The main project of the NED in its founding years was to try to overthrow the democratic government of Nicaragua by violence and terrorism.
Fifty years before, the US had invaded Nicaragua and
created a police organization called the National Guard, which
controlled the country, with US support, under the leadership
of the Somoza clan of dictators. Democratic forces overthrew
this US bloc dictatorship in 1979, promising to hold free
elections, which they did in 1984 and 1990.
The US established
military bases in the neighboring countries (which were also
members of the US-dominated bloc) and led an army, made up
mostly of former members of the National Guard with leadership,
funding, weapons, and airborne support supplied by the US,
against the Nicaraguans. The US instructed this army, called the
Contras, to target the civilian infrastructure, such as schools
and clinics, in a campaign of terrorism that the US thought would
be more effective than limiting their activities to fighting the
Nicaraguan military, which they also fought.
The US also used its influence with other
countries and international lending institutions to further help
destroy Nicaragua's economy. The US's war on Nicaragua killed
thousands of Nicaraguans. (It also destroyed much of the incountry, and
ruined the network of programs established by the Nicaraguan
government which were proving very effective at helping the
Nicaraguans, with impressive gains in health and literacy.
It was very important to the US to prove that the Nicaraguan
economic model couldn't work, so the fact that it was working
had to be erased by destroying it from the outside.)
Nicaragua took the US to the World Court, which found the US guilty of "unlawful use of force" and ordered it to pay
reparations to Nicaragua. The US refused to obey the court.
Funding these activities was the main project of the NED
during its founding years.