Country Strategy

Country Strategies direct and focus the wok of the Bank in a given country, gearing it toward the achievement of results and allowing various sectoral intiatives to be channeled toward a common development objective previously defined through analytical studies and a process of dialogue with the Government.

Together, IDB staff and Nicaragua determine how Nicaragua's priorities coincide with the Bank’s development strategies for the region. The product of that process is the IDB country strategy with Nicaragua , containing the Bank’s expected program for the country for 2008-2012.

Nicaragua’s Operational Strategy (2008-2012)

Nicaragua’s economic context is marked by economic growth that has outpaced population growth, but has not been high enough to bring about a substantial reduction in poverty levels. The social context is characterized by sharp inequality and a concentration of poverty in rural areas, which is particularly severe on the Caribbean coast. Given this situation, some of the development challenges facing Nicaragua are to: (i) secure a solid and stable macroeconomic framework, giving priority to deepening fiscal consolidation and reducing external vulnerability; (ii) quicken the pace of sustainable and inclusive growth, which will require comprehensive development of the rural sector and an improved framework for private investment; (iii) reduce poverty, particularly extreme poverty, which will require increased social investment (health care, housing, and water and sanitation) that is more effective and the development of a social welfare system; and (iv) build the country’s capacity for environmental sustainability and natural disaster prevention.

The general objective of the Country Strategy is to provide selective support for the Nicaraguan government in reducing and managing these vulnerabilities, which inhibit attainment of the country’s goals of growth and equity. The Bank’s contribution is expected to focus on five objectives in the government’s plan: (i) fiscal sustainability and the strengthening of public management; (ii) reliability of the electric power supply and improvement of the existing road system; (iii) management and coverage of social services, including the development of a social welfare system; (iv) productive development; and (v) institutional management for natural disaster prevention.