One of the first actions of the new Sandinista regime in 1979 was nationalizing all the mines. Almost all mining in Nicaragua is gold. This stamp talks up this action as an achievement. 44 years later Nicaragua has the same regime it had in 1979. Perhaps now is a good time to judge how it went. So slip on your smoking jacket, fill your pipe, take your first sip of your adult beverage, and sit back in your most comfortable chair. Welcome to todays offering from The Philatelist.
I have a great love of stamp issues from a new communist regime. The countries always have big industrial plans that their now in power technocrats are eager to try out. They are best early on in the regime when there really is much optimism, Here in Nicaragua we get the optimism with better modern stamp printing of the 1980s, thus a unique stamp. Notice mining is shown as an advanced high tech enterprise. Not a man breaking his back in a dark, airless hole picking at a rock. No this is a stamp by and for technocrats. Compare this to this Japanese mining stamp I did a while back, https://the-philatelist.com/2019/08/02/japan-1948-getting-back-to-work-in-the-mine/ .
Todays stamp is issue A166 a 1 Cordoba stamp issued by Nicaragua on October 2nd, 1983. It was a two stamp issue, the higher value being airmail, celebrating the nationalization of the mining industry. According to the Scott catalog, the stamp is worth 25 cents cancelled to order.
There are mines in Nicaragua that mine silver, copper, lead, and zinc. All the way back to the Spanish, gold mining was front and center to the industry in Latin America. The usual method was that foreign companies would pay the government for the mining concession and handle the mine themselves. The political left is not wrong in it’s accusation that this prevents the wealth being created from reaching the people. All of the gold mined is exported.
Nicaragua had reason to celebrate the nationalization of the gold mines in 1983. At first the mines output went up as employment levels rose and investments were made. !983, four years after the nationalization proved to be a high water mark for gold mining in Nicaragua. New veins of gold must be constantly sought out as existing ones play out. Nicaragua without outside help had no ability to do that and by 1988 the gold output had fallen in half.
The industry did also have some new challenges relating to the rivalry between the USA and the Sandinistas. The area of the mines in northern Nicaragua saw much activity from the American backed Contra rebels. In 1984 the CIA went as far as mining Nicaraguan harbors. The mines were not deadly but when struck emitted a giant boom sound designed to terrify, and discourage exports. Nicaragua felt this was an act of war and took a case for compensation to the International Court of Justice. They won in Court but the USA refused to pay even after the UN General Assembly voted 93-3 on a non binding resolution to pay.
Gold mining output is now much higher than in 1983. The country gave up on nationalization and invited in a Canadian firm to run the mines. You won’t find this success on a newer Nicaraguan stamp. The wealth created is not getting through to the people.
Well my drink is empty and I find myself sympathetic to the 80s technocrats of Sandinista Nicaragua. In power for 40 years means corruption as long replaced innovation, but early on at least there was hope. Come again soon for another story that can be learned from stamp collecting.