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In a stunning landslide defeat, where ABC news had been predicting a 16 point Sandinista victory, the FSLN lost to the National Opposition Union by 14 points in elections on February 25, 1990.
At the beginning of Violeta Chamorro's nearly 7 years in office the Sandinistas still largely controlled the army, labor unions, and courts.
Her government made moves towards consolidating democratic institutions, advancing national reconciliation, stabilizing the economy, privatizing state-owned enterprises, and reducing human rights violations.
In February 1995, Sandinista Popular Army Cmdr.
Gen. Humberto Ortega was replaced, in accordance with a new military code enacted in 1994 by Gen. JoaquĆ­n Cuadra, who espoused a policy of greater professionalism in the renamed Army of Nicaragua.
A new police organization law, passed by the National Assembly and signed into law in August 1996, further codified both civilian control of the police and the professionalization of that law enforcement agency.

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