The major roadblocks are:
(1) Unpredictability of enforcement of contracts and a cumbersome legal system. This has improved in recent years, but still has a way to go. Requests for bribes do occur.
(2) Pending resolutions of Sandinista-era property claims (including U.S. citizen claimants). Potential investors should consult a local attorney to verify property titles before purchasing property.
(3) Sometimes high operating costs in terms of transportationand telephone. Power outages also lead to higher costs.
(4) An incomplete intellectual property rights regime. New copyright legislation was passed July 5, 1999, which strengthens copyright law, but enforcement and respect of copyright is still generally lax.
(5) Arbitrary or slow bureaucracy. Doing business in Nicaragua can sometimes mean becoming involved with slow moving government approvals. Foreign investors also complain about arbitrary customs procedures and valuations. |
