Nicaragua is best known not for its landscape or cultural treasures, but for the 1979 Sandinista revolution and subsequent Contra war, in which the people rose up in hope only to be derailed by US-orchestrated interference. The Sandinistas are no longer in power and the prevailing economic ideology, dictated by the likes of the World Bank and the International Monetary Fund (IMF), involves widespread privatization and deregulation. This high-speed 'structural adjustment' has reduced inflation, provided ready cash for the business elite and left much of the rest of the country unemployed or in a state of sticker shock.

The good news is that throughout this period human rights have largely been respected and the country's battles are now confined to the political arena. Nicaragua is a fascinating destination for those travelers who shun seeing 'sights,' have an awareness of history and enjoy getting to know a country on a grassroots level.

Warning

Since the end of the civil war, armed criminal groups have operated out of the northern sectors of the country, especially along the Honduran border. Travelers visiting the border region should exercise a special measure of caution.

Full country name: Republic of Nicaragua
Area: 129,494 sq km (50,180 sq mi)
Population: 5.2 million (growth rate 2.6%)
Capital city: Managua (pop 1 million)
People: 69% mestizo, 17% European descent, 9% African descent, 5% indigenous peoples
Language: Spanish, English Creole, Miskito
Religion: Roman Catholic 73%, Protestant 16%
Government: Republic
President: Enrique Bolanos

GDP: US$2.2 billion
GDP per capita: US$452
Inflation: 11%
Major industries: Coffee, seafood, sugar, meat, bananas, food processing, chemicals, metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear
Major trading partners: Canada, Japan, Germany, Venezuela, USA, the rest of Central America