Resource information
The report argues that Nicaragua's
best hope for sustained growth, and poverty reduction,
probably lies with agricultural exports, which have the
potential to gain from opportunities in world markets.
Despite the small share of farmland devoted to the
production of exports (25 percent of harvested area), the
total trade of agricultural goods (including the value of
both imports, and exports) accounted for almost eighty five
percent of agricultural GDP in 1998. This is high relative
to several countries in the area. But most likely, the most
promising is the export performance of non-traditional
agricultural products. The report accords greatest emphasis
to improving competitiveness, and recommends giving this
goal highest priority. To this end, four areas for action to
improve competitiveness have bee identified: modernizing
agribusiness; promoting agricultural exports; improving the
effectiveness of public spending; and, strengthening
public-private partnerships. These measures will also have
to be complemented by sustained, ongoing efforts to improve
factor market efficiency, suggesting improvements to
facilitate rural finance; boost access to technology,
improve land productivity, and, raise labor market's
human capital. In addition, the significant risks faced by
the country's agricultural sector - natural disasters
and economic shocks - call for improved agricultural risk
management, through innovative insurance products, and
credit services, as well as improved warning systems to
forecast weather related disasters.
