While it hasn't gotten a lot of attention in the North American media over the last 6 months, the new trade agreement ALBA (Alternativa Bolivariana para los Pueblos de América) organized by Venezuelan President Chavez (initially a bilateral agreement with Cuba), which Nicaraguan President Ortega signed during his first week in office, is beginning to bring some concrete results to this country.
This past Thursday, as part of the ALBA agreement, BANDES, the Venezuelan development bank, opened its doors here, and distributed $10 million to Nicaraguan institutions (ENACAL, the water company, Minsa, the ministry of health, the post office, and an electric company) along with $10 million more for different cooperatives of small agricultural producers here. The recipients have a 2 year grace period, and 5% interest after that.
When the news first came out that Nicaragua would be entering this agreement, many people were worried that it would send a negative signal to the United States regarding this country's participation in CAFTA. However, most of the media interviews with national economists point out that the 2 agreements are more complementary than contradictory, as the scope of the ALBA agreement is intended to help the Nica agricultural and energy sectors as well as support cultural development within Latin America. It obviously has no bearing on the trade rules Nicaragua has with imports and exports to the US-which according to one local economist, primarily benefit agriculture-industrialists (that is to say, large sale producers of corn, sugar, etc).
As part of ALBA, the Venezuelan government also committed to provide Nicaragua with 32 electricity generating plants, fertilizer for crops, free or low cost eye surgeries, an aluminum processing plant, among other things. While many of these promises are obviously "de largo plazo" (long term in nature), the opening of BANDES this week is a hopeful sign of Venezuela's commitment to Nicaragua's future social and economic development.
(Note: All details about ALBA were obtained from information available on Nicaragua's official government website and El Nuevo Diario.)
Each day holds its own grace. And God makes everything beautiful in His time.
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- pamela
- After three years in Nicaragua, I am back in Texas to pursue an MA in Latin American studies.
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3 comments:
separated as they are by several countries, what is the benefit for venezolanos to be so nice?
i would say it's primarily an ideological interest of hugo chavez to strengthen the countries whose leadership is more "leftist" or socialist in its political leanings, but also i tend to believe that because chavez has presided over a time of economic success (due to oil revenues), he is trying (like the us does in its own way) to promote stability and growth in the region that will provide new markets for his own country to eventually enter in larger quantities. that's the short answer. : )
hey girl, got your kind letter this week! will write back soon, you're in my prayers, dawn
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