The report argues that Nicaragua'sbest hope for sustained growth, and poverty reduction,probably lies with agricultural exports, which have thepotential to gain from opportunities in world markets.Despite the small share of farmland devoted to theproduction of exports (25 percent of harvested area), thetotal trade of agricultural goods (including the value ofboth imports, and exports) accounted for almost eighty fivepercent of agricultural GDP in 1998. This is high relativeto several countries in the area. But most likely, the mostpromising is the export performance of non-traditionalagricultural products. The report accords greatest emphasisto improving competitiveness, and recommends giving thisgoal highest priority. To this end, four areas for action toimprove competitiveness have bee identified: modernizingagribusiness; promoting agricultural exports; improving theeffectiveness of public spending; and, strengtheningpublic-private partnerships. These measures will also haveto be complemented by sustained, ongoing efforts to improvefactor market efficiency, suggesting improvements tofacilitate rural finance; boost access to technology,improve land productivity, and, raise labor market'shuman capital. In addition, the significant risks faced bythe country's agricultural sector - natural disastersand economic shocks - call for improved agricultural riskmanagement, through innovative insurance products, andcredit services, as well as improved warning systems toforecast weather related disasters.
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