Rationing in Nicaragua Rationing in Nicaragua In 1984, the FSLN announced rationing for 20 basic goods, including rice, sugar, milk, and toilet paper. At this time, the FSLN were fighting an expensive war against the Contra guerrillas who were funded by the Reagan Administration. The FSLN tried to stabilize the economy by focusing more on the production of export crops and less on the production of domestic crops. In doing this they also had to implement rationing so that the consumption of domestic crops would be lowered. The war made it very hard to sustain the economy and Nicaragua’s regular economy took a
Rationing Rationing Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, and in western civilization people experience some of them in daily life without realizing it. Rationing is often done to keep price below the equilibrium (market-clearing) price determined by the process of supply and demand in an unfettered market. Thus, rationing can be complementary to price controls. An example of