Very Simple Project - Re-Word Existing Paper

I. Introduction

Our idea is to market building another canal between the Atlantic and Pacific oceans to accommodate the largest ships in the world using the latest engineering technologies.  The two options are Nicaragua and Mexico.

 

For almost 200 years Nicaragua was the primary location that the US wanted to build a canal, yet due to many factors the US took over the Panama canal and completed it in 1914.  Since it opened many ships were too big to fit through he locks and still have to make the 8-10 transit around the bottom of South America.  Although Panama is adding a third set of wider locks, they still will not be able to accommodate many large vessels.

 

Recently, Nicaragua signed a 50-year lease with a Chinese company giving them rights to build the canal.  The Mexican or Tehuantepec option has been around for a long time and has its own advantages and disadvantages.  

II. Brief Discussion of the country’s relevant history

The idea of building a canal through Central America is old. The colonial administration of New Spain conducted preliminary surveys. The routes suggested usually ran across Nicaragua, Panama, or the Isthmus of Tehuantepec in Mexico.

In 1825 the newly established Federal Republic of Central America considered the canal. That year the Central American federal government hired surveyors to chart the route and contacted the government of the United States to seek financing and the engineering technology needed for building the canal, to the advantage of both nations. A survey from the 1830s stated that the canal would be 278 km (172.7 mi) long and would generally follow the San Juan River from the Atlantic to Lake Nicaragua, then go through a series of locks and tunnels from the lake to the Pacific.

While officials in Washington, D.C., thought the project had merit and Secretary of State Henry Clay formally presented it to the Congress of the United States in 1826, the plan was not approved. The U.S. was worried about the poverty and political instability of Nicaragua, as well as the rival strategic and economic interests of the British government, which controlled both British Honduras (later Belize) and the Mosquito Coast.

On August 26, 1849, the Nicaraguan government signed a contract with the U.S. businessman Cornelius Vanderbilt. It granted his Accessory Transit Company the exclusive right to build a canal within 12 years and gave the same company sole administration of a temporary trade route in which the overland crossing through the Rivas isthmus was done by train and stagecoach. The temporary route operated successfully, quickly becoming one of the main avenues of trade between New York City and San Francisco. Civil war in Nicaragua and an invasion by filibuster William Walker intervened to prevent the canal from being completed.

Continued interest in the route was an important factor in the negotiation of the Clayton-Bulwer Treaty of 1850. The canal idea was discussed seriously by businessmen and governments throughout the 19th century.[15] In 1897, the US Nicaraguan Canal Commission proposed this idea, as did the subsequent Isthmian Canal Commission in 1899. However, the commission also recommended that the French work on the Panama Canal be taken over if it could be purchased for no more than $40 million. Since the French effort was in disarray, in 1904 the U.S. was able to purchase the French concession, equipment, and excavations for US $40 million.

The Nicaraguan Canal Commission carried out the most thorough hydrological survey yet of the San Juan River and its watershed, and in 1899 concluded that an interoceanic project was feasible at a total cost of US$138 million. At the same time, the Geological Society of America published the “Physiography and Geology of Region Adjacent to the Nicaragua Canal Route” in its Bulletin in May 1899, which remains one of the most detailed geological surveys of the San Juan River region.[16]

In the late 19th century, the US government negotiated with President José Santos Zelaya to lease the land to build a canal through Nicaragua. Luis Felipe Corea, the Nicaraguan minister in Washington, wrote to US Secretary of State John Hay expressing the Zelaya government's support for such a canal. The US signed the Sánchez-Merry Treaty with Nicaragua in case the negotiations for a canal through Colombia fell through, although the treaty was later rejected by John Hay. Before Corea completed a draft of the Nicaragua proposal, Congress was considering the Spooner Act to authorize the Panama Canal. In addition to the promise of earlier completion of the Panama Canal, opponents of the Nicaraguan canal cited the risk of volcanic activity at the Momotombo volcano. They favored construction of a canal through the Isthmus of Panama.[17]

According to Stephen Kinzer's 2006 book Overthrow, in 1898 the chief of the French Canal Syndicate (a group that owned large swathes of land across Panama), Philippe Bunau Varilla, hired William Nelson Cromwell to lobby the U.S. Congress for the Panama Canal. In 1902, taking advantage of a year with increased volcanic activity in the Caribbean, Cromwell planted a story in the New York Sun reporting that the Momotombo volcano had erupted and caused a series of seismic shocks. This caused concern about its possible effects on a Nicaraguan canal. Cromwell arranged for leaflets with the stamps featuring Momotombo to be sent to every Senator as "proof" of the volcanic activity in Nicaragua. An eruption in Saint-Pierre, Martinique, which killed 30,000 people, persuaded most of the U.S. Congress to vote in favour of Panama, leaving only eight votes in favour of Nicaragua. The decision to build the Panama Canal passed by four votes. William Nelson Cromwell was paid $800,000 for his lobbying efforts.[18]

At the start of the 20th century, Nicaraguan president José Santos Zelaya tried to arrange for Germany and Japan to finance the canal. Having settled on the Panama route, the US opposed this proposal.

II. Geographical setting

A. Location

Largest but most sparsely populated of the Central American nations, Nicaragua borders Honduras to the north and Costa Rica to the south. It is slightly larger than New York State. Nicaragua is mountainous in the west, with fertile valleys. Two big lakes, Nicaragua and Managua, are connected by the Tipitapa River. The Pacific coast is volcanic and very fertile. The swampy Caribbean coast is aptly called the “Mosquito Coast.”

B. Climate

Nicaragua Climate is a tropical climate, which consists of two major seasons - dry and rainy. Nicaragua Climate features a dry season between January and June when the place do not get any rain and the scarcity of water leads to the drying of vegetation. Whereas the months of June and July witness heavy rainfall and the surrounding turns green and start blossoming. The months between August and September features a tropical downpour once in a day. The hottest months of the Climate at Nicaragua are March, April and May.

The eastern part of Nicaragua witness rains more than the western part. Eastern Nicaragua in rainy season subjects to heavy flooding. The agriculture that flourished across the river bank faces heavy damage and a considerable numbers of savanna animals also die. The coastal area faces tropical storms and hurricanes between July and October. Climate of Nicaragua features three temperate zones. The lowlands temperatures varies between 22°C to 30°C. The central part Nicaragua features a cool climate that is 5° C where as the temperature at the mountains are nearly 10°C cooler. The variation in temperature in the Climate in Nicaragua is more with the elevation and less with the seasons in Nicaragua. Nicaragua Climate is most humid in the month of June when the humidity is around 84%. Nicaragua Climate is warm and humid except the central highlands.

C. Topography

The Caribbean coast, known as the Mosquito (or Miskito) Coast or Mosquitia, consists of low, flat, wet, tropical forest, extending into pine savannas 80–160 km (50–100 mi) inland. The coastal lowland rises to a plateau covering about one-third of the total area. This plateau is broken by mountain ranges extending eastward from the main cordillera to within 64–80 km (40–50 mi) of the Caribbean coast. The mountainous central area forms a triangular wedge pointed southeast, rising at its highest to some 2,000 m (6,600 ft). The plains and lake region, in a long, narrow structural depression running northwest to southeast along the isthmus, contains a belt of volcanoes rising to 1,500 m (5,000 ft) and extending from the Gulf of Fonseca to Lake Nicaragua. In this region is located Lake Managua , at 41 m (136 ft) above sea level, which drains through the Tipitapa Channel into Lake Nicaragua, at 32 m (106 ft) above sea level, which, in turn, drains through the San Juan River eastward into the Caribbean. Lake Nicaragua is about 160 km (100 mi) long and 65 km (40 mi) wide at the widest point, while Lake Managua is 52 km (33 mi) long by 25 km (16 mi) wide. The principal waterways are the Coco (or Segovia) River, navigable up to 240 km (150 mi) inland from the eastern Mosquito Coast, and the San Juan, navigable to within a few miles of the Caribbean, where a series of rapids halts transportation.

IV.

A. Family – Not Relevant

B. Education – Not Relevant

C. Political System 1. Political Structure

Nicaragua is a presidential representative democratic republic, in which the President of Nicaragua is both head of state and head of government, and there is a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the National Assembly. The judiciary is independent of the executive and the legislature.

2. Political Parties

Sandinista National Liberation Front Nicaraguan Liberal Alliance Constitutionalist Liberal Party Sandinista Renovation Movement Alternative for Change

3. Stability of Government

THROUGHOUT ITS HISTORY, Nicaragua has suffered from political instability, civil war, poverty, foreign intervention, and natural disasters. Governments since colonial times have been unable to bring stability and sustainable economic growth. Personal and foreign special interests have generally prevailed over the national interests, and foreign intervention in Nicaraguan political and economic affairs, especially by the United States, has resulted in various forms of populist and nationalist reactions. The legacy of the past can be seen today in the attitudes toward foreign influence. Although the upper and middle classes tend to emulate North American life-styles and be supportive of United States policies, the Nicaraguan poor are highly suspicious of the culture and political intentions of the United States.

4. Special Taxes

Few countries offer as light a tax burden as Nicaragua.

Income tax

For individuals, income tax (IR) is calculated on a progressive tax rate, up to a maximum of 30%. Taxable income is based on Nicaraguan-source income. As a foreign retiree, you pay no taxes on out-of-country earnings.

Value added tax

This tax applies to the following acts performed in the national territory: sales of goods, providing of services, and importation of goods. It is calculated at a flat rate of 15% on the value of the goods or services. If you own a business the value-added tax will be returned to you.

Transfer tax

Property transfers are subject to a 1%-3% pre-payment income tax on the purchase price. While most sellers ask the buyer to pay it, you should be aware that it is a pre-payment of income tax; therefore, it is legally payable by the seller.

Real estate tax

Annual property taxes are approximately 1% of the 80% of the municipal cadastral value of the property. The cadastral value of the land is calculated substantially lower than the market price of the land. Special Taxes

5. Role of Local Government

Municipal governments have introduced a new element to Nicaraguan politics that promises to substantially decentralize political power and influence. Established by the Law on Municipalities adopted by the Sandinista National Assembly in August 1988, the first municipal governments were selected in 1990. The municipal government structure with basic governing authority is the Municipal Council (Consejo Municipal). Under the provisions of the law, citizens vote directly for council members; the number of these depends on the size of the cities. Once elected, council members select their own leader, the mayor, who serves with their approval.

Administratively, Nicaragua is divided into nine regions, which are subdivided into seventeen departments (fifteen full departments and two autonomous regions in the Caribbean lowlands that are treated as departments). In 1992 the country had 143 municipal units of varying sizes. Of the municipal units, fifteen were cities with populations estimated at more than 50,000; Managua, the capital city, was the largest, with an estimated 1.5 million inhabitants. Of the remaining municipal units, thirty were cities with populations estimated between 20,000 and 50,000, twenty-three were towns of 10,000 to 20,000 inhabitants, and seventy-two had fewer than 10,000 inhabitants. The number of council members is based on the number of inhabitants; in 1992 Managua had the most, with twenty council members. Cities that are department capitals or have 20,000 or more in population have ten council members; towns with fewer than 20,000 inhabitants have five.

The responsibilities and powers of the municipal governments and their method of conduct are based on constitutional provisions and on the 1988 Law on Municipalities. Article 176 of the constitution provides that the municipality is the "basic unit" of the administrative political divisions of the country. Article 177 provides that municipal authorities "enjoy autonomy without detriment to the faculties of the central government." The Law on Municipalities enumerates the responsibilities of the municipal government, specifies its taxing powers, and establishes rules for its functioning. Among the responsibilities are control of urban development; use of the land, sanitation, rainwater drainage, and environmental protection; construction and maintenance of roads, parks, sidewalks, plazas, bridges, recreational areas, and cemeteries; verification of weights and measures; and establishment of museums, libraries, and other cultural activities. As is true in the United States, the primary taxing power of municipal governments is assessment on property, including houses and vehicles.

D. Legal System

1. Organization of the judiciary system

The Constitution of Nicaragua establishes that justice emanates from the people and shall be imparted on their behalf by the Judicial Branch made up of the courts of justice established by law (Article 158 of the Constitution). The courts of justice comprise a single system, whose highest body is the Supreme Court. The Judicial Branch shall receive no less than 4% of the General Budget of the Republic. There shall be courts of appeal, district judges, and local judges, whose organization and operation will be determined by law (Article 159 of the Constitution). The Judicial Career is established, which shall be regulated by law (Article 159 of the Constitution). The jurisdictional powers of deciding cases and carrying out those decisions are the exclusive purview of the Judicial Branch. The military courts shall only hear matters involving strictly military crimes and misdemeanors, without prejudice to petitions and appeals before the Supreme Court. The administration of justice guarantees the principle of legality; and it guards and protects human rights by applying the law in matters and trials within its sphere of competence (Article 160 of the Constitution).

2. Code, common, socialist, or Islamic-law country?

Nicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government. In 1995, the executive and legislative branches negotiated a reform of the 1987 Sandinista constitution which gave impressive new powers and independence to the legislature--the National Assembly--including permitting the Assembly to override a presidential veto with a simple majority vote and eliminating the president's ability to pocket veto a bill. Both the president and the members of the unicameral National Assembly are elected to concurrent 5-year terms. The National Assembly consists of 90 deputies elected from party lists drawn at the department and national level, plus the defeated presidential candidates who obtained a minimal quotient of votes. In the 1996 elections, the Liberal Alliance won a plurality of 42 seats, the FSLN won 36 seats, and nine other political parties and alliances won the remaining 15 seats.

3. Participation in patents, trademarks, and other conventions – Non Relevant

E. Social Organizations – Non Relevant

F. Business Customs and Practices

Nicaragua remains one of the truly informal societies, and this extends to business situations. Formal attire is used only at the most formal occasions, and over-dressing is considered in poor taste. Dressing more formally is acceptable for a first contact meeting. Subsequent meetings are normally more relaxed. The four pocketed-shirt guyabera worn in many Latin countries, is still in use by many businessmen.

Another important aspect of the informality of the business environment is related to time, which, as in most Latin countries, is very relaxed. It is completely acceptable to arrive for a meeting at least 20 minutes late. Thirty minutes is the outside limit. After 40 minutes, it is considered a clear insult unless a very reasonable excuse is offered. Tardiness is acceptable both in arriving for a meeting and in being received upon arriving for a prearranged meeting. All meetings are prearranged.

Plan plenty of time at the end of the meeting. Meetings in Nicaragua come to a natural conclusion, rather than being determined by a clock. Rushing off to another meeting is viewed as disinterest in the people who are at the present meeting, and placing more important on your next meeting or task. It is, in all reality, considered rude.

It is common courtesy to proffer a business card. However, many people still do not carry them, although this practice is increasing. It is best to have one, particularly if you are a foreigner since foreign names are often more easily understood if they are written down. So, to facilitate this, extend your business card as you introduce yourself. Pronounce your name clearly.

Nicaraguans are very physical, warm and affectionate in general. A handshake is often accompanied with the opposite hand being extended to the other person’s shoulder, or gently holding the other person’s arm above the elbow. Among more familiar associates, a warm embrace among men is also common.

Women frequently kiss one another on their cheeks when greeting one another, and this may be repeated when saying good-bye. A man who has a long-standing professional relationship with a woman may also kiss her on the cheek. If the relationship is also of a friendly nature, a kiss on the cheek is common. Again, this may happen when greeting one another and when departing. If there is concern about making an error, it is wise to err on the side of the warmer greeting. If the receiving person considers it too forward, they will most likely go along with it and appreciate the attempt at local customs. Erring on the more distant, colder option is received as a rejection. Although not a critical error, it doesn’t leave the best first impression.

During a discussion, it is not uncommon for people to touch the person sitting beside them, placing their hand on their neighbor’s forearm or shoulder to make a point. Eye contact is plentiful, relaxed and encouraged. Being physically relaxed and capable of respectful body contact is a must for the successful businessperson in Nicaragua. Difficulty with this is readily detected and insights a sense of wariness and doubt. It goes without saying that the physical contact should never be misconstrued. Inappropriate body contact is not appreciated, and while the person may not overtly react, it will have a lasting impact on your relationship. Occasionally this is used strategically to the disadvantage of the person later on.

Finally, it is common to hear men and women alike complement the appearance of a colleague. In fact, it is expected, particularly by women. However, be careful to be respectful, to make the complement in public and not to dwell on it.

All of these rules, as well as many others, are easily learned by simply observing Nicaraguans interact with one another. They are very open in their treatment of one another, and always pleased to see a foreigner trying to fit into local customs.

V. Religion and aesthetics

a. Religion and other belief systems – Non Relevant

b. Aesthetics – Non Relevant

VI. Living Conditions

a. Diet and nutrition – Non Relevant

b. Housing – Non Relevant

c. Clothing – Non Relevant

d. Recreation, sports and other leisure activities – Non Relevant

e. Social Security – Non Relevant

f. Healthcare – Non Relevant

VII. Language

a. Official language – Spanish

b. Spoken versus written language – Spoken

c. Dialects – Nicanol