Download Agriculture in Nicaragua: Promoting Competitiveness and by World Bank PDF

By World Bank

Broad-based progress is among the 4 pillars of the Nicaraguan Government's Poverty relief technique. dwelling criteria of the agricultural bad will proceed to rely mostly upon agriculture. This learn takes inventory of significant advancements in Nicaragua's agricultural area and argues that broad-based progress will be promoted by way of strengthening agricultural competitiveness. Export development is the main, requiring rapid motion inside of a coherent technique. The case of espresso is used to demonstrate the proposed strategy.

The learn additionally identifies productiveness constraints in rural issue markets, suggesting medium- and long term options. The examine reports the problem of chance 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

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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. Source: PROVIA 2002 in rural areas have been substantial, but they have not been cost-effective. Their high variability from year-to-year in quantity and focus has undermined implementation.

14 However, maize has certain peculiarities that set it apart. First, tariffs for maize are low (10 percent) if compared with sorghum and sugar cane (30 percent and 55 percent respectively). Second, for maize production Nicaragua is self-sufficient with marginal levels of exports. Maize is practically a non-tradable, with about 141,000 farms (or 71 percent of all farms) producing white maize for human consumption. Given the tariff level, the high Nominal Protection Rate (NPR) exhibited for maize is derived from high transaction costs along the trade chain.

Price support (via protection/non-monetary) B. Waiving of tariffs on agricultural inputs Support through public exp. in agriculture* Estimation of total support Gross agricultural product Coeffcient of support to agriculture * excludes infrastructure and rural integrated projects Source: PROVIA, 2002. 22 WORLD BANK COUNTRY STUDY Collaboration and coordination among the two actors can lead to the production of some essential collective goods and services still not provided by individual actor (Linder 2000).

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