Agriculture in Nicaragua: Promoting Competitiveness and by World Bank

By World Bank

Broad-based progress is without doubt one of the 4 pillars of the Nicaraguan Government's Poverty aid method. residing criteria of the agricultural negative will proceed to count principally upon agriculture. This research takes inventory of significant advancements in Nicaragua's agricultural area and argues that broad-based development could be promoted by means of strengthening agricultural competitiveness. Export development is the foremost, requiring instant motion inside a coherent method. The case of espresso is used to demonstrate the proposed strategy.

The examine additionally identifies productiveness constraints in rural issue markets, suggesting medium- and long term recommendations. The examine experiences the difficulty of probability administration and concludes with descriptions of a few promising pilot initiatives.

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Additional resources for Agriculture in Nicaragua: Promoting Competitiveness and Stimulating Broad-Based Growth

Sample text

This is above average, topping the figures for agricultural trade as a share of agricultural GDP in countries such as Costa Rica, Honduras and Ecuador. The high tradability of agriculture in Nicaragua implies that actions to increase access to foreign markets are crucial for the future of the sector. Moreover, the performance of non-traditionals in Nicaragua’s agriculture was the dynamic engine in the 1990s. Agricultural exports in Nicaragua account for more than half of total exports, of which coffee accounts for about a third.

The data clearly demonstrate the inefficient performance of the domestic agricultural marketing system. The lowest agricultural margin between producer and retailer (in the case of tomatoes) is 105 percent, while the highest (white cabbage) is 210 percent. TABLE 9: MARKETING MARGINS FOR SELECTED AGRICULTURAL PRODUCTS Producer Level Product Soybean White cabbage Yellow Onion Table Tomato Banana Wholesaler Level Retailer Level Unit Price (C$) \2 Index Price (C$) \2 Index Price (C$) \2 Index QQ \1 Unit QQ 25 lbs.

6 billion requires debt servicing equivalent to 44 percent of total exports of goods and non-factor services (2000). Finally, Nicaragua’s vulnerability to natural disasters obvious and extreme, with recent disasters including Hurricane Joan in 1988, a tidal wave in 1992, volcanic eruptions in 1992 and 1994, El Niño in 1996–1998, Hurricane Mitch in 1998, droughts in 1996 and 2001 and floods in 2002. 2 PROMOTING COMPETITIVENESS T here is compelling evidence that openness to trade is associated with increased growth.

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