Nicaragua  

Nicaragua’s unemployment rate is low, at 5% of the workforce, but for those employed, access to physical capital, is limited, ranking Nicaragua 75th, globally, on this variable. A domestic savings rate equivalent to negative 2% of GDP reduces investment in productive capital, lowering growth and income. The inflation rate in Nicaragua is very high, at 11%. In the country’s banking sector, 8% of loans are in default, and an interest margin of 5.7 percentage points indicates an uncompetitive banking sector with moderately high default rates. Levels of household expenditure, at 22% of GDP, are indicative of a lack of domestic demand. Foreign direct investment is at 7% of GDP, ranking the country 33rd on this variable. Nicaragua has extremely low export revenues relative to the cost of goods it imports, and a raw material concentration of 64.9%, indicates a large dependence on raw material exports, ranking Nicaragua 93rd, internationally, on this latter variable.

Entrepreneurship is encouraged in Nicaragua, with only six formal procedures required to start a business, ranking the country 15th, internationally, on this variable. However, despite low barriers to entry, only 2,070 new businesses were registered in 2007, placing Nicaragua in the third quartile on this measure. The level of internet infrastructure as measured by secure internet servers is very low, with only 3.3 per every one million people. Access to personal computers is also extremely low at four per 100 people and a very poor level of bandwidth hinders development in the technology industry. Nicaragua ranks 101st, internationally, with respect to this latter variable. ICT exports are extremely low, at less than 0.25% of goods, but high-tech exports rank around the global average, at 7% of manufactured product exports. Measures evaluating value added in services and royalty receipts rank Nicaragua in the bottom third, worldwide, on these variables, and investment in R&D is extremely low, at 0.1% of GDP, ranking the country 95th, internationally, on this variable.

Nicaraguan citizens enjoy high levels of political rights and civil liberties, and the country is classified as a democracy, with free and open political competition and sound regulation of the political system. There are some checks and balances in place to limit arbitrary actions by the executive office, and the judiciary is independent. Open political competition and well-regulated electoral processes characterise both the executive and legislative arms of government. In terms of durability, however, the political system as a whole is deemed as moderately stable, as a regime change occurred less than 20 years ago.

Only 90% of the school age population is enrolled in primary education in Nicaragua. These rates drop considerably to 66% in secondary school and to 18% at tertiary level, ranking Nicaragua in the bottom third, internationally, on both variables. The workforce as a whole has an average of 4.5 years of secondary education and 3.7 years of tertiary education per worker, ranking the country 89th and 69th, respectively. There is a ratio of one teacher to every 33 students at primary level, placing Nicaragua 81st globally on this count. There is gender parity in both primary and secondary levels of education, with 102 girls enrolled for every 100 boys. Educational spending is remarkably low, at only $269 per student in primary and secondary schooling, placing Nicaragua 79th, worldwide, on this variable.

Nicaragua’s health infrastructure is poorly equipped, with only four doctors and nurses and nine hospital beds for every 10,000 people. Barely half of Nicaraguans have access to improved sanitation facilities, placing Nicaragua 85th, globally, on this measure, and a very high 27% of the population is undernourished. Additionally, there is a high infant mortality rate of 30 per 1,000 births. The health-adjusted life expectancy in Nicaragua is 61 years. Performance on the subjective health variables is also generally average. Eight out of 10 Nicaraguans report being satisfied with their health and 23% consider themselves to have health problems.* Seven out of 10 citizens deem themselves well rested, ranking Nicaragua 30th according to this measure.* However, one-third of the population report consistent pain, ranking the country a high 90th, globally.* Two-thirds of Nicaraguans are satisfied with the water quality, giving the country a rank of 64 on this variable.*

Nicaragua has significant security challenges related to the movement of refugees, human flight, and the presence of targeted violence towards groups with a history of discrimination. Nicaragua lies just above the global average on these variables. There are also some instances of state-sponsored political violence against citizens, such as torture or political imprisonment, with Nicaragua ranking 50th, globally, on this measure. Homicide levels are high, at almost 15 per 100,000 people; however, there were no reported casualties due to civil war during 2008. With respect to personal security, 17% of respondents claim to have had money or property stolen in 2008, which is an average figure, globally, ranking Nicaragua 64th according to this variable, and 56% of the population feel safe walking alone at night.* Nicaragua ranks 86th with regard to assault and muggings, with 12% of citizens reporting such occurrences in 2008.*

Enforcement of the rule of law is unequal, ranking Nicaragua 85th, globally, while regulation of economic and commercial activity is slightly more effective, moving Nicaragua up to 79th on this variable. Within the civil service and government, capacities are less developed. Nonetheless, citizens are afforded the right to free and fair participation in the political system. Public attitudes towards government and local businesses are distrustful, with over 80% of respondents reporting widespread corruption.* Confidence in the judicial and electoral systems is also lacking, and the military holds the trust of only 54% of Nicaraguan citizens.*

Nicaraguan citizens have the freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. Additionally, citizens of Nicaragua feel their country is tolerant of difference and diversity, with over 70% stating that it is good place to live for racial and ethnic minorities and immigrants.* With regard to freedom of choice in matters of daily life, 79% of Nicaraguans are satisfied that they have control over their everyday affairs, placing the country 41st, internationally, on this variable.*

Nearly nine out of 10 Nicaraguans believe that friends and family can be relied upon for help in times of need.* Levels of religiosity, as measured by attendance at worship and the practice of prayer, are high, placing Nicaragua 25th, globally, and suggesting widespread access to religious support networks.* Three out of 10 citizens stated that they had donated to charity, 21% claim to have engaged in volunteer work, and 48% helped a stranger in the previous month, ranking Nicaragua 49th, 45th, and 50th, respectively, on these variables.* No data were available on levels on trust in Nicaraguan society, the perceived importance of friends, and group memberships.

* Data taken from the Gallup World Poll

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