August 5th, 2013 | 00:04:00

Nicaragua is one of the 16 countries that will lead the growth of manufacturing in the world

Managua, Nicaragua |

Elite Manufacturing

He said a report by the U.S. geopolitical intelligence agency, Stratfor

Loáisiga Ludwin, Massiell Largaespada and Alma Vidaurre | Economy

Manofactura Elite

Nicaragua is one of the 16 countries in the medium term that will lead the growth of manufacturing in the world, especially as China - the king in that sector - suffer economic problems, which will reduce its global influence, according to a report U.S. agency geopolitical intelligence, Stratfor.

The firm, based in Texas, says that "already underway" period China Post 16 or PC16, which allow a group of emerging nations increase their influence in the manufacturing sector.

For Latin America, Stratfor included in the PC16 to Nicaragua, Mexico, Peru and Dominican Republic.

"It may seem that many of these countries have a long process, but we must take into account the meteoric rise of Japan after World War II, or China, after decades of Maoist chaos," said George Friedman, president of Stratfor.

According to Friedman, in the manufacturing sector will notice a "dispersal of industries", which he described as a "sign of the initial phase of economic growth" for these emerging countries.


He added that several of these nations will have greater weight in the manufacturing world "would be considered low political risk and stability".

In its report, Stratfor says that areas of clothing and footwear manufacturing and assembly of mobile phones are those with more "movement" and warned that not all countries have "success".

"All this has to be placed in context. This is not the only ongoing growth process. It is highly unlikely that all these countries are successful. They are not yet ready, with some exceptions, for advanced financial markets or quantitative models, "he said.

In the case of Nicaragua, have already installed large suppliers of sportswear firms or vehicle manufacturers, but experts say it is necessary to introduce technology labor and production.

Production Technify

Raul Rivas, executive director of the Federation of Chambers Nicaraguan Private Free Zone, said that this country needs to improve its productivity levels to take advantage of the window that is opening up China in the field of global manufacturing.

"We must start producing disposable medical equipment, masks, we begin to produce technology," said Rivas.

Nicaragua has 215 companies and 103,000 employees zones, but the U.S. $ 2.377 billion were exports last year, 63% (U.S. $ 1.507 million) was contributed by the textile and clothing industry.

In addition, the total amount of exports last year, only U.S. $ 703.8 million (29.6%) had value added, ie zones industry should introduce technology production.

In its analysis, Stratfor explained that PC16 members are, mostly, underdeveloped countries where there are low wages, thereby presenting opportunities for its growing manufacturing sectors "dramatically".

In Nicaragua the average wage in the manufacturing sector is U.S. $ 150, according to experts. On the other hand, this country offers a number of tax incentives for investors zones.

Scholars have explained that in Nicaragua for every dollar exonerated trade zones are generated U.S.$ 3.5.


Dean Garcia, president of the Nicaraguan Association of Textile and Apparel industry, Anitec said that to get the window that has opened China, will hold the key Nicaragua TPL, a benefit granted U.S. tariff on buying fabric and thread and expiring on December 31, 2014.

The Stratfor report "is a pretty good news for the country, because again emphasizes that all efforts we are making to make competitive the sector is paying off," he said.

Nicaragua, Garcia said, is competitive in the sector of manufacturing in part due to the TPL, but not extended this benefit for 10 years, exports and the number of jobs in the sector would suffer a reduction, he said.

Last week, Assistant Secretary of Commerce of the United States, Walter Bastian, said Nicaragua's textile industry is ready to compete in the international market with or without the TPL.

Garcia, however, said the manufacturing industry in Nicaragua is still in a process of transition.

"We believe that the TPL are necessary in this time of transition, while industry (textile) as a whole becomes more competitive. The news from China is quite favorable for us and welcome it. That is going to come and give a big spike for the country and the industry, "said Garcia.

Rivas, meanwhile, considered key to the country with his own textile production.

"Whether or not we import cotton, because that's another competition, countries that produce cotton and achieve higher yields," said Rivas.

The emerging

The lower economic growth in China has led to the transition PC16 in the world of manufacturing, according to Stratfor.

For Latin America, the members of that group are Nicaragua, Mexico, Peru and Dominican Republic.

In the Indian Ocean include Kenya, Ethiopia, Uganda, Tanzania, Bangladesh, Myanmar, Sri Lanka and Indonesia.

On the outskirts of the South China Sea are Cambodia, Laos, Philippines and Vietnam.



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