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Latin America Investment News on Viva Tropical

Slow Growth Rate Hinders Nicaragua Presence in Latin America

Article Summary:

If Nicaragua continues to grow at the rate of four percent per year, in 2030 more than 30 percent of Nicaraguans will remain poor. While the country continues in the position of 115 in the competitiveness ranking of the World Economic Forum 2012, in order to advance its place, Nicaragua must overcome their eternal “bottlenecks”, strengthen its educational system and promote tourism globally.

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Photo Credit: La Prensa

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Growth Does Not Make A Dent In Poverty

If Nicaragua continues to grow at the rate of four percent per year, in 2030 more than 30 percent of Nicaraguans will remain poor. Alone could generate 65,000 to 70,000 jobs, well below the actual demand, as more than a hundred thousand people enter the labor market each year.

And although in the past 20 years, Nicaragua has managed to “strengthen macroeconomic stability,” the president of the Nicaraguan Foundation for Economic and Social Development (FUNIDES), Jose Antonio Baltodano, growth has been insufficient to “respond to the growing needs of the population. ”

The figures confirm this. While per capita income is now 50 percent higher than in 1992, “this is just one third of the average income in Central and only one fifth that of Latin America,” said Baltodano during the conference: The challenge of building a shared national vision, held yesterday at the Crowne Plaza. The country needs and urges grow seven percent annually, because only that growth in the next 20 years will triple per capita income (to $ 3.200) and generate over 80 000 jobs per year, projected Baltodano. Poverty also decrease about 15 percent.

But to achieve that goal dreamed of growth, Nicaragua must overcome their eternal “bottlenecks”. First, according Baltodano, strengthen the rule of law and institutions. “We need to improve the quality of justice, promoting independence, undisputed in the act of the judiciary, regardless of their partisan leanings or social and economic connections.”

It also needs to invest more in basic education. To Baltodano in the country “education does not receive the priority it deserves.” Proof of this is that “84 percent of fourth grade students can not subtract 14-6.” “Economic growth does not benefit the majority of the population leads us to not have social peace”.

Niels Ketelhöhn of INCAE Business School, set out to develop a strategy for national vision which are present: the government, business, unions, productive sectors and universities.

He noted that Nicaragua continues in the position 115 in the competitiveness ranking of the World Economic Forum 2012. This is why it is urgent to invest in technology, because according Ketelhöhn, “Nicaragua has the lowest patent production in Latin America. We do very little research work. ”

Also the country needs to do more to tourism, agriculture and attract more tech investment. Light manufacturing requires the removal of the red tape in investment procedures, he said.

For tourism “promotion is needed. The Institute of Tourism needs to be more money allocated for the promotion of the country. Must avoid the temptation to use that money for hiring. ”

This change strategy, according Ketelhöhn also must make progress in the transformation of the energy matrix and the modernization of labor.

The presidential delegate for investment Alvaro Baltodano, said the study should promote bilingual and invest in infrastructure.

The Ibero-American General Secretary Enrique Church, who referred to the situation in Latin America, said the region should move forward in reducing social inequality, to revolutionize mass education and follow with a stable macroeconomic balance.

Francisco de Sola, president of Fusades and board member of INCAE Business School, notes, meanwhile, that “taking from some to give to others does not mitigate social injustice, or solve any problem. Nor care systems populist purposes not reduce poverty when they create wealth with added value. ”

President of the Superior Council of Private Enterprise (COSEP), Joseph Adam Aguerri, reiterated that the Nicaraguan businessmen insist on stability and respect for institutions and democracy.

The speakers insisted on respect for private property to create more jobs by attracting quality investment, property titling and respect the free market.

To achieve consensus on all these strategies is required, according to Arturo Condo, Rector of INCAE Business School, the first step: inclusive dialogue, ie involving all sectors. Approaches are already done.

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From La Prensa

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