Horse-drawn transportation is quite common in Nicaragua. Everywhere we went horses were a common sight on the road. This was not only a feature of more rural areas, even in major cities you will encounter horse powered vehicles.
I found the use of horses for basic transport rather pleasant, though I only had a brief ride at one of the farms. With one or two exceptions, the horses looked well cared for and in excellent shape. The horse is still a practical and cost effective form of transportation in much of the world. I wonder if we in the US, under pressure from rising oil prices, will once again find the horse a practical form of transport as well.