Millennium Challenge Corp. Helps Warm Ties Between US, Nicaragua

By Elisabeth Burgess for the Dialogue's Latin America Advisor
February 5, 2008

The Bush administration and longtime US foe Daniel Ortega, Nicaragua's president, are "building a relationship of friendship," the Central American nation's ambassador to the US said on Tuesday, February 5.

"Let us not forget that only 15 months ago this administration was actively opposed to the candidacy of Daniel Ortega," Ambassador Arturo Cruz told an audience at the Inter-American Dialogue. Speaking at a panel about the work of the US Millennium Challenge Corporation (MCC) in Central America, Cruz praised members of the Bush administration for pursuing "personal relations" with Ortega's government. Nicaragua has signed an MCC compact to receive $175 million in development assistance from the US.

MCC Chief Executive John Danilovich said he doesn't believe there has been a "tectonic shift" in US-Nicaragua relations, "but maybe a tremor; maybe the opening of a window" through the MCC's work.

When Danilovich traveled to Nicaragua two weeks ago, Ortega praised the MCC's work in the country and even concluded his speech by shouting "Long live the United States," both Danilovich and Cruz recalled.

The MCC will continue to work with countries that have good governments, good policies, and keep up with MCC commitments, Danilovich said.

Cruz admitted that not all sectors of Nicaraguan government are happy with Ortega's embrace of the MCC compact. There is a "policy divide within my own government ... I do not see it being resolved anytime soon," he said, adding that he was an early supporter of the MCC model.

Originally published on February 6, 2008 in the Dialogue's daily Latin America Advisor.