ABSTRACT

Recent events related to the construction of the Nicaraguan Canal joining the Pacific Ocean and the Caribbean Sea have opened up new debates concerning the countries of Central America, the United States and the Asia connection. On the one hand, secrecy and diplomatic silence about the project have aroused suspicion as to the real viability of a work of such magnitude in one of Latin America’s poorest countries and, moreover, not far from the Panama Canal. Within Nicaragua, criticism was soon voiced, especially given the political influence of the Sandinista leader and incumbent President of the Republic, Daniel Ortega, who has yoked his political destiny to a project that is a long-cherished dream of the national imaginary. Arguments are wielded against this renewed support for a goal which has never been achieved, and critics cite lack of information, the government’s use of the project as a political tool and the murky relationship with Chinese companies. On the other hand, commentators speak of a geostrategic turn in the policy of the People’s Republic of China in Latin America and, in particular, with regard to Central America, a sphere of influence of the United States since the nineteenth century. In the meantime, with the growing economic and military strength of

mainland China, the Republic of China (Taiwan) is increasingly isolated in the international domain where the only support it has is diplomatic recognition by 22 countries. In the case of Nicaragua, diplomatic recognition has been swinging between Taiwan and China in the different historical stages of the years dating from the Somoza dictatorship in the latter half of the twentieth century through to the present Sandinista government, a period which has seen a revolution, a war and an attempt at democracy. At present, although Taiwan still maintains one of its few remaining embassies in Nicaragua, and is very active in development aid projects in a country with a per capita income among the lowest in Latin America,2 the new geostrategic factor introduced by Asian interests should be taken into account in the region. The Nicaragua Inter-Oceanic Grand Canal, approved in 2012 by the government of Nicaragua, after which the concession was granted to a

Chinese company in 2013, is today a source of speculation3 as to whether the Chinese companies will take on the role of new economic development stakeholders in the region.