Managua

Managua exists because the old capitals—Leon and Granada—could not stop fighting. For centuries, Liberal Leon and Conservative Granada contested control of Nicaragua until a compromise placed the capital in a fishing village between them. Today Managua houses roughly 1.5 million people, nearly a quarter of Nicaragua's population, yet retains the sprawling, centerless character of a city that grew by absorption rather than intention.

The 1972 earthquake destroyed Managua's downtown, and the Somoza regime's corrupt reconstruction left the city without the colonial core that defines Leon and Granada. This created a unique urban form—shopping malls and intersections serve as landmarks because traditional street addresses never developed. Residents navigate by reference to former locations: 'where the old Pepsi factory was' remains valid decades after the factory closed.

The Ortega government has consolidated power in Managua while international sanctions and authoritarian policies reshape the economy. Remittances now comprise 26.6% of GDP, with 82.6% flowing from the United States—creating dependency on a country imposing tariffs and immigration restrictions that threaten this lifeline. Chinese investment in airport conversion, solar plants, and highways signals the geopolitical reorientation that sanctions accelerate.

By 2026, expect US tariff impacts to materialize fully, Chinese infrastructure projects to advance, and Managua's political concentration to intensify as the regime maintains control from a capital that lacks the historical gravity of cities it replaced.