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Republic of Nicaragua República de Nicaragua
Flag Coat of arms
Motto: En Dios Confiamos   (Spanish) "In God We Trust" [1]
Anthem: Salve a ti, Nicaragua  (Spanish) Hail to thee, Nicaragua
Capital (and largest city)		Managua 12°9′N 86°16′W / 12.15, -86.267
Official languages		Spanish1
Demonym		Nicaraguan
Government		Presidential republic
-	President	Daniel Ortega (FSLN)
-	Vice President	Jaime Morales Carazo
Independence		from Spain
-	Declared	15 September 1821
-	Recognized	25 July 1850
-	Revolution	19 July 1979
Area
-	Total	129,494 km² (97th) 50,193 sq mi
-	Water (%)	7.14
Population
-	July 2006 estimate	5,603,000 (107th)
-	2005 census	5,142,098
-	Density	42/km² (132nd) 109/sq mi
GDP (PPP)		2007 estimate
-	Total	$15.912 billion[2]
-	Per capita	$2,628[2]
GDP (nominal)		2007 estimate
-	Total	$5.724 billion[2]
-	Per capita	$945[2]
Gini (2001)		43.1 (medium)
HDI (2007)		▲ 0.710 (medium) (110th)
Currency		Córdoba (NIO)
Time zone		(UTC-6)
Internet TLD		.ni
Calling code		+505
1	English and indigenous languages on Caribbean coast are also spoken.

Nicaragua (IPA: /ˌnɪkəˈrɑgwə/) officially the Republic of Nicaragua (Spanish: República de Nicaragua^?·i, Spanish pronunciation: [re̞ˈpuβ̞lika ð̞e̞ nikaˈɾaɣ̞wa]), is a representative democratic republic and the largest nation in Central America. The name 'Nicaragua' seems to have meant 'surrounded by water' in an older, indigenous language that mixed with Spanish. This could be either because of the two large freshwater lakes, Nicaragua and Managua, or because the nation is bounded on the east and the west by oceans. Nicaragua is also the least densely populated with a demographic similar in size to its smaller neighbours. The country is bordered by Honduras to the north and by Costa Rica to the south. The Pacific Ocean lies to the west of the country, while the Caribbean Sea lies to the east. Falling within the tropics, Nicaragua sits 11 degrees north of the Equator, in the Northern Hemisphere.

[edit] History

Main articles: History of Nicaragua, German colonization of the Americas, and Political history of Nicaragua

[edit] Pre-Columbian history

6000 year old human footprints preserved in volcanic mud near the lake in Managua, Nicaragua.

In Pre-Columbian times the Indigenous people, in what is now known as Nicaragua, were part of the Intermediate Area located between the Mesoamerican and Andean cultural regions. This has recently been updated to include the influence of the Isthmo-Colombian area. It was the point where the Mesoamerican and South American native cultures met.

This is confirmed by the ancient footprints of Acahualinca, along with other archaeological evidence, mainly in the form of ceramics and statues made of volcanic stone like the ones found on the island of Zapatera and petroglyphs found in Ometepe island. At the end of the 15th century, western Nicaragua was inhabited by several indigenous peoples related by culture and language to the Mayans.^[3] They were primarily farmers who lived in towns, organized into small kingdoms. Meanwhile, the Caribbean coast of Nicaragua was inhabited by indigenous peoples, mostly chibcha related groups, that had migrated from what is now Colombia. They lived a less sedentary life based on hunting and gathering.^[4]

The people of eastern Nicaragua appear to have traded with and been influenced by the native peoples of the Caribbean, as round thatched huts and canoes, both typical of the Caribbean, were common in eastern Nicaragua. In the west and highland areas, occupying the territory between Lake Nicaragua and the Pacific Coast, the Niquirano were governed by chief Nicarao, or Nicaragua, a rich ruler who lived in Nicaraocali, now the city of Rivas. The Chorotega lived in the central region of Nicaragua. These two groups had intimate contact with the Spanish conquerors, paving the way for the racial mix of native and European stock now known as mestizos.^[3] However, within three decades an estimated Indian population of one million plummeted to a few tens of thousands, as approximately half of the indigenous people in western Nicaragua died from the rapid spread of new diseases brought by the Spaniards, something the indigenous people of the Caribbean coast managed to escape due to the remoteness of the area.^[3]

[edit] The Spanish conquest

Colonial architecture of the city of Granada, Nicaragua

In 1502, Christopher Columbus was the first European known to have reached what is now Nicaragua as he sailed south along the Central America isthmus. On his fourth voyage Columbus sailed alongside and explored the Mosquito Coast on the east of Nicaragua.^[5] The first attempt to conquer what is now known as Nicaragua was by Gil González Dávila,^[6] whose Central American exploits began with his arrival in Panama in January 1520. González claimed to have converted some 30,000 indigenous peoples and discovered a possible transisthmian water link. After exploring and gathering gold in the fertile western valleys González was attacked by the indigenous people, some of whom were commanded by Nicarao and an estimated 3,000 led by chief Diriangén.^[7] González later returned to Panama where governor Pedrarias Dávila attempted to arrest him and confiscate his treasure, some 90,000 pesos of gold. This resulted in González fleeing to Santo Domingo.

It was not until 1524 that the first Spanish permanent settlements were founded.^[6] Conquistador Francisco Hernández de Córdoba founded two of Nicaragua's principal towns in 1524: Granada on Lake Nicaragua was the first settlement and León east of Lake Managua came after. Córdoba soon found it necessary to prepare defenses for the cities and go on the offensive against incursions by the other conquistadores. Córdoba was later publicly beheaded following a power struggle with Pedrarias Dávila, his tomb and remains were discovered some 500 years later in the Ruins of León Viejo.^[8]

The inevitable clash between the Spanish forces did not impede their devastation of the indigenous population. The Indian civilization was destroyed. The series of battles came to be known as The War of the Captains.^[9] By 1529, the conquest of Nicaragua was complete. Several conquistadores came out winners, and some were executed or murdered. Pedrarias Dávila was a winner; although he had lost control of Panama, he had moved to Nicaragua and established his base in León. Through adroit diplomatic machinations, he became the first governor of the colony.^[8] The land was parceled out to the conquistadores. The area of most interest was the western portion. Many indigenous people were soon enslaved to develop and maintain "estates" there. Others were put to work in mines in northern Nicaragua, few were killed in warfare, and the great majority were sent as slaves to other New World Spanish colonies, for significant profit to the new landed aristocracy. Many of the indigenous people died as a result of disease and neglect by the Spaniards who controlled everything necessary for their subsistence.^[6]

[edit] From colony to nation

Corn Island off the Atlantic Coast was originally a British protectorate until it was ceded along with the rest of the Mosquito Coast to Nicaragua

In 1538, the Viceroyalty of New Spain was established. By 1570, the southern part of New Spain was designated the Captaincy General of Guatemala. The area of Nicaragua was divided into administrative "parties" with León as the capital. In 1610, the Momotombo erupted, destroying the capital. It was rebuilt northwest of what is now known as the Ruins of Old León. Nicaragua became a part of the Mexican Empire and then gained its independence as a part of the United Provinces of Central America in 1821 and as an independent republic in its own right in 1838. The Mosquito Coast based on the Caribbean coast was claimed by the United Kingdom and its predecessors as a protectorate from 1655 to 1850; this was delegated to Honduras in 1859 and transferred to Nicaragua in 1860, though it remained autonomous until 1894. Jose Santos Zelaya, president of Nicaragua from 1893-1909, managed to negotiate for the annexation of this region to the rest of Nicaragua. In his honour the entire region was named Zelaya.

Founding members of the Deutsche Club in Nicaragua

Much of Nicaragua's politics since independence has been characterized by the rivalry between the liberal elite of León and the conservative elite of Granada. The rivalry often degenerated into civil war, particularly during the 1840s and 1850s. Initially invited by the Liberals in 1855 to join their struggle against the Conservatives, a United States adventurer named William Walker (later executed in Honduras) set himself up as president of Nicaragua, after conducting a farcical election in 1856. Honduras and other Central American countries united to drive him out of Nicaragua in 1857, after which a period of three decades of Conservative rule ensued.^[10]

In the 1800s Nicaragua experienced a wave of immigration, primarily from Europe. In particular, families from Germany, Italy, Spain, France and Belgium generally moved to Nicaragua to set up businesses with money they brought from Europe. They established many agricultural businesses such as coffee and sugar cane plantations, and also newspapers, hotels and banks.

[edit] United States involvement (1909 - 1933)

See also: Occupation of Nicaragua and Nicaragua Canal

Augusto C. Sandino

In 1909, the United States provided political support to conservative-led forces rebelling against President Zelaya. U.S. motives included differences over the proposed Nicaragua Canal, Nicaragua's potential as a destabilizing influence in the region, and Zelaya's attempts to regulate foreign access to Nicaraguan natural resources. On November 18, 1909, U.S. warships were sent to the area after 500 revolutionaries (including two Americans) were executed by order of Zelaya. The U.S. justified the intervention by claiming to protect U.S. lives and property. Zelaya resigned later that year.

In August 1912 the President of Nicaragua, Adolfo Díaz, requested that the Secretary of War, General Luis Mena, resign for fear that he was leading an insurrection. Mena fled Managua with his brother, the Chief of Police of Managua, to start an insurrection. When the U.S. Legation asked President Díaz to ensure the safety of American citizens and property during the insurrection he replied that he could not and that...

U.S. Marines occupied Nicaragua from 1912 to 1933,^[12] except for a nine month period beginning in 1925. From 1910 to 1926, the conservative party ruled Nicaragua. The Chamorro family, which had long dominated the party, effectively controlled the government during that period. In 1914, the Bryan-Chamorro Treaty was signed, giving the U.S. control over the proposed canal, as well as leases for potential canal defenses.^[13] Following the evacuation of U.S. marines, another violent conflict between liberals and conservatives took place in 1926, known as the Constitutionalist War, which resulted in a coalition government and the return of U.S. Marines.^[14]

From 1927 until 1933, Gen. Augusto C. Sandino led a sustained guerrilla war first against the Conservative regime and subsequently against the U.S. Marines, who withdrew upon the establishment of a new Liberal government. Sandino was the only Nicaraguan general to refuse to sign the el tratado del Espino Negro agreement and then headed up to the northern mountains of Las Segovias, where he fought the US Marines for over five years.^[15] The revolt finally forced the United States to compromise and leave the country. When the Americans left in 1933, they set up the Guardia Nacional (National Guard),^[16] a combined military and police force trained and equipped by the Americans and designed to be loyal to U.S. interests. Anastasio Somoza García, a close friend of the American government, was put in charge. He was one of the three rulers of the country, the others being Sandino and the President Juan Bautista Sacasa.

After the US Marines withdrew from Nicaragua in January 1933, Sandino and the newly-elected Sacasa government reached an agreement by which he would cease his guerrilla activities in return for amnesty, a grant of land for an agricultural colony, and retention of an armed band of 100 men for a year.^[17] But a growing hostility between Sandino and Somoza led Somoza to order the assassination of Sandino.^[18][19][16] Fearing future armed opposition from Sandino, Somoza invited him to a meeting in Managua, where Sandino was assassinated on February 21 of 1934 by the National Guard. Hundreds of men, women, and children were executed later.^[20]

[edit] The Somoza Dynasty (1936 - 1979)

Anastasio Somoza García and his sons Anastasio Somoza Debayle and Luis Somoza Debayle

Nicaragua has experienced several military dictatorships, the longest one being the rule of the Somoza family for much of the 20th century. The Somoza family came to power as part of a US-engineered pact in 1927 that stipulated the formation of the National Guard to replace the small individual armies that had long reigned in the country.^[21] Somoza deposed Sacasa and became president on Jan. 1, 1937 in a rigged election.^[16]

Nicaragua was the first country to ratify the UN Charter,^[22] and declared war on Germany during World War II. No troops were sent to the war but Somoza did seize the occasion to confiscate attractive properties held by German-Nicaraguans, the best-known of which was the Montelimar estate which today operates as a privately-owned luxury resort and casino.^[23]

Street scene of Managua city centre prior to the 1972 earthquake

Somoza used the National Guard to force Sacasa to resign, and took control of the country in 1937, destroying any potential armed resistance.^[24] Somoza was in turn assassinated by Rigoberto López Pérez, a liberal Nicaraguan poet, in 1956. After his father's death, Luis Somoza Debayle, the eldest son of the late dictator, was appointed President by the congress and officially took charge of the country.^[16] He is remembered by some for being moderate, but was in power only for a few years and then died of a heart attack. Then came president Rene Schick whom most Nicaraguans viewed "as nothing more than a puppet of the Somozas".^[25] Somoza's brother, Anastasio Somoza Debayle, who succeeded his father in charge of the National Guard, controlled the country, and officially took the presidency after Schick.

Nicaragua experienced economic growth during the 1960s and 1970s largely as a result of industrialization,^[26] and became one of Central America's most developed nations despite its political instability. Due to its stable and high growth economy, foreign investments grew, primarily from U.S. companies such as Citigroup, Sears, Westinghouse and Coca Cola. However, the capital city of Managua suffered a major earthquake in 1972 which destroyed nearly 90% of the city creating major losses.^[27] Some Nicaraguan historians see the 1972 earthquake that devastated Managua as the final 'nail in the coffin' for Somoza. The mishandling of relief money also prompted Pittsburgh Pirates star Roberto Clemente to personally fly to Managua on 31 December 1972, but he died enroute in an airplane accident.^[28] Even the economic elite were reluctant to support Somoza, as he had acquired monopolies in industries that were key to rebuilding the nation,^[29] and did not allow the elite to share the profits that would result. In 1973 (the year of reconstruction) many new buildings were built, but the level of corruption in the government prevented further growth, and the ever increasing tensions and anti-government uprisings slowed growth in the last two years of the Somoza dynasty.

[edit] Nicaraguan Revolution

Main article: FSLN

Cuban President of The Council of State Fidel Castro in Nicaragua, with former and current President Daniel Ortega (1980)

In 1961, a young student, Carlos Fonseca, turned back to the historical figure of Sandino, and along with 2 others founded the Sandinista National Liberation Front (FSLN).^[16] The FSLN was a tiny party throughout most of the 1960s, but Somoza's utter hatred of it and his heavy-handed treatment of anyone he suspected to be a Sandinista sympathizer gave many ordinary Nicaraguans the idea that the Sandinistas were much stronger.

After the 1972 earthquake and Somoza's brazen corruption, mishandling of relief, and refusal to rebuild Managua, the ranks of the Sandinistas were flooded with young disaffected Nicaraguans who no longer had anything to lose.^[30] These economic problems propelled the Sandinistas in their struggle against Somoza by leading many middle- and upper-class Nicaraguans to see the Sandinistas as the only hope for removing the brutal Somoza regime. On January 10, 1978, Pedro Joaquin Chamorro, the editor of the national newspaper La Prensa and ardent opponent of Somoza, was assassinated.^[31] This is believed to have led to the extreme general disappointment with Somoza. The planners and perpetrators of the murder were at the highest echelons of the Somoza regime and included the dictator's son, “El Chiguin”, the President of Housing, Cornelio Hueck, the Attorney General, and Pedro Ramos, a close Cuban ally who commercialized blood plasma.^[31]

The Sandinistas, supported by much of the populace, elements of the Catholic Church, and regional and international governments, took power in July 1979. Somoza fled the country and eventually ended up in Paraguay, where he was assassinated in September 1980, allegedly by members of the Argentinian Revolutionary Workers Party.^[32] The Sandinistas inherited a country in ruins with a debt of U.S.$1.6 billion dollars, an estimated 50,000 war dead, 600,000 homeless, and a devastated economic infrastructure.^[33] To begin the task of establishing a new government, they created a Council (or junta) of National Reconstruction, made up of five members – Sandinista militants Daniel Ortega and Moises Hassan, novelist Sergio Ramírez Mercado (a member of Los Doce "the Twelve"), businessman Alfonso Robelo Callejas, and Violeta Barrios de Chamorro (the widow of Pedro Joaquín Chamorro). The preponderance of power, however, remained with the Sandinistas and their mass organizations, including the Sandinista Workers' Federation (Central Sandinista de Trabajadores), the Luisa Amanda Espinoza Nicaraguan Women's Association (Asociación de Mujeres Nicaragüenses Luisa Amanda Espinoza), and the National Union of Farmers and Ranchers (Unión Nacional de Agricultores y Ganaderos).

On the Atlantic Coast a small uprising also occured in support of the Sandinistas. This event is often overlooked in histories about the Sandinista revolution. A group of Creoles led by a native of Bluefields, Dexter Hooker (aka Commander Abel) raided a Somoza-owned business to gain access to food, guns and money before heading off to join Sandinista fighters who had liberated the city of Rama. The 'Black Sandinistas' returned to Bluefields on the 19 July 1979 and took the city without a fight. However, the Black Sandinistas were challenged by a group of mestizo (white, Spanish-speaking) Sandinista fighters. The ensuing standoff between the two groups, with the Black Sandinistas occupying the National Guard barracks (the cuartel) and the mestizo group occupying the Town Hall (Palacio) gave the revolution on the Atlantic Coast a racial dimension which was absent from other parts of the country. The Black Sandinistas were assisted in their power struggle with the Palacio group by the arrival of the Simon Bolivar International Brigade from Costa Rica. One of the brigade's members, an African-Costa Rican called Marvin Wright (aka Kalalu) became known for the rousing speeches he would make, which included elements of black power ideology in his attempts to unite all the black militias that had formed in Bluefields. The introduction of a racial element into the revolution was not welcomed by the Sandinista National Directorate which expelled Kalalu and the rest of the brigade from Nicaragua and sent them to Panama.^[34]

[edit] Sandinistas and the Contras

Main articles: FSLN, Contras, Iran-Contra scandal, and Nicaragua v. United States

Upon assuming office in 1981, U.S. President Ronald Reagan condemned the FSLN for joining with Cuba in supporting Marxist revolutionary movements in other Latin American countries such as El Salvador. His administration authorized the CIA to begin financing, arming and training rebels, some of whom were the remnants of Somoza's National Guard, as anti-Sandinista guerrillas that were branded "counter-revolutionary" by leftists (contrarrevolucionarios in Spanish).^[35] This was shortened to Contras, a label the anti-Communist forces chose to embrace. Eden Pastora and many of the indigenous guerrilla forces, who were not associated with the "Somozistas," also resisted the Sandinistas. The Contras operated out of camps in the neighboring countries of Honduras to the north and Costa Rica to the south.^[35] As was typical in guerrilla warfare, they were engaged in a campaign of economic sabotage in an attempt to combat the Sandinista government and disrupted shipping by planting underwater mines in Nicaragua's Corinto harbour,^[36] an action condemned by the World Court as illegal.^[37][38] The U.S. also sought to place economic pressure on the Sandinistas, and the Reagan administration imposed a full trade embargo.^[39]

U.S. support for this Nicaraguan insurgency continued in spite of the fact that impartial observers from international groupings such as the European Economic Community, religious groups sent to monitor the election, and observers from democratic nations such as Canada and the Republic of Ireland concluded that the Nicaraguan general elections of 1984 were completely free and fair. The Reagan administration disputed these results however, despite the fact that the government of the United States never had any observers in Nicaragua at the time.^[40][41]

After the U.S. Congress prohibited federal funding of the Contras in 1983, the Reagan administration continued to back the Contras by covertly selling arms to Iran and channeling the proceeds to the Contras (the Iran-Contra Affair).^[42] When this scheme was revealed, Reagan admitted that he knew about the Iranian "arms for hostages" dealings but professed ignorance about the proceeds funding the Contras; for this, National Security Council aide Lt. Col. Oliver North took much of the blame. Senator John Kerry's 1988 U.S. Senate Committee on Foreign Relations report on Contra-drug links concluded that "senior U.S. policy makers were not immune to the idea that drug money was a perfect solution to the Contras' funding problems."^[43] According to the National Security Archive, Oliver North had been in contact with Manuel Noriega, a Panamanian general and the de facto military dictator of Panama from 1983 to 1989 when he was overthrown and captured by a U.S. invading force.^[44] He was taken to the United States, tried for drug trafficking, and imprisoned in 1992.^[45]

In August 1996, San Jose Mercury News reporter Gary Webb published a series titled Dark Alliance, linking the origins of crack cocaine in California to the Contras.^[46] Freedom of Information Act inquiries by the National Security Archive and other investigators unearthed a number of documents showing that White House officials, including Oliver North, knew about and supported using money raised via drug trafficking to fund the Contras. Sen. John Kerry's report in 1988 led to the same conclusions; however, major media outlets, the Justice Department, and Reagan denied the allegations.^[47]

The International Court of Justice, in regard to the case of Nicaragua v. United States of America in 1984, found; "the United States of America was under an obligation to make reparation to the Republic of Nicaragua for all injury caused to Nicaragua by certain breaches of obligations under customary international law and treaty-law committed by the United States of America"^[48]. But was rejected citing the 'Connally Amendment', which excludes from the International court of Justice's jurisdiction "disputes with regard to matters that are essentially within the jurisdiction of the United States of America, determined by the United States of America"^[49]

[edit] 1990s and the post-Sandinista era

Multi-party democratic elections were held in 1990, which saw the defeat of the Sandinistas by a coalition of anti-Sandinista (from the left and right of the political spectrum) parties led by Violeta Chamorro, the widow of Pedro Joaquín Chamorro. The defeat shocked the Sandinistas as numerous pre-election polls had indicated a sure Sandinista victory and their pre-election rallies had attracted crowds of several hundred thousand people.^[50] The unexpected result was subject to a great deal of analysis and comment, and was attributed by commentators such as Noam Chomsky and S. Brian Willson to the U.S./Contra threats to continue the war if the Sandinistas retained power, the general war-weariness of the Nicaraguan population, and the abysmal Nicaraguan economic situation.

Violeta Barrios de Chamorro in 1990 became the first female president democratically elected in the Americas.

On the other hand, P. J. O'Rourke wrote in "Return of the Death of Communism", "the unfair advantages of using state resources for party ends, about how Sandinista control of the transit system prevented UNO supporters from attending rallies, how Sandinista domination of the army forced soldiers to vote for Ortega and how Sandinista bureaucracy kept $3.3 million of U.S. campaign aid from getting to UNO while Daniel Ortega spent millions donated by overseas people and millions and millions more from the Nicaraguan treasury . . ."^[51]

Exit polls of Nicaraguans reported Chamorro's victory over Ortega was achieved with only 55%.^[52] Violeta Chamorro was the first woman to be popularly elected as President of a Latin American nation and first woman president of Nicaragua. Exit polling convinced Daniel Ortega that the election results were legitimate, and were instrumental in his decision to accept the vote of the people and step down rather than void the election. Nonetheless Ortega vowed that he would govern "desde abajo" (from below),^[53] in other words due to his widespread control of institutions and Sandinista individuals in all government agencies, he would still be able to maintain control and govern even without being president.

Chamorro received an economy entirely in ruins. The per capita income of Nicaragua had been reduced by over 80% during the 1980s, and a huge government debt which ascended to US$12 billion primarily due to financial and social costs of the Contra war with the Sandinista-led government.^[54] Much to the surprise of the U.S. and the contra forces, Chamorro did not dismantle the Sandinista People's Army, though the name was changed to the Nicaraguan Army. Chamorro's main contribution to Nicaragua was the disarmament of groups in the northern and central areas of the country. This provided stability that the country had lacked for over ten years.

In subsequent elections in 1996 Daniel Ortega and the Sandinistas of the FSLN were again defeated, this time by Arnoldo Alemán of the Constitutional Liberal Party (PLC).

In the 2001 elections the PLC again defeated the FSLN, with Enrique Bolaños winning the Presidency. However, President Bolaños subsequently charged and brought forward allegations of money laundering, theft and corruption against former President Alemán. The ex-president was sentenced to 20 years in prison for embezzlement, money laundering, and corruption.^[55] The Liberal members who were loyal to Alemán and also members of congress reacted angrily, and along with Sandinista parliament members stripped the presidential powers of President Bolaños and his ministers, calling for his resignation and threatening impeachment.

The Sandinistas alleged that their support for Bolaños was lost when U.S. Secretary of State Colin Powell told Bolaños to keep his distance from the FSLN.^[56] This "slow motion coup" was averted partially due to pressure from the Central American presidents who would fail to recognize any movement that removed Bolaños; the U.S., the OAS, and the European Union also opposed the "slow motion coup".^[57] The proposed constitutional changes that were going to be introduced in 2005 against the Bolaños administration were delayed until January 2007 after the entrance of the new government. Though one day before they were to be enforced, the National Assembly postponed their enforcement until January 2008.

Before the general elections on 5 November 2006, the National Assembly passed a bill further restricting abortion in Nicaragua 52-0 (9 abstaining, 29 absent). President Enrique Bolaños supported this measure, and signed the bill into law on 17 November 2006,^[58] as a result Nicaragua is one of three countries in the world where abortion is illegal with no exceptions, along with El Salvador and Chile.

Legislative and presidential elections took place on November 5, 2006. Daniel Ortega returned to the presidency with 37.99% of the vote. This percentage was enough to win the presidency outright, due to a change in electoral law which lowered the percentage requiring a runoff election from 45% to 35% (with a 5% margin of victory).^[59]

[edit] Politics

Main article: Politics of Nicaragua

Politics of Nicaragua takes place in a framework of a presidential representative democratic republic, whereby the President of Nicaragua is both head of state and head of government, and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the National Assembly. The Judiciary is independent of the executive and the legislature.

[edit] Departments and municipalities

Main articles: Departments of Nicaragua and Municipalities of Nicaragua

Departments of Nicaragua

Nicaragua is a unitary republic. For administrative purposes it is divided into 15 departments (departamentos) and two self-governing regions (autonomous communities) based on the Spanish model. The departments are then subdivided into 153 municipios (municipalities). The two autonomous regions are [[Región Autónoma del Atlán ón Autónoma del Atlántico Sur]], often referred to as RAAN and RAAS, respectively. Until they were granted autonomy in 1985 they formed the single department of Zelaya.^[60]

[edit] Geography

Main article: Geography of Nicaragua

See also: Volcanoes of Nicaragua and Wildlife of Nicaragua

Nicaragua occupies a landmass of 129,494 km² - roughly the size of Greece or the state of New York and 1.5 times larger than Portugal. Close to 20% of the country's territory is designated as protected areas such as national parks, nature reserves and biological reserves. The country is bordered by Costa Rica on the south and Honduras on the north, with the Caribbean Sea to the east and the Pacific Ocean to the west.

Nicaragua has three distinct geographical regions: the Pacific Lowlands, the North-Central Mountains or highlands and the Atlantic Lowlands.

[edit] Pacific lowlands

Turtles are common in many beaches of Nicaragua when on a yearly basis they collectively arrive at the same time on the same beach to lay their eggs. They are protected by the Nicaraguan government in National Parks

Located in the west of the country, these lowlands consist of a broad, hot, fertile plain. Punctuating this plain are several large volcanoes of the Marrabios mountain range, including Mombacho just outside Granada, and Momotombo near León. The lowland area runs from the Gulf of Fonseca to Nicaragua's Pacific border with Costa Rica south of Lake Nicaragua. Lake Nicaragua is the largest freshwater lake in Central America (20th largest in the world),^[61] and is home to the world's only freshwater sharks (Nicaraguan shark).^[62] The Pacific lowlands region is the most populous, with over half of the nation's population. The capital city of Managua is the most populous and it is the only city with over 1.5 million inhabitants.

Nicaragua is known as the land of lakes and volcanoes, pictured is Concepción volcano located in Maderas.

In addition to its beach and resort communities, the Pacific Lowlands is also the repository for much of Nicaragua's Spanish colonial heritage. Cities such as Granada and León abound in colonial architecture and artifacts. Granada, founded in 1524, is the oldest colonial city in the Americas.^[63]

[edit] Central highlands

Guardabarranco (Turquoise-browed Motmot): the national bird.

This is an upland region away from the Pacific coast, with a cooler climate than the Pacific Lowlands. About a quarter of the country's agriculture takes place in this region, with coffee grown on the higher slopes. Oaks, pines, moss, ferns and orchids are abundant in the cloud forests of the region.

Bird life in the forests of the central region includes Resplendent Quetzal, goldfinches, hummingbirds, jays and toucanets.

Toucan is a common bird in Nicaragua´s Rainforests

[edit] Atlantic lowlands

This large rainforest region, with several large rivers running through it, is very sparsely populated. The Rio Coco is the largest river in Central America, it forms the border with Honduras. The Caribbean coastline is much more sinuous than its generally straight Pacific counterpart. Lagoons and deltas make it very irregular.

Nicaragua's Bosawas Biosphere Reserve is located in the Atlantic lowlands, it protects 1.8 million acres (7,300 km²) of Mosquitia forest - almost seven percent of the country's area - making it the largest rainforest north of the Amazon in Brazil.^[64]

Nicaragua's tropical east coast is very different from the rest of the country. The climate is predominantly tropical, with high temperature and high humidity. Around the area's principal city of Bluefields, English is widely spoken along with the official Spanish and the population more closely resembles that found in many typical Caribbean ports than the rest of Nicaragua.

A great variety of birds can be observed including eagles, turkeys, toucans, parakeets and macaws. Animal life in the area includes different species of monkeys, ant-eaters, white-tailed deer and tapirs.

[edit] Wildlife and Biodiversity

Rainforest in Nicaragua cover more than 2,000,000 ha, particullary on the Atlantic lowlands. Nicaragua's Bosawas Biosphere Reserve (in the north) it's the second large rainforest in the Americas, after the Amazon. Indio Maiz Biological Reserve (in the south) protects 2,500km² of the Atlantic Rainforest.

These two areas are very rich in biodiversity. There are 5 species of cats, including jaguar and cougar; 3 species of primates, spider monkey, howler monkey and capuchin monkey; 1 species of tapir, called Danto for the Nicaraguans; 3 species of anteaters and many more.

[edit] Economy

Main article: Economy of Nicaragua

Nicaragua's economy ranks as 61st freest economy, although it is 1.7% lower than in 2006, it ranks 14 (out of 29) in the Americas. Nicaragua's economy is 62.7% free with high levels of fiscal, government, labor, investment, financial, and trade freedom.^[65] Nicaragua is primarily an agricultural country, but light industry (maquila), tourism, banking, mining, fisheries, and general commerce are expanding. Nicaragua's agrarian economy has historically been based on the export of cash crops such as bananas, coffee, sugar, beef and tobacco. At present agriculture constitutes 60% of its total exports which annually yield approximately US $300 million.^[66] In addition, Nicaragua's Flor de Caña rum is renowned as among the best in Latin America, and its tobacco and beef are also well regarded. Nicaragua also depends heavily on remittances from Nicaraguans living abroad, which totaled $655.5 million in 2006. During the war between the Contras and the Sandinistas in the 1980s, much of the country's infrastructure was damaged or destroyed.^[67] Inflation averaged 30% throughout the 1980s. After the United States imposed a trade embargo in 1985, which lasted 5 years, Nicaragua's inflation rate rose dramatically. The 1985 annual rate of 220% tripled the following year and skyrocketed to more than 13,000% in 1988, the highest rate for any country in the Western Hemisphere in that year. Since the end of the war almost two decades ago, more than 350 state enterprises were privatized, reducing inflation from 33,500% in 1988 to 9.45% in 2006, and cutting the foreign debt in half.^[68]

A 1000 Córdoba banknote, which was re-printed with a value of 200,000 Córdobas during the inflationary period of the late 1980s.

Though sources give slightly differing data on the country's gross domestic product (GDP), Nicaragua is the second poorest country in the Western Hemisphere.^[69][70] According to the CIA Fact Book, inflation averaged 8.1% from 2000 through 2006. As of 2007, Nicaragua's inflation stands at 9.8%. The World Bank also indicates moderate economic growth at an average of 5% from 1995 through 2004. In 2005 the economy grew 4%, with overall GDP reaching $4.91 billion. In 2006, the economy expanded by 3.7% as GDP reached $5.3 billion. According to the United Nations, 28% of the population in Nicaragua live in poverty (2006 est), unemployment is 3.1%, and another 46.5% are underemployed (2007 est.).

As in many other developing countries, a large segment of the economically poor in Nicaragua are women. In addition, a relatively high proportion of Nicaragua's average homes have a woman as head of household: 39% of urban homes and 28% of rural homes.

According to UN figures, 80% of the indigenous people (who make up 8.6% of the population) live on less than $1 per day.^[71]

Maderas and Concepcion Volcanoes, popular tourist destination in Nicaragua.

The country is still a recovering economy and it continues to implement further reforms, on which aid from the IMF is conditional. In 2005 finance ministers of the leading eight industrialized nations (G8) agreed to forgive some of Nicaragua's foreign debt, as part of the HIPC program. According to the World Bank Nicaragua's GDP was around $4.9 US billion dollars. Recently, in March 2007, Poland and Nicaragua signed an agreement to write off 30.6 million dollars which was borrowed by the Nicaraguan government in the 1980s.^[72]

According to the World Bank, Nicaragua ranked as the 62nd best economy for starting a business making it the second best in Central America, after Panama.^[73]

The Nicaraguan unit of currency is the Córdoba (NIO) and was named after Francisco Hernández de Córdoba, its national founder.

[edit] Components of the economy

Gross Domestic Product (GDP) in purchasing power parity (PPP) in 2007 was estimated at $18.17 billion USD.^[74] The service sector is the largest component of GDP at 56.9%, followed by the industrial sector at 25.9% (2006 est.). Agriculture represents only 17.1% of GDP (2007 est.). Nicaraguan labor force is estimated at 2.262 million of which 29% is occupied in agriculture, 19% in the industry sector and 52% in the service sector (est. 2007).

[edit] Tourism