Children scavengers on a rubbish tip on the outskirts of the capital, Managua - Nicaragua. © Sean Sprague (Panos)
From 2004 to 2007, DFID’s Latin America Regional Assistance Plan (RAP) worked to enhance the impact of the World Bank (WB) and the Inter-American Development Bank (IADB) on poverty reduction in two priority areas: access to markets and international trade; and better public sector management and political systems.
DFID’s Nicaragua bilateral programme shared these objectives to deliver on the markets agenda.
In January 2008, Ministers took the strategic decision to change the way DFID works in Latin America.
Funds channelled through UK NGOs working in Latin America will increase from £7 million a year to £13 million a year. Spending through multilaterals will also grow through European Commission funding, and through DFID’s 49% increase in commitment to the International Development Association (IDA) of the World Bank.
DFID’s new research programme, meanwhile, will include more than £5 million per annum on climate change and ecosystems research in Latin America.
These changes have led to the closure of DFID Central America’s office in Managua in April 2009.
Total UK aid received (2008/09): £3.9m (Source: Statistics for International Development 2009)
During 2008, DFID‘s direct bilateral programme with Nicaragua continued to provide £4 million of development assistance. This support was divided between five main programmes:
- inclusive growth known as PEMCE (Promoting Equity through Economic Growth Program)
- HIV and AIDS prevention
- governance
- support to indigenous communities affected by Hurricane Felix
- a £2 million contribution to the World Food Programme to help Nicaragua’s poorest people respond to the food crisis. DFID also provided one final year of funding (£0.6 million) to its regional programme for Central America, a proportion of which also went to Nicaragua.
From April 2009 to March 2011, DFID will continue to provide £4 million per year in development assistance to Nicaragua. It is anticipated that these funds will support a poverty reduction Trust Fund with the WB worth £2 million per year; £1.5 million per year for a second inclusive growth programme known as PROPEMCE with the Embassy of Finland; and £0.5 million per year to the Civil Society Common Fund to be channelled through Denmark.