8/6/2019 Nicaragua Letter to the Editor
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Dear Forbes Editors:
As one of the leading sources of business news in the world, we
believe that Forbes should becompelled to offer well substantiated
information. We were therefore appalled to read The WorldsWorst
Economies on Forbes.com, which for the second consecutive year
presents unfounded,insufficient, and mostly out of context
information on Nicaragua. Based exclusively on statistics
fromindependent and trustworthy international institutions, we can
easily provide your magazine withinformation that can help you
better understand and portray our country in future references.
Wehope youll offer us the opportunity to share our side of the
story.
Over the past four years Nicaragua has demonstrated healthy
economic tendencies, even in themidst of the international economic
crisis. The country achieved a GDP growth of 4.5 percent in2010,
the highest in the Central America region. During 2007-2010, our
average annual growth ratesfor foreign direct investment (FDI),
exports (including free zones) and tourist arrivals, were
21.4percent, 16.6 percentand 7.8 percent, respectively.
Furthermore, FDI projections for 2011 surpassthe US$1 billion mark,
establishing a new record for the country. The growth in investment
flows hasallowed Nicaragua to register the highest index of FDI as
a percentage of GDP for the thirdconsecutive year, reaching 7.9
percent in 2010, well above the regional average of 4 percent.
Evenwhile we recognize that our country is still one of the poorest
in this hemisphere, these figuresclearly show were also one of the
most dynamic.
Strangely enough the article mentions the International Monetary
Fund (IMF) as a source of itsnegative description of Nicaragua.
Yet, in April 2011 the Executive Board of the IMF completed
thesixth review of Nicaragua's economic performance under the
three-year Extended Credit Facilityprogram (ECF) and approved its
extension through December 2011, evidencing the countryssustained
macroeconomic and fiscal stability. Mr. Murilo Portugal, Deputy
Managing Director andActing Board Chair, stated at that time recent
progress in the implementation of keystructural reforms is
encouraging. The approval of a new central bank charter,
thestrengthening of the electricity law, the publication of a study
on pension reform options,and the adoption of a new procurement law
are important advances.
Moreover, allegations that Nicaragua actively discourages
foreign investment could not be furtherfrom the truth. Through
institutions such as PRONicaragua, the governments official
investmentpromotion agency, ranked 11th best national investment
promotion agency in the world by theWorld Bank, the Government
sends a clear message that it recognizes the positive impact of FDI
andencourages the establishment of more projects in the country.
More so, the Government has
continuously worked with the private sector in order to
implement policy measures that facilitate thedevelopment of FDI
projects and trade, through the creation of the Presidential
Delegation forInvestment Promotion and Facilitation of Foreign
Trade, working with the World Banks DoingBusiness team to design
policy reforms; the creation of several public-private commissions
thatidentify financing options for investment projects; the signing
of the only multiannual TripartiteAgreement (Government Private and
Labor sectors) on Labor Conditions in the hemisphere; andthe
opening of the One-Stop Shop for the Free Zone Sector. It is due to
these efforts that, accordingto the 2011 Doing Business Report, the
country holds first place in Central America in indicators suchas
starting a business and investor protection.
What about poverty in Nicaragua? According to the International
Foundation for the Global EconomicChallenges (FIDEG, for its
acronym in Spanish) 2011 Household Survey to Measure Poverty,
studyfunded by the World Bank, in 2010 poverty in the rural areas
of Nicaragua was reduced by 5percentage points, while extreme
poverty decreased by 2.3 percentage points. Even more so, Gero
Vaagt, representative of the Food and Agriculture Organization
(FAO) in Nicaragua, declared in 2010that Nicaragua is among the top
three countries in Latin America with significant advances
inachieving Millennium Development Goal 1, which calls to eradicate
extreme poverty and hunger by2015.
With this letter we urge Forbes to evaluate their editorial
process and conduct a more efficient fact-checking mechanism that
ensures publishing objective and trustworthy articles, which its
readershave come to expect. The effect an article of this magnitude
can have on developing countries isoverwhelming and difficult to
overcome, and therefore we deem it only fair that it be as
impartialand substantiated as possible. We truly believe that this
should be the goal of professionaljournalism, and what Forbes
should represent.
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