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Weekly Report - 02 February 2012 (WR-12-05)

NICARAGUA: Donors begin to flex their muscles

The international community has finally begun to take a stand in response to the 6 November general elections. Earlier this month, Germany announced it was slashing aid as a result of the election, which was controversial both due to the dubious nature of President Daniel Ortega’s candidacy (which violated a constitutional ban on consecutive presidential re-election) and allegations of fraud regarding the electoral process. Less than a week later, the US warned that “aggressive scrutiny” would be applied to “project loans at the Inter-American Development Bank [IDB] and World Bank”. Yet, ultimately, Ortega is unlikely to lose much sleep over these moves given the substantial support he receives from his close ally and benefactor, Venezuela’s President, Hugo Chávez.

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