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updated: 7 March, 2007
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Rural poverty in Nicaragua

Nicaragua is the second poorest country in Latin America after Haiti. Poverty is largely a rural problem in Nicaragua, although there are pockets of poverty in the capital, Managua, and in other urban areas. Close to half (43 per cent) of the people in Nicaragua live in rural areas. Two out of three of them (68 per cent) struggle to survive on little more than US$1 per day.

Overall, poverty in Nicaragua has decreased in recent years, dropping from 50.3 per cent in 1993 to 45.8 per cent in 2001, but natural disasters and distortion of commodity prices in the international market led to an increase in poverty in several regions. One of those regions is the coffee-dependent central region, where poverty increased by 5.7 per cent between 1998 and 2001. Although coffee prices rose recently, indebted farmers are still paying off loans.



Who are Nicaragua's rural poor people?

The most vulnerable people in rural areas include the families of small-scale farmers and landless farm workers, and families that combine both agricultural and other income-generating activities on the farm. Off-farm activities are an important source of income. In most rural families, at least one member works off the farm.

Households headed by women, young people under 15 years of age and indigenous people are among the poorest and most disadvantaged groups in rural Nicaragua . About 17 per cent of rural households are managed by women, but only 15 per cent of women hold title to land under their own names, and they receive only 11 per cent of loans. Most rural women cultivate land that is not theirs.


Where are Nicaragua's rural poor people?


Most of Nicaragua 's rural poor people live in the vast, dry central region where natural resources are limited, land has been overexploited and there is a high population density.

Most families live on marginal land, where water is scarce. Still, 80 per cent of the rural poor depend on agriculture for their livelihood, causing a severe strain on the fragile environment.

Rural people's dependence on just a few crops (sorghum and maize in the lowlands and beans and vegetables in the highlands) makes them very vulnerable to market variations and climatic conditions. Recent droughts have seriously affected food security and sources of income.

There is a high rate of seasonal migration to the Pacific region of the country, where workers are needed to harvest crops for export.


Why are rural people poor in Nicaragua?

Ten years of civil war between 1980 and 1990 and an economic crisis that began in 1987 have caused the collapse of the country's economy. Environmental disasters such as Hurricane Mitch, which caused extensive destruction and loss of life in November 1998, have also worsened conditions for the rural poor. Because of limited employment opportunities and inadequate infrastructure such as roads, water and electricity supplies, the incomes and productivity of poor rural people remain at low levels. In 2001, only one out of five extremely poor rural households had access to electricity.


Poor people in rural areas face many constraints, including physical isolation, fragile ecosystems, difficult access to land and other natural resources, low productivity of soils, obstacles to market access and lack of public services such as education and health and legal services.

Unemployment, which averages up to 12 per cent for the country as a whole, exceeds 20 per cent among poor rural families. Many rural people migrate to urban areas or abroad looking for work. Remittances are an important source of income for one in five Nicaraguan families and account for 20 per cent of GDP.

Source: IFAD

 

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Nicaragua
capital: Managua
GNI per capita: US$530 - 1,250
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Geography, agriculture and the economy

Progress on the Millennium Development Goals:

Statistics
Total population (million):
5.3
Rural population density (people per km2), 2002:
119.6
Number of rural poor (million)
1.6
Poor as % of total rural population, 1998:
68.5
GNI per capita (US$), 2003:
740.0
Population living below US$1 a day (%), 2001:
45.1
Population living below US$2 a day (%), 2001:
79.9
Population living below the national poverty line (%):
47.9
Share of poorest 20% in national income or consumption (%), 2001:
5.6
Source: World Bank