Nicaragua: Tightening Their Belts

Tightening Their Belts

"Our only sin was that of trying to give the Nicaraguan people all that they deserve, at the same time we were fighting a war against U.S. aggression." With those words of justification for Nicaragua's shattered economy, President Daniel Ortega last week imposed a drastic austerity program that will slash the national budget by almost half and lay off nearly 35,000 public employees, including 10,000 army personnel and 13,000 members of the security police. The measures are aimed at stimulating production, almost at a standstill, and exports, which have been cut nearly in half by the war. The program also targets...

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