State-Society and Donor Relations: The Political Economy of Domestic Resource Mobilization in Nicaragua

Nicaragua’s current resource mobilization strategy rests on taxes, fiscal revenues from mining, foreign direct investment (FDI) and international aid. Depending on the historical periods, legal reforms, and policy changes, the relevance of state financing sources has varied, except for international aid. Nicaragua has been a main recipient of overseas development assistance (ODA). ODA has played a pivotal role in the country’s public finances and approach to social development. Traditional ODA patterns, however, are currently changing.

Gloria Carrión is Director of the Research Programme on Political Economy and Inclusive Development at the Fundación Internacional para el Desafío Económico Global (FIDEG) in Managua, Nicaragua.