Trade and Development A View from Nicaragua
RICARDO ALVARADO, AMBASSADOR OF NICARAGUA 14 May 2013 Estonian Roundtable for Development Cooperation
EMBASSY OF NICARAGUA - FINLAND
|
1
2013 Nicaragua Profile
Capital: Managua Languages: Spanish (Official) English, Miskito and Ethnic Languages - Caribbean Coast Population: 6.03 million 77% under the age of 39 Density: 50 people per Km2 Growth: 1.3% Workforce: 2.99 million, 49.1% underemployed Currency: Cordoba (C$24.73 x US$1 – 2013 average) Time Zone: UCT/GMT – 6 hours
Source: INIDE, Population Estimates and Projections, 2007 Revision. PRONicaragua EMBASSY OF NICARAGUA - FINLAND
|
2
Macroeconomic indicators
2006
2011
2012
GDP (US$ millions)
6,786.3
9,317.3
-
GDP per capita (US$)
1,228.8
1,582.2
-
Cumulative inflation (%)
9.4
8.0
3.39a)
Economic growth
4.2%
5.1%
-
Exports of Goods and Services (US$ mill)
1,914.1
4,016.0
-
Imports of Goods and Services (US$ mill)
3,404.3
6,125.4
-
External Debt (US$ mill)
4,526.7
4,072.6
4,127.3
Internal Debt (US$ mill)
1,336.0
1,169.9
1,200.6
EMBASSY OF NICARAGUA - FINLAND
|
3
Macroeconomic indicators 2006
2011
2012
Gross International Reserves (US$ mill)
924.2
1,892.3
Industrial Sector Production (US$ mill)
2,762.7
4,198.6
-
Agricultural Sector Production (US$ mill)
1,358.3
2,089.5
-
International Maritime Cargo
• • • •
(Thousands of Tons)
2,707.0b) 3,473.7b) -
Remittances (US$ mill)
697.5
911.6
657.6
c)
Direct Foreign Investment (US$ mills)
286.8
967.9
232.6
d)
Unemployment rate
5.6
6.3
-
Preliminary Data: a): As to September 2012. b): Data from de Central American Commission of Maritime Transport (COCATRAM). c): January-August 2012. d): January-March 2012.
EMBASSY OF NICARAGUA - FINLAND
|
4
Fight against extreme poverty
EMBASSY OF NICARAGUA - FINLAND
|
5
Food Security and Education 2007-2012
EMBASSY OF NICARAGUA - FINLAND
|
6
1,050,567 children in primary education have access to a balanced diet
•
230,000 families benefited by the “Food for Work” Program”
•
123,438 women benefited by the “Zero Usury Program”
•
208,462 producers benefited by the “Improved Seeds Program”; 388,366 acres
•
100,000 women benefited by the “Zero Hunger Program”
•
Right to free education to children and young Nicaraguans
•
Reduced illiteracy rate from 22% in 2006 to 2.8% in 2011 (UNESCO)
FAO’s recognition to Nicaragua
23 April 2013, Rome •
great efforts in the fight against hunger
•
Between 1990 and 2010
–
Prevalence of undernourishment from 55.1% to 20.1%
•
Millennium Development Goal 1
•
FAO marking this accomplishment
EMBASSY OF NICARAGUA - FINLAND
|
7
Energy, Tourism and Safety 2007-2012
•2007-2010: blackouts of up to 12 hours were eliminated •2012-2016: 532.97 MW (geothermal, wind power and hydroelectric projects) •2012-2016: expected the arrival of 6.7 million new tourists •Nicaragua one of the safest countries in the region
EMBASSY OF NICARAGUA - FINLAND
|
8
Crime in Nicaragua A surprising safe haven How Central America’s poorest country became one of its safest Jan 28th 2012 http://www.economist.com/node/21543492
EMBASSY OF NICARAGUA - FINLAND
|
9
Nicaragua and Human Development Index (UNDP) 1980 - 2012 •Nicaragua's HDI rose by 0.4%/ annually from 0.461 to 0.599 today •Today ranked 129th
EMBASSY OF NICARAGUA - FINLAND
|
10
Thankful to development cooperation
•
Slowly but surely, Nicaragua is climbing out of the cellar of the UN’s Human Development Index
•
However, unexpectedly, some donors have decided to phase out development cooperation programs affecting the fight against extreme poverty
EMBASSY OF NICARAGUA - FINLAND
|
11
Exports are growing
EMBASSY OF NICARAGUA - FINLAND
|
12
EU & Central America Association agreement
•
Three pilars •
Political dialogue
•
Cooperation
•
Trade
•
First of its kind
•
EU Parliament: December 2012
•
Trade pillar expected in 2013
EMBASSY OF NICARAGUA - FINLAND
|
13
The Association Agreement; trade pillar Evolution of Central America’s trade with the EU In billions of US$
•
Major business opportunities for both parties
•
EMBASSY OF NICARAGUA - FINLAND
|
14
In 2010, bilateral trade: €12 billion
EMBASSY OF NICARAGUA - FINLAND
|
15
EU a trading power
•15.5 % of world trade (in goods) in 2011
•Largest importer 16,1% (2011) •First exporter 14.9% (2011) •EU-27 received €241.7 bn in FDI 2011 (ranking 1st before US €226.9 bn) Agreements in force: Mexico, Chile, Cariforum Negotiations concluded: Central America, Colombia, Peru Negotiations ongoing: Canada, Mercosur Negotiations Under consideration: US
EMBASSY OF NICARAGUA - FINLAND
|
16
EU & Central America Association agreement •
CA liberalizes 69%
•
Savings for EU exporters: € 87 millions/year in custom duties
•
Expected gains for CA: € 2.6 billions
•
Gains •
Fruits, vegetables, nuts: Panama and Costa Rica
•
More competitive textile sector: Guatemala and Nicaragua
•
Transport equipment: El Salvador and Honduras
EMBASSY OF NICARAGUA - FINLAND
|
17
Protecting intellectual property rights Geographical Indications Examples of European GIs Champagne Cognac Polish Vodka Scotch whisky Cava Roquefort Parmiggiano Reggiano Feta Mozzarella di Bufala Campana Wines from the Bordeaux, Porto, Ribera del Duero… Examples of Central American GIs Café de Marcala from El Salvador Café Antigua from Guatemala Cheese from Nagarote and Chontales from Nicaragua...
EMBASSY OF NICARAGUA - FINLAND
|
18
Closing the EU-CA Technology Gap
Patent applications to the EPO/ million habitants •Sweden (306.7) •Germany (265.6) •Denmark (241.7) •Finland (217.7) •Estonia (38.1) •Latvia (10.7) •Lithuania (6.5)
EMBASSY OF NICARAGUA - FINLAND
|
19
Enhancing Scientific, Research and Innovation Cooperation
28. SANTIAGO DECLARATION CELAC-EU Dialogue Jan 2013
EMBASSY OF NICARAGUA - FINLAND
|
20
Central America 28. SANTIAGO DECLARATION CELAC-EU Dialogue, Jan 2013
Geographical location
We stress the importance of triangular, south-south and other modalities and mechanisms of cooperation. We also stress the importance of cooperation for capacity-building and greater involvement of local and indigenous communities as well as corporations, higher education institutions and research institutes for development initiatives that support, among others, high quality knowledge, entrepreneurship and innovation in the pursuit of sustainable development.
EMBASSY OF NICARAGUA - FINLAND
|
21
•
Advantage for trade
•
Nature’s violent phenomena • Preventive mechanisms
EU and Central America Association Agreement Some projected results
EMBASSY OF NICARAGUA - FINLAND
|
•
Small GHG emissions
•
CO2 emissions (+0.0 %)
•
Wage increase
•
Poverty reduction
•
Increase in investments and FDI
•
Deeper integration & positive economic impact
•
Increased trade, more specialization
•
Long-run beneficial effects
22
Central America is a great investment story – buy now
By James McKeigue Feb 18, 2013 www.moneyweek.com
Gran Canal de Nicaragua
Maersk Triple E
By James McKeigue Feb 18, 2013 www.moneyweek.com EMBASSY OF NICARAGUA - FINLAND
|
23
China Invests in Central America
IPS: “From satellites to inter-oceanic canals, the most innovative or ambitious investments in Central America are coming from China” IPS: “…China’s presence is much more ambitious in Nicaragua, where President Daniel Ortega signed a memorandum of understanding in September with the recently created Hong Kong-based HK Nicaragua Canal Development Investment Co to finance and build a canal linking the Caribbean Sea and the Pacific Ocean…” http://www.ipsnews.net/
EMBASSY OF NICARAGUA - FINLAND
|
24
KAUPPALEHTI/ TIISTAINA 25. SYYSKUUTA 2012
EMBASSY OF NICARAGUA - FINLAND
|
25
Tourism
European visitors to Central America up by more than two per cent in 2012 www.traveldailynews.com
EMBASSY OF NICARAGUA - FINLAND
|
26
Emerging Power Markets In South And Central America To 2020 Mar. 6, 2013 www.onlineresearchreports.com
EMBASSY OF NICARAGUA - FINLAND
|
27
Estonia – Central America Trade
ESTONIA Exports - Imports Euros, 2012 Guatemala 59557 1874 El Salvador 1491 14297 Honduras 47617 12676 Nicaragua 34907 6459 Costa Rica 337224 562198 Panama 115681 12448 Source: Statistical Office of Estonia www.stat.ee
EMBASSY OF NICARAGUA - FINLAND
|
28
Opportunities for Estonian companies
ESTCube-1, the first Estonian satellite, launched on 7 May 2013
A world leader in e-government
EMBASSY OF NICARAGUA - FINLAND
|
29
Desde Estonia llegó Jüri Talvet
Saksamaa unenägu, aastal 1988
Inspiratsiooni eest tänades nikaraagua luuletajat Joaquín Pasost Sources: http://www.elnuevodiario.com.ni/festival-de-poesia/277913
http://talvet.edicypages.com/et
EMBASSY OF NICARAGUA - FINLAND
|
30
How to achieve sustainable development?
Finland *second best country to be a woman Nicaragua *9 out of 135 worldwide in the Gender Gap index 2012 (Sources: Iltalehti, weforum, The Globe and Mail)
Estonia *best place to be a female engineer (Sources: Iltalehti, weforum, The Globe and Mail)
EMBASSY OF NICARAGUA - FINLAND
|
31
Parhaat maat el채채 naisena: 1. Islanti (viime vuoden sija 1.) 2. Suomi (3.) 3. Norja (2.) 4. Ruotsi (4.) 5. Irlanti (5.) 6. Uusi-Seelanti (6.) 7. Tanska (7.) 8. Filippiinit (8.) 9. Nicaragua (27.) 10. Sveitsi (10.) 60. Estonia (52.)
Nicaragua fighting hunger
FAO: “Nicaragua has advanced most in overcoming hunger in Latin American countries”… “Extreme poverty and hunger are visibly decreased in the country” FAO G. Director Jose Graziano da Silva: "The progress is a clear proof that we can eradicate hunger if the countries have a purposeful action" “Nicaragua has been selected as one of the pilot countries for priority delivery on Strategic Objective MDG1 (contribute to the eradication of hunger, food insecurity and malnutrition) under the new FAO Strategic Framework”
EMBASSY OF NICARAGUA - FINLAND
|
32
Nicaragua: Women On The Frontline In The Fight Against Hunger (WFP)
●
Sustainable development
●
Supporting small farms to end hunger
Agricultural research and development (R&D) ●
EMBASSY OF NICARAGUA - FINLAND
|
33
Nicaragua offers access to a market of over 1,500 million consumers as a result of FTA agreements with several countries
EMBASSY OF NICARAGUA - FINLAND
|
34
EMBASSY OF NICARAGUA - FINLAND
|
35