Violeta Chamorro - Presidency

Presidency

In 1990, after nearly a decade of civil warfare and economic sanctions, Chamorro became the presidential candidate of the National Opposition Union (UNO), a coalition of 14 political parties that ran against the Sandinistas in that year's national elections. Chamorro won the election with a 55% victory over the incumbent, Daniel Ortega. These elections were internationally monitored and provided a relatively smooth transition. The elections were known for being tremendously influenced by the United States: in addition to the White House's insistence that the embargo would continue if Chamorro were not elected, the White House also contributed $9 Million to Chamorro's UNO party. Chamorro's presidency is primarily known for the peace her election allowed for war-ravaged Nicaragua, as the US was expected to continue funding the Contras (and maintain the embargo) if she did not win.

When Chamorro was sworn in, it marked the first time in decades that a sitting government had peacefully surrendered power to the opposition.

Chamorro’s peace reforms are perhaps her most enduring. Most noteworthy was her official declaration of the end of the war; she maintained this peace by a reduction in the size and power of the military, an end to the national draft, and the demobilization of the military. This demobilization included the removal of the US-backed Contras thereby leaving the Sandinistas with no one to fight, and therefore creating a highly effective peace. Chamorro additionally allowed for the Sandinista’s agrarian reform movement’s redistribution of land to be maintained, and retained Daniel Ortega’s brother, Humberto Ortega, as a military leader. While Chamorro received criticism for this accusing her of supporting the Sandinistas, it proved to be a valuable political move. Chamorro also granted unconditional amnesties for political crimes, resulting in little room for protest from the Sandinistas, and creating a smooth transition of power. The only time the “recontras” attempted to resurface was in 1994, and Chamorro quickly suppressed the violence through a peace agreement. Chamorro’s fierce weapon-buying campaign eradicated the threat of persisting violence, and all weapons were covered in concrete at the Plaza de la Paz (Peace Square), specifically built in downtown Managua to symbolize “never again.”

The Nicaraguan civil war devastated the economy, and Chamorro did succeed in developing general economic stability. Chamorro controlled hyperinflation and attempted to turn to a neoliberal model outlined by the Mayorga Plan by attempting to re-integrate Nicaragua into the world market, increase foreign investment while reducing foreign backing, and increase privatization, however this plan was very unpopular in Nicaragua.

The plan failed to solve the overwhelming economic devastation of Nicaragua and was coupled with a rise in unemployment and underemployment. Further aggravating the plight of the poor, in order to control inflation Chamorro was forced to cut government spending by eliminating social programs, particularly for females, though she did encourage the development of a strong educational system. Chamorro was also criticized for rejecting constitutional reforms that included a prohibition of nepotism, a requirement for legislative approval to tax and spend money, a decrease in the length of the presidential term from six to five years, and the expansion of constitutional liberties.