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Millennium
Development Goals |
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Nicaragua won't meet MDGs under
International Monetary Fund (IMF) programmes
One hand gives while the other takes:
Nicaragua under IMF conditions
The "Millennium Declaration" was unanimously
adopted by the 189 member countries of the United Nations
at the conclusion of the Millennium Summit held in New
York in September 2000. In the declaration, all signatory
states undertook to spare no efforts to "free our
fellow men, women and children from the abject and dehumanizing
conditions of extreme poverty".
The importance of achieving the MDGs for a country
like Nicaragua is quite evident. Nicaragua is among
the poorest countries in Latin America, after Haiti,
Bolivia and Honduras (UNDP2005). Eighty per cent of
Nicaragua's' population lives on less than $2 (€1.60)
a day and 46 per cent on less than $1 (€0.80) a
day.
**Compare this to Ireland where per capita is €84.
a day
Child poverty is high in Nicaragua. Education should
be a priority. In comparison to neighbouring Honduras
and Bolivia which spent approximately 7 per cent of
GDP on public education. Nicaraguan spending in this
area was the lowest, at 4.3 per cent of GDP.
The principle obstacle to Nicaragua increasing its
spending levels on human capital to the level required
by the MDGs is the surrender of fiscal sovereignty to
IMF policies. The most stringent IMF macroeconomic condition
is the requirement:
- to make payment of domestic debt an absolute priority;
- to increase foreign exchange reserves to $800 million;
- to maintain ceilings on the government's primary
spending and fiscal deficit;
For a country where government spending totals $1.2
billion, sustaining international currency reserves of
$800 million is a serious burden. The IMF conditions also
means that the Nicaragua government payroll will also
have to remain frozen. This implies that it will be impossible
to accomplish the goal set in the Nicaraguan National
Development Plan of overcoming the enormous salary shortfall
in education and health, and hire the new teachers and
medical personnel necessary to meet the domestic goals
regarding education and health.
It is ironic that northern donors who provide budget
support to Nicaragua demand that on the one hand Nicaragua
achieves the goals required to meet the MDGs, whilst
on the other insisting that it comply with IMF programmes
with such conditions attached.
The most logical step would be to demand that the
main purpose of IMF programmes be to contribute to achievement
of the MDGs.
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External links
For Nicaragua and the MDGs also see: http://www.ccer.org.ni/english.htm
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