Throughout its history, Nicaragua has suffered from political instability, civil war, poverty, foreign intervention, and natural disasters. Governments since colonial times have been unable to bring stability and sustainable economic growth. Personal and foreign special interests have generally prevailed over the national interests, and foreign intervention in Nicaraguan political and economic affairs, particularly by the United States, has resulted in various forms of populist and nationalist reactions. The legacy of the past can be seen today in the attitudes toward foreign determine. Although the upper and middle classes tend to emulate North American life-styles and be supportive of United States policies, the Nicaraguan poor are highly suspicious of the culture and political intentions of the United States.

During the 1980s, Nicaragua was the center of Cold War confrontation in the Western Hemisphere, with the former Soviet Union and Cuba providing assistance to the Sandinista government, and the United States supporting anti-government forces. A regional peace initiative brought an end to civil war in the late 1980s. The Sandinistas lost in the 1990 elections, and a new government headed by President Violeta Barrios de Chamorro was installed in April 1990.