ABSTRACT
The aim of this chapter is to assess the impact of Swedish programme aid in Nicaragua. Nicaragua has been a large recipient of Swedish programme aid, both before 1990, during the Sandinista government, and after that year when a coalition under Ms Chamorro took over. While the Sandinistas in 1988 and 1989 had already introduced some market reforms, the new government extended them immediately after coming to power. From 1991 onwards, these reforms were supported by several programmes of the multilateral institutions and by large amounts of (programme) aid. However, although stabilisation was achieved, growth came much later and was still modest. According to many observers, living standards of the poor, especially in the countryside, did not improve in the 1990s. This makes the country an interesting case for examining the effectiveness of programme aid.
