How Civil Unrest Impacts Business: The Nicaraguan Crisis

The crisis in Nicaragua has been escalating since mid-April 2018 with no end in sight. As human rights violations continue, people are killed and civil unrest heightens, businesses in the country are being devastated, losing up to 90% of revenue. The companies run by the 39 members of EO Nicaragua are in dire circumstances. We asked Arnold Ponçon, EO Nicaragua member and CEO of Simplemente Madera, about the situation in his country. Here’s what he shared.

Headlines about the Nicaraguan crisis paint a grim picture:

“Journalist shot dead while broadcasting live in Nicaragua”
“One-year-old boy among the dead in fresh violence”
“Peace talks with Ortega abandoned after 11 killed at protest”

As entrepreneurs, we rely on our customers, employees, associates, the good will of people and stability in the regions where we operate to support our businesses and help them thrive.

But, what would you do if your country suddenly erupted in civil unrest with militia and police openly shooting at citizens protesting government actions?

This terrible situation is devastating the 39 members of the EO Nicaraguan chapter, our families, businesses and―truly―our entire society and way of life.

That’s what is happening in my country, Nicaragua. Now—today—while you are reading this, it’s happening. This terrible situation is devastating the 39 members of the EO Nicaraguan chapter, our families, businesses and―truly―our entire society and way of life.

The Nicaraguan crisis, summarized

It was completely unexpected. For more than a decade, the government was pro-capitalism and pro-private business. Nicaraguan companies enjoyed a steady pace of growth.

That was the case until April when, by presidential decree, Daniel Ortega made unexpected social security reforms that lowered pensions and increased costs for everyone. That was the spark that ignited student protests. People marched peacefully but passionately, carrying handmade signs.

Then government paramilitary troops began attacking protestors—first with sticks and bats. On the third day, they brought out guns, started shooting and killed three students. In response, protests strengthened. Citizens couldn’t believe what was happening. As the government increased its aggressiveness, protestors responded with larger protests. Cities built barricades to prevent government troops from moving about freely. A reporter was shot dead during a live broadcast. Public hospitals are reportedly refusing proper treatment for wounded protestors. And people continue to die.

The downward spiral continues. Civility has eroded. As of 29 June, 2018, more than 285 people have been killed and more than 1,500 injured. In addition, 215,000 Nicaraguans have lost their jobs due to the economic recession this crisis has caused. Ortega and his regime have radicalized their position, and refuse to give up power. There is no end in sight.

How civil unrest impacts daily life

So, what is life like when civility erodes into a war zone? Schools closed. Barricades and roadblocks keep us safe from government forces, but prevent the basic necessities such as food and medicine from getting through. While it’s marginally safe to walk around during the day, after 6 p.m., it’s dangerous to be outside.

Government forces and militias patrol the streets with war guns, shooting at protestors atop barricades. In some cities, food and medical supplies are scarce, and most businesses have limited operations or have closed. Tourist destinations that enjoyed 95% capacity in the first four months of the year are now only 6% booked. About 35% of the country’s hotels have closed.

Your fellow entrepreneurs―the 39 members of the EO Nicaragua chapter―are facing dire conditions, with revenues down by 20 to 90%.

Many of your peers have closed their businesses or left the country and are trying to run their companies from afar. Some remain in the country.

Our main concern is for the safety of our children. Those who were able sent their families out of the country to protect them from the violence and bloodshed.

I’ve come to the U.S. with my wife and three children. We’re staying with a lifelong friend, but many fellow EOers and most Nicaraguan citizens aren’t as blessed to have this option. And as businesses close, revenue streams dry up, jobs end and food and medical supplies become harder to find, the situation is becoming desperate.

Which is why we need your help.

How you can help

We’ve established a GoFundMe account for donations to help the more than 5,800 employees of EO Nicaraguan businesses and their families who have either lost jobs or seen their income disappear. The fund will also bring food and medical supplies to cities that have been cut off and help supply medical care for the wounded.

We also need practical help to establish temporary situations outside of Nicaragua and focus on our “Plan B” if the situation in our country doesn’t stabilize. If you or your EO chapter can offer any of the following, they would be much appreciated:

  • Housing and office space for EO members who have left Nicaragua
  • Support for Nicaraguan businesses or networking contacts in your region
  • School enrollment and student exchange options for our children
  • Internship opportunities for our older children (ages 14 to 18)
  • Temporary visas: We need your experience, information and contacts
  • Job opportunities for EOers and/or their relatives
  • Human rights activism: connections to key political figures or celebrities to draw attention to this ongoing crisis

It’s shocking how drastically our whole reality has turned upside down in just two months. One week before this situation erupted, in early April 2018, I was discussing a business project with a Luxembourg Fund and said earnestly, “Nicaragua is the safest country in Central America. Ortega is a good guy—a capitalist—our economy is doing great!” I couldn’t have known how wrong I was.

Fellow EO members, entrepreneurial opportunity in Nicaragua is crumbling, and we ask for your help in working with our chapter’s businesses members or recommending our products and services to your friends and business associates.

Contact me for a list of our companies and the products and services we offer. I’ll also share additional details about the type of practical help that could benefit us as we work to re-establish our businesses in new countries including neighboring countries like Costa Rica and El Salvador, as well as the US and Canada.

Please contact Arnold Poncon on WhatsApp (preferred contact method) at +505 8886 1142 or via email at arnoldponcon@gmail.com

 

Categories: general Legacy Make a Mark

Tags:

Leave a Comment

  • (will not be published)

ERROR: si-captcha.php plugin says captcha_library not found.