Local Business Investment in Education in Nicaragua

The Case for Local Business Support for Education in Nicaragua
The Brookings Institution

By Justin W. van Fleet

March 6, 2012
Citation: http://bit.ly/edunica

Given this bleak assessment, the time for the Nicaraguan business community to step up and support the government’s provision of education could not be greater. The business case is simple: investing in education in Nicaragua is an investment in both current and future employees, the safety and stability of the communities where businesses operate, the potential purchasing power of consumers, and a company’s reputation.

The author, Justin W. van Fleet, writes that an investment in childrens' education from inside of Nicaragua is the next important step in supporting the quality of learning. A survey of business leaders, as part of the World Economic Forum, indicates that the current opinion of the “quality of Nicaragua’s primary schools education ranks among the lowest in the world: 134 out of 142.” This extremely low perception definitely screams crisis, and as van Fleet points out, that certainly might have something to do with the fact that public and private donor financing is low.  The author claims that Nicaraguan businesses need to step up and show more support for education in the country by giving economically to projects that promote education. Two companies have stood out as leaders in the private sector in terms of giving back: Telefónica and Plasencia. The former provides technological resources (computers, internet, etc.), professional development programs, with a focus then on teacher development in general. Telefónica Foundation Classroom has a group of participating “marginalized” public schools. They are committed to expanding to more schools, and the latter, Plasencia works in the town of Esteli, in which the company piloted a “full-scale education program for its employees”, and an early education development program for employees’ children. Working with groups like Empresarios por la Educación, Plasencia provides a range of educational support, such as the all important university tuition. While some groups see the need and importance in community development and investing in local education, the author states that without working together as advocates, we won’t see the changes that the country's young population needs. 

There is an opportunity to make a sustainable difference in educational projects in Nicaragua if only more businesses take a larger role in investing. There is a shared social value at stake here that a recent forum demonstrates, as the author points out.  In our blog we have been examining news that relates to international investment, or aid, in education in Latin America. Many of us have an invested interest in Nicaragua and this article was very revealing (albeit short, but informative) in terms of expressing quite clearly not only the dire need for educational reform in the country, but a vital next step in terms of development where companies and businesses step up and start supporting educational initiatives! Although we live in a global era, it seems very little international money has actually trickled down to Nicaragua's education system. This article calls for greater local business involvement in education – an investment, as the author calls it, and an opportunity for both sides to benefit.

This article is particularly touching personally because our project, the Barrio Planta Project, relies strongly on the support of individuals and particularly, Nicaraguan businesses to stay afloat. Sadly, it's a struggle. We'd love to gain sustainability if only more corporations considered investing in local education initiatives. I think this call for a new, reformed, fairer type of aid makes sense. While other countries invest from the OUTSIDE towards the INSIDE of Nicaragua in the hopes of a return, van Fleet calls for a type of investment in development in which Nicaraguans invest in Nicaragua.