Nicaragua’s Troubled Transition to Democracy
Authors: McConnell Shelley A. 
Published: May 2020

Nicaragua was among the last countries in Latin America to become democratic and among the first to regress to authoritarian practices. It has thus been a fertile testing ground for theories of democratic development, addressing hypotheses about whether leftist revolutions can produce democracy, the difficulties inherent in wartime transitions to democracy, and the roles that foreign actors play in constraining and fostering democratic governance. After achieving independence from Spain in 1823, Nicaragua fell under the hegemony of the expansionist United States and endured a lengthy U.S. occupation. The U.S.-supported Somoza dictatorship was overthrown in 1979 by a revolution that brought to power the socialist Sandinista National Liberation Front (FSLN). The FSLN initially implemented a progressive authoritarian regime under an appointed junta while fostering widespread political participation channeled through mass organizations associated with the party. Policies that centered on improving equality for the majority at the expense of traditional elites and the private sector drew U.S. hostility. For a decade, U.S.-sponsored counterrevolutionary forces made war on Nicaragua in an attempt to unseat the Sandinista government, and a U.S. trade and financial embargo deeply damaged the economy. During that time, Nicaragua put in place a presidential system, permitted the development of opposition political parties, held partially competitive elections in 1984, and in 1987 inaugurated a constitution that mixed socialist and liberal principles. The 1984 elections were boycotted by right-wing opponents but shifted the basis of legitimate governance from winning the revolution to winning at the ballot box.

In 1990, Nicaragua held competitive and internationally observed elections convened as one element of a regionwide Central American peace process. The FSLN lost in an upset that yielded an alteration in power signaling the advent of democracy. After negotiating to depoliticize the armed forces, President Violeta Chamorro took office and signed peace agreements with the counterrevolutionaries. For a decade, democracy prevailed and was deepened via a constitutional reform that transferred budgetary power to the legislature, shortened the presidential term, and prohibited immediate reelection to the presidency. In opposition, the FSLN employed both social mobilization tactics and parliamentary procedure to defend their constituents. Liberal remnants from the Somoza era regrouped and won the presidency in 1996. Democratic consolidation proved elusive, however, and instead the caudillo leaders of the FSLN and liberal parties, former President Daniel Ortega and then-President Arnoldo Alemán, reached a pact through which they radically reduced the political space available to smaller parties and assumed exclusive joint control of state institutions. The liberals again won election in 2001, but after their party split in 2006, Ortega was reelected to the presidency. The new FSLN government introduced progressive policies that reduced poverty, but the quality of elections declined and presidential term limits were abolished, introducing a competitive authoritarian regime. The FSLN then eliminated rival parties from serious contention and used legal reforms to consolidate a one-party-dominant system lacking horizontal and vertical accountability and marked by old political patterns of caudillo rule, elite pacts, and personalist rule centered on a single family.