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The Pacific coast of Nicaragua was settled as a Spanish colony from Panama in the early 16th century. Independence from Spain was declared in 1821 and the country became an independent republic in 1838. Britain occupied the Caribbean Coast in the first half of the 19th century, but gradually ceded control of the region in subsequent decades. Violent opposition to governmental manipulation and corruption spread to all classes by 1978 and resulted in a short-lived civil war that brought the Marxist Sandinista guerrillas to power in 1979. Nicaraguan aid to leftist rebels in El Salvador caused the US to sponsor anti-Sandinista contra guerrillas through much of the 1980s. Free elections in 1990, 1996, and 2001, saw the Sandinistas defeated, but voting in 2006 announced the return of former Sandinista President Daniel ORTEGA Saavedra. The 2008 municipal elections were characterized by widespread irregularities. Nicaragua's infrastructure and economy - hard hit by the earlier civil war and by Hurricane Mitch in 1998 - are slowly being rebuilt, but democratic institutions face new challenges under the ORTEGA administration.
chief of state: President Daniel ORTEGA Saavedra (since 10 January 2007); Vice President Jaime MORALES Carazo (since 10 January 2007); note - the president is both chief of state and head of government
head of government:
President Daniel ORTEGA Saavedra (since 10 January 2007); Vice President Jaime MORALES Carazo (since 10 January 2007)
cabinet:
Council of Ministers appointed by the president
elections:
president and vice president elected on the same ticket by popular vote for a five-year term (eligible for a second term so long as it is not consecutive); election last held on 5 November 2006 (next to be held by November 2011)
election results:
Daniel ORTEGA Saavedra elected president - 38.1%, Eduardo MONTEALEGRE 29%, Jose RIZO 26.2%, Edmundo JARQUIN 6.4%
unicameral National Assembly or Asamblea Nacional (92 seats; 90 members elected by proportional representation and party lists to serve five-year terms; 1 seat for the previous president, 1 seat for the runner-up in previous presidential election)
elections:
last held on 5 November 2006 (next to be held by November 2011)
election results:
percent of vote by party - NA; seats by party - FSLN 38, PLC 25, ALN 23 (22 plus one for presidential candidate Eduardo MONTEALEGRE, runner-up in the 2006 presidential election), MRS 5, APRE 1 (outgoing President Enrique BOLANOS); note - as of 1 May 2009: seats by party - FSLN 38, PLC 20, BDN 17, ALN 6, MRS 3, APRE 1, Independent 7
Alliance for the Republic or APRE; Conservative Party or PC [Azalia AVILES Salmeron]; Independent Liberal Party or PLI [Indalecio RODRIGUEZ]; Liberal Constitutionalist Party or PLC [Jorge CASTILLO Quant]; Nicaraguan Liberal Alliance or ALN [Alejandro MEJIA Ferreti]; Sandinista National Liberation Front or FSLN [Daniel ORTEGA Saavedra]; Sandinista Renovation Movement or MRS [Enrique SAENZ Navarrete]
National Workers Front or FNT (a Sandinista umbrella group of eight labor unions including: Farm Workers Association or ATC, Health Workers Federation or FETASALUD, Heroes and Martyrs Confederation of Professional Associations or CONAPRO, National Association of Educators of Nicaragua or ANDEN, National Union of Employees or UNE, National Union of Farmers and Ranchers or UNAG, Sandinista Workers Central or CST, and Union of Journalists of Nicaragua or UPN); Permanent Congress of Workers or CPT (an umbrella group of four non-Sandinista labor unions including: Autonomous Nicaraguan Workers Central or CTN-A, Confederation of Labor Unification or CUS, Independent General Confederation of Labor or CGT-I, and Labor Action and Unity Central or CAUS); Nicaraguan Workers' Central or CTN (an independent labor union); Superior Council of Private Enterprise or COSEP (a confederation of business groups)
three equal horizontal bands of blue (top), white, and blue with the national coat of arms centered in the white band; the coat of arms features a triangle encircled by the words REPUBLICA DE NICARAGUA on the top and AMERICA CENTRAL on the bottom
note:similar to the flag of El Salvador, which features a round emblem encircled by the words REPUBLICA DE EL SALVADOR EN LA AMERICA CENTRAL centered in the white band; also similar to the flag of Honduras, which has five blue stars arranged in an X pattern centered in the white band
Nicaragua, the poorest country in Central America, has widespread underemployment and poverty. GDP fell by almost 3% in 2009, due to decreased export demand in the US and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth - remittances are equivalent to almost 15% of GDP. The US-Central America Free Trade Agreement (CAFTA) has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. Textiles and apparel account for nearly 60% of Nicaragua's exports, but increases in the minimum wage during the ORTEGA administration will likely erode its comparative advantage in this industry. Nicaragua relies on international economic assistance to meet internal- and external-debt financing obligations. Foreign donors have curtailed this funding, however, in response to November 2008 electoral fraud. In early 2004, Nicaragua secured some $4.5 billion in foreign debt reduction under the Heavily Indebted Poor Countries (HIPC) initiative, and in October 2007, the IMF approved a new poverty reduction and growth facility (PRGF) program.
general assessment: system being upgraded by foreign investment; nearly all installed telecommunications capacity now uses digital technology, owing to investments since privatization of the formerly state-owned telecommunications company
domestic:
since privatization, access to fixed-line and mobile-cellular services has improved but teledensity still lags behind other Central American countries; fixed-line teledensity roughly 5 per 100 persons; mobile-cellular telephone subscribership is increasing and reached 55 per 100 persons in 2008; connected to Central American Microwave System
international:
country code - 505; the Americas Region Caribbean Ring System (ARCOS-1) fiber optic submarine cable provides connectivity to South and Central America, parts of the Caribbean, and the US; satellite earth stations - 1 Intersputnik (Atlantic Ocean region) and 1 Intelsat (Atlantic Ocean) (2008)
memorials and countermemorials were filed by the parties in Nicaragua's 1999 and 2001 proceedings against Honduras and Colombia at the ICJ over the maritime boundary and territorial claims in the western Caribbean Sea, final public hearings are scheduled for 2007; the 1992 ICJ ruling for El Salvador and Honduras advised a tripartite resolution to establish a maritime boundary in the Gulf of Fonseca, which considers Honduran access to the Pacific; legal dispute over navigational rights of San Juan River on border with Costa Rica
The online Factbook is updated bi-weekly. ISSN 1553-8133
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