Political Rights: 3
Civil Liberties: 3
Status: Partly Free
Population: 5,500,000
GNI/Capita: $473
Life Expectancy: 69
Religious Groups: Roman Catholic (85 percent), other [including Protestant] (15 percent)
Ethnic Groups: Mestizo (69 percent), white (17 percent), black (9 percent), Amerindian (5 percent)
Capital: Managua


Overview

President Enrique Bolanos sparred with the Supreme Court and the judicial system in 2003 in an ongoing effort to reduce widespread corruption throughout the country. The protracted legal battle to bring former president Arnoldo Aleman to justice on corruption charges destabilized Nicaraguan politics during the year. Meanwhile, Nicaragua's economy continued to suffer from the lingering effects of the civil war of the 1980s, a recent hurricane, and a severe drought.

The Republic of Nicaragua was established in 1838, seventeen years after independence from Spain. Its history has been marked by internal strife and dictatorship. The authoritarian rule of the Somoza regime was overthrown in 1979 by the Sandinistas. Subsequently, the Sandinista National Liberation Front (FSLN) attempted to establish a Marxist government, which led to a civil war. The United States intervened indirectly, using Argentine military veterans of that country's "dirty war" on behalf on the right-wing irregular army known as the Contras. The FSLN finally agreed in 1987 to a new constitution that provides for a president and the 96-member National Assembly elected every six years.

In 1990, the newspaper publisher Violeta Chamorro easily defeated the incumbent, President Daniel Ortega, a Sandinista leader. Her 14-party National Opposition Union (UNO) won a legislative majority in the National Assembly. In February 1995, after passage of a law ensuring the military's autonomy, Humberto Ortega – Daniel's brother – turned over command of the military to General Joaquin Cuadra. The army was reduced from 90,000 to 15,000 troops, and former Contras were integrated into its ranks; however, the leadership remained essentially the same. The armed forces continued to own a profitable network of businesses and property amassed under the Sandinistas.

Chamorro was forbidden by law to seek a second term. The 1996 elections were held under the auspices of the five-member Supreme Electoral Council, an independent branch of government. During the campaign, Daniel Ortega portrayed himself as a moderate committed to national unity and reconciliation. Arnoldo Aleman ran on a platform that promised economic reforms, the dismantling of the Sandinista-era bureaucracy, the cleaning up of the army, and the return of property confiscated by the Sandinistas to its original owners. He defeated Ortega 51 to 38 percent, avoiding a runoff. President Aleman's first priority was to reform the army and the police. Aleman named a civilian minister of defense, and a new military code was adopted. The size of the National Police was reduced from 16,000 to 6,800.

In 1999, a governability pact was agreed to by Aleman's right-wing Liberal Constitutionalist Party (PLC) government and the opposition, led by Daniel Ortega. The reforms guaranteed Aleman a seat in both the Nicaraguan and the Central American parliaments, thus assuring him immunity from prosecution. Throughout his presidency, Aleman was dogged by charges that he enriched himself in office, although he never faced formal legal proceedings. In the November 4, 2001 elections, ruling Liberal Party candidate Enrique Bolanos, a conservative businessman respected for his personal integrity, defeated Daniel Ortega, 54 to 45 percent, in a bitterly fought contest in which the two major parties stacked the deck against smaller-party participation.

On January 10, 2002, Bolanos was sworn in as Nicaragua's third post-Sandinista-era president, with a mandate to tackle widespread and systemic corruption, fraud, and incompetence throughout government. One of the major challenges has become the confrontation with former president Arnoldo Aleman, who, along with family members and cronies, is accused of having stolen $100 million. Aleman, as president of the National Assembly, had immunity from criminal prosecution, and this status was seen by many as an example of the widespread impunity of officials that makes a mockery of justice. The protracted effort to indict, prosecute, and convict Aleman for fraud and embezzlement exposed the weakness of the legal system in resisting political pressure, although the system ultimately worked as it was supposed to. Different appeals, including a regional one, were exhausted, and Aleman was convicted of money laundering; additional charges are pending.

The government of Bolanos also faces major economic challenges. Nicaragua is the poorest country in Central America and the second-poorest in the Western Hemisphere. Income distribution in Nicaragua is among the most unequal in the world. Up to 50 percent of the population is unemployed or underemployed. Although the civil war of the 1980s is over, the legacies of that conflict have proven difficult to overcome. This is especially true in terms of the ravaged infrastructure, which was also hit hard by Hurricane Mitch in 1998. A severe drought has further affected the ability of a third of the population to consume even the basic nutritional requirement of 2,200 calories a day. In August 2003, the World Food Programme concluded "that out of a population of 5.4 million, more than 1.6 million are malnourished, with 680,201 enduring 'very high food insecurity', and 947,463 facing 'high' insecurity." The same report noted that, in a country without a famine, 16 people died of hunger in the northern region of Matagalpa in 2002.

The offer to send troops in support of U.S. actions in Iraq was somewhat of a surprise, and was seen as a result of pressure from Washington, D.C. Nevertheless, the road to rapprochement had been cultivated for some time. Popular support for the troop deployment was limited.

Political Rights and Civil Liberties

Nicaraguans can change their government democratically. Political and civic activities continue to be conditioned on occasional political violence, corruption, and drug-related crime. Nicaragua was ranked 88 out of 133 countries in Transparency International's 2003 Corruption Perceptions Index.

The print media are varied and partisan, representing hard line and moderate Sandinista, as well as pro- and anti-government, positions. Before leaving office, the Sandinistas privatized the national radio system, mostly to Sandinista loyalists. There are five television stations, three of which carry news programming with partisan political content. Media outlets covering government corruption have been intimidated and/or closed by the government. There is free access to the Internet.

Freedom of religion is respected, and academic freedom is generally honored.

Nongovernmental organizations are active and operate freely. As a whole, civic society has blossomed in the post-Sandinista era. Labor rights are complicated by the Sandinistas' use of unions as violent instruments to influence government economic policy. By means of the public sector unions, the Sandinistas have managed to gain ownership of more than three dozen privatized state enterprises. The legal rights of non-Sandinista unions are not fully guaranteed. The Ministry of Labor has declared strikes illegal. Citizens have no effective recourse when labor laws are violated either by the government or by violent Sandinista actions. Child labor is also a problem.

The judiciary is independent but continues to be susceptible to political influ ence and corruption. Large case backlogs, long delays in trials, and lengthy pretrial detention have caused the Supreme Court and National Assembly to initiate comprehensive structural reforms of the judicial system.

The Ministry of Government oversees the National Police, the agency that is formally charged with internal security; in practice, the police share this responsibility with the army in rural areas. The conduct of security forces, reflecting enhanced civilian control, continues to improve, although abuses of human rights still occur. Forced confessions to the police remain a problem, as do cases in which security forces arbitrarily arrest and detain citizens. Prison and police holding-cell conditions are poor.

Violent crime is increasing in Managua and other major Nicaraguan cities, although the country remains relatively tranquil compared with some of its Central American neighbors. With long coastlines on both the Atlantic and Pacific, a high volume of land cargo, and myriad jungle airstrips, Nicaragua is an important transshipment point for drugs making their way to the north from South America. The Pan-American Highway in Nicaragua's southwest region is a primary venue for narcotics traffickers, although smuggling by air is increasing and small aircraft are occasionally commandeered by traffickers for flights to other countries. The growing level of exposure of Nicaraguan society to the drug trade is evidenced by the significant increase in the local use of cocaine.

Like most Latin American countries, Nicaragua nominally recognizes the rights of its indigenous communities in its constitution and laws, but in practice those rights have not been respected. Approximately 5 percent of the population is indigenous and lives mostly in the Northern Autonomous Atlantic Region (RAAN) and Southern Autonomous Atlantic Region (RAAS). These regions are 50 percent of the national territory, but account for only 10 percent of the population. The largest community is that of the Miskito, with 180,000 people, and the smallest is the Rama, with 1,000; there are 10,000 Sumo and 3,000 Garifuna. The 2001 ruling of the Inter-American Commission for Human Rights over logging rights in favor of these communities has not been fully implemented, although the legislation has been passed. In July 2003, the National Assembly finally approved the codification of the 1987 Autonomy Law that created these areas.

Violence against women, including rape and domestic abuse, remains a serious problem.

Trend Arrow

Nicaragua received a downward trend arrow due to failing government reforms to combat widespread corruption and extend basic legal protection beyond major urban areas.

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