The Nicaraguan Canal: Globalism in (In)Action
The proposed Nicaraguan Grand Interoceanic Canal is three times as long and twice as deep as the Panama Canal (Watts, 2015). The increased size would allow the Nicaraguan Grand Canal to accommodate shipping vessels significantly larger than what the Panama Canal can currently fit, and was a central theme of President Daniel Ortega’s victorious 2013 reelection campaign. The massive project is funded by Chinese billionaire Wang Jing, and controversy surrounding the proposal has prompted a number of stakeholders on either side to speak out. Proponents of the project view the canal as a mechanism to bolster the country’s economy through increased foreign investment, free-market trade, and the creation …show more content…
In the context of the Nicaraguan Canal, the effects of globalization are immediately evident in the funding sources for the project. Wang is the head of HKND, a transnational company that is spearheading the proposed construction. Daley touches upon the mystery surrounding the company’s interest in the project, suggesting that HKND’s involvement in the canal may be a product of China’s increasing investment into Latin American countries (Daley, 2016). Alternatively, Daley also cites theories that the endeavor is secretly backed by the Chinese government, or that the investment in the effort was a reaction to the tumult affecting China’s stock markets and economy (Daley, 2016). Regardless of the HKND’s true intent, the Nicaraguan government has conceded the rights to the canal and subsidiary projects to HKND for 100 years, during which the government would reclaim 10% of the ownership every ten years (Watts, 2015). The implications of this arrangement are that a proposed airport, tourist resorts, and an oil pipeline will be built and operated by HKND following the completion of the canal (Daley, 2016). The Nicaraguan government, in turn, hopes to benefit through generation of thousands of jobs and a stimulation of the national economy through a growing trade sector (Watts,