Last night I read My Car in Managua (1991), a book by an American sympathizer of the FSLN--popularly known as the Sandinistas--who worked for an aid mission in 1980s Managua. He paints a very frank picture of how the post-revolutionary FSLN completely messed up the national economy with failed socialist policies, a lack of work incentives, and a hyperinflation that impoverished everyone and drove the most skilled and talented people to other countries.
Today it's clear that in the 20 years since the opposition came to power by election, the economy has roared back to life with the cordoba--Nicaragua's currency--stabilizing at 20 or 21 per dollar, and there are signs of a dynamic economic life everywhere in towns and cities such as Leon and Granada.
Even with the FSLN having returned to power in the past decade and with controversial, albeit popular, president and former commandante Daniel Ortega up for reelection in 2012, this economic activity appears to continue at a healthy pace.
Contrast this to the situation in El Salvador where there appears to be plenty of economic activity but perhaps not of the sort that can grow the economy over the long term. Acording to my trusty Lonely Planet guide, a big chunk of El Salvador's GDP comes from remittances sent from abroad, principally the USA, and of that amount it's estimated that up to 80% is spent on consumption--basically for paying bills and buying groceries. The LP writer speculates that by such dependence upon friends and family working abroad for their daily living expenses, Salvadoreans have created a sort of "welfare" economy that cannot grow over time.
I remember the days of the Iran/Contra affair. The us always goes in for the right wing dictator. With a us embargo and CIA interference it is amazing they were able to move forward basic human rights such as education as they did.
ReplyDeleteThanks for posting, Candace. To be fair, I think I should mention that plenty of Nicaraguans go abroad to work, too. In fact, so many "Nicas" are working illegally in Costa Rica that it's a major source of tension between these two neighbors.
ReplyDeleteInterestingly, the author of My Car in Managua covers the very same topic--Nica workers in Costa Rica--but from more than 20 years ago. The more things change, I guess, the more they stay the same. . .
But there's no doubt, at least from my anecdotal experience here, that there is a certain amount of prosperity in Leon that seems pretty lacking overall in El Salvador or Guatemala. In those countries there are a lot of young people, mostly men, who stand around on street corners with nothing to do. Here, you see youngsters moving about with purpose, which is nice to see.