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. Nicaragua is a constitutional democracy with executive, legislative, judicial, and electoral branches of government.

The Supreme Court supervises the functioning of the still largely ineffective, often partisan, and overburdened judicial system.

Freedom of speech is a right guaranteed by Nicaragua’s 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 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, natural 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. Nicaragua remains the second poorest nation in the hemisphere.

Exports have been one of the key engines of economic growth. The U.S. is Nicaragua’s largest trading partner, accounting for 1/5th of Nicaragua’s imports and 2/3rds of its total exports.

Nicaragua is primarily an agricultural country, but light industry (maquila), tourism, banking, mining, fisheries, and general commerce are expanding.

Tourism is the nation’s third largest source of foreign exchange. More than 60,000 Americans visit Nicaragua yearly, primarily business people, tourists, and Nicaraguan-Americans visiting relatives.

An estimated 7,000 U.S. citizens reside in the country.