Nicaragua

Spanish/Nat A lucrative deal struck between Nicaragua and Taiwan is forging an alliance in the face of fierce Chinese opposition. Nicaragua is fighting Taiwan's corner as the tiger economy seeks its own representation in the United Nations despite threats from mainland China. At the same time, Taiwan continues to plough investments worth hundreds of millions of U-S dollars into Nicaragua's struggling economy. Taiwan-run factories such as these provide succour to an ailing economy. Nicaragua, still recovering from the ravages of civil war, needs foreign investment and job creation. Unfortunately, the conditions for workers employed in such places have raised international concern. But any factory job is highly prized in a country with more than 50 per cent unemployment so people are prepared to put up with the low wages and lack of job security. Taiwan is one of the biggest investors in Nicaragua. Nicaragua's president Alberto Aleman recently visited the most famous of tiger economies in Asia and returned with deals worth 150 (m) million U-S dollars. The financial boost has its own price, and a politically sensitive one. China has threatened allies backing Taiwan in its fight for recognised economic independence. Nicaragua's government has responded with cool disregard for China's disapproval. SOUNDBITE: (Spanish) "Excellent relations, being consolidated further. They support us economically and we support them in the international forum, we support their right to a place in the United Nations." SUPER CAPTION: Alberto Aleman, President of Nicaragua Taiwanese money is deeply rooted now in hotels, construction, and in the country's overall economic infrastructure. The labour is cheap and export markets close to Nicaragua include that of the lucrative and stable U-S. SOUNDBITE: (Spanish) "The support and, at the same time, the consolidation of the union of Central American countries - we are not going to get into individual characteristics but all five countries - and Panama, are looking at how to consolidate and fight against unemployment and poverty in our head land." SUPER CAPTION: Alberto Aleman, President of Nicaragua This prawn farm is just one of the ventures currently being developed. Taiwan provides the necessary knowledge to make such operations work. Elsewhere across the country, and around the capital Managua, construction is underway for further Taiwanese business projects. The two countries' alliance is one with high political and economic stakes but, for the time being, one strong economy is steering a very fragile one into safer waters. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/916e5ac766ff23acfba776ea20f5f315 Find out more about AP Archive: http://www.aparchive.com/HowWeWork

• published: 21 Jul 2015
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