Abstract
Foreign assistance to Nicaragua underwent major changes during the 1980s and 1990s. First, on average, the level of aid increased substantially (see Figure 6.1). In 1991, aid inflows rose to almost 60 per cent of GNP, attaining a value in absolute terms nearly three times that of exports. Second, the origin of aid shifted: while aid came primarily from the formerly socialist countries in the 1980s, together with some European assistance from Sweden, Spain and the Netherlands in particular, more broadly based Western support was obtained in the 1990s from the USA, Europe and multilateral agencies. Third, there have been substantial changes in the forms of aid and the conditions attached to it. In the 1970s, foreign assistance mainly took the form of project aid, while in the 1980s, and even more so in the 1990s, it was mainly commodity and balance of payments support. While in the 1980s the socialist countries’ assistance to Nicaragua consisted mainly of nonliquid commodity support, i.e. little spendable foreign exchange, the balance of payments support from the USA and Western Europe provided mainly liquid finance in the 1990s.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arguello, A., E. Croes & N. Kleiterp (1988) Acumulación y Transformación: Nicaragua1979–1985. Cuadernos de Investigación No. 3. Managua: INIES.
Bacha, E. (1990) ‘A Three-Gap Model of Foreign Transfers and the GDP Growth Rate in Developing Countries’, Journal of Development Economics. 32(2): 279–96.
Barraclough, S. et al. (1988) Aid that Counts. The Western Contribution to Development and Survival in Nicaragua. Amsterdam: TNI.
CEPAL (1994) ‘Nicaragua: Una economía en transición’, CEPAL LC/ MEX/R.458, Mexico: CEPAL (February).
Corbo, V., M. Bruno, S. Fischer, R. Laban & P. Rojas (1993) ‘An Economic Assessment of Nicaragua’, (mimeo), Stockholm: SIDA.
De Franco, M. (1994) ‘Nicaragua: Evolución de la ayuda externa 1960–1992’, (mimeo), Managua: INCAE.
Doriye, J., H. White & M. Wuyts (1993) Fungibility and Sustainability. Import Support to Tanzania. SIDA Evaluation Report 1993/5, Stockholm: SIDA.
Dornbusch, R. & S. Edwards (eds) (1991) The Macroeconomics of Populism in Latin America. Chicago (etc.): The University of Chicago Press.
FitzGerald, E.V.K. (1987) ‘An Evaluation of the Economic Costs to Nicaragua of the U.S. Aggression: 1980–84’, in Spalding (ed.) pp. 195–213.
FitzGerald, E.V.K. (1989) ‘Problems in Financing a Revolution: Accumulation, Defence and Income Distribution in Nicaragua, 1979–86’, in FitzGerald & Vos, pp. 262–98.
FitzGerald, E.V.K & R. Vos (1989) Financing Economic Development. A Structural Approach to Monetary Policy. Aldershot: Gower.
FitzGerald, E.V.K., K. Jansen & R. Vos (1994) ‘External Constraints on Private Investment in Developing Countries’, in Gunning et al. (eds) pp. 185–220.
Gang, I. & H. Khan (1991) ‘Foreign aid, taxes and public investment’, Journal of Development Economics. 34(1–2): 355–69.
Gibson, B. (1987) Nicaragua, Stabilization and Adjustment Policies and Programmes, Country Study No. 3, Helsinki: WIDER.
Gibson, B. (1993) ‘Nicaragua’, in Taylor (ed.) pp. 431–56.
Gibson, B. (1994) ‘Unsustainable Growth in Nicaragua’, Paper prepared for WIDER Conference on Medium-term Growth Strategies, Phase II, Helsinki: WIDER (April).
Griffin, K. (1970) ‘Foreign Capital, Domestic Savings and Economic Development’, Bulletin of the Oxford Institute of Economics and Statistics. 32(2): 99–112.
Gunning, J.W., H. Kox, W. Tims & Y. de Wit (eds) (1994) Aid, Trade and Development. Essays in Honour of Hans Linnemann. Basingstoke (etc.): Macmillan.
Heriot, J.C. Jr (1982) ‘The Economy’, in Rudolph (ed.), pp. 103–42.
King, R. & R. Levine (1992) ‘Financial Indicators and Growth in a Cross-Section of Countries’, Policy Research Working Papers WPS 819, Washington DC: World Bank.
Martínez Cuenca, A. (1994) ‘El comportamiento inversionista en Nicaragua’, Materiales de Estudio y Trabajo No. 13, Managua: FIDEG/Fundación Friedrich Ebert.
Ministerio de Cooperación Extena (1994) ‘Recursos Externos 1990–1994’, (mimeo), Managua: MCE. (mimeo).
Nitlapán (1994) Situación y perspectivas de las nuevas estructuras institucionales de financiamiento rural. Informe final’, Document prepared for SIDA, Managua: Instituto Nitlapán, Universidad Centroamericana.
Nuñez, O. (1987) Transición y lucha de clases en Nicaragua, (1979–1986), Mexico City: Siglo XXI.
Ocampo, J.A. (1991) ‘The collapse and (incomplete) stabilization of the Nicaraguan economy’, in Dornbusch & Edwards (eds), pp. 331–61.
Roubini, N. & X. Sala-i-Martin (1992) ‘Financial Repression and Economic Growth’, Journal of Development Economics. 39(1): 5–30.
Rudolph, J.D. (ed.) (1982) Nicaragua. A country study. Washington DC: The American University.
Sanchez Tones, F. & T. Melguizo Uribe (1994) ‘Ayuda y crecimiento econbómico en un modelo de tres brechas: El caso de Bolivia, Costa Rica, El Salvador y Nicaragua. Resumen’, (mimeo), Bogotá: FEDESARROLLO.
Spalding, R.J. (ed.) (1987) The Political Economy of Revolutionary Nicaragua. Boston: George Allen & Unwin.
Taylor, L. (1991) Foreign Resource Flows and Developing Country Growth. Helsinki: WIDER.
Taylor, L. (ed.) (1993) The Rocky Road to Reform. Adjustment, Income Distribution and Growth in the Developing World. Cambridge MA: MIT Press.
Taylor, L., R. Aguilar, S. de Vylder & J.A. Ocampo (1989) Nicaragua: The Transition from Economic Chaos toward Sustainable Growth. Stockholm: SIDA.
Vos, R., with the assistance of Sara Johansson (1994) ‘The Macroeconomics of Aid in Nicaragua’, SASDA Working Paper No. 20, Stockholm: Secretaria for the Analysis of Swedish Development Assistance.
White, H. (1992) ‘The Macroeconomic Impact of Development Aid: A Critical Survey’, Journal of Development Studies. 28(2): 163–240.
Editor information
Editors and Affiliations
Copyright information
© 1998 Institute of Social Studies
About this chapter
Cite this chapter
Vos, R., Johansson, S. (1998). Nicaragua. In: White, H. (eds) Aid and Macroeconomic Performance. International Finance and Development Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26249-6_6
Download citation
DOI: https://doi.org/10.1007/978-1-349-26249-6_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-26251-9
Online ISBN: 978-1-349-26249-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)