The scene tonight in the plaza of Chinandega was truly remarkable. Thousands of people packed the town square to celebrate the positive cooperation that takes place when two countries work together to combat a common enemy—poverty. President Daniel Ortega, the directors of MCA-Nicaragua, local mayors, and government ministers joined me in awarding land titles to over 700 Nicaraguan families in the northwestern region of the country. These households now have full land titles, can tap into much-needed credit, and fully enjoy the security that comes with property ownership.

Property rights are a key element to reducing poverty, especially in regions that depend on agriculture for their economic livelihood. I am proud that MCC, working with the people of Nicaragua, local NGOs, donor organizations, and the private sector, have already helped provide legal and secure land titles to nearly a thousand people in this country, and in other countries where we are implementing compacts globally. Thousands more titles will be distributed this year alone.

Today I was able to officially launch the rehabilitation of the Villanueva-Guasaule road that connects Nicaragua with neighboring Honduras. This 17-kilometer stretch of the Pan-American Highway network has long been neglected and its poor state has impeded access to markets, basic social services, and the untapped economic potential of international commerce. By reconstructing this important paved artery, Nicaraguans and Central Americans will be able to take full advantage of free trade by getting their goods to market in an efficient and cost-effective manner. Increased exports will mean increased income for Nicaraguans, and these roads are a critical part of that effort.

This evening in the city of Chinandega, President Ortega and I toured an agricultural fair where local farmers talked to us about how improved roads, irrigation systems, and innovative methods for commercializing their products are increasing their crop yields and incomes. It is always reassuring to hear—repeatedly—“thank you, MCC” from grateful beneficiaries. What was even more rewarding tonight, however, was to hear of their big plans for expansion. These farmers want to pull themselves out of poverty, and they are doing it with the help of MCC. They prove the old adage that “there is no such thing as a small entrepreneur, but rather an entrepreneur with a small business.” MCC wants to help these rural entrepreneurs take full advantage of their resources and talents to work in a smarter, more profitable, and environmentally friendly way for Nicaragua’s future.

These are the results that MCC is seeing on the ground in places such as Nicaragua. We are helping people help themselves. We are facilitating a dialogue between rural populations and their local leaders. We are creating a space in which we can collaborate in a constructive way with governments despite political differences. We must look forward to the 21st century in places such as Nicaragua to fight a common enemy—poverty. President Ortega ended his speech this evening in the plaza of Chinandega thanking the United States government and American people, proclaiming “Viva los Estados Unidos!”. Quite a milestone. These are the results of the careful investment of taxpayer funds in programs like the MCC. Stability in this region is a tangible benefit for the people of the U.S. and I am proud that MCC is leading this effort in the Western Hemisphere and around the world.

See photos of January 23, 2008 activities.

(Note: Ambassador Danilovich will preside at the inauguration of the U.S. Embassy in Managua on January 24. He travels to El Salvador to review implementation of MCC’s $461 million compact. Check back for new blog entries.)

I want to take advantage of my current trip to Central America to launch the MCC’s latest initiative to better communicate with our stakeholders in the U.S. and abroad – the “CEO Blog.” This is intended as a direct channel of communication to offer my first-hand perspective of our programs and the results that our assistance to partner countries is producing on the ground for the benefit of the world’s poor.

Today’s itinerary in Nicaragua has achieved significant milestones. I was pleased to meet with the MCA-Nicaragua government board members and discuss how to best support the $175 million compact currently in its second year of implementation. We talked frankly about ways to maximize the resources that are part of the compact, even in a world where the dollar’s rate has dropped sharply and where the rising costs of oil are making large-scale infrastructure projects more expensive than ever. Our conversation confirmed what I already knew – the MCA-Nicaragua board and foundation staff are professionals who are dedicated to this process and who are committed to implementing the best possible project that will benefit Nicaraguans in the northwestern region and the country as a whole.

My meeting with President Daniel Ortega was cordial and productive. His comments to the press following the meeting underscored his appreciation for the impact the MCC is having on the people of this country and their long-term prospects for real economic growth. I was pleased to hear him state to the national press that, even though he had first expressed doubts about the program, he was now more engaged with the program and aware of the time and complexities involved in the construction of durable, high-quality roads and other infrastructure improvements. I pressed the president to continue to advance the reform agenda that will ensure Nicaragua’s continued eligibility for MCC assistance. He and the ministers who were in attendance demonstrated an active engagement with the MCC program. This sort of “country ownership” of the implementation process is needed at all levels of government and civil society in all of our partner countries, and I am happy to report that there is strong evidence of it in Nicaragua.

I impressed upon President Ortega that, despite our occasional political differences, the Millennium Challenge-Nicaragua program represented a way our two countries are cooperating in a constructive and beneficial way. The compact with Nicaragua offers a vehicle by which the U.S. government, through the generosity of the American taxpayer, can engage constructively with Nicaragua on an issue that matters to all of us: the reduction of poverty through economic growth in an environment of political stability.

Ambassador Trivelli graciously opened his home to our delegation from Washington this evening so that we could meet with government, business, civil society, and political leaders (representing all parts of Nicaragua’s political spectrum). These events always offer a casual atmosphere where we can have a discussion about the compact, the local political situation, and the progress of our poverty reduction programs. One thing was clear from my conversations with Ambassador Trivelli’s guests: There is a deep commitment to the success of the MCC-Nicaragua program within all parts of society. As I stated to one journalist this evening, I believe firmly that poverty anywhere is a threat to prosperity everywhere. Together we are facing, and countering, that threat.

Tomorrow I will help distribute land titles and inaugurate the rehabilitation of the Villanueva-Guasale road in the north of the country. Read about the events here tomorrow.