed after lunch hour for many months in a row now.
About 80% of the country’s electricity need is dependent on oil-fired thermal plants. The remaining 20% is generated by hydroelectric installations in the north (Jinotega region) and a geothermal plant at the Momotombo volcano.

1.2.5.11.- International trade agreements

Multilateral Agreements

Customs Union

Free Trade Agreements

Partial Preferential Agreements

Due to the recent installation of the Ortega government, additional agreements have been signed like the ALBA agreement. ALBA involves Cuba, Bolivia and Venezuela through cooperation pacts covering a wide range of areas such as energy, health and culture. Nicaragua officially joined in January 2007, followed by Dominica, Saint Vincent and Antigua. Besides ALBA, collaboration has been negotiated with Iran and recently with Brazil. Although trade with most of the above mentioned countries is limited, Nicaragua is leading the way in Central America for trade agreements. No other regional country can count with a similar number of international trade agreements.
(For more information: http://www.sice.oas.org/ctyindex/NIC/NICagreements_e.asp)

1.2.5.12.- Labour

Availability
Nicaragua has low labour costs and there is plenty of labour available. Migration is still an important issue due to the lack of jobs. The availability of labour is considered to be the strongest card Nicaragua can play in the development of its agricultural sector. It is available and very affordable.

Quality
Underfunded and badly managed, Nicaragua’s basic education system is both fragmented and inadequate in coverage. Around 35% of the children aged 3-18 do not even take part in the system altogether, there is a deficiency in well-trained teachers and rural poverty encourages early school-leaving.
The secondary curriculum is heavily oriented towards preparation for university, however prepares students poorly for higher learning. Reflecting a cultural bias towards manual labour, formal technical and vocational education is scarce, although supply is now increasing.
The long-term Plan Nacional de Educación (National Education Plan) was drafted in 2000 in an attempt to address the system’s lack of relevance to changing economic circumstances. New priorities drafted in 2003 stressed the need to improve basic skills at primary level, increase teacher quality and motivation across the system, and expand technical training for youth. The government of the president, Daniel Ortega, who took over power in January 2007, is attempting to expand primary enrolments and has scrapped a system of school autonomy.

Minimum wages

Labour unions
The National Workers Front or FNT is a Sandinista umbrella group of eight labour unions including - Farm Workers Association or ATC, Health Workers Federation or FETASALUD, Heroes and Martyrs Confederation of Professional Associations or CONAPRO, National Association of Educators of Nicaragua or ANDEN, National Union of Employees or UNE, National Union of Farmers and Ranchers or UNAG, Sandinista Workers Central or CST, and Union of Journalists of Nicaragua or UPN;
Permanent Congress of Workers or CPT is an umbrella group of four non-Sandinista labour unions including - Autonomous Nicaraguan Workers Central or CTN-A, Confederation of Labour Unification or CUS, Independent General Confederation of Labour or CGT-I, and Labour Action and Unity Central or CAUS; Nicaraguan Workers' Central or CTN is an independent labour union; Superior Council of Private Enterprise or COSEP is a confederation of business groups.

Public holiday
January 1st, Maundy Thursday, Good Friday, May 1st (Labour Day), July 19th (1979 revolution), September 14th (Battle of San Jacinto), September 15th (Independence Day), November 2nd (All Souls. Day), December 8th and 25th.

1.2.5.13.- Climate and natural resources

Climate
Temperature varies little with the seasons in Nicaragua and is largely a function of elevation. The tierra caliente, or the "hot land," is characteristic of the foothills and lowlands from sea level to about 750 meters of elevation. Here, daytime temperatures average 30°C to 35°C, and night temperatures drop to 21°C to 24°C most of the year. The tierra templada, or the "temperate land," is characteristic for most of the central highlands, where elevations range between 750 and 1,600 meters. Here, daytime temperatures are mild (24°C to 27°C), and nights are cool (15°C to 21°C). Tierra fría, the "cold land," at elevations above 1,600 meters, is found only on and near the highest peaks of the central highlands. Daytime averages in this region are 20°C to 24°C, with night time lows below 15°C. Rainfall varies greatly in Nicaragua. The Caribbean lowlands are the wettest section of Central America, receiving between 2,500 and 6,500 millimetres of rain annually. Mean annual precipitation for the rift valley and western slopes of the highlands ranges from 1,000 to 1,500 millimetres. Rainfall is seasonal, May through October is the rainy season, and December through April is the dry period.

Average climate of Tegucigalpa
Hottest month : June (average 23-32°C)
Coldest months : December-January (average 19-29°C)
Arable and permanent crop land as percentage of land area is 21% (source: http://www.fao.org/trade/docs/FAO-Small.htm). Agricultural land is available for various crops on altitudes between sea level and approximately 1,200 meters. Land can be considered to be cheap and available in various altitudes and locations. Water is available as well. Property rights are weak and a major obstacle in doing business in Nicaragua. 

1.2.5.14.- Subsidies and development programs

Nicaragua has a tradition in development aid which started with the Sandinist revolution in the eighties. Support entered the country from left wing governments as well as left wing parties in Western countries. Contacts between countries have remained and aid organisations have given follow up to the first initiatives taken in the seventies.
Besides development aid organisations, city links can play an important role in Nicaragua. A total of 16 Dutch cities have a partner city in Nicaragua, organized by the LBSNN in Amsterdam (Landelijk Beraad Stedenbanden Nederland Nicaragua). Various city links intend to create economic development focussing on non-traditional crops. Support can be expected from (some of) these city links in case Dutch investment are being done. On a national level, the Dutch EVD has programs like PSOM, PESP and the Match Making Facility available for Nicaragua (www.evd.nl).

1.2.6.15.- Agricultural sector organization and trade promotion

Ministry of Agriculture (MAGFOR)
The principal public body involved in agricultural and rural development are the Ministry of Agriculture and Livestock (MAGFOR).The vision of the Ministry of Agriculture and Forestry is ‘being an effective and efficient supplier of services to producers in the agricultural and forestry sector in Nicaragua, providing effective politics, strategies, rules and programs, in order to be able to compete on national and international markets’. In practice, the Ministry is considered to be working in an acceptable way, taking into consideration the very limited assets to fulfil their obligations. 

Agricultural organization and trade promotion
Producers and exporters in Nicaragua are united in ‘the Nicaraguan Association of Producers and Exporters (APEN)’. APEN considers itself the leading organizations for Nicaraguan exporters with the aim to transform Nicaragua into a known export country. Their mission is ‘to support producers and exporters with services on a production level and on a logistic level in order to improve competitiveness in regional and international markets’.
APEN has an up to date list on the internet of all producers and exporters of agricultural products in Nicaragua. Every three months, APEN publishes a specialist journal called ‘Nicaragua exportando’ for those interested in the production and commercialization of export products in general. (http://www.apen.org.ni).
NICAEXPORT is Nicaragua’s Export Promotion Centre. Their activities and services are financed by international cooperation agencies and the Nicaraguan Government.
Its Board of Directors mainly consists of representatives from the private sector: the Higher Council of Private Enterprise (COSEP), the Nicaraguan Association of Producers and Exporters (APEN), the Nicaraguan Association of Industrial Exporters (ANIEX), the American-Nicaraguan Chamber of Commerce (AMCHAM), the Nicaraguan Private Banks Association (ASOBANP), the Ministry of Development, Industry and Commerce (MIFIC), the Nicaraguan Investment Fund (FNI), and the Nicaraguan Chamber of Micro, Small, and Medium Scale Tourism Companies (CANTUR).
El ‘Centro de Exportaciones e Inversiones’ (CEI) is responsible for the interests of Nicaraguan exports. The mission of CEI, having NICAEXPORT as its trademark, is described as: ‘To promote the growth of exports, thereby contributing to Nicaragua’s poverty relief and economic and social development’. Their vision is to convert NICAEXPORT into a world-class Export Promotion Mark by improving the competitiveness of Nicaragua’s export sector with the aim to obtain a successful position in the foreign trade market.
(http://www.nicaexport.com.ni/index_eng.php).