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Evaluating Land Reform in Nicaragua: Hypotheses and Approach *

Evaluating Land Reform in Nicaragua: Hypotheses and Approach *. Land Policies and Legal Empowerment of the Poor World Bank Rural Week Conference November 2006 *Collaborative work with Michael Carter, University of Wisconsin & Juan Sebastian Chamorro, MCA-Nicaragua. Overview.

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Evaluating Land Reform in Nicaragua: Hypotheses and Approach *

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  1. Evaluating Land Reform in Nicaragua: Hypotheses and Approach* Land Policies and Legal Empowerment of the Poor World Bank Rural Week Conference November 2006 *Collaborative work with Michael Carter, University of Wisconsin & Juan Sebastian Chamorro, MCA-Nicaragua

  2. Overview • Background: a) Impact of tenure security programs; b) Insecure property rights in Nicaragua; and c) Analysis of credit and collateral • Challenges of rural development in Nicaragua • The MCC program in Nicaragua • Impact Evaluation Strategy

  3. Background: Impact of tenure security programs • Feder’s seminal work and subsequent literature • Investment demand channel • Credit supply • In Thailand, found some positive effects. • Is land security and transferability sufficient? • Carter and Olinto (AJAE 2002) • Total K increases, proportionally less for smallholders • Probability of being credit “constrained” remained the same for these smallholders. • Additional measures appear needed for the poor

  4. Background: Insecure property rights in Nicaragua

  5. Background: Analysis of credit and collateral in Nicaragua Source: Boucher, S., B. Barham and M. Carter (2005). “The Impact of Market Friendly Reforms on the Operation of Credit and Land Markets in Honduras and Nicaragua,” World Development 33(1): 107-128.

  6. Challenges of Rural Development in Nicaragua • MCA-Nicaragua Proposal identified the following as constraints to growth • Under-developed infrastructure • Low-value added rural businesses • Insecure property rights

  7. The MCC Program in Nicaragua • MCC strategy of country programs, evaluation, etc. • Specifics of Nicaragua Compact • Transportation • Property Regularization • Rural Business Development

  8. Impact Evaluation Strategy

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