Changes

==People==

==People==

Most Nicaraguans are of both European and Indian ancestry, and the culture of the country reflects the Ibero-European and Indian heritage of its people. Only the Indians of the eastern half of the country remain ethnically distinct and retain tribal customs and languages. A large black minority, of Jamaican origin, is concentrated on the Caribbean coast. In the mid-1980s, the central government divided the eastern half of the country--the former department of Zelaya--into two autonomous regions and granted the people of the region limited self-rule.  

Most Nicaraguans are of both European and Indian ancestry, and the culture of the country reflects the Ibero-European and Indian heritage of its people. Only the Indians of the eastern half of the country remain ethnically distinct and retain tribal customs and languages. A large black minority, of Jamaican origin, is concentrated on the Caribbean coast. In the mid-1980s, the central government divided the eastern half of the country—the former department of Zelaya—into two autonomous regions and granted the people of the region limited self-rule.  

Roman Catholicism is the major religion, but Evangelical Protestant groups have grown recently, and there are strong Anglican and Moravian communities on the Caribbean coast. Most Nicaraguans live in the Pacific lowlands and the adjacent interior highlands. The population is 58% urban.  

Roman Catholicism is the major religion, but Evangelical Protestant groups have grown recently, and there are strong Anglican and Moravian communities on the Caribbean coast. Most Nicaraguans live in the Pacific lowlands and the adjacent interior highlands. The population is 58% urban.  

*Population (2005): 5.4 million.  

*Population (2005): 5.4 million.  

*Annual growth rate (2005): 1.7%. Density--42 per sq. km.

*Annual growth rate (2005): 1.7%. Density—42 per sq. km.

*Ethnic groups: Mestizo (mixed European and indigenous) 69%, white 17%, black (Jamaican origin) 9%, indigenous 5%.

*Ethnic groups: Mestizo (mixed European and indigenous) 69%, white 17%, black (Jamaican origin) 9%, indigenous 5%.

*Religion: Predominantly Roman Catholic, with rapidly growing percentage of Evangelical Protestants.

*Religion: Predominantly Roman Catholic, with rapidly growing percentage of Evangelical Protestants.

*Languages: Spanish (official), English and indigenous languages on Caribbean coast.  

*Languages: Spanish (official), English and indigenous languages on Caribbean coast.  

*Education: Years compulsory--none enforced (28% of first graders eventually finish sixth grade). Literacy--67.5%.

*Education: Years compulsory—none enforced (28% of first graders eventually finish sixth grade). Literacy—67.5%.

*Health (2005): Life expectancy--70 yrs. Infant mortality rate--35.50/1,000.

*Health (2005): Life expectancy—70 yrs. Infant mortality rate—35.50/1,000.

*Work force (2004 est.): 1.9 million.  

*Work force (2004 est.): 1.9 million.  

==Government and Political Conditions==

==Government and Political Conditions==

Nicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government. In 1995, the executive and legislative branches negotiated a reform of the 1987 [[Sandinista]] constitution, which gave extensive new powers and independence to the legislature--the National Assembly--including permitting the Assembly to override a presidential veto with a simple majority vote and eliminating the president's ability to pocket-veto a bill.  

Nicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government. In 1995, the executive and legislative branches negotiated a reform of the 1987 [[Sandinista]] constitution, which gave extensive new powers and independence to the legislature—the National Assembly—including permitting the Assembly to override a presidential veto with a simple majority vote and eliminating the president's ability to pocket-veto a bill.  

The president and the members of the unicameral National Assembly are elected to concurrent 5-year terms. The National Assembly consists of 92 total deputies (90 elected from party lists drawn at the departmental and national levels, plus the outgoing president and the candidate who finishes second in the presidential race).  

The president and the members of the unicameral National Assembly are elected to concurrent 5-year terms. The National Assembly consists of 92 total deputies (90 elected from party lists drawn at the departmental and national levels, plus the outgoing president and the candidate who finishes second in the presidential race).  

===Political Parties===

===Political Parties===

Five parties participated in the 2006 national elections (FSLN, ALN, PLC, MRS, and AC). The election resulted in the following distribution of the 92 seats in the National Assembly (installed January 9, 2007): FSLN--38; PLC--25; ALN--24; MRS--5.  

Five parties participated in the 2006 national elections (FSLN, ALN, PLC, MRS, and AC). The election resulted in the following distribution of the 92 seats in the National Assembly (installed January 9, 2007): FSLN—38; PLC—25; ALN—24; MRS—5.  

===Principal Government Officials===

===Principal Government Officials===

*President--Jose Daniel Ortega Saavedra  

*President—Jose Daniel Ortega Saavedra  

*Vice President--Jaime Morales Carazo  

*Vice President—Jaime Morales Carazo  

*Foreign Affairs Minister--Samuel Santos

*Foreign Affairs Minister—Samuel Santos

*Finance Minister--Alberto Jose Guevara Obregon

*Finance Minister—Alberto Jose Guevara Obregon

*Minister of Industry and Commerce--Orlando Solorzano Delgadillo  

*Minister of Industry and Commerce—Orlando Solorzano Delgadillo  

*Minister of Government--Ana Isabel Morales

*Minister of Government—Ana Isabel Morales

*Secretary General of the Ministry of Defense--Ruth Tapia Roa

*Secretary General of the Ministry of Defense—Ruth Tapia Roa

*Ambassador to the United States--Arturo Cruz, Jr.

*Ambassador to the United States—Arturo Cruz, Jr.

*Ambassador to the United Nations--Maria Eugenia Rubiales de Chamorro

*Ambassador to the United Nations—Maria Eugenia Rubiales de Chamorro

*Ambassador to the Organization of American States--Denis Ronaldo Moncada Colindres

*Ambassador to the Organization of American States—Denis Ronaldo Moncada Colindres

===Foreign Relations===

===Foreign Relations===

[[File:Central America.jpg|right|240px]]

[[File:Central America.jpg|right|240px]]

The 1990 election victory of President Violeta Chamorro placed Nicaragua in the ranks of Latin American democracies. Nicaragua pursues an independent foreign policy. A participant of the Central American Security Commission (CASC), Nicaragua also has taken a leading role in pressing for regional demilitarization and peaceful settlement of disputes within states in the region. Nicaragua has submitted two territorial disputes--one with Honduras and the other with Colombia--to the International Court at The Hague for resolution.  

The 1990 election victory of President Violeta Chamorro placed Nicaragua in the ranks of Latin American democracies. Nicaragua pursues an independent foreign policy. A participant of the Central American Security Commission (CASC), Nicaragua also has taken a leading role in pressing for regional demilitarization and peaceful settlement of disputes within states in the region. Nicaragua has submitted two territorial disputes—one with Honduras and the other with Colombia—to the International Court at The Hague for resolution.  

On the San Juan River there have been disagreements regarding navigational rights in the Nicaragua-Costa Rica border area. Nicaragua and Costa Rica signed a 3-year agreement in September of 2002 to defer presenting these issues before the International Court of Justice (ICJ) for resolution. After the two governments failed to reach an amicable solution, Costa Rica filed a case before the ICJ. While the case is currently pending, the two countries jointly fund community development projects in the border area. At the 1994 Summit of the Americas, Nicaragua joined six Central American neighbors in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA, or CONCAUSA, to promote sustainable economic development in the region.  

On the San Juan River there have been disagreements regarding navigational rights in the Nicaragua-Costa Rica border area. Nicaragua and Costa Rica signed a 3-year agreement in September 2002 to defer presenting these issues before the International Court of Justice (ICJ) for resolution. After the two governments failed to reach an amicable solution, Costa Rica filed a case before the ICJ. While the case is currently pending, the two countries jointly fund community development projects in the border area. At the 1994 Summit of the Americas, Nicaragua joined six Central American neighbors in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA, or CONCAUSA, to promote sustainable economic development in the region.  

Nicaragua belongs to the United Nations and several specialized and related agencies, including the World Bank, the International Monetary Fund (IMF), World Trade Organization (WTO), UN Educational, Scientific, and Cultural Organization (UNESCO), World Health Organization (WHO), Food and Agriculture Organization (FAO), International Labor Organization (ILO), and UN Human Rights Commission (UNHRC). Nicaragua also is a member of the Organization of American States (OAS), the Non-aligned Movement (NAM), the International Atomic Energy Commission (IAEA), the Inter-American Development Bank (IDB), and the Central American Bank for Economic Integration (CABEI).  

Nicaragua belongs to the United Nations and several specialized and related agencies, including the World Bank, the International Monetary Fund (IMF), World Trade Organization (WTO), UN Educational, Scientific, and Cultural Organization (UNESCO), World Health Organization (WHO), Food and Agriculture Organization (FAO), International Labor Organization (ILO), and UN Human Rights Commission (UNHRC). Nicaragua also is a member of the Organization of American States (OAS), the Non-aligned Movement (NAM), the International Atomic Energy Commission (IAEA), the Inter-American Development Bank (IDB), and the Central American Bank for Economic Integration (CABEI).  

*Inflation rate (2006): 9.45%.

*Inflation rate (2006): 9.45%.

*Natural resources: arable land, fresh water, fisheries, gold, timber hydro and geothermal power potential.  

*Natural resources: arable land, fresh water, fisheries, gold, timber hydro and geothermal power potential.  

*Agriculture (17% of GDP): Products--corn, coffee, sugar, meat, rice, beans, bananas, beef, dairy.

*Agriculture (17% of GDP): Products—corn, coffee, sugar, meat, rice, beans, bananas, beef, dairy.

*Industry (24% of GDP): Types--processed food, beverages, textiles, petroleum, and metal products.

*Industry (24% of GDP): Types—processed food, beverages, textiles, petroleum, and metal products.

*Services (52% of GDP): Types--banking, wholesale and retail distribution, telecommunications, and energy.

*Services (52% of GDP): Types—banking, wholesale and retail distribution, telecommunications, and energy.

*Trade (2005 est.): Normal exports--$857 million (f.o.b.): coffee, seafood, beef, sugar, industrial goods, gold, bananas. Free trade zone exports--$682 million, mostly textiles and apparel, automobile wiring harnesses. Markets--Central American Common Market (CACM) 35%, U.S. 33%, European Union 14%, Mexico 4%, Japan 1%. Imports--$2.865 billion (c.i.f.): petroleum, agricultural inputs and equipment, manufactured goods. Suppliers--CACM 21%, U.S. 18%, EU 8%, Mexico 8%, Venezuela 6%, China 5%.  

*Trade (2005 est.): Normal exports--$857 million (f.o.b.): coffee, seafood, beef, sugar, industrial goods, gold, bananas. Free trade zone exports--$682 million, mostly textiles and apparel, automobile wiring harnesses. Markets—Central American Common Market (CACM) 35%, U.S. 33%, European Union 14%, Mexico 4%, Japan 1%. Imports--$2.865 billion (c.i.f.): petroleum, agricultural inputs and equipment, manufactured goods. Suppliers—CACM 21%, U.S. 18%, EU 8%, Mexico 8%, Venezuela 6%, China 5%.  

The U.S. is Nicaragua's largest trading partner, accounting for one-fifth of Nicaragua's imports and almost two-thirds of its total exports. Nicaragua formally entered the Central American Free Trade Agreement (CAFTA) on April 1, 2006. Nicaraguan exports to the U.S. grew 17.4% during the agreement's first 12 months. Although volumes are still low, over the same period, Nicaragua exported 237 new products to the U.S. Imports increased almost 21%, centering around machinery, cereals, vehicles, fats and oils, and plastic products.  

The U.S. is Nicaragua's largest trading partner, accounting for one-fifth of Nicaragua's imports and almost two-thirds of its total exports. Nicaragua formally entered the Central American Free Trade Agreement (CAFTA) on April 1, 2006. Nicaraguan exports to the U.S. grew 17.4% during the agreement's first 12 months. Although volumes are still low, over the same period, Nicaragua exported 237 new products to the U.S. Imports increased almost 21%, centering around machinery, cereals, vehicles, fats and oils, and plastic products.  

Nicaragua is primarily an agricultural country, but light industry (maquila), tourism, banking, mining, fisheries, and general commerce are expanding. Foreign capital inflows reached $282.3 million in 2006. Strong anti-capitalist rhetoric from President Ortega may discourage prospective investors and slow foreign direct investment. The lack of clarity on the Ortega government's economic policies has created particular uncertainty in the power, fuel, tourism, and real estate sectors.  

Nicaragua is primarily an agricultural country, but light industry (maquila), tourism, banking, mining, fisheries, and general commerce are expanding. Foreign capital inflows reached $282.3 million in 2006. Strong anti-capitalist rhetoric from President Ortega may discourage prospective investors and slow foreign direct investment. The lack of clarity on the Ortega government's economic policies has created particular uncertainty in the power, fuel, tourism, and real estate sectors.  

Tourism is the nation's third-largest source of foreign exchange. More than 60,000 Americans visit Nicaragua yearly, primarily business people, tourists, and Nicaraguan-Americans visiting relatives. An estimated 7,000 U.S. citizens reside in the country. The U.S. Embassy's consular section provides a full range of consular services--from passport replacement and veteran's assistance to prison visitation and repatriation assistance.  

Tourism is the nation's third-largest source of foreign exchange. More than 60,000 Americans visit Nicaragua yearly, primarily business people, tourists, and Nicaraguan-Americans visiting relatives. An estimated 7,000 U.S. citizens reside in the country. The U.S. Embassy's consular section provides a full range of consular services—from passport replacement and veteran's assistance to prison visitation and repatriation assistance.  

Nicaragua faces a number of political and infrastructure challenges in achieving sustainable economic growth. Long-term success at attracting investment, creating jobs, and reducing poverty depend on its ability to comply with a new International Monetary Fund (IMF) program, resolve the thousands of Sandinista-era property confiscation cases, promote a positive investment climate, and keep its economy open to foreign trade. Nicaragua achieved extensive debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and successfully completed its first IMF Poverty Reduction and Growth Facility (PRGF) in 2006. During the Bolaños administration (2001-2006), fiscal deficits were reduced through increased tax collection and limits placed on consolidated public sector expenditures; international reserves increased from U.S. $274 million in 2001 to U.S. $924 million in 2006.  

Nicaragua faces a number of political and infrastructure challenges in achieving sustainable economic growth. Long-term success at attracting investment, creating jobs, and reducing poverty depend on its ability to comply with a new International Monetary Fund (IMF) program, resolve the thousands of Sandinista-era property confiscation cases, promote a positive investment climate, and keep its economy open to foreign trade. Nicaragua achieved extensive debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and successfully completed its first IMF Poverty Reduction and Growth Facility (PRGF) in 2006. During the Bolaños administration (2001-2006), fiscal deficits were reduced through increased tax collection and limits placed on consolidated public sector expenditures; international reserves increased from U.S. $274 million in 2001 to U.S. $924 million in 2006.  

By 1909, differences had developed over a trans-isthmian canal and concessions to Americans in Nicaragua; there also was concern about what was perceived as Nicaragua's destabilizing influence in the region. In 1909 the United States provided political support to Conservative-led forces rebelling against President Zelaya and intervened militarily to protect American lives and property. With the exception of a 9-month period in 1925-26, the United States maintained troops in Nicaragua from 1912 until 1933. From 1927 until 1933, U.S. Marines stationed in Nicaragua engaged in a running battle with rebel forces led by renegade Liberal Gen. Augusto Sandino, who rejected a 1927 negotiated agreement brokered by the United States to end the latest round of fighting between Liberals and Conservatives.  

By 1909, differences had developed over a trans-isthmian canal and concessions to Americans in Nicaragua; there also was concern about what was perceived as Nicaragua's destabilizing influence in the region. In 1909 the United States provided political support to Conservative-led forces rebelling against President Zelaya and intervened militarily to protect American lives and property. With the exception of a 9-month period in 1925-26, the United States maintained troops in Nicaragua from 1912 until 1933. From 1927 until 1933, U.S. Marines stationed in Nicaragua engaged in a running battle with rebel forces led by renegade Liberal Gen. Augusto Sandino, who rejected a 1927 negotiated agreement brokered by the United States to end the latest round of fighting between Liberals and Conservatives.  

After the departure of U.S. troops, National Guard Commander [[Anastasio Somoza Garcia]] outmaneuvered his political opponents--including Sandino, who was assassinated by National Guard officers--and took over the presidency in 1936. Somoza and two sons who succeeded him maintained close ties with the United States.  

After the departure of U.S. troops, National Guard Commander [[Anastasio Somoza Garcia]] outmaneuvered his political opponents—including Sandino, who was assassinated by National Guard officers—and took over the presidency in 1936. Somoza and two sons who succeeded him maintained close ties with the United States.  

Beginning in the late 1970s Nicaragua was ravaged by a civil war between the Somoza government and a socialist faction known as the [[Sandinista]] National Liberation Front (FSLN), which had conducted a low scale guerrilla war against the Somoza regime since the early 1960s. Despite generous funding by the [[Carter administration]] to the Sandinistas, the regime resolutely turned away from the US and with [[Cuba]]n and East European help <ref>[http://www.globalsecurity.org/military/library/report/1989/HJM.htm U.S. Policy in Central America], Major J.M Hughes USMC.  Retrieved from globalsecurity.org 15 July 2007.</ref> built up an army of 75,000, larger than that of Mexico. <ref>Mona Charen, ''Useful Idiots'', Regnery Publishing, 2003. ISBN: 0895261391</ref> As well as killing hundreds of thousands of people, the war left 20% of the country's population homeless <ref>http://news.bbc.co.uk/1/hi/world/americas/country_profiles/1225218.stm</ref>. The Somoza dynasty ended in 1979 with a massive uprising led by the FSLN.

Beginning in the late 1970s Nicaragua was ravaged by a civil war between the Somoza government and a socialist faction known as the [[Sandinista]] National Liberation Front (FSLN), which had conducted a low scale guerrilla war against the Somoza regime since the early 1960s. Despite generous funding by the [[Carter administration]] to the Sandinistas, the regime resolutely turned away from the US and with [[Cuba]]n and East European help <ref>[http://www.globalsecurity.org/military/library/report/1989/HJM.htm U.S. Policy in Central America], Major J.M Hughes USMC.  Retrieved from globalsecurity.org 15 July 2007.</ref> built up an army of 75,000, larger than that of Mexico.<ref>Mona Charen, ''Useful Idiots'', Regnery Publishing, 2003. ISBN 0895261391</ref> As well as killing hundreds of thousands of people, the war left 20% of the country's population homeless.<ref>http://news.bbc.co.uk/1/hi/world/americas/country_profiles/1225218.stm</ref>  The Somoza dynasty ended in 1979 with a massive uprising led by the FSLN.

The FSLN established an authoritarian dictatorship soon after taking power. U.S.-Nicaraguan relations deteriorated rapidly as the regime nationalized many private industries, confiscated private property, supported Central American guerrilla movements, and maintained links to international terrorists. The United States suspended aid to Nicaragua in 1981. The [[Ronald Reagan|Reagan Administration]] facilitated funding to the [[Contras]] through arms sales by [[Israel]] to [[Iran]] in what became known as the [[Iran-Contra affair]]. <ref>"President Ronald Reagan told a packed [[White House]] news conference that funds derived from covert arms deals with the Islamic Republic of Iran had been diverted to buy weapons for the U.S.-backed Contra rebels in Nicaragua." http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB210/index.htm</ref>  The post [[Vietnam]]-era [[Boland amendment]] denied direct appropriations to continue the policy of [[Containment]] as it pertained to Nicaragua during this period of the [[Cold War]].  

The FSLN established an authoritarian dictatorship soon after taking power. U.S.-Nicaraguan relations deteriorated rapidly as the regime nationalized many private industries, confiscated private property, supported Central American guerrilla movements, and maintained links to international terrorists. The United States suspended aid to Nicaragua in 1981. The [[Ronald Reagan|Reagan Administration]] facilitated funding to the [[Contras]] through arms sales by [[Israel]] to [[Iran]] in what became known as the [[Iran-Contra affair]].<ref>"President Ronald Reagan told a packed [[White House]] news conference that funds derived from covert arms deals with the Islamic Republic of Iran had been diverted to buy weapons for the U.S.-backed Contra rebels in Nicaragua." http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB210/index.htm</ref>  The post [[Vietnam]]-era [[Boland amendment]] denied direct appropriations to continue the policy of [[Containment]] as it pertained to Nicaragua during this period of the [[Cold War]].  

In response to both domestic and international pressure, the Sandinista regime entered into negotiations with the Nicaraguan resistance and agreed to nationwide elections in February 1990. In these elections, which were proclaimed free and fair by international observers, Nicaraguan voters elected as their President the candidate of the National Opposition Union, Violeta Barrios de Chamorro.  

In response to both domestic and international pressure, the Sandinista regime entered into negotiations with the Nicaraguan resistance and agreed to nationwide elections in February 1990. In these elections, which were proclaimed free and fair by international observers, Nicaraguan voters elected as their President the candidate of the National Opposition Union, Violeta Barrios de Chamorro.  

During President Chamorro's nearly 7 years in office, her government achieved major progress toward consolidating democratic institutions, advancing national reconciliation, stabilizing the economy, privatizing state-owned enterprises, and reducing human rights violations. Despite a number of irregularities--which were due largely to logistical difficulties and a baroquely complicated electoral law--the October 20, 1996 presidential, legislative, and mayoral elections were judged free and fair by international observers and by the groundbreaking national electoral observer group Etica y Transparencia (Ethics and Transparency). This time Nicaraguans elected former Managua Mayor Arnoldo Alemán, leader of the center-right Liberal Alliance. The first transfer of power in recent Nicaraguan history from one democratically elected president to another took place on January 10, 1997, when the Alemán government was inaugurated.  

During President Chamorro's nearly 7 years in office, her government achieved major progress toward consolidating democratic institutions, advancing national reconciliation, stabilizing the economy, privatizing state-owned enterprises, and reducing human rights violations. Despite a number of irregularities—which were due largely to logistical difficulties and a baroquely complicated electoral law—the October 20, 1996 presidential, legislative, and mayoral elections were judged free and fair by international observers and by the groundbreaking national electoral observer group Etica y Transparencia (Ethics and Transparency). This time Nicaraguans elected former Managua Mayor Arnoldo Alemán, leader of the center-right Liberal Alliance. The first transfer of power in recent Nicaraguan history from one democratically elected president to another took place on January 10, 1997, when the Alemán government was inaugurated.  

Presidential and legislative elections were held in November 2001. Enrique Bolaños of the Liberal Constitutional Party was elected to the Nicaraguan presidency on November 4, 2001, defeating FSLN candidate Daniel Ortega by 14 percentage points. The elections, characterized by international observers as free, fair and peaceful, reflected the maturing of Nicaragua's democratic institutions. During his campaign, President-elect Bolaños promised to reinvigorate the economy, create jobs, fight corruption, and support the war against terrorism. Bolaños was inaugurated on January 10, 2002.  

Presidential and legislative elections were held in November 2001. Enrique Bolaños of the Liberal Constitutional Party was elected to the Nicaraguan presidency on November 4, 2001, defeating FSLN candidate Daniel Ortega by 14 percentage points. The elections, characterized by international observers as free, fair and peaceful, reflected the maturing of Nicaragua's democratic institutions. During his campaign, President-elect Bolaños promised to reinvigorate the economy, create jobs, fight corruption, and support the war against terrorism. Bolaños was inaugurated on January 10, 2002.