There have been a number of significant developments in the situation in Nicaragua in the last year. The Contras or the Nicaraguan resistance, as they are referred to by the United Nations, have been demobilised and the Secretary General has expressed himself satisfied with progress made in this area. While initially the new Government faced difficulties with strikes in many sectors, an agreement between employers and unions seems to augur well for stability in the economy.
Mrs. Chamorro's Government have moved towards an open market economy. The Sandinistas, who retain positions of influence in the administration and the armed forces, and hold a substantial proportion of seats in the National Assembly, have played their part in efforts to overcome the difficulties which are facing the country. A significant reduction in army strength has been achieved, in line with the objectives of the Central American Security Commission and the Esquipulas process.