Óscar René Vargas: Spending on Police and Army
Economist Oscar René Vargas warns that the sustained increase in spending on police and the army in Nicaragua, above GDP growth, represents an unproductive use of public resources that limits economic development and social well-being.
TL;DR
- Increased spending on police and the military in Nicaragua is considered unproductive by economist Oscar René Vargas.
- This spending exceeds GDP growth, limiting economic development and social well-being.
- The police budget increased by 52.71% from 2018 to 2026, while GDP grew by an average of 3.4% annually in the same period.
- The army's budget saw an average annual increase of 17.18% from 2007 to 2026, five times higher than GDP growth.
- Unproductive spending on repression hinders potential economic growth and limits investment in education, health, housing, and water, leading to less formal employment, more informal jobs, and increased poverty and inequality.