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Nicaragua

Population:5891199 (July 2010 est.)    Capital:Managua     Official URL:http://www.asamblea.gob.ni/
About: 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... read more 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. The US sponsored anti-Sandinista contra guerrillas through much of the 1980s. Free elections in 1990, 1996, and again in 2001 saw the Sandinistas defeated. Over the last 10 years, Nicaragua has reinvented itself and overcome the scars left by political instability, civil war, macroeconomic mismanagement, and a series of natural and man-made disasters that left the country vulnerable to internal and external shocks. Nicaragua’s recent history shows a country that has evolved and made notable progress in economic growth and poverty reduction through the implementation of sound economic policies, a generally positive external environment, and an improved investment climate. The present Government in office, led by President Enrique Bolaños, was sworn in in early 2002 and inherited a country facing a large fiscal deficit and widespread corruption. Thus, the government’s main agenda consisted of taking decisive actions to address the impaired economic environment and tackle governance issues. A first step taken was to pursue the removal of parliamentary immunity of former President Arnoldo Alemán, who was later prosecuted on various corruption charges. In parallel, the new government moved quickly to restore macroeconomic discipline, signed a Poverty Reduction and Growth Facility (PRGF) agreement with the International Monetary Fund (IMF) in late 2002, and underwent a series of reforms that allowed Nicaragua to reach the completion point for the Heavily-Indebted Poor Countries (HIPC) initiative in early 2004. As a result, there was a robust recovery of economic growth from a modest 0.8 percent in 2002 to 5.1 percent in 2004. During 2005, the country suffered a setback, reflecting in part the oil price shock and an increased political polarization which put a strain on relations between the legislative and executive branches. Following a pact between the two main political parties, important constitutional amendments and related legislation that threatened to destabilize the overall economic balance were put on hold, and the National Assembly was able to ratify the Free Trade Agreement that five nations of Central America and the Dominican Republic signed with the U.S. (DR-CAFTA). An updated National Development Strategy (PRSP II) was articulated and supported by donor assistance programs. The next presidential and congressional elections are scheduled for November 2006, with some uncertainty as to the likely outcome.