Country: Nicaragua

Committee: UNDP
Topic: Analyzing regional and global disparities in human development and proposing measures to adress gaps
in education, healthcare and income.

The Human Development Index measures three basic dimensions of human development: long and healthy life,
knowledge, and a decent standard of living. Four indicators are used to calculate the index: life expectancy at
birth, mean years of schooling, expected years of schooling, and gross national income per capita. Nicaragua's
HDI value for 2021 is 0.667, which put the country in the medium human development category, placing it at
126 out of 191 countries and territories. Between 1990 and 2021, Nicaragua's HDI value changed from 0.490 to
0.667, a change of 36.1 percent. Between 1990 and 2021, Nicaragua's life expectancy at birth changed by 10.7
years, average years of schooling changed by 3.1 years, and expected years of schooling changed by 5.2 years.
Nicaragua's RNI per capita changed by approximately 86.2 percent between 1990 and 2021.
As the world approaches the halfway point on the path towards the completion of the 2030 Agenda, record-high
and increasing inequalities are hindering progress towards the achievement of the SDGs, which focuse on the
reduction of inequality, poverty and hunger, and aim to improve gender equality and access to education,
healthcare, etc... Moreover, inequality is not only a major obstacle to the realisation of human rights, it is also
lethal.

Over the past decade, Nicaragua has experienced economic growth above the Latin American average with an
annual growth rate of 4%. According to official statistics, the fight against poverty seems to bring results.
However, also due to the political and social crisis of recent years, Nicaragua still has strong inequalities
between rich and poor people. More than 40% of the population lives in poverty.The GII measures gender
inequalities (the loss of human development due to inequality between female and male outcomes) in three key
dimensions: reproductive health, empowerment and labor market. Reproductive health is measured by maternal
mortality ratio and adolescent birth rates; empowerment is measured by the shares of parliamentary seats held
and the population with at least some secondary education for each gender; and labor market participation is
measured by labor force participation rates for women and men. Nicaragua has a GII value of 0.424, ranking it
102 out of 170 countries in 2021. .The Central Bank of Nicaragua also informs that the negative economic
performance recorded in 2018 is mainly due to the collapse of foreign direct investments (-63.2%) and tourism
(-41.1%).
As regards education, the main problems faced by Nicaragua are the insufficient school coverage, especially for
the primary education level (more than 15% of the national population between 3 and 18 is outside the
education system); high rates of school absenteeism due to low income level (26% for primary school, 37% for
the secondary one); high index of prolonged school attendance (only 41% of children who start first grade
complete primary school within 6 years); lack of acquisition of adequate basic skills in reading and writing
The Nicaraguan healthcare system is public but the coverage of basic healtcare services is not sufficient for the
entire population, in particular for those living in conditions of extreme poverty and in rural areas. Between 35%
and 40% of the population lack access to health services, and 78% of the economically active population has no
health insurance.
According to the United Nations Industrial Development Organization, the key to reduce poverty is “to mobilize
private and public investments around a long-term inclusive and sustainable industrialization plan for export-
oriented and job-creating industrial capacity.” The following are three areas that both keep the U.N.’s policy
recommendation in mind and hold promise in reducing Nicaragua’s poverty rate. In 2024 and over the medium
term, real GDP(Gross domestic product) is projected to grow by about 3½ percent, supported primarily by
private consumption. These projected growth rates remain below historical averages (2000-17) of 3.9%, given
the cautious recovery in investment, limited approved new official financing lower and lower labor contribution
to growth due to recent emigration.The fiscal policy stance for 2024 is appropriate and the mission welcomes
the authorities’ commitment to strengthen the fiscal position and safeguard fiscal sustainability. In 2024, the
public sector is expected to continue to maintain a small deficit at the consolidated level, as the state-owned
enterprises increase investment and deficits. Over the medium term, a sustainable approach to fiscal policy is
expected to continue, to reduce public debt—which is currently about 50% of GDP. The mission supports the
authorities’ efforts to address the structural imbalances of the state-owned enterprises and social security
accounts, and enhance buffers given the country’s vulnerability to natural disasters. In this respect, the mission
recommends better targeting subsidies and reallocating current expenditures to continue to maintain adequate
levels of social and capital spending in the medium term, reduce poverty, and support growth.The NHDP
(National Human Development Plan) was structured around the central goal of improving the living conditions
of all Nicaraguans, especially decreasing poverty, increasing economic growth, improving environmental
sustainability. Thus the policies and strategies launched to date include substantive changes intended to achieve
results with the widest possible scope and greater celerity than has been the case thus far. New strategies and
adifferent way of dealing with poverty are accompanied by a more decisive role to be played by the state,
citizens and the international community.
IMF (2011) Povery Reduction Strategy Paper (PRSP): Nicaraguan progress report on national human
development plan as of 2010 https://www.imf.org/external/pubs/ft/scr/2011/cr11323.pdf
Nicaragua, therefore, puts forward the following proposals:
1. Regarding early pregnancies and high infant mortality, adequate health insurance, free access to
vaccines, the dissemination of sexual education and the use of contraceptives should be guaranteed; as
well as facilitating access to medicines and vaccines for children, distributed free of charge.
2 Improve personal health and hygiene conditions, guaranteeing citizens access to drinking and
uncontaminated water: in fact, today approximately 844 million people don’t have access to drinking
water and in developing countries, 80% of diseases are attributable exclusively to poor sanitation
conditions.
3 Use more funds to improve school infrastructure, school materials and give anyone the opportunity,
including through scholarships, to study.
Despite its prominent role in recent Nicaraguan history, the UN) has maintained a low profile since the April
2018 events, with the exception of the outspoken position of the UN’s Office for Human Rights. Now, however,
the UN has an opportunity and the ability to contribute to a peaceful resolution of Nicaragua’s multi-faceted
political, economic, and humanitarian crisis. Efforts by the Organization of the American States need to be
further complemented by an active role of the UN and international financial institutions, in addition to bilateral
actions.