Like the youngest in a line of troubled older siblings, Nicaragua finally stands poised to shed its legacy of turmoil. Call her the late bloomer among Central American countries, the ethos of instability is no mere memory here. Rather, it is from within a context of 30 years of chaos that this country is struggling to emerge. Lawmakers and entrepreneurs are propelling a trend in repair and revitalization, which they see as vital to allowing Nicaragua to take its place among other Central American powers, such as Panama, Costa Rica and Colombia.

Nicaragua, as the Western Hemisphere’s second poorest nation, seems an unlikely candidate to experience an economic revival. But that’s precisely what the country’s government, along with private developers and investors, has been aiming to produce in recent years. An effort is now underway to correct the decades of fiscal mismanagement that coincided with political instability and civil war, and the focus is heavily on the agriculture and tourism industries.

Most of Nicaragua’s five and a half million people are concentrated on the country’s Pacific coast, both in urban centers such as Granada, Leon and Managua, and in rural villages. Most of the larger industries are centered in the Western region as well. Coffee, sugar cane, sesame seeds, peanuts, soy beans and cotton are raised in the region’s fertile volcanic soil, which, together with a warm climate and plentiful water resources, provides an ideal growing environment. Governmental objectives within the agricultural sector include obtaining higher yields, generating greater value, and reaching new markets. Since 1999, interventions such as the Agriculture Technology Project and the National Seed Program have generated more than 25 percent growth in the industry.

Closer to the coast, shrimp fishing represents more than 40 percent of the country’s aquaculture exports and 4.5 percent of total exports, and is the single most profitable activity in the country’s commercial fishing industry. About 20 percent of Nicaragua’s cultivated shrimp is exported to Europe, with the remaining 80 percent destined for supermarkets and restaurants in the United States. Currently, approximately five out of every six acres dedicated to shrimp cultivation are located in Chinandega’s Real Estuary. Both cooperative farms and private enterprise have been granted more than 54,000 acres, which represents less than one-third of the Western shoreline. Great potential for further development exists along the entire coastal area.

Nicaragua also is attempting to position itself as the ideal home base for import/export operations between the United States and Central America. According to the Nicaraguan Investment Promotion Agency (also known as ProNicaragua), a nonprofit, public-private institution established in 2002 to generate economic growth and job creation in Nicaragua by attracting foreign direct investment, Chinandega’s Port of Corinto boasts a yearly shipping volume of 1.2 million tons. Raw materials pass through this port to be further processed in Nicaragua, and are then shipped on to Puerto Cortes in Honduras. From there, a variety of manufactured products — including timber, auto parts and furniture — are exported to the U.S. East Coast.

Last year the Nicaraguan government took steps to secure this geographical advantage through an investment partnership with the Millennium Challenge Corp. A $175 million, five-year initiative will attempt to boost property titles, rural business development and improvements to road infrastructure.

In the last five years, Nicaraguan and American investors have poured $600 million dollars into tourism, an industry that currently constitutes 10 percent of the country’s revenue. The country boasts 250 miles of pristine Pacific coastline, a well as an active volcanic mountain range, destined to become an mecca for ecotourism hot spot.

The Nicaraguan government also has issued tourism incentives to encourage further development. The Tourism Incentive Law and Free Zone Law now offer 80 to 100 percent exemption on import duties, sales tax, municipal taxes, capital gains and earnings for a period of 10 years. These initiatives and others make Nicaragua an appealing venue for those looking to invest in the development of seaside resorts and condominiums. Many such projects are currently under construction and looking to attract American and European vacationers in search of a more affordable alternative to Costa Rica or Brazil, for example.

Jim Woodman, American expatriate and author of several books on Central and South American archaeology, has been studying Nicaragua’s indigenous idols and petroglyphs for several years. Woodman is part of an initiative aiming to preserve the region’s heritage. Tribal carvings in the bedrock can be found throughout the islands of Lake Nicaragua. Woodman already has uncovered several of these sites and believes many more may be obscured by the jungle growth. These islands were also once home to dozens of stone totems, all of which were removed by Western explorers in the 19th century. Woodman and his colleagues are in the process of filing for the repatriation of one of these idols — they call her “The Princess” — currently housed at the Smithsonian Institution in Washington, D.C. This group of advocates hopes that the restoration of The Princess will be the first step in a broader plan to attract visitors to this area of the world.

Creating interest in Nicaragua’s indigenous culture and taking measures to protect the country’s fragile treasures is a goal shared by many in Nicaragua’s growing tourism industry. It may behoove the government, however, not to forfeit long-term preservation for short-term financial gain. Some of those who are attempting to guide the nation toward higher levels of productivity are expressing concern that, in the rush to stimulate the economy with large resort projects, some of Nicaragua’s pristine natural beauty will be lost forever. There is a consensus among tour operators and chambers of commerce that Nicaragua should not attempt to emulate the condo-crowded beaches of Rio de Janeiro or Miami. Although the people of Nicaragua stand to benefit from guidelines that are highly favorable to investors, they are also at risk of losing something of inherent value to them and others: the wild, untouched quality of their land.

Entry Requirements

According to the U.S. Dept. of State, a valid U.S. passport is required to enter Nicaragua. U.S. citizens must have an onward or return ticket and evidence of sufficient funds to support themselves during their stay. A visa is not required for U.S. citizens; however, a tourist card must be purchased ($5) upon arrival. Tourist cards are typically issued for 30 to 90 days. A valid entry stamp is required to exit Nicaragua. Pay attention to the authorized stay that will be written into your entry stamp by the immigration inspector. Visitors remaining more than the authorized time must obtain an extension from Nicaraguan Immigration. Failure to do so will prevent departure until a fine is paid.

There is also a $32 departure tax, the payment of which may or may not be included in your ticket. If not, payment can be made at the counter.

More Information

Nicaraguan Investment Promotion Agency
ProNicaragua
tel 786 623 3833
http://www.pronicaragua.org

American Chamber of Commerce in Nicaragua
Apartado Postal 202
Managua, Nicaragua
tel 5052 67 30 99, fax 5052 67 30 98