NICARAGUA: ECONOMY SUFFERING DUE TO HURRICANE

• published: 21 Jul 2015
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Spanish/Nat With crippling debts of over 8 (b) billion U-S dollars, the Nicaraguan government is struggling to recover ten months after Hurricane Mitch tore through the country. A recent 35 percent price hike on the cost of public transport is the latest in a series of increases aimed at tackling the spiralling debt. But with 86 percent of Nicaraguans classified as poor or living in conditions of abject poverty - according to a recent government report - most cannot afford the increase. The raise in the cost of public transport is the latest in a series of increases the leadership of President Arnoldo Aleman has announced this year. So far electricity, water, telephones, bread and other basic products have increased. The new prices on Nicaragua's buses have been received wearily by a population already struggling in a country crippled by a massive foreign debt. In a poll carried out last week 42 percent of the population thought that bus prices were already expensive. Only 13 percent thought a price increase would lead to a better service. Now, users will pay C$1.75 cordobas (15 U-S cents) in the centre of Managua, up from C$1.40 (12 U-S cents). This will amount to C$2.00 cordobas (17 cents) in the suburbs. A group calling itself the Community Movement of Nicaragua (Movimiento Comunal Nicaraguense) is attempting to convince people to refuse to pay the 35 percent difference. Many can't. SOUNDBITE: (Spanish) "I can't afford to ride the bus. The salaries are too small. The buses are now too expensive, everything is too expensive. Prices rise every day. I can't do anything." SUPER CAPTION: Voxpop SOUNDBITE: (Spanish) "Everything goes up. Everything. The food, beans, oil, everything goes up." SUPER CAPTION: Voxpop SOUNDBITE: (Spanish) "They gave me this piece of paper here, look (paper says don't pay more than C$1.40)." SUPER CAPTION: Voxpop With foreign debts in excess of 8 (b) billion U-S dollars, the country is struggling. SOUNDBITE: (Spanish) "A government publication released recently, at the end of May said that 86 percent of the population is poor or lives in conditions of poverty. This means that for every one hundred people only fourteen are not poor." SUPER CAPTION: Doctor Oscar Rene Vargas, Sociologist The situation was made all the more desperate following Hurricane Mitch. Tens of thousands died or disappeared in the flooding and mudslides that followed the storm last October. Over two million people were left homeless and an estimated 10 (b) billion U-S dollars in damage was caused in Honduras and Nicaragua. In Nicaragua alone, the cost of rebuilding is estimated at 1.4 (b) billion U-S dollars. SOUNDBITE: (Spanish) "Everything is more expensive. We cannot work anymore. It is all too expensive." SUPER CAPTION: Anciana Jacinta Davila, Stall Owner According to United Nations figures over 90 percent of the population are under-nourished, eating 1300 caloreies per day compared to the recommended 2200. SOUNDBITE: (Spanish) "Everything is more expensive. Everything is more expensive. We don't have enough to eat." SUPER CAPTION: Voxpop Earlier in the year the Interamerican Development Bank vowed to commit 3 (b) billion U-S dollars over the next four years to help Central American countries recover from the devastation of Hurricane Mitch, the worst Atlantic storm in 200 years. The European Union, one of the biggest doners to the region has granted a total of 253.7 (m) million U-S dollars over the next five years. With price increases looking set to continue, the help is desperately needed. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/8d0696c3098efa0ca0060afb629a1b8e Find out more about AP Archive: http://www.aparchive.com/HowWeWork