Country Profile: Nicaragua

Earthquakes and war have obliterated much of Nicaragua's cultural heritage when, in late October 1998, Hurricane Mitch swept across Central America causing mudslides and flooding, washing out roads and destroying bridges throughout the region. Over 10,000 people died as a result of the hurricane, one of the strongest storms this century.

Environment

Nicaragua is the largest country located at the heart of Central America (130,000 km²), and has a population of approximately 4.3 million, 70% of whom live below the poverty line. It enjoys a tropical climate with two seasons - dry (from November to April) and wet (from May to October). The country is divided into three geographical zones: the Pacific region, with the most fertile soil of volcanic origin (five volcanoes are still active); the Central region distinguished by its mountainous terrain; and the Atlantic region, which is the least inhabited and contains the largest area of rainforest in all of Central America. The country also possesses two fresh-water lakes of significant size. Lake Nicaragua, the largest freshwater lake in Central America (20,000 km² - the size of El Salvador), contains a number of unique biological species, including the only fresh-water shark in the world. It is also of importance to the whole Central American region because of its potential as a continuous source of fresh water for human consumption and irrigation

Agriculture

Other than the export of precious metals, and under-developed industrial and tourist industries, Nicaragua's economy is based almost entirely on agriculture - producing coffee, sugar, peanuts, fruit and beef for export, and kidney beans, corn, rice and other agricultural produce for local consumption. Approximately 50% of the population is involved in agriculture or agro-industrial activity. Non-traditional exports are growing in importance in Nicaragua and in 1996, principal exports included peanuts, melons, mangoes, spices, and ornamental flowers. However, the rate of migration from rural to urban areas is very high and many of the major cities are surrounded by illegal settlements where living conditions are extremely poor.

During the 1980s the Sandinista Government initiated a series of programmes to develop the economy of the country after a twenty-year period of internal conflict and to reverse the migration trend from rural areas. These included the expansion of primary education and health-care and a process of agrarian reform was also begun to provide farmers with the land necessary to generate an income. Unfortunately, changes in fiscal policy by subsequent governments during the last decade have particularly affected the livelihood of small-scale farmers, who produce food for local consumption. The loss of agricultural aid and the general reduction of social service provision provided to rural areas has resulted in further migrations of large numbers of rural people into the cities. Today, more than 50% of the population of Nicaragua lives in its cities.

As a result of the hurricane and the heavy rains that followed, the national agricultural output for 1998 was reduced by at least 14.8%. Approximately 320,000 hectares of agricultural produce were damaged representing 27.3% of the produce intended for local consumption (particularly corn, kidney beans and rice) and 10.4% destined for export. It is estimated that 867,700 people were directly affected by the hurricane, 80% of whom live in extreme poverty in rural areas. The overall loss in the agricultural sector is estimated to be US$136,870,000 which represents more than 5% of GNP.

Small-scale farmers responsible for the production of foodstuffs for local consumption were particularly badly affected by Hurricane Mitch. During the growing season, which lasts from June to October, farmers have the opportunity to plant and harvest two crops. The first crop, or "siembra de primera", is produced between June and August and is used to provide food and income for the household. The second crop, "siembra de postrera", is produced between August and October and provides farmers with the seed required for the next year's plantings. The excess is sold to purchase fertilizer and pesticides and to repay debts. The hurricane resulted in the destruction of the second crop so that the majority of farmers have been forced to depend on external financial aid in 1999 in order to recover from their losses.

Farmer to Farmer extension

Despite these problems, a successful programme has allowed some farmers to become more self-sufficient and to be less dependent on government or external aid. The "Farmer-to-Farmer Programme", an initiative of the National Union of Farmers (Union Nacional de Agricultores y Ganaderos de Nicaragua - UNAG), encourages farmers to share their knowledge and experiences to find solutions to soil infertility, erosion, poor seed germination, low yields and pest management. Founded in 1981 as a non-profit organization, UNAG now boasts 120,000 smallholders, of which 17,000 are women. Sustainable agriculture is promoted through the use of organic agriculture, soil and water conservation, agroforestry and natural methods of pest control and seed production.

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