Nicaragua’s Ortega ‘must reform or face downfall’

MANAGUA: US economic sanctions will provoke the fall of President Daniel Ortega’s regime if the autocratic leader doesn’t implement democratic reforms demanded by Washington, analysts say.

Already subject to US sanctions himself, Ortega’s vice-president wife Rosario Murillo and national security adviser Nestor Moncada were hit with sanctions on Nov 27 as Washington stepped up the pressure on a regime accused of human rights abuses and authoritarian rule.

Rights groups say at least 320 people have been killed in a brutal government crackdown launched in response to the escalation in April of street protests, initially against a now-ditched pension reform.

Washington has approved measures that will see it oppose international loans to Nicaragua until Ortega enacts reforms that guarantee free and fair elections, strengthens the rule of law, combats corruption and protects basic rights such as free speech.

The US measures “are aimed at provoking the social implosion of the government’s foundation, both at a central and municipal level,” said sociologist Oscar Vargas.

He says the sanctions would create “a scenario in which the economy would fall into a deep recession”.

Growth projections for this year have been slashed to just one percent from 4.9% prior to the outbreak of trouble in April.

The United States is the Central American country’s most important trading partner, the destination of more than half of its exports and the source of 50% of remittances sent home by Nicaraguans living abroad.

Retired general Hugo Torres says Ortega cannot afford to ignore the US pressure, including Washington’s assertion that Nicaragua is a threat to US security.

To do so would be to sign his own political death warrant.