Since the Sandinista government returned to power in 2007 trade and other forms of ALBA solidarity have played a significant role in keeping Nicaragua afloat economically, and resulted in export growth and the beginning of diversification of the economy away from a high dependence on the IMF, US and Europe. Trade between the two countries has increased nearly 6,000% from $2 million in 2006 to $248m in 2010. Funding for ALBA social programmes has come through PetroCaribe. According to Paul Oquist Kelley, Nicaraguan government representative at the September 2010 UN Summit to review progress on the Millennium Development Goals:
Nicaragua has benefited from the most ingenious innovation in development financing of the 21st Century. This consists in Venezuelan solidarity channelled via the PetroCaribe agreements which converts half of the petrol costs of poor countries into low interest, long term credit for poverty reduction.
ALBA social programmes in Nicaragua
Housing: Nicaragua needs 400,000 new houses and half a million existing houses are not fit to live in. To address this problem the ‘Roof Plan’ programme will provide 250,000 families with ten sheets of corrugated iron and nails to improve the roofs of their houses. In addition ‘Houses for the people’ offers low interest loans to 5,000 public sector workers. This programme has also generated over 5,000 construction jobs.
Zero Hunger: Channelled through women farmers with the aim of improving the nutrition of rural families through the production of diary products, meat, and cereals. The longer term goal is to increase production to supplement household income through selling surplus locally. A package worth $2,000 is given to participating families including a cow, a pig, poultry, a biodigester, seeds and materials for building pens. This is backed up with training and technical support. This programme will benefit 75,000 families over five years.
Zero Usury: Micro credit scheme that has provided 80,000 women with low interest credit of up to US$200 to establish or improve small businesses. The women also receive support in drafting business plans and training in business development.
A voice for everyone: In 2009/10 the first ever Nicaragua disability census was carried out by a Cuban-Nicaraguan medical brigade. The brigade recorded 126,308 people with disabilities, about 2.2 percent of the population. The results of this survey will form the basis of government programmes to support those with disabilities.
Operation Miracle: Over a million people with sight problems have been treated by Cuba medical teams and local medical staff as part of Operation Miracle in Latin America, Asia and Africa including 65,000 Nicaraguans living in poverty.
Energy supply: Within 12 months of coming to power, the FSLN government had eliminated 12 hours per day power cuts largely thanks to Venezuelan support in the form of generating plants.
Bonuses for low paid workers: In May 2009, President Ortega announced a US$25 per month bonus, to be paid from ALBA funds, for 120,000 public sector workers earning less than $300 per month. This amount is very significant for low paid workers, particularly women.
South – South fair trade and food security: Rural development programmes to support small and medium farmers are central to government programmes to guarantee local food supplies and to develop a new form of fair trade with Venezuela based on ALBA principles. Small scale farmers and the cooperatives receive advance payment for guaranteed quantities of produce. A longer term commitment is being developed to build processing plants so that value can be added in Nicaragua. Small farmers will receive $10m financing for programmes in 2011 from ALBA and other sources.
ALBA infrastructure projects include power plants generating electricity, a road construction programme and a huge oil refinery named “The supreme dream of Bolivar’ which will give Nicaragua the capacity to supply refined oil to Central America and the Caribbean.
Helen Yuill, Campaigns Organiser at the Nicaragua Solidarity Campaign. Please email for more information.
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