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Economy of Nicaragua


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similar to the potato, is an important food in tropical regions. The plant's roots can be eaten boiled and sliced, or ground into flour. Cassava is also the main ingredient in tapioca pudding.

The Pacific lowlands and the middle and southern parts of the Central highlands are the principal cattle-grazing areas. An especially large number of cattle are found to the east of Lake Nicaragua.

Beginning in the 1960s, shrimp became big business on both the Pacific and Caribbean coasts. The main shrimping centers on the Pacific coast are Corinto and San Juan del Sur. Fishing boats on the Caribbean side bring shrimp as well as lobsters into processing plants at Puerto Cabezas, Bluefields, and Laguna de Perlas.

The lumber industry, concentrated mainly in the eastern third of the country, has been lethargic since 1980, with its activities limited by several problems. First, the best trees in the most accessible places have already been cut down. In addition, pure groves of trees are uncommon in tropical forests. Hundreds of species per acre are generally the rule, complicating the task of harvesting. Moreover, the most valuable dense hardwoods will not float. As a result, these trees must be trucked out of the forest rather than floated downriver to a sawmill. Finally, more restrictions are being placed on lumbering due to increased environmental concerns about destruction of the rain forests. But lumbering continues despite these obstacles; indeed, a single hardwood tree may be worth thousands of dollars.

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% of the nation's industrial
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