Publication: Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Honduras Case Study, Volume 2. Background Papers and Technical Appendices
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2004-12-31
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2004-12-31
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This regional study encompasses three Central American countries: Nicaragua, Guatemala, and Honduras. The focus of this report is Honduras. The objective of the study is to understand how broad-based economic growth can be stimulated and sustained in rural Central America. The study identifies "drivers" of sustainable rural growth and poverty reduction. Drivers are defined as the assets and combinations of assets needed by different types of households in different geographical areas, to take advantage of economic opportunities, and improve their well-being over time. The study examines the relative contributions of these assets, and seeks to 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. It adopts an asset-based conceptual approach, where assets are defined to include natural, physical, financial, human, social, political, institutional, and location-specific assets, and, focuses on how households deploy their assets within the context of policies, institutions, and risks to generate a set of opportunities. The report further analyzes the quantity, quality, and productivity of assets needed by households in different geographical areas, to exercise their potential for generating long-term growth and improving well-being. Findings indicate that while there are well-defined areas of higher economic opportunity, given their underlying agricultural potential, relatively good access to infrastructure, and high population densities, poverty is widespread, and deep in rural Honduras, particularly in hillside areas. And, although agriculture should form an integral part of the rural growth strategy in hillside areas, despite its limited potential, agriculture alone cannot solve the rural poverty problem, yet, those remaining in the sector need to be more efficient, productive and competitive. It is recommended to move from geographically untargeted investments in single assets, to a more integrated and geographically based approach of asset enhancement with proper complementarities, such as land access and security, technical assistance provision, health and education services, and strong local level institutions,
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“World Bank. 2004. Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Honduras Case Study, Volume 2. Background Papers and Technical Appendices. © World Bank. http://hdl.handle.net/10986/14561 License: CC BY 3.0 IGO.”
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Publication Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Nicaragua Case Study, Volume 2. Background Papers and Technical Appendices(Washington, DC, 2004-12-31)This regional study encompasses three Central American countries: Nicaragua, Guatemala, and Honduras. The focus of this report is Nicaragua. The objective of the study is to understand how broad-based economic growth can be stimulated, and sustained in rural Central America. The study identifies "drivers" of sustainable rural growth and poverty reduction, where drivers are defined as the assets and combinations of assets needed by different types of households in different geographical areas to take advantage of economic opportunities, and improve their well-being over time. The study examines the relative contributions of these assets, and identifies the combinations of productive, social, and location-specific assets that matter most to raise incomes, and take advantage of prospects for poverty-reducing growth. The study's focus on assets is appropriate given historically stark inequalities in the distribution of productive assets among households in the region. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. In Nicaragua, economic potential has a strong spatial pattern, with high potential areas close to the main cities. But to generate substantial gains in poverty reduction and broad-based growth, complementarities between productive, social, and location-specific assets must be addressed. The report thus recommends the move from geographically untargeted investments in single assets, to a more integrated and geographically based approach of asset enhancement with proper complementarities. And, if the development objective is to reach the largest number of poor, invest in a variety of social and productive household assets, in higher potential areas with the highest rural poverty densities. However, remote areas such as the Atlantic, need specialized analyses and differentiated strategies and investments. The report highlights the need for more strategic convergence in linking the investment, and impacts of sectoral projects backed by the Bank, and other donors in the diverse geographical regions of the country.Publication Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Guatemala Case Study, Volume 2. Background Papers and Technical Appendices(Washington, DC, 2004-12-31)This regional study encompasses three Central American countries: Nicaragua, Guatemala and Honduras. The focus of this report is Guatemala. The study is motivated by several factors: First is the recognition that sub-national regions are becoming increasingly heterogeneous, and economically differentiated as part of ongoing processes of development and diversification, with some areas advancing, and others being left behind. Second is the acceptance that one rural strategy does not fit all; design of an appropriately tailored rural strategy requires understanding the assets, markets, and institutions that frame household opportunities and livelihood strategies. Third, rural heterogeneity requires identification of sufficiently homogeneous areas and household types to facilitate policy formulation, investment strategies, and project design. Fourth, there is a need to bridge the gap between conceptual strategies, and their timely implementation in order to obtain tangible and sustainable results. To this end, it is necessary to identify the appropriate sequencing, and complementary of investments in assets needed to drive growth and reduce poverty. The study's focus on assets is appropriate given historically stark inequalities in the distribution of productive assets among households in the region. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. Rural poverty in Guatemala is characterized by three important features. First, geographic isolation, caused by varied topography, and inadequate transport networks, is an important correlate of poverty. The second dominant feature of rural poverty is ethnic exclusion. Poverty rates are far higher among indigenous groups and groups whose primary language is not Spanish. Third, rural poverty is concentrated in particular areas: that is, it has a particularly strong spatial dimension in Guatemala. Findings indicate that the high degree of overlap between high poverty rates, and high poverty densities in areas such as the Western Altiplano, means that investments there should reach significant proportions of the country's rural poor. Thus, to generate substantial gains in poverty reduction and broad-based growth, complementarities between productive, social, and location-specific assets must be addressed. Specifically, the report focuses on access to land, and strong local level institutions, and social capital, to compensate for lack of physical assets. This also requires a move from geographically untargeted investments in single assets, to a more integrated and geographically based approach of asset enhancement, with proper complementarities.Publication Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Honduras Case Study, Volume 1. Executive Summary and Main Text(Washington, DC, 2004-12-31)This regional study encompasses three Central American countries: Nicaragua, Guatemala, and Honduras. The focus of this report is Honduras. The objective of the study is to understand how broad-based economic growth can be stimulated and sustained in rural Central America. The study identifies "drivers" of sustainable rural growth and poverty reduction. Drivers are defined as the assets and combinations of assets needed by different types of households in different geographical areas, to take advantage of economic opportunities, and improve their well-being over time. The study examines the relative contributions of these assets, and seeks to 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. It adopts an asset-based conceptual approach, where assets are defined to include natural, physical, financial, human, social, political, institutional, and location-specific assets, and, focuses on how households deploy their assets within the context of policies, institutions, and risks to generate a set of opportunities. The report further analyzes the quantity, quality, and productivity of assets needed by households in different geographical areas, to exercise their potential for generating long-term growth and improving well-being. Findings indicate that while there are well-defined areas of higher economic opportunity, given their underlying agricultural potential, relatively good access to infrastructure, and high population densities, poverty is widespread, and deep in rural Honduras, particularly in hillside areas. And, although agriculture should form an integral part of the rural growth strategy in hillside areas, despite its limited potential, agriculture alone cannot solve the rural poverty problem, yet, those remaining in the sector need to be more efficient, productive and competitive. It is recommended to move from geographically untargeted investments in single assets, to a more integrated and geographically based approach of asset enhancement with proper complementarities, such as land access and security, technical assistance provision, health and education services, and strong local level institutions,Publication Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Guatemala Case Study, Volume 1. Executive Summary and Main Text(Washington, DC, 2004-12-31)This regional study encompasses three Central American countries: Nicaragua, Guatemala and Honduras. The focus of this report is Guatemala. The study is motivated by several factors: First is the recognition that sub-national regions are becoming increasingly heterogeneous, and economically differentiated as part of ongoing processes of development and diversification, with some areas advancing, and others being left behind. Second is the acceptance that one rural strategy does not fit all; design of an appropriately tailored rural strategy requires understanding the assets, markets, and institutions that frame household opportunities and livelihood strategies. Third, rural heterogeneity requires identification of sufficiently homogeneous areas and household types to facilitate policy formulation, investment strategies, and project design. Fourth, there is a need to bridge the gap between conceptual strategies, and their timely implementation in order to obtain tangible and sustainable results. To this end, it is necessary to identify the appropriate sequencing, and complementary of investments in assets needed to drive growth and reduce poverty. The study's focus on assets is appropriate given historically stark inequalities in the distribution of productive assets among households in the region. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. Rural poverty in Guatemala is characterized by three important features. First, geographic isolation, caused by varied topography, and inadequate transport networks, is an important correlate of poverty. The second dominant feature of rural poverty is ethnic exclusion. Poverty rates are far higher among indigenous groups and groups whose primary language is not Spanish. Third, rural poverty is concentrated in particular areas: that is, it has a particularly strong spatial dimension in Guatemala. Findings indicate that the high degree of overlap between high poverty rates, and high poverty densities in areas such as the Western Altiplano, means that investments there should reach significant proportions of the country's rural poor. Thus, to generate substantial gains in poverty reduction and broad-based growth, complementarities between productive, social, and location-specific assets must be addressed. Specifically, the report focuses on access to land, and strong local level institutions, and social capital, to compensate for lack of physical assets. This also requires a move from geographically untargeted investments in single assets, to a more integrated and geographically based approach of asset enhancement, with proper complementarities.Publication Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Nicaragua Case Study, Volume 1. Executive Summary and Main Text(2004-12-31)This regional study encompasses three Central American countries: Nicaragua, Guatemala, and Honduras. The focus of this report is Nicaragua. The objective of the study is to understand how broad-based economic growth can be stimulated, and sustained in rural Central America. The study identifies "drivers" of sustainable rural growth and poverty reduction, where drivers are defined as the assets and combinations of assets needed by different types of households in different geographical areas to take advantage of economic opportunities, and improve their well-being over time. The study examines the relative contributions of these assets, and identifies the combinations of productive, social, and location-specific assets that matter most to raise incomes, and take advantage of prospects for poverty-reducing growth. The study's focus on assets is appropriate given historically stark inequalities in the distribution of productive assets among households in the region. Such inequalities are likely to constrain how the poor share in the benefits of growth, even under appropriate policy regimes. In Nicaragua, economic potential has a strong spatial pattern, with high potential areas close to the main cities. But to generate substantial gains in poverty reduction and broad-based growth, complementarities between productive, social, and location-specific assets must be addressed. The report thus recommends the move from geographically untargeted investments in single assets, to a more integrated and geographically based approach of asset enhancement with proper complementarities. And, if the development objective is to reach the largest number of poor, invest in a variety of social and productive household assets, in higher potential areas with the highest rural poverty densities. However, remote areas such as the Atlantic, need specialized analyses and differentiated strategies and investments. The report highlights the need for more strategic convergence in linking the investment, and impacts of sectoral projects backed by the Bank, and other donors in the diverse geographical regions of the country.
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