The significance of the Contras in the 1980s political landscape of Nicaragua lies in their role as a counter-revolutionary force against the Sandinista government, which had come to power after the 1979 revolution that overthrew the Somoza dictatorship. The Contras, funded and supported by the U.S. government, aimed to undermine the Sandinista regime, which was perceived as communist and aligned with Moscow. This support, however, led to controversy, particularly with the Iran-Contra Affair, where funds from secret arms sales to Iran were funneled to the Contras. The conflict exemplified Cold War tensions in Latin America, impacting U.S. foreign policy significantly.