HISTORICAL BACKGROUND ON NICARAGUA

I. THE NICARAGUAN REVOLUTION

A. BACKGROUND

1. U.S. SENT A FLEET TO NICARAGUA IN 1909 TO OVERTHROW PRES. SANTOS ZELAYA (OVERTHROWN IN 1912)

a. ZELAYA HAD SOUGHT JAPANESE, BRITISH, & GERMAN HELP TO BUILD A CANAL ACROSS NICARAGUA

b. ZELAYA ALSO THREATENED THE AMERICAN BANANA PLANTATIONS

c. U.S. OCCUPATION LASTED FROM 1909-1933

2. AUGUSTO CESAR SANDINO LAUNCHED A REBELLION IN 1927 AND CARRIED OUT GUERRILLA WARFARE AGAINST U.S. OCCUPATION & ISSUED A MANIFESTO:

a. NATIONAL SOVEREIGNTY

b. LAND REFORM

c. ORGANIZE AGRICULTURAL COOPERATIVES

3. THE U.S. ESTABLISHED A NATIONAL GUARD, HEADED BY GEN. ANASTASIO SOMOZA & WITHDREW FROM NICARAGUA

a. SOMOZA ASSASSINATED SANDINO IN 1934

B. SOMOZA BECAME A RUTHLESS TYRANT

1. THE SOMOZAS RULED NICARAGUA IN A CORRUPT DICTATORSHIP FROM 1937-1979

2. SOMOZA AMASSED A HUGE PERSONAL FORTUNE

3. SOMOZAS OWNED 20% OF LAND, AIRLINE, MARITIME FLEET, MOST BUSINESSESS & INDUSTRIES

(TV STATION, NEWSPAPER, SUGAR MILLS, MERCEDES-BENZ AGENCY)

4. HE WAS ASSASSINATED IN 1956 & FOLLOWED BY HIS SON LUIS SOMOZA & IN 1937 BY

ANASTASIO SOMOZA - ALSO RUTHLESS & CORRUPT

5. SOMOZAS PLUNDERED NATIONAL BANKS

a. ABSCONDED WITH $22 ML. OF IMF LOAN, LEFT ONLY $3.6 ML. IN NATIONAL TREASURY

b. AFTER THE REVOLUTIONK, IMF DEMANDED PAYMENT FROM THE SANDINISTAS

C. THE REVOLUTION

1. A GUERRILLA MOVEMENT EMERGED IN THE 1961

a. THREE GROUPS FORMED THE SANDINISTA NATIONAL LIBERATION FRONT (FSLN)

2. THE SOMOZA REGIME COLLAPSED IN 1979

3. BY THE END OF THE REVOLUTION, THE ECONOMY WAS IN SHABLES

a. EMPTY NATIONAL TREASURY

b. FOREIGN DEBT $1.6 BL.

D. THE SANDINISTAS

1. HELD ELECTIONS IN 1984

a. ALL PARTIES, INCLUDING RIGHT-WING PARTICIPATED

b. RECEIVED $300,000 IN STATE FUNDS FOR CAMPAIGNS & TV TIME

c. 80% VOTED FOR CANDIDATES OF 7 PARTIES

d. 60% VOTED FOR DANIEL ORTEGA

e. FSLN WON 61 OF 96 ASSEMBLY SEATES

(1) 2 CENTRIST & CENTER-LEFT RECEIVED 29% VOTE

(2) 3 LEFT-WING RECEIVED 3.5% VOTE

(3) THUS "COMMUNIST" PARITES WERE LOSERS

E. 2 POLICY GOALS:

a. INDEPENDENT & NONALIGNED FOREIGN POLICY

b. CREATION OF A MIXED ECONOMY

1. MIXED ECONOMY: PRIVATE ENTERPIRSE, COOPERATIVES, & STATE PRODUCE & MARKET GOODS

a. ENCOURAGED THE PRIVATE SECTOR TO PARTICIPATE

b. 40% OF GDP IS PRODUCED BY THE STATE

c. (HARDLY A "COMMUNIST" STATE)

2. AGRARIAN REFORM: WITHOUT THREAT TO LANDED ARISTOCRACY

a. REDISTRIBUTED SOMOZA LANDHOLDINGS

b. PROVIDED LAND FOR ANYONE WHO WANTED TO WORK IT

c. GUARANTEED PRIVATE PROPERTY; MAJORITY OF LAND = PRIVATE

d. PREFERENCE TO COOPERATIVES

(1) 1/5 LAND IN COOPERATIVES (2) 1/5 LAND IN STATE FARMS (3) OVER HALF IS PRIVATE

3. SOCIAL PROGRAMS: TO SATISFY BASIC NEEDS

a. ILLITERACY: 52% -> 12%

b. HEALTH CARE; BEST ACHIEVEMENT IN 3RD WORLD

(1) CLINICS & HOSPITALS IN RURAL AREAS 26 -> 99

(2) LIFE EXPECTANCY 53 ->

(3) INFANT MORTALITY 123/1000 -> 61

(4) MALNOURISHMENT 75%

c. EDUCATION - FREE (THROUGH GRAD STUDIES)

(1) SCHOOLS 2 X IN 4 YRS.

4. 1983 - HIGHEST ECONOMIC GROWTH IN LATIN AMERICA

F. U.S. CAMPAIGN OF ECONOMIC & POLITICAL DESTABILIZATION

1. RONALD REAGAN PROMOTED THE CONCEPT THAT THE WORLD WAS DIVIDED BETWEEN EAST & WEST

2. EVERY STRUGGLE REFLECTED THE BROADER CONFLICT BETWEEN COMMUNISM & CAPITALISM

3. CONSIDERING NICARAGUA COMMUNIST, HE BUILT UP THE MILITARY IN HONDURAS TO CONTAIN "COMMUNISM" IN NICARAGUA & EL SALVADOR

4. U.S. FEARED NICARAGUA WOULD LEAD TO DESTABILIZATION OF ALL CENTRAL AMERICA

5. COUNTER-GUERRILLA STRATEGIES = CALLED "LOW INTENSITY CONFLICT"

a. ECONOMIC REFORM TO WIN ALLEGIANCE

b. ANTI-GUERRILLA MILITARY TACTICS

6. CONTRAS - EXILE ARMY FUNDED BY THE U.S. & COMMANDED BY FORMER SOMOZA OFFICERS

a. 1000s OF SAMOZA NATIONAL GUARDS FLED

(1) FORMED TERRORIST "15TH OF SEPTEMBER LEGION"

b. 1981, CIA TOOK OVER COUNTER-REVOLUTIONARY FORCE

(1) THE CIA FINANCED, TRAINED & ARMED THEM (12,000 OF THEM)

c. REAGAN: COVERT AID TO CONTRAS WAS NEEDED TO PREVENT ARMS FLOW FROM NICARAGUA TO EL SALVADOR

d. "FREEDOM FIGHTERS" INVADED FROM HONDURAS & COSTA RICA

e. 1984 THE CONTRAS WERE CONDEMNED AS THE WORST HUMAN RIGHTS VIOLATORS IN LATIN AMERICA

7. THIS FORCED THE GOVERNMENT TO SPEND HALF ITS BUDGET ON DEFENSE

a. WAR COST $500 ML. PHYSICAL DAMAGE

(1) CONTRAS DESTROYED 41 HEALTH CARE CENTERS

15 SCHOOLS, MURDERED 158 TEACHERS

b. $200 ML. LOST COTTON EXPORTS

c. $700 ML. CAPITAL FLIGHT

d. 25% REDUCTION CATTLE HERD

e. UNEMPLOYMENT 40%, INFLATION 80%

8. AS ECONOMY DETERIORATED IN 1985, ORTEGA ANNOUNCED AUSTERITY MEASURES

a. ANNOUNCED "SOCIALISM IS AT THIS MOMENT IMPOSSIBLE"

G. 1985 REAGAN PLACED A TRADE EMBARGO AGAINST NICARAGUA, FORCING THE SANDINISTAS INTO GREATER DEPENDENCE ON CUBA & THE SOVIET UNION

1. 1980 RIGHT-WING HERITAGE FOUNDATION PUBLICATION BECAME A BLUEPRINT FOR REAGAN

a. "ECONOMIC SHORTCOMINGS MIGHT PROVOKE AT LEAST LIMITED CIVIL UNREST"

2. 25 L.A. NATIONS OPPOSED THE EMBARGO

3. U.S. RESTRICTED TRADE, CUT OFF BILATERAL AID, BLOCKED MULTILATERAL AID (AID, WB, IMF, IDB), DISCOURAGED FOREIGN INVESTMENT & LENDING

4. THE FOOD FOR PEACE PROGRAM WAS CANCELLED IN 1981

5. THESE MEASURES HALTED ECONOMIC PROGESS

6. ORTEGA WENT TO MOSCOW IN 1985 TO SEEK AID; IT FILLED THE GAP IN AID CAUSE BY U.S. EMBARGO & POLICIES

H. 1990 ELECTIONS: DANIEL ORTEGA VS. VIOLETA CHAMORRO (WIDOW OF ANTI-SOMOZA LEADER)

1. SANDINISTAS WON ONLY 40.8% OF VOTES

2. THE UNO (NATION OPPOSITION UNION) WAS A COALITION FINANCED BY WASHINGTON

3. SINCE: QOL PLUMMETED

4. LAND IN CULTIVATION DECREASED

5. 70% OF POPULATION IN POVERTY; CALORIC INTAKE FELL BELOW MDR

6. EDUCATION & HEALTH CARE CONSTRICTED

7. UNEMPLOYMENT SKYROCKETED