THE NICARAGUAN ECONOMY 43
In the short term this will take the form of new trading patterns with Mexico, Venezuela, the Caribbeah and Europe while in the longer term, depending on the political evolution of the region as a whole, Central American Common Market agreements could be renegotiated and strengthened, particularly in the field of inter-public enterprise trade.
At the domestic level, the existence of a relatively buoyant food production sector means that there is little need for collectivization; such institutional changes as do take place will largely consist of encouraging the growth of small and medium-scale cooperatives with the state taking responsibility for a sufficient proportion of food marketing to control prices of basic staples. Unlike the classical Soviet experience, there is no need for "primitive accumulation" through the manipulation of the internal terms of trade; if anything, the problem will be to make good more favourable terms of trade for the peasantry by reorienting manufacturing towards providing the simple consumer and producer goods necessary to encourage development of the traditional sector. Central American countries for the most part already have a significant "modern" sector, and the main thrast of policy must be to capture and redirect surpluses from this sector towards popular consumption and state productive investment. Striking an appropriate balance between these is, of course, a major concern of policy, and care must be taken to avoid the temptation to over-invest in social provision at the expense of growth. Hence the accent on decentralized social services and attaining rudimentary standards of health, housing and education for the majority rather than of providing extensive and costly services entirely through the central government,
In conclusion, therefore, the Nicaraguan experience stands not only as a source of political inspiration to those struggling for an end to dictatorship and political repression in neighbouring countries, but is an invaluable guide to new patterns of economic development which victory would make possible. To the extent that the Nicaraguan experience prospers, the process of political liberation and transformation in the region will be made easier. At the same time, it is obvious that the success of these struggles will decisively shape Nicaragua's own future, particularly in the coming few years as the Sandinista government attempts to consolidate and build upon its new economic and political foundations.