To: Rarebird who wrote (60885 ) 11/11/2000 7:03:02 PM From: Ahda Respond to However, there are some areas which still remain a problem for investment which need to be remedied. One problem is the national infrastructure--roads are substandard where they exist and there are not enough suitable ports for shipping. The judicial system in Nicaragua is cumbersome and inadequate in general and incredibly slow-moving. The rules are sometimes not clear and can be changed suddenly while judicial resolution of disputes are sometimes "questionable" and "arbitrary." Even when ruling are finally made, the enforcement of them is anything but a certainty. One classic example are the thousands of property disputes which have rendered many premium pieces of property in Managua and elsewhere unavailable. Also, corruption, especially bribery, begins at the lowest levels of business and government and extends upward. Business success often depends on who one knows and contacts are therefore of the utmost importance. Although the Aleman administration has eliminated most non-tariff barriers to investment and eased the rates, taxes can reach 50% of the products face value and many investors complain of steep secondary customs costs. However, Nicargua is in the process of instituting import tax reductions and by the year 2002 they will be the lowest in Central America. On the good side, foreign investors are allowed to remit all of their profits and foreigners are not required to share ownership of the enterprise with nationals. Another plus, which is sure to damage the country in the long- term, is that there are no pollution controls so industries need not spend money on expensive pollution preventatives.
