Rural Sector Policy Note

This Agricultural Sector Policy Note (the Note) is addressed to the Government of Nicaragua (GON) whose policy decisions will impact on the capacity of agriculture to become a major engine of growth. Its objective is to provide elements for the policy dialogue between the new administration and the World Bank (WB) on how to promote broad-based and sustainable agricultural growth. The Note summarizes extensive analyses undertaken largely by World Bank staff with valuable inputs from counterparts and other agencies. It takes stock of major recent developments, opportunities, challenges and key constraints that prevent agriculture from reaching its potential. It argues that much can be done to strengthen broad-based growth in Nicaragua, one of the four pillars of the Government-s Poverty Reduction Strategy Paper (PRSP). In the short to medium term, living standards of the rural poor will continue to depend largely on agriculture. Broad-based growth in the agricultural sector is also a necessary condition to build a foundatin and launching pad for reducing rural poverty in Nicaragua.