Donors Face Dilemma as Nicaragua’s Corruption Efforts Stumble

Despite some progress made, a joint evaluation by five development partners has highlighted the challenges facing anti-corruption efforts in Nicaragua. The report reveals that while donors have provided support to improve institutional monitoring and transparency, corruption remains a significant obstacle to democratic values and economic growth.

Challenges Facing Anti-Corruption Efforts

The evaluation found that Nicaragua’s government has an anti-corruption strategy, but donors have withdrawn support due to concerns over election fraud and the government’s role in acquitting former President Alemán. The report warns that this withdrawal could harm progress against corruption by signaling that donors no longer prioritize this work.

• Withdrawal of donor support could harm progress against corruption
• Concerns over election fraud and government’s role in acquitting former President Alemán

Recommendations for Overcoming Challenges

To overcome these challenges, the evaluation recommends a long-term approach to supporting national anti-corruption efforts, as well as improved evidence-based monitoring and accountability mechanisms. Donors are urged to maintain support for anti-corruption initiatives, despite poor relations with the government.

• Maintain a long-term approach to supporting national anti-corruption efforts
• Improve evidence-based monitoring and accountability mechanisms
• Continue to prioritize integrity and zero-tolerance approach to misuse of funds
• Consider supporting capacity-building for governance and anti-corruption through regional mechanisms and institutions
• Establish consensus among remaining donors in Nicaragua and engage influential donors like Spain in an anti-corruption policy dialogue

Successful Strategies

The report highlights two successful strategies:

• Sustained support to institutions

• Responsiveness to government policy

• The FAC, which received donor support, has developed aspects of the anti-corruption system

Donor Dilemma

However, the evaluation also raises concerns about the dilemma faced by donors in balancing their commitment to anti-corruption efforts with the need to maintain relationships with the government. The report suggests that donors could consider supporting capacity-building for governance and anti-corruption through regional mechanisms and institutions, such as the World Bank or UNDP.

• Donors face a dilemma in balancing commitment to anti-corruption efforts with maintaining relationships with the government
• Consider supporting capacity-building for governance and anti-corruption through regional mechanisms and institutions

Joint Evaluation

The joint evaluation was commissioned by five development partners: the Asian Development Bank, Danida, Sida, DFID, and Norad, with SADEV leading the project. The report aims to identify lessons learned regarding what kind of donor support may work, what is less likely to work, and what may harm national efforts against corruption.

Conclusion

The report’s findings and recommendations are aimed at informing donor agencies’ strategies for effective support to anti-corruption efforts, particularly in countries where corruption remains a significant challenge.