Nicaragua reduces poverty in rural areas

June 10, 2011 - PRLog -- The International Foundation for the Global Economic Challenge (FIDEG, for its acronym in Spanish) recently presented the results of its “2011 Household Survey to Measure Poverty in Nicaragua”. The aim of this project was to collect information on an annual basis that allows measuring poverty in Nicaragua.

According to the results, poverty in 2010 in the rural area of Nicaragua was reduced by 5 points, while extreme poverty decreased 2.3 points. Those surveyed claimed their conditions improved mainly due to an increase in income through their salary, own business or agricultural activities. Their answers also suggested that access to food and employment had improved during the last year.

Unemployment also decreased among those surveyed, where unemployment in men decreased 31 percent from 2009 to 2010, while in women it decreased 11 percent. Job opportunities were mainly generated in the agricultural and manufacturing sector.

The survey, supported by the Netherlands Embassy and the Swiss Cooperation in Central America, took into account 1,700 households in all regions of the country from August to September 2010. Households whose per capita consumption is less than US$0.93 per day are classified as extremely poor, while households whose per capita consumption is less than US$1.88 per day are generally classified as poor.

The survey uses consumption as a measure of well-being, with the possibility of measuring poverty by both the Poverty Line method and the Unsatisfied Basic Needs method. Additionally, the information collected allows the creation of indicators related to employment, education and health, among others, to assess the country's progress in meeting the Millennium Development Goals.

Gero Vaagt, representative of the Food and Agriculture Organization (FAO) in Nicaragua, declared in November of 2010 that Nicaragua is among the top three countries in Latin America with significant advances in achieving Millennium Development Goal 1, which calls to eradicate extreme poverty and hunger by 2015.

Households included in the 2010 sample were surveyed in 2009 and will be surveyed again in 2011, thus creating a sample of households that allows the study of the conditions of poor households in the country over time, ensuring comparability of results.

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PRONicaragua is the Nicaraguan Investment Promotion Agency, established in 2002. It is a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The agency provides complimentary support services to qualified investors seeking investment opportunities in our country.