The government is touting the structural adjustment plan as the solution to Nicaragua's economic crisis, focusing, as usual, on macroeconomic indicators such as inflation, with virtually no regard for the negative impact that these policies will have on the daily lives of the people. Nicaraguan economists agree that even though the ESAF II is a "bitter drink that is hard to swallow" it is the only alternative to maintain economic stability. Many have warned, however, that these policies may further threaten social stability. At the completion of this ESAF II Nicaraguan hopes to be included in a program for highly-indebted countries that would allow for the reductions of 80% of the balance of the foreign debt. Although debt reduction is desperately needed, this plan may not be the panacea that it is painted as being, since it would lock Nicaragua into another six years of structural adjustment.

Reprinted from: Nicaragua Network Education Fund, Nicaragua Monitor, February 1998. This publication may be reproduced in whole or in part to educate US citizens about Nicaragua and US policy.