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Introduction

Development cooperation relations between Nicaragua and Luxembourg first began in 1993. The first general cooperation agreement setting out cooperation relations between the two countries was signed in 2000. The tourism, health and vocational training sectors were the traditional priority areas for Luxembourg Development Cooperation in Nicaragua.

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However, as a result of the social and political crisis that began in April 2018, Luxembourg made changes to its development aid support to Nicaragua. Thus, direct disbursements to the government were frozen and the conclusion of a new Indicative Cooperation Programme (ICP) was postponed. Since that time, development cooperation in Nicaragua has featured, notably, multilateral support and a considerable amount of aid to the NGOs in the country.

Since 2018, Luxembourg has continued to provide significant support to Nicaraguan civil society in relation to the promotion of human rights through a project by the NGO Front Line Defenders to support human rights activists. The activities of FASOC, the multi-donor fund to support Nicaraguan civil society, which brings together five donors and is implemented by Oxfam, had to be transferred in 2021, following the ban on Oxfam operating in Nicaragua. Funding for the multilateral school canteens project to address the food and nutritional insecurity of children in the north and north-east of Nicaragua through the World Food Programme (WFP) continued in 2021.

Two Luxembourgish NGOs, Frères des hommes and Terre des hommes, implemented activities co-financed by the MFA in 2021, targeting democratic participation, agricultural advisory services, vocational training and the care of children and young people living in poorer and deprived districts.

Development of PDA

Reference data

  • Population (MIO): 6,62
  • GNI (per resident): 5.410
  • Human Development Index (HDI): 128/189
  • Life expectancy: 75

Sector breakdown

2021