Home
/
RELIGION & LIBERTY ONLINE
/
Is a Nicaraguan and World Bank Partnership Going to Help the Country?
Is a Nicaraguan and World Bank Partnership Going to Help the Country?
Nov 4, 2026 11:06 PM

Recently, the World Bank agreed to partner with Nicaragua to give the country 69 million U.S. dollars in aid. This poses the immediate question of whether or not this aid will be effective in producing its stated goal of decreasing poverty and increasing economic productivity. Should the World Bank continue to give money to the government of Nicaragua, which – especially of late – has been showing a decrease in political stability and democratic processes? History shows that international loans provide little help when countries suffer from decreases in stability and equality within their system.

The World Bank justifies the money that Nicaragua receives: “Nicaragua has achieved a real Gross Domestic Product (GDP) growth of 5 percent in 2012 and 4.6 percent in 2013, returning to pre-crisis growth levels.” GDP, however, does not paint plete picture of the country’s performance. Most of the wealth within Nicaragua is located among the upper class, making the GDP less accurate for the country as a whole. Gross Domestic Product inpurchasing power parity(PPP) in 2012 was estimated at $20.04 billion USD, and GDP per capita in PPP at $3,300 USD, making Nicaragua the second poorest country in the Western Hemisphere.

Instead of looking at the GDP of Nicaragua, the World Bank should be focusing on the Gini coefficient of the country. The Gini coefficient levels of the Nicaragua have been far below average for the world and even below average for the rest of Latin America and the Caribbean. The Gini coefficient is a number that represents the e distribution of a nation. According to data from the UN Development Programme, Nicaragua ranks as the 129th country out of 187 countries based upon Gini. The Gini coefficient is seen by many as a better representation of the inequality and the progress that a country is making, and should be taken into account before the World Bank justifies giving millions to a country ill-equipped to use the money wisely. This statistic, which the World Bank keeps track of, should make the organization realize that while GDP may go up, it is not the sole indicator of a country’s success.

After both a recent election scandal in which the current administration was accused of fixing the election and a constitutional change to eliminate term limits for the president, Nicaragua is moving away from responsible government, towards a more tyrannical rule. President Daniel Ortega, along with the majority Sandinista government, approved the constitutional change that not only eliminated presidential term limits, but also changed the necessary requirements to win the election. Before the change, in order to win the presidency, an individual was required to garner at least 35 percent of the vote; however, now a candidate only needs the most votes to win the election. This could pose multiple problems, specifically if voter turnout is very low, meaning the presidency could potentially be decided by a very slim minority. The lawmakers of the country have begun to make it easier and easier for the current president to serve for life, causing the perception of political corruption within the country, as well as creating distaste for the courts’ decision to not enforce term limits during Ortega’s third tem, which at the time, was unconstitutional.

Simply giving money to a government prone to corruption will not achieve the World Bank’s goal to “face the challenges ahead if [Nicaragua] can further increase petitiveness, and broaden access to opportunities for all its citizens.” In the end, this would not actually help the country and pull the people out of poverty, but it would keep them within a cycle of dependence. Simply giving money to Nicaragua whenever the government asks for it could easily lead down a similar path traveled by the World Bank and IMF in the 1970s and 80s in Latin America. That time period is historically known as the “lost decade” of the 80s, in which countries that received aid went into severe economic depressions after defaulting on their loans.

As Christians, instead of simply handing people what they want we should be teaching them how to achieve what they need. Jesus teaches that we should go and help others by guiding them, but that does not mean that everything should be given freely to all that ask. Instead we need to allow the Nicaraguan government to invest in its people, allowing them to grow the gifts that God has given them.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
For St. John Paul II’s 100th birthday, Italy gets gift of religious freedom
Today, May 18, is a very good day, indeed. It is a heroic day for the Italian Catholic Church on the 100th anniversary of Pope St. John Paul II’s birth. There could not be a better birthday gift from a saint who, fluent in 13 languages, was a veritable Paraclete-on-earth. He spoke courageously and often, raising his voice against persecution of religious freedom. He did so not just in his munist Poland, but throughout the entire secularized world. By the...
Acton Line podcast: What is Christian humanism? A conversation with Bradley J. Birzer
Bradley J. Birzer, professor of history and the Russell Amos Kirk Chair in American Studies at Hillsdale College, joins this episode of Acton Line to speak about his newest book, “Beyond Tenebrae: Christian Humanism in the Twilight of the West.” What is Christian humanism and what role does it play in the Republic of Letters? What does it mean to live as a Christian humanist? Birzer helps lay down some of the foundational ideas in his book and explains the...
Rev. Robert Sirico: What would Fr. Neuhaus think of ‘First Things’ now?
First Things magazine has transformed radically from the days when Rev. Richard John Neuhaus established it as the foremost magazine of Christian engagement with the public square. Acton Institute President and Co-founder Rev. Robert A. Sirico discussed its devolution and the broader challenge of Catholic integralism on the Friday, May 15, edition of “The Federalist Radio Hour.” Since Rev. Neuhaus’ death, the publication’s literary editor hascalledhimself a “socialist Roman Catholic,” and its authors have erroneouslydescribedwealth as “an intrinsic evil.” Podcast...
Awe and wonder: The keys to curbing COVID-19 hubris
In our information age, armchair economists and epidemiologists are many. Society remains deeply divided—preoccupied with social media squabbles over the credibility of our leaders and the rightness or wrongness of their proposed solutions. Of course, the actual experts are divided, as well. Scientists and researchers are still arguing over the validity of various mathematical models. Inventors, businesses, munity institutions have adopted wide-ranging approaches to adapt to the virus. Governors and legislators remain split on how to interpret the bigger picture—weighing...
We must cure the global pandemic of loneliness
Millions of people within our country are experiencing extreme social isolation and loneliness. In a time defined by a pandemic and lockdowns, one would naturally expect people to feel this way, being cut off from family, friends, and neighbors. In actuality, the coronavirus has just exacerbated an existing pandemic that had been plaguing the United States for many years: a broad cultural trend of increased social isolation and alienation. Long before the coronavirus started, large segments of our society were...
How John Paul II reminded us that liberty and truth are inseparable
On the occasion of the 100th anniversary of the late John Paul II’s birth, it’s worth underscoring that one theme which permeated his pontificate from its beginning to the end was that of truth. Many remember Pope John Paul II as playing a crucial role in Eastern Europe’s liberation from Marxist tyranny. But he also insisted that liberty needed to be grounded in and guided by the truth knowable via reason and faith. If freedom and truth e separated—as they...
Rev. Robert Sirico: COVID-19 lockdown orders are the state-mandated ‘marginalization of religion’
Perhaps nowhere is the disconnect between private citizens’ views and those of the government clearer than when es to the role of religion in society. Acton Institute President and Co-founder Rev. Robert A. Sirico told a nationally syndicated radio program that state orders that effectively ban clergy from caring for sick patients represent “the marginalization of religion as a non-essential service,” and this “flies in the face of our entire history as an American republic.” “Who knows best what is...
R.R. Reno, masks, and the vacuity of social media
First Things magazine is no stranger to controversy. In recent years, it has been increasingly critical­ of the market economy, made bizarre defenses of kidnapping in the guise of a book review, and e a clearing house of contrarian and moralistic perspectives on the COVID-19 pandemic. Earlier this week, First Things editor R.R. Reno took to Twitter to accuse those who try to avoid the spread of the coronavirus by wearing masks of cowardice. The tweets, since deleted, were widely...
Rev. Sirico: How central planning created tunnel vision on COVID-19 response
Did central planning in health care and government make the COVID-19 pandemic worse by making the response more ineffective? Rev. Robert Sirico, president and co-founder of the Acton Institute, offers his thoughts on how centralization in health care and the economy has marginalized other perspectives and pushed aside notions of subsidiarity. ...
What’s behind COVID-19 racial health disparities?
Soon after COVID-19 infection rates began to skyrocket in New York City and other densely populated urban areas, progressives and Democrats demanded data on the racial disparities of testing, treatments, and deaths. The data showed that blacks and Latinos were much more likely to die from the virus than whites and Asians. As expected, progressives moved to explain these disparities in terms of structural, systemic injustice in America’s health care system: Such injustice follows the country’s material and economic inequality....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved