Although Nicaragua is officially a democratic republic, political instability and public dissatisfaction has undermined the political process. The country has been affected economically due to these policies as well as the impact of natural disasters. Great wealth has accumulated in the hands of a few and economic resources have been poorly distributed. Food insecurity, lack of access to quality healthcare, and educational discrepancies have widened the gap between the wealthy and most of the remainder of the population in Nicaragua. In response to these struggles, Grace Church has sought to include economic development, provision of medical supplies, and community enrichment efforts in their holistic ministry.

Culturally, Nicaragua has much to offer.  Creativity, humor, hospitality, valuing extended family, and persistence are hallmarks of the culture. While these help contribute to a lively and dynamic society, other cultural norms impede the development of the local church, such as a fatalistic view of life, a distrust of people outside of the family, and a growing consumerist culture.  There is also a prevalent machismo culture, which devalues women and encourages men to be irresponsible in relationships with women. Many homes are fatherless as the result of war, but primarily because men are often forced to travel great distances to find work, sometimes in neighboring countries. This presents a unique opportunity for Grace’s teaching on gender with the Men at Grace curricula and the Women at Grace studies to influence the culture.

Nicaragua has no official religion, and religious freedom has been protected by the Nicaraguan constitution since 1939. In the last 10 years, the largest denomination shifted from the Roman Catholic to the rapidly-growing Evangelical church. Historically, the Catholic Church has been expected to lend its authority and support to government decisions, and the Evangelical church in Nicaragua has often been marked by extreme legalism and an escapist view of life. The entire religious landscape changed when the political crisis began in 2018. Persecution against the Christian Church has been widespread and many NGOs (Non-Governmental Organizations, of which churches and mission organizations are included) have seen their legal status cancelled. Further complicating matters, Evangelical and Catholic communities in Nicaragua are strongly polarized, creating a deep need for spiritually mature and stable leadership. Grace Church seeks to work through the local church, training and caring for pastors and leaders. In the process, those leaders gain tools to speak against the polarization among Christians in Nicaragua and to impact their communities with the gospel.