Nicaragua takes its name from Nicarao, the chief of the indigenous tribe from
the area around present-day Lake Nicaragua. 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 part of the
Mexican Empire and then a member of a federation of independent Central American
provinces. In 1838, Nicaragua became an independent republic.
Nicaraguan politics since independence have been characterized by the rivalry
between the Liberal elite of Leon and the Conservative elite of Granada, a rivalry
that often spilled into civil war. Initially invited by the Liberals in 1855
to join their struggle against the Conservatives, an American named William
Walker and his "filibusters" seized the presidency in 1856. The Liberals
and Conservatives united to drive him out of office in 1857, after which a period
of three decades of Conservative rule ensued.
Taking advantage of divisions within the Conservative ranks, Jose Santos Zelaya
led a Liberal revolt that brought him to power in 1893. Zelaya ended the long-standing
dispute with Britain over the Atlantic coast in 1894, and reincorporated that
region into Nicaragua.
Differences arose between the United States and Nicaragua concerning an isthmian
canal and concessions to Americans in Nicaragua. In 1909, the United States
provided political support to Conservative-led forces rebelling against President
Zelaya and intervened militarily. Zelaya resigned later that year.
With the exception of a nine-month period in 1925-26, the United States maintained
troops in Nicaragua from 1912 until 1933. From 1927--1933, U.S. Marines stationed
in Nicaragua engaged in a running battle with rebel forces led by Liberal general
Augusto Sandino, who rejected a 1927 negotiated agreement brokered by the United
States to end the latest round of fighting between Liberals and Conservatives.
After the departure of U.S. troops, National Guard Commander, Anastasio Somoza
Garcia, outmaneuvered his political opponents, including Sandino, who was assassinated
by National Guard officers and took over the presidency in 1936. Somoza and
his two sons who succeeded him maintained close ties with the U.S. The Somoza
dynasty ended in 1979 with a massive uprising led by the Sandinista National
Liberation Front (FSLN), which began conducting a low-level guerrilla war against
the Somoza regime since the early 1960s.
Nicaraguan - U.S. relations deteriorated rapidly as the new FSLN regime nationalized
many private industries, confiscated private property, supported Central American
guerrilla movements, and maintained links to international terrorists. As such,
the United States suspended aid to Nicaragua in 1981. The Reagan administration
provided assistance to the Nicaraguan resistance (called the "Contras")
and in 1985 imposed an embargo on U.S. - Nicaraguan trade.
In response to both domestic and international pressure, the Sandinista regime,
under the leadership of Daniel Ortega, entered into negotiations with the Nicaraguan
Resistance and agreed to nationwide elections in February 1990. In these elections,
which were proclaimed free and fair by international observers, Nicaraguan voters
elected the candidate of the National Opposition Union (UNO), Violeta Barrios
de Chamorro, president.
During President Chamorro's nearly seven years in office, her government
achieved major progress toward consolidating democratic institutions, advancing
national reconciliation, stabilizing the economy, privatizing state-owned enterprises
and reducing human rights violations.
Chamorro’s government came under fire from opposition forces for reconciling
with the FSLN and for retaining Daniel Ortega’s brother, Humberto Ortega, as
Commander of the Armed Forces. Led by conservative Godoy Reyes, the opposition
bloc criticized Chamorro’s relations with the Sandinistas stating it was "immoral."
The situation was not alleviated when, in 1993, a Sandinista uprising occurred
in the town of Esteli. Following this episode, the Contras took 42 hostages
in the nearby town of El Zungana. Although the hostages were released, the events
led Chamorro to reverse her policy of integration.
In February 1995, Sandinista Popular Army (EPS) Commander General Humberto Ortega
was replaced, in accordance with a new Military Code. General Joaquin Cuadra,
who espoused a policy of greater professionalism in the renamed Army of Nicaragua,
enacted the Military Code in 1994. In addition, a new police organization law,
which was passed by the National Assembly and signed into law in August 1996,
further codified civilian control of the police.
A number of irregularities, due largely to logistical difficulties and a complicated
electoral law hindered the elections. However, the Oct. 20, 1996 presidential,
legislative and mayoral elections were also judged free and fair by international
observers and by the newly established national electoral observer group "Etica
y Transparencia" (Ethics and Transparency). Nicaraguans elected former Managua
Mayor Arnoldo Alemán, leader of the center-right Liberal Alliance, president.
Seventy-six percent of Nicaragua's 2.4 million eligible voters participated
in the elections. On Jan. 10, 997, Nicaragua witnessed the first transfer of
power in recent Nicaraguan history from one democratically elected president
to another when the Alemán government was inaugurated.