Nicaragua takes its name from Nicarao, chief of the indigenous tribe that lived around present-day Lake Nicaragua during the late 1400s and early 1500s. 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 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 led to 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. A historic battle between Walker's troops and Nicaraguan troops was fought in San Jacinto in September 1856, and is celebrated today as a national holiday. The Liberals and Conservatives united to drive Walker out of office in 1857. Three decades of Conservative rule followed. Taking advantage of divisions within the Conservative ranks, Jose Santos Zelaya led a Liberal revolt that brought him to power in 1893. Zelaya ended a longstanding dispute with Britain over the Atlantic Coast in 1894, and reincorporated that region into Nicaragua.
By 1909, differences had developed over a trans-isthmian canal and concessions to Americans in Nicaragua; there also was concern about 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. 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 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 United States. The Somoza dynasty ended in 1979 with a massive uprising led by the Sandinista National Liberation Front (FSLN), which had conducted a low-scale guerrilla war against the Somoza regime since the early 1960s.
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, including the Colombian guerrilla group Revolutionary Armed Forces of Colombia (FARC). 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, Nicaraguans elected as their President the National Opposition Union candidate, Violeta Barrios de Chamorro, widow of the slain journalist and editor of the daily newspaper La Prensa, Pedro Joaquin 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. Despite a number of irregularities--which were due largely to logistical difficulties and a baroquely complicated electoral law--the October 20, 1996 presidential, legislative, and mayoral elections were judged free and fair by international observers and by the groundbreaking national electoral observer group Etica y Transparencia (Ethics and Transparency). This time Nicaraguans elected former Managua Mayor Arnoldo Alemán, leader of the center-right Liberal Alliance. The first transfer of power in modern Nicaraguan history from one democratically-elected president to another took place on January 10, 1997, when the Aleman government was inaugurated. Aleman’s administration was marred by graft and corruption. At the end of his term, Aleman entered into a political pact (el Pacto) with Daniel Ortega to divide control of state organs of power between them.
Presidential and legislative elections were held in November 2001. Enrique Bolaños of the Liberal Constitutional Party was elected to the Nicaraguan presidency on November 4, 2001, defeating 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 efforts against terrorism. Bolaños was inaugurated on January 10, 2002. His administration’s efforts were severely blunted by repeated political attacks from the left and the right as Bolanos sought to remove traditional sources and bases of political patronage and corruption.
FSLN candidate Daniel Ortega won the presidential elections of November 5, 2006 with 38% of the vote, defeating a divided opposition. ALN candidate Eduardo Montealegre garnered 29%; Jose Rizo of the PLC received 26%; and MRS' Edmundo Jarquin polled fourth with 6%. Ortega was inaugurated on January 10, 2007.
In early 2008 Eduardo Montealegre was forced out of the ALN and formed his own movement, Vamos con Eduardo (VCE), and ran for mayor of Managua. The VCE and PLC formed an electoral alliance to compete under the same banner during the November 2008 municipal elections. Those elections were marred by a number of serious irregularities and denounced domestically and internationally as severely flawed. Official results released by the Supreme Electoral Council awarded 105 of Nicaragua’s 153 municipalities to the ruling FSLN.
Information by U.S. Department of State