The Cause Of Poverty In Nicaragua

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SECTION A

Poverty has been an issue for countless years. Poverty is a serious issue which can have drastic effects such as

bringing a whole nation down. Fighting poverty has become a part of our daily life. It dates back to the world wars

when poverty became the main talking point of restoring a nation. With nations spending huge on arms and forces,

the ill-effects of spending huge and sending huge number of soldiers was leading to poverty. As countries lay in

ruins, the economies faced an uphill task of restoring the economy and ensuring people came out of poverty.

Though attempts were made by many governments it was leading towards poverty with people having no work.

Not only World wars led to poverty but nature also played a
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42.5% of the population lives on less than a US$1 a day and 70% on less than$2

daily.

Nicaragua was an agricultural economy back in the rule of the Somoza family. Exporting coffee and other

agricultural products was high in the 1900s.

Sandinistas began redistributing property which resulted in development in the sectors of health and education.

However, Sandinistas pro-Cuban relation led to a revolution from 1979 wherein USA launched a campaign of

armed attacks on Nicaragua through contras. This bloody, gruesome revolution led to destruction of infrastructure,

killing thousands of our people and leaving the economy in ruins.

By 1993 over 50% of our population was below poverty line. By 1998 it decreased to 48% with economic

recovery speeding up. Out of that 17.3% were in extreme poverty. Today poverty has reduced to 42.5% of the total

population.29% are extremely poor out of 70% poor in rural areas. In the urban areas 30% of the people are poor

and less than 8% are extremely poor.

It’s not only about our people but Nicaragua wants poverty to be eradicated from all the countries, so it is the main

thing that we want to work for with the development of our country and standards of
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This major

step has been taken to reach to the masses and give the poor all the basic amenities. In 2011 157.6 million dollars

were received by Foreign Debt Relief program

Other program Nicaragua has established GRUN Policy (Government Reconciliation and National Unity) in 2007.

In line with this is the National Plan for Human Development Program These plan cover prioritizing public

infrastructure such as hospitals and schools, reviewing the role of the state in economic, social and environmental

activities, capitalization of the poor through zero hunger program, prioritizing renewable energy policy, etc.

This has helped citizens with improved confidence of improving the economy of the country. As a result in 2010,

economic activity grew at 5.4% in 2011 which was the highest from 2000. Also inflation was brought down to 8%

in 2011 from 25% in 2008. Not only that the GDP forecast growth was 4.2% in 2014 and foreign investment in the

economy and trade becoming better show improvement in the country.

This has left us with hope to eradicate poverty in the near future with the improvement of the economy. With
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