ABSTRACT
Nicaragua's future is uncertain. On the positive side, the economy has grown steadily, with annual increases between 4 and 5 percent over the past few years. There seems little danger of a return to the open violence, although the Ortega administration is increasingly inclined to use the courts to manipulate the political system. Politics remains mired in bitter conflict, reflecting both personal rivalries and past disputes. Transparency International's index of corruption gives Nicaragua the third-highest ranking in the Western Hemisphere. The population seems increasingly cynical about the entire process, as they see little hope offered by any party. The nation's reservoir of international sympathy and goodwill, generated by the events of the 1970s and 1980s and reinforced by the impact of Hurricane Mitch, seems exhausted, and both the United States and the European Union have suspended most assistance. Despite the improvements, poverty is endemic and much of the infrastructure is inadequate and worn out.
