Nicaragua

 

Nicaragua, eligible for the MCA each year since its inception in 2004, was again selected as eligible in the 2007 and 2008 selection rounds. Nicaragua signed a 5-year $175 million compact in July, 2005.

 

MCA Status

On July 14, 2005, Nicaragua signed a 5-year, $275 million compact with the MCC. The compact focuses on strengthening property rights, improving access to markets for rural communities and increasing wages and profits from farming in select regions.

Country Compact

Nicaragua's Final Compact (pdf)
Summary of Compact (pdf)
Nicaragua's MCC compact proposal
Nicaragua Compact Fact Sheet

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 (PDF)

PRSP Annual Progress Report (PDF)

Joint Staff Assessment (JSA) of the PRSP (PDF)

 

 

Country Eligibility

In the FY 2008 selection process, Nicaragua scored above the median on five of six "ruling justly" indicators, three of five "investing in people" indicators, and four of six "economic freedom" indicators.

Nicaragua’s performance (pdf) on the FY 2008 selection indicators

Review Nicaragua’s performance (pdf) on the FY 2007 selection indicators

Review Nicaragua's performance (pdf) on the FY 2006 selection indicators 

Learn more about the MCC's country selection process

 

Country Facts

Data are for 2006 (or most recent year available)

Per capita income (GNI, current US$)	$1,000
Poverty rate ($2 a day)	80%
Average economic growth, 1996-2005	4.1%
Population	5,249,475
Percent population rural	41%
Life expectancy	70 yrs
Literacy Rate	77%

Source: World Development Indicators 2007

Nicaragua at a Glance from the World Bank (PDF)

 

 

 

 

Other U.S. Policies

Development Assistance: In FY 2006, USAID requested $41.4 million in funds from Development Assistance, PL 480 Title II (Emergency and Development Food Assistance), Economic Support and the Child Survival and Health Programs Fund. Large shares are devoted to promoting economic freedom and increasing investment in human capital.

USAID strategy in Nicaragua

Trade In 2004 the U.S. imported a significant $985 million in goods from Nicaragua. Nearly $200 million of these imports were apparel covered by the Caribbean Basin Trade Partnership Act (CBTPA) and $135 million of mostly agricultural goods were covered by the Caribbean Basin Initiative (CBI). An additional $400 million of apparel was not connected to any preferential access regime.

 

See a spreadsheet of U.S. imports from Nicaragua

 

 

Other Donors

The top three donors to Nicaragua in 2005 were:

Donor	ODA/OA* Disbursement 2005 (net $ US millions)
Inter-American Development Bank	108.17
United States	102.42
Italy	80.96

Source: Development Assistance Committee Database
Organization for Economic Cooperation and Development (OECD)
*ODA/OA is Official Development Assistance and Overseas Aid
www.oecd.org/dac/stats/idsonline

 

World Bank Involvement

Current World Bank commitments to Nicaragua total $314 million. The portfolio of 17 active projects includes many multi-sector initiatives, as well as projects aimed specifically at improving education and health services, transportation infrastructure, and the guarantee of social protection.

World Bank projects in Nicaragua

 

 

Other Resources

MCC Nicaragua web site

Compendium of food and agriculture indicators from the UN’s Food and Agriculture Organization (FAO)- (PDF)

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