Nicaragua

Nicaragua, the largest country in Central America, 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 and recent Supreme Court rulings allow for his reelection in November of 2011.

Nicaragua is a land of active volcanoes and a history of devastating earthquakes and hurricanes. The vast percentage of people and industry are concentrated in the southwestern part, near Lakes Managua and Nicaragua.  The eastern half of the country is very flat, sparsely populated, with hot and humid conditions along the Caribbean coastline, commonly called the Mosquito Coast.

Facts and Figures

  • Official Name Republic of Nicaragua
  • Population 5,777,700
  • Capital City Managua (1.15 million)
  • Languages Spanish (official), English and indigenous languages on Atlantic coast
  • Religions Roman Catholic 85%, Protestant 12%, Other 3%
  • Land Area 111,750 sq km (45,849 sq miles) slightly smaller than the state of New York
  • Highest Point Pico Mogoton, 6,913 ft. (2,107 m)
  • Terrain Extensive Atlantic coastal plains rising to central interior mountains; narrow Pacific coastal plain interrupted by volcanoes
  • Natural Resources Gold, silver, copper, tungsten, lead, zinc, timber, fish
  • Land Use Arable land 15.9%, permanent crops 1.9%, other 82.1%
  • Age Structure 0-14 years 38.1%,  15-64 years: 58.9%, 65 years and over: 3%
  • Infant  Mortality Rate 30 deaths for every 1000 live births (2004 est.)
  • Life Expectancy at Birth Total population 70 years; male 68 years, female 72.2 years (2004 est.)
  • Ethnic Groups Mestizo (mixed Amerindian and white) 69%, white 17%, black 9%, Amerindian 5%
  • Literacy defined as those age 15 and over who can read and write.  Total population 67.5% (2003 est.)

Government Republic

  • Executive Branch President is both chief of state and head of government.  Council of Ministers (similar to the Cabinet) is appointed by the president.  President and vice president are elected on the same ticket by popular vote for a five year term.
  • Legislative Branch Unicameral National Assembly (Asamblea Nacional), 92 seats.  Members are elected by proportional representation and party lists to serve five year terms.
  • Judicial Branch Supreme Court (Corte Suprema) with 16 judges elected for five year terms by the
    Asamblea Nacional.

Economy Overview

Nicaragua, one of the hemisphere’s poorest countries, faces low per capita income, massive unemployment, and huge external debt. Distribution of income is one of the most unequal on the globe. While the country has made progress toward macroeconomic stability over the past few years, GDP annual growth of 1.5% – 2.5% has been far too low to meet the country’s need. Nicaragua will continue to be dependent on international aid and debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Nicaragua has undertaken significant economic reforms that are expected to help the country qualify for more than $4 billion in debt relief under HIPC in early 2004. Donors have made aid conditional on the openness of government financial operation, poverty alleviation, and human rights. A three-year poverty reduction and growth plan, agreed to with the IMF in December 2002, guides economic policy.

  • GDP per Capita  Purchasing power parity $2300 (2003 est.)
  • Population Below Poverty Line 50% (2001 est.)
  • Agriculture Products Coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans; beef, veal, pork, poultry, dairy products
  • Industries Food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood
  • Exports Coffee, shrimp and lobster, cotton, tobacco, bananas, beef, sugar, gold
  • Imports Machinery and equipment, raw materials, petroleum products, consumer goods
  • Currency Gold Cordoba
  • Exchange Rate Gold cordobas per US dollar – 14.2513 (2003)

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