Biden administration looks to sanctions against Nicaragua, an approach that has historically had mixed results. The NICA Act’s targets may have been government ministers, but its victims were Nicaragua’s poorest communities.The NICA Act’s targets may have been government ministers, but its victims were Nicaragua’s poorest communities. The World Bank, having praised Nicaragua’s use of international funds to relieve poverty and having financed over 100 successful projects since the Sandinistas first took power in 1979, suddenly halted funding in March 2018. It did not resume work for nearly three years, until late 2020, when the bank belatedly helped respond to the Covid-19 pandemic and two devastating hurricanes. The Inter-American Development Bank and the International Monetary Fund similarly stopped funding large projects, and their help in response to the pandemic and the hurricanes was also delayed. Not surprisingly, opinion polls show that over three-quarters of Nicaraguans oppose these sanctions, and even the Organization of American States described the NICA Act as “counterproductive.”
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