Practice principles, not politics, for the poor

As published in The Miami Herald – 19-DEC-2008
http://www.miamiherald.com/opinion/other-views/story/819056.html

By John J. Danilovich and Robert J. Callahan
www.mcc.gov

Poverty is real in Nicaragua, yet, as the latest developments surrounding the municipal elections demonstrate, so are concerns about the government's commitment to democratic principles and civil liberties.

It is disappointing that, given recent events, the consistently positive results and powerful progress in the fight against poverty are being undermined by the inconsistent and politically charged actions of Nicaragua's government.

When the Millennium Challenge Corporation's board of directors decided to award a $175 million MCC grant, or ''compact,'' to Nicaragua in 2005, the decision was based on the country's policies and not its politics. In fact, when Nicaragua changed administrations in January 2007, MCC continued its commitment to the country's poor, but it also continued to require that the new government maintain its commitment to democratic principles. Recent actions, however -- leading up to, during and following the Nov. 9 elections -- run counter to MCC's policies and innovative approach to development assistance.

MCC provides U.S. taxpayer dollars to countries that promote political and economic freedom, invest in health and education, control corruption and practice good governance and the rule of law. Nicaragua was awarded its MCC grant to fight poverty and stimulate economic growth based on notable strides toward reform, inclusion and democracy.

Over the past few years, we have seen the laudable efforts of Nicaragua's poor to pursue a better life for themselves and their children through MCC's support. Farmers in the rural areas of Leon and Chinandega are taking advantage of technical training to grow their livestock and dairy businesses. Families are obtaining land titles to secure their property rights. Communities are paving new roads to access markets and social services more easily.

Until now, the partnership between MCC and Nicaragua has had significant impact. More than 200,000 Nicaraguans stand to benefit from new property titles and rural business development initiatives, and more than one million Nicaraguans could benefit from newly paved roads.

Given the regrettable events surrounding the recent elections, the MCC board of directors voted last week to suspend assistance for new activities under MCC's compact with Nicaragua. MCC will not approve disbursements for activities not already contracted by MCC-Nicaragua, the entity implementing the program. The ball is now firmly in the court of the Nicaraguan government. The government has an opportunity to develop and implement a comprehensive set of measures to address concerns regarding its commitment to democratic principles. When the MCC board meets again in March 2009, it will assess actions taken by the Nicaraguan government and determine MCC's future course of action.

The board's decision to suspend assistance was not a punitive measure against Nicaragua's poor but rather a principled stand against actions taken by the Nicaraguan government that harm the country's commitment not only to democratic principles but also to long-term growth. This was a difficult decision, but it's consistent with the fundamental principles of MCC's performance-based model and its legislative mandate to work with countries that respect democratic processes.

The reality is clear: Nicaraguans are held back by government actions that make it impossible for MCC and other international donors to work with confidence in the current environment.

U.S. government investments in a country must be matched by that country's own commitment to its poor. We hope that Nicaragua will now take the necessary corrective actions so that MCC's assistance can be reestablished. We want nothing more than to fulfill the potential of our partnership with Nicaragua; but the Nicaraguan government needs, first and foremost, to recognize the real concerns at home and throughout the international community about recent actions and to restore its integrity with its own citizens. Nicaraguans deserve a democratic future free of poverty and full of freedom and prosperity.

John J. Danilovich is chief executive officer of the Millennium Challenge Corporation and formerly was U.S. ambassador to Costa Rica and Brazil. Robert J. Callahan is U.S. ambassador to Nicaragua.