NICARAGUA

Compiled from the December 2003 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Nicaragua

PROFILE
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
FOREIGN RELATIONS
U.S.-NICARAGUAN RELATIONS
TRAVEL

PROFILE

Geography

Area: 130,688 sq. km. (50,446 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: (2001 est.) 4.91 million.

Annual growth rate: (est.) 2.15%. Density—33 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% first graders eventually finish sixth grade). Literacy—75%.

Health: Life expectancy—62 yrs. Infant mortality rate—50/1,000.

Work force: (1999) 1.7 million. Unemployed—20%; under employed—36%.

Government

Type: Republic.

Independence: 1821.

Constitution: The 1987 Sandinistaera 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.

Major political parties: Liberal Constitutionalist Party (PLC); Sandinista National Liberation Front (FSLN). Other political parties; Conservative Party (PC); National Resistance Party (PRN); Camino Cristiano. Regional parties in the Atlantic Coast include YATAMA and PMUC.

Suffrage: Universal at 16.

Economy

GDP: (2001) $2.4 billion (PPP 12.3 billion).

Annual growth rate: (2001 est.) 2.5%.

Per capita GDP: (2001 est.) $470.

Inflation rate: (2001 est.) 8%.

Natural resources: Arable land, livestock, fisheries, gold, timber.

Agriculture: (31% of GDP) Products—corn, coffee, sugar, meat, rice, beans, bananas.

Industry: (23% of GDP) Types—processed food, beverages, textiles, petroleum, and metal products.

Services: (45% of GDP) Types—commerce, construction, government, banking, transportation, and energy.

Trade: (2001)Exports—$640 million (f.o.b.) coffee, seafood, beef, sugar, industrial goods, gold, bananas, sesame. Markets—U.S. 43%, European Union 33%, Central American Common Market (CACM) 17%, Mexico 2%. Imports—$1.7 billion (f.o.b. 2001) petroleum, agricultural supplies, manufactured goods. Suppliers —U.S. 32%, CACM 21%, Venezuela 11%, European Union 9%.

PEOPLE

Most Nicaraguans have 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.

The 1995 constitutional reform guaranteed the integrity of the regions' several unique cultures and gave the inhabitants a say in the use of the area's natural resources. 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 54% urban.

HISTORY

Nicaragua takes its name from Nicarao, chief of the indigenous tribe then living around present-day Lake Nicaragua. In 1524, Hernandez de Cordoba founded the first Spanish permanent settlements in the region, including two of Nicaragua's two 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.

Much of Nicaragua's politics since independence has been characterized by the rivalry between the Liberal elite of Leon and the Conservative elite of Granada, which 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 longstanding dispute with Britain over the Atlantic Coast in 1894, and reincorporated that region into Nicaragua. However, due to differences over an isthmian canal and concessions to Americans in Nicaragua as well as a concern for what was perceived as Nicaragua's destabilizing influence in the region, in 1909 the United States provided political support to Conservative-led forces rebelling against President Zelaya and intervened militarily to protect American lives and property. Zelaya resigned later that year. With the exception of a 9-month period in 1925-26, the United States maintained troops in Nicaragua from 1912 until 1933. From 1927 until 1933, U.S. Marines stationed in Nicaragua engaged in a running battle with rebel forces led by renegade Liberal Gen. 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 Cmdr. Anastasio Somoza Garcia out-maneuvered his political opponents, including Sandino who was assassinated by National Guard officers, and took over the presidency in 1936. Somoza, and two sons who succeeded him, maintained close ties with the United States. The Somoza dynasty ended in 1979 with a massive uprising led by the Sandinista National Liberation Front (FSLN), which, since the early 1960s, had conducted a lowscale guerrilla war against the Somoza regime.

The FSLN established an authoritarian dictatorship soon after taking power. U.S.-Nicaraguan relations deteriorated rapidly as the regime nationalized many private industries, confiscated private property, supported Central American guerrilla movements, and maintained links to international terrorists. The United States suspended aid to Nicaragua in 1981. The Reagan administration provided assistance to the Nicaraguan Resistance and in 1985 imposed an embargo on U.S.-Nicaraguan trade.

In response to both domestic and international pressure, the Sandinista regime 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 as their president the candidate of the National Opposition Union, Violeta Barrios de Chamorro.

During President Chamorro's nearly 7 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. In February 1995, Sandinista Popular Army Cmdr. Gen. Humberto Ortega was replaced, in accordance with a new military code enacted in 1994 by Gen. Joaquin Cuadra, who espoused a policy of greater professionalism in the renamed Army of Nicaragua. A new police organization law, passed by the National Assembly and signed into law in August 1996, further codified both civilian control of the police and the professionalization of that law enforcement agency. The October 20, 1996 presidential, legislative, and mayoral elections also were judged free and fair by international observers and by the groundbreaking national electoral observer group Eticay Transparencia (Ethics and Transparency) despite a number of irregularities, due largely to logistical difficulties and a baroquely complicated electoral law. This time Nicaraguans elected former-Managua Mayor Arnoldo Aleman, leader of the center-right Liberal Alliance. The first transfer of power in recent Nicaraguan


history from one democratically elected president to another took place on January 10, 1997, when the Aleman government was inaugurated.

In November 2000, Nicaragua held municipal elections—the country's third free and fair election since 1990. President Aleman's Liberal Constitutionalist Party (PLC) won a majority of the overall mayoral races, but the FSLN fared considerably better in larger urban areas, winning a significant number of departmental capitals, including Managua. Presidential and legislative elections were held in November 2001.

Enrique Bolaños of the Liberal Constitutionalist Party (PLC) was inaugurated on January 10, 2002. He was elected to the Nicaraguan presidency on November 4, 2001, defeating the FSLN candidate Daniel Ortega, by 14 percentage points. The elections, characterized by international observers as free, fair and peaceful, reflected the maturing of Nicaragua's democratic institutions. During his campaign President-elect Bolaños promised to reinvigorate the economy, create jobs, fight corruption, and support the war against terrorism.

GOVERNMENT AND POLITICAL CONDITIONS

Nicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government. In 1995, the executive and legislative branches negotiated a reform of the 1987 Sandinista constitution which gave impressive new powers and independence to the legislature—the National Assembly—including permitting the Assembly to override a presidential veto with a simple majority vote and eliminating the president's ability to pocket veto a bill. Both the president and the members of the unicameral National Assembly are elected to concurrent 5-year terms. The National Assembly consists of 90 deputies elected from party lists drawn at the department and national level, plus the defeated presidential candidates who obtained a minimal quotient of votes. In the 1996 elections, the Liberal Alliance won a plurality of 42 seats, the FSLN won 36 seats, and nine other political parties and alliances won the remaining 15 seats. In the 2001 elections, the Liberal Party won 53 seats, the FSLN 38 seats, and the Conservative Party 1 seat.

The Supreme Court supervises the functioning of the still largely ineffective and overburdened judicial system. As part of the 1995 constitutional reforms, the independence of the Supreme Court was strengthened by increasing the number of magistrates from 9 to 12. In 2000, the number or Supreme Court Justices was increased to 16. Supreme Court justices are elected to 7-year terms by the National Assembly. Led by a council of seven magistrates, the Supreme Electoral Council (CSE) is the co-equal branch of government responsible for organizing and conducting elections, plebiscites, and referendums. The magistrates and their alternates are elected to 5-year terms by the National Assembly. Constitutional changes in 2000 expanded the number of CSE magistrates from five to seven and gave the PLC and the FSLN a freer hand to name party activists to the Council, prompting allegations that both parties were politicizing electoral institutions and processes and excluding smaller political parties.

Freedom of speech is a right guaranteed by the Nicaraguan 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.

Political Parties

Though 35 political parties participated in the 1996 elections, under new, more restrictive electoral laws passed in 2000, only three parties participated in the 2001 national elections—the PLC, the FSLN, and the PC. As a result of those elections, of the 92 seats in the National Assembly, 53 are held by the PLC, 38 by the FSLN, and 1 by the PC.

Principal Government Officials
Last Updated: 1/8/04

President: Bolanos, Enrique

Vice President: Rizo, Jose

Min. of Agriculture & Forestry: Navarro, Jose Augusto "Tuto"

Min. of Defense: Guerra, Jose Adan

Min. of Education, Culture, & Sports: De Franco, Silvio, Dr.

Min. of Environment & Natural Resources: Harding, Arturo

Min. of Family: Largaespada, Carmen Min. of Finance & Public Credit: Montealegre, Eduardo

Min. of Foreign Affairs: Caldera, Norman

Min. of Government: Vega, Julio, Dr.

Min. of Health: Alvarado, Jose Antonio

Min. of Industry, Development, & Trade: Arana, Mario

Min. of Labor: Gurdian, Virgilio

Min. of Tourism: De Robelo, Lucia Salazar C.

Min. of Transportation & Infrastructure: Solorzano, Pedro

Attorney General: Talavera, Victor Manuel

Prosecutor General: Centeno, Julio

Pres., Central Bank: Alonso, Mario

Ambassador to the US: Stadthagen, Salvador

Permanent Representative to the UN, New York: Sevilla Somoza, Eduardo

Nicaragua maintains an embassy in the United States at 1627 New Hampshire Avenue, NW, Washington, DC 20009 (tel. 202-387-4371).

ECONOMY

Nicaragua began free market reforms in 1991 after 12 years of economic free-fall under the Sandinista regime. Despite some setbacks, it has made dramatic progress: privatizing more than 350 state enterprises, reducing inflation from 13,500% to 8%, and cutting the foreign debt in half. The economy began expanding in 1994 and grew 2.5% in 2001, with overall GDP reaching 2.44 million in 2001. In 2001, the global recession, combined with a series of bank failures, low coffee prices, and a drought, caused the economy to retract.

Nicaragua remains the second-poorest nation in the hemisphere with a per capita GDP of less than $500—below where it stood before the Sandinista takeover in 1979. Unemployment is officially around 11%, and another 36% are underemployed. Nicaragua suffers from persistent trade and budget deficits and a high debt-service burden, leaving it highly dependent on foreign assistance—as much as 25% of GDP in 2001.

One of the key engines of economic growth has been production for export. Exports were 640 million in 2001. Although traditional products such as coffee, meat, and sugar continued to lead the list of Nicaraguan exports, the fastest growth is now in nontraditional exports: maquila goods (apparel); gold; seafood; and new agricultural products such as peanuts, sesame, melons, and onions. Nicaragua also depends heavily on remittances from Nicaraguans living abroad.

Nicaragua is primarily an agricultural country, but construction, mining, fisheries, and general commerce also have been expanding during the last few years. Foreign private capital inflows topped $300 million in 1999 but, due to economic and political uncertainty, fell to less than $100 million in 2001.

Rapid expansion of the tourist industry has made it the nation's third-largest source of foreign exchange. Some 60,000 Americans visit Nicaragua yearly—primarily business people, tourists, and those visiting relatives. An estimated 5,300 U.S. citizens reside in the country. The U.S. embassy's consular section provides a full range of consular services—from passport replacement and veteran's assistance to prison visitation and repatriation assistance.

Nicaragua faces a number of challenges in stimulating rapid economic growth. Long-term success at attracting investment, creating jobs, and reducing poverty depend on its ability to comply with an International Monetary Fund (IMF) program, resolve the thousands of Sandinista-era property confiscation cases, and open its economy to foreign trade. This process was boosted in late 2000 when Nicaragua reached the decision point under the Heavily Indebted Poor Countries (HIPC) debt relief initiative. However, HIPC benefits will be delayed because Nicaragua subsequently fell "off track" from its IMF program. The country also has been grappling with a string of bank failures that began in August 2000. Moreover, Nicaragua continues to lose international reserves due to its growing fiscal deficits.

The United States is the country's largest trading partner by far—the source of 25% of Nicaragua's imports and the destination of about 60% of its exports. About 25 wholly or partly owned subsidiaries of U.S. companies operate in Nicaragua. The largest of those investments are in the energy, communications, manufacturing, fisheries, and shrimp farming sectors. Good opportunities exist for further investments in those same sectors, as well as in tourism, mining, franchising, and the distribution of imported consumer, manufacturing, and agricultural goods.

The U.S. embassy's Economic/Commercial Section advances American economic and business interests by briefing U.S. firms on opportunities and stumbling blocks to trade and investment in Nicaragua; encouraging key Nicaraguan decision makers to work with American firms; helping to resolve problems that affect U.S. commercial interests; and working to change local economic and trade ground rules in order to afford U.S. firms a level playing field on which to compete. U.S. businesses may access key embassy economic reports via the mission's Internet home page at.

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. President Chamorro was instrumental in obtaining considerable international assistance for her government's efforts to improve living conditions for Nicaraguans—the country is one of the poorest in the Western Hemisphere. Her administration also negotiated substantial reductions in the country's foreign debt burden. 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 has submitted two territorial disputes—one with Honduras and the other with Colombia—to the International Court at The Hague for resolution.

Nicaragua and Costa Rica also dispute jurisdiction over the Rio San Juan, which delimits the boundary between the two countries. At the 1994 Summit of the Americas, Nicaragua joined six Central American neighbors in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA or CONCAUSA, to promote sustainable economic development 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 the UN Human Rights Commission (UNHRC). Nicaragua also is a member of the Organization of American States (OAS), the Non-aligned Movement (NAM), International Atomic Energy Commission (IAEA), the Inter-American Development Bank (IDB), the Central American Common Market (CACM), and the Central America 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. The United States has promoted national reconciliation, encouraging Nicaraguans to resolve their problems through dialogue and compromise. It recognizes as legitimate all political forces that abide by the democratic process and eschew violence. U.S. assistance is focused on strengthening democratic institutions, stimulating sustainable economic growth, and supporting the health and basic education sectors.

The resolution of U.S. citizen claims arising from Sandinista-era confiscations and expropriations still figure prominently in bilateral policy concerns. Section 527 of the Foreign Relations Authorization Act (1994) prohibits certain U.S. assistance and support for a government of a country that has confiscated U.S. citizen property, unless the government has taken certain remedial steps. In July 2001, the Secretary of State issued an eighth annual national interest waiver of the Section 527 prohibition because of Nicaragua's record in resolving U.S. citizen claims as well as its overall progress in implementing political and economic reforms.

Other 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, illegal alien smuggling, international terrorist and criminal organizations; and
• Reforming the judicial system and implementing good governance.

Since 1990, the United States has provided $1.2 billion in assistance to Nicaragua. About $260 million of that was for debt relief, and another $450 million was for balance-of-payments support. The U.S. also provided $93 million in 1999, 2000, and 2001 as part of its overall response to Hurricane Mitch. Aside from funding for Mitch reconstruction, the levels of assistance have fallen incrementally to reflect the improvements in Nicaragua. FY 2000 assistance was $25 million and FY 2001 amounted to about the same. This assistance was focused on promoting more citizen political participation, compromise, and government transparency; stimulating sustainable growth and income; and fostering better-educated and healthier families. In 2001, the United States provided a total of $6.2 million to the Supreme Electoral Council and to a wide range of nongovernmental organizations to ensure free, fair, and transparent elections.

Principal U.S. Embassy Officials

Managua (E), Km. 4 1/2 Carretera Sur. • APO AA 34021, Tel [505] 266-6010, 266-2298, 266-6013; AMB Fax 266-9074; ADM Fax 266-3865; GSO Fax 266-6046; CON Fax 266-9943, POL Fax 266-9942; DAO Fax 266-8022; ECO/COM Fax 266-9056; PD Fax 266-3861; AGR Fax 266-7006; APHIS Tel [505] 278-5967, Fax 278-5968; AID Tel [505] 267-0502, Fax 278-3828. Internet:www.usembassy.state.gov/managua. Intranet: webmanagua.managua.state.gov.

Last Modified: Monday, December 15, 2003

Other Contact Information

U.S. Department of Commerce
International Trade Administration
Trade Information Center
14th and Constitution, NW
Washington, DC 20230
Tel: 1-800-USA-TRADE

American Chamber of Commerce in Nicaragua
Apartado Postal 202
Managua, Nicaragua
Tel: (5052) 67-30-99
Fax: (5052) 67-30-98

Caribbean/Latin American Action
1818 N Street, NW, Suite 310
Washington, DC 20036
Tel: 202-466-7464
Fax: 202-822-0075

TRAVEL

Consular Information Sheet
January 5, 2004

Country Description: Nicaragua is a young democracy with a developing economy. The national language is Spanish, yet most residents of the Caribbean coastal areas speak English, as well. The climate is generally hot and humid with dry and rainy seasons. Terrain ranges from the hilly and volcanic to coastal beaches and tropical jungles. Many foreign governments and relief organizations provide economic assistance to Nicaragua and numerous individuals (official and non-official) from the U.S. and the rest of the developed world work on community-based projects both in Managua and in the rural areas. Violent crime has not been a historical problem, yet criminal enterprises appear to be growing in organization as economic development in Nicaragua moves forward. The judicial system is corrupt and politically influenced.

The promotion of tourism is a top government priority yet Nicaragua lacks an extensive tourist infrastructure. Potential tourists may want to obtain information from INTUR, the governmental agency responsible for developing, regulating and promoting tourism in Nicaragua. INTUR's web-site is www.intur.gob.ni and offers some information in English.

Entry and Exit Requirements: A valid U.S. passport is required to enter Nicaragua. U.S. citizens must have an onward or return ticket and evidence of sufficient funds to support themselves during their stay. Tourist card fees and airport departure taxes must be paid in U.S. dollars. A visa is not required for U.S. citizens; however, a tourist card must be purchased ($5.00) upon arrival. Tourist cards are typically issued for 30 to 90 days. Pay attention to the authorized stay that will be written into your entry stamp by the immigration inspector. Visitors remaining more than the authorized time must obtain an extension from Nicaraguan Immigration. Failure to do so prevents departure until a fine is paid.

A valid entry stamp is required to exit Nicaragua. The departure tax is currently $32. For further information regarding entry, departure, and customs requirements, travelers should contact the Embassy of Nicaragua at 1627 New Hampshire Avenue, NW, Washington D.C. 20009; telephone (202) 939-6570 or (202) 939-6531; or a Nicaraguan consulate in Houston, Los Angeles, Miami, New Orleans, New York, San Francisco, or San Juan, Puerto Rico. A useful web-site for finding information on the Nicaraguan Embassy and Consulates is www.cancilleria.gob.ni.

Dual Nationality: The constitution of Nicaragua permits dual nationality. Dual citizens can enter and depart Nicaragua using either their U.S. or Nicaraguan passport. However, dual citizens entering on U.S. passports must obtain appropriate tourist/residence permits and any appropriate extensions. Parents should not rely on birth certificates for travel of their children; rather, they should obtain U.S. passports for infants and minors born in the U.S. prior to travel. Please see the Bureau of Consular Affairs home page on the Internet at http://travel.state.gov/ for our Dual Nationality flyer.

Safety and Security: Police coverage is extremely sparse outside of major urban areas. Sporadic incidents of highway banditry are reported in remote rural areas of north and northwest Nicaragua. If you do decide to travel to these areas, travel only on major highways during daylight hours. Though less frequent than in past years, political demonstrations and strikes occur sporadically in urban areas. U.S. citizens are advised to avoid crowds and blockades during such occurrences.

Nicaragua's Atlantic coast contains vast stretches of territory with little or no law enforcement outside the major towns. Nautical travelers should be aware that there are boundary disputes involving the governments of Nicaragua, Honduras and Costa Rica in the Caribbean coastal waters adjoining these countries, the Gulf of Fonseca, and on the San Juan River along the Nicaragua-Costa Rica border. Passengers and crews of foreign fishing boats have been detained and/or fined and vessels impounded. There also is a long-term boundary dispute with Colombia over San Andres Island and surrounding waters. Additionally, narcotics traffickers often use the Caribbean coastal waters.

U.S. citizens are cautioned that strong currents and undertows off sections of Nicaragua's Pacific coast have resulted in a number of drownings. Warning signs are not posted, and lifeguards and rescue equipment are not readily available in Nicaragua. U.S. citizens contemplating beach activities in Nicaragua's Pacific waters are urged to exercise extreme caution.

Although hundreds of passengers travel daily on domestic flights within Nicaragua without incident, these flights use small, uncontrolled airstrips outside of Managua, with minimal safety equipment and little boarding security. Significant safety and security improvements have, however, been made at the Bluefields, Puerto Cabezas and Corn Island airports, all of which are located on Nicaragua's Atlantic coast.

Although extensive demining operations have been conducted to clear rural areas of northern Nicaragua of landmines left from the war, visitors venturing off the main roads in these areas are cautioned that the possibility of encountering landmines still exists.

Crime: Violent crime in Managua and other cities is increasing, and street crimes are common. Pickpocketing and occasional armed robberies occur on crowded buses, at bus stops and in open markets, particularly the large Mercado Oriental. Gang activity is rising in Managua, though not at levels found in neighboring Central American countries. Gang violence, including robberies, assaults and stabbings, is most frequently encountered in poorer neighborhoods, but has occurred in the neighborhoods surrounding major hotels and open-air markets.

Visitors may want to avoid walking and instead use officially registered taxi cabs. You should avoid taking taxis after dark, if possible. Taxi drivers and passengers have been victims of robbery, assault, sexual assault, and even murder. Before taking a taxi, make sure that it has a red license plate and that the number is legible. Pick taxis carefully and note the driver's name and license number. Instruct the driver not to pick up other passengers, agree on the fare before you depart, and have small bills available for payment, as taxi drivers often do not make change. Also, check that the taxi is properly labeled with the cooperativ a (company) name and logo. Radio-dispatched taxis are recommended and can be found at the International airport and at the larger hotels. Purse and jewelry snatchings from motorists sometimes occur at stoplights. While riding in a vehicle, windows should be closed, car doors locked and valuables placed out of sight.

Street crime and petty theft are a common problem in Puerto Cabezas, Bluefields and the Corn Islands along the Nicaraguan Caribbean coast. Lack of adequate police coverage has resulted in these areas being used by drug traffickers and other criminal elements.

Tourists, in particular, should not hike alone in back country areas, nor walk alone on beaches, historic ruins or trails. All bus travel should be during daylight hours and on first-class conveyances, not on economy buses.

Do not resist a robbery attempt. Many criminals have weapons, and most injuries and deaths have resulted when victims have resisted. Do not hitchhike or go home with strangers, particularly from nightspots. Travel in groups of two or more persons whenever possible. Use the same common sense while traveling in Nicaragua that you would in any high-crime area of a major U.S. city. Do not wear excessive jewelry in downtown or rural areas. Do not carry large sums of money, ATM or credit cards you do not need, or other valuables.

If you are the victim of a crime while overseas, in addition to reporting to local police, contact the nearest U.S. Embassy or Consulate for assistance. The embassy/consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. Anyone obtaining a new or replacement passport in Nicaragua must go to the main Immigration Office to obtain an entry stamp in their new passport; anyone failing to do so will not be permitted by Nicaraguan authorities to leave the country. Citizens applying for replacement passports at the U.S. Embassy will be asked to present proof of citizenship, an identity and to pay a fee. Photographic proof of identity is especially important for young children because of the high incidence of fraud involving passport applications for children. Passport replacement can be facilitated if the traveler has a photocopy of the passport's data page.

American citizens may refer to the Department of State's pamphlet, A Safe Trip Abroad, for ways to promote a trouble-free journey. This publication and others, such as Tips for Travelers to Central and South America, are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402; via the Internet at http://www.gpoaccess.gov or via the Bureau of Consular Affairs home page at http://travel.state.gov/.

Medical Facilities: Medical care is limited, particularly outside Managua. Basic medical services are available in Managua and in many of the smaller towns and villages. However, treatment for many serious medical problems is either unavailable or available only in Managua. Certain types of medical equipment, medications and treatments are not available in Nicaragua.

Malaria is endemic, particularly in low-lying areas such as Managua and around the beaches. Dengue is also a problem. Tap water in Managua has been tested and found safe for drinking, however, you are urged to drink bottled water, especially when traveling outside of the capital. Paying for medical services is typically done on a cash basis although the few private hospitals will accept major credit cards for payment. U.S. health insurance plans are not accepted in Nicaragua.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost thousands of dollars. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas health care provider or whether you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Other Health Information: Mosquito-borne illnesses are an ongoing problem in Nicaragua. All persons traveling in Nicaragua, even for a brief visit, are at risk of contracting malaria year-round if they travel outside of Managua to low-lying areas. Take a prophylactic regimen best suited to your health profile. The country regularly suffers from outbreaks of dengue fever during the rainy season. Travelers should take precautions against being bitten by mosquitoes to reduce the chance of contracting such illnesses.

Individuals traveling to Nicaragua should ensure that all their routine vaccinations are up to date. Vaccination against Hepatitis A and Hepatitis B is strongly recommended. Travelers taking prescription medications should bring an adequate supply with them when coming to Nicaragua. More information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: Driving at night on rural roads outside major cities is also discouraged. Driving is on the right side of the road in Nicaragua. However, the similarities end there. U.S. citizens will encounter road conditions and driving practices significantly different from those in the United States. The information below concerning Nicaragua is provided for general reference only, and may not be totally accurate in a particular location or circumstances.

Safety of public transportation: Poor
Urban road conditions/maintenance: fair
Rural road conditions/maintenance: Poor
Availability of roadside assistance: None

Motorists driving to Nicaragua should use the principal highways and official border crossings at Guasale, El Espino and Las Manos between Nicaragua and Honduras and Penas Blancas between Nicaragua and Costa Rica. Although some of the principal highways connecting the major cities are in good shape, drivers should be aware that seasonal, torrential rains take a heavy toll on road conditions. Motorists are encouraged to prepare accordingly and may want to carry a cellular phone in case of an emergency.

Road travel after dark is especially hazardous in all areas of the country. With a few exceptions, Nicaraguan roads (not major highways) are in poor repair, potholed, poorly lit, frequently narrow, and lack shoulders. Many roads severely damaged as a result of Hurricane Mitch in October 1998 have not been repaired.

On the other hand, some of the major highways and roads are undergoing major repair, repaving and upgrading. Be on the lookout for detours and slow traffic on these roads. In general, road signs are poor to non-existent. Bicycles, oxcarts, horses and vehicles without lights are at times encountered even on main thoroughfares in Nicaragua. Motorcycles, often carrying three or even four passengers, dart in and out of traffic with little or no warning. Many vehicles are in poor condition, travel very slowly and are prone to breaking down without warning. Drivers should be especially careful on curves and hills, as many drivers will pass on blind spots. Speed limits vary depending on the type of road, but because the government lacks the resources, traffic rules are rarely enforced.

Due to the age and disrepair of many vehicles, many drivers will not signal their intentions using turn indicators. Rather, it is common for a vehicle operator to stick his hand out the window to signal a turn. If you do drive in Nicaragua, you need to exercise the utmost degree of caution, drive defensively and make sure you have insurance.

Avoid riding the many different shapes and sizes of buses stopping anywhere on the road to pick up passengers. They are overcrowded, unsafe and often are used by pick-pockets. Because of the conditions discussed above, traffic accidents often result in serious injury or death. This is most often true when heavy vehicles, such as buses or trucks, are involved. Traditionally, vehicles involved in accidents in Nicaragua are not moved (even to clear traffic), until authorized by a police officer. Drivers who violate this norm may be held legally liable for the accident.

Nicaraguan law requires that a driver be taken into custody for driving under the influence or being involved in an accident that caused serious injury or death, even if the driver is insured and appears not to have been at fault. The minimum detention period is 48 hours; however, detentions frequently last until a judicial decision is reached (often weeks or months), or until a waiver is signed by the injured party (usually as the result of a cash settlement).

Visitors to Nicaragua might want to consider hiring a professional driver during their stay. Licensed drivers who are familiar with local roads can be hired through local car rental agencies. In case of accident, only the driver will be taken into custody.

Regulations governing transit are administered by the National Police. For specific information concerning Nicaraguan drivers permits, vehicle inspection, road tax, and mandatory insurance, you may wish to refer to the National Police website at http://www.policia.gob.ni/. You may also contact the Embassy of Nicaragua or a Consulate for further information.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the government of Nicaragua's civil aviation authority as Category 2 - not in compliance with international aviation safety standards for the oversight of Nicaragua's carrier operations. Consultations to correct the deficiencies are ongoing. Air carriers under oversight by Category 2 aviation authorities are subject to heightened FAA surveillance when flying to the United States and may not add additional flights, new service, or larger capacity aircraft. At this time, there are no Nicaragua-based airlines flying to the United States. For further information, travelers may contact the Department of Transportation within the U.S. at telephone 1-800-322-7873, or view the FAA's International Aviation Safety Assessment (IASA) web page at http://www.faa.gov/avr/iasa.

The U.S. Department of Defense (DOD) separately assesses some foreign carriers for suitability as official providers of air services. In addition, the DOD does not permit its personnel to use air carriers from Category 2 countries for official business except for flights originating from or terminating in the United States. Local exceptions may apply. For information regarding the DOD policy on specific carriers, travelers may contact the DOD at telephone (618) 229-4801.

Customs Regulations: Nicaraguan customs authorities may enforce strict regulations concerning temporary importation into or export from Nicaragua of items such as firearms, ammunition, antiquities, medications, etc. U.S. citizens should also be aware of laws prohibiting the exportation of certain animals, flora and fauna.

Before excavating archaeological materials, or agreeing to buy artifacts of historical value, all persons are strongly urged to consult with the National Patrimony Directorate of the Nicaraguan Institute of Culture. Nicaraguan law and a bilateral accord limit the acquisition, importation into the U.S. and commercialization of said goods. Severe criminal penalties may apply.

U.S. citizens planning to stay in Nicaragua for an extended period of time with the intention of bringing vehicles or household goods into the country should consult Nicaraguan customs officials prior to shipment. Outside of Nicaragua, it is highly recommended you contact the Embassy of Nicaragua in Washington, D.C. or one of Nicaragua's consulates in the United States for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Nicaraguan laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Nicaragua are strict, and convicted offenders can expect jail sentences and heavy fines.

Money And Currency: U.S. currency is widely accepted and major cred it cards are also typically accepted in hotels, restaurants, stores and other businesses in urban and tourist areas. Visitors who need to change dollars, are encouraged to do this at their hotel since this is typically the safest place. ATM machines are available at banks in addition to some shopping centers and gas stations in urban and tourist areas. However, individuals should exercise caution when using a teller machine since they are typically in or near uncontrolled areas and criminal elements can easily see you withdrawing cash. Traveler's checks are accepted at a few major hotels and may also be exchanged for local currency at authorized exchange facilities ("casas de cambio"). You will also find enterprising individuals waving wads of cash in the street. Changing money in this fashion can be dangerous and is discouraged.

Special Circumstances: U.S. citizens should be aware of the risks of purchasing real estate in Nicaragua and should exercise caution before committing to invest in property. The 1979-90 Sandinista government expropriated some 30,000 properties, and land title remains unclear in many cases. Although the government has resolved over 3,000 claims by U.S. citizens for compensation or return of properties, there remain almost 800 unresolved claims registered with the U.S. Embassy. In addition, the Nicaraguan judicial system is subject to corruption and political pressure. Potential investors should engage competent local legal representation and investigate their purchases thoroughly in order to reduce the possibility of property disputes.

Disaster Preparedness: Nicaragua is prone to a wide variety of natural disasters, including earthquakes, hurricanes and volcanic eruptions. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov.

Children's Issues: Current information on Nicaraguan adoption procedures and the immigrant visa application process is available from the Consular Section of the U.S. Embassy. Prospective adoptive parents are urged to check with the Consular Section to be sure that all required documentation has been approved by the U.S. Bureau of Citizenship and Immigration Services in the Department of Homeland Security and their child's adoption is complete before traveling to Nicaragua to apply for their child's immigrant visa. Adoptive parents are also urged to carry with them complete adoption paperwork when traveling with their adopted child to, from, and within Nicaragua.

Nicaragua is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction. For more information on international adoption of children and international parental child abduction, please refer to the Department of State's Internet site at http://travel.state.gov/children's_issues.html or telephone 1-888-407-4747.

Registration/Embassy Location: U.S. citizens living in or visiting Nicaragua are encouraged to register at the Consular Section of the U.S. Embassy in Managua and obtain updated information on travel and security in Nicaragua. The U.S. Embassy is located at Kilometer 4 1/2
(4.5) Carretera Sur, Managua; telephone (505) 266-6010 or 268-0123; after hours telephone (505) 266-6038; Consular Section fax (505) 266-9943; E-mail: [email protected] Web page: http://nicaragua.usembassy.gov.