Netherlands Institute for Multiparty Democracy

On 31 January NIMD organized a national debate on migration and money remittances. The debate, recorded for radio and TV was introduced by money remittance expert Manuel Orozco. The meeting brought together an audience of 40 people from political and civil society.

75% of the Nicaraguan families have at least one family member living abroad. One million Nicaraguans work as labor migrants in (mainly) Costa Rica and the United States. The money sent home by the migrants is important for their family back home and is seen as a crucial contribution to the national economy.

However, migration brings about serious disadvantages to family life in Nicaragua (broken families) and, according to the Dutch ambassador Lambert Grijns, who hosted the panel discussion at the Embassy, “it feeds into the phenomenon of youth gangs”.


Not sustainable

Another serious problem is the fact that most of the remittances are used for consumer goods rather than for productive goods, savings and social security schemes. This is problematic, because the money transfers mostly come to an end after 15 years. By then migrants often have formed new families and stop sending money to their home country. So preferably remittances should be used for “quality investments to produce growth”, according to José Rojas, General Director of the Central Bank of Nicaragua.

Several experts mentioned the importance of formal recognition of the migrants. As illegal workers they lack basic rights in their new country, and in their home country they are often seen as 'traitors' who do not care about their compatriots.

In the long run the impact of migration is negative. “People should not be forced to leave their country because of the economic crisis”, said Ms. Nadia Vado, NIMD representative in Nicaragua. “Even if remittances contribute to economic growth and help poor families, it can not be the solution for developing countries. In the end, this mechanism is not sustainable.”


About the NIMD debates

To stimulate public debate in Nicaragua, NIMD has organized a series of national debates on social and political themes in Nicaragua.
Four debates related to issues of poverty reduction and inequality. Another four will concentrate on democracy, good governance and political parties.
Each debate is recorded and distributed for use by radio and TV in Nicaragua and the Central American region. A tool kit about the national debates will be produced for further dissemination. All debates are organized by NIMD and hosted by the Dutch Embassy in Managua.

- Article by Frans Visscher, NIMD political advisor of the Dutch party Christian Union. -