Public Investment Targeting in Rural Central America

This paper uses an asset-base framework to analyze the determinants of rural growth and poverty reduction for the three poorest countries in Central America: Guatemala, Honduras and Nicaragua. High inequalities in the distribution of productive assets in all three countries constrain how the poor share in the benefits of growth, even under appropriate policy regimes. Heterogeneous conditions require complementary analysis of spatial determinants of well-being, analysis of household-level assets, and how household livelihood strategies, conditioned on spatial attributes and asset bases, determine well-being outcomes. Using a combination of GIS mapping techniques and quantitative household analysis, we generate a description of rural territories that recognizes the differential effects of policies and asset bundles across space and households. We identify the asset combinations that matter most to raise household well-being and take advantage of poverty-reducing growth. In all three countries, investments have generally been directed toward more favored areas. But area economic potential does not automatically translate into improved well-being for all households. We found a strong overlap between economic potential, poverty rates and poverty densities in Guatemala and Honduras but not in Nicaragua. This implies that while in Guatemala and Honduras public investments may be targeted toward the Western Altiplano and the hillside areas respectively, in Nicaragua high poverty rates but low poverty densities in the Atlantic zone, and somewhat lower poverty rates but high poverty densities near Managua and other urban centers in the Central and Pacific regions, present a trade-off which makes targeting decisions more complicated.Community/Rural/Urban Development,

Identifying the drivers of sustainable rural growth and poverty reduction in Honduras

"The overall objective of this paper is to develop an appropriate conceptual and analytical framework to better understand how prospects for growth and poverty reduction can be stimulated in rural Honduras. We employ complementary quantitative and qualitative methods of analysis, driven by an asset-base approach. Emphasis on assets is appropriate given high inequalities in the distribution of productive assets among households and geographical areas in Honduras. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. We focus on household assets (broadly defined to include natural, physical, human, financial, social and locational assets) and their combinations necessary to take advantage of economic opportunities. We examine the relative contributions of these assets, and identify the combinations of productive, social, and location-specific assets that matter most to raise incomes and take advantage of prospects for poverty-reducing growth. Factor and cluster analysis techniques are used to identify and group different livelihood strategies; and econometric analysis is used to investigate the determinants of different livelihood strategies and the major factors that impact on income. Spatial analysis, community livelihood studies and project stocktakings are brought in to complement some of the more quantitative household survey data used. Our conclusions and recommendations are mainly focused on hillsides and hillside areas since the majority of the available data is for these areas." Authors' AbstractPoverty alleviation Latin America ,Sustainability ,Livelihoods ,Spatial analysis (Statistics) ,Hillside areas ,

Geography, Livelihoods and Rural Poverty in Honduras: An Empirical Analysis using an Asset-base Approach

The overall objective of this paper is to develop an appropriate conceptual and analytical framework to better understand how prospects for growth and poverty reduction can be stimulated in rural Honduras. We employ complementary quantitative and qualitative methods of analysis, driven by an asset-base approach. Emphasis on assets is appropriate given high inequalities in the distribution of productive assets among households and geographical areas in Honduras. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. We focus on household assets (broadly defined to include natural, physical, human, financial, social and locational assets) and their combinations necessary to take advantage of economic opportunities. We examine the relative contributions of these assets, and identify the combinations of productive, social, and location-specific assets that matter most to raise incomes and take advantage of prospects for poverty-reducing growth. Factor and cluster analysis techniques are used to identify and group different livelihood strategies; and econometric analysis is used to investigate the determinants of different livelihood strategies and the major factors that impact on income. Spatial analysis, community livelihood studies and project stocktakings are brought in to complement some of the more quantitative household survey data used. Our conclusions and recommendations are mainly focused on hillsides and hillside areas since the majority of the available data is for these areas.

Geographic space, assets, livelihoods and well-being in rural Central America

"This paper uses an asset-base framework to analyze the determinants of rural growth and sustainable poverty reduction for the three poorest countries in Central America: Guatemala, Honduras and Nicaragua...Using a combination of GIS mapping techniques, quantitative household analysis, and qualitative analyses of assets and livelihoods, the authors generate a description of rural territories that recognizes the differential effects of policies and asset bundles across space and households. They identify the combinations of human, natural and physical, social and location-specific assets that matter most to raise household well-being and take advantage of prospects for poverty-reducing growth." from Authors' AbstractPoverty reduction ,rural livelihoods ,Households Economic aspects ,

Land Management Decisions and Agricultural Productivity in the Hillsides of Honduras

Increasing land degradation and concomitant low agricultural productivity are important determinants of rural poverty in the hillside areas of Honduras. Using data at the levels of the farm household, parcel and plot, we develop an econometric modeling framework to analyze land management decisions and their impact on crop productivity. Our econometric model allows for endogenous household decisions regarding livelihood strategy choice, use of labor and external inputs, and participation in organizations. We found support for the inverse farm size-land productivity relationship which suggests that improved land access could increase total crop production. Land tenure has no impact on crop productivity, but adoption of soil conservation practices is higher on owner-operated than leased plots. Ownership of machinery and equipment and livestock ownership both positively influence crop productivity. Education positively affects perennial crop productivity. The gender of the household head has no significant effect on crop productivity, but does influence some land management and input use decisions. Even though household participation in training programs and organizations has only limited effects on crop productivity, agricultural extension plays a key role in promoting adoption of soil conservation practices. Location assets have limited impacts on crop productivity but do influence land management decisions. Road density and better market access have a positive effect on perennial crop productivity. Population density has limited direct impact on crop productivity, though it may have indirect effects by affecting farm size and livelihood strategies.agricultural productivity, hillsides, Honduras, land management, soil conservation, Land Economics/Use, Productivity Analysis,

An interdisciplinary approach to regional land use analysis using GIS, with applications to the Atlantic Zone of Costa Rica

"Policymakers and other stakeholders concerned with regional rural development increasingly face the need for instruments that can improve transparency in the policy debate and that enhance understanding of opportunities for and limitations to development. To this end, a methodology called SOLUS (Sustainable Options for Land Use) was developed by an interdisciplinary team of scientists over a 10-year period in the Atlantic Zone of Costa Rica. The main tools of SOLUS include a linear programming (LP) model, two expert systems that define technical coefficients for a large number of production activities, and a geographic information system (GIS). A five-step procedure was developed for GIS to spatially reference biophysical and economic parameters, to create input for the expert systems and the LP model, to store and spatially reference model output data, and to create maps of both model input and output data. SOLUS can be used to evaluate the potential effects of alternative policies and incentive structures on the performance of the agricultural sector. A number of practical applications demonstrate SOLUS’ capability to quantify trade-offs between economic objectives (income, employment) and environmental sustainability (soil nutrient balances, pesticide use, greenhouse gas emissions). GIS-created maps visualize the spatial aspects of such trade-offs and indicate hotspots where local goals may conflict with regional goals." -- Authors' AbstractPRISI; IFPRI3; CRODSG

Trade liberalisation and the Central American textile industry

PRIFPRI4; CRODSG

Determinants of income-earning strategies and adoption of conservation practices in hillside communities in rural Honduras

PRIFPRI3; GRP5; ISI; Theme 3; Subtheme 3.2; Managing natural resources; DCA; Land Resource Management for Poverty ReductionEPTD; DSG

Motores de crecimiento rural y priorización de inversiones públicas en América Central

Non-PRIFPRI4; CRODSG

an empirical analysis using an asset-base approach

The overall objective of this paper is to develop an appropriate conceptual and analytical framework to better understand how prospects for growth and poverty reduction can be stimulated in rural Honduras. We employ complementary quantitative and qualitative methods of analysis, driven by an asset-base approach. Emphasis on assets is appropriate given high inequalities in the distribution of productive assets among households and geographical areas in Honduras. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. We focus on household assets (broadly defined to include natural, physical, human, financial, social and locational assets) and their combinations necessary to take advantage of economic opportunities. We examine the relative contributions of these assets, and identify the combinations of productive, social, and location-specific assets that matter most to raise incomes and take advantage of prospects for poverty-reducing growth. Factor and cluster analysis techniques are used to identify and group different livelihood strategies; and econometric analysis is used to investigate the determinants of different livelihood strategies and the major factors that impact on income. Spatial analysis, community livelihood studies and project stocktakings are brought in to complement some of the more quantitative household survey data used. Our conclusions and recommendations are mainly focused on hillsides and hillside areas since the majority of the available data is for these areas.Non-PRIFPRI5; DCA; CRODSG