NICARAGUA - PROJECT OVERVIEW

Given the rapid success in meeting project targets in the first phase of the program, its low management burden and lean operations, PFID—F&V will extend and expand its program in Nicaragua (see Background for more information on Phase I). This second phase of the program will continue to direct its efforts to the overall goal of increasing the competitiveness of Nicaragua's rural agricultural related economy given its importance to the overall economy. Increasing Nicaragua's competitiveness in the agricultural sector directly corresponds to a reduction in poverty.

Employee at La Union supermarket in Managua readies display of plantains.

PFID—F&V's current approach to addressing these issues is to identify potential buyers and evaluate markets, build lasting alliances between buyers and Nicaraguan suppliers, and partner with various public and private organizations to remove supply chain constraints to increase the sales of fresh produce. This is a market–oriented strategy to access markets for the small– and medium–scale producers and as such, will focus on the needs and wants of the buyers. Further, the program is designed to increase the general capacity of Nicaraguan suppliers to respond to market opportunities and to enhance country performance in the formulation of strategies and policies to help Nicaraguan firms become a major market presence.

Two cross–cutting concerns related to the program goals are to assure: 1) local "ownership" and the sustainability of the program investments; and 2) appropriate gender participation in the program. As part of the PFID—F&V approach to assure sustainability:

• Nicaraguan suppliers will be trained and will be closely involved in identifying buyers, understanding their needs, and building a long lasting relationship with them. The main emphasis is to build linkages between the Nicaraguan suppliers and buyers to maximize the benefits of the free trade agreement between the U.S. and Central America, which is the most efficient and appropriate way to reach sustainable development after the project ends.
• The transaction–initiative approach is another measure to assure sustainability by building suppliers' reputation with buyers, step–by–step, transaction–by–transaction with the goal of forming strong relationships. Nicaraguan suppliers and beneficiary organizations will be closely involved in the process. This program will increase the capacity of suppliers to respond to buyers needs through technical assistance, training and facilitating links with projects that seek to build the physical and financial capacity of the farmers. This capacity and habit of follow–up until all requirements are met will be a key activity to assure that ultimately the Nicaraguan producers will continue the strong business relationships with buyers.
• Building capacity of suppliers, private sector, and governments to meet the phytosanitary and food safety regulations and to carry on these functions independently after the end of the program is critical to its sustainability.
• This program can be used as a model for development in the region. PFID—F&V will use applied research and a lessons learned method to influence the formulation of policy and programs and strategies for the rural development of Nicaragua and Central America.

With respect to gender equity, women have played a major role in the success of the Phase I program. Approximately, one–forth of the program beneficiaries were single mothers and female heads of household. In Nicaragua, women represent 15–20% of the landless workers in rural areas, thus rural off–farm jobs created as a result of crop diversification and increased fruit and vegetable sales are important sources of income for these women who find work in transport, packing, and wage labor. Some 80% of PFID—F&V's assistance was directed to small farmers among which are found a large proportion of female producers.

PFID—F&V will require that its implementing partners aim to balance the participation of women and men in training activities and that services provided should be gender–equitable. When new crops or products are being developed, PFID—F&V expects that there will be excellent opportunities to expand women's participation since there is not likely to be an already established traditional gender division of labor. As new markets arise, PFID—F&V and its implementing partners will tap women's producer and business organizations, as well as women's NGOs, to identify how women can become more involved in exploiting new business and market opportunities.

For further information contact:

PFID—F&V Nicaragua Office: Tomas Membreno, Chief of Party
Tel: 011–505–277–1096
E–mail: pfiddir@cablenet.com.ni

PFID—F&V Michigan State University Office: Luis Flores
Tel: 1–517–432–2214
E–mail: floreslg@msu.edu
USAID Nicaragua Mission: http://www.usaid.org.ni/