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Nicaragua Is Officially a Dictatorship—and US Money Paved the Way
['Senior Fellow', 'Director', 'Center On Europe', 'Nonresident', 'China Center', 'Mark Montgomery', 'Chi-Chang Tsai', 'Pao-Yang Shen', 'Ting-Yu Wang', 'Hudson Institute']
Hudson Institute
But in some respects, the Ortega-Murillo regime has gone further than either of them.
Nicaragua has aggressively deployed a tool no other regime in the hemisphere has used: manufactured statelessness.
Through the CAFTA-DR trade agreement, in effect since around the time Ortega returned to power, Nicaraguan apparel and textiles enter the US duty-free.
Remittances are equivalent to 29% of GDP, making Nicaragua one of the more remittance-dependent economies in Latin America.
Meanwhile, the economic lifelines that actually sustain the Ortega-Murillo regime remain intact.