Nicaragua (nĭkärä'gwä) , officially Republic of Nicaragua, republic (2005 est. pop. 5,465,000), 49,579 sq mi (128,410 sq km), Central America. Nicaragua is bordered on the north and northwest by Honduras, on the east by the Caribbean Sea, on the south by Costa Rica, and on the southwest by the Pacific Ocean. The capital and largest city is Managua.

Land and People

There are four main geographic areas. The northwestern highlands have peaks as high as 8,000 ft (2,440 m). On the Caribbean is the torrid Mosquito Coast, with the historic port of Bluefields. This region is home to the Miskito people, who were given limited autonomy by the government in 1987. A lowland belt running northwest to southeast contains lakes Managua and Nicaragua. The fourth region is a narrow volcanic belt squeezed between the lakes and the Pacific; in this region the productive wealth and the population (largely of Spanish and indigenous descent) are concentrated. Corinto, on the Pacific, is the chief port. Spanish is the official language and the population is overwhelmingly Roman Catholic. There are universities at León and Managua.

Economy and Government

Agriculture employs about 45% of the workforce and accounts for about one fourth of the gross national product. The chief commercial crops are coffee, cotton, and sugarcane; these, together with meat, are the largest exports. Timber, gold, and seafood are also exported. The principal manufactured goods are chemicals, textiles, and processed foods. The country's economy was severely affected by a hurricane in 1998.

Nicaragua is a republic. Executive power is held by the president, who is popularly elected for a five-year term. Members of the unicameral legislature are also elected for five years. The country is divided into 15 administrative departments and two autonomous regions.

History

Early History through U.S. Occupation

The country probably takes its name from Nicarao, the leader of an indigenous community inhabiting the shores of Lake Nicaragua that was defeated in 1522 by the Spanish under Gil González de Ávila. Under Spanish rule Nicaragua was part of the captaincy general of Guatemala. After declaring independence from Spain (1821), Nicaragua was briefly part of the Mexican Empire of Agustín de Iturbide and then (1825–38) a member of the Central American Federation. Nicaraguan politics were wracked by conflict between Liberals and Conservatives, centered respectively in León and Granada; Managua was founded as the capital in 1855 as a compromise. British influence had been established along the east coast in the 17th cent., and in 1848 the British seizure of San Juan del Norte opened a period of conflict over control of the Mosquito Coast.

The United States was interested in a transisthmian canal (see Nicaragua Canal), and its interest was heightened by the discovery of gold in California. In 1851, Cornelius Vanderbilt opened a transisthmian route through Nicaragua for the gold seekers. The Clayton-Bulwer Treaty (1850) settled some of the issues between Great Britain and the United States concerning the proposed canal, but Nicaragua remained in a state of disorder that culminated in the temporary triumph (1855–57) of the filibuster William Walker.

After Walker's defeat there was a long period of quiet under Conservative control until the Liberal leader, José Santos Zelaya, became president in 1894. He instituted a vigorous dictatorship, extended Nicaraguan authority over the Mosquito Coast, promoted economic development, and interfered in the affairs of neighboring countries. His financial dealings with Britain aroused the apprehension of the United States and helped bring about his downfall (1909).

In 1912, U.S. marines were landed to support the provisional president, Adolfo Díaz, in a civil war. The Bryan-Chamorro Treaty, giving the United States exclusive rights for a Nicaraguan canal and other privileges, was ratified in 1916. (It was terminated in 1970.) The Liberals opposed the U.S. intervention, and there was guerrilla warfare against the U.S.-supported regime for years. American occupation ended in 1925 but resumed the next year, when Emiliano Chamorro attempted to seize power. Augusto César Sandino was a leader of the anti-occupation forces. The U.S. diplomat Henry L. Stimson succeeded in getting most factions to agree (1927) to binding elections, although Sandino continued to fight.