Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social

The international and local Nicaraguan media have widely reported on the “coffee crisis” in Latin America and there is substantial evidence that there has been a downturn and that this has been more severe in the coffee-growing regions. Using household panel data from a randomized community-based in...

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Main Author: Maluccio, John
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2005
Subjects:
Online Access:https://hdl.handle.net/10568/160616
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author Maluccio, John
author_browse Maluccio, John
author_facet Maluccio, John
author_sort Maluccio, John
collection Repository of Agricultural Research Outputs (CGSpace)
description The international and local Nicaraguan media have widely reported on the “coffee crisis” in Latin America and there is substantial evidence that there has been a downturn and that this has been more severe in the coffee-growing regions. Using household panel data from a randomized community-based intervention carried out in both coffee- and noncoffee-growing areas, I examine the role of a conditional cash transfer program, the Red de Protección Social (RPS), during this downturn. While not designed as a traditional safety net program in the sense of reacting or adjusting to crises or shocks, RPS has performed like one, with larger estimated program effects for those who were more severely affected by the downturn. For example, it protected households against declines in per capita expenditures and, while not significantly depressing labor supply relative to before the program, muted additional labor supply for beneficiaries in coffee-growing areas, relative to their counterparts without the program. Beneficiaries who participated in the coffee industry as laborers before the program were more likely to have exited the coffee industry, whereas those who participated as producers were less likely to have exited. The findings are consistent with the existence of credit constraints inhibiting such transitions in the absence of the program. Overall, then, RPS appears to be playing an important part in the risk-coping strategies of households..
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spelling CGSpace1606162025-11-06T04:33:12Z Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social Maluccio, John cash transfers coffee social safety nets income transfers cash crops risk households consumers expenditure labour market impact assessment The international and local Nicaraguan media have widely reported on the “coffee crisis” in Latin America and there is substantial evidence that there has been a downturn and that this has been more severe in the coffee-growing regions. Using household panel data from a randomized community-based intervention carried out in both coffee- and noncoffee-growing areas, I examine the role of a conditional cash transfer program, the Red de Protección Social (RPS), during this downturn. While not designed as a traditional safety net program in the sense of reacting or adjusting to crises or shocks, RPS has performed like one, with larger estimated program effects for those who were more severely affected by the downturn. For example, it protected households against declines in per capita expenditures and, while not significantly depressing labor supply relative to before the program, muted additional labor supply for beneficiaries in coffee-growing areas, relative to their counterparts without the program. Beneficiaries who participated in the coffee industry as laborers before the program were more likely to have exited the coffee industry, whereas those who participated as producers were less likely to have exited. The findings are consistent with the existence of credit constraints inhibiting such transitions in the absence of the program. Overall, then, RPS appears to be playing an important part in the risk-coping strategies of households.. 2005 2024-11-21T09:51:20Z 2024-11-21T09:51:20Z Brief https://hdl.handle.net/10568/160616 en Open Access application/pdf International Food Policy Research Institute Maluccio, John. Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social. FCND Discussion Paper Brief. 188. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160616
spellingShingle cash transfers
coffee
social safety nets
income transfers
cash crops
risk
households
consumers
expenditure
labour market
impact assessment
Maluccio, John
Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social
title Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social
title_full Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social
title_fullStr Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social
title_full_unstemmed Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social
title_short Coping with the “coffee crisis” in Central America: the role of the Nicaraguan Red de Protección Social
title_sort coping with the coffee crisis in central america the role of the nicaraguan red de proteccion social
topic cash transfers
coffee
social safety nets
income transfers
cash crops
risk
households
consumers
expenditure
labour market
impact assessment
url https://hdl.handle.net/10568/160616
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