Nicaragua gained independence from Spain in 1821 and became a republic in 1838. It experienced periods of foreign occupation and internal conflict throughout the 19th century. In the late 1970s, Marxist Sandinistas came to power but were opposed by US-backed Contras in the 1980s. Free elections returned power to other groups in the 1990s and 2000s. Nicaragua has the third lowest per capita income in Latin America with widespread poverty and underemployment. The economy relies on agriculture but also faces energy shortages hampering growth. Deforestation is a major environmental concern as Nicaragua's rainforests are disappearing ten times faster than the Amazon rainforest. Development needs include economic growth, social programs,
2. Political History
Settled 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,
3. 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
4. Economy
Nicaragua 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
5. 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
6. 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, co
rn, tobacco, sesame, soya, beans;
beef, veal, pork, poultry, dairy products
7. Environment
Destruction of Nicaraguan
A 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
8. Environmental efforts
Consequences 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.”
9. Development Needs
Better class structure needed – more even
distribution of resources
Stable economy, social programs,
industries, foreign aid and government
Economic growth and social reform
End of political unease – during times of
revolution, funds re-directed to national
defense
Nicaragua's economy saw sustained
improvements in stabilization and growth.
Reducing poverty requires attention to
growth of the rural economy
