Background:
The Pacific Coast of Nicaragua was settled as a Spanish colony from
Panama in the early 16th century. Independence from Spain was
declared in 1821 and the country became an independent republic in
1838. Britain occupied the Caribbean Coast in the first half of the
19th century, but gradually ceded control of the region in
subsequent decades. Violent opposition to governmental manipulation
and corruption spread to all classes by 1978 and resulted in a
short-lived civil war that brought the Marxist Sandinista guerrillas
to power in 1979. Nicaraguan aid to leftist rebels in El Salvador
caused the US to sponsor anti-Sandinista contra guerrillas through
much of the 1980s. Free elections in 1990, 1996, and again in 2001
saw the Sandinistas defeated. The country has slowly rebuilt its
economy during the 1990s, but was hard hit by Hurricane Mitch in
1998.