Effects of Foreign Interference on Nicaragua

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Effects of Foreign Interference on Nicaragua

IB History SL

Shawn Abrahim

Sunday December 17, 2000

Effects of Foreign Interference on Nicaragua

        Nicaragua is a beautiful country, yet it has many deep scars. The beautiful beaches, tropical forests, lakes and mountains of this small Latin American country hide the wounds caused by foreigners, well. This poor country has been occupied dozens of times by persons who claim to know what is best for this country. Nicaragua has been ruled by the Spanish empire, Conquistadors, Mexico, a confederation of Central American States, Honduras, several dictators, a socialist-styled government, the U.S. marines, so called "puppet leaders", and finally as it stands, a democratically elected government. Since the turn of the century, no country has had more influence on this poverty-stricken country then the United States of America. The foreign policies of the United States have resulted in an overall decline in the Nicaraguan peoples quality of life. The United States has been directly involved in the erosion of the Nicaraguan economy, political stability, and also its social infrastructure. The present situation of Nicaragua can be directly linked to the United States' policies.

The Nicaraguan economy has been traditionally based on agriculture, light industrial production, and exports.  The United States destroyed these industries to a point where they are only fractionally as productive as previously.

During the 1970's, the agriculture industry of Nicaragua was split into two parts. Most farmers owned the land that they farmed. These farms were world-class examples of efficiency, productivity, and profitability. The remainder of the farms in Nicaragua were state-owned and run cooperatives. These farms were also very successful and were instrumental in supplying Nicaragua with crops that the other farmers did not produce. These cooperatives were also dedicated to studying agriculture; many new developments in the field were created here, including seeds used by the other farmers. The Nicaraguan agriculture industry was thriving. In 1982, the United States began backing both militarily and financially, contra-revolutionary forces, located in Honduras (the contras). The sole aim of the contras was to destabilize Nicaragua so that the government could be overthrown. The U.S./Contras specifically targeted the co-operatives and the other most-successful farms in the country. They bombed the farms, kidnapped employees, killed livestock, poisoned the land with chemicals, and in general terrorized the industry.  "Financed by the CIA and Pentagon… contra attacks have caused an estimated $250 million (U.S. 1982 dollars) in property damage…by burning peasant farms, granaries, tractors and trucks, the contras have undermined Nicaragua's food supply." . As a result, the agriculture industry has been destroyed to point where Nicaragua can no longer feed its own people, let alone give their farmers a decent life. In a country where agriculture in one of the biggest industries, this is obviously a huge blow to the economy.

Another important industry in Nicaragua was the light-industrial production industry. This industry employed many of the Nicaraguans who were not farmers. This industry imported raw materials, and semi-finished goods, and then finished them completely so they could be sold in Nicaragua and the rest of the western world. During the 1970's, this industry accounted for 25 percent of the nation's GDP and it was very successful. In the early 1980's, the U.S. formed a trade embargo against Nicaragua. This embargo banned the export of U.S. goods to Nicaragua and also forced the trading partners of the U.S. to do the same. As a result, the light-production industry could no longer import technology, parts, and raw materials. The industry collapsed, unable to make products out of very scarce materials. " The U.S. is nevertheless Nicaragua's largest trading partner…the sanctions therefore, are a meaningful economic pressure point because they alter trading relationships…production levels...and thereby force Nicaragua to restructure its now, faltering economy." Obviously, the aim of the U.S. was to hurt the Nicaraguan economy by banning trade, and thereby harm industrial production. They accomplished their sadistic goal.

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The remaining large portion of Nicaragua's economy during the 1970's was centered on trade overall. Nicaragua immensely benefited from trading with many foreign countries. It was in the unique niche of having good trading relationships with both the U.S. and her allies, and with the Soviet Union and her satellite states. Nicaragua actively, and heavily traded, agricultural products, raw materials, health equipment, minerals, foodstuffs, and many other goods with almost every nation in the world. When the U.S. instituted their trade embargo, they succeeded in severely harming the Nicaraguan economy, much to their dismay however, the people of Nicaragua simply ...

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