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					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

43%

17 % 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
       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
Per 100,000

Crime Rate
Per 100,000

      

Japan: 50.0 Switzerland: 36.5 France 35.5 Australia 26.3 US 21.7 Costa Rica 11.8 NICARAGUA 6.9

 England
 Germany  US

9,927
7,736 4,161

 NICARAGUA 1,750

Comparisons
by Interpol

Murder Rate
Per 100,000

Prison Inmates
Per 100,000

         

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

 Honduras
 El Salvador  Costa Rica

9,816
9,378 5,542

 NICARAGUA 3,913

Comparisons
by Interpol

Police Officers
Per 1,000

Prisoners
Per 100,000

     

Italy: Spain: Germany El Salvador Costa Rica NICARAGUA
* 50% unarmed

5.3 4.7 4.4 2.6 2.5 *1.2

    

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%
12%

11.41%

10%

10.10%
8%

9.69%

7.25%
6%

4%

5.11%

Deposits
2% 30-Nov-01 31-Dic-01

Loans
31-Dic-02 30 -Nov - 03

GDP GROWTH %
4 3
2.3 3.7

2
1.0

1 0 2001 2002 2003 2004

EXTERNAL DEBT RELIEF - NICARAGUA

Millions US$ (Current)

Total External Debt – December 31 1999 Total External Debt – December 31 2003

7,098 7,444 (4,907) 2,537

Pending Debt Relief
Total External Debt after Debt Relief

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
– 7 Clusters

Company Strategy, Structure and Rivalries.

 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
Energy Fisheries and Aquacultur e Tourism

Unique Natural Resources, Water And Biodiversity

Light
manufactur e and Textiles & Garments

Agribusiness and Food Procesing.

Beef and Dairy Products

Wooden Furniture and parts

Year round Agriculture and Forestry

Who are we? To whom will you be talking?
     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


				
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