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Bounded by the Pacific Ocean to the west and the Caribbean Sea to the east, Nicaragua lies at the heart of Central America. After more than 40 years of dictatorship, the Sandinista revolution in 1978 led to social reforms, but also to a decade of civil war, which almost destroyed the economy. Right-wing parties have held power since the Sandinistas unexpectedly lost the 1990 elections. Despite the devastation of Hurricane Mitch in 1998, the economy is slowly strengthening.