Rural Development

This presentation is taken from the outcome assessment of the results and lessons learned of Swedish development cooperation with Nicaragua 2001 – 2008 – for full text and detailed references see document Outcome Assessment 2001-2008.

The support in this sector has been focused on two main programs, FondeAgro and PRORURAL. The reports available indicates that the Swedish support to rural development has contributed to “increase the economic opportunities of the poor” in the case of the target groups of FondeAgro. The process of creating a sector wide program PRORURAL is still at an early stage and therefore difficult to assess. There seems, however, to be possibilities for the positive experiences of FondeAgro to be replicated in other parts of Nicaragua by being recognised within PRORURAL as a model for promotion of small scale coffee and milk farming.

FondeAgro

(2001-2008; 260 MSEK)

FondeAgro was designed by the Ministry of Agriculture and Forestry (MAGFOR) and Sida on the basis of previous cooperation in the agricultural sector. The Program started in 2001 with the main objective to increase incomes of small and medium-sized agricultural producers of coffee and milk in six municipalities in two northern departments of Nicaragua. The Program has been guided by a Steering Committee with representatives from MAGFOR and implemented by a Coordinating Unit. This unit manages the funds of the program with international and national staff contracted by a Swedish consulting company. The first phase of the Program lasted from 2001 to 2004 with a contribution of 70 MSEK. The amount contributed to the second phase 2004-2008 was 190 MSEK.

An evaluation of the first phase in 2003 concluded that the program had attained its main goals, including better cultivation practices, improved household economy and an increase in the supply of credits. A midterm evaluation of the second phase in 2006 noted that the program and its components had been well and constantly adjusted to the reality of the target group in response to their demands and needs. An example is the promotion of household garden production by women. The impact in form of better income and reduced poverty was already measurable. The different components of the program were furthermore considered as innovations that ought to be disseminated at the national level.

An external summary of the experiences of FondeAgro commissioned by Sida in 2008 noted that the Program had developed gradually and had a flexibility that allowed it to adapt to changing circumstances. It had operated close to the target group and reached different levels – farms, producers’ organisations, municipalities and the Ministry of Agriculture and Forestry.

 

A presentation of FondeAgro at a seminar on successful experiences of market development in agriculture at Sida in 2009 summarised the result of the program in the period 2001-2008, as follows. 13,000 small farmers with families had benefitted directly, on an average nearly doubling their income since 2001. The farmers reached by the program constituted about 80% of the target group of small farmers with an initial income around the poverty line in the area of intervention (six municipalities). The results in terms of established cooperation among farmers, credit systems and contacts between small farmers and the market (big producers/processing plans and buyers) were estimated to be sustainable in the longer term.

PRORURAL

(2007-2008; 66 MSEK)

PRORURAL is a national program formulated in 2005 as an attempt to create a sector wide program for Productive Rural Development. The overall aim of the program is to increase production, productivity and competitiveness in agricultural and forest production, which is environmentally sustainable and contributes to the reduction of rural poverty. The program includes ongoing activities at the time of its start (specific projects and programs), as well new initiatives, with a total budget of 400 MUSD over a five year period. So far, only a smaller portion of the budget is in the form of a Common Fund (30 MUSD) which has been provided by some of the donors under a joint Memo of Understanding with Nicaragua. Sida contributed 66 MSEK to the Common Fund for the period 2007-2008.

The Midterm Evaluation in 2008 notes that the limited time of implementation, together with the change of government in 2007 and related changes in policies, limits the possibilities to measure results and impact of the program. However, there are positive signs in the form of improved access for small farmers to markets (construction of roads), water supply, credits and technical assistance. The coordination between the seven public institutions in the rural sector has improved to some extent, and the coordination between public institutions and private sector/civil society is also improving, especially at the local level. Coordination between donors, as well as between donors and national institutions is still deficient.