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Economic Development in NicaraguaEconomic development in Nicaragua has encountered issues that have slowed the country’s development. Nicaragua declared itself an independent country in 1821. However, it has directly felt the crippling effect of economic issues from the onslaught of crimes. As recently as 2020, Nicaragua was recognized as a critical threat location for crime by the Overseas Security Advisory Council. Nicaragua has also encountered natural disasters. As of November 2020, Hurricane Eta and Hurricane Iota, Category 4 and 5 hurricanes respectively, caused more than $740 million in damage.

However, even with mounting external and internal pressure, economic development in Nicaragua has shown potential for improvement. This change is based on securing educational opportunities that turn into growth in economic projects. Private organizations have created community centers and offered low- and middle-income citizens better access to education. Such organizations have also created jobs by amplifying the reach of renewable energy, agricultural irrigation expansion and fortification of infrastructure.

Nicaraguan Poverty

Nicaragua has faced an uphill battle in economic growth due to its criminal and poverty-stricken background. The conflict between rival gangs within the country exacerbates this issue. This instability has also caused a decline in economic fortitude. Moreover, inflation has reached undeniably high levels, and people have left Nicaragua in droves to pursue better economic opportunities. The people left behind continue to suffer from a lack of proper healthcare and education.

Education Improves Economic Development

The educational system within Nicaragua is adjacent to the poverty level. Children within the educational system find themselves facing the challenge of completing school due to a wide range of reasons. A recent study from the USAID reported that an estimated 72% of Nicaraguans do not finish secondary school, leaving them likely to be impoverished. In addition, more than 18% of teachers do not have more than primary school education. This creates a new generation of unprepared Nicaraguan citizens.

The correlation between educational attainment and job development is significant. It is the bridge that keeps many Nicaraguans in impoverished income brackets. With the constant issues that many lower-income Nicaraguan students face, there has been an increase in steering them toward an attainable educational path and improving educational success.

Formative Ways of Change

Outside help from the U.N. and the U.S. has created a shift in economic and educational development in Nicaragua in recent years. Organizations such as Save the Children and the World Bank have supported the upturn of educational prowess within Nicaragua. Save the Children has created an infrastructure for educational access by establishing toll roads and paving new ones. Additionally, the World Bank has established more community centers with creative and technical workshops to teach and fortify skills. The skills taught include knowledge of irrigation, infrastructure fortification and a new era of clean and renewable energy.

The organizations have also increased job development and commercial development projects from the private sector. These development projects have provided more job opportunities within the industries of agricultural irrigation, the fortification of infrastructure, renewable energy and the reinforcement of trade.

Projects of this magnitude were given more than just a prime objective with the World Bank portfolio. Such projects totaled more than $400 million for nine planned projects. These projects include the enhancement of telecommunications, roads, education, health and insurance for natural disasters. Two credits have already been passed together, worth more than $100 million, to combat COVID-19 and help those most affected by hurricanes.

The Nicaraguan educational system has had a rise in scholars coming through the ranks to create an ever-growing class of job-ready individuals. Problems of organized crime and violence have troubled Nicaragua in the past, but there is hope to establish a better economic system that can create many more jobs and lead Nicaragua to a better future. Organizations like the World Bank and Save the Children are instituting an educational and job pathway for young and experienced Nicaraguan citizens alike to create a more prosperous Nicaragua.

Mario Perales
Photo: Unsplash

Impacted by HurricanesOn November 2, 2020, Hurricane Eta made landfall in Puerto Cabezas, Nicaragua. As a Category 4 hurricane, it was the strongest hurricane to hit the Central American region in many years. Shortly after, Hurricane Iota hit. Thousands have died and many have experienced displacement. Since Central America is one of the poorest areas of Latin America, the U.S. is in a position to help alleviate the crisis by providing foreign aid to those impacted by hurricanes.

Poverty in Central America

Nicaragua is the second-poorest nation in the Western Hemisphere. Moreover, Nicaragua’s poverty rate sits around 15.1%. Geographically, the poorest area of Nicaragua is the Atlantic Coast of the country. Similarly, Honduras is an impoverished nation located north of Nicaragua. Honduras is also one of the poorest countries in Central America. Furthermore, Honduras’ geographical location leaves it exposed to extreme weather such as heavy rainfall and droughts. The most vulnerable, oftentimes rural and coastal populations, are susceptible to these intense weather changes. Neighboring countries of El Salvador and Guatemala are also impoverished nations with vulnerable populations. The increased climate disasters leave these populations at risk of death, poverty and becoming climate refugees.

Hurricane Eta and Hurricane Iota

On the eve of Hurricane Eta’s landfall, the Nicaraguan government evacuated around 3,000 families living in the coastal area. According to UNICEF, more than a million Nicaraguans, which also includes half a million children, were endangered by the hurricane. El Salvador evacuated people as a precaution and many of Guatemala’s departments declared a state of emergency.

Hurricane Eta made landfall as a Category 4 hurricane. The storm destroyed houses, hospitals and businesses. Widespread flooding and mudslides were responsible for the casualties across the region. Unfortunately, Hurricane Eta was not the only storm blasting through Central America.

Weather forecasters predicted another strong storm, Hurricane Iota. Also a Category 4 hurricane, Iota made landfall 15 miles south of where Hurricane Eta did just days prior. The hurricane further stalled the rescue efforts of the region. In Honduras, the hurricanes impacted around 4 million people with more than 2 million losing access to health care. Moreover, Guatemala had more than 200,000 people seeking shelter after the two hurricanes.

Foreign Aid to Central America

The Central American region is impoverished and vulnerable to natural disasters. Furthermore, many Central American nations depend on foreign aid from the United States. The countries of Guatemala, Honduras and El Salvador (the Northern Triangle) rely on foreign aid from the U.S. to manage rural poverty, violence, food insecurity and natural disasters. Moreover, that aid has been reduced under the Trump administration. Since Donald Trump took office, the aid for these countries has reduced from $750 million to $530 million. In April 2019, Trump froze $450 million of foreign aid to the Northern Triangle, further diminishing the lives of many. Foreign aid keeps Central Americans from plummeting to extreme poverty and also curtails migration to the United States.

Congress Pleads for Foreign Aid

As Hurricane Eta ravaged through Central America, Rep. Norma Torres (CA-35) wrote a letter urging Secretary of State, Mike Pompeo, to increase foreign aid to Central America. Torres (CA-35) wrote, “Hurricane Eta was an unavoidable natural disaster, but its aftermath is a preventable humanitarian crisis in the making.” In addition, the Chairman of the House Foreign Affairs Committee (HFAC), Eliot Engel (NY-16), also showed his support for increased aid to those Hurricane Eta impacted. Engel wrote, “a large-scale U.S. effort is needed to provide much-needed relief to those affected by Eta so that they are not forced to leave their countries and make the perilous journey north.”

USAID Provides Disaster Relief

The U.S. Agency for International Development (USAID) has agreed to increase aid by $17 million to the countries impacted by Hurricane Eta and Hurricane Iota. Studies have shown that foreign aid is a successful policy to reduce global poverty. Any aid given to these countries benefits the lives of those impacted by hurricanes in several significant ways.

– Andy Calderon
Photo: Flickr

Hurricanes in HondurasIn November 2020, Hurricane Eta and Hurricane Iota made landfall just two weeks apart in northeastern Nicaragua. The hurricanes spread across Central America. Honduras was one of the countries hit with severe destruction. In the wake of these storms, homelessness in Honduras reached all-time highs and an active humanitarian crisis unfolded as humanitarian organizations and policymakers struggled to contend with flooding, displacement and the spread of COVID-19. The aftermath of hurricanes in Honduras requires urgent humanitarian aid.

Poverty in Honduras

Nearly half of Honduras’ population lives in poverty. The poverty rate is higher in rural parts of the country than it is in urban centers. Whereas half of all Hondurans who live in the countryside subsist in varying states of poverty, less than half of all Hondurans who live in urban areas lead lives plagued by poverty,

The disparity between rich Hondurans and poor Hondurans is overwhelmingly large. A robust middle-class has yet to take shape in Honduras so Hondurans filter into one of two polarized class groups. A high rate of violence makes life treacherous for the poor.

Seasonal flooding has a detrimental effect on economic growth. Flooding from Hurricane Eta and Hurricane Iota combined with seasonal flooding make 2020 one of the worst years in Honduras’ history. Livestock and farmlands were swept away and Hondurans have had to search desperately for other means to feed themselves.

Homelessness and Hurricanes in Honduras

In 1998, three million Hondurans were made homeless by Hurricane Mitch and tens of thousands were forced to flee to the United States. The devastation that was unleashed by Hurricane Mitch is the closest analog to the combined effects of Eta and Iota. Reports on the rate of homelessness in Honduras after Eta and Iota remain incomplete, but it is undoubtedly high, similar in scope to the rate of homelessness in Honduras after Hurricane Mitch.

7 Responses to Hurricane Eta and Hurricane Iota

  1. Public Investment in Infrastructure and Social Programs. Honduran President Juan Orlando Hernandez plans to engage “four times the nation’s annual budget in infrastructure and social programs to help Hondurans recover from devastating storms.” His plan will put thousands of Hondurans to work rebuilding the nation’s infrastructure, so it works on two important levels. First, his plan creates jobs for Hondurans whose livelihoods were lost as a result of the hurricanes. Second, it will lead to necessary rebuilding projects.

  2. USAID Funding. By the beginning of December 2020, USAID had committed close to $50 million for humanitarian aid to meet the needs of Honduras’ relief efforts. Funding goes to securing “emergency food, shelter, urgent medical care, clean water, sanitation and hygiene.”

  3. USAID’s Honduras Emergency WASH and Shelter (HEWS) Program. In mid-December 2020, USAID announced that it will send packs of materials to “select families” through its HEWS program, which families can use to rebuild damaged or destroyed homes. Experts will also be sent to teach families how to use the material that has been sent and to work alongside families during the initial stages of the rebuilding process.

  4. Project HOPE Emergency Medical Teams. In remote villages, where poverty rates tend to be highest, villagers have scarce access to medical services. Project HOPE medical teams focus on these locations because unsanitary water supplies have been identified there. Also, cases of COVID-19 have been reported.

  5. Project HOPE WASH Program. Potable water is provided to 3,000 families through Project HOPE’s WASH program. Additionally, resources for sanitizing water, including chlorine and training materials, are provided to families so that water purification practices can be carried out indefinitely.

  6. AMDA Emergency Relief. Relief supplies, including food, coverings and hygienic supplies, were distributed to several dozen families through a partnership between AMDA and AMDA-Honduras. The rate of homelessness in Honduras is so high that many people have taken shelter in nursing homes. Hondurans who lost their homes as a result of Eta and Iota live side by side with Honduras’ elderly. Similar AMDA relief packs were distributed throughout such facilities.

  7. Distribution of KN95 and Surgical Masks. Concerns about the spread of COVID-19 have accompanied the disastrous effects of Hurricane Eta and Hurricane Iota. Project HOPE distributed hundreds of thousands of KN95 and surgical masks to activists, doctors and frontline workers throughout Honduras to help contain the spread of COVID-19.

Hope on the Horizon for Honduras

Hurricanes in Honduras coupled with COVID-19 created severe consequences for people living there. Long-term concerns include the effect that lack of adequate health services will have on mothers, pregnant women, newborns and young children. Many humanitarian organizations are prioritizing aid to remote parts of the country to mitigate the effects of isolation. The spread of disease is an additional concern. A comprehensive solution to the crisis at hand will involve combined efforts.

– Taylor Pangman
Photo: Flickr