HomeArchiveNica business leaders urge caution amid U.S. calls to cut aid

Nica business leaders urge caution amid U.S. calls to cut aid

César Zamora, president of the Nicaraguan-American Chamber of Commerce (AMCHAM), says that calls in Washington to suspend millions of dollars in U.S. aid to Nicaragua is a “nuclear bomb” that would hurt the common people and “radicalize the government” of President Daniel Ortega.

U.S. Democratic Rep. Howard L. Berman, chairman of the House Foreign Affairs Committee, sent a letter yesterday to John Danilovich, CEO of the U.S. Millennium Challenge Corp. (MCC), urging the U.S. government´s aid organization to suspend its $175 million program in Nicaragua in light of Nicaragua´s questionable elections.

Nicaragua´s MCC compact, signed two years ago during the end of the administration of former President Enrique Bolaños, provides U.S. funding for sustainable development projects in the northern departments of León and Chinandega.

“It is time to consider carefully whether it is still appropriate to spend $175 million of U.S. taxpayer money through MCC´s Nicaragua compact,” said the letter to Danilovich from Berman. “I urge you to suspend the Nicaragua MCC program until, at a minimum, we achieve better clarity regarding the behavior of the Ortega government in the recent electoral contest.”

Berman´s letter comes in the wake of the highly suspect results of the Nov. 9 elections. The Ortega-controlled Supreme Electoral Council (CSE) gave a majority of the mayors´ seats to the ruling Sandinista Front, despite claims that more than a third of the 146 polls were rigged.

Berman, of California, said that for more than two years, MCC indicators that determine eligibility – rule of law, investment in people and the promotion of economic freedom – have eroded steadily in Nicaragua. Continuing U.S. aid to Nicaragua “in its current form seems to call into question the credibility of the MCC program overall.”

“Worse, it may in some measure be undermining the credibility of the United States itself in the region,” Berman added.

Zamora, however, is urging the U.S. government to be prudent and not make any hasty decision that would “only cause suffering to common Nicaraguans.”

The MCC, Zamora stressed, is “possibly the only hope that northern Nicaragua has for any sustainable and important development.”

While the business chamber president acknowledges the political crisis afflicting Nicaragua, he said cutting aid would be a “nuclear bomb for the economy.” Trying to punish Ortega this way would be counterproductive because it would “radicalize the government.”

“We are in a profound crisis, and to be honest, I still don´t see the light at the end of the tunnel,” Zamora told The Nica Times yesterday. “But cutting off aid would make any light at the end of the tunnel impossible. They need to give a window to the politicians to see if we can get out of this crisis.”

Trending Now

Francisco Cerundolo Reaches Brussels Quarterfinals With Win Over Martin Damm

Argentina’s Francisco Cerundolo advanced to the European Open quarterfinals yesterday, beating American Martin Damm 6-4, 7-6 (4) to set up a meeting with French...

Your 2027 Marchamo Comes With a Sticker That Lasts 10 Years

Your 2027 marchamo can be checked and paid starting Monday, Nov. 2. If your vehicle has a windshield, it's also the last year you'll...

Uvita Mansion Hid 357 Cocaine Packages and Costa Rica’s First 3D-Printed Rifles

Police seized 357 cocaine packages and Costa Rica's first 3D-printed rifles at a luxury house in Uvita.

Costa Rica Study Reveals Key Coastal Habitats for Endangered Giant Manta Rays

Researchers tracking endangered giant manta rays in Costa Rica have discovered that younger animals remain close to coastal habitats while adults travel across international waters. The findings could help guide future marine conservation efforts.

US Surveillance Plane Helps Costa Rica Seize 1.5 Tons of Cocaine Off Osa

A US surveillance aircraft helped Costa Rican authorities track a speedboat carrying about 1.5 metric tons (roughly 3,300 pounds) of cocaine off the Osa...

Costa Rica Conservation Groups Back U.S. Bill to Ban Sloth Imports After 58 Deaths

Two sloth conservation groups working in Costa Rica helped shape the bipartisan SLOTHS Act, which would ban most live sloth imports into the United States after dozens of animals died at a Florida attraction.

Bryan Ruiz Named Costa Rica Head Coach After Two Wins as Interim

Costa Rica has named former captain Bryan Ruiz head coach of its men's national team, giving the permanent job to the man who led...

Costa Rica Wildlife Survey Reveals 60 New Species Records in Urban Heredia

A wildlife survey in one of Costa Rica's busiest urban areas has added 60 new species records to a local inventory, showing that birds,...

Costa Rica Megaprison to Limit Conjugal Visits to 30 Minutes Every Six Months

Costa Rica's CACCO megaprison takes its first inmates Monday under strict new visit rules.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel