Nicaragua

1. Nicaragua By: Tom Tokmenko

2. Capital, Famous Cities, and Language • Ethnic groups: • mestizo (mixed Amerindian and white) 69%, white 17%, black 9%, Amerindian 5% • Languages: • Spanish 97.5% (official), Miskito 1.7%, other 0.8% (1995 census) • Top LargestCities: • Granada is considered the oldest city in Central America, founded around 1524 and contiuously inhabited. It has seen battles, wars, and attempted power grabs throughout centuries. It is located in the department of Granada and is the capital city of this department. The Lago de Cocibolca or Nicaragua borders the city and is a hugely popular destination for locals and tourists alike. • León is a larger city that lies to the northwest of Managua in the department of León, close to the Pacific coast. The present location is not the original location of the city, which lies east and was destroyed by Momotombo volcano. • Managua is the capital city of Nicaragua as well as the department and municipality by the same name. It is also the largest city in Nicaragua at nearly two million people and is a bit of a sprawling metropolis. Plenty of fine dining lies around the city and a wide variety of hotels and hostels are available. Since the international airport is located outside of Managua, many people will stay for a night or two but there are really not tons of sites in the city itself. Luckily, it is very close to Leon, Granada and other more interesting locations.

3. Economy and Currency • Nicaragua, the poorest country in Central America, has widespread underemployment and poverty. GDP fell by almost 3% in 2009, due to decreased export demand in the US and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth - remittances are equivalent to almost 15% of GDP. • The US-Central America Free Trade Agreement (CAFTA) has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. • Textiles and apparel account for nearly 60% of Nicaragua's exports, but increases in the minimum wage during the ORTEGA administration will likely erode its comparative advantage in this industry. Nicaragua relies on international economic assistance to meet internal- and external-debt financing obligations. F • oreign donors have curtailed this funding, however, in response to November 2008 electoral fraud. In early 2004, Nicaragua secured some $4.5 billion in foreign debt reduction under the Heavily Indebted Poor Countries (HIPC) initiative, and in October 2007, the IMF approved a new poverty reduction and growth facility (PRGF) program.

4. Exports • Exports from Nicaragua amounted to $1.55 billion f.o.b. in 2005. This amount includes the free trade zones. In 2004, 79 783 metric tons of green coffee were exported from Nicaragua at a value of 126 773 (000 US$). Coffee makes up the largest portion of Nicaragua's exports and employs over 100 000 Nicaraguans • $2.387 billion (2009 est.) • country comparison to the world: $2.538 billion (2008 est.) • coffee, beef, shrimp and lobster, tobacco, sugar, gold, peanuts; textiles and apparel • Partners: US 61.98%, El Salvador 7.74%, Costa Rica 3.67% (2009)

5. Imports • $3.927 billion (2009 est.) • country comparison to the world: $4.749 billion (2008 est.) • consumer goods, machinery and equipment, raw materials, petroleum products • Partners: US 22.63%, Venezuela 12.27%, Mexico 9.05%, Costa Rica 8.66%, China 7.16%, Guatemala 6.59%, El Salvador 5.63% (2009) • With the assistance of trade agreements and other efforts, the export of Nicaraguan products and raw materials is sure to improve in the future. It is hoped that, along with the increase in exports from Nicaragua, there will also be an improvement of the economy in general and a decrease in unemployment

6. Population and Employment • Labor force: • 2.283 million (2009 est.) • country comparison to the world: 114 Labor force - by occupation: • agriculture: 29% • industry: 19% • services: 52% (2006 est.) • Unemployment rate: • 8.2% (2009 est.) • country comparison to the world: 94 6.1% (2008 est.) • note: underemployment was 46.5% in 2008 • Population below poverty line: • 48% (2005)

7. Corporations • Agricultural Output: • coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans; beef, veal, pork, poultry, dairy products; shrimp, lobsters • Industries: • food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood • Industrial production growth rate: • -2.8% (2009 est.) • country comparison to the world: 95th

8. Political Conditions and Presidents • Chief of state: President Daniel ORTEGA Saavedra (since 10 January 2007); Vice President Jaime MORALES Carazo (since 10 January 2007); note - the president is both chief of state and head of government • Head of government: President Daniel ORTEGA Saavedra (since 10 January 2007 • Constitution: • 9 January 1987; revised in 1995, 2000, and 2005 • Legal system: • Republic/civil law system; Supreme Court may review administrative acts; accepts compulsory ICJ jurisdiction with reservations

9. Culture and Business Today • Business in Nicaragua may not yet be quite at the same standard as it is in other countries, but the economy is growing at a steady rate. • Most major business is conducted in the bigger cities, but that does not mean to say you cannot set up a business in the smaller towns. • Many of the people are unemployed or earn low wages and thus the establishment of new businesses – especially ones that plan to make use of personnel – is encouraged.

10. Current Events • The country received an enormous show of support from the international community in 2004 when the IMF and World Bank forgave $4.5 billion of Nicaragua's debt. In April 2006, a free-trade agreement with the U.S. (CAFTA) went into effect. • Former Sandinista president Daniel Ortega won the Nov. 2006 presidential election with 38% of the vote and took office in Jan. 2007. • On March 7, 2008, during a summit meeting in the Dominican Republic, the leaders of Colombia, Ecuador, Venezuela, and Nicaragua ended their diplomatic dispute over Colombia's raid into Ecuador that occurred on March 1, 2008.

11. Sources • https://www.cia.gov/library/publications/the-world-factbook/geos/nu.html • www.worldtimeserver.com/current_time_in_NI.aspx • http://www.indexmundi.com/nicaragua/current_account_balance.html