Nicaraguan Economy Still in Trouble

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Poverty-stricken Nicaragua

By: Abby Belongy

Not much news about Nicaragua reaches the rest of the world.  In recent years, Haiti has become a popular news topic due to its natural disasters and poverty.  Haiti is the poorest country in the Western Hemisphere, but Nicaragua is right behind it in second.  The CIA World Factbook has Nicaraguans earning a mere $4,500 per capita with nearly half the nation (42.5%) below the poverty line.  In recent years, the country has relied on the IMF and other outside sources to help manage debt, and the government is looking for that support once again.

On a positive note, The Nicaragua Dispatch reported in July that Nicaragua increased its foreign-direct investment by 33%.  Venezuela invested the most, and most countries opted to invest in areas such as industry, trade, and energy.

Overall, however, Zakaria’s Post-American World never held true for Nicaragua.  The “rise of the rest” did not include the rise of one the west’s poorest nation.  While the country is “developing,” a Sandinista-run government and lack of resources impedes globalization through the very low percentage of Nicaraguans with Internet access, according to the Nicaraguan Dispatch. In “Broken BRICS,” Sharma points out that only 35 nations in the world can be considered developed, and of those emerging markets, Nicaragua is very low on the list.  If Nicaragua truly wants to globalize and reach the rest of the world, it has a lot of work to do.

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