US-Nicaragua Aid Cut Due To Concerns Over Democracy

WASHINGTON — The United States on Wednesday canceled more than $60 million in assistance to Nicaragua, citing concerns about democracy, rule of law and a free market economy in the Latin American nation now led by a former Marxist guerrilla leader.

The board of the Millennium Challenge Corporation, a U.S. taxpayer-funded operation set up by former President George W. Bush to fight poverty in developing nations, said it had cut $62 million from a $175 million program for Nicaragua because of problems in recent elections.

"This decision is made with deep disappointment, as our partnership with Nicaragua has yielded tremendous progress over the past years in reducing poverty through innovative economic growth projects," said Rodney Bent, the corporation's chief executive.

The cut in aid follows a suspension in new U.S. assistance announced last November after municipal elections that the opposition said were marred by fraud. Nicaraguan President Daniel Ortega, a leader of the Sandinistas in the 1980s, declared the protests were unconstitutional.

In March, Ortega accused the U.S. of punishing the poor with the suspension and defended the local elections, in which his Sandinistas won a majority of mayorships, as fair. The opposition said the vote was fraudulent and complained that international observers were not allowed.

Bent said the MCC would only back countries whose "governments actively demonstrate a commitment to democracy and the rule of law, as well as economic freedom and social investment."

"Given the lack of meaningful reforms or progress in these areas by the government of Nicaragua, the board has agreed to terminate these projects," he said. The canceled projects include a property regularization project and improvement of a major road.

Secretary of State Hillary Rodham Clinton, who chairs the MCC board and participated in the Nicaragua decision, said U.S. assistance had to be "as effective and transparent as it is generous."

Comments

[Academic]

12:37 PM on 06/12/2009

Why doesn't it do the same to Egypt for the same reasons? Who's kidding whom? We all know the real reasons, don't we? Those who are prepared to be honest, that is.

Professor Dr. Stanley Collymore.

[persianadvocate]

12:10 AM on 06/12/2009

Earth to America: Cut $3 billion in blind-funding you give to the Israelis who kill starved babies in Gaza with tanks bought by that money as state policy!

[davidwayneosedach]

07:07 PM on 06/11/2009

If Nicaragua fall - so will the region.

[SonnyBono]

10:13 PM on 06/11/2009

Bit of a stretch to dig up the old domino theory for this, isn't it?

Our history of supporting dictators in the region does not exactly allow us to attempt to take the moral high ground on this issue. I don't seem to remember us ever cutting off aid to the dictators and high ranking murderers that we have installed and supported throughout the region. Nicaragua's election that saw Ortega returned to power was probably more democratic and fair than the US general election of 2000.

[zaz33]

11:14 PM on 06/11/2009

Has anyone ever heard of a LEFT WING para-military group?

Has the US ever overthrown or attacked a right wing corporate friendly government?.

[audadvnc]

06:08 PM on 06/11/2009

W: "We support democracy - as long as it does what we tell it to do."

[merger]

10:16 PM on 06/11/2009

Did you read the last line? Hillary was a part of the decision and the State department. W is gone.

[Gainsbourg69]

04:48 PM on 06/11/2009

Forget aid. The US should pay Nicaragua reparations for what happned during the war.

[who38]

05:20 PM on 06/11/2009

Agreed.

[merger]

10:16 PM on 06/11/2009

Disagree.

[PSM42]

04:26 PM on 06/11/2009

Let's hope that they take their nose out of Nicaragua's affairs as well. Don't let the door hit you on the way out.

[merger]

10:17 PM on 06/11/2009

Amen and please lets don't help these people anymore. right?

[zaz33]

04:13 PM on 06/11/2009

For some reason Egypt and Jordan come to mind.

Let's face it, the foundation of our foreign policy has alwas been hypocrisy. (and continues to be))

[who38]

05:21 PM on 06/11/2009

Unbelievable; isn't it? When are we goiing to withhold aid from some of the other "democratic" countries whose despotic governments we support?

[TryToBeFlexible]

03:59 PM on 06/11/2009

This is ridiculous. Ortega is the elected leader. He is a bit leftist. It is what the people wanted and voted for. He sure beats the ultra right winger in charge before.

This is like a hangover from the Bush (and Reagan) years.

[LMPE]

02:36 PM on 06/11/2009

Hey. Anyone remember Somoza?

[FZliveson]

03:39 PM on 06/11/2009

I met him at a party once, when I was there visiting relatives in 1965.
"Nice" man, I thought. But what does one know at the age of 17 at a party
serving Flor de Caña rum and it's legal!
Nicaragua is a BEAUTIFUL country and deserves the best the U.S.A. can give it.
By cutting off funds, we are just stimulating them to take MORE aid from Iran and Venezuela.
Don't forget how big China's influence is getting in Latin America. This focus on the Middle East and Asia, while ignoring our neighbors is going to bite us on the a$$ bigtime if we don't start using diplomacy.

[who38]

05:23 PM on 06/11/2009

It will serve the US right if Russia, Venezuela and China establish a beachhead in Nicaragua. And it is just a short hop to Cuba.

[Ira7]

01:56 PM on 06/11/2009

I can't believe we were giving them a dime to begin with.

[mazzetta]

12:51 PM on 06/11/2009

OMG

what an ignorance

Daniel Ortega is the farest person from the left now, his "sandinista" party has changed in a typical Latin America populist organization and he is allied with the church and the elites

evidently the reps are listening to the cries of their Nicaraguan fellows who lost the power and know how to play them with horrible stories about "communists" taking the power at US' doors

if they really want to support only "governments actively demonstrate a commitment to democracy and the rule of law, as well as economic freedom and social investment." they should re-write their whole list, given their track records in supporting any kind of dictatorship

[FZliveson]

03:40 PM on 06/11/2009

Mazzetta: Bravo...very well stated. "What an ignorance!"

[who38]

05:24 PM on 06/11/2009

Hear, hear. Now that Ortega has gone christian, abortions are no longer allowed and birth control probably isn't either.

[mazzetta]

07:28 PM on 06/11/2009

ditto
http://en.wikipedia.org/wiki/Abortion_in_Nicaragua

you can get 10 years in jail and they passed the law even in only the 28% of the population was supportive

if they knew they're cutting aid to this big "lives saver"...