Nicaragua is a lower-middle income country and has a GDP per capita income of 7486.94 US dollars. It has improved its economic, social and several other conditions that provide more opportunities including economic and quality services, leading to improved living standards for its citizens. Nicaragua has huge development potentials on many grounds including economic, social and political. But due to natural resources, it has the potential for sustainable agriculture, tourism and renewable energy. Additionally, the strategic location of it will facilitate trade with access to both the Pacific Ocean and the Caribbean Sea. A young and increasingly educated workforce — among the others— presents opportunities for innovation and economic growth in various sectors in the Republic of Nicaragua.
But Nicaragua, which is striving to overcome the after-effects of dictatorship and civil war, has limited economic opportunity-based, infrastructural and other development challenges. It has high levels of poverty, low human capital, infrastructure gaps and a volatile business environment. Notably, the majority of people live in extreme poverty, hindering their potentials. Weak infrastructure and transportation networks impede trade and investment opportunities for businesses in Nicaragua. The country’s business freedom score is below the world average. Nicaragua also has political instability, a weak rule of law and vulnerability to natural disasters that hinder investment, economic growth and social progress in the country, making it difficult to achieve sustainable development goals. Among the others, it has gross violations of human rights on many grounds.
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Hopefully saying, the legal, policy-oriented and other steps of the government of Nicaragua have helped address various challenges to its development. Nicaragua has taken economic, social and other development policies and plans including the National Plan to Fight Poverty and Promote Human Development (2022-2026). This is a comprehensive plan that addresses poverty, social inclusion and human development in the country. Its various infrastructural development initiatives including — including road network development, port modernization and rural electrification — have immensely contributed to its development on various grounds including improved transportation and communication networks, foreign investment and sustainable economic growth. Among other things, Nicaragua provides support for small businesses and entrepreneurs that provide more income opportunities for its citizens and the stimulation of the economy.
But there are flaws in the steps, leading to the limited outcomes of development efforts in Nicaragua, which became independent in 1838 but is one of the poorest countries in the Western Hemisphere. Pertinently saying, there is a lack of proper planning and coordination among different government agencies that leads to inefficiencies and wasted resources and inadequate implementation of development initiatives because of the lack of financial resources, low human capital, inadequate infrastructure, government failures and other reasons. Among other things, the steps of the government to address economic mismanagement and political instability that have hindered the success of many projects, along with the gross violation of human rights including politically motivated arbitrary arrests are also less.
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Addressing the flaws and challenges is vital to facilitate the development in Nicaragua. Pertinently saying, putting the emphasis on the implementation of development plans and policies that promote economic growth and reduce poverty with increased income opportunities, strategic investments in infrastructure and sustainable practices, fostering partnerships with international organizations and promoting sustainable practices is vital and will facilitate the development of Nicaragua on various grounds. But Nicaragua needs to address its economic mismanagement including corruption within the government help overcome various obstacles that can facilitate its development — on different grounds.
But Nicaragua also needs to address the gross violations of human rights and improve its political grounds. Along with providing more political freedom for the opposition (including freedom of protests), which has been reduced in recent years, arbitrary arrests, detention and the mistreatment of detainees need to be addressed. Improved media freedom, which is the constitutional right of the people of Nicaragua, is also crucial and will facilitate addressing its various development challenges and flaws.
