Nicaragua

WHILE THE REPUBLIC OF Nicaragua is the largest country in Central America, it is the most sparsely populated. Nicaragua won independence from Spain in 1821 and established itself as a republic in 1838. Over the next century, liberals and conservatives battled for [Page 771]power in Nicaragua. Civil war broke out in 1978 in response to accusations of government manipulation and corruption, and the Marxist Sandinista guerrilla forces gained power. The conservative U.S. administration supported the Sandinistas. When the U.S. Congress refused to fund aid to Nicaragua because of widespread human rights abuses, the Ronald Reagan administration allegedly sold arms to Iran to finance the Contras.

A series of free elections led to the eventual defeat of the Sandinistas, and Nicaragua began rebuilding its economy. A setback occurred in 1998, when Hurricane Mitch devastated the country at a human cost of 9,000 lives. Over two million people were left without homes, and damages were estimated at $10 billion. In response the United States established a temporary amnesty program to provide homes for thousands of refugees.

Economic progress in Nicaragua has been threatened by massive unemployment and substantial external debt. In 2004, Nicaragua was admitted to the Heavily Indebted Poor Countries program, which paved the way for a debt relief package of $4 billion. Negotiations are under way on a free-trade agreement with the United States. Nicaragua also has potential for economic growth through development of natural resources, which include gold, silver, copper, and lead.

With an annual per capita income of only $2,300, Nicaragua is the second poorest country in the Latin American/Caribbean region. The agricultural sector employs 30.5 percent of the labor force. More than half (52.3 percent) ofall workers are engaged in services, and 17.3 percent ofthe labor force are employed in industry. Currently employment is estimated at 7.8 percent, but 46.5 percent of the workforce are underemployed.

Half of the Nicaraguan population lives below the poverty line. Around 20 percent live in extreme poverty, and 40 percent live in unacceptable conditions. Nearly 80 percent of Nicaraguans live on less than $2 a day, and 45.1 percent live on less than $1 a day. One in three children is malnourished, and 29 percent of the total population are underweight. Women and children are disproportionately affected by poverty in Nicaragua, as are rural residents.

Approximately 28 percent of rural residents lack access to safe drinking water, and 30 percent have no access to improved sanitation. Resources are vastly unequal, with the richest 20 percent holding 59.7 percent of resources and the poorest 20 percent sharing only 3.6 percent. Nicaragua is ranked 55.1 percent on the Gini Index of Human Inequality.

Nicaragua's Enhanced Poverty Reduction and Growth Strategy plan focuses on social inclusion and economic growth. The Work-for-Food program pays participants in food rather than in wages, while other programs furnish job counseling and referrals. The Social Security Institute provides temporary financial support for maternity, illness, disability, and bereavement. Pensions are paid on a more permanent basis.

Most hospitals, health centers, and clinics are state-owned in Nicaragua, but many are at least partially privatized. Social Security and the Unified Health System are now separated. Even the poorest people have to pay for services and drugs in hospitals and clinics. There is a severe shortage of basic supplies and drugs, and Nicaragua has only 62 physicians for every 100,000 residents. Life expectancy in Nicaragua is 70.33 years. Females (72.49 years) outlive males (68.27) by around four years. The population of 5,465,100 has a median age of 20.56 years. Just over 37 percent of Nicaraguans are under the age of 14, and 3.1 percent have seen a 65th birthday. Overall 23 percent of Nicaraguans lack access to safe drinking water, and 15 percent lack access to improved sanitation. Because of its location on what is familiarly known as the Mosquito Coast, Nicaraguans in those areas face a high risk of contracting malaria.

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