Accession Number:

ADA169104

Title:

Export Credit Subsidies to Nicaragua.

Descriptive Note:

Interim rept.,

Corporate Author:

RAND CORP SANTA MONICA CA

Personal Author(s):

Report Date:

1986-03-01

Pagination or Media Count:

40.0

Abstract:

This study calculates the level of subsidies in officially supported export credits that have been advanced to the government of Nicaragua. U.S.-Nicaraguan relations have deteriorated steadily since 1981. U.S. actions have included various forms of aid to anti-government forces within Nicaragua, and economic sanctions, including a trade embargo. A number of Western European countries, however, continue to provide assistance to Nicaragua. These governments feel that the Nicaraguan regime is not as threatening as the United States portrays it. This Note examines one form of economic assistance to Nicaragua in detail export credit subsidies. Because Nicaragua receives credit on favorable terms from major industrialized nations, it is able to expand its military efforts beyond levels otherwise possible. These subsidies exceed the size of nonlethal aid that the U.S. is providing the anti-government forces within Nicaragua. If European governments are alerted to the costs of providing export credits to Nicaragua, they might reduce these flows. Author

Subject Categories:

  • Economics and Cost Analysis
  • Government and Political Science

Distribution Statement:

APPROVED FOR PUBLIC RELEASE