ABSTRACT
Nicaragua's position in the global economy as a dependent state will be determinative for its behavior in international affairs well into the future. Movement toward a less dependent, more stable economy was necessary for the consolidation of the revolution and maintaining popular support at home -- recall the Sandinista priority of rebuilding the economy and delivering on the promises of the revolution. But economic development was also necessary for long-term state legitimacy and security given Nicaraguan realities and the external constraints the new government faced. Ninety percent of Nicaragua's foreign exchange earnings were derived from agriculture and 70 percent of the population earned their living off the land. Fitting revolutionary goals to economic and social realities in Nicaragua promised to make policy-making interesting and to generate tensions, inconsistencies and criticisms. The economic situation, in brief, was complex and required delicate handling for any group wishing to maintain popular and international support.
