Daniel Ortega - Interim Years (1990–2006)

Interim Years (1990–2006)

In the 1990 presidential election, Ortega lost to Violeta Barrios de Chamorro, his former colleague in the junta. Chamorro was supported by the US and a 14-party anti-Sandinista alliance known as the National Opposition Union (Unión Nacional Oppositora, UNO), an alliance that ranged from conservatives and liberals to communists. Contrary to what most observers expected, Chamorro shocked Ortega and won the election. In Ortega's concession speech the following day he vowed to keep "ruling from below" a reference to the power that the FSLN still wielded in various sectors. He was also quoted saying:

...We leave victorious... because we Sandinistas have spilled blood and sweat not to cling to government posts, but to bring Latin America a little dignity, a little social justice.

— Daniel Ortega

Ortega ran for election again, in October 1996 and November 2001, but lost on both occasions to Arnoldo Alemán and Enrique Bolaños, respectively. In these elections, a key issue was the allegation of corruption. In Ortega's last days as president, through a series of legislative acts known as "The Piñata", estates that had been seized by the Sandinista government (some valued at millions and even billions of US dollars) became the private property of various FSLN officials, including Ortega himself.

Ortega's policies became more moderate during his time in opposition, and he gradually changed much of his former Marxist stance in favor of an agenda of democratic socialism. His Roman Catholic faith has become more public in recent years as well, leading Ortega to embrace a variety of socially conservative policies; in 2006 the FSLN endorsed a strict law banning all abortions in Nicaragua.

Ortega was instrumental in creating the controversial strategic pact between the FSLN and the Constitutional Liberal Party (Partido Liberal Constitucionalista, PLC). The controversial alliance of Nicaragua's two major parties is aimed at distributing power between the PLC and FSLN, and preventing other parties from rising. "El Pacto," as it is known in Nicaragua, is said to have personally benefited former presidents Ortega and Alemán greatly, while constraining then-president Bolaños. One of the key accords of the pact was to lower the percentage necessary to win a presidential election in the first round from 45% to 35%, a change in electoral law that would become decisive in Ortega's favor in the 2006 elections.