Nicaragua

On July 14, 2005 the MCC signed a five-year, $175 million compact with Nicaragua. The compact focuses on strengthening property rights, improving access to markets for rural communities, and increasing wages and profits from farming in select regions.

MCA Status

Nicaragua's compact entered-into-force on May 26, 2006. The compact supports those living in the León and Chinandega region by significantly increasing incomes of rural farmers and entrepreneurs. The investments in three strategic projects will reduce transportation costs, improve access to markets, strengthen property rights, increase investments, and raise incomes for farms and rural businesses. 

On July 3, 2009 the MCC terminated funding under the compact in response to a pattern of actions by the government of Nicaragua that were inconsistent with the criteria used by the MCC to determine eligibility for assistance. This stems from claims of fradulent municipal elections in November 2008. Funding was terminated for all activities in the Property Regularization Project and for activities in the Transportation Project, including upgrading a major stretch of the Pacific Corridor highway, which were not already under contract. Due to that partial termination, the MCC has reduced the amount of MCC funding available to Nicaragua from $175 million to $113.5 million. 

Country Compact

Nicaragua MCC compact
NIcaragua's Monitoring and Evaluation plan
MCA-Nicaragua website

Nicaragua's Poverty Reduction Strategy Paper (PRSP) enumerates four pillars of its policy agenda: broad-based economic growth and structural reform, increased investment in human capital, stronger protections for vulnerable groups, and improved institutions and governance.

Nicaragua's PRSP

Country Eligibility

In the FY2011 selection process, Nicaragua scored above the median on five of six Ruling Justly indicators, four of five Investing in People indicators, and five of six Economic Freedom indicators. Nicaragua is a low income country (LIC).

Review Nicaragua's performance on the FY2011 selection indicators 

Review Nicaragua's performance on the FY2010 selection indicators 

Review Nicaragua's performance on the FY2009 selection indicators.

Review Nicaragua’s performance on the FY2008 selection indicators

Review Nicaragua’s performance on the FY2007 selection indicators

Review Nicaragua's performance on the FY2006 selection indicators 

Review Nicaragua's performance on the FY2005 selection indicators

Review Nicaragua's performance on the FY2004 selection indicators  

Learn more about the MCC's country selection process

Country Facts

Data are for 2009 (or most recent year available)

Source: World Development Indicators 2010

Nicaragua Country Brief from the World Bank

Other U.S. Policies

Review USAID Nicaragua's Mission page

Review USAID's strategy in Nicaragua

Other Donors

The top three donors to Nicaragua in 2009 were:

Other Resources

MCC Nicaragua website

Department of State country profile providing background on Nicaragua's history and U.S.-Nicaragua relations

World Bank projects in Nicaragua 

U.S. Assistance