The Republic of Nicaragua is a constitutional democracy where elections are held on the basis of universal suffrage. In 2006 in elections that were deemed free and fair, voters elected the legislature and the President, the latter a former Sandinista leader who gained a 9-point lead over his rival. The National Assembly (Asamblea Nacional) has 92 members: 90 are elected for a 5-year term by proportional representation, while the other 2 seats are held by the outgoing President and the runner-up in the most recent presidential election. With proportional representation, the 2-party system is no longer a reality in Nicaragua: 3 parties now dominate the National Assembly: the FSLN with 30 seats, the PLC with 25 seats and the ALN with 22 seats.

Constitutional changes have transferred some presidential powers to the assembly. The Central American Court of Justice declared the reforms a violation of the separation of powers mandated by the constitution. A law has now been adopted to implement the constitutional changes when the new National Assembly takes office in January 2007. 22 women serve in the National Assembly. 2 members of the National Assembly claim indigenous heritage.

All persons have the right to equal protection in law. Discrimination on the basis of race, gender, disability, language or social status is prohibited but is still reported.

The judiciary is reported to be subject to corruption and influence from a number of sources. There are reports of police involvement in killings and of physical abuse of detainees to coerce confessions. Impunity and corruption are reported as serious problems. A government anti-corruption campaign is in place.

Freedom of speech and of the press are guaranteed but limited by constitutional provisions. Journalists are harassed and have been subjected to death threats for investigating or writing on sensitive issues. Criminal charges of libel are brought by groups and individuals against journalists. The right to government information is provided in law and is not subject to censorship. Access to the Internet is not restricted.

The country is a source for trafficking in women and girls for the purpose of sexual exploitation. An awareness campaign for police and immigration officials has been introduced. The Ministry of Education has an anti-trafficking programme in secondary schools.

Protection is provided in law for persons with HIV/AIDS against discrimination in employment and health services. Nicaragua is the country in Latin America where the number of people living with HIV increased the most in the last 2 years. While in Latin America, on average, it grew 11%, in Nicaragua it increased approximately 24%. The number of women living with HIV increased over 30%. Violence against HIV/AIDS-positive persons is reported to have lessened, but discrimination against homosexuals is reported.

Primary education is tuition-free, universal and compulsory to age 12. The law is not enforced effectively, and all children do not attend school during the years of compulsory education. Since Nicaragua is one of the poorest countries in Latin America, school participation for many families is limited by their inability to pay associated education costs.

Since 1993 Nicaraguan authorities have implemented school autonomy throughout the country. The concept of "autonomous schools" has meant that families are supposed to pay a "voluntary contribution" to the school. But in practice the contribution is not voluntary, and it prevents many children from enrolling. Each school is administered by a school council of 11 members, of whom 3 are teachers.

Primary education is divided into the basic and second cycle, while the 5 years of secondary education are divided into 3 years of ciclo básico and 2 years of ciclo diversificado. Students can opt for technical or general secondary education. Nicaragua has the third biggest gap between urban and rural education in the world.

Illiteracy is a significant problem. 32.5% of the population aged 15 and over is illiterate the second highest rate in Latin America. Children under 15 make up some 40% of the population. In a report to the UN Committee on the Rights of the Child, the delegation from Nicaragua noted that access to early childhood education is limited.

Efforts are being made to increase the participation of the 80,000 children estimated to be outside the school system. An integrated programme for school nutrition and the provision of school bags and scholarships have been instituted to make it possible for children to attend school. Completion rates are improving in primary education. An Education for Life programme combines studies and employment. Budget limitations have resulted in teachers being paid 73% of the basic national wage.

A 4-year programme begins at age 3. At this level 17% of education is private. The Net Enrolment Rate (NER) is 35%. Of the 9,060 teachers (97% female) working at this level, 22% are trained. The pupil/teacher ratio (PTR) is 22 : 1.

Education is compulsory for ages 7 to 12. Primary school begins at age 7 and continues for 6 years. At this level 15% of education is private: this is the highest rate of privatisation in Central America seventh-highest in Latin America. Though World Bank loans were to be assigned to increase participation in public education, enrolment in private education is on the increase. The NER is 88% (49% female). Of students who enrol in Grade 1, 55% reach the last grade of primary school. 11% of students repeat grades. 26,899 teachers (79% female) work at this level, of whom 75% are trained (53% of men, 81% of women). The PTR is 35 : 1.

Secondary education begins at age 13 and is completed in 5 years. At this level 28% of education is private. 1% of students in lower and 15% in upper secondary education study in technical vocational programmes. The NER is 41 %. 7% of students repeat grades. There are 12,843 secondary teachers, 8,782 (55% female) in lower secondary and 4,061 (57% female) in upper secondary school. 46% of secondary teachers are trained. The PTR is 33 : 1 in lower secondary and 31 : 1 in upper secondary school.

103,557 students (52% female) study in tertiary institutions, giving a Gross Enrolment Rate of 18%. 1,807 Nicaraguan students study overseas, mainly in Cuba (546), the USA (473), Costa Rica (303), Honduras (117) and El Salvador (73). For several weeks in April 2005 thousands of university students and union members organised demonstrations in Managua and other cities to protest increases in transportation costs.

The law prohibits discrimination against persons with physical and mental disabilities, but in practice such discrimination is widespread in education and in other state services. Government assistance to disabled persons is minimal, and there is no specific budget for disabilities. Children are integrated in normal schools using community-based rehabilitation and temporary care centres. Those with severe disabilities attend other schools. Over 800 teachers are trained to focus on children with disabilities. The civil service law requires that all government employees be "physically and mentally able," a provision that excludes disabled persons from employment.

The law provides for the granting of asylum or refugee status in accordance with the 1951 UN Convention relating to the Status of Refugees and its 1967 Protocol, and the government has established a system for providing protection to refugees. The government cooperates with the Office of the UN High Commissioner for Refugees and other humanitarian organisations in assisting refugees and asylum-seekers.

Health and education services for indigenous children and disabled children are insufficient. Unemployment rates are extremely high among the indigenous people. Four major indigenous groups constitute some 5% of the population: the Miskito, the Sumo, the Garifuna and the Rama. The Inter-American Commission on Human Rights has ruled that the government violated the rights of the Miskito and Sumo when it prevented the indigenous political party, the Yatama, from competing in elections. Leaders of the Yatama have announced they will bring charges of genocide and crimes against humanity against some former leaders of the Sandinistas.

Reports do not indicate any restriction of academic freedom, but the laws that limit press freedom apply to any written material.

Gender equality is provided in law, but discrimination persists. The salary differential between men and women is high: men sometimes earn twice as much as women in equivalent positions. Women are the majority of workers in the low-paid education and health service sectors, and they are estimated to make up two-thirds of the informal economy. Women have equal family and property rights.

Sexual harassment in the workplace is reported as a problem. Domestic violence is a criminal offence but is common and under-reported to authorities. Prostitution is legal for persons 14 and older. A sex tourism law prosecutes offenders.

Child labour is widespread. Children aged 14 to 16 may work with parental permission for up to 6 hours, but not at night. Child labour rules are only enforced in the formal sector, while most employment is in the informal sector. More than 6,000 children work on the streets of Managua. In cities thousands of children scavenge in garbage dumps, and in rural areas they work on farms. Tens of thousands work as domestic servants.

Child prostitution is a serious problem. The ILO and foreign governments work to end the worst violations with programmes that focus on returning children to school. Among victims of sexual abuse, 66% are under 18 and 30% under 13.

Workers have the right to form and join trade unions, except for the military and the police. Some 10% of the work force is unionised. Collective bargaining is permitted, and collective contracts are signed with unions. The right to strike is recognised in law, but strikes are rare. Union leaders say that the pre-strike requirements are complex and lengthy. The International Confederation of Free Trade Unions has criticised the strike requirements. The ILO Committee of Experts notes the government should implement legislation to stop employer interference in trade union affairs.

Forced or compulsory labour is illegal, but it takes place. The minimum wage is set in tripartite negotiations and approved by the National Assembly. Key sectors of the economy have different minimum wages, which are reviewed every 6 months. In every sector the monthly minimum wage is below US$155 (2,602 cordobas), the amount the government estimates is needed by an urban family for a basic basket of goods. The minimum wage does not provide a decent standard of living for a worker and family. The standard work week is 48 hours.

Trade union permits (allowing union leaders to work full time for the union while still receiving their work salary) are not granted easily: only 3 out of 12 members of EI affiliate ANDEN have union permits, and another 2 are on unpaid leave, which is a major difficulty for trade union activities. In May, 2004, CGTEN-ANDEN filed a complaint with the ILO with several allegations: violation of the right to collective bargaining, anti-union persecution of its officials, failure to comply with orders for the reinstatement of union leaders, discrimination in the provision of union premises and refusal to allow union leaders access to schools. The case was analysed by the ILO's Committee on Freedom of Association, and most of the subsequent ILO recommendations were implemented by the Nicaraguan government.