Marc Litvine, head of operations for EuropeAid in Central America, helps inagurate a water treatment plant in Ciudad Sandino outside Managua. Photo by: European Commission

• Email
• Post a Comment (0)
• • 
  • 
  • 
  • 
  • 
  • 
  • 
  • 

Relations between Europe and Nicaragua today are strained. Europe blocked budgetary support to the Sandinista government following the November 2008 municipal elections, which many in the West viewed as fraudulent.

Nonetheless, EuropeAid decided not to pull its seven-year, 214 million euro investment out of Nicaragua. EuropeAid currently operates approximately 50 projects throughout the country.

The agency's Central America regional programs, which amount to 70 million euros, are also managed from Managua. This bureau includes about 70 full-time staff members, about a third of whom are European nationals.

Devex spoke with Marc Litvine, EuropeAid's head of operations for Central America , about the development scene in the Central American country. Litvine also discussed the European Union's presence in Nicaragua and the challenges of doing development work there amid a tense political environment.

Who are the major funders of development in Nicaragua?

Venezuela is largest funder in Nicaragua by far. However, all the money coming Venezuela is from the private sector, so in official aid, Venezuela is giving very little money. After Venezuela, it's the Inter-American Development Bank and the World Bank. The largest [traditional] bilateral donor is USAID. Spain is by far the largest European donor. Aid from Spain includes the [Spanish] central government and autonomous communities. Japan also has a presence.

What are EuropeAid's development sector emphases in Nicaragua?

There are three are main sectors: One is governance, the second is education, the third is a mix of economic and trade issues. These three sectors follow previous [EuropeAid] priorities. We introduced trade issues recently because we are negotiating a trade agreement in Central America.

Nicaragua is the weak country in terms of trade. The investment climate is worse than other countries [in Central America] including those with more violence. They have to update their regulations; they have to try to have export policies, to bring forth small and medium-sized enterprises.

We also have a lot of thematic budget lines. We have a lot of work in food security. We have a very active commitment to nonstate actors, which are mainly NGOs, local and international. We are also focused on human rights, immigration and the environment.

Regional cooperation for us is very important, and we give priority to these projects because it helps the region. We are mainly focused on regional economic and political integration and institutional support. Security projects are also part of regional integration.

In terms of bilateral aid, we have budgeted 214 million euros from 2007 to 2013. Our delegation is also in charge of the regional envelope, which is 70 million euros. We are hoping to increase it to 90 million euros. Regional cooperation is very important to us. We are focused on regional integration.

How have the disputes over the 2008 municipal elections impacted EuropeAid's work in Nicaragua?

There is a political problem between the European Union and Nicaragua. Last November 2008, there was proof of widespread fraud. So the European Union suspended money for budget support for the free disposal [of the Nicaraguan government]. For the moment, that aid is suspended. It's been suspended since December.

We are in discussion to see what the result will be, but we think that money from the tax payer cannot be used against the rule of law and human rights, and this includes people being able to freely elect their mayors.

Our other current cooperation is continuing; what is blocked is budget support. It's a big problem for Nicaragua because the crisis is impacting the country. The Netherlands, Switzerland and Norway are exactly the same as us. They also suspended budget support. The U.S. suspended the [MCC's assistance to Nicaragua]. We have big concerns about Nicaragua.

How do these conflicts impact on-the-ground program implementation?

Our main partner for bilateral aid is the government. We have a problem with them about project ownership. Ownership doesn't have the same definition for us and for Nicaragua. We consider that ownership is really that cooperation belongs to all the stakeholders. That's a big difference we have have with the government. Involving stakeholders is not really their priority. They don't like NGOs. They want to have their own system, which is totally partisan. This is not civil society. The government believes that they own the program.

But civil society is very diverse and very active - it's working well. But on bilateral cooperation, there are difficulties. Some sectors still are very good - education … working with the police and the army. Those sectors are seen by the population as quite democratic. Trade is not bad, sometimes in health. The rest is quite difficult. Working on decentralization is quite difficult.

How does EuropeAid work with civil society organizations in Nicaragua?

All Central America EuropeAid contracts have to be run through Nicaragua. Nicaragua deals with all Central America except Guatemala, and it also deals with regional cooperation. Regional cooperation is going well.

[For Nicaraguan NGOs that want to work with EuropeAid] we ask for concept notes, and we do calls for proposals at the local, national and international levels. We assess the concept notes and select some applicants for a full proposal. A full proposal is a lot of work.

Concept notes are the most important step [in applying for support from EuropeAid]. Because in four pages, you have to describe what you hope to do and what you hope to accomplish. These four pages must be very well-done.

[EuropeAid's requests for proposals are] published on the radio, in newspapers in Nicaragua, and we also contact networks of organizations to announce them. They are also published on the delegation Web site. We make quite a widespread announcement.

Nicaragua is a paradise for NGOs. For private companies, it's a little bit more difficult because justice is not independent. That's basic to having a good investment climate.