What does Nicaragua call its own?
A closer look at the land, labor, capital, and entrepreneurial ability of Nicaragua
Land
Slightly smaller than New York State, Nicaragua is the biggest Central American Country coming in at just under 200,000 square kilometers. Along with all that land, Nicaragua contains 2 large lakes, one of which being the biggest in Central America. However, due to widespread pollution, these lakes have little to offer. surrounded by the waters of 2 oceans, this country boasts 910 km of coastline. 14.81% of the land is arable and is used mainly for the production of bananas, coffee, and sugarcane. Beans, rice, and corn are also grown at a high level but very little is exported. The country is rich in gold, silver, copper, and lumber as well, with so much of the mountainous region being forest. Despite all the potential for agricultural growth in Nicaragua, the exports only come out to about $3.5 billion a year.
Labor
Nicaragua has a labor force of about 2.9 million. Stemming from a population of 5,727,707 and about 60% of that population being in the working age. Nicaragua has a healthy birth rate, but does face danger with a very high risk of major infectious diseases and not enough doctors; only 37 per 1000 people. The skill of this labor force is also lacking a lot with a literacy rate of only 67.5%. These workers contribute to a national GDP of $17.7 billion.
Capital
Nicaragua's poor infrastructure demonstrates the lack of progress that the country has been able to make. There are very few buildings in the capital city of Managua that stand taller than 2 stories. Its less than 200,000 internet users shows the lack of technological progress and only 258,000 homes possess landline telephones. The lack of capital adds to the poverty situation that Nicaragua faces seeing that most houses are simply made of tin, plastic, or wood.
Entrepreneurial Ability
Being such a poor country, it is very difficult for the people to start a business. It is nearly impossible to get financing for one and on top of that, the economy is so bad that Nicaraguans generally don't spend much money on more than the necessities. However, there are definitely other contributing factors that discourage entrepreneurship in Nicaragua. Daniel Ortega, the current president rewrote the law a few years ago making himself eligible for re-election. This happened after there was election fraud when he was voted in in the previous election. His government owns the biggest businesses in the country, which serve as monopolies in their respected sectors. There is simply too much government intervention and corruption in the free market that creates minute possibilities for successful entrepreneurship. Also, the judicial system has failed to protect the property rights of its people, and without those basic property rights, a free-market system cannot function. Lastly, the Cordoba (nicaraguan currency) is constantly weaking.
Resource Change
Nicaragua plans on building a canal through the country to one up the Panama Canal and rescue itself from economic distress. The canal would start at the San Juan River, enter into Lake Nicaragua, and then a short strip of canal would be excavated on the pacific coast allowing ships to exit the lake into the Pacific Ocean. The project will take years of construction, but Nicaraguans are hopeful that it will attract investments from outsiders to further develop the country's poor infrastructure and bring economic relief down the road.
Bibliography
Resources:
http://www.google.com/imgres?q=horse+road+leon+nicaragua&hl=en&rls
http://www.google.com/imgres?hl=en&rls=com.microsoft:en-us&biw=
http://www.google.com/imgres?hl=en&rls=com.microsoft:en-us&biw=
http://www.google.com/imgres?um=1&hl=en&sa=N&rls=com.microsoft:
http://www.google.com/imgres?um=1&hl=en&rls=com.microsoft:en-us&biw=
Current Event: http://www.nicanet.org/?p=1144#more-1144
https://www.cia.gov/library/publications/the-world-factbook/geos/nu.html
http://www.heritage.org/index/country/nicaragua
http://www.google.com/imgres?q=horse+road+leon+nicaragua&hl=en&rls
http://www.google.com/imgres?hl=en&rls=com.microsoft:en-us&biw=
http://www.google.com/imgres?hl=en&rls=com.microsoft:en-us&biw=
http://www.google.com/imgres?um=1&hl=en&sa=N&rls=com.microsoft:
http://www.google.com/imgres?um=1&hl=en&rls=com.microsoft:en-us&biw=
Current Event: http://www.nicanet.org/?p=1144#more-1144
https://www.cia.gov/library/publications/the-world-factbook/geos/nu.html
http://www.heritage.org/index/country/nicaragua