Nicaragua remains one of Central America’s poorest countries. In 2016, 24.9% of Nicaraguans were living below the poverty line, a significant decline from 45.8% in 2001, according to the Pan American Health Organization (PAHO). From 2000 to 2022, Nicaragua achieved an 18% increase in its Human Development Index (HDI), rising from 0.563 to 0.669. Despite this progress, Nicaragua still ranks 32nd out of 35 countries in North and South America in HDI as of 2022, illustrating persistent development challenges. Limited access to clean water, food insecurity, malnutrition and inadequate access to health care and education mark poverty in Nicaragua, according to the World Food Programme (WFP).

The United States Agency for International Development (USAID) has played a critical role in improving well-being in Nicaragua for decades. USAID programs in Nicaragua have supported key initiatives aimed at expanding access to health care and education, strengthening civic institutions and promoting economic growth and stability. However, recent cuts to USAID funding have hindered the progress of many of these initiatives, both in Nicaragua and in other low-and middle-income countries. The gains in personal well-being across Nicaragua throughout the past decade highlight the importance of sustained foreign aid for developing nations. Below are three examples of how USAID programs in Nicaragua have contributed to improving well-being in the country.

Improving Health Care

Over the past decade the Nicaraguan government has committed to improving its health sector programs, a commitment that has steadily strengthened the country’s health care system. These efforts have contributed to improvements in life expectancy, reductions in child mortality rates and higher immunization coverage across the country, according to the World Bank Group.

Although improvements have occurred, significant challenges remain, particularly in rural areas. While the Nicaraguan government offers universal free health care to all citizens, however, unequal distribution of medical supplies and health care personnel leaves many communities underserved, according to Bridge of Life.

In 2019, Salesian Missions, with the help of USAID funding, began constructing a medical clinic for impoverished Nicaraguans living in the cities of EstelÍ, Madriz and Nueva Segovia. The facility has since been completed and offers “high-quality obstetrics, pediatrics and gynecology services,” according to Salesian Missions.

Improving Education

Bettering education and literacy rates has long been a priority of the Nicaraguan government. However, the country still lags behind other low-middle income countries in terms of adult literacy rate—ages 15+. As of 2015, Nicaragua’s literacy rate for individuals aged 15 years or older was 78% for both men and women, notably lower than the median rate of other low-middle income countries, according to the National Education Profile.

Furthermore, a large percentage of school-aged children in Nicaragua do not attend primary or secondary school. In 2015, 18% of primary school-aged children were not attending school, and this figure rose to 43% among secondary school-aged children. Rates of out-of-school children were significantly higher in rural areas compared to urban locations, according to the National Education Profile.

USAID also launched the Community Action for Reading and Security (CARS) program, which improved early-grade literacy along Nicaragua’s Caribbean Coast. Across a six year span, the program reached more than 26,000 students and raised reading fluency in early-grade learners. CARS also helped local leaders design and carry out “community action plans” to support long-term education and development, according to DevTech.

Promoting Democracy and Civic Contribution

Nicaragua has long been affected by government mismanagement and dishonest administrations. Corruption and disregard for the rule of law has pushed Nicaragua into political disasters which have had harsh effects on Nicaraguans, according to Global Liberty Alliance. This rocky political history illustrates the necessity of programs to strengthen political transparency and effectiveness.

In 2009, USAID awarded grants to 31 civil society organizations in Nicaragua to promote voter registration, voter education and civic outreach. USAID also trained more than 700 Nicaraguans in anti-corruption practices and taught more than 350 journalists how to improve news quality and access public records, according to the United States Department of State.

USAID also promoted the Citizen Participation Ordinance, which four Nicaraguan municipal councils adopted in 2009. The Ordinance strengthened the role of civil society—community groups, NGOs and everyday people—in helping to shape local projects and policies.

Fostering Economic Growth

USAID helped Nicaragua take advantage of opportunities offered by the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). As a result, in the 2009 fiscal year, more than 9,000 Nicaraguans increased their sales in local, regional and international markets. 

USAID organized training sessions covering “commodity-specific export opportunities, best practices and economic conditions favoring the country,” according to the United States Department of State. More than 2,000 people attended with nearly half of the attendees being women.

Looking Ahead

USAID programs in Nicaragua have directly improved personal well-being by investing in education, health care, civic engagement and economic opportunity. But if funding cuts continue, these gains could be lost entirely. These examples highlight why sustained U.S. foreign aid remains a necessity for Nicaragua and other developing countries working to build a more stable and prosperous future.

– Jordan Venell

Jordan is based in Edina, MN, USA and focuses on Technology and Global Health for The Borgen Project.

Photo: Flickr