he Nicaraguan Development Institute
(INDE)

Member of: CACM, CEMA (observer), FAO, G-77, GATT, IADB, IAEA, IBRD, ICAC,
ICAO, ICO, IDA, IDB--Inter-American Development Bank, IFAD, IFC, ILO, IMF, IMO,
INTELSAT, INTERPOL, IPU, IRC, ISO, ITU, NAM, OAS, ODECA, PAHO, SELA, UN,
UNESCO, UPEB, UPU, WFTU, WHO, WMO, WTO

Diplomatic representation: Charge d'Affaires Leonor Arguello de HUPER;
Chancery at 1627 New Hampshire Avenue NW, Washington DC 20009; telephone
(202) 387-4371 or 4372;
US--Charge d'Affaires John P. LEONARD; Embassy at Kilometer 4.5
Carretera Sur, Managua (mailing address is APO Miami 34021); telephone p505o
(2) 66010 or 66013, 66015 through 66018, 66026, 66027, 66032 through 66034;
note--Nicaragua expelled the US Ambassador on 11 July 1988, and the US expelled
the Nicaraguan Ambassador on 12 July 1988

Flag: three equal horizontal bands of blue (top), white, and blue with the
national coat of arms centered in the white band; the coat of arms features a
triangle encircled by the words REPUBLICA DE NICARAGUA on the top and
AMERICA CENTRAL on the bottom; similar to the flag of El Salvador which
features a round emblem encircled by the words REPUBLICA DE EL SALVADOR EN LA
AMERICA CENTRAL centered in the white band; also similar to the flag of
Honduras, which has five blue stars arranged in an X pattern centered in
the white band

- Economy
Overview: Government control of the economy historically has been
extensive, although the new government has pledged to reduce it.
The financial system is directly controlled by the state, which also
regulates wholesale purchasing, production, sales, foreign trade, and
distribution of most goods. Over 50% of the agricultural and industrial
firms are state owned. Sandinista economic policies and the war have
produced a severe economic crisis. The foundation of the economy
continues to be the export of agricultural commodities, largely coffee
and cotton. Farm production fell by roughly 7% in 1989, the fifth
successive year of decline. The agricultural sector employs 44%
of the work force and accounts for 23% of GDP and 86% of export earnings.
Industry, which employs 13% of the work force and contributes 26% to GDP,
showed a sharp drop of - 23% in 1988 and remains below pre-1979 levels.
External debt is one of the highest in the world on a per capita basis.
In 1989 the annual inflation rate was 1,700%, down from a record
16,000% in 1988. Shortages of basic consumer goods are wides