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kosovohp
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Join date : 2010-09-06

PostSubject: Political turmoil    Thu Oct 28, 2010 11:35 am

Political turmoil has had a severe impact on the mining industry. Exports of gold are down, and little effort has been made to develop the large copper deposits of the northeast. Fighting during the revolution destroyed nearly one-third of Nicaragua's industry. As it rebuilds, the government is trying to change the industrial mix of the country and achieve decentralization. Before the revolution, more than 60 percent of the nation's industrial production, by value, was concentrated in Managua. The industrial-decentralization policy may help to slow the growth of the largest cities, while assisting in the redistribution of income to impoverished areas. Major industries include food processing, cement production, metal fabrication, and oil refining. The Centroamérica power plant on the Tuma River in the Central Highlands has been expanded, and other hydroelectric projects have been undertaken to help provide electricity to the nation's newer industries.[90]

The economic core of Nicaragua is located in the Pacific zone, and the rail-and-highway network reflects that concentration of activity. The government-owned rail system—an inefficient money loser—is gradually being replaced by truck transport. Transportation throughout the rest of the nation is often inadequate. For example, one cannot travel all the way by highway from Managua to the Caribbean coast. The road ends at the town of Rama, and the rest of the trip must be completed by riverboat down the Río Escondido—a five-hour journey.[90]

Corinto is the only modern deepwater port in Nicaragua. It handles both agricultural exports and general-cargo imports. Petroleum is unloaded at Puerto Sandino, from which it travels by pipeline to a refinery in Managua. Trade with other nations in Central America has increased in recent years. Nicaragua has long been considered as a possible site for a new sea-level canal that could supplement the Panama Canal

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