Nicaragua

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Country in Central America, between the Pacific Ocean and the Caribbean Sea, bounded north by Honduras and south by Costa Rica.

Government
Nicaragua is a multiparty democracy with a presidential executive. The constitution dates from 1987. There is a single-chamber legislature, the National Assembly, which comprises 90 deputies directly elected by proportional representation, from party lists at national and department level, for a five-year term. In addition, the outgoing president and the runner-up in the presidential election are members. The executive president, who is head of state and government, is directly elected for a concurrent five-year term, which is non-renewable. The president is assisted by a vice-president and an appointed cabinet. The constitution was amended in 2005 to give the National Assembly the power to override a presidential veto of legislation with a simple majority vote.

History
The first European to reach Nicaragua was Gil Gonzalez de Avila in 1522, who brought it under Spanish rule. It remained Spanish until 1821 and was then briefly united with Mexico. Nicaragua achieved full independence in 1838.

Foreign investment
After two decades of turmoil and invasions from other Central American states, Nicaragua experienced 30 years of relative tranquillity 1863–93 under Conservative rule. This long period of peace led to increasing foreign investment, especially in coffee plantations and railway construction. The Liberal dictator Santos Zelaya, in power 1893–1909, promoted state education, the separation of church and state, and civil marriage and divorce. He also led the movement for a brief union 1896–98 with El Salvador and Honduras.

US military presence
In 1912, at the Nicaraguan government's request, the USA established military bases in the country. Their presence was opposed by a guerrilla group led by Augusto César Sandino. The USA withdrew its forces in 1933, but not before it had set up and trained a national guard, commanded by a trusted nominee, Gen Anastasio Somoza. Sandino was assassinated in 1934, but some of his followers continued their guerrilla activity.

Somoza rule
The Somoza family began a near-dictatorial rule that was to last for over 40 years. During this time they amassed a huge personal fortune. Gen Anastasio Somoza was elected president in 1936 and stayed in office until his assassination in 1956, when he was succeeded by his son Luis. The left-wing Sandinista National Liberation Front (FSLN), named after the former guerrilla leader, was formed in 1962 with the object of overthrowing the Somozas by revolution. Luis Somoza was followed by his brother Anastasio, who headed an even more notorious regime. In 1979, after considerable violence and loss of life, Somoza was ousted; see Nicaraguan Revolution.

Sandinista reconstruction
The FSLN established a provisional junta of national reconstruction led by Daniel Ortega Saavedra, published a guarantee of civil rights, and appointed a council of state, prior to an elected national assembly and a new constitution; assembly elections held in 1984 endorsed the FSLN.

USA effort to destabilize the Sandinista regime
Nicaragua's relations with the USA deteriorated rapidly after right-wing Republican Ronald Reagan became US president, in 1981. He froze the package of economic assistance arranged by his predecessor, Jimmy Carter, alleging that the Sandinista government was supporting attempts to overthrow the administration in El Salvador. In March 1982 the Nicaraguan government declared a state of emergency in the wake of attacks on bridges and petroleum installations.

The Reagan administration embarked on a policy of destabilizing Nicaragua's government and economy by actively supporting the counter-revolutionary forces (the Contras) – known to have executed prisoners, killed civilians, and engaged in forced conscription – and by covert Central Intelligence Agency operations, including the mining of Nicaraguan harbours in 1984.

In February 1985 Reagan denounced Ortega's regime, saying that his objective was to ‘remove it in the sense of its present structure’. The World Court ruled in 1986 that the USA was in breach of international law and ordered it to pay $17 billion in reparations. In June 1986 the US Congress approved $100 million in overt military aid to the Contras; total US aid to the Contras was $300 million.

Agreement to disarm the Contras
Political parties were legalized under the terms of a regional peace plan signed by the presidents of El Salvador, Guatemala, Costa Rica, Honduras, and Nicaragua in 1987, but fighting with the Contras continued. President Ortega entered into talks with the rebels in January 1988 and the US Congress rejected a request for additional military aid for the Contras. In October 1988 President Reagan announced that he would no longer seek military aid for the Contras. In February 1989 the presidents of Guatemala, El Salvador, and Honduras agreed to disarm the Contras, and in March 1989 1,900 members of the former National Guard of Anastasia Somoza were released.

Sandinista government defeated
In elections held in February 1990, Violeta Barrios de Chamorro, of the US-backed National Opposition Union (UNO), won a surprising landslide victory by a 14% margin over Daniel Ortega of the FSLN. The US administration of President H W Bush spent $9 million on her election campaign. The USA lifted its economic embargo in March 1990. The cost to Nicaragua of the US economic and Contra warfare was estimated at $15 billion, with 30,000 people killed.

Reconstruction under Chamorro
Under President Chamorro, Nicaragua reconstructed its economy and democracy, state enterprises were privatized, the human-rights situation improved, rebel groups disarmed, and there was national reconciliation. By mid 1990 the Contra rebel army had been disbanded and the government had committed itself to reducing the armed forces by 50%. However, there were violent riots in July 1990 as people protested about land rights, inflation, and unemployment.

In April 1991 Chamorro made the first state visit by a president for over 50 years. In exchange for Nicaragua dropping its claim to the damages of $17 billion awarded to it by the World Court against the USA, President Bush pledged economic support for Nicaragua, whose total international debt was almost $10 billion. US aid was suspended temporarily in June 1992 because of concern about the extent of Sandinista's influence in Chamorro's government. In response, Chamorro dismissed 12 high-level police officers linked with Sandinista.

In 1993 a state of emergency was declared in northern Nicaragua after renewed skirmishes between Contra and Sandinista rebel groups. In early 1994, the government reached a peace accord with the remaining Contra rebels, known as Recontras.

Chamorro did not dismantle the Sandinista Army, but it was renamed the Army of Nicaragua, and, under a new military code in 1994, professionalized. The police force was also brought under tighter political control.

Presidents Alemán and Bolaños
The October 1996 presidential elections were won by Arnoldo Alemán Lacayo, a former mayor of Managua and the leader of the centre-right Liberal Alliance (later Constitutional Liberal Party, or PLC). Alemán finished ahead of Daniel Ortega and became president in 1997. The elections were judged free and fair by international observers and the national observer group, Ethics and Transparency. Alemán reached an understanding with the FSLN, who were given a number of government positions. His administration continued with economic liberalization and infrastructure projects (roads and bridges), but the country was hit hard in October 1998 by Hurricane Mitch. The government also became tainted by corruption, with a number of officials being forced to resign in 2000.

The November 2001 presidential election was won by Enrique Bolaños, a 73-year-old entrepreneur and candidate of the ruling PLC, who finished 14% of the popular vote ahead of Daniel Ortega. Bolaños pledged to fight corruption and in December 2002 was instrumental in bringing money laundering and corruption charges against Alemán, who had become president of the National Assembly. In December 2003, Alemán was sentenced to 20 years imprisonment. This provoked anger among the FSLN and its supporters, leading to violent protests in Managua against the government. Part of the criticism was also because Bolaños was viewed as having become too close to the USA, which, in February 2002, had resumed military aid to Nicaragua for the first time since 1979.

Ortega returns to power
The November 2006 elections brought back to power the FSLN leader, Daniel Ortega, after 16 years in opposition. Although he captured only 38% of the national vote, he finished ahead of other candidates and secured more than the 35% minimum share needed to avoid a run-off contest.

Red symbolizes the fire from Iceland's volcanos. White represents ice. Blue stands for the mountains. Effective date: 19 June 1915. >>