Dudley has inherited the reins of a company who, despite the recognition of upper management,…
Case Study Nicaragua
Most people believe that Nicaragua became a foreign aid money pit due to the Contra/Asininity wars In the 1 sass’s. Although It Is true that the Contra/ Sandblast wars finally drove Nicaragua Into an economic stand still there are two mall reasons that their socioeconomic crisis occurred: First, Nicaragua has a long history of corrupt dictators who’s only Interests were to exploit the country’s vast riches and secondly, because they have been at war for over 166 years trying to find their true independence from wealthy conquering nations.
To think that recent 20th century vents is the reason Nicaragua can’t get out of their financial crisis is disregarding the other two factors. By believing that Nicaragua today is not able to manage their own government after their country was finally left in socioeconomic ruin by corrupt dictators and over 166 years of conflict, one will be bound to repeat the error again when evaluating emerging governments and distribution of foreign aid funds to countries of other former corrupt regimes like what Is happening in the Middle East today.
Opening up your eyes to the idea that nations largely Inhabited by poor people are the ones who end up paying for the mistakes of generations of the past can be a factor to socioeconomic crisis as well as beveling In strong International corrective support to stamp out corrupt leaders will ensure that socioeconomic crawls like what has happened to Nicaragua will only be a historical memory and not a repeat global security risk and financial burden. Nicaragua is a country overwhelmed by its history. Since colonial times, Nicaragua has suffered from political instability, civil war, poverty, foreign intervention, and natural disasters.
Successive governments both foreign and domestic have been unable to bring political stability or significant economic growth to the country, until now. To understand the phenomenal changes that are occurring in Nicaragua today you must look to their history of political Instability to recognize the significance of recent accomplishments. Nicaragua vs.. Spain Europeans flirts saw what is now Nicaragua when Christopher Columbus sailed south along the Caribbean in late 1502 and claimed the entire area for Spain. Several land expeditions were launched in the sass to subdue the indigenous population.
Incoming Spanish settlers were few, and the indigenous population was almost wiped out by exposure to new diseases, with the remainder forcibly sent to Peru to work the silver mines. Administratively during this period, the region became a province of the Audiences of Guatemala. Nicaragua vs. Mexico Establishment of an independent Nicaragua came in several stages. The first step 1821 and became part of the Mexican Empire. Separatist feelings throughout the isthmus grew, and the United Provinces of Central America declared their independence from Mexico in 1823.
Under a weak federal government, each province f the new nation created its own independent internal administration. Efforts to centralize power led to civil war between 1826 and 1829. The federation finally dissolved in 1837, and Nicaragua independence was formally declared on April 30, 1838. Nicaragua vs.. United States & Britain The mid-sass were marked by unstable national governments and a rivalry between the United States and Britain to bring Nicaragua under their control of influence. The goal of both U. S. ND Britain powers was control of a transitional transit route, either overland or via a new Caribbean-to-Pacific canal. Continued domestic “control” turmoil left a bitter legacy in Nicaragua and was the first example of what was to become a common occurrence in the country: a strong inclination for Nicaragua politicians to call on the United States to settle domestic disputes and an eagerness by the United States to respond by military intervention. Nicaragua people & U. S. vs.. Dictator Azalea Nicaragua endured many ruthless dictators starting with Jose Santos Azalea.
Azalea received strong opposition from conservatives that eventually erupted into a revolt that with the support of U. S. Marines drove out Azalea from power in 1909. Nicaragua United States dependence Later, United States banks lent money to Nicaragua on the condition that these banks would retain complete control of Nicaragua customs and all revenue from the railroads and steamships. By the end of World War l, United States military presence and supervision of the economy had turned Nicaragua into a near United States protectorate.
After the departure of United States marines in the sass’s the Nicaragua government dissolved into chaos, and liberal- conservative fighting erupted. The United States, fearing a full scale civil war would result in a leftist actors, sent the marines back to Managua in January 1927. This time, however, the rapid buildup of United States forces led only to increased mayhem. The fighting did not stop until massive United States power and the growing strength of the Nicaragua National Guard forced most combatants to sign a truce. Nicaragua Dictator Augusto C©Sara Sanding vs.. The U. S.
Sanding was the only major player who refused to abide by the truce. Initially a combatant for the liberals in the fighting, Sanding turned his forces against the United States marines and the Nicaragua National Guard, which Sanding noninsured merely a tool of the United States. Sanding led a force of several hundred who engaged in classic guerrilla warfare who nevertheless proved a drain on the economy and a constant embarrassment to the Nicaragua National Guard. The number of names on marine casualty lists from Sandiness attacks, resulted in president Herbert Hover’s withdrawing all marines from Nicaragua in January 1933.
Nicaragua people vs.. Dictator Somoza Garcia In 1933, the Nicaragua National Guards new director, Somoza Garcia, immediately moved to fill the seat of power left by the departure of the United States. For the next twenty years, Somoza Garcia was dictator of Nicaragua, always in control over the country and almost complete control over its economy. The sass and sass were boom times for the Nicaragua economy as coffee prices soared, but most of the country’s profit went into the pockets of Somoza Garcia.
Somoza Garcia bought or expropriated farms, mining interests, and companies until by the late sass, Somoza Garcia was the nation’s largest landowner. Somoza Garcia owned most of the country’s cattle ranches and coffee plantations and, as well, owned or controlled all anus, the national railroad, the national airlines, a cement factory, textile plants, several large electric power companies, and extensive rental property in the cities. Somoza Garlic’s policies made him many enemies, including a disgruntled citizen, who assassinated him in September 1956.
Nicaragua people vs.. Dictators Luis & Anastasia Somoza Debacle Somoza Garcia had changed the presidential succession so that it devolved onto his older son, Luis Somoza Debacle. Luis Somoza Debacle immediately assumed the post of president, and his younger brother, Anastasia Somoza Debacle, who took over as director of the Nicaragua National Guard. Because of the older brother’s poor health, Anastasia Somoza Debacle assumed more and more power. The formal transfer of power came in 1967, shortly before Luis Somoza Debacle suffered a fatal heart attack.
Decades of pent-up grievances against corruption and repression had created opposition to the Somoza. The new president, Anastasia Somoza Debacle, reacted to any criticism by increasing political repression. For the next dozen years, a cycle of active opposition to Anastasia Somoza Debacle’s regime and the regime’s ever more ruthless response heartened to destroy Nicaragua economy and society. The left liberal and student groups had long been vocal opponents of the regime. The Roman Catholic Church and elements of the press also became outspoken in their condemnation of the government’s repressive actions.
The group that was eventually to take the lead in opposing Anastasia Somoza Debacle, was the Sandiest National Liberation Front (Fretter Sandiest De Liberace¶n National-FSML) 1962. The turning point for many was the December 1972 earthquake that destroyed Managua. Nicaragua National Guard members Joined in looting the city after the armor, and it was later revealed that most of the international aid after the earthquake enriched the Somoza family instead of reaching the victims. The country’s rapid economic decline after the earthquake lost Anastasia Somoza Debacle the support of labor, the middle class, and Nicaragua elite. Group of university students to a small Marxist revolutionary organization operating in rural areas. Fueled by growing disenchantment with the dictator and foreign help, the FSML was militarily challenging the Nicaragua National Guard throughout the country by the late sass. Despite the collapse of the economy and the loss of all mommies and international support, the tenacity of Anastasia Somoza Debacle and the Nicaragua National Guard made it increasingly apparent that a change in Nicaragua would come through revolution instead of peaceful reform.
After two years of violent struggle, Anastasia Somoza Debacle finally fled Nicaragua, and on July 20, 1979, the FSML and other members of the revolutionary force entered Managua to assumed power. Most Nicaragua supported the new regime because they saw the Asininity victory as an opportunity to end the repression and economic inequalities of the almost universally hated the Somoza regime. Nicaragua vs.. United States, again. As leaders in the military struggle and the best-organized and most powerful group in observationally Nicaragua, the Sandiness FSML rapidly began consolidating their political power.
Worried that Nicaragua would become “another Cuba,” the United States government under the Reagan administration (1981-89) authorized a campaign known as the Contra wars to isolate the Sandiest FSML government. Nicaragua people vs.. Themselves By 1990 Nicaragua was exhausted by the Contra war and poverty. The new administration inherited a country in ruins. Agriculture the country’s primary economic resource had dropped during the sass. Manufacturing had practically ceased by 1990. The transportation and telecommunication networks were damaged by decades of fighting.
Blackouts were frequent because the electric power system was often the target of sabotage during the Contra war and because the country frequently was unable to pay for petroleum. The entire banking system was bankrupt, and more than half the labor force was unemployed. A per capita gross domestic product of less than USED $500 gave Nicaragua the distinction of being one f the poorest nations in the Western Hemisphere. New Order in Central America International negotiations for elections among the Central American countries in the late sass laid the groundwork for the Nicaragua elections in February 1991.
President Ortega also agreed to guarantee fair election participation for opposition parties. Also, he allow international observers to monitor the entire electoral process. Despite some violent incidents, the electoral campaign took place in relative peace. Nicaragua Today Thirteen years ago the government held elections and the country embarked on a ewe course. The administration of Violent Barrios Camphor led the country through Republic. New laws were passed and the painful process of building a free nation began.
Relations with international financial institutions were forged, old loans were renegotiated, and major investments in the nation’s infrastructure were obtained. Multi-Nationals such as Holiday Inn, Intercontinental Hotels, Princess Hotels, Coca- Cola, General Motors, Toyota, Ford, Mercedes Benz, Immunities , Chrysler, TGIF Fridays, Benton, Radio Shack, Pepsi, Macdonald, and many others have moved in. Incentive programs such as the Law 306 Tourism Investment program were implemented to further encourage investors. More than 100 schools were built and re-built, and further International Finance agreements were negotiated..
Today Nicaragua is experiencing unprecedented major growth in the economy and millions of dollars in investments and projects that are now underway. It is expected that continued proper management of the national debt will free tax revenue for the improvements to the infrastructure. Foreign investment has increased and shows signs of more rapid growth. Unemployment is falling steadily. The standard of living is improving. Construction is rampant. Resort projects in the sass’s of Millions of dollars have been announced, many of them in the San Juan del Sure area, the prime resort destination in Nicaragua.
Homes are being built again and are selling prior to completion. Home prices are rising at a fast rate. Builders are enjoying good profit margins. Jobs are being created. Highlights of the past ten years of new government include: Three elections followed by orderly transfers of power to opposition parties. The army was returned to civilian control, and its’ size reduced from 70,000 to 12,500. Inflation fell from 30,000% to single digits during this period; high GAP growth, and now the second lowest inflation rate in Central America at under 10%.
International Banking accords and free trade agreement with Mexico have been reached; NONFAT and NUMEROUS market access. Most land reform issues have been resolved through the legal process and without conflict. Foreigners may own land without Nicaragua partners. A greatly improved Education system, made up of local and international universities, literacy rate of over 85% from 50% at the end of Somoza regime. Crime statistics are down in all major felony categories. After electing the first female President in all of the Americas, Nicaragua revels in the increasing roles and responsibilities of women.
The government recognizes the benefits of tourist dollars and is heavily promoting tourism, especially in the south west coast areas. The Cruise Ship industry has discovered San Juan del Sure, since January 2000, and in 2003, over 50,000 passengers are expected to come through the port. Roads, communications, potable water, electricity, and related infrastructure have undergone substantial improvements. Many previous citizens who left the country during harder times are now returning with new educations and methods and are seeking out the investment opportunities and the trend continues.
Conclusion: I chose the focus for this paper to be about the political turmoil in Nicaragua because the events since the sass’s had significant effects that greatly accounts for my family to be of the fortunate 120,000 persons exiled in the sass’s. Unfortunately, the wounds have not healed enough for anyone older than I in my family to talk about these events. I asked my father once long ago with a small voice how he felt about this abject and why our family chose to come to the United States of all places.