German development cooperation has the general objective of contributing to the creation of dignified lives of all human beings, promoting democracy, economic development, a fairer distribution of income, and the sustainable use and protection of natural resources. In these efforts, the Millennium Development Goals make up the frame for the obligatory orientation of German cooperation. Germany is also committed to a process of harmonisation and alignment in order more effectively and efficiently apply the official development aid.

In the German policy for cooperation, Nicaragua continues to be a very important partner in Latin America. Since 2002, the governments of Nicaragua and Germany have established the following three priority areas:

• decentralisation and strengthening of the rule of law and democracy
• environmental policy, protection and sustainable use of natural resources
• drinking water and sanitary drainage

These areas were confirmed in the inter-governmental negotiations held in late November 2007 with the present government of Nicaragua. Besides bilateral cooperation, the German Government also contributes considerable funding to the European Union and multilateral organisations that promote cooperation programmes in the country. It should be mentioned that a large number of non-governmental organisations are playing an important role in the cooperation policy and in many cases, they receive co-financing (matching funds) through the Federal Government of Germany. There are also more than 20 sister-city / twinning relations between Nicaraguan and German cities, which for many years have jointly developed projects in different sectors. All these activities are a good indication of the firm commitment of Germany to and for Nicaragua.