On January 10, 2007 Daniel Ortega was inaugurated as President of Nicaragua, an outcome the US fought long and hard to prevent.  In the context of unanimous praise for the electoral process on the part of observers, and a massive shift to the Democrats in the U.S. elections, the U.S. government has, at least for the moment, felt obliged to acknowledge the results and legitimacy of the Nicaraguan elections.

Over 300,000 people flooded the Plaza de la Fe for the inaugural celebration with high hopes and expectations for this government.  Ortega campaigned on commitments to achieve "Zero Poverty, Hunger, Illiteracy and Unemployment."  He has promised to reduce mega salaries in government and to assure that women hold 50% of all government posts.  Many of the appointments he has made so far are welcomed by and have instilled confidence on the part civil society organizations and social movements, in particular the Ministers of Education, Agriculture and Forestry, Labor and the appointments of the leader of the Consumers Network, Ruth Herrera to head ENACAL and Orlando Nunez to head the "Zero Poverty Program".

While government plans for achieving these admirable goals are still emerging, the Minister of Education has already taken important steps towards the goal of declaring Nicaragua free of illiteracy by 2012 by abolishing the school fees required under the World Bank "School Autonomy Program" and announcing other programs to support the education of poor children.  President Ortega has vowed to block privatization of water in Nicaragua and to increase access to electricity for poor people. Describing the challenges ahead as a "battle of titantic proportions" Ortega says that the new government will require the cooperation of other left-leaning governments in Latin America to meet its goal of eradicating poverty. 

The Sandinista government will inherit an energy system verging on collapse.  Venezuela has promised the installation of new power plants and has promised supply of oil under favorable conditions as well as support for social programs.  Cuba has promised help in the areas of health and literacy.  This cooperation will be crucial to help the new government make good on its promises, however these alliances it will also heighten tensions with the United States.

Promises to reduce poverty, illiteracy and unemployment will require an increase in social spending which will also heighten tensions with the International Financial Institutions.  Nicaragua's agreement with the IMF virtually freezes social spending, prioritizing payment of internal and foreign debt.  The government will face demands from civil society to renegotiate the internal debt in order to free up funds for social spending and to stop further privatizations, both proposals that the IMF opposes. (link to study?) At the same time, Nicaragua will face enormous pressures from the national and international business and financial community to stay on track with the IMF and the World Bank to avoid capital flight.

And there is still cause for concern over U.S. intentions in Nicaragua.  Even as Donald Rumsfield resigned in disgrace, Bush appointed an unhappily familiar face to replace him.  As second-in-command at the CIA, Gates oversaw some of the most grievous offences against Nicaragua during the bloody contra-war. The recent shift of John Negroponte, mastermind of covert operations and dirty war during the 1980's, to the State Department is an additional cause for concern. 

The current political realignments in Nicaragua and the US Congress signify an opening to advance the dreams and aspirations of poor people in Nicaragua.  However, the new government faces some formidable challenges.  Our continued solidarity and commitment to the forging of US policies of friendship with Nicaragua are of great importance at this time.

Electoral Results:

FSLN (Daniel Ortega): 38.07%; National Liberal Alliance (Eduardo Montealegre): 29%; Constitutional Liberal Party (José Rizo): 26.21%; Sandinista Renovation Movement (Edmundo Jarquín): 6.44%; Alternative for Change (Eden Pastora): 0.27%.

Number of Legislators per party: FSLN - 40, PLC - 25, ALN - 23, MRS - 4

The FSLN has the biggest bench in the National Assembly, however 62 votes are required as an absolute minimum to pass laws, approve appointments and reform the constitution, requiring the FSLN to establish alliances with other parties in order to pass legislation.