Why does WCCN have a credit project in Nicaragua?
Although rich in culture and intellect, Nicaragua is impoverished economically. Its GNP per capita is less than $2,000 and 44% of Nicaraguans live in poverty. Under such circumstances, families often rely on agriculture or resort to the informal sector to earn some subsistence. Such strategies require capital to buy inputs and supplies, but the disadvantaged have little or no access to commercial banks. Realizing this dilemma, Nicaragua s state banking system emphasized making low-cost credit available to the majority of the population during the 1980s. At that time, 63% of long-term credit went to small producers and co-ops. This changed dramatically, however, with the privatization of the banking system, which began in 1990. By 1993 the small and medium scale producers (who were responsible for 60% of Nicaragua’s agricultural production) received only about 23% of long-term credit. At the same time, growing unemployment and underemployment, fueled by structural adjustment policies, h
