Nicaraguan Foreign Policy Essay

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Foreign policy in Nicaragua is heavily concentrated on economic stability and development. Considering that the country’s economy is primarily focused on the agricultural sector, trade is essential to its economic growth. Due to the heavily indebted state of the country, Nicaragua also depends on foreign development assistance in order to meet debt financing responsibilities and to have an opportunity of development; which makes foreign policy essential to its economic standing. Nicaragua’s most prevalent international relationships today are with the United States, Venezuela, and Russia.
The United States’ foreign relations with Nicaragua focus on promoting democracy, increasing economic growth, and boosting citizen development through basic …show more content…

2) The United States has since then called upon the Nicaraguan Government to uphold due process of democracy but it seems to be deterring more from it instead. Since Ortega’s occupation as President, he has been associated with autocrats such as former President Chavez of Venezuela and continues to stir away from democratic process. As a result, Nicaragua has lost eligibility for certain US financial assistance that is granted to central governments of countries who abide by the international standards of fiscal transparency and although Ortega’s regime has been asked to comply, there has been no agreement (“U.S. Relations with Nicaragua” par. 3). Nonetheless, the United States has continued to support the country in promoting economic growth by continuing to be a member of the US-Central America-Dominican Republic Free Trade Agreement which stimulates trade and investment and has led to the United States being both the top export partner and import partner of Nicaragua (“The World Factbook”). Furthermore, the US continues to sponsor citizen …show more content…

The President of Venezuela, Hugo Chavez was an honorary guest of Ortega’s Presidential Inauguration. Upon assuming his role as President, Ortega decided to become a member of the Latin American, Venezuelan and Cuban founded, trade bloc; known as the Bolivarian Alliance for the Americas Trade Treaty (ALBA). The focus of the trade treaty is natural resources, economic aid, and social prosperity amongst its members (Masud par. 2). Due to Ortega’s relationship and alliance with Chavez, Nicaragua was able to establish quite an economic advantage. The most notable Venezuelan aid to Nicaragua has been the opportunity for the country to buy petroleum at a discounted rate and only paying 50% up front, financing the other half with a low interest rate, and paying up to 10% of the bill with agricultural products (Wright par. 3). Furthermore, Venezuela became the second largest import partner to Nicaragua and third largest export partner. Additionally, Venezuela has provided monetary grants to the county that are focused on developing social programs. Nonetheless, critics presume that Nicaragua’s relationship with Venezuela will decelerate after the passing of Hugo Chavez because Ortega and Chavez had a special relationship and it is possible that Nicolas Maduro may cut back on the aid that Venezuela was once able to offer (Wright par.

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