Most of Nicaragua"s population is a product of racial mixtures. Of the original American Indian population, only the Sumo, Miskito, and the Ramaquie tribes remain. Spanish is the official language, but there is widespread familiarity with English. The majority of the population is Roman Catholic; small Protestant and Jewish communities are concentrated in larger cities. There is no established religion. Nicaragua has a young population, nearly half is under the age of 15.

             Nicaragua has a developing centrally planned economy based largely on services, light industries, and agriculture. Financial institutions, mines, fisheries, and forestry were nationalized after the revolution of 1979. Agriculture accounts for less than one- fourth of the GNP and employs about two- fifths of the work force. Extensive land reform was implemented after 1979. Corn, sorghum, and beans are the chief staples and are harvested twice a year. Cotton, coffee, sugar, and bananas are produced primarily for export.

             There was a severe outflow of domestic capital from Nicaragua after 1977. An expansionary monetary policy was adopted in 1980 -81 in an effort to supply credit to the private sector and to finance Nicaragua"s external public debt. The United States suspended foreign aid to Nicaragua in 1981.

             Nicaragua is ruled by a junta of three members drawn from the FSLN (Frente Sandinista de Liberacion Nacional). Executive and legislative authority is centered in the Government of National Reconstruction, which receives legislative advice from 47- member Council of State, dominated by the FSLN. Nicaragua"s social welfare system provides employed persons with work-injury, sickness, and maternity benefits, as well as old age, disability , and survivors pensions. Health conditions are extremely poor and are aggravated by contaminated water, poor sanitation, and overcrowded housing. Diseases such as enteritis, tuberculosis, tetanus, and typhoid fever are common.