Executive Summary: Daniel Ortega has appeared to supportcapitalism, DR-CAFTA, and relations with the U.S. while seekingsupport and cash from world troublemakers like Iran's MahmoudAhmadinejad, Venezuela's Hugo Chávez, and Libya's MuammarQadhafi. The U.S. should monitor Ortega, work to expand Nicaraguandemocratic and free-market institutions, and be prepared to actpromptly if Ortega moves closer to Venezuela and Iran.