Fluent Essays

This week, you will identify and describe the basic elements of the fiscal structure for the Town of Masachapa’s local government (Mayor’s Office and Council of Representatives). You will analyze the aspects of the strategic plan that are vulnerable to the financial situation of the town and its fiscal management; developing strategies to address those vulnerabilities.To prepare for this Assignment:Review Week 8 information in the Virtual City: Revitalizing Masachapa Project multimedia.Review Chapter 9 in Bryson (2018).Consider the relationships between the fiscal structure for the Town of Masachapa and the RMP Strategic Plan.The Assignment (3–4 pages):Based on the information provided in Week 8 of the Virtual City: Revitalization of Masachapa Project multimedia, identify and analyze the basic elements of the fiscal structure for the town of Masachapa’s local government (Mayor’s Office and Council of Representatives). Then do the following:Analyze the aspects of the strategic plan that are vulnerable to the financial situation of the town and its fiscal management.Develop strategies to address those vulnerabilities.Support your Application Assignment with specific references to all resources used in its preparation. Use APA style for this and all assignments. the_project.pdf revitalizing_masachapa_project_files.zip Unformatted Attachment Preview Virtual City: Revitalizing Massachapa Project: Week 2 Virtual City: Revitalizing Massachapa Project: Week 2 Program Transcript Hotspot/Institution: Introduction In this course, you will have the opportunity to engage in a Virtual City project in which you will be involved in making strategic decisions and applying strategic planning, management, and leadership skills learned throughout the course. You will be asked to respond to a series of events and situations affecting a revitalization project for the town of Masachapa, Nicaragua. As a member of a team of expert consultants from Walden University, your task will be to support the towns local government, as well as other key stakeholders involved in the Revitalization of Masachapa Project. Within the different locations, you will find certain buildings and locations marked with colored dots. These hotspots contain information about the people and organizations and their role related to the revitalization project. During the course, you will be asked to review some of these hotspots to complete discussions or assignments. Hotspot/Institution: Nicaragua Hotspot/Institution Graphical Designation: Map of Nicaragua Hotspot/Institution Background Information: Nicaragua has been growing on average with Latin America over the past decade. Disciplined macroeconomic policies since 2001, combined with a steady expansion of exports and foreign direct investment, helped Nicaragua to weather the recent global economic turbulence of the 2008–2009 crisis, as well as rising food and oil prices. After a quick rebound in 2010, economic activity grew at 5.4\% in 2011, the highest rate in a decade. Inflation was also tamed to single digits—around 8\% in 2011, down from a high of 25\% in mid-2008. The macroeconomy remains stable, with a GDP forecast growth of 4.2\% in 2014, and foreign direct investment and trade show an improved outlook. Nicaragua’s economic turnaround has allowed the country’s decision makers to shift from crisis-control mode to longer-term, pioneering strategies to fight poverty, particularly in remote rural communities. Massive debt relief by the International Development Association (Link to IDA © 2014 Laureate Education, Inc. 1 Virtual City: Revitalizing Massachapa Project: Week 2 http://www.worldbank.org/ida/), the World Bank’s unit to assist the poorest countries, has helped to make this shift possible. However, Nicaragua is still one of Latin America’s least developed countries. Poverty, although declining steadily in recent years, remains high. More than 80\% of Nicaragua’s poor live in rural areas, with many in remote communities where access to basic services is still a daily challenge. Nicaragua’s government officials are working on the implementation of Nicaraguas Country Partnership Strategy (CPS) for 2013–2017 to further address poverty reduction while promoting prosperity for more Nicaraguans. The government of Nicaragua has determined the following two strategic objectives: Improve social welfare by improving access to quality basic services, in particular by poor rural household Raise incomes by improving productivity, competitiveness, and diversification Hotspot/Institution Current Situation: Coppel is a Democrat in the city council. He has served on the council for the past 12 years. His major issues are education, the environment, and health and safety. He recently sponsored a ban on smoking in the city and strongly supports fines for polluters. He is supported by Peacetree, which is the primary environmental nonprofit advocacy group in the city. Coppel has raised a respectable amount of money for his campaign and has the support of the local Democratic Party organization. However, New Harbor is a primarily conservative city and Democratic candidates have provided only token opposition in past mayoral elections. Hotspot/Institution: Masachapa Hotspot/Institution Background Information: The town of Masachapa has been chosen as a strategic location for the Nicaraguan government’s revitalization effort given the towns tourism potential and its traditional fishing industry. Masachapa is approximately 60 kilometers from Managua, the capital city of Nicaragua. It is located along the Pacific coastline of Nicaragua. The town has a population of about 10,000. Masachapa is predominantly a fishing town. Its fishing industry has been the key source of jobs for Masachapans for over a century. Recently however, tourism (both national as well as international) is changing the social and economic landscape of the town. Masachapans welcome these changes and new opportunities. However, they fear that the towns traditional fishing industry might disappear as opportunities for higher incomes lure workers toward the tourism © 2014 Laureate Education, Inc. 2 Virtual City: Revitalizing Massachapa Project: Week 2 industry and away from the fishing boats. The fishing industry has great potential and demand is high. However, a lack of financing, infrastructure, and technology have kept the industry from flourishing. Likewise, the town is very concerned with the lack of adequate infrastructure to provide basic needs, mainly water and sanitation, education, and roads. The town authorities have met with representatives from the local community to address these concerns. They have sought the support of the central government and the World Bank in this endeavor. The World Bank has agreed to finance a team of specialists from Walden University to manage the Revitalizing Masachapa Project. Hotspot/Institution Key Town Facts: • Predominantly Roman Catholic (90\%) • Town centered around the church square • Government: Mayor is the executive officer of the town • The town council is comprised of elected public officials. The town council has decision-making power, but the mayor has the final decision. • The town square is paved. However, most secondary streets are unpaved, making it difficult for vendors and fisherman to transport their products to market. • Main street features the primary school, a hardware store, small vendors, a gas station, a bank, restaurants, the local police station, and the court house. • 60\% of the town has access to running water and sanitation. • The town has access to primary education only. Secondary education is offered at the nearby town of San Rafael del Sur, which is about 30 minutes away by public transportation. • 60\% of the town’s citizens have primary education. However, only 20\% have a high school diploma. • Masachapa can be accessed via two major highways. Masachapa is about a 1hour drive from Managua but 2 hours from the only international airport in the country. The Costanera Highway, which connects to the Central American Pacific coastline, runs right through Masachapa. However, the highway is in very poor condition due to substandard construction and lack of maintenance by the national government. © 2014 Laureate Education, Inc. 3 Virtual City: Revitalizing Massachapa Project: Week 2 • The town features a runway capable of landing small commercial aircraft. The runway, built 50 years ago, was part of a project to build an international airport before the civil war in 1979. The runway is used by private planes and the Nicaraguan armed forces. Plans to expand the airport are underway, but the Nicaraguan government has been unable to find adequate financing to build a state-of-the-art international airport. • The town is near two large beach resorts: Mariana Beach and Golf Community (U.S. investors) and Montelimon Beach Resort (Spanish investors). • Masachapa also includes Pochomil Beach. Hundreds of people own property along the beach, attracting tourists every year during the dry season (December to May). These vacationers are seasonal but they represent an important contribution to the local economy in terms of tax revenues as well as demand for goods, services, and labor. Hotspot/Institution: Town Hall Hotspot/Institution Graphical Designation: Town Hall Building Hotspot/Institution Background Information: The town government is comprised of Mayor Maria Gutierrez; a member of the Sandinista National Liberation Front (FSLN), and five council members. Eddie Vigil and Carolina Mendez are members of the Nicaraguan Opposition Party (NOP). Juana Lopez and Carlos Almandarez are members of the Sandinista National Liberation Front (FSLN). Ernesto Matamoros is an independent member on the council. The Mayor is elected to a four-year term. The Council is elected to two-year terms. Elections for the council positions were to have taken place last December. However, no new elections have been announced and, as a result, the town council representatives are continuing in their current positions. Additional Content: Click here to download a document concerning the Revitalization of Masachapa Project: The Fishing Port. Revitalization of Masachapa Project: The Fishing Port Improvement of the Masachapa fishing industry ranks high in the development plans of the Republic of Nicaragua. Because there is scope for increasing the earnings from fisheries exports and for augmenting the country’s food production through increased supply and consumption of food fish, the government of © 2014 Laureate Education, Inc. 4 Virtual City: Revitalizing Massachapa Project: Week 2 Nicaragua has prepared a comprehensive program for fisheries development, featuring the construction of a fishing port in Masachapa, Nicaragua. On the Pacific coastline, where the country’s principal fishing grounds are located, there is a lack of adequate port facilities. Food fish is landed on the shores along the coast of Masachapa. The shrimp boats come into wharves along the waterfront in the heart of the city. But the small and artisanal shrimp plants located there lack room to expand and don’t meet international sanitary standards required for exports. The construction of suitable port facilities close to the town’s center is necessary, not only for the efficient operation and development of the fishing industry but also for improving overall living conditions in Masachapa. Such a port will make it possible to exploit the newly discovered deep-water species of shrimp and to capitalize on the growing demand for lobster and dorado (mahi-mahi, as it’ s known in the U.S.). The World Bank has allocated funds to finance this project, but the release of these funds is pending the results from Walden University’s team of consultants. World bank Loan Project 784-NICAMAS for the Construction of a Fishing port at Masachapa. Under Loan 784-NICAMAS, the World Bank would finance the construction of a modern fishing port at Masachapa. The port will be sheltered by a breakwater and will have berths for landing vessels that bring in shrimp, lobster, tuna and other food fish. The port would include a processing facility and a cold storage facility. Fish marketing offices, a ship-repair yard and utilities will also be provided. The facilities will be adequate to meet the demand forecast for 2020, with provision for further expansion at a later date, if necessary. The proposed project involves construction of a breakwater to create a sheltered harbor that will be equipped with all necessary facilities for the berthing, servicing, and repair of vessels, as well as for the processing of the day’s catch. In addition to providing improved conditions for the operation and growth of a major part of the Nicaraguan fishing industry, the proposed project will also serve as the cornerstone of the Revitalization of Masachapa Project. World Bank officials, as well as Nicaraguan government officials, expect the port to generate significant revenue for the town’s fishing industry as well as export income for the country as a whole.. This will be the first port project to be financed by the World Bank in Nicaragua. The Bank’s officials in Managua have been skeptical about the Nicaraguan central government’s commitment to improve living conditions along the Pacific coast. Lately, the government’s focus has been on the Atlantic coast, given the © 2014 Laureate Education, Inc. 5 Virtual City: Revitalizing Massachapa Project: Week 2 Atlantic coast’s proximity to the Gulf of Mexico, the Caribbean, and the U.S. Gulf States. The project, which also includes consultant services for supervision of construction as well as technical assistance for port operation and management and for training of the port authority staff, is estimated to cost US$45.0 million. The World Bank is prepared to finance 70\% of the total cost (including $5 million additional in accrued interest during the construction of the port facility). However, the remaining 30\% needs to be financed by the Nicaraguan government. So far, the Nicaraguan central government has not demonstrated a firm commitment to provide the remaining $15.5 million dollars, which would be needed to finance the total cost of the project. Project execution is expected to take 3 years from the launch date. As a result, the general consensus is that the central government wants to wait until after the national elections to decide whether or not to go ahead with the project. 1 Note: Parts of this section were taken from The World Bank Group’s Report No. 629a-PAN,1975. Tab Designation: Mayor Gutierrez Mayor Gutierrez Information: Mayor Maria Gutierrez is in her first four-year term in office. She is a militant member of the Sandinista National Liberation Front (FSLN), the same political party as the national government. Her approval rating so far is 50\%, as many criticize what they see as her lack of initiative to attract tourism and investors to Masachapa. She is also seen as merely a pawn of the central government, needing an OK from the president of Nicaragua for any decision involving the town. Mayor Gutierrez Reaction to Revitalization of Masachapa Project: The Revitalizing Masachapa Project is long overdue and signifies the future of Masachapa. However, the project must involve groups throughout the community to be successful. Different groups have different interests in the downtown. And, while each may have a particular focus, all groups ultimately share the common goal of revitalizing the town. By involving a broad range of constituents in the process, the downtown program can help each group realize that this common goal exists and that cooperation is essential for successful revitalization. Right now, I believe our biggest obstacle is not financing but cooperation. Tab Designation: President of Nicaragua Nicaraguan President Danilo Ordoñez Information: © 2014 Laureate Education, Inc. 6 Virtual City: Revitalizing Massachapa Project: Week 2 Nicaraguan President Danilo Ordoñez, a member of the National Liberation Front (FSLN), is currently in his second consecutive term in office. His approval rating is about 50\%. However, he enjoys the support of key international organizations like the World Bank and the Interamerican Development Bank (IDB), and he has been able to maintain a working relationship with the United States in spite of his anti-imperialism rhetoric aimed at Washington. He has tremendous power as he has amended the Nicaraguan Constitution recently, which grants him the right to seek reelection indefinitely. One of the notable achievements of his administration has been his ability to attract and promote direct foreign investment to the country. This figure has quadrupled (from 250 million to 1 billion dollars) since he first took office in 2007. However, investment in tourism accounts for only 5\% of total direct foreign investment, or DFI. Tab Designation: Council Representative Vigil Eddie Vigil, Masachapa Council Representative, member of the Nicaraguan Opposition Party (NOP) Information: Mr. Eddie Vigil has been a town council representative since 2000. He was elected during the administration of President Enrique Boloni, a member of the Nicaraguan Opposition Party (NOP). During the last few years, he has seen his leadership role within the council diminish as a result of his opposition to the local and national governments. Tab Designation: Council Representative Mendez Carolina Mendez, Masachapa Council Representative, member of the Nicaraguan Opposition Party (NOP) Information: Ms. Carolina Mendez is the newest member of the Council. She is a member of the Nicaraguan Opposition Party (NOP). She is viewed by the Sandinista National Liberation Front (FSLN) as a new generation of elected officials who are willing to negotiate and look beyond party lines. The World Bank Country Manager, Camilla Petty, has also built a positive rapport with Ms. Mendez. Council Representative Mendez Reaction to Revitalization of Masachapa Project: By identifying each organization’s greatest strengths, we as Town Council can help focus that energy in the areas where it will be most effective and have the most to contribute. For example, the business owners retail and service sector activity is an important part of the downtown’s economic base; consequently, business owners have a vested interest in the success of the revitalization program. Retailers are often most interested in, and the most valuable contributors to downtown promotional activities. © 2014 Laureate Education, Inc. 7 Virtual City: Revitalizing Massachapa Project: Week 2 Tab Designation: Council Representative Lopez Juana Lopez, Masachapa Council Representative, member of the Sandinista National Liberation Front (FSLN) Information: Ms. Juana Lopez is a staunch militant of the Sandinista National Liberation Front (FSLN). She has very strong ideological objections with the World Bank and the opposition; blaming the World Bank for being a pawn of the United States to destabilize the current national government. She also thinks that the Revitalizing Masachapa Project is going to destroy the identify and small town feel of the town; believing that once the airport is opened for international commercial flights, and the pier is finished, the town will turn into what she calls a Yankee tourist trap. Tab Designation: Council Representative Almandarez Carlos Almandarez, Masachapa Council Representative, member of the Sandinista National Liberation Front (FSLN) Information: Mr. Carlos Almandarez is a member of the Sandinista National Liberation Front (FSLN). However, his position is for new development and investment in Masachapa including fully supporting the Revitalization of Masachapa Project (RMP). Tab Designation: Council Representative Matamoros Ernesto Matamoros, Masachapa Council Representative, independent member on the council Information: Mr. Ernesto Matamoros is the only member on the council who does not represent a specific political party. He states that he is currently undecided regarding the Revitalization of Masachapa Project (RMP). Representatives from both the Nicaraguan Opposition Party (NOP) and the Sandinista National Liberation Front (FSLN) have expressed that they believe that Mr. Matamoros is only staying noncommittal in order to be in a position to demand a bribe or some other kind of incentive to vote one way or the other. Hotspot/Institution: The World Bank Hotspot/Institution Graphical Designation: The World Bank Office Building Hotspot/Institution Background Information: The World Banks country manager is Camilla Petty, with her main office in Managua. Ms. Petty is Puerto © 2014 Laureate Education, Inc. 8 Virtual City: Revitalizing Massachapa Project: Week 2 Rican and has 20 years experience with the World Bank. However, Ms. Pettys tenure as country manager ends this month. The World Bank has not yet named Ms. Pettys replacement. (Link to The World Bank webpage: http://www.worldbank.org/en/about) Camilla Petty, The World Banks Country Manager, Reaction to Revitalization of Masachapa Project: “We have been working very closely with Nicaraguan government officials a ... Purchase answer to see full attachment