A land of poetry and revolution, lakes and volcanoes, war and peace.

	To the new generation of travelers, Nicaragua represents booming beach breaks, volcano hiking, island paradises and laid-back colonial towns. It seems that the message - 'the civil war finished decades ago people!' - has finally gotten across to a world who had the country pegged as a troublespot. Yet the iconic images of idealistic young people giving their lives for a dream of liberty endure, and Nicaragua remains a land where people, whatever their beliefs, tend to go beyond cheap chatter. A place of artists and poets, the country's people are an even greater asset than its natural splendor. Tourism in Nicaragua is booming, as word spreads about its hospitality and dazzling natural attractions. To the west are colonial cities connected by good paved roads, while in the east you'll find a vast wilderness that - a couple of golden Caribbean paradises apart - won't be touristy any time soon...   --Lonely Planet
	OFFICIAL NAME: Republic of Nicaragua GEOGRAPHY Area: 129,494 sq. km. (59,998 sq. mi.); slightly larger than New York State. Cities: Capital--Managua (pop. 1 million). Other cities--Leon, Granada, Jinotega, Matagalpa, Chinandega, Masaya. Terrain: Extensive Atlantic coastal plains rising to central interior mountains; narrow Pacific coastal plain interrupted by volcanoes. Climate: Tropical in lowlands; cooler in highlands. PEOPLE Nationality: Noun and adjective--Nicaraguan(s). Population (2005): 5.4 million. Annual growth rate (2005): 1.7%. Density--42 per sq. km. Ethnic Groups: Mestizo (mixed European and indigenous) 69%, white 17%, black (Jamaican origin) 9%, indigenous 5%. Religion: Predominantly Roman Catholic, with rapidly growing percentage of Evangelical Protestants. Languages: Spanish (official), English and indigenous languages on Caribbean coast. Education: Years compulsory--none enforced (28% of first graders eventually finish sixth grade). Literacy--67.5%. Health (2005): Life expectancy--70 yrs. Infant mortality rate--35.50/1,000. Work force (2004 est.): 1.9 million. WILDLIFE The wildlife of Nicaragua includes its flora and fauna. Nicaragua has a wide variety of wildlife, most of which live in wildlife reserves and live in rainforests, lakes, mountains, and volcanoes throughout the country. Bosawás covers 1.8 million acres (7,300 km²) making it the 2nd largest rainforest in the Americas after the Amazon Rainforest in Brazil and is extremely rich in Biodiversity. GOVERNMENT Type: Republic. Independence: 1821. Constitution: The 1987 Sandinista-era constitution was changed in 1995 to provide for a more even distribution of power among the four branches of government and again in 2000 to increase the Supreme Court and the Controller General's Office and to make changes to the electoral laws. Branches: Executive--president and vice president. Legislative--National Assembly (unicameral). Judicial--Supreme Court; subordinate appeals, district, and local courts; separate labor and administrative tribunals. Electoral--Supreme Electoral Council, responsible for organizing and holding elections. Administrative subdivisions: 15 departments and two autonomous regions on the Atlantic coast; 145 municipalities. Political parties: Sandinista National Liberation Front (FSLN); Nicaraguan Liberal Alliance (ALN); Liberal Constitutionalist Party (PLC); Sandinista Renewal Movement (MRS); Alternative for Change (AC). Suffrage: Universal at 16. ECONOMY GDP (2006): $5.37 billion. GDP real growth rate (2006): 3.7%. Per capita GDP (2006): $994. Inflation rate (2006): 9.45%. Natural resources: arable land, fresh water, fisheries, gold, timber hydro and geothermal power potential. Agriculture (17% of GDP): Products--corn, coffee, sugar, meat, rice, beans, bananas, beef, dairy. Industry (24% of GDP): Types--processed food, beverages, textiles, petroleum, and metal products. Services (52% of GDP): Types--banking, wholesale and retail distribution, telecommunications, and energy. Trade (2005 est.): Normal exports--$857 million (f.o.b.): coffee, seafood, beef, sugar, industrial goods, gold, bananas. Free trade zone exports--$682 million, mostly textiles and apparel, automobile wiring harnesses. Markets--Central American Common Market (CACM) 35%, U.S. 33%, European Union 14%, Mexico 4%, Japan 1%. Imports--$2.865 billion (c.i.f.): petroleum, agricultural inputs and equipment, manufactured goods. Suppliers--CACM 21%, U.S. 18%, EU 8%, Mexico 8%, Venezuela 6%, China 5%. For the 16 years between ...1991-2006...three successive Liberal Party administrations focused on free market reform as path to recovery from 12 years of economic free-fall under the Sandinista regime and civil war. During this 16-year period, characterized by steady GDP growth, the government made dramatic economic progress. It privatized more than 350 state enterprises, reduced inflation from 33,500% in 1988 to 9.45% in 2006, and cut the foreign debt by more than half. In 2006, the economy expanded by 3.7% as GDP reached $5.3 billion. Nonetheless, Nicaragua remains the second-poorest nation in the hemisphere. Unemployment is officially estimated at 5% of the economically active population; however, an estimated 60% of workers belong to the informal sector... Exports have been one of the key engines of economic growth. In 2006 exports topped $1 billion. Although traditional export products such as coffee, meat, and sugar continue to lead the list, shipments of non-traditional exports such as vegetables, tobacco products, gold, and free trade zone products (textiles and electrical harnesses) increased markedly in recent years. The U.S. is Nicaragua's largest trading partner, accounting for one-fifth of Nicaragua's imports and almost two-thirds of its total exports... Nicaragua is primarily an agricultural country, but light industry (maquila), tourism, banking, mining, fisheries, and general commerce are expanding. Foreign capital inflows reached $282.3 million in 2006... Tourism is the nation's third-largest source of foreign exchange. More than 60,000 Americans visit Nicaragua yearly, primarily business people, tourists, and Nicaraguan-Americans visiting relatives. An estimated 7,000 U.S. citizens reside in the country... Nicaragua faces a number of political and infrastructure challenges in achieving sustainable economic growth. Long-term success at attracting investment, creating jobs, and reducing poverty depend on its ability to comply with a new International Monetary Fund (IMF) program, resolve the thousands of Sandinista-era property confiscation cases, promote a positive investment climate, and keep its economy open to foreign trade...  There are 121 companies operating in Nicaragua associated with a U.S. firm, either as subsidiaries, franchises, or exclusive distributors. The largest are in the energy, financial services, apparel, manufacturing, and fisheries sectors.   PEOPLE Most Nicaraguans are of both European and Indian ancestry, and the culture of the country reflects the Ibero-European and Indian heritage of its people. Only the Indians of the eastern half of the country remain ethnically distinct and retain tribal customs and languages. A large black minority, of Jamaican origin, is concentrated on the Caribbean coast. In the mid-1980s, the central government divided the eastern half of the country--the former department of Zelaya--into two autonomous regions and granted the people of the region limited self-rule. Roman Catholicism is the major religion, but Evangelical Protestant groups have grown recently, and there are strong Anglican and Moravian communities on the Caribbean coast. Most Nicaraguans live in the Pacific lowlands and the adjacent interior highlands. The population is 58% urban. HISTORY Nicaragua takes its name from Nicarao, chief of the indigenous tribe that lived around present-day Lake Nicaragua during the late 1400s and early 1500s. In 1524, Hernandez de Cordoba founded the first Spanish permanent settlements in the region, including two of Nicaragua's principal towns: Granada on Lake Nicaragua, and Leon east of Lake Managua. Nicaragua gained independence from Spain in 1821, briefly becoming a part of the Mexican Empire and then a member of a federation of independent Central American provinces. In 1838, Nicaragua became an independent republic. During President Chamorro's nearly 7 years in office, (Nicaragua's) government achieved major progress toward consolidating democratic institutions, advancing national reconciliation, stabilizing the economy, privatizing state-owned enterprises, and reducing human rights violations. GOVERNMENT Nicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government. Freedom of speech is a right guaranteed by Nicaragua's constitution and vigorously exercised by its people. Diverse viewpoints are freely and openly discussed in the media and in academia. There is no state censorship in Nicaragua. Other constitutional freedoms include peaceful assembly and association, freedom of religion, and freedom of movement within the country, as well as foreign travel, emigration, and repatriation. The government also permits domestic and international human rights monitors to operate freely in Nicaragua. The constitution prohibits discrimination based on birth, nationality, political belief, race, gender, language, religion, opinion, national origin, and economic or social condition. All public and private sector workers, except the military and the police, are entitled to form and join unions of their own choosing, and they exercise this right extensively. Nearly half of Nicaragua's work force, including agricultural workers, is unionized. Workers have the right to strike. Collective bargaining is becoming more common in the private sector. FOREIGN RELATIONS The 1990 election victory of President Violeta Chamorro placed Nicaragua in the ranks of Latin American democracies. Nicaragua pursues an independent foreign policy. A participant of the Central American Security Commission (CASC), Nicaragua also has taken a leading role in pressing for regional demilitarization and peaceful settlement of disputes within states in the region... Nicaragua belongs to the United Nations and several specialized and related agencies, including the World Bank, the International Monetary Fund (IMF), World Trade Organization (WTO), UN Educational, Scientific, and Cultural Organization (UNESCO), World Health Organization (WHO), Food and Agriculture Organization (FAO), International Labor Organization (ILO), and UN Human Rights Commission (UNHRC). Nicaragua also is a member of the Organization of American States (OAS), the Non-aligned Movement (NAM), the International Atomic Energy Commission (IAEA), the Inter-American Development Bank (IDB), and the Central American Bank for Economic Integration (CABEI). U.S.-NICARAGUAN RELATIONS U.S. policy aims to continue supporting the consolidation of the democratic process initiated in Nicaragua with the 1990 election of President Chamorro... ...key U.S. policy goals for Nicaragua are: Improving respect for human rights and resolving outstanding high-profile human rights cases; Developing a free market economy with respect for property and intellectual property rights; Ensuring effective civilian control over defense and security policy; Increasing the effectiveness of Nicaragua's efforts to combat transborder crimes, including narcotics trafficking, money laundering, illegal alien smuggling, international terrorist and criminal organizations, and trafficking in persons; and Reforming the judicial system and implementing good governance. Since 1990, the United States has provided over $1.2 billion in assistance to Nicaragua... The Millennium Challenge Compact will reduce poverty and spur economic growth by funding projects in the regions of León and Chinandega aimed at reducing transportation costs and improving access to markets for rural communities; increasing wages and profits from farming and related enterprises in the region; and increasing investment by strengthening property rights.  FOR MORE DETAILED INFORMATION ON NICARAGUA SEE: http://www.state.gov/r/pa/ei/bgn/1850.htm