Susan Bursey-Wyss
Democracy, like profitably, is a process. Nicaragua is now moving toward a market economy, and its growth offers opportunity for foreign investors and companies.While the civil war of the last decade still looms large in the minds of the International community, Nicaragua is a country that has enjoyed past business success and is beginning to harness its future potential. The country is rich in natural resources, boasts a large and ready labor force and welcomes new business. The 12-year civil war between the Sandinista socialist government and conservative factions tore the country apart. The centralized state planned economy that replaced the vibrant market economy of the 1970s brought product;on to a virtual standstill.
But with 1990's return to democracy, the government embarked on a three-point plan: pacification, stabilization and economic growth. Nicaragua is well on its way to accomplishing all of that in the four short years since freedom returned to the country.
With the end of the civil war, Nicaraguans elected President Violeta Barrios de Chamorro in hope of peace and renewed prosperity. The Contras traded in their weapons for land, fertilizer, roofing materials and simple farming tools, while former members of the Sandinista army, which was reduced from 96,000 to 23,000, also received land and tools to encourage a return to farming and ranching. As in the United States in the years after the Civil War, not everyone is perfectly content, but the process of democratization and pacification continues.
For example, in this stabilized environment, inflation is no longer the dominant topic of conversation in Nicaragua. Since March of 1991 the country has enjoyed a stable currency, single digit inflation and monetary equilib rium. Nine private banks channel funds into industry and agriculture while paying good rates on deposits. The third part of the plan, economic growth, continues to be the greatest challenge for the government.
In the last few years Nicaragua has seen non-traditional exports grow, coffee prices rise, cattle production increase and the state privatize program near completion. Those factors seem to suggest that constant economic growth can be expected. Dr. Francisco Mayorga, former president of Central Bank and an investment consultant to some of the largest companies in Nicaragua, predicts 2.5-3 percent growth in the economy of 1994. He is quick to point out that Nicaragua has moved rapidly to establis h a market economy.
The country's privatization plan is much further along than any other in the newly emerging democracies of Eastern Europe, Mayorga say CENTRAL AMERICAN'S LARGEST COUNTRY OFFERS MANY BUSINESS ADVANTAGES Nicaragua, the heartland of Central America, is the largest county in the region and is blessed by the most arable soil, the best coast lines on the Pacific and Atlantic, a stable currency, low inflation, and an openness that causes any visitor immediatel y feel welcome. Its abundant and easily available work force remembers the prosperity of the '70s and is anxious to recreate an environment that will generate a better standard of living.
Indeed, Nicaraguans are rolling out the welcome mat for foreign business. Investors interested in Nicaragua will find immediate help at the Center for the Promotion of Exports and Investment (CEI), where bilingual professionals offer services free of char ge for investors or exporters. Support is provided in analyzing market needs, assisting in identifying potential joint-venture partners and guiding new investors through the forms and paperwork necessary to begin doing business. Laws designed to encourage investment and exports are some of the best in the region. For example, they allow 100 percent foreign ownership, tax-exempt status for free zone manufacturing, full repatriation of profits and easy access to dollars. Agribusine ss, manufacturing, tourism and some high-tech industry are now successfully developing in Nicaragua.
Nicaragua's Minister of Economy, Pablo Pereira, sees clear indications that the country will be entering into an agricultural boom in the next two years, creating strong demand for all agricultural services, agro-industrial development, intensive work-force training, transportation and international marketing. Domestic demand will require increased production of traditional crops.
Copywrite 1996. LatinWorld Magazine Content Is Produced By Netpoint Communications, producers of the LatinWorld Directory. All original articles and photographs published in LatinWorld Magazine are protected by international copyright law. Reproduction, in whole or in part without prior written permission, is strictly prohi bited. Miami, Florida, USA. 
CONTENTS | PAGE BACK | NEXT PAGE | DIRECTORY
FOR ADVERTISING INFORMATION
Click Here