Venezuela Offers to Replace U.S. Aid to Nicaragua

By Karla E General
Impunity Watch Reporter, North America

MANAGUA, Nicaragua - The Venezuelan administration of Hugo Chavez has offered Nicaragua $100 million in aid to counter the effects of a $64 million freeze in anti-poverty aid by the United States. The U.S. freeze on aid to Nicaragua comes amid allegations of fraud in the November 9 mayoral elections where President Ortega's Sandinista party won 105 of the 146 mayoral seats. The European Union has also withheld $54 million in budget support.

The U.S. said it will freeze aid to the Millennium Challenge Corporation (MCC), a U.S. development program that helps developing countries that show a commitment to good governance, economic freedom and the elimination of extreme poverty. "We had hoped, for the sake of the Nicaraguan people, that the government would continue the country's trend toward peaceful, democratic and credible elections," said Millennium Challenge executive director John Danilovich. "I am afraid recent evidence shows that this is not the case."

President Chavez offered the $100 million in aid to the poverty-stricken country with no conditions attached, but as an affirmation of solidarity against creating government free from U.S. influence. Chavez and Ortega have both stated that the U.S. halting MCC aid is akin to "taking the chains off" and Nicaragua is now a "little bit freer" as a result.

Venezuela's financial contribution is not the only alternative to U.S. aid. Nelson Artola, president of the government's Emergency Social Investment Fund states: "We have friends, we have allies who, with just one signature, can replace this charity the U.S. was giving to us to attack misery and poverty in the region."

For more information, please see:

Voices of America - U.S. Stops Aid to Nicaragua Over Election Concerns - 26 November 2008

Associated Press - U.S. Suspends Nicaraguan Aid After Disputed Election - 27 November 2008

The Tico Times - Ortega Says Nicaragua 'Freed' of U.S. Aid - 27 November 2008

International Herald Tribune - Nicaragua: Venezuela Has Offered to Replace U.S. Aid - 2 December 2008