September 22-23, 2006: US Congressman Theatens Less Aid for Nicaraguans If Ortega Wins Elections

Congressman Dan Burton, Chair of the Western Hemisphere Subcommittee of the House’s Committee on International Relations, is in Managua, Nicaragua on a two-day visit to meet with presidential candidates Eduardo Montealegre and Edmundo Jarquin. The two US-backed candidates are running against Sandinista leader Daniel Ortega, who polls suggest may win the presidency on November 5. Montealegre is a Harvard-educated banker; Jarquin, a Sandinista dissident. [Associated Press, 9/22/2006] During a press conference, Burton warns that the US could cut $175 million in aid to Nicaragua through the Millenium Challenge Account and block Nicaragua’s participation in the Central American Free Trade Agreement (CAFTA) if Ortega wins the elections. He also states that if Ortega creates a state agency to process remittances from the US, as he has promised, Nicaraguan families might end up earning “much, much less money” and would experience “a significantly reduced quality of life.” Ortega has pledged to “make sure that Nicaraguans get 100 percent of their remittances.” Transfers from family members working in the US are usually sent through private companies such as Western Union, which charge a hefty commission. Remittances are the primary source of income for many families and accounted for 16.9 percent of the country’s GDP and 99 percent of its exports in 2005. [CounterPunch, 10/5/2006]