Points of consideration for the Non-IT firm are presented below in order to provide a basis for making a decision of whether one should choose to set up a sales office, expand operations, or open a distribution center, etc. The telecommunications infrastructure is still well below North American, European, and neighboring countries standards, yet it is increasing. In addition, the government is supportive in attempting to privatize the telecommunications industry and approving spending in telecommunications infrastructure investments. Telephone penetration is very low for a developed country. It is not adequate to support expansion of facilities and offices.
More infrastructure is required to meet the demand of telecommunication services.
Accomplishments over the past year include passage of an austerity government budget, streamlining the government, signing of a market opening free trade agreement with the Dominican Republic, and passage of a modern copyright law. Prospects look good for sustained rapid economic growth beyond 1999. However, success depends on the governments ability to stay on track with its ESAF, make significant progress in resolving property disputes, strengthen the rule of law, and take other steps to remove obstacles to private investment. The National Assembly passed in May 1999 a Tourism Incentives Law that may generate increased interest on the part of potential investors, especially Japanese, Taiwanese and Europeans. Nicaragua is essentially an agricultural country with a small manufacturing base.