Overview
Country, Central America.
Area: 50,337 sq mi (130,373 sq km). Population (2007 est.):
5,602,000. Capital: Managua. Most of the people are mestizos. Languages:
Spanish (official), indigenous languages, English. Religion:
Christianity (predominantly Roman Catholic; also Protestant). Currency:
córdoba. Nicaragua’s western half consists of thickly forested mountain
ranges and fertile valleys. Parallel to the Pacific coast is a belt of
40 dormant and active volcanoes. The eastern coastline along the
Caribbean Sea is known as the Mosquito Coast. Earthquakes are common and
sometimes severe. Nicaragua has a developing market economy based
largely on agriculture, light industries, and trade. It is a republic
with one legislative house; its head of state and government is the
president. The area has been inhabited for thousands of years, most
notably by the Maya. Christopher Columbus arrived in 1502, and Spanish
explorers discovered Lake Nicaragua soon thereafter. Nicaragua was
governed by Spain until the early 1820s. It became a part of Mexico
(1822–23) and then part of the United Provinces of Central America until
1838, when full independence was achieved. The U.S. intervened in
political affairs by maintaining troops there (1912–33). Ruled by the
dictatorial Somoza family (1937–79), Nicaragua was taken over by the
Sandinista party after a popular revolt. The Sandinistas were then
opposed by armed insurgents, the U.S.-backed Contras, from 1981. The
Sandinista government nationalized several sectors of the economy but
lost national elections in 1990. The new government reprivatized many
public enterprises. Sandinista leader Daniel Ortega returned to power
after winning the presidential election of 2006.
Profile
Official name República de Nicaragua (Republic of Nicaragua)
Form of government unitary multiparty republic with one legislative
house (National Assembly [921])
Head of state and government President
Capital Managua
Official language Spanish
Official religion none
Monetary unit córdoba (C$)
Population estimate (2008) 5,667,000
Total area (sq mi) 50,337
Total area (sq km) 130,373
1Includes the runner-up in the 2006 presidential election and the
immediate past president.
Main
country of Central America. It is the largest of the Central American
republics. Nicaragua can be characterized by its agricultural economy,
its history of autocratic government, and its imbalance of regional
development—almost all settlement and economic activity are concentrated
in the western half of the country. The country’s name is derived from
Nicarao, chief of the indigenous tribe that lived around present-day
Lake Nicaragua during the late 15th and early 16th centuries. Nicaragua
has a unique history in that it was the only country in Latin America to
be colonized by both the Spanish and the British. Nicaragua’s population
is made up mostly of mestizos (people of mixed European and Indian
ancestry). The national capital is Managua, which also is the country’s
largest city and home to about one-fifth of the population.
The family of Anastasio Somoza García dominated Nicaragua from 1936
to 1979, when it was toppled by an insurrection led by the Sandinista
National Liberation Front (Frente Sandinista de Liberación Nacional;
FSLN). The land, economic, and educational reforms initiated by the
socialist-oriented Sandinista regime were negated when it became
embroiled in guerrilla warfare with a U.S.-backed insurgency beginning
in the early 1980s. The Sandinista-dominated government was finally
defeated by the U.S.-funded National Opposition Union, a coalition of
parties, in the 1990 presidential elections. The election results, which
were deemed free and fair by the international community, signaled an
end to the armed conflict in Nicaragua. The Sandinistas returned to
power after winning a national election in 2006 but promised to uphold
many of the economic reforms of their predecessors.
Present-day Nicaragua is still recovering from its legacy of
dictatorship and civil war. There are ongoing disputes over land
ownership, and Nicaragua continues to be dependent on foreign aid,
mainly from the United States. Moreover, the country’s infrastructure
was severely damaged in 1998 by Hurricane Mitch, which killed more than
1,800 Nicaraguans and destroyed several villages. On the other hand, the
country has been home to many prominent artists, writers, and
intellectuals, and it began to attract a significant income from tourism
in the early 21st century.
Land
Nicaragua is bounded by Honduras to the north, the Caribbean Sea
to the east, Costa Rica to the south, and the Pacific Ocean to the west.
Relief
The western half of Nicaragua is made up generally of valleys
separated by low but rugged mountains and many volcanoes. This
intricately dissected region includes the Cordillera Entre Ríos, on the
Honduras border; the Cordilleras Isabelia and Dariense, in the
north-central area; and the Huapí, Amerrique, and Yolaina mountains, in
the southeast. The mountains are highest in the north, and Mogotón Peak
(6,900 feet [2,103 metres]), in the Cordillera Entre Ríos, is the
highest point in the country.
To the west and south of the central mountain core is a string of 40
volcanoes—some of which are active—that stretches northwest-southeast
along the Pacific coast. These volcanoes are surrounded by low plains
extending from the Gulf of Fonseca in the north to the Bay of Salinas in
the south and are separated from the mountains by the great basin that
contains Lakes Nicaragua, Managua, and Masaya. They are divided into two
groups: the Cordillera de los Marrabios in the north and the Pueblos
Mesas in the south. The highest volcanoes include San Cristóbal (5,840
feet [1,780 metres]), Concepción (5,282 feet [1,610 metres]), and
Momotombo (4,199 feet [1,280 metres]).
The eastern half of Nicaragua has low, level plains. Among the widest
Caribbean lowlands in Central America, these plains average 60 miles
(100 km) in width. The coastline is broken by river mouths and deltas
and large coastal lagoons as well as by the coral reefs, islands, cays,
and banks that dot Nicaragua’s continental shelf—the widest in Central
America.
Drainage
The central mountains form the country’s main watershed. The rivers
that flow to the west empty into the Pacific Ocean or Lakes Managua and
Nicaragua. They are short and carry a small volume of water; the most
important are the Negro and Estero Real rivers, which empty into the
Gulf of Fonseca, and the Tamarindo River, which flows into the Pacific.
The eastern rivers are of greater length. The 485-mile- (780-km-)
long Coco River flows for 295 miles (475 km) along the
Nicaragua-Honduras border and empties into the Caribbean on the extreme
northern coast. The Río Grande de Matagalpa flows for 267 miles (430 km)
from the Cordillera Dariense eastward across the lowlands to empty into
the Caribbean north of Pearl Lagoon on the central coast. In the extreme
south the San Juan River flows for 124 miles (200 km) from Lake
Nicaragua into the Caribbean in the northern corner of Costa Rica. Other
rivers of the Caribbean watershed include the 158-mile- (254-km-) long
Prinzapolka River, the 55-mile- (89-km-) long Escondido River, the
60-mile- (97-km-) long Indio River, and the 37-mile- (60-km-) long Maíz
River.
The west is a region of lakes. Lake Nicaragua, with an area of 3,149
square miles (8,157 square km), is the largest lake in Central America.
Located in the southern isthmus, the lake and its distributary, the San
Juan River, have long been discussed as a possible canal route between
the Caribbean and the Pacific.
There are six freshwater lakes near the city of Managua. They include
Lake Managua, which covers an area of 400 square miles (1,035 square
km), Lake Asososca, which acts as the city’s reservoir of drinking
water, and Lake Jiloá, which is slightly alkaline and is a favourite
bathing resort. Lake Masaya is prized for its swimming and fishing
facilities; the sulfurous waters of Lake Nejapa have medicinal
properties ascribed to them; and Lake Tiscapa is located in the capital
city.
Other lakes in the Pacific watershed include Lake Apoyo, near Lake
Masaya; Lake Apoyeque, picturesquely located between two peaks on
Chiltepe Point, which juts into Lake Managua; and the artificial Lake
Apanás on the Tuma River, which generates much of the electricity
consumed in the Pacific zone.
Soils
Soils on the Caribbean coast are varied and include fertile alluvial
types along waterways and relatively infertile types in the pine-savanna
and rainforest regions. On the Pacific coast the soil is volcanic, and
about four-fifths of its area is fertile.
Climate
The climate is slightly cooler and much wetter in the east than in
the west. The Pacific side is characterized by a rainy season from May
to November and a dry season from December to April. The annual average
temperature there is in the low 80s °F (about 27 °C), and annual
precipitation averages 75 inches (1,905 mm). On the Caribbean side of
the country, the rainy season lasts for about nine months of the year,
and a dry season extends from March through May. The annual average
temperature is about the same as on the Pacific side, but annual
precipitation averages almost 150 inches (3,810 mm). In the northern
mountains temperatures are cooler and average about 64 °F (18 °C).
Prevailing winds are from the northeast and are cool on the high plateau
and warm and humid in the lowlands.
Plant and animal life
Although Nicaragua’s forests suffer from poorly regulated commercial
exploitation and the increasing human footprint of the country’s
burgeoning population, they are still the largest in Central America.
Covering more than one-third of the country, they vary considerably in
terms of elevation and rainfall. Nicaragua’s forests contain valuable
cedar, mahogany, and pine timber as well as quebracho (axbreaker),
guaiacum (a type of ironwood), guapinol (which yields resin), and medlar
(which produces a crab-apple-like fruit).
Although rapidly being depleted, Nicaragua’s fauna includes mammals
such as pumas, jaguars, ocelots, margays, various monkeys, deer, and
peccaries; birds range from eagles to egrets to macaws to pelicans;
reptiles include crocodiles, snakes, turtles, and lizards; and a variety
of toads, frogs, fishes, mollusks, and insects are also found. Fauna,
like the flora, varies considerably from one ecosystem to another.
People
Ethnic groups
More than three-fifths of Nicaraguans are mestizos, persons of mixed
European and Indian ancestry. African and European descendants together
account for about one-fifth of the population. Indians constitute less
than 5 percent of the population. The Indian groups are split into two
regions: the west coast has a small number of Monimbó and Subtiava
groups, as well as the Matagalpa (whose language is extinct), who live
in the west-central city of the same name, while the Miskito, Sumo, and
Rama reside on the east coast. Also living in the eastern region are the
Garifuna (formerly called Black Caribs), who are descendants of the
Carib people and Africans exiled from British colonies in the eastern
Caribbean (Lesser Antilles) in the 18th century, and Creoles,
English-speaking blacks mainly from Jamaica. Spanish-speaking mestizos
constitute the largest single group on the east coast, however.
Languages
The vast majority of Nicaraguans speak Spanish. It is the sole
official language in all but the east coast regions where, under the
1987 constitution and the Atlantic Coast Autonomy Law enacted the same
year, Miskito, Sumo, Rama, and Creole English have equal status with
Spanish. On the west coast, Indian languages have disappeared, even
though their influence remains in place-names and many nouns in
Nicaraguan Spanish.
Religion
There is no official religion in Nicaragua, but about three-fifths
of Nicaraguans adhere to Roman Catholicism. Since the 1980s Evangelical
Protestantism has grown considerably, particularly among the poor, and
it is the religion of about one-fifth of the population. There are small
Moravian and Anglican communities on the Caribbean coast. A very small
Jewish community exists in larger cities.
Settlement patterns
The western volcanic mountains and surrounding lowlands and lakes
contain the majority of the country’s population, most of its cities,
and the bulk of its industry. The valleys of the western central
mountains contain a substantial population. In the second half of the
20th century, many former inhabitants of the western region migrated to
the large but sparsely populated eastern region to farm, raise cattle,
or exploit timber resources. The area remains an agricultural centre,
though some light industry has emerged.
Slightly more than half of Nicaragua’s population is urban. By far
the largest city is Managua, on the southeastern shore of Lake Managua.
Other important urban centres include León, Granada, Masaya, and
Chinandega, all in the west. Matalgalpa, Estelí, Juigalpa, and Jinotega
are among the largest cities of the central mountains. Bluefields and
Puerto Cabezas (Bilwi) are the largest towns on the Caribbean coast.
Demographic trends
Despite the loss of nearly 30,000 people who were killed in the
country’s civil war, and the hundreds of thousands who took refuge
abroad, Nicaragua’s population increased from 2.5 million to nearly 4
million during Sandinista rule (1979–90). Declining infant mortality and
a wartime “baby boom” are possible explanations. The war also spurred
internal migration and a rapid expansion of cities. These factors, along
with high fertility rates, have left the country with a young
population. At the beginning of the 21st century, nearly two-fifths of
the population was under age 15. Moreover, a restrictive abortion policy
adopted in the mid-2000s, which outlawed the procedure even in cases of
rape or a life-threatening pregnancy, was expected to further increase
the population.
Economy
Nicaragua is one of Latin America’s poorest countries and suffers
from high unemployment rates and a large external debt. Remittances from
Nicaraguans living abroad and foreign assistance are the country’s main
sources of foreign income, though income from tourism has increased
since the 1990s. The majority of Nicaraguans live in poverty.
During the 1980s the cost inflicted by the revolution that overthrew
the Somoza dictatorship and by the defense against counterrevolution
worsened the country’s plight. The Sandinista policy of developing a
mixed economy (about 60 percent private and 40 percent public) resulted
in growth from 1980 through 1983; however, public spending on many state
enterprises combined with continued price controls and subsidies led to
economic problems. A trade embargo declared on Nicaragua by the United
States in 1985, along with economic mismanagement by the Sandinista
government, brought about economic decline, service shortages,
war-driven inflation, and a growing foreign debt that lasted throughout
the decade. In the late 1980s the Sandinistas implemented an austerity
program featuring some privatization and sharp reductions in public
employment.
The post-Sandinista government sought to remove most state control of
the economy and accentuated austerity policies introduced by the
Sandinistas. Privatization was accelerated, and government spending
aimed at the country’s poor majority was curtailed. By the end of the
century, with renewed U.S. assistance and aid from international lending
agencies, inflation had been brought under control and minor growth was
being achieved. However, the government’s implementation of austerity
and structural-adjustment programs reduced or eliminated most government
welfare and led to further impoverishment of the country’s poorest
citizens.
Agriculture, forestry, and fishing
Agriculture, forestry, and fishing engage as much as one-third of
the labour force and produce about one-fifth of the total national
income. The valleys of the western central mountains yield about
one-fourth of the national agricultural production. Major crops for
domestic consumption include corn (maize), beans, rice, sorghum,
plantains, and cassava (manioc). Various fruits and vegetables also are
produced for local consumption.
Cattle are significant as a source of hides, meat, and dairy products
in the west and of meat in the east. The cattle industry grew rapidly
after World War II until the late 1970s, when internal conflicts and
government policy prompted many ranchers to reduce their herds or move
them to neighbouring countries. Other livestock include goats, hogs,
horses, and sheep.
Much of Nicaragua’s forests have been cleared for ranching and
farming, and income from the sale of timber has helped repay outstanding
international loans. Since 2000 reforestation programs have attempted to
replace the forest cover that had been exploited through illegal logging
operations.
Shrimping is the most important marine activity. Almost all of the
shrimp, caught in both the Pacific and the Caribbean, are exported;
lobsters also are exported in moderate quantities. Nicaragua’s fish
resources, however, are relatively unexploited because of lack of
investment, and marine fishing remains largely a subsistence activity.
Resources and power
Nicaragua is rich in natural resources, most of which have not been
exploited on a large scale because of lack of financing. Mineral
resources include known deposits of gold, silver, zinc, copper, iron
ore, lead, and gypsum. Of these minerals, only gold has been mined
intensively. Nicaragua has traditionally used petroleum sources (mostly
imported) for its energy production needs. Since 2000 the government has
passed various energy laws requiring the participation of the private
sector in the generation and distribution of electricity and promoting
the development of hydroelectric and geothermal plants, which together
accounted for about one-fifth of energy generation in the early 21st
century. In fact, because of its many volcanoes, Nicaragua has the
largest geothermal potential in Central America. In addition, some of
the country’s largest sugar mills have contracts with the government to
supply bioelectricity year-round using bagasse during sugarcane season
and fuelwood derived from eucalyptus during the off-season. Eucalyptus
plantations have been established for this purpose.
Manufacturing
Nicaragua’s manufacturing sector is in an incipient stage of
development and is based on the production of consumer products, many of
which require the importation of raw materials. Beginning in the late
20th century, the government actively supported the diversification of
production and the use of domestic raw materials by establishing
maquiladoras (manufacturing plants that import and assemble duty-free
components for export) in free-trade zones and by adopting free-trade
agreements. Manufactures include refined petroleum, matches, footwear,
soap and vegetable oils, cement, alcoholic beverages, and textiles.
Finance
The Central Bank of Nicaragua, established in 1961, has the sole
right of issue of the national currency, the córdoba. The financial
system had been dominated by the government-owned Finance Corporation of
Nicaragua, an amalgamation of the country’s banks established in 1980,
but by the early 21st century, several private banks and microfinance
institutions had been established.
Trade
Traditionally dependent on U.S. markets and products, Nicaragua
began trading with a wider group of countries—including Cuba and those
of eastern Europe—during the Sandinista period. At no point, however,
did commerce with those countries predominate. Indeed, when Nicaragua’s
major trading partner, the United States, declared an embargo on trade
with Nicaragua in 1985, several Western countries sharply increased
their imports from Nicaragua. From the 1970s through the mid-1990s, the
value of Nicaragua’s imports (most notably petroleum, nonferrous
minerals, and industrial products) greatly exceeded that of its exports.
After 1990 trade with the United States was resumed. At the beginning of
the 21st century, Nicaragua’s main export products were coffee, beef,
sugar, and seafood. About one-third of Nicaraguan exports went to the
United States, with smaller proportions going to El Salvador, Honduras,
Costa Rica, and Mexico. Imports included nondurable consumer goods,
mineral fuels, capital goods for industry, and transport equipment. In
2006 Nicaragua formally entered into the Central America–Dominican
Republic Free Trade Agreement (CAFTA-DR) with the United States.
Services
Nicaragua’s service sector has grown considerably since the 1990s
and employs about one-half of the active labour force. Tourism has
become one of the country’s leading industries. Tourists are drawn to
the country’s Atlantic and Pacific beaches, as well as to its volcanoes,
lakes, and cultural life. Especially of note are the hundreds of islands
in Lake Nicaragua; the largest and most visited is Ometepe, which was
formed by two volcanoes. The second largest island, Zapatera, has many
archaeological sites and petroglyphs from pre-Columbian cultures. León,
one of Nicaragua’s oldest cities, retains its colonial architecture, and
nearby León Viejo, one of the oldest Spanish colonial settlements in the
Americas, was designated a UNESCO World Heritage site in 2000.
Labour and taxation
There are various active labour unions in Nicaragua, which have been
generally divided under Sandinista and anti-Sandinista umbrella groups.
The Nicaraguan Workers’ Central is an independent labour union.
Most Nicaraguan women work in the informal sector, which includes
domestic labour and subsistence farming. Women are the most affected by
and least protected from poverty. Many of them are the sole breadwinners
for their families and cannot provide adequate food or meet other
fundamental material needs. Indeed, at the beginning of the 21st
century, the gap between Nicaragua’s national minimum wage and the cost
of living increased, making life more difficult for families from
lower-income communities. Government income is largely generated through
both corporate and individual income taxes, a value-added tax (VAT), and
a capital gains tax.
Transportation and telecommunications
Most of the country’s transportation system is confined to the
western zone. There is a network of highways, parts of which are
impassable during the rainy season. The system includes the 255-mile
(410-km) Nicaraguan section of the Inter-American Highway, which runs
through the west from Honduras to Costa Rica. An important road runs
from the Inter-American Highway, 24 miles (39 km) from Managua eastward
to Port Esperanza at Rama. Another road connects Managua with Puerto
Cabezas on the Caribbean. In 1998 Hurricane Mitch destroyed large
portions of the country’s roads in the Pacific coastal area. While many
roads have been rebuilt through international support, subsequent
hurricanes have delayed complete reconstruction.
There are several hundred miles of railways. The main line runs from
Granada northwest to Corinto, on the Pacific Ocean. A branch line leads
north from León to the coffee area of Carazo.
The chief ocean port of Corinto, which handles most foreign trade,
and Puerto Sandino and San Juan del Sur serve the Pacific coastal area.
The Caribbean ports include Puerto Cabezas and Bluefields, the latter
connected to the river landing of Port Esperanza by regular small craft
service. The short rivers in the west are navigable for small craft. In
the east the Coco River is navigable in its lower course for
medium-sized vessels.
The main international airport, 7 miles (11 km) from Managua, has
service to North America and Latin America. Another large commercial
airport is at Puerto Cabezas. Other airports have scheduled domestic
flights. International air service is offered by TACA airlines and
several U.S. and other foreign airlines.
Nicaragua’s telecommunications sector is fully privatized. The number
of Internet users in the country is lower than that of most other
countries in Central America.
Government and society
Constitutional framework
From 1838, when Nicaragua seceded from the United Provinces of
Central America, to 1979, when the long dictatorial reign of the Somoza
family came to an end, Nicaragua had nine constitutions. The Somoza
regime was deposed in 1979 by a junta, led by the Sandinistas, which
abrogated the old constitution and suspended the presidency, Congress,
and the courts. An elected president and unicameral National Assembly
replaced the junta and its appointed council in 1985, and a new
constitution (the country’s 10th since 1838) was promulgated in 1987,
with reforms in 1995, 2000, and 2005. The president is elected by
popular vote for a five-year term; in 2009 the Nicaraguan Supreme Court
lifted a constitutional ban on consecutive reelection, allowing the
incumbent president to serve an additional term in office. Assembly
terms are five years and run concurrently with the presidential term.
Power is divided among four governmental branches: executive,
legislative, judicial, and electoral. The last mentioned is the Supreme
Electoral Council, which is responsible for organizing and holding
elections.
Local government
Nicaragua is divided into regiones (regions), which are subdivided
into departamentos (departments). Within the departments are municipios
(municipalities) of varying sizes. Citizens of the municipalities
directly elect a municipal council, which has basic governing authority
and also elects the mayor. The municipal councils are responsible for
urban development; land use; sanitation; construction and maintenance of
roads, parks, and other public spaces; and cultural institutions within
their own municipality. There are two autonomous indigenous regions on
the Caribbean coast—the North Atlantic Autonomous Region and the South
Atlantic Autonomous Region, whose respective capitals are Puerto Cabezas
(Bilwi) and Bluefields.
Justice
Nicaragua’s judicial system includes civilian and military courts.
The Supreme Court is the country’s highest court. Its justices, who are
elected to seven-year terms by the National Assembly, are responsible
for nominating judges to the lower courts. Nicaragua’s judicial system
has received international assistance through judicial reform projects,
but it continues to be plagued by inconsistent decisions, trial delays,
and politicization.
Political process
Nicaraguans aged 16 and older have universal suffrage. Nicaraguan
politics was historically dominated by a liberal and a conservative
party. Leading political parties include the Constitutionalist Liberal
Party (Partido Liberal Constitucionalista; PLC), the Conservative Party
of Nicaragua (Partido Conservador de Nicaragua; PCN), and the Sandinista
National Liberation Front (Frente Sandinista de Liberación Nacional;
FSLN). The FSLN was established in the early 1960s as a guerrilla group
dedicated to the overthrow of the Somoza family. They governed Nicaragua
from 1979 to 1990 and again starting in 2006 when Sandinista leader
Daniel Ortega won in the general elections of that year. Presidential
candidates must receive at least 40 percent of the vote or have 35
percent of the vote and be at least 5 percentage points ahead of the
closet contender to avoid a run-off election. Members of the National
Assembly are elected for five-year terms by a proportional
representation system and can be reelected. Two seats in the Assembly
are reserved, however—one for the immediate past president and one for
the runner-up in the immediate preceding presidential election.
Security
Nicaragua has a volunteer army, navy, and air force, in which
Nicaraguans can enlist as early as age 17. Nicaragua’s army historically
has been tied to political parties. During Sandinista rule the National
Guard, linked to the Somoza family, was replaced with the Sandinista
People’s Army, which had led the revolution. In 1995 an amendment to the
constitution helped stabilize and democratize the army, which was
renamed the Army of Nicaragua.
Health and welfare
After decades of neglect by the Somozas, social programs for the
poor became a central concern of the Sandinistas. Health measures were
taken that significantly reduced infant mortality and increased life
expectancies. Welfare and social security programs were expanded.
However, these programs suffered in the late 1980s from the impact of
war and a collapsing economy. After 1990 they continued to decline as
the conservative government implemented public-sector cutbacks. With
international aid, Nicaragua experienced improvements in health care
access, and child mortality rates declined in the early 21st century.
Education
One of the first acts by the Sandinistas following the revolution of
1979 was to declare a “year of literacy,” whereby the government sent
out cadres of former guerrilla fighters to teach reading to the largely
illiterate rural populace. This literacy crusade reduced adult
illiteracy from more than 50 percent to less than 15 percent. Standard
education at all levels was also greatly expanded. At the start of the
21st century, about four-fifths of the population was literate,
one-fifth of Nicaraguans had no formal schooling, and only a small
percentage of the population had a university degree. Nicaragua’s oldest
universities are the National Autonomous University (1812) and the
Central American University (1961). Several other universities were
founded in the 1980s and ’90s.
Cultural life
Cultural milieu
Nicaragua has rich cultural traditions that reflect long-standing
ethnic cleavages. The western part of the country is culturally similar
to other Spanish-speaking countries in Latin America. Its folk
traditions are expressed in beautiful arts and crafts (ceramics,
textiles, and wood and leather handicrafts), religious ceremonies, and
country music (corridos). The eastern part of Nicaragua has a more
Afro-Caribbean flavour, similar to other former British colonies in the
region.
Daily life and social customs
As is the case in much of Central America, Nicaraguan social life is
centred on family and fictional kinship. Most children are given
godparents, who help organize the child’s baptism and serve as mentors
throughout their childhood. Many social events are tied to the Roman
Catholic Church, and each Nicaraguan town or city holds an annual
celebration to honour its patron saint. The celebration of the
Immaculate Conception of the Virgin Mary (referred to locally as La
Purísima) is the country’s most important holiday, and the nine-day
festival includes the building of altars to be placed at the doorways of
private homes and the creation of floats to be paraded through town.
Another tradition in Nicaragua is the annual performance of El
Güegüense, a satirical drama that depicts resistance to colonial rule.
The spectacular is performed in January during the feast of San
Sebastián, patron saint of the city of Diriamba, and combines folk
music, dance, and theatre. El Güegüense, whose name derives from the
Nahuatl term güegüe (“old one”), was a powerful elder in pre-Columbian
Nicaragua who was compliant when in the presence of the colonists but
ridiculed them behind their backs. The drama was recognized by UNESCO as
a “Masterpiece of Oral and Intangible Heritage of Humanity” in 2005.
Nicaraguan cuisine is a mixture of indigenous and Creole traditions.
The country’s national dish is gallo pinto (fried rice mixed with black
beans and other spices). Corn (maize) is the staple of Nicaraguan
gastronomy and is used in many foods, such as nacatamal (cornmeal dough
stuffed with meat and cooked in plantain leaves), indio viejo (corn
tortilla with meat, onions, garlic, sweet pepper, and tomato and cooked
in orange juice and broth), and sopa de albóndiga (meatball soup). The
traditional drink known as chicha is made with corn, water, and sugar.
Appetizers called rosquillas are made with baked corn dough, cheese, and
butter. The Caribbean region has its own traditional dishes, such as
rondón (turtle meat, fish, or pork combined with various condiments). A
drink found only in this region of the country is gaubal (cooked green
banana, milk, coconut water, and sugar).
The arts
The drama and emotions of the insurrectionary and revolutionary
periods from the late 1970s through 1990 produced a flourishing of
artistic expression. Masterly work was exemplified in the paintings of
Alejandro Canales, Armando Morales, and Leoncio Sáenz and the theatre of
Alan Bolt.
Nicaraguan folk music is popular both locally and throughout Central
America and Mexico. Much of this music was made popular by
ethnomusicologist and composer Salvador Cardenal Argüello, who traveled
throughout the country in the 1930s. Many contemporary Nicaraguan folk
artists work from Cardenal’s songbook, remaking songs that were popular
in the first half of the 20th century. In the 1970s the “New Song
movement,” a form of traditional Latin American folk music mixed with
political and social commentary, was led by Nicaraguan brothers Luis
Enríque Mejía Godoy and Carlos Mejía Godoy, who continued to perform
into the 1990s, often with other artists, including Katia Cardenal and
guitarist Eduardo Araica. The English-speaking town of Bluefields, on
the Caribbean coast, has emerged as a centre of reggae music. Nicaraguan
palo de mayo (“maypole dance”) music is also popular in the region and
is easily recognized by its incessant rhythm. Inspired by the British,
the annual monthlong Maypole festival in Bluefields is an amalgam of
European and Afro-Caribbean traditions centred on a decorated maypole;
festivities include parades, costumes, music, and dancing.
Nicaragua prides itself on a long and distinguished literary
tradition, which until the late 20th century was familiar within the
country only to the educated elite. Among the country’s best-known
writers are Rubén Darío, known as the “prince of Spanish-American
poetry,” Ernesto Cardenal, who established a literary and visual arts
centre that has attracted international writers and artists, the
novelist Sergio Ramírez, the essayist Omar Cabezas, and the poet
Gioconda Belli.
Cultural institutions
The most notable of the country’s institutions are the National
Library and the National Museum (both in Managua) and the Rubén Darío
museum (in Ciudad Darío). The last is located in Darío’s childhood home,
which became a national historical site and museum in 1943. The Julio
Cortázar Museum of Contemporary Art in Managua opened in 1982. The
Tenderí Museum in Masaya displays archaeological artifacts from the
Chorotega people, as well as coins and medals from the Spanish colonial
era. The Sandinistas established the Museum of the Revolution and the
Museum of the Literacy Crusade in Managua, the Sandino Museum in
Niquinohomo, and others. These subsequently were abandoned or fell into
disarray after the change of government in 1990.
State-sponsored cultural production has declined sharply since the
1990s, and the country has relied on independent support of cultural
activities, which take place predominantly in the capital, Managua. The
Somoza regime valued elite (often imported) culture, while the
Sandinistas promoted what they termed “democratizing, national,
anti-imperialist” art forms, both professional and amateur. A Ministry
of Culture was established under Cardenal, and a Sandinista Association
of Cultural Workers was created and led by the poet Rosario Murillo,
wife of revolutionary and political leader Daniel Ortega. Both
organizations built museums, sponsored professional artists, and created
popular workshops.
Sports and recreation
The most popular sport in Nicaragua is baseball, and baseball
diamonds can be found throughout the country. Boxing has grown in
popularity, largely in response to the success of Nicaraguan fighter
Alexis Arguello. Other preferred sports include football (soccer),
weightlifting, and swimming. Chess is another popular pastime. During
the Sandinista regime the government made a particular effort to promote
sports among women. Nicaragua made its first Olympic appearance in 1968
at the Mexico City Games.
Media and publishing
Nicaragua boasts a thriving publishing industry. The country has
several daily newspapers, all of which have strong political
orientations. A bitter foe of both the Somoza and the Sandinista
governments, La Prensa (“The Press”) is staunchly conservative. El Nuevo
Diario (“The New Daily”) and Barricada (“Barricade”; once the official
FSLN organ) are pro-Sandinista. During the Somoza and Sandinista
periods, the two existing television stations were both
regime-controlled. Sandinista television attempted to diversify its
international programming (previously dominated by U.S. offerings) and
to increase domestically produced programs. After 1990, although many
new channels appeared, much of the air time was dominated once again by
U.S. programming. Throughout the second half of the 20th century and
into the 21st, there were a variety of radio stations, most of them
privately owned.
Rosendo Arguello
Bernard Nietschmann
Thomas W. Walker
Manuel S. Orozco
History
Early history
This discussion mainly focuses on the history of Nicaragua since
the arrival of Columbus in the late 15th century. For treatment of
earlier periods and of the country in its regional context, see Central
America.
Colonial period
The Spanish soldier Pedro Arias Dávila (known as Pedrarias) led
the first expedition to found permanent colonies in what is present-day
Nicaragua. In 1519, when Pedrarias became the governor of Panama, he
sent kinsman Gil González Dávila to explore northward toward Nicaragua.
González Dávila made the first attempt to conquer the region in 1522 but
was repulsed by Indians. Pedrarias then dispatched Francisco Hernández
de Córdoba, who founded the cities of Granada and León; by 1524 he had
established permanent colonization. Jealous of Hernández de Córdoba’s
success, Pedrarias had him killed and named himself governor of
Nicaragua in 1527. Pedrarias served as governor until his death in 1531.
Overall, the Spanish conquest was a disaster for the indigenous
population of Nicaragua’s Pacific region. Within three decades an
estimated Indian population of one million plummeted to a few tens of
thousands, as approximately half the indigenous people died of
contagious Old World diseases, and most of the rest were sold into
slavery in other New World Spanish colonies. Few were killed in outright
warfare.
After the initial depopulation, Nicaragua became a backwater of the
Spanish empire. In this setting, Granada and León emerged as competing
poles of power and prestige. The former derived its income from
agriculture and trade with Spain via the San Juan River; the latter came
to depend on commerce with the Spanish colonies of the Pacific coast.
Both tiny outposts were subjected to frequent pirate attacks. Late in
the 17th century, Great Britain formed an alliance with the Miskito
people of the Caribbean coastal region, where the community of
Bluefields had been established. The British settled on the Mosquito
Coast, and for a time (1740–86) the region was a British dependency.
Independence
In 1811, inspired by struggles in Mexico and El Salvador,
revolutionaries deposed the governing intendant of Nicaragua. León,
however, soon returned to the royalist cause, and Granada bore the brunt
of the punishment for disobedience. In 1821 León rejected and Granada
approved the Guatemalan declaration of independence from Spain. Both
accepted union with Mexico (1822–23), but they fought one another until
1826, when Nicaragua took up its role in the United Provinces of Central
America. After Nicaragua seceded from the federation in 1838, the
rivalry between León, which identified with the Liberal Party, and
Granada, the centre of the Conservative Party, continued.
Foreign intervention
After the withdrawal of Spain, relations between the “king” of
the Mosquito Coast and the British government strengthened until again
there were British officials in Bluefields. In 1848 they seized the
small Caribbean port of San Juan del Norte, renaming it Greytown. The
discovery of gold in California drew attention to the strategic position
of Nicaragua for interoceanic traffic, and Cornelius Vanderbilt’s
Accessory Transit Company began a steamship and carriage operation
between Greytown and the Pacific. In 1856 William Walker, an American
who had been invited to assist the Liberals in warfare (1855), made
himself president of the country, but he was routed a year later by the
efforts of the five Central American republics and the transit company.
Conservatives ruled from 1857 until 1893, bringing relative peace but
little democracy to Nicaragua. As a compromise between Granada and León,
Managua was made the capital in 1857. In 1860 a treaty with Great
Britain provided for the nominal reincorporation of the east coast with
the rest of the country, but as an autonomous reservation. Complete
jurisdiction over the Miskito people was not established until the
Liberal presidency (1893–1909) of José Santos Zelaya.
Zelaya, though a dictator, was a committed nationalist. He promoted
schemes for Central American reunification and refused to grant the
United States transisthmian canal-building rights on concessionary
terms, thus encouraging the United States to choose Panama for the
project. This, plus rumours that Zelaya planned to invite Japan to
construct a canal that would have competed with the U.S. waterway,
caused the United States to encourage Zelaya’s Conservative opposition
to stage a revolt. When two U.S. citizens who participated in the revolt
were executed, the United States landed marines in Bluefields and thus
blocked a Liberal victory. Although Zelaya resigned, the United States
refused to recognize his successor, José Madriz (1909–10). Further civil
war led to the presidency of a Conservative, Adolfo Díaz (1911–17), on
whose behalf the U.S. Marines intervened in 1912. A 100-man guard at the
U.S. embassy symbolized that country’s support also for Conservative
presidents Emiliano Chamorro Vargas (1917–21) and his uncle Diego Manuel
Chamorro (1921–23). The Bryan-Chamorro Treaty, signed in 1914 and
ratified in 1916, gave the United States exclusive canal privileges in
Nicaragua (to prevent a competing canal from being built) and the right
to establish naval bases.
The U.S. Marine guard’s withdrawal in 1925 led quickly to another
crisis, with Chamorro Vargas in rebellion against a new regime. Díaz
returned as a compromise president (1926–28), reinforced in 1927 by
2,000 U.S. Marines. Liberal leaders Juan Bautista Sacasa, José María
Moncada, and Augusto César Sandino rose in rebellion, but after six
months Sacasa and Moncada made peace, and subsequent elections under
U.S. auspices brought the presidency to both of them (Moncada, 1928–33,
and Sacasa, 1933–36). Sandino, however, fought on as long as the Marines
remained in the country.
The Somoza years
The Marines withdrew upon the inauguration of Sacasa, and Sandino
submitted to his government. A Nicaraguan National Guard, trained by the
U.S. Marines and commanded by Gen. Anastasio Somoza García, was now
responsible for maintaining order in the country. In 1934 high-ranking
officers led by Somoza met and agreed to the assassination of Sandino.
Somoza then deposed Sacasa with the support of factions of both Liberals
and Conservatives, and in a rigged election he became president on Jan.
1, 1937.
Somoza (known as Tacho) revised the constitution to facilitate the
consolidation of power into his own hands and ruled the country for the
next two decades, either as president or as the power behind puppet
presidents. Export activities grew from the 1930s onward. However, the
Somoza family and their associates, rather than the Nicaraguan people as
a whole, were the main beneficiaries of the country’s income.
On Sept. 21, 1956, a day after Somoza’s Nationalist Liberal Party of
Nicaragua (Partido Liberal Nacionalista de Nicaragua; PLN) had nominated
him for another term, a Liberal poet named Rigoberto López Pérez shot
the president, who died eight days later. Congress at once gave Luis
Somoza Debayle his father’s position, and in February 1957 he was
dubiously elected to his own term (1957–63). Somoza Debayle ruled more
gently than his father had. He accepted a settlement in favour of
Honduras of a long-standing border dispute between the two countries
(1960) and cooperated with the United States in the Bay of Pigs invasion
of Cuba (1961). In 1961 three Marxists, including Carlos Fonseca Amador,
founded the guerrilla Sandinista National Liberation Front (Frente
Sandinista de Liberación Nacional; FSLN) in opposition to the regime. It
was named for Augusto César Sandino, and its members are called
Sandinistas.
Following an essentially uncontested election in 1963, two puppet
presidents, René Schick Gutiérrez and, upon his death in 1966, Lorenzo
Guerrero Gutiérrez, held office with the support of the Somozas.
Although the economy grew, mass poverty remained unchanged. Luis Somoza
died early in 1967. Months later his brother Anastasio Somoza Debayle (“Tachito”)
won yet another rigged presidential election against a token opponent,
Fernando Agüero Rocha. In 1970 the Bryan-Chamorro Treaty was abrogated.
On May 1, 1972, constitutionally ineligible to succeed himself,
Somoza relinquished the presidency to a triumvirate (composed of Agüero
and two leaders of Somoza’s own party). On December 23 an earthquake in
the city of Managua left 6,000 persons dead and 300,000 homeless. Somoza
(commanding the National Guard) took charge as the head of a National
Emergency Committee. Agüero, who protested, found himself replaced
(March 1, 1973) on the triumvirate. The population suffered from the
destruction as Somoza and his friends profited privately from
international aid programs. In March 1974 a new constitution (the
country’s eighth since 1838) made it possible for Somoza to be reelected
president.
Before the end of the year, two genuine opposition groups attracted
wide attention—the Sandinistas and the organization founded by Pedro
Joaquín Chamorro, editor and publisher of La Prensa (“The Press”) of
Managua, called the Democratic Union of Liberation (Unión Democrática de
Liberación; UDEL). In December 1974 the Sandinistas staged a successful
kidnapping of Somoza elites, for which ransom and the release of
political prisoners were obtained. In response, the regime embarked on a
two-and-a-half-year counterinsurgency effort that, in addition to
leading to the death of Carlos Fonseca in 1976, took the lives of
thousands of peasant noncombatants. In 1977 a group called Los Doce (The
Twelve) sought an anti-Somoza alliance to include UDEL, the Sandinistas,
and other organizations. Assassins murdered Pedro Joaquín Chamorro on
Jan. 10, 1978, and a general strike and violence followed. On August 22
the Sandinistas occupied the national palace, holding more than 1,000
hostages for two days and winning most of their demands. Although the
National Guard regained partial control, the insurrection spread, with
another general strike and the Sandinistas seizing and holding several
major cities. The uprising was eventually quashed, at the cost of
several thousand lives. The following June the FSLN staged its final
offensive. City after city fell to the insurgents, backed by tens of
thousands of local civilian combatants. On July 17 Somoza resigned and
fled the country; two days later the Sandinistas entered Managua and
accepted the surrender of what was left of his army, ending the long
years of Somoza rule.
Franklin D. Parker
Thomas W. Walker
The Sandinista government
The new government inherited a devastated country. About 500,000
people were homeless, more than 30,000 had been killed, and the economy
was in ruins. In July 1979 the Sandinistas appointed a five-member
Government Junta of National Reconstruction. The following May it named
a 47-member Council of State, which was to act as an interim national
assembly. In 1981 the junta was reduced to three members and the council
increased to 51.
In 1979–80 the government expropriated the property held by Anastasio
Somoza Debayle, members of his government, and their supporters. Local
banks and insurance companies and mineral and forest resources were
nationalized, and the import and export of foodstuffs were placed under
government control. The Statutes on Rights and Guarantees, which acted
as the country’s new constitution, ensured basic individual rights and
freedoms. The government disclaimed any responsibility for the
assassination of Somoza on Sept. 17, 1980, in Asunción.
The Sandinista revolution represented a hopeful change toward
democratization. It attempted to redress the enormous inequality and
poverty in the country with a range of programs designed to improve the
lives of the poor. Democratization, however, was halted by two key
obstacles. First, shortly after taking power, the Sandinista leaders
began restricting certain freedoms and confiscating property. Second,
the United States interpreted the Sandinista revolution as a possible
shift toward communism and suspended economic aid to Nicaragua in the
early 1980s. Indeed, the Sandinista government established close
relations with Cuba and other Soviet-bloc countries. Throughout the
decade the FSLN and the state gradually merged into a single entity that
represented the interests of the National Directorate, the FSLN’s
leadership structure. All political opposition in the country was
weakened. Moreover, the Sandinistas created several organizations that
were responsible for indoctrinating Nicaraguans into the party’s belief
system regarding the revolution and for reporting critics of the
revolution as “counterrevolutionaries.” Typical of the government’s
political and ideological reach were Sandinista Defense Committees (Comités
de Defensa Sandinista; CDS), which served as the “eyes and ears of the
revolution.” In 1981 the administration also enacted the Agrarian Reform
Law, which formalized what could be done with Somoza’s property. This
included the offer of free land titles to peasants and supporters of the
state in exchange for government service or for establishing
agricultural cooperatives.
In response to the actions of the Sandinista government, in 1981 U.S.
Pres. Ronald Reagan authorized funds for the recruiting, training, and
arming of Nicaraguan counterrevolutionaries, who, like others already
organized by the Argentine army, would engage in irregular military
operations against the Sandinista regime. These insurgents, who came to
be called Contras, established bases in the border areas of Honduras and
Costa Rica. The Contra army grew to about 15,000 soldiers by the
mid-1980s. Eventually, the Nicaraguan government also expanded its
military forces, acquired crucial equipment such as assault helicopters,
and implemented counterinsurgency strategy and tactics, which enabled it
in the late 1980s to contain and demoralize the Contras but not defeat
them.
On Nov. 4, 1984, the FSLN and its presidential candidate, Daniel
Ortega Saavedra, won 63 percent of the vote in an election that
international observer teams deemed fair. Ortega was inaugurated in
January 1985, and two years later the new Constituent Assembly produced
a constitution that called for regularly held elections, the first for
national office to take place in 1990.
The Reagan administration denounced the 1984 election as a sham, and
a U.S. trade embargo on Nicaragua was declared in 1985. The embargo and
the damage and economic dislocation brought about by the civil war
combined with Sandinista economic errors to cause Nicaragua’s economy to
plummet from 1985 onward. An annual inflation rate of more than 30,000
percent in 1988 was followed by severe and unpopular austerity measures
in 1989. Government programs in health, education, housing, and
nutrition were drastically curtailed.
In 1987, after intense international efforts to end the civil war and
bring democracy to the country, a regional peace agreement was signed
between the Sandinista government and the Contras, who had stopped
receiving military aid from the United States. These events gradually
moved the focus of the Nicaraguan conflict from combat to politics.
The 1990 general elections were held under careful international
observation. Contra activity increased during the electoral period. On
Feb. 25, 1990, the U.S.-endorsed and U.S.-financed National Opposition
Union (Unión Nacional Opositor; UNO) coalition and its presidential
candidate, Violeta Barrios de Chamorro, the widow of the martyred
newspaper editor, won an upset victory, and a peaceful transfer of
administrations took place on April 25.
Nicaragua since 1990
The Chamorro government reversed many Sandinista policies and
overall sought national reconciliation, pacification, and reform of the
state. Chamorro negotiated the formal demobilization of the Contras in
June 1990 and cut the army from more than 80,000 soldiers to fewer than
15,000. In 1994 she was able to obtain the resignation of Gen. Humberto
Ortega, brother of Daniel Ortega and chief of the army during the
Sandinista regime. His departure not only signified greater civilian
control of the military but also increased its stability. In pursuit of
national reconciliation, Chamorro eventually found herself in a tacit
legislative coalition with the FSLN and a handful of UNO moderates. The
coalition, however, failed to achieve a real rapprochement; instead, the
ideological polarization that was inherited from the Somoza dictatorship
and the civil war continued between Sandinistas and their opponents. For
nearly four years the legislative body remained unstable because of
these tensions, which were further manifested in civil disobedience and
recurring waves of violence. Disgruntled former Contras (who became
known as Recontras) took up arms again, complaining of continued
violence by the Sandinista-dominated army and criticizing Chamorro’s
government for failing to deliver on its promise to redistribute land.
Armed civilian Sandinistas, who were known as Recompas, emerged to fight
the Recontras.
The Chamorro government managed to disarm most of these combatants by
1995. The conflicts between the Recompas and the Recontras gradually
receded, and several constitutional reforms were adopted that shifted
power from the president to the National Assembly, ended conscription,
guaranteed private property rights, and prevented close relatives of the
president from serving in the cabinet or succeeding the president.
Chamorro’s administration replaced Sandinista-era textbooks with new
ones paid for by the U.S. Agency for International Development. It also
reduced the public-sector budget and returned some expropriated property
to landowners whose land had been seized by the Sandinista government.
Most of the government’s promised land reform was not fulfilled,
however, because of ongoing conflict over land titles that had been
reallocated under the Sandinistas. In agriculture, emphasis was placed
on large-scale farming for export rather than on domestic subsistence.
Although politically Chamorro was successful, her government’s use of
austerity and structural-adjustment programs reduced or eliminated most
government welfare for Nicaragua’s impoverished citizens, which in turn
led to an increase in homelessness and crime. Chamorro’s administration
did, however, guarantee peaceful elections in 1996 and the transfer of
power from one civilian government to another.
Bringing these elections to fruition was a mammoth and tremendously
costly task for the Nicaraguan Supreme Electoral Council (CSE). The $50
million administrative bill was paid for largely by foreign donations.
Chamorro’s government had refused to allocate funds to run the election.
Mariano Fiallos, who had headed the CSE since the 1984 election,
resigned in early 1996, charging that his job was untenable, given the
CSE’s lack of funding and electoral law changes that encouraged partisan
influences.
The FSLN and the newly formed right-wing Liberal Alliance (Alianza
Liberal; AL), a coalition of three liberal parties, were the main
contenders in the 1996 national elections. Daniel Ortega was the FSLN’s
presidential candidate, and his party campaigned for expanded social
services and civil liberties, national unity, and, in contrast to its
historical stance, reconciliation with the United States. He lost to the
AL’s candidate, Arnoldo Alemán Lacayo, a former mayor of Managua and
allegedly a sympathizer of former dictator Anastasio Somoza Debayle.
During Alemán’s tenure (1997–2002) Nicaragua’s economy enjoyed a modest
recovery, fueled by foreign aid, debt forgiveness, and remittances from
abroad, but his administration was also beset by charges of corruption,
even in the allocation of aid following Hurricane Mitch (1998), which
killed several thousand Nicaraguans and left hundreds of thousands
homeless. Public confidence in Alemán was further eroded by a
legislative pact between the FSLN and Alemán’s Constitutionalist Liberal
Party (Partido Liberal Constitucionalista; PLC), which allowed the two
parties to secure powerful positions and to thwart competition from
other political parties in elections.
In 2001 Ortega lost a second time to PLC’s presidential candidate
Enrique Bolaños Geyer. Soon after Bolaños’s inauguration in January
2002, he called for a “New Era” and for Alemán to be stripped of his
immunity so that he could be prosecuted for allegedly having stolen some
$100 million. The National Assembly narrowly voted to revoke Alemán’s
immunity, and he was subsequently convicted and sentenced to 20 years in
prison. The penalty was later changed from prison time to house arrest.
President Bolaños left the PLC in 2003, and a three-sided political
struggle soon broke out between him, his former party, and the FSLN. In
2004 the two parties charged that Bolaños had committed electoral crimes
during his presidential campaign. In the same year, the National
Assembly (dominated by the PLC and the FSLN) passed reforms that further
limited the president’s powers. Bolaños vetoed the reforms in April
2005, but Nicaragua’s Supreme Court of Justice upheld them that August.
After intervention by the Organization of American States, the three
sides finally agreed that the reforms would not take effect until
Bolaños’s term ended in January 2007.
Ortega returned to power after defeating conservative candidate
Eduardo Montealegre in the 2006 presidential election. Seeming to have
traded the uncompromising Marxism of his past for more-pragmatic
politics, Ortega promised to uphold the free-market economic reforms of
his predecessors. For its part, the government focused on the difficult
task of stamping out official corruption and improving general economic
conditions, particularly for poorer Nicaraguans. Nicaragua’s formal
entrance into the Central America–Dominican Republic Free Trade
Agreement (CAFTA-DR) with the United States in 2006 helped Nicaragua to
attract investment, create jobs, and promote economic development. In
2007 the country’s $1 billion debt with the Inter-American Development
Bank was canceled. Nicaragua continued to push for regional stability
and peaceful relations with its neighbours. A long-standing maritime
dispute with Honduras was settled by the International Court of Justice
in 2007. In 2009 the same court settled a longtime conflict with Costa
Rica over the use of the San Juan River, which runs along the
Nicaragua–Costa Rica border.
In the early 21st century, Nicaragua still faced daunting economic
challenges. Large-scale commercial and slash-and-burn agriculture had
decimated Nicaragua’s forests and left the land vulnerable to landslides
and droughts. Unemployment and underemployment remained stubbornly high;
the disparity between rich and poor was wide; and per capita income was
among the lowest in Latin America. Many Nicaraguans have migrated to
Costa Rica, El Salvador, and the United States, and their remittances
have been a significant source of income.
Manuel S. Orozco