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Nicaragua 1983, Nationalizing the gold mines, sure output will drop but if the money stays here?

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.

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Nicaragua 1976, Somoza will bleed the peasants dry and then automate their function

This series of stamps shows American progress over 200 years in celebration of the Bicentennial that year. In it though you can spot the hereditary Somoza regime’s plan to pacify the country. The plan was pretty fanciful, but lucky for the USA at the time Nicaragua was only exporting their rich people. The much more numerous poor would have to wait a few more generations. 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.

The multiple harvesters are not an accurate picture of agriculture in Nicaragua even over 40 years later. Then President Somoza’s son might argue it might had the Somozas not been forced to flee in 1979, who knows how much  extra progress might have occurred. The wealthy landowner class would surely have been interested in automating the peasant function.

Todays stamp is issue A308, a 3 Centavo stamp issued by Nicaragua on May 25, 1976. It was a 16 stamp issue in various denominations the showed before and after views of American progress after 200 years in various fields. According to the Scott catalog, the stamp is worth 25 cents whether it is mint or used.

Anastasio Somoza was the third member of his family to serve as President. It was a corrupt regime of the landowner class and as was common, a big percentage of the families lived overseas. Somoza’s mother was French and his wife Hope, though a cousin, was born and raised in the USA. Somoza took power in 1967 after his older brother had bowed out. Central America was starting to be the recipient of massive food aid from the USA that was reducing hunger and what soon followed was a great increase in population, mainly among the poor. These masses of peasants were not satisfied with the regime which seemed to be routing the American aid from them to the leaders pockets. Meantime Hope, now Madame Somoza, was appearing in worldwide best dressed lists.

Madame Hope Somoza with an American Cardinal. she was less popular with local priests and their annoying liberation theology

One moneymaking scheme of the Somoza’s was especially offensive to the poor. He set up a company Plasimaferesis. Every day thousands of peasants lined up for 35 Cordobas in exchange for their blood. This was immediately exported. When this practice continued after a large earthquake in 1972 it was very damaging to the regime. Again there was an outpouring of aid that seemingly wasn’t getting through to the peasants. When Carter became President of the USA in 1977, he cut off aid to people like Somoza due to their stench. !977 was a rough year for Somoza has he also had a heart attack which saw his son as caretaker while he sought treatment in the civilized world. With the only military aid coming in from Isreal it was time to strike and the local leftists took up the cause of the peasants. It was the Somoza’s time to leave. The USA would not take President Somoza and he ended up in Paraguay with his mistress. Hope separated from him and moved to London. In 1986, the leftists came for Somoza in Paraguay as they had for his father in 1956. Operation Reptile, lead by a Argentine leftist code named Ramon assassinated Somoza by blowing up his Mercedes outside his estate. It took two RPG shots, the car was well armored. Former? Madame Hope Samoza found a rich Salvadoran to marry the next year.

The leftists of course were not any better for the peasants as they were not going to attract American aid and the East was only generous with out of date arms. Now Central America has learned to send their peasants to the USA directly to claim their aid. These peasants are lined up also outside American blood plasma centers to sell their blood every morning. Ironic isn’t it.

Well my drink is empty and I think I may reread my old piece on William Walker. See https://the-philatelist.com/2018/09/27/costa-rica-remembers-the-the-drummer-boy-that-saved-central-america-from-an-american-manifest-destiny/   . Come again tomorrow for another story that can be learned from stamp collecting.