Presentation by
Norman Caldera Cardenal
Minister of Foreign Affairs
München, 30 September 2004
Nicaragua: the Heart of
Central America,
“So small, yet so large”
Old advertisement?
 I don’t know who you are!
 I don’t know your region!
 I don’t know your
country!
 I don’t know your country’s
reputation!
 Now, where is it
that you want me
to risk my hard-earned
money?
FTAA
After they discarded LAFTA!
 Free Trade Area of the
Americas, (North, South,
and Central, as well as
The Caribbean).
 Target date: negotiations
end 2005. In force, 2007.
 Before events in South
America-the Caribbean,
(Haiti and, Venezuela.)
 Brazil now wants Mercosur Customs Union and
SAFTA ere FTAA.
CAFTA,
including
Nicaragua
 Neither Mexico, nor
South America!
 2 ½ hours by air from
Miami, Houston or New
Orleans.
 Shores on the Pacific
Ocean and the Caribbean
Sea.
 40 million people with
access to the largest
consumer market in the
world!
Was CAFTA*, a return to Geopolitics?
 2003 Trade with US was
over US$ 31 Billion.
 3rd in the Hemisphere
after Canada and México.
 1.5 times the sum of
Russia, India and
Indonesian trade with US.
 7 times as much as US
Trade with Chile.
 Negotiated 2003, ratified
2004. In force, 2005.
 Regional Technology
exports to the US are US$
100 per cápita.
*Guatemala, Honduras, El Salvador,
Nicaragua, Costa Rica and Dominican
Republic.
Central America : Exports by Regions 2001
17 %
43%
2%
29%
9%
Central America
 8 elected presidents who know each other well.
Saca – 2004-2009 Maduro 2002-2006 Bolaños 2002-2007 Berger 2004-2008
Pacheco 2002-2006 Torrijos 2004 2009
 “Democratic Security”, reasonable balance of
forces.
 Defense of Human Rights in the hemisphere.
 A Customs Union in the Making: late 2004.
 Belize, member, Dominican Republic, associate.
 Mexico has applied for membership.
Central America
under CAFTA
 Intellectual Property Rights agreements in place;
 Measures to foster Competition, included.
 Environmental Regulations in place.
– We all have signed the Kyoto Agreement and are partners in CONCAUSA.
– TPA asks for enforcement of existing regulations, not new ones.
 Labor practices under ILO scrutiny.
– Nicaragua, is party to 54 ILO agreements, the US is party to less than 15.
 CAFTA legal bridges being built to provide
continuous legal highway.
 “One of the two most promising regions in the
World”: Michael Porter.
Nicaragua
Single digit inflation since 1997
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Completion Point of HIPC reached by IMF 24 Jan 2004.
Safest neighborhoods: lowest crime rate in the region.
B.I.Ts with US, Canada, Netherlands, France, etc.,
Nicaraguan “Mountain Grown Coffee” hit world record
prices in 2004 internet auction. Over 12 US$ per lb.
Check out our Cigars in “Cigar Aficionado”!
Our Rum “Flor de Caña” is well-known worldwide.
Route 66 Jeans and Docker’s made there! GAP, Old Navy
and even Banana Republic are approved by GAP. (not by
us, but there is freedom of expression in Nicaragua)
Automobile spare parts for the US market, by Yasaka.
Export supply mix is short, but excel at what we do!
Nicaragua.
 Alternative Dispute Settlement Mechanisms
(Arbitration) accepted. CIADI, MIGA, Panama, New York.
 Anticorruption Drive is the Real McCoy:
– Former Finance Vice-Minister condemned 10 years
for graft and corruption
– Former President condemned 20 years for Money
Laundering
– Both from the same party as the President.
 Tax Collection has gone up.
 Our budget is in internet for all to see and follow
 Official Development Assistance is also in
internet (www.cancilleria.gob.ni/sysoda)
 “Nicaragua’s Pacific Coast property is like
California but at fraction of the cost.” Business
Week 1999.
Comparisons
by Interpol
Suicide Rate
Crime Rate
Per 100,000
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Japan:
50.0
Switzerland:
36.5
France
35.5
Australia
26.3
US
21.7
Costa Rica
11.8
NICARAGUA
6.9
Per 100,000
 England
9,927
 Germany
7,736
 US
4,161
 NICARAGUA 1,750
Comparisons
by Interpol
Murder Rate
Per 100,000
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World:
Latinamerica:
El Salvador:
Guatemala
New Orleans
D.C.
Atlanta
Chicago
Costa Rica
NICARAGUA
8.86
22.90
117.00
45.00
43.30
41.80
31.70
21.90
7.20
3.40
Prison Inmates
Per 100,000
 Honduras
9,816
 El Salvador
9,378
 Costa Rica
5,542
 NICARAGUA 3,913
Comparisons
by Interpol
Police Officers
Prisoners
Per 1,000
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Italy:
5.3
Spain:
4.7
Germany
4.4
El Salvador
2.6
Costa Rica
2.5
NICARAGUA *1.2
* 50% unarmed
Per 100,000
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US
Canada
Scotland
Germany
NICARAGUA
682
123
119
96
57
Comparisons
Army Size
International Institute for Strategic Studies
 Nicaragua’s Army went from 120,000 to
14,000. (1987-1993)
 Number 129 of 132 for military growth.
 Nicaragua ranks below Holland in Soldiers
for every 1,000 population.
Comparison
by the CIA factbook
Military spenditure
 Mexico:
 Guatemala:
 Costa Rica:
 NICARAGUA
US$ 4 billion
US$ 120 MM
US$ 69 MM
US$ 26 MM
 Military spending per person:
 NICARAGUA US$ 5.18 COSTA RICA: US$ 17.99
18%
WEIGHTED AVERAGE INTEREST RATES
17.09%
16.95%
16%
14%
12.44%
11.41%
12%
10%
10.10%
9.69%
8%
7.25%
6%
5.11%
4%
Deposits
Loans
2%
30-Nov-01
31-Dic-01
31-Dic-02
30 -Nov - 03
GDP GROWTH %
4
3.7
3
2.3
2
1.0
1
0
2001
2002
2003
2004
EXTERNAL DEBT RELIEF - NICARAGUA
Millions
US$
(Current)
Total External Debt – December 31 1999
7,098
Total External Debt – December 31 2003
7,444
Pending Debt Relief
Total External Debt after Debt Relief
(4,907)
2,537
Debt Reduction Effort
(Million US$)
14000.00
12000.00
10000.00
8000.00
6000.00
4000.00
1975
1990
1999
2004
1985
1995
2000.00
.
0.00
1975
1990
1999
2004
National Vision
National Development Plan
 Controlling transaction costs and
nurturing a stable Business
Environment.
 Supporting Cluster Development at
the micro-level
Company Strategy,
Structure and Rivalries.
– 7 Clusters
 Foreign Service in Trade
Factor
and Investment Promotion. Conditions
 President and Ministers
answer e-mail from
Investors and Importers.
 Presidente@Presidencia.gob.ni
 Norman.Caldera@cancilleria.gob.ni
Demand
Conditions
Related Industries
Upstream, downstream
Priority Clusters 2002
LOCATION
Unique Natural
Resources, Water
And Biodiversity
Fisheries
and
Aquacultur
e
Energy
Tourism
Light
manufactur
e and
Textiles
& Garments
Agribusiness
and Food
Procesing.
Wooden
Furniture
and parts
Year round
Agriculture and
Forestry
Beef and
Dairy
Products
Who are we?
To whom will you be talking?
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Enrique Bolaños: President. BSE, Engineering, University of St. Louis.
Norman Caldera: Foreign Minister: BBA, University of Texas, Austin. (McCombs)
MIM, VPI.
Mario Arana. Minister of Trade and Industry, Ph.D. Economics, University of Texas,
Austin.
Eduardo Montiel. Minister of Finance: DBA Harvard University.
Eduardo Montealegre, MBA, Harvard Business School. Chief of Staff of the President.
José Antonio Alvarado: Minister of Health: J.D. Harvard.
Silvio DeFranco Minister of Education: PDS, Kennedy School, Harvard.
Mario DeFranco: Chief Economic Adviser: PDS, Kennedy School, Harvard.
Carmen Largaespada, Minister of the Family, Ph.D., University of Alberta, Canada
María Dreyfus Ulvert, Trade Commissioner in Miami, MBA, Columbia University.
Guillermo Pérez-Argüello: Chief of Protocol M.A. Oxford.
Lester Mejía: Ambassador to Belgium: Ph.D. International Law, Université de Bordeaux.
Salvador Sacasa, MBA PhD, Candidate. Diplom Econom. Hochschüle für Ökonomie. Berlin. Assistant to FM
Francisco Fiallos: Ambassador to Costa Rica, Master of Law, Harvard Law School.
Salvador Stadthagen: Ambassador to Washington: M.P.A., Kennedy School, Harvard.
José René Gutiérrez Huete, Ambassador to Guatemala, Master of Law, Harvard Law School.
Marco Narváez: President of the National Finance Institute: MBA, U. Chicago.
Frank Kelly: President of the Communications Regulating Board: B.S.E. West Point, MBA Harvard.
Raul Barrios: Delegate to the IDB: MBA, Wharton School of Business, University of Pennsylvania.
Ariel Granera: Adviser to Foreign Minister: M.S. Sorbonne University, Paris.
Mario Flores: Vice-President of Central Bank: M.S. Economics, University of Louvaine, Belgium.
Luis Pereira: Manager, Pro-Nicaragua: MBA, Harvard.
Sampling of Pioneers already in Nicaragua!
* United Brands
* Greenstone Resources
* Parmalat
* Nestle S.A.
* Fortex Industrial
* BellSouth
* China United Garments
* Shell Oil
* Hampton Inn
* Esso Standard Oil
• Great King Garments
• America Mobil
* Nien Hsing Textiles
* BATCO
* Xerox
* Kativo
* Chiquita Tropical Products
* Texaco.
* Barceló Hotels
* Holiday Inn
* Nabisco
* Bayer
* Unión Fenosa
* Swedtel
New answers!
 Now you know
who we are!
 Now, you know
about CAFTA!
 Now, you know
where we are!
 I hope you
know our
reputation!
 See you in
Managua!!!
THE END