Rural employment and agrarian markets in transition: Nicaragua (1979–89)

Abstract

The article deals with state intervention in agrarian produce markets and the rural labour market in post‐revolutionary Nicaragua. Basing itself in the debate about the Nicaraguan agrarian class structure, it analyses the development of the internal terms of trade, the rapid integration of the peasantry in the market and its positive response to recent liberalisation measures. The labour market seems to show developments contrary to economic logic. Detailed analysis concludes that labour demand declined more slowly than supply. However, only recently this led to higher real wages after a long period of deterioration. Further income differentiation also seems a possible unwanted outcome.

Notes

Roelofsstraat 43, VK 2596, The Hague, The Netherlands. During the period 1986–89, the author served as an adviser to the Department of Agricultural Economics of the National Autonomous University of Nicaragua in Managua, on behalf of the Free University of Amsterdam, Department of Agriculture and Development Economics, and the Dutch Ministry of Development Cooperation. He would like to express his gratitude for the useful suggestions on earlier versions of the article made by the editors of the Journal, Harrie Clemens (UNDP/Panama), Frank Kramer (Siena College, New York) and the participants of the ILO/UNDP/PREALC seminar on Rural Employment and Rural Poverty in Central America, Panama, January 1989.