Question Period Note: Nicaragua - Canada's Humanitarian and Development Response to the current crisis

Questions may arise regarding the Canadian development or humanitarian response to ongoing crisis in Nicaragua involving a range of human rights violations and leading to increased poverty.

• The Government is concerned about the situation in Nicaragua and its impact on the population, including increased poverty due to economic downturn

• Due to concerns about human rights violations, Canada has suspended direct financial disbursements to the Government of Nicaragua. We continue to support projects implemented by NGOs and international organizations that focus on improving the lives for the most vulnerable

• Canada will continue to monitor the situation, and to support the Nicaraguan people and address exacerbated development needs.

Nicaragua has been facing a socio-political crisis since April 2018. Reliable sources estimated that over 325 people have been killed, over 2,000 were injured and 700 had been detained for political reasons. To date, government and state-sponsored forces have not faced accountability for this violence.

On June 21, 2019, in coordination with the U.S., Canada imposed sanctions on nine key members of the Government of Nicaragua under the Special Economic Measures Act in response to gross and systematic human rights violations that have been committed in Nicaragua.

In 2017/2018, Canada disbursed $9.85M in total ODA to Nicaragua. Nicaragua has developed successful community-based models that have contributed to significant poverty reduction. However, following the start of civil unrest, the country went from being a high-performing development partner to a country not only in political crisis, but one with exacerbated poverty due to reduced investment, tourism, and spending, and high job losses. Pre-crisis, Nicaragua was already one of the poorest countries in the Americas with the second-lowest GDP per capita after Haiti, with 3% of the population living below the national poverty line, now estimated at 35%, a figure reaching 50% in rural areas.

Canada's development program in Nicaragua helps increase productivity for small-scale farmers, supports youth employment and services that address early pregnancy and sexual and gender-based violence.

Canada will continue to support the people of Nicaragua through projects implemented by non-governmental and international organizations.
No request or appeal for humanitarian assistance has been issued in response to the crisis.

As a result and in line with aid effectiveness principles, Canada, like other donors, was providing direct financial support to government institutions for development projects.

In line with Global Affairs internal policies, Canada has taken the decision to temporarily suspend direct development funding to the Government of Nicaragua (via 4 projects) due to human rights violations since April 2018. The decision was communicated to the government on September 4, 2018. GAC is working to reallocate some of the funds to new partners to work towards similar objectives as the suspended projects or to establish new projects to address new needs.

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