
A year away from elections, it seems Nicaraguan President Daniel Ortega may still have the strength to govern for another five-year term, but diminishing aid from Venezuela will complicate Nicaragua's economic planning in the near term and could eventually erode the Sandinista National Liberation Front's tight control over national politics. Since the implementation of the Central American Free Trade Agreement in 2005, reduced tariff barriers have given Nicaragua greater access to the U.S. market, and foreign investors have increased their cash flow into Nicaragua accordingly. But waning assistance from Venezuela could threaten the continuance of this economic success story. Though Venezuelan aid to Nicaragua is a small portion of Venezuela's total foreign aid, declining oil revenue has forced Caracas to make some cuts. At its height in 2012, Venezuelan aid to Nicaragua totaled $728.7 million — less than 1 percent of Venezuela's reported oil export income for that year.