By World Bank
Broad-based development is without doubt one of the 4 pillars of the Nicaraguan Government's Poverty aid approach. residing criteria of the agricultural negative will proceed to rely mostly upon agriculture. This examine takes inventory of significant advancements in Nicaragua's agricultural quarter and argues that broad-based development could be promoted via strengthening agricultural competitiveness. Export development is the main, requiring fast motion inside of a coherent approach. 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 options. The examine studies the difficulty of chance administration and concludes with descriptions of a few promising pilot tasks.
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Additional resources for Agriculture in Nicaragua: Promoting Competitiveness and Stimulating Broad-Based Growth
Increasing Margins by Improving Productive Infrastructure Despite considerable advances in the 1990s in targeted public spending on infrastructure, Nicaragua has considerable deficiencies in productive infrastructure that continue to hamper the competitiveness of Nicaraguan agricultural products in foreign markets. The country has made strides in telecommunications and electricity through privatization and attraction of foreign investment. However, serious bottlenecks remain in the roads network and port infrastructure.
First, it should promote a series of policy measures to create the right environment. These policy measures would have political implications, and should be negotiated openly with the private sector. They would include abstention from direct price controls in inputs and final products and the reduction/leveling of tariffs over time, to allow the government to engage in a process of lowering transaction costs (as is already being accomplished on other fronts, such as economic infrastructure, energy and financial services), and to allow producers to adjust their production patterns to new market signals.
AGRICULTURE IN NICARAGUA 19 TABLE 13: SELECTED INDICATORS TO ESTIMATE CROP COMPETITIVENESS (2001) Crops Number Border Unit Weight in of farms % of total % farms Price* Cost* Current (thousands) farms > 10 mz. GDP Agr. 73 32 100 13 10 62** 62** 62** 30 15 55 5 10 5 15 *At farm-gate price **Tariff for Rice was currently raised to 85 percent. Calculations are however based on the previous value of 62 percent. ***A different methodology was used for sesame due to lack of accurate available data. This estimates are based on international prices rather than border prices.
Agriculture in Nicaragua: Promoting Competitiveness and Stimulating Broad-Based Growth by World Bank