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NICARAGUA

Nicaragua is a republic in Central America.

History

Colonized by Spain in 1524, Nicaragua achieved independence as an independent state in 1821 and joined the United Provinces of Central America. It separated from the federation in 1838, becoming a completely sovereign republic in 1854
.

The nation's early history was strongly influenced by military U.S. interventions and marred by lengthy periods of military dictatorship, the most infamous being the rule of the Somoza family (supported by U.S. goverments) for much of the early 20th century. In 1979 the Somoza family was deposed, and a multi-factional coalition took control of the government. Conflicts within the coalition eventually resulted in power being consolidated by Daniel Ortega, who was elected President (in elections marred by opposition refusal to participate) in 1984. Ortega and his Sandinista followers implemented a series of ambitious socialist reforms to the country, but the new president's rule was undermined by increasing civil war in which the United States, under President Ronald Reagan, funded rebel forces, called Contras.

Multi-party elections were held in 1990, and the country has retained a fairly stable democracy since then.

Politics

Nicaragua is a constitutional republic with an elected president holding executive power. The unicameral legislative body is the National Assembly, which has 93 members elected for 5-year terms. The President, and the runner-up are both members of the National Assembly, as well, and the government operates according to pseudo-parliamentary rules.

Departments of Nicaragua

Nicaragua is a unitary republic. For administrative purposes it is divided into 15 departments (provinces) and two self-governing regions (autonomous communities) based on the Spanish model:

(Department capitals in parenthesis)

Boaco (Boaco)
Carazo (San Marcos)
Chinandega (Corinto)
Chontales (Juigalpa)
Estelí (Estelí)
Granada (Granada, founded 1524)
Jinotega (Jinotega)
León (León, founded 1522)
Madriz (Somoto)
Managua (Managua, DN; also National Capital)
Masaya (Masaya)
Matagalpa (Matagalpa)
Nueva Segovia (Ocotal)
Rivas (Rivas)
Río San Juan (San Carlos)
Zelaya (See below)

In 1986, the new constitution established the Charter of Autonomy (limited self-government) for the former department of Zelaya, comprising the entire eastern half of the country. The department was divided into two autonomous regions (communities). The Charter of Autonomy is largely based on the model used by Spain. The communities are governed by a Governor and a Regional Council. Defense, etc. is the responsibility of the Central Government in Managua.

List of cities in Nicaragua

This is a list of cities in Nicaragua:

Alamikamba
Bluefields
Chinandega
Chichigalpa
Corinto
Darillo
Diriamba
El Bluff
Estelí
Granada
Jinotega
Jinotepe
Juigalpa
Laguna de Perlas
León
Managua
Masaya
Matagalpa
Matiguás
Ocotal
Peñas Blancas
Puerto Cabezas
Puerto Sandino
Rama
Rivas
Rosita
San Carlos
San José del Bocay
San Juan del Sur
San Rafael del Sur
Siuna
Telica
Villa Sandino
Waspam

Economy

Nicaragua is one of the hemisphere's poorest countries, with low per capita income, flagging socio-economic indicators, and huge external debt. The country has made significant progress toward macro-economic stabilization over the past few years - even with the damage caused by Hurricane Mitch in the fall of 1998. International aid, debt relief, and continued foreign investment have contributed to the stabilization process. GDP grew 6.3% in 1999, while inflation remained about 12%, and unemployment dropped. Nicaragua may qualify for the Heavily Indebted Poor Countries (HIPC) initiative, though aid is conditioned on improving governability, the openness of government financial operations, poverty alleviation, and human rights.

Nicaragua began free market reforms in 1991 after 12 years of economic free-fall under the Sandinista regime. Despite some setbacks, it has made dramatic progress: privatizing more than 350 state enterprises, reducing inflation from 33,603% to 8%, and cutting the foreign debt in half. The economy began expanding in 1991 and grew 2.5% in 2001, with overall GDP reaching $2.44 million in 2001. In 2001, the global recession, combined with a series of bank failures, low coffee prices, and a drought, caused the economy to retract.

Nicaragua remains the second-poorest nation in the hemisphere with a per capita GDP of less than $500--below where it stood before the Sandinista takeover in 1979. Unemployment is officially around 11%, and another 36% are underemployed. Nicaragua suffers from persistent trade and budget deficits and a high debt-service burden, leaving it highly dependent on foreign assistance--as much as 25% of GDP in 2001.

One of the key engines of economic growth has been production for export. Exports were 640 million in 2001. Although traditional products such as coffee, meat, and sugar continued to lead the list of Nicaraguan exports, the fastest growth is now in nontraditional exports: maquila goods (apparel); gold; seafood; and new agricultural products such as peanuts, sesame, melons, and onions. Nicaragua also depends heavily on remittances from Nicaraguans living abroad.

Nicaragua is primarily an agricultural country, but construction, mining, fisheries, and general commerce also have been expanding during the last few years. Foreign private capital inflows topped $300 million in 1999 but, due to economic and political uncertainty, fell to less than $100 million in 2001. Rapid expansion of the tourist industry has made it the nation's third-largest source of foreign exchange. Some 60,000 Americans visit Nicaragua yearly--primarily business people, tourists, and those visiting relatives. An estimated 5,300 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 challenges in stimulating rapid economic growth. Long-term success at attracting investment, creating jobs, and reducing poverty depend on its ability to comply with an International Monetary Fund (IMF) program, resolve the thousands of Sandinista-era property confiscation cases, and open its economy to foreign trade. This process was boosted in late 2000 when Nicaragua reached the decision point under the Heavily Indebted Poor Countries (HIPC) debt relief initiative. However, HIPC benefits will be delayed because Nicaragua subsequently fell "off track" from its IMF program. The country also has been grappling with a string of bank failures that began in August 2000. Moreover, Nicaragua continues to lose international reserves due to its growing fiscal deficits.

The U.S. is the country's largest trading partner by far--the source of 25% of Nicaragua's imports and the destination of about 60% of its exports. About 25 wholly or partly owned subsidiaries of U.S. companies operate in Nicaragua. The largest of those investments are in the energy, communications, manufacturing, fisheries, and shrimp farming sectors. Good opportunities exist for further investments in those same sectors, as well as in tourism, mining, franchising, and the distribution of imported consumer, manufacturing, and agricultural goods.

The U.S. embassy's Economic/Commercial Section advances American economic and business interests by briefing U.S. firms on opportunities and stumbling blocks to trade and investment in Nicaragua; encouraging key Nicaraguan decisionmakers to work with American firms; helping to resolve problems that affect U.S. commercial interests; and working to change local economic and trade ground rules in order to afford U.S. firms a level playing field on which to compete.

Demographics of Nicaragua

Most Nicaraguans have 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.

The 1995 constitutional reform guaranteed the integrity of the regions' several unique cultures and gave the inhabitants a say in the use of the area's natural resources. 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 54% urban.

Population: 4,812,569 (July 2000 est.)

Age structure:
0-14 years: 40% (male 971,580; female 936,888)
15-64 years: 57% (male 1,372,169; female 1,392,861)
65 years and over: 3% (male 60,539; female 78,532) (2000 est.)

Population growth rate: 2.2% (2000 est.)

Birth rate: 28.26 births/1,000 population (2000 est.)

Death rate: 4.9 deaths/1,000 population (2000 est.)

Net migration rate: -1.35 migrant(s)/1,000 population (2000 est.)

Sex ratio:
at birth: 1.04 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 0.99 male(s)/female
65 years and over: 0.77 male(s)/female
total population: 1 male(s)/female (2000 est.)

Infant mortality rate: 34.79 deaths/1,000 live births (2000 est.)

Life expectancy at birth:
total population: 68.74 years
male: 66.81 years
female: 70.77 years (2000 est.)

Total fertility rate: 3.27 children born/woman (2000 est.)

Nationality:
noun: Nicaraguan(s)
adjective: Nicaraguan

Ethnic groups: mestizo (mixed Amerindian and white) 69%, white 17%, black 9%, Amerindian 5%

Religions: Roman Catholic 85%, Protestant

Languages: Spanish (official)
note: English and indigenous languages on Atlantic coast

Literacy:
definition: age 15 and over can read and write
total population: 65.7%
male: 64.6%
female: 66.6% (1995 est.)

 

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