South America: Nicaragua
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 extensive 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.
Nicaragua's constitution guarantees freedom of speech, peaceful assembly and association, religion, and movement within the country, as well as foreign travel, emigration, and repatriation. In the run-up to the November 2008 municipal elections the government made attempts to limit some of these rights, including limiting free and open discussion in the media and academia, and peaceful assembly. 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, public safety workers, and police, are entitled to form and join unions of their own choosing. Most of Nicaragua’s labor force is involved in the informal service and agricultural sectors and is not unionized. However, the formal manufacturing and government/public sectors are heavily unionized. About 65% of unions are affiliated with the Sandinistas. Workers have the right to strike. Collective bargaining is becoming more common in the private sector.
The president and the members of the unicameral National Assembly are elected to concurrent 5-year terms. The National Assembly consists of 92 total deputies (90 elected from party lists drawn at the regional and national levels, plus the outgoing president and the second place finisher in the most recent presidential election).
The Supreme Court supervises the functioning of the still largely ineffective, often partisan, and overburdened judicial system. In 2000, the Ortega-Aleman pact orchestrated expansion of the Supreme Court from 12 to 16 justices. The National Assembly elects Supreme Court justices to staggered 5-year terms. 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 National Assembly elects the CSE magistrates and their alternates to 5-year terms. A 2000 constitutional amendment 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. The constitution provides the Assembly with sole power to elect Supreme Court judges, CSE magistrates, and other national level public officials. However, in January 2010 President Ortega issued a decree that indefinitely extended the terms of these incumbent officials. As a result, as of May 2010 about two dozen of these officials remained in their positions despite the fact that their terms had expired.
U.S.-NICARAGUAN RELATIONS
U.S. policy aims to continue supporting preserving 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.
Section 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, prohibits U.S. assistance and support to any country in which U.S. citizens have not received adequate and effective compensation for outstanding claims against the government for confiscated property, as is the case in Nicaragua. The law provides authority to the President, which is delegated to the Secretary of State, to waive the prohibition when it is in the national interest. In July 2009, the Secretary issued the 16th waiver of the Section 527 prohibition based upon Nicaragua's progress in resolving U.S. citizen claims.
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; and
- Increasing the effectiveness of Nicaragua's efforts to combat transnational crimes, including narcotics trafficking, money laundering, illegal alien smuggling, international terrorist and criminal organizations, and trafficking in persons.
Since 1990, the United States has provided over $2 billion in assistance to Nicaragua. About $489 million of that was for debt relief, and another $488 million was for balance-of-payments support. The United States also provided $94 million in 1999, 2000, and 2001 as part of its overall response to Hurricane Mitch. In response to Hurricane Felix, the United States provided over $15 million in direct aid to Nicaragua to support humanitarian relief and recovery operations from the damage inflicted in September 2007. Aside from funding for Hurricanes Mitch and Felix, the levels of assistance have fallen incrementally to reflect the improvements in Nicaragua. Assistance has been focused on promoting more citizen political participation, compromise, and government transparency; stimulating sustainable growth and income; and fostering better-educated and healthier families.
The Millennium Challenge Corporation's (MCC) 5-year, $175 million compact with the Republic of Nicaragua entered into force on May 26, 2006. The Millennium Challenge Compact sought to reduce poverty and spur economic growth by funding projects in the regions of León and Chinandega aimed at reducing transportation costs and improving access to markets for rural communities; increasing wages and profits from farming and related enterprises in the region; and attracting investment by strengthening property rights. In June 2009, the MCC Board terminated portions of the compact when the Government of Nicaragua refused to address credible accusations of fraud related to the November 2008 municipal elections.
