Agriculture in Nicaragua: Promoting Competitiveness and by World Bank

By World Bank

Broad-based progress is likely one of the 4 pillars of the Nicaraguan Government's Poverty relief approach. dwelling criteria of the agricultural terrible will proceed to count mostly upon agriculture. This examine takes inventory of significant advancements in Nicaragua's agricultural region and argues that broad-based progress may be promoted by means of strengthening agricultural competitiveness. Export development is the major, requiring speedy motion inside of a coherent approach. The case of espresso is used to demonstrate the proposed strategy.

The research additionally identifies productiveness constraints in rural issue markets, suggesting medium- and long term options. The examine reports the problem of probability administration and concludes with descriptions of a few promising pilot tasks.

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

Sample text

This may involve legally requiring quicker reimbursement times, for example, or improvement in targeting eligible operators. The effectiveness of export promotion services (such as those provided by CETREX) could also be improved by further reducing the number of documents required for export operations and eliminating needless duplication of certificates when the same operator is involved. Improve institutional effectiveness at the Customs Service level, to give preferential border crossing for perishable goods, for example.

Favorable treatment from fiscal policy and public expenditures. The explicit taxes paid by agriculture are low—less than 7 percent of total gross revenues—and the sector benefits from 10 percent of total tax exemptions. Moreover, substantial funds, mostly financed by grants from external sources, have been spent on agriculture and on developing rural areas. 3 percent of GDP (World Bank 2001a). Despite this public investment, there has not been a major boost to competitive agricultural production.

Such co-operation can produce far greater benefits for both partners and for the country than a purely public or private sector investment. Public funds are used to mobilize and leverage private sector investments. Development co-operation can thus become cheaper, more efficient and more sustainable in areas such as harvest, processing, packing, storage and shipment. The Public-Private Partnership seems also to be a promising sustainable way to strengthen agricultural research, and provide new technologies to the resource-poor farmers.

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