Insights

MEXICO CITY — In a significant escalation of its crackdown on civil society, Nicaragua's government announced the closure of 151 nongovernmental organizations (NGOs) on Thursday, including the American Chamber of Commerce (AMCHAM), which had operated in the country for 47 years. This move follows the recent shuttering of approximately 1,500 NGOs, predominantly religious groups, as part of President Daniel Ortega's ongoing campaign against organizations he accuses of attempting to undermine his administration. The Interior Ministry's decision also affected the umbrella organization for European chambers of commerce in Nicaragua, alongside other notable groups such as the National Union of Farmers and Ranchers. The closures come amid a backdrop of strained relations between the U.S. and Nicaragua, particularly following Ortega's violent suppression of protests in 2018. Despite these tensions, trade between the two nations had persisted until now. Ortega's government has justified these actions by claiming that the organizations failed to properly report their financial activities. However, critics argue that the closures are politically motivated, aimed at stifling dissent and consolidating power. To date, over 5,000 NGOs have been closed since the 2018 uprising, raising concerns about the implications for civil society and economic stability. Economist Enrique Sáenz described the government's actions as "absolutely irrational," warning that the closures could lead to job losses and a chilling effect on investment. He emphasized that this creates a "disturbing message" to both local and international businesses, fostering an environment of uncertainty for trade and economic growth in Nicaragua.