Nicaragua can be characterized by its agricultural economy, its
history of autocratic government, and its imbalance of regional development.
Almost all settlement and economic activity are concentrated in the western
half of the country. The country’s name is derived from Nicarao, chief of
the indigenous people living around present-day Lake Nicaragua during the
late 15th and early 16th centuries. Nicaragua has a unique history in that
it was the only country in Latin America to be colonized by both the Spanish
and the British. Nicaragua’s population is made up mostly of mestizos
(people of mixed European and indigenous ancestry). The national capital is
Managua, which also is the country’s largest city and home to about
one-sixth of the population.
