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By Rubén Berríos

Abstract

This paper was written while the author was a research intern with the Latin American Program of the Woodrow Wilson International Center for Scholars, from July 1 to September 30, 1984. An earlier version was presented at the Fourth General Conference of East-South Cooperation Working Group (EADI), Madrid, September 3-7, 1984. A revised version was presented at the international seminar on "Soviet-Latin American Relations in the Eighties," organized by FLACSO and held at the Wilson Center, March 1, 1985.

Since 1979, Nicaragua has pursued a commercial strategy based on diversifying its trade dependence. Concerted efforts have been made to identify and establish new markets. One of these markets is that of the Council of Mutual Economic Assistance (CMEA), or socialist countries. An assesment of the first five years demonstrates that the socialist countries have become Nicaragua's promising outlet for market diversification as well as an important source for credit and technology. In turn, the otcady growth of euch relations has caused a directly proportional deterioration of United States-Nicaraguan relations. Nicaragua's relations with the socialist countries have produced various forms of cooperation, and a number of agreements have been signed. Nevertheless, contrary to Washington's beliefs, the motivation of the socialist countries' support for Nicaragua seems more pragmatic than ideological. The Soviet Union's stake in the region is still small, based partly on the recognition of U.S. geopolitical primacy in the area, CMEA limited resource transfers, the non-Mar xist nature of Nicaragua's government, and the fact that the USSR has more pressing problems at home. However, contacts have continued to develop rapidly, partly due to increased U.S. pressure and partly at the insistance of the Sandinistas\ who often visit the socialist countries, requesting more economic and political support.

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