NicaraguaPolitical, Economic and Development Needs

Political HistorySettled as a Spanish colony from

Panama in the early 16th century. Independence from Spain declared in

1821 Country became an independent

republic in 1838. British occupation of Caribbean Coast

in the first half of the 19th century,

1978: Violent opposition to governmental manipulation and corruption was wide spread

1979: Marxist Sandinistas come to power

1980’s: USA sponsor of anti-Sandinista contra

Free elections in 1990, 1996, and 2001 - Sandinistas defeated

Voting in 2006:return of former Sandinista President Daniel Ortega Saavedra.

Overall - Nicaragua's infrastructure and economy shaken

EconomyNicaragua has widespread

underemployment Third lowest per capita

income in the Western Hemisphere.

Annual GDP growth has been too low to meet the country's needs

Early 2004: Nicaragua secured some $4.5 billion in foreign debt reduction under the Heavily Indebted Poor Countries (HIPC) initiative

October 2007: the IMF approved a new poverty reduction and growth facility (PRGF) program that should allow for social spending and investment.

Energy shortages preventing growth

GDP: $16.17 billion (2007 est.)GDP growth rate:4%GDP per capita: $2,800

Industries: food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood

Agriculture: coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans; beef, veal, pork, poultry, dairy products

EnvironmentDestruction of NicaraguanA Pro to the Contra War

•Nicaraguan Institute for Natural Resources and Environment (Instituto de Recursos Naturales--Irena) in the 1980s•Conservation methods not permanent – soon fell to destructive power of Contra War

Environmental effortsConsequences of Increasing Poverty“Although in the 1990s Nicaragua's

tropical forests were less than 1 percent the size of the Amazon rain forest in Brazil, Nicaraguan rain forests were disappearing at a rate ten times faster than that of the Amazon. If that rate continues, the Nicaraguan rain forest will have disappeared by 2010.”

Development NeedsBetter class structure needed – more even

distribution of resourcesStable economy, social programs, industries,

foreign aid and governmentEconomic growth and social reformEnd of political unease – during times of

revolution, funds re-directed to national defenseNicaragua's economy saw sustained

improvements in stabilization and growth. Reducing poverty requires attention to growth

of the rural economy

Sources1. http://worldfacts.us/Nicaragua.htm2. http://www.acdi-cida.gc.ca/CIDAWEB/acdici

da.nsf/En/JUD-129124155-NRR3. http://countrystudies.us/nicaragua4. http://www.usaid.gov/policy/budget/cbj200

4/latin_america_caribbean/nicaragua.pdf5. http://lcweb2.loc.gov/cgi-bin/query/r?frd/cst

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