U.S. Aid Cut Nicaragua

U.S. Aid Cut To Nicaragua Hurts

Managua - Since the United States decided last week to cut its aid for Nicaragua, leaders and government of the Latin American country have been under fire as the move affects the life of tens of thousands of people.

The board of the Millennium Challenge Corporation, a U.S. taxpayer-funded operation to fight poverty in developing nations, announced last week it had cut 62 million dollars from a program for Nicaragua, citing concerns about democracy, rule of law and a free market economy.

Nicaraguan President Daniel Ortega accused U.S. ambassador Robert Callahan of trying to unite "oligarchy political forces" in the country.

Meanwhile, Nicaraguan politicians and businessmen from the opposition blamed directly the president, who rejected the blame by saying that the opposition went to the U.S. to lobby for the aid cut.

Roger Arteaga, leader of the American-Nicaraguan Chamber of Commerce (AMCHAM), said what Nicaraguan businessmen from the opposition did was to lobby for the aid continuity.

The unfinished quarrel has no way to change the reality that thousands of Nicaraguan peasants are to be affected because they are not going to get credits.

When the 62-million-U.S. dollar aid for pending projects in Nicaragua was canceled, the construction of three highways and the handing in of some 30,000 title deeds were suspended.

Ortega announced that his Venezuelan counterpart Hugo Chavez would give about 50 million dollars, through the Bolivian Alternative for the Americas (ALBA), to continue these projects.

More than 15 million dollars will be allocated to more than 140,000 families in the west of Nicaragua, 19 million dollars will be used to build highways, and a bit more than 16 million dollars will be used for the construction of two rural roads, Ortega said.

The Nicaraguans, mainly the opposition, ask whether Chavez' promise enough to continue the projects.

Eduardo Montealegre, a Nicaraguan politician, said the Venezuelan cooperation would be only on paper.

Montealegre also doubted the transparent management of the resources since the ALBA aid was said to be managed by a private company, whose character, according to him, would reduce the credibility of the aid.

The Millennium Challenge Corporation was created on Jan. 23, 2004, when Ortega was leader from the opposition. The U.S. program has also developed in countries like El Salvador, Honduras, and Bolivia.

"They (the United States) compromised with the people and with me, because I was not president of Nicaragua when the corporation was created," Ortega said.

The corporation has assisted the milk industry and tax collection programs in the west of Nicaragua, while its credits have benefited more than 5,000 businessmen on their careers.