Forgotten world (42): Nicaragua
Nicaragua was ruled by the Somoza family with US backing between 1937 and the Sandinista revolution in 1979. By 1990, the Sandinistas were defeated in elections held as part of a peace agreement with the US-sponsored counter-revolutionaries known as the Contras.
Today Nicaragua is the second poorest country in Latin America. The average annual income is $750 (£398), around 75% of the population lives on less than $2 a day, unemployment is close to 50%, and income inequality is pronounced. Although nearly 80% of its foreign debts were cancelled, its internal debt is more than $6.5bn.
The country has faced devastating natural disasters and massive political corruption, but has made great strides to improve health and education standards. Disasters, such as Hurricane Mitch, and population growth have undercut economic gains: according to the EU, more people are living in poverty now than in 1993.
This has led to the astonishing idea [more information here] that Nicaragua should build a rival to the Panama Canal enabling huge container ships to pass between the Pacific and Atlantic Oceans. This mega-engineering project would cost some $20 billion and take 10 years to complete. Meanwhile Panama has voted in a referendum to widen its canal [more information here].
November 7th, 2006 at 9:31 am
The income inequality within Nicaragua is regional, with the western area including the capital, Managua, being relatively much better off than the eastern area including the Mosquito coast.
The Peace and Hope Trust, http://www.peaceandhope.org/ is working to relieve the situation in the east of the country, including a very exciting project to enable communication between the two sides of the country by hovercraft. My daughter went out there last summer and worked with education projects in Bluefields, amongst the rubbish dump people, and also taking medical supplies into the remote areas.