By World Bank
Broad-based progress is among the 4 pillars of the Nicaraguan Government's Poverty aid approach. residing criteria of the agricultural negative will proceed to count mostly upon agriculture. This research takes inventory of significant advancements in Nicaragua's agricultural region and argues that broad-based development could be promoted by means of strengthening agricultural competitiveness. Export progress is the main, requiring speedy motion inside of a coherent technique. 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 ideas. The research studies the problem of possibility 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
When services are available, technical assistance is provided by either external partners (importers) or by projects financed by the donor’s community. The reluctance of the private sector to step in to provide specialized services is explained by the low price differential in the domestic market in the case of fruit and vegetables and the undifferentiated external market in the case of coffee and sesame. Organic products (cocoa, coffee, sesame and vegetables) are an important exception. Two private companies provide certification services.
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.
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. Why? There are two major reasons. One is the incoherence of the overall incentive system for a country that has embraced trade openness and integration in the global market.