Nicaragua represents a major component of Latin American history in the 19 century. Although Nicaragua, Honduras, Costa Rica, and other countries in Central America are developing countries, there are three major events in its history that has shaped its economic conditions of the present. These include: the enactment of liberal policies, the William Walker affair, and production of bananas in Nicaragua. In early Nicaraguan politics, there was a polarization of beliefs between the liberals and the conservatives as in present day America. The liberals supported the abolishment of slavery, reduction of taxes, and development of the economy. Yet, the conservatives promoted moderation and stability, mainly in agreeance with the catholic church.
