Nicaragua’s Costly Centralization

The centralization of regulatory, financial and infrastructure institutions in Managua is affecting the production and competitiveness of the private sector.

Thursday, January 10, 2013

Businesses based in other regions of the country must travel to Managua if they want to apply for tax incentives, because if they do it in any of the delegations of the Institute of Tourism (Intur) they will have to wait for their documents to be sent to the capital for examination.

According to Laprensa.com.ni, the Nicaraguan private sector is suffering due to the centralization of economic, social and public policies in Managua, which reduces their competitiveness and makes other regions less attractive for investment.

Gilberto Alcocer, president of the Nicaraguan Council of Small and Medium Enterprises (Conimipyme) recognizes that resource limitations mean that the government could not easily push a decentralization measure. He says the process should take place in conjunction with the private sector.

According to Eduardo Fonseca, president of the Chamber of Commerce of Nicaragua (Caconic), they are focusing their efforts on improving processes, but he admits he does not have an in-depth understanding of the problems in the rest of the country, since most of his partners are in Managua . He said the Ministry of Development, Trade and Industry (Mifin) is aiming to streamline processes for records, payment and permission in all regions by opening various small offices.

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Tax Benefits for Tourism SMEs in Nicaragua

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