## Technical Progress Report on National Human Development Plan as of 2010 (_cr11323)

## Source details

**Canonical URL:** [Technical Progress Report on National Human Development Plan as of 2010 (_cr11323)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11323.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11323.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11323.pdf.json)

---

### Executive summary — orientation and principal outcomes
- Operational goal: economic growth with increased employment and reduced inequality and poverty.
- Principal drivers of progress 2007–2010:
  - Redistributive government policies with positive results.
  - Economic recovery and positive economic growth despite global financial and economic crisis.
  - Climate of confidence, greater social cohesion, national alliances, increased investment.
- NHDP timeline:
  - Presented preliminarily April 2008; final version October 2008.
  - “Updated Technical Summary of the 2009-2011 NHDP” approved September 2009.
- Citizen Power Model: places humans at center; restores State role and prioritizes economic growth, employment, poverty and inequality reduction, and restoration of rights.

### Reducing inequality and poverty — measured outcomes and program drivers
- Income distribution and inequality:
  - Nicaragua ranked second in Latin America for reduction in income GINI (Venezuela leader).
  - Income GINI coefficient: 2005 0.51; 2009 0.46; change -0.05.
- Consumption GINI:
  - National: 2005 0.41; 2009 0.37; change -0.04.
  - Urban: 2005 0.38; 2009 0.35; change -0.03.
  - Rural: 2005 0.34; 2009 0.31; change -0.03.
- Poverty (EMNV consumption-based):
  - General poverty: 2005 48.3 percent; 2009 42.5 percent; change -5.8 percentage points.
  - Extreme poverty: 2005 17.2 percent; 2009 14.6 percent; change -2.6 percentage points.
  - Rural vs urban (2005 vs 2009):
    - Rural general poor: 2005 70.3; 2009 63.3; change -7.0.
    - Urban general poor: 2005 30.9; 2009 26.8; change -4.1.
    - Rural extreme poor: 2005 30.6; 2009 26.6; change -3.9.
    - Urban extreme poor: 2005 6.7; 2009 5.6; change -1.1.
- Poverty (international PPP lines):
  - ≤ US$1.25 per day: 2005 11.2 percent; 2009 5.5 percent; change -5.7 percentage points.
  - ≤ US$2.00 per day: 2005 31.6 percent; 2009 21.0 percent; change -10.6 percentage points.
  - By area (≤ US$1.25): urban change -2.3 percentage points; rural change -9.8 percentage points.
- Depth and severity (consumption):
  - National extreme poverty depth index 2009: 3.6.
  - Urban extreme poor depth 2009: 1.16; rural extreme poor depth 2009: 6.82.
  - National extreme poverty severity 2009: 1.34; urban 0.35; rural 2.64.
- Unmet Basic Needs (UBN) changes 2005–2009:
  - Overcrowding fell by 10.9 percentage points.
  - Limited education fell by 10.4 percentage points.
  - Inadequate housing reduced by 0.6 percentage points.
- Programmatic coverage and instruments (2007–2010):
  - Zero Hunger (PPA / BPA) delivered 59,755 production bonds by Dec 30, 2010 (goal 84,000 families 2007–2011).
  - Zero Usury: loans to 90,209 women; 155,786 loans totaling C$827.1 million.
  - Banco Produzcamos created March 2010.
  - ALBA CARUNA financing to small/medium producers: C$1,365,300 to 47,530 producers (selected figures reported elsewhere as C$1.3653 billion under other tables).

### Growth — macroeconomic policy, crisis impact, and recovery
- Macroeconomic objectives and instruments:
  - Sustainable fiscal deficit management.
  - Monetary policy to guarantee currency confidence and financial system stability.
  - Exchange policy: sliding currency rule (convertibility with gradual devaluation; devaluing cordoba at five percent per year vs dollar) and Open Market Operations as principal instrument.
  - Accumulate international reserves to cover at least twice the monetary base.
- Crisis and recovery performance:
  - 2007 GDP growth: 3.1 percent (or 3.6 percent in some tables); projections 2008–2011 between 4.2 percent and 5 percent.
  - 2008 actual referenced baseline growth: 2.8 percent (projected 4.2 percent).
  - 2009 outcome: economic activity declined by 1.5 percent due to declines in exports, FDI, remittances, and external bank credit.
  - 2010 outcome: GDP growth 4.5 percent.
- IMF ECF program:
  - Fourth and fifth review approved November 19, 2010; program extended one year; disbursed 12.8 million SDRs (equivalent of US$19.6 million).
  - ECF policy objectives: (i) keeping prices stable; (ii) safeguarding NFS soundness; (iii) strengthening BCN legal framework.
  - New Organic Law of the BCN approved July 2010.
- Fiscal stance and contingency pillars (Program for Defense of Production, Investment, Growth, and Employment approved January 2009):
  - Five pillars: (i) financial stability; (ii) prioritized public investment; (iii) support for production and private investment; (iv) solidarity-based employment; (v) fiscal austerity.
  - Fiscal adjustment in 2009: expenditure budget adjusted by 2.2 percent of GDP.
  - NFPS deficit after grants: 2009 1.9 percent of GDP (0.8 percent 2008); 2010 0.5 percent of GDP.
  - LEF reform effects 2010: revenue increase C$1.4807 billion; outlays increased C$1.2077 billion; fiscal deficit after grants reduced by C$504 million.

### Public investment policy and budgetary effort to combat poverty
- Aggregate public investment 2007–2010:
  - Total US$3.3585 billion; annual average US$841.0 million (13.5 percent of GDP).
  - Compared to 2002–2006 annual average US$536.8 million (11.7 percent of GDP).
  - Annual average increase: US$304.1 million (56.7 percent).
- Distribution by impact level (2007–2010):
  - First-level programs (greatest impact on income distribution): US$2.5999 billion (77.4 percent of 07-10 resources); annual average US$650.0 million (10.5 percent of GDP).
  - Social sectors (2007–2010 executed spending): US$2.2117 billion (65.9 percent).
  - Productive sector absorbed US$748.0 million (21.0 percent).
  - Improved spending efficiency: US$94.1 million (2.8 percent of first-level amount).
- PIP execution performance:
  - Execution increased from 85.6 percent in 2007 to 93.4 percent in 2010.
  - Sectoral priorities concentrated on transportation, community works/services, water/sewerage/sanitation, education, health, energy, agriculture/forestry/fisheries.

### External sectors, exports, FDI, and financing
- Exports and trade performance:
  - Exports (US$): 2000 US$692.4 million; 2010 US$1.8511 billion; average annual growth 11.4 percent (15.7 percent during 2007–07 reported).
  - Export growth by year: 2007 17.1 percent; 2008 20.7 percent; 2009 -5.5 percent; 2010 32.8 percent.
  - As of June 2011 exports grew 27.7 percent year-on-year; projection US$2.14 billion by year-end 2011 (as of June 30, 2011 projection elsewhere US$2.1397 billion).
  - 2010 exports were 77.3 percent above 2006 level.
  - Goods expansion 19.9 percent; services component decline 4.7 percent.
- Foreign Direct Investment:
  - FDI 2010: US$508 million.
  - 2011 estimate: FDI in 2011 expected to be twice the 2010 figure of US$508 million (estimate statement preserved).
  - Total FDI attracted 2007–2010: US$1,949,942,848.
  - FDI by sector 2007–2010 totals: Energy US$669,037,454; Telecommunications US$522,174,725; Free-trade zones US$366,819,530; Total 2007–2010 US$1,949,942,848.
  - Number of source countries increased from 22 in 2007 to 38 in 2010.
- External resources disbursed (2007–2010 totals, millions US$):
  - Grants total 2007–2010: 1,234.5; Loans total 2007–2010: 1,102.0; Total 2007–2010: 2,336.5 (Table 15).
  - Average annual external cooperation disbursed 2007–2010: U$584.1 million (3.2 percent more than 2002–2006 average U$566.2 million).
- Balance of payments and reserves:
  - Current account deficit 2009: US$832.1 million (13.4 percent of GDP).
  - Current account deficit 2010: rose to 14.8 percent of GDP.
  - GIR (Gross International Reserves): end-2009 US$1.573 billion (2.6 times monetary base); end-December 2010 US$1.799 billion (2.7 times monetary base).
  - IMF SDR allocation during 2009: 164.4 million dollars noted.
  - External debt balance increased from 56.2 percent of GDP in 2008 to 59.5 percent in 2009.
  - Debt relief 2009 MDRI/HIPC: relief on current service US$15.7 million; forgiveness of debt arrears US$163.2 million.

### Sectoral growth and productive policies — agriculture, manufacturing, fisheries, energy, tourism
- Sectoral growth in 2010:
  - Agriculture and livestock: 7.7 percent.
  - Manufacturing: 7 percent.
  - Trade and services: growth overall, except financial services.
  - Construction: less contractive, signs of recovery.
- Agriculture and food security:
  - Rural production represents 28 percent of the national economy; agricultural, fishing, and forestry account for 71 percent of exports.
  - National Seed Plan deliveries (2007–2010): 131,236 quintals of seed and 87,602 quintals of urea or NPK; benefited 208,462 small producers.
  - Food Production Program (PPA / Zero Hunger) 2007–2010 capitalized 59,755 rural women and families; organized 1,256 savings fund groups; 182 groups became cooperatives.
  - ENABAS operations: gathers 1,770,444 quintals and distributes through 3,817 points of sale.
  - Change in production 2009–2010 vs 2006–2007: rice +4.68 percent; corn +4.15 percent; yields rice +24.63 percent; beans +11.24 percent noted in source headings.
- Fishing and aquaculture:
  - Production increased from 43.9 million pounds in 2006 to 70.8 million in 2010 (61.3 percent increase).
  - Exports 2006: 32.7 million pounds valued US$111.7 million; 2010: 57.2 million pounds valued US$165.2 million.
- MSMEs and industry:
  - MSME sector: >90 percent of corporate base; 40 percent of GDP; generates 70 percent of employment.
  - CAMIPYME served >40,000 MSMEs over last three years.
  - Manufacturing added value grew by 7 percent.
  - Textile and clothing exports grew by 18.9 percent in 2010; free-trade zone exports grew by 31.4 percent in 2010.
- Energy sector outcomes and projects:
  - Resolved blackout crisis by installing 240 MW via ALBA plus additional 110 MW; total 350 MW by end-2010.
  - Nominal installed capacity in excess of 1,000 MW for first time; effective capacity 827.3 MW.
  - Generating capacity increased by 350 MW by end-2010: 290 MW ALBANISA/Taiwan; 60 MW Amayo 1 and 2 Wind Plants.
  - Private and public investment in energy sector: US$1.44 billion.
  - Total final energy consumption increased 18 percent: from 2,133.21 GWH in 2005 to 2,520.21 GWH in 2009.
  - Planned additional generation (2012–2016): total 610.3 MW; total investment US$2,449,700,000.00; projects include Tumarín 253 MW (US$1,150,000,000.00) and others with specified MW and investment figures.
  - PNESER approved 2010 (IDB financing) objective: increase coverage from 66.7 percent (prelim 2010) to 86.6 percent (prelim 2015).
- Tourism:
  - 2007–2010 visitors: 3,451,098; cumulative growth 37 percent.
  - 2010 foreign tourists: one million; cumulative growth 34.9 percent during 2007–2010; total tourists 3,601,052.
  - Monetary income from tourism 2007–2010: $1.199 billion (other section cites US$1.990 billion 2007–2010; preserve both source figures as reported in the document).

### Social welfare, education, health, and social protection
- Education outcomes:
  - Illiteracy fell from 22 percent in 2006 to 3.0 percent in 2010.
  - Literacy provided to 532,641 people during 2007–2011.
  - Net primary enrolment rate (NER) 2010: 87.5 percent (NHDP goal 88.0 percent).
  - Primary retention 2010: 91.2 percent; primary pass rate 2010: 90.6 percent.
  - Secondary enrollment 2010: 458,321 students; secondary pass rate 2010: 91.10 percent; secondary retention 2010: 85.40 percent.
  - School feeding 2010: 75,602,333 servings to 966,647 children; 2007–2010 total servings 440,418,486.
  - Classrooms built/repaired/expanded 2007–2010: 3,992.
- Health outcomes and services:
  - Right to free universal healthcare restored.
  - Malaria API 2009: 0.107 per 1000 inhabitants.
  - Tuberculosis incidence all forms 2003 41.9; 2009 39.8 per 100,000 inhabitants.
  - Maternal mortality: 2006 76.5; 2009 59.8 per 100,000 live births; preliminary 2010 67.4; 2015 goal 40.
  - Infant deaths: 2007 1,947; 2010 preliminary 1,876.
  - Health infrastructure units in 2010: 1,222 (132 more than in 2006).
  - Medical consultations increased from 6,630,743 in 2006 to 11,708,296 in 2010 (76.6 percent).
  - Vaccination coverage: Pentavalent third dose 2009 98.56 percent; 2010 almost 100 percent (136,150 in 2009; 137,536 in 2010 reported in source).
- Social security (INSS) and pensions:
  - Insured population 2010: 534,879 (increase 21.8 percent over 2006).
  - Coverage in 2010: 20.3 percent of EAP.
  - Active employers registered 2010: 21,204 (increase 32.6 percent vs 2006 15,990).
  - Pensions paid 2010: 123,824; average pension 2010: C$2,950.9.
  - Minimum pensions revalued: from C$1,212.70 per month in 2006 to C$2,284.86 in 2010 (increase 88.4 percent); benefitting 53 percent of pensioners.
  - Pensions to mothers of fallen increased from 19,663 in 2006 to 24,430 in 2010 (24.2 percent); amount increased from C$442.00 to C$1,640.00 per month (271 percent).
- Child and family protection:
  - AMOR program restored rights and integrated beneficiaries into services.
  - From 2008 to 2010 restored right to a name for 64,156 children under age 12.
  - 2007–2010 average incorporation into education: 10,534 children/adolescents annually (1,909 more than in 2006).
  - First National Survey of the Disabled (2010): identified 126,316 disabled persons.

### Environment, forests, coastal management, and disaster policy
- Forests and reforestation:
  - Estimated deforestation: 70,000 hectares per year.
  - National Reforestation Crusade reforested 82,343 hectares; reduced forest fires by 95 percent and hot spots by up to 56 percent.
  - National forest inventory 2009: forests cover 25 percent of country = 3,254,145 hectares; natural forest 98 percent = 3,180,466 hectares; forest plantations 2 percent = 73,679 hectares.
- Protected areas and biodiversity:
  - 75 percent increase in protected areas; action plans for 54 of 72 areas; demarcation/signposting of 17 legally protected areas.
  - Cayos Perlas declared wildlife refuge covering 32,000 hectares; Ometepe Island declared UNESCO biosphere reserve.
- Water and coastal management:
  - Law No. 620 General Law on National Waters and Presidential Decree 106-2007 regulations enacted.
  - Law 690 Law on Development of Coastal Areas and Decree No. 78-2009 regulations approved.
  - Río Viejo subbasin measures: 272 water harvesting works; 2,153 hectares tree cover/soil conservation; benefitted 3,343 families.
- Disaster risk management:
  - Early Warning Systems (EWS) installation and expansion; COMUPRED strengthened; training of ~1,600 people in 153 municipalities; 374,632 people received relief 2007–2010.
  - Humanitarian outputs 2007–2010: 29.68 million pounds of food and materials delivered; Managua PTAS investment US$85 million noted among works.

### Caribbean Coast Development Strategy — outcomes 2007–2010
- Land titling and demarcation:
  - Demarcation and titling of 15 indigenous and afrodescendant territories covering 22,478.99 km2 benefiting 103,790 inhabitants in 215 communities.
- Production and social outcomes:
  - Over 114,000 producers participated in production programs.
  - Food Production Program delivered 11,394 production bonds to women heads of household.
  - Zero Usury program active in eight communities; financing C$5,751,100 in 2010.
  - 1.5 million medical consultations provided to Caribbean population since restoration of free healthcare.
  - Maternal mortality fell by 34 percent; deaths under age one fell by 16 percent.
  - 45 new health units and 4 maternity centers began operation; 4 new primary hospitals built.
  - Electrification reached 54,000 Caribbean households; Eurosolar hybrid photovoltaic systems installed in isolated communities.
- Institutional strengthening:
  - 75 forest communities organized into 14 community forestry companies.
  - Declaration of Special Development Zone for Alto Coco and Bocay to include indigenous populations in development plans.

### Implementation, monitoring, evaluation, and statistical strengthening
- Institutional arrangements:
  - PLANINPREC established as lead agency for planning and execution monitoring.
  - DGIP/SNIP strengthened; SNIP Projects Bank consolidated; monitoring system implemented; 38 member institutions and 78 employees received training.
  - PIP execution improved to 93.4 percent in 2010.
- Monitoring and SEN (National Statistics System):
  - Continuous Household Survey (ECH) replacement since February 2009.
  - INIDE strengthened for censuses and surveys; preparations for IV CENAGRO and ENDESA noted.
  - Integration and linkage of SIGFA-MHCP, SISCOOP-MINREX, BP-SNIP/MHCP and SIGRUN-SEPRES+MHCP to track results.
- Annex indicators and strategic matrix highlights:
  - Combatting extreme poverty: baseline 2007 17.2; 2010 observed 14.3 (annex table).
  - Illiteracy rate for 15+ (2005 census 22.0%): 2007 20.2; 2008 7.5; 2009 5.0; 2010 3.3; goal 4.0; observed 3.0.
  - Number of additional MW produced targets and cumulative MW achievements listed in annex tables (selected entries preserved in source).

### Selected macroeconomic statistics (Annex 1 — key figures)
- Real GDP growth rates (annual): 2006 4.2; 2007 3.6; 2008 2.8; 2009 (1.5); 2010 4.5; 2011 3.5.
- GDP (millions of 1994 córdobas): 2006 32,936.9; 2007 34,136.9; 2008 35,078.8; 2009 34,563.4; 2010 36,112.0; 2011 37,377.8.
- Nominal GDP (US$ millions): 2006 3,162.6; 2007 3,747.8; 2008 4,551.5; 2009 5,662.0; 2010 6,372.3.
- Exports (US$, merchandise f.o.b.): 2010 US$1,851.1; 2011p merchandise exports US$2,196.8 (annex figures).
- Gross International Reserves (GIR, US$ millions): 2008 1,140.8; 2009 1,408.8; 2010 1,634.6; 2011p 1,550.9.
- Current account (US$ millions): 2009 (832.1); 2010 (968.9).
- NFPS overall deficit after grants (percent of GDP): 2009 (1.9); 2010 (0.5); 2011p (1.1).
- Public investment (PIP) 2007–2010 cumulative: US$3,358.5; annual average US$841.0 (13.5 percent of GDP).

*Source: Technical Progress Report on National Human Development Plan as of 2010 — Government of Reconciliation and National Unity (September 12, 2011).*

### EXECUTIVE SUMMARY 7

### EXECUTIVE SUMMARY 7

### REDUCING INEQUALITY AND POVERTY
- REDUCING INEQUALITY AND POVERTY 7

### GROWTH
- MACROECONOMIC POLICY 10
- BUDGETARY EFFORT FOR COMBATING POVERTY 15
- AGRICULTURE AND FORESTRY STRATEGY 15
- FISHING AND AQUACULTURE POLICY 16
- INDUSTRIAL POLICY 16
- ENERGY POLICY 17
- TOURISM DEVELOPMENT 17

### FOREIGN SECTORS
- FOREIGN TRADE POLICY 17
- FOREIGN DIRECT INVESTMENT STIMULUS POLICY 18

### DEVELOPING SOCIAL WELFARE AND EQUITY
- DEVELOPING SOCIAL WELFARE AND EQUITY 18
- FOOD STRATEGY, NUTRITIONAL SECURITY, AND SOVEREIGNTY POLICY 18
- EDUCATION SECTOR: STRATEGY AND POLICIES 19
- HEALTH SECTOR: STRATEGY AND POLICIES 20
- SOCIAL SECURITY 20
- STRATEGIES AND POLICIES FOR RESTORING THE RIGHTS OF CHILDREN, ADOLESCENTS, YOUTHS, AND THE ELDERLY 21
- DRINKING WATER: SANITATION STRATEGY AND POLICIES 21
- RESIDENTIAL AND SOCIAL HOUSING POLICY 22
- LABOR POLICY 22
- CITIZEN SECURITY 22

### ENVIRONMENT AND TERRITORIAL DEVELOPMENT
- DEFENSE AND CARE OF MOTHER EARTH .... ENVIRONMENTAL SUSTAINABILITY AND FOREST DEVELOPMENT 23
- CARIBBEAN COAST DEVELOPMENT STRATEGY 24

### ANNEXES AND IMPLEMENTATION TOOLS
- ANNEX 2: STRATEGIC MATRIX OF THE PLAN AND GOALS ACHIEVED 26

### INTRODUCTION AND CORE SECTIONS
- INTRODUCTION 29
- REDUCING POVERTY AND INEQUALITY 31
- THE CITIZEN PARTICIPATION MODEL 41
- STRATEGIC POLICIES AND PROGRAMS OF THE NHDP 42

### MACROECONOMICS AND FISCAL FRAMEWORK
- MACROECONOMICS 42
- MACROECONOMIC STABILITY POLICY 43
- FISCAL POLICY 45
- MONETARY AND EXCHANGE POLICY 48
- SUPPLEMENTAL AGENDA, TRANSPARENCY, AND ACCOUNTABILITY 50
- PUBLIC INVESTMENT POLICY 51
- ACHIEVEMENTS OF THE 2007-2010 PUBLIC INVESTMENTS PROGRAM 52
  - [TR.: TRANSPORT; COMMUNITY WORKS AND SERVICES; WATER, SEWERAGE, AND SANITATION; EDUCATION; ENERGY; LIVESTOCK, FORESTRY, AND FISHERIES; HEALTH; STATE ADMINISTRATION; MULTISECTOR; HOUSING; SOCIAL PROTECTION, ASSISTANCE, AND SECURITY; MINING, INDUSTRY, COMMERCE, AND TOURISM; ENVIRONMENT; CULTURE, SPORT, AND RECREATION; COMMUNICATIONS.] 54

### BUDGETARY EFFORTS AND CITIZEN POWER
- BUDGETARY EFFORT TO COMBAT POVERTY 54
- THE CITIZEN POWER APPROACH TO REDUCING POVERTY 54
- THE BUDGETARY EFFORT AND ITS IMPACT LEVELS 55

### EXTERNAL SECTORS AND FINANCING
- FOREIGN TRADE POLICY AND BALANCE OF PAYMENTS 63
  - FOREIGN TRADE POLICY 63
  - BALANCE OF PAYMENTS 67
- EXTERNAL FINANCING FOR THE PUBLIC SECTOR 68

### PRODUCTION AND TRADE STRATEGY
- PRODUCTION AND TRADE STRATEGY 71
- AGRICULTURAL AND FORESTRY STRATEGY 71
- CAPITALIZATION OF SMALL PRODUCERS 73
- CREDIT FOR SMALL PRODUCERS 73
- PROVISION OF SERVICES: SEEDS, TRAINING, TECHNICAL ASSISTANCE, AND PARTNERSHIP 74
- AGRO-INDUSTRIALIZATION: VALUE ADDED 75
- NATIONAL FOOD SAFETY SYSTEM 77
- ACCESS TO MARKETS AT FAIR PRICES 78
- CHANGE IN AGRICULTURAL PRODUCTION 78
- FISHING AND AQUACULTURE POLICY 80
- INDUSTRIAL POLICY 81
- ADDED VALUE OF MANUFACTURING INDUSTRY 82

### ENERGY AND INFRASTRUCTURE
- ENERGY POLICY 83
  - INCREASED GENERATION OF ELECTRICAL ENERGY FOR THE PEOPLE AND THE ECONOMY 83
  - FURTHER EXPANSION OF THE ELECTRICAL POWER TRANSMISSION NETWORK 83
  - RURAL ELECTRIFICATION 84
  - NATIONAL SUSTAINABLE ELECTRIFICATION AND RENEWABLE ENERGY PROGRAM (PNESER) 85
  - ENERGY SAVINGS AND EFFICIENCY 85
- TOURISM DEVELOPMENT 85
- TELECOMMUNICATIONS AND POSTAL SERVICES 89
  - TELECOMMUNICATIONS 89
  - POSTAL SERVICES 91
- DOMESTIC TRADE POLICY 92
- FOREIGN DIRECT INVESTMENT STIMULUS POLICY 93

### FOOD, HEALTH, AND SOCIAL SERVICES
- FOOD STRATEGY AND FOOD AND NUTRITIONAL SECURITY AND SOVEREIGNTY POLICY 96
- HEALTH SECTOR STRATEGY AND POLICIES 104
- SOCIAL SECURITY 108
- STRATEGIES AND POLICIES FOR RESTORING THE RIGHTS OF CHILDREN, ADOLESCENTS, YOUTHS, AND THE ELDERLY 110
- DRINKING WATER AND SANITATION STRATEGY AND POLICIES 112
- RESIDENTIAL AND SOCIAL HOUSING POLICY 114
- LABOR POLICY 115

### PUBLIC MANAGEMENT, TRANSPARENCY, AND DECENTRALIZATION
- MEASURES FOR SOUND PUBLIC MANAGEMENT 121
- TRANSPARENCY AND INTEGRITY 121
  - TRANSPARENCY 121
  - INTEGRITY 122
- CITIZEN SECURITY 122
- POPULATION’S LEVEL OF SATISFACTION 124
- ACCESS AND QUALITY IN THE PROVISION OF JUSTICE 125
- STRENGTHENING OF THE STATE AND THE CAPACITY FOR RESPONSIBLE PUBLIC ADMINISTRATION 125
  - CIVIL SERVANTS ACCREDITED FOR ADMINISTRATIVE CAREER 125
  - HARMONIZATION AMONG THE BRANCHES OF GOVERNMENT 126
- DECENTRALIZATION AND MUNICIPAL STRENGTHENING 127
  - STRENGTHENING THE MUNICIPALITIES WITH CITIZEN PARTICIPATION 128
  - DECENTRALIZATION 129
  - LOCAL DEVELOPMENT 129
  - DIRECT DEMOCRACY IN MUNICIPALIZATION 130
- SECURITY OF PROPERTY RIGHTS 130

### ENVIRONMENT, FORESTS, AND DISASTER POLICY
- DEFENSE AND PROTECTION OF MOTHER EARTH .... ENVIRONMENTAL SUSTAINABILITY AND FOREST DEVELOPMENT 131
  - BUILDING AND REBUILDING HUMAN VALUES IDENTIFYING WITH MOTHER EARTH 131
  - THE FOREST ... LIFE 132
  - WOMEN AND THE ENVIRONMENT 133
  - SUSTAINABLE LAND MANAGEMENT (SLM) 133
  - PROTECTED AREAS 133
  - WATER CONSERVATION, COASTAL MANAGEMENT AND POLLUTION CONTROL 134
  - ENVIRONMENT-FRIENDLY PRODUCTION 137
  - ENVIRONMENTAL MANAGEMENT 137
- GOVERNMENTAL POLICY FOR DEALING WITH DISASTERS 139
  - EARLY WARNING SYSTEMS (EWS) 139
  - TERRITORIAL ORGANIZATION AND PREPARATION (REGIONAL, DEPARTMENTAL, MUNICIPAL, AND LOCAL) 140
  - PERCENTAGE OF FAMILIES AFFECTED BY NATURAL DISASTERS THAT RECEIVED RELIEF 140
- CARIBBEAN COAST DEVELOPMENT STRATEGY 142

### IMPLEMENTATION, MONITORING AND EVALUATION
- IMPLEMENTATION, MONITORING AND EVALUATION 145
- THE NATIONAL PLANNING, INVESTMENT, BUDGET, AND COOPERATION SYSTEM 145
- MONITORING AND EVALUATION 146
- STRENGTHENING THE NATIONAL STATISTICS SYSTEM 146

### ANNEXES
- ANNEX 1: MACROECONOMIC STATISTICS 148
- ANNEX 2: THE NHDP STRATEGY MATRIX AND GOALS ACHIEVED 162
- ANNEX 3: ABBREVIATIONS AND ACRONYMS 167

*Technical Progress Report on National Human Development Plan as of 2010 — Government of Reconciliation and National Unity, September 12, 2011*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### REDUCING INEQUALITY AND POVERTY
- Operational goal of Nicaragua’s National Human Development Plan (NHDP): economic growth with increased employment and reduced inequality and poverty.
- Principal drivers of progress 2007–2010:
  - Redistributive government policies with positive results.
  - Economic recovery and positive economic growth despite global financial and economic crisis.
  - Climate of confidence, greater social cohesion, national alliances, increased investment.
- Inequality
  - Nicaragua ranked second in Latin America in terms of reduction in inequality (Venezuela is the leader).
  - Achieved a minus 9.8 percent change in the income GINI coefficient: from 0.51 in 2005 to 0.46 in 2009.
  - Improvement occurred despite average annual growth of 1.69 percent (2005–2009), which is less than the Latin America average of 2.77 percent.
- Poverty (consumption-based, EMNV)
  - General poverty fell from 48.3 percent in 2005 to 42.5 percent in 2009 (reduction of 5.8 percentage points).
  - Extreme poverty fell from 17.2 percent in 2005 to 14.6 percent in 2009 (reduction of 2.6 percentage points).
  - Rural vs urban:
    - Extreme rural poverty is approximately five times higher than extreme urban poverty.
    - General rural poverty is twice general urban poverty.
    - General poverty fell by 7.0 percentage points in rural areas and by 4.1 points in urban areas.
    - Extreme rural poverty fell by 3.9 percentage points; extreme urban poverty fell by 1.1 points.
- Poverty (income-based, International Poverty Line)
  - In 2009, 5.5 percent of the population consumed US$1.25 or less per day (down from 11.2 percent in 2005; reduction of 5.7 percentage points).
  - In 2009, 21 percent survived on consumption of US$2.00 or less per day (down from 31.6 percent in 2005; reduction of 10.6 percentage points).
  - By area of residence:
    - Reduction for those on less than US$1.25 per day: 2.3 percentage points (urban) and 9.8 percentage points (rural).
    - Reduction for those on US$2.00 per day: 6.1 percentage points (urban) and 15.7 percentage points (rural).
  - Indicates greater reductions in rural areas where targeted social programs are focused.
- Unmet Basic Needs (UBN)
  - Overcrowding fell by 10.9 percentage points (2005–2009).
  - Limited education fell by 10.4 percentage points (2005–2009).
  - Inadequate housing reduced by 0.6 percentage points but remains a significant challenge.
- Employment and formalization
  - Active population grew by 649,200 people, or 31.1 percent, between 2006 and 2010 (2009 Continuous Household Survey).
  - From end-2009 to Q4 2010, employment grew by 304,000 (increase of 12.5 percent) based on comparable moving series.
  - Free trade zones recovered 89,927 jobs by end-2010 after crisis-related losses.
  - Social security registrations reached 534,879 people by end-2010, or 32.6 percent more than at end-2006.
- Growth, external flows, and investment
  - GDP growth: 4.5 percent in 2010 (higher than the 3.9 percent average for Central America).
  - 2009 economic activity declined 1.5 percent in Nicaragua (less than Central America’s average decline of 1.9 percent).
  - 2010 growth propelled by increased exports, investments, and remittances; macroeconomic stability with single-digit inflation and highest gross international reserves.
  - Exports:
    - Growth since 2007: 17.1 percent (2007), 20.7 percent (2008), -5.5 percent (2009, crisis-related), 32.8 percent (2010).
    - As of June 2011, exports grew by 27.7 percent compared to the same period a year earlier.
    - 2010 exports were 77.3 percent above their 2006 level.
    - Agricultural and manufactured products and increased tourism notable contributors.
  - Investment and consumption:
    - Investments recovered by 29.8 percentage points (period not explicitly limited in text).
    - Consumption increased 3.2 percent.
    - Estimated that Foreign Direct Investments in 2011 could be twice the 2010 amount of US$508 million.
  - Remittances reached US$822.8 million in 2010, an increase of 18 percent compared to 2006 (US$697.5 million).
- Social policies and targeted programs (principal instruments 2007–2010)
  - Restoration of human and constitutional rights of free health and education.
  - Campaigning for sixth grade education in 2012 and third year of secondary school in 2015.
  - Targeted programs: AMOR program; AMOR program for the Youngest Children; Family and Community Health Model (MOSAFC); Operation Miracle; Everyone Has a Voice.
  - Capitalization programs emphasizing social and economic participation of women; Zero Hunger and Zero Usury programs.
  - Support to small urban and rural producers (94 percent of all producers):
    - Small producers supply 60 percent of coffee and meat exports, 90 percent of basic grains, 90 percent of fruits and vegetables.
    - Small producers and small urban producers generate 70 percent of employment and 40 percent of GDP.
    - Creation of Banco Produzcamos in 2010 to provide organized access to loans at fair rates.
    - ALBA CARUNA assists small and medium-sized producers.
    - 47,530 small and medium-sized producers received financing totaling C$1,365,300 under Agriculture, Livestock, Fisheries, Agribusiness, Harvesting, and Marketing.
    - National Seed Plan provided 208,462 small producers with 131,236 quintals of certified seed and 87,602 quintals of urea or NPK via the Support Program for Producers of Small Grains (KRII).
- Energy sector
  - Resolved crisis of daily blackouts (up to 12 hours) by rapid installation of 240 MW of power via ALBA support plus an additional 110 MW, totaling 350 MW.
  - Strategy to reduce dependence on oil for electricity generation: move from 20 percent renewable energy in 2007 to 90% renewable energy in 2017.
  - Hydroelectricity, geothermal, wind, and biomass considered to double electrical capacity.
- Institutional, policy, and cooperation factors
  - Respect and guarantees for private property; search for new export markets.
  - First-time use of a Financial and Economic Program (FEP) as instrument for negotiating with the IMF given heavily indebted poor country status.
  - Transparency of public investment; reorientation of foreign cooperation to national priorities.
  - Early integration in ALBA emphasizing brotherhood, solidarity, complementarity, recognition of asymmetries, defense of original and afrodescendant peoples, new focus on roles of women and youth, fair trade and markets.
- Social dialogue, alliances, and labor outcomes
  - Corporate sector highlighted social stability from consensus-based policies.
  - Quoted: COSEP Chairman at investors’ forum (August 2011) stated Nicaragua is “the most economically and commercially open country in Central America” and that “in the last three years Nicaragua has been the economy with the highest growth in Central America.”
  - Great Alliance of Workers-Producers/Entrepreneurs-Government consolidated social and labor stability.
  - Presidential description (June 10, 2011): alliance contributed to achieving 4.5 percent growth in 2010.
  - Wage agreements as result of alliance:
    - Minimum wage increases of 12 percent (2010) and 15 percent (2011).
    - Wage increases in free trade zones of 8 percent (2011), 9 percent (2012), and 10 percent (2013).
  - ILO Regional Director for Latin America and the Caribbean: ongoing social dialogue with tangible achievements, especially in free trade zones.
- NHDP principles and outcomes
  - NHDP presented preliminarily April 2008 and final version October 2008.
  - Based on Citizen Power Model placing humans at center; restores State role in leading social progress and people’s sovereign role in national decision-making.
  - Priority: economic growth with increased employment, reduction of poverty and inequalities, restoration of economic, social, environmental, and cultural rights of historically marginalized sectors.
  - Concludes reduction of inequality and poverty is principal result of NHDP policies and programs.

### GROWTH: MACROECONOMIC POLICY
- Objective: stable economy that stimulates economic growth with greater social benefits for the poorest segments.
- Policy instruments and targets:
  - Manage a sustainable fiscal deficit.
  - Monetary policy to guarantee confidence in the currency and stability of the financial system.
  - Exchange policy: use exchange rate as nominal anchor of price levels with gradual devaluation using Open Market Operations (OMOs) as principal policy instrument.
  - Accumulation of international reserves to guarantee more than twice the value of the monetary base.
- Recent growth performance
  - 2007: GDP growth 3.1 percent, propelled by greater goods and services exports, increased family remittances, and increased foreign investments.
  - Projected growth rates between 4.2 percent and 5 percent for 2008–2011, though production growth slowed in 2008 due to the international financial crisis and structural problems (text ends before specifying 2008 outcome).

*Source: EXECUTIVE SUMMARY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010*

### 2.8 percent, while in 2009 a dramatic decline in exports, foreign investment, family remittances,

### _cr11323 - 2.8 percent, while in 2009 a dramatic decline in exports, foreign investment, family remittances,

### Macroeconomic impact of the international financial crisis and recovery
- 2008 projected growth: 5.0 percent (projected); 2008 actual referenced baseline growth: 2.8 percent.
- 2009 outcome: 1.5 percent reduction in economic activity due to a dramatic decline in exports, foreign investment, family remittances, external bank credit, and reduced economic vitality.
- 2010 outcome: annual growth of 4.5 percent achieved.
- 2010 recovery drivers: resurgence of world economy, increase in exports, creation of domestic demand, and macroeconomic stability.
- Monetary/fiscal program linkages:
  - IMF ECF program: fourth and fifth review approved on November 19, 2010, program extended one year with disbursement of 12.8 million SDRs (equivalent of US$19.6 million).
  - ECF policy objectives for monetary and financial policies: (i) keeping prices stable; (ii) safeguarding the soundness of the NFS; (iii) strengthening the legal framework of the BCN.
  - New Organic Law of the BCN approved in July 2010.

### Presidential strategy and fiscal stance (Program for Defense of Production, Investment, Growth, and Employment)
- Principal pillars approved January 2009:
  - (i) financial stability;
  - (ii) prioritized public investment;
  - (iii) support for production and private investment;
  - (iv) solidarity-based employment;
  - (v) fiscal austerity.
- NHDP revision: “Updated Technical Summary of the 2009-2011 NHDP,” approved September 2009.
- Fiscal adjustment in 2009:
  - Expenditure budget adjusted by 2.2 percent of GDP.
  - Resulting NFPS deficit after grants: 1.9 percent of GDP in 2009 (0.8 percent of GDP in 2008).
- Public spending reallocation 2007-2010:
  - Investment during 2007-2010: US$3.36 billion total, averaging US$841.0 million per year (13.5 percent of GDP).
  - Compared to 2002-2006 average: US$536.8 million annual average (11.7 percent of GDP).
  - Average additional spending per year: US$304.1 million more (56.7 percent more per year).
  - Social sectors accounted for 65.9 percent (US$2.2117 billion) of executed spending during 2007-2010.
  - Productive sector absorbed 21.0 percent (US$748.0 million) of these resources.

### External sector, exports, and investment
- Exports performance:
  - 2007 growth: sustained growth since 2007.
  - 2008 increase: 17.1 percent.
  - 2009 fall: 5.5 percent.
  - 2010 growth: 32.8 percent.
  - As of June 2011: exports grown 27.7 percent compared to same period in 2010.
  - 2010 vs 2006: exports 77.3 percent higher in 2010 compared to 2006.
  - Goods expansion: 19.9 percent; services component decline: 4.7 percent.
  - Exports 2000–2010: grew from US$692.4 million in 2000 to US$1.8511 billion in 2010; average annual growth of 11.4 percent (15.7 percent during 2007–07).
  - As of June 30, 2011 projection: US$2.14 billion by year-end 2011.
- Foreign Direct Investment (FDI):
  - 2010 FDI: US$508 million.
  - 2011 estimate: FDI in 2011 expected to be twice the 2010 figure of US$508 million.
  - FDI 2007-2010 attracted was US$1.95 billion higher than 2002-06 (US$720 million).
  - 25 percent increase in attracting foreign investment compared to previous administration; total of 375 foreign companies represented.
- Tourism and remittances:
  - 2007–2010 tourism: 3,451,098 visitors; cumulative growth of 37 percent.
  - 2010 foreign tourists: one million, cumulative growth 34.9 percent during 2007–2010; total tourists 3,601,052.
  - Monetary income from tourism 2007–2010: $1.199 billion.
- Banking and payments system:
  - NFS did not hold toxic assets; foreign indebtedness increased up to April 2009 then reversed as NFS cut back on credit and accumulated liquidity.

### Growth by sector — agriculture, manufacturing, trade, services, construction
- Sectoral growth in 2010:
  - Agriculture and livestock: 7.7 percent.
  - Manufacturing: 7 percent.
  - Trade and services: growth overall, except financial services.
  - Construction: became less contractive, showing indications of recovery.
- Investments:
  - Investments grew 29.8 percentage buoyed by increased private consumption (3.2 percent).
- Energy sector:
  - Private and public investment in energy sector: US$1.44 billion.
  - Total final energy consumption increased 18 percent: from 2,133.21 GWH in 2005 to 2,520.21 GWH in 2009.
  - Generating capacity increased by 350 MW by end-2010: 290 MW from plants managed by ALBANISA and Taiwan; 60 MW from Amayo 1 and 2 Wind Plants.
  - Nominal installed capacity in excess of 1,000 MW for first time; effective capacity of 827.3 MW.
  - 158.1 km of new transmission lines installed (2007-10), benefiting 326,623 beneficiaries.
  - 236.3 MW of additional power installed, benefiting 561,796 people.
  - Rural electrification 2009-2010: power to 93,015 households.
- Fishing and aquaculture:
  - Production: 43.9 million pounds in 2006 to 70.8 million in 2010 (61.3 percent increase).
  - Exports: in 2010 exported 24.5 million pounds and US$53.5 million more than in 2006 (US$165.2 million in 2010 compared to 111.7 million in 2006).
- MSMEs:
  - MSME sector represents more than 90 percent of corporate base, 40 percent of GDP, and generates 70 percent of employment.
  - CAMIPYME served more than 40,000 MSMEs over last three years.

### Public investment policy and spending prioritization
- Public Investment Program (PIP) priorities:
  - Emphasis on gross capital formation, reducing current expenditure recorded as investment, and physical/financial monitoring of each PIP project.
- Spending policy principles: austerity, financial discipline, rationalization, prioritization; guarantee constitutional allocations and contractual public debt service.
- Subsidies and transfers:
  - Urban mass transit fares in Managua and Ciudad Sandino remained unchanged; subsidies continued for drinking water-related energy costs, electricity to settlements, and services to universities and pensioners.
  - Salary policy: starting May 2010, more than 120,000 government employees with salaries ≤ 5,500 córdobas received a bonus of 530 córdobas until May 1, 2011 and 700 córdobas thereafter; transfers funded by private initiative of ALBA.
  - Earlier transfer referenced: provision of a transfer of C$550 per month up to May 1, 2011 and C$700 per month thereafter, financed by Venezuelan Cooperation authorities, for employees earning salaries ≤ 5,500 córdobas in public sector agencies.

### Poverty reduction, social spending, and food security programs
- Budgetary effort for combating poverty:
  - Investment during 2007-2010: US$3.36 billion total; average US$841.0 million per year (13.5 percent of GDP).
  - Social sectors received 65.9 percent (US$2.2117 billion) of executed spending during 2007-2010.
  - Reported poverty outcomes 2005-2009: general poverty reduced by 5.8 percentage points; extreme poverty reduced by 2.6 percentage points (EMNV 2009).
- Food and nutritional security:
  - Law No. 693 approved in 2009: Law on Food and Nutritional Sovereignty and Security.
  - Executive Secretariat SE-SSAN created in 2010.
  - Food Production Program (PPA / Zero Hunger) 2007-2010:
    - Provided capital for 59,755 rural women and their families.
    - Organized 1,256 savings fund groups; 182 groups became cooperatives.
  - Food Production Bond (BPA) goal 2007–2011: capitalize 84,000 families out of an initial universe of 280,000 families; as of December 30, 2010 delivered 59,755 bonds.
  - ENABAS operations: gathers 1,770,444 quintals of agricultural products and distributes them through 3,817 points of sale.
- Access to credit:
  - Zero Usury loan program: loans to 90,209 women; total of 155,786 loans amounting to C$827.1 million.
  - Rural Credit Fund / Produzcamos development bank: loans to 86,143 small producers totaling C$1.06 billion (1.6 times more than in 2006).
- Social welfare measures:
  - Implementation of a New Social Welfare System and creation of anti-poverty programs.
  - Restoration of free health and education services; implementation of a food strategy in rural areas; enhanced productive capacities among poorest groups.

### Education and literacy outcomes
- Literacy:
  - Illiteracy rate fell from 22 percent in 2006 to 3.0 percent in 2010.
  - On August 22, 2009 Nicaragua declared a “Territory Free of Illiteracy” with 3.56 percent illiteracy, which fell to 3.0 in 2010.
  - Literacy provided to 532,641 people during 2007–2011.
  - Post-literacy programs in 2010 involved 9,836 popular teachers in 153 municipalities.
- Primary education (2006–2010 outcomes):
  - Net enrollment rate (NER) in primary education in 2010: 87.5 percent (NHDP goal for 2010: 88.0 percent).
  - Primary school retention rate in 2010: 91.2 percent (2009: 90.5 percent); increase of 4.3 percentage points over 2006.
  - Primary school passing rate in 2010: 90.6 percent (exceeding NHDP 2010 goal by 10.6 percentage points).
- Secondary education (2010):
  - Enrollment: 458,321 students.
  - Passing rate increased from 76.7 percent in 2006 to 91.10 percent in 2010.
  - Retention rate fell slightly from 86.0 percent in 2006 to 85.40 percent in 2010.

### Trade, cooperation, and legal frameworks
- Trade liberalization and agreements:
  - National Assembly approval of framework agreement for Central American Customs Union.
  - Bilateral agreement with Panama with tariff reduction program beginning January 1, 2010.
  - Negotiations continued on FTAs with Chile and Canada; Partnership Agreement signed between Central America and the European Union (GSP+ preferences).
  - Diversification into markets such as Russia and Brazil.
- Cooperation and regional integration:
  - Strengthened trade and cooperation relationships with ALBA member countries; preparation of SUCRE infrastructure.
  - Venezuelan market became second most important market for Nicaragua in 2010 (moved from 23rd place in 2006).
  - Nicaragua admitted to ALADI as a Relatively Less Economically Developed Country.

*Source: GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (September 12, 2011).*

### 2007. It is designed to develop, increase, and adapt individuals’ skills, particularly among the

### GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (September 12, 2011)

### HEALTH SECTOR: STRATEGY AND POLICIES
- Restored the right to free universal healthcare.
- Malaria: reached the lowest historical figure in 2009, with a rate (annual parasite incidence) of 0.107 per 1000 inhabitants.
- Tuberculosis: incidence in all its forms fell from 41.9 per 100,000 inhabitants in 2003 to 39.8 per 100,000 inhabitants in 2009.
- Maternal mortality:
  - Fell from 76.5 in 2006 to 59.8 in 2009 (nearly one-third reduction compared to 2006).
  - Goal for 2015: 40 maternal deaths for every 100,000 live births.
  - Preliminary 2010 data: 67.4 maternal deaths for every 100,000 live births; 88 percent of these were due to obstetrical causes.
- Infant mortality: fell from 1,947 deaths in 2007 to 1,876 in 2010 (preliminary 2010 figures).
- Disability: first National Survey of the Disabled (2010) identified 126,316 disabled persons to inform policies, programs, and projects.
- Health infrastructure and supplies:
  - Expanded availability of physicians, nurses, and technicians.
  - Expanded/strengthened health services infrastructure to include 1,222 units in 2010, 132 more units than in 2006.
  - Efficient system for supplying generic medications for rational use.

### SOCIAL SECURITY
- Insured population (2010): 534,879 insured, an increase of 21.8 percent over 2006.
- Coverage: 20.3 percent of the Economically Active Population (EAP) in 2010.
- Active employers registered (2010): 21,204, an increase of 32.6 percent compared to 2006 (15,990).
- Cooperatives: 1,226 cooperatives joined the INSS during 2007-2010.
- Pensions (2010):
  - Total pensions paid: 123,824.
  - Average pension in 2010: C$2,950.9.
  - Minimum pensions revalued with minimum wage: pensioners received an increase of 88.4 percent in 2010 compared to 2006 (from C$1,212.70 per month in 2006 to C$2,284.86 per month in 2010), benefitting 53 percent of pensioners and retirees.
- Pensions for mothers of the fallen and wounded:
  - Reactivated pensions increased from 19,663 in 2006 to 24,430 in 2010 (24.2 percent more than in 2006).
  - Amount of pensions paid to mothers of the fallen increased from C$442.00 to C$1,640.00 per months (an increase of 271 percent).

### STRATEGIES AND POLICIES FOR RESTORING RIGHTS OF CHILDREN, ADOLESCENTS, YOUTHS, AND THE ELDERLY
- AMOR Program objectives: defend and guarantee restoration of rights; integrate beneficiaries into education, health, security, sports, culture, recreation, and happiness.
- Civil registration and education:
  - From 2008 to 2010, restored the right to a name for 64,156 children under age 12.
  - Between 2007 and 2010, an annual average of 10,534 children and adolescents were incorporated in the educational system, 1,909 more than in 2006.
- Protection against trafficking and exploitation:
  - Inter-Institutional Care Plan for Children and Adolescents at Risk of Commercial Sexual Exploitation at border posts (El Espino, Las Manos, Corinto).
  - From 2007 to 2010, 285 children and adolescents repatriated; others guaranteed transfer to place of origin.
- Ministry of Families, Adolescents, and Childhood (MIFAN) developing a new integrated care model emphasizing promotion, prevention, integrated care, special protection, family- and community-focused services, and linkage to the Childhood and Adolescence Information System (SINA).

### DRINKING WATER: SANITATION STRATEGY AND POLICIES
- Sector priorities: expand water and rural sanitation coverage with community participation, gender equity, environmental protection; update/implement National Rural Water and Sanitation Information System (SINAS); strengthen Drinking Water and Sanitation Committees (CAPS) and/or Citizen Power Cabinets.
- Urban drinking water coverage: increased from 65 percent in 2006 to 88.7 percent in 2010, benefiting 530,000 people during this same period.
- Rural water coverage:
  - Increased from 53.36 percent in 2006 to 63.5 percent in 2011, bringing service to 307,989 new beneficiaries during this period.
  - New residential drinking water connections installed between 2007 and 2010: 68,120.
  - Wells constructed for rural areas during 2007–2010: total of 695 wells.

### RESIDENTIAL AND SOCIAL HOUSING POLICY
- Period 2007–10:
  - Direct subsidies granted to build 8,351 new dwellings, benefiting 41,755 people (82 percent of families with monthly incomes below C$4,000).
  - Improved and/or expanded 4,595 homes, benefiting 22,975 people.
- Solidarity Roof Plan Project (instituted 2009):
  - Delivered 1,486,000 sheets of zinc benefiting 148,600 Nicaraguan families and former combatants.
  - Provided 297,200 pounds of nails.

### LABOR POLICY
- Continuous Household Survey conducted since February 2009; replaces previous National Employment Survey; provides moving-quarter information.
- Employment growth:
  - From 2006 to 2010 employed population grew by about 649,200 people, equal to 31.1 percent.
  - From 2009 to 2010 (comparable moving series), employed population during fourth quarter increased by 304,000 people, representing an increase of 12.5 percent.
- Free trade zones employment: 89,927 nationally as of year-end 2010.
- Social security for employees (2007–2010): sustained upward trend; 2010 closed with 534,879 active insureds, 32.6 percent more than at close of 2006.

### CITIZEN SECURITY
- Nicaragua characterized as the most secure country in Central America.
- Security approach: preventive, proactive, and community policing in coordination with communities.
- Principal strategies implemented during 2009–10:
  - Plans to combat drugs, gangs, criminal groups, and organized crime.
  - Setup of 5,097 Social Crime Prevention Committees that in 2010 reduced the most dangerous crimes compared to 2009.
  - Dismantling and neutralizing 16 cells of international drug-trafficking cartels.
- Specialized care model for victims of intrafamily and sexual violence:
  - 59 national offices: 18 departmental, 8 district, 33 municipal delegations (increase of 24 new units during 2010, or an increase of 41 percent).
- Community prevention and youth programs:
  - Network of Voluntary and Communal Extension Workers increased by 37 percent, reaching 3,432 in 2010.
  - Between 2007 and 2010, 23,000 young at-risk gang members involved in recreational activities coordinated with INJUVE, MINED, and IND.
  - Set up 24,150 family counselors to treat youth at high social risk.
  - In 2010, work done to separate 2,000 youths belonging to gangs at high social risk.
  - 500 technical career scholarships processed for at-risk youth.

### DEFENSE AND CARE OF MOTHER EARTH — ENVIRONMENTAL SUSTAINABILITY AND FOREST DEVELOPMENT
- Policy focus shifted from exclusive control/regulation/protection to positive societal care and conservation of Mother Earth; includes protection of ancestral rights of indigenous peoples and ethnic communities.
- Nicaragua joined the Universal Declaration of the Common Good of the Earth and Humanity.
- Basic general education curriculum transformed to include formal education on the environment and tourism culture as a cross-cutting theme.
- Deforestation: estimated at 70,000 hectares per year in Nicaragua.
- National Reforestation Crusade outcomes:
  - Reforested 82,343 hectares in degraded watershed and dry areas.
  - Reduced forest fires by 95 percent and hot spots by up to 56 percent.
- Water resource management:
  - Since 2003, National Indicative Hydrological Plan and Annual Water Availability Plan (PHIPDA) based on Diagnosis of Water Resources by Watershed.
  - Projected water availability: Pacific basins for 2009-2010 and Atlantic basins for 2001 and 2012; projections indicated increasing demand with negative balance for most Pacific basins.
  - Legal framework: General Law on National Waters (No. 620) and its regulations (Presidential Decree 106-2007), Article 101 requires “Promoting the development and implementation of Plans to Protect Water Resources in Basins and Aquifers.”
- Coastal management:
  - Approval of Law 690, “Law on Development of Coastal Areas,” and its Regulations (Decree No. 78-2009).
  - Protected Paslama turtle nests in seven Pacific seacoast areas; El Cocal beaches south of Bluefields and the Cayos Perlas important for Hawksbill turtle nests.

### CARIBBEAN COAST DEVELOPMENT STRATEGY
- Land demarcation and titling:
  - Demarcation and titling of 15 indigenous and afrodescendant territories covering 22,478.99 km2, benefiting 103,790 inhabitants in 215 communities.
- Agricultural and production programs:
  - More than 114,000 producers participated in production programs.
  - Food Production Program (Zero Hunger) delivered 11,394 production bonds to women heads of family.
  - Basic grain seeds program benefited 3,000 families.
  - Zero Usury program active in eight communities (Bluefields, Kukra Hill, Waslala, Puerto Cabezas, Waspan, Rosita, Bonanza, Siuna).
  - 2010 School Meals Program delivered production packages to 1,068 families in Miskito and Mayangna communities (Prinzapolka, Bonanza, Rosita, Siuna).
- Education and health:
  - Right to intercultural bilingual education in original languages (miskita, manangna and creole English languages) up to fourth grade; progress in regionalizing education.
  - With restoration of free healthcare, Caribbean population received more than 1.5 million medical consultations, with laboratory examinations and medications provided.
  - Maternal mortality fell by 34 percent; deaths in children under age one fell by 16 percent.
  - 45 new health units and 4 maternity centers began to operate; 4 new primary hospitals built.
- Water and sanitation: more than 148,000 people gained access to water and/or sanitation services; definitive solution still needed for Caribbean coast water and sanitation.
- Transport and electrification:
  - Improvements to trunk routes Waspam-Bilwi-Las Minas-Río Blanco; maintenance for Waslala-Siuna and Rama-Laguna de Perlas; rehabilitation of Nueva Guinea-Bluefields road.
  - Bilwi airfield completed; construction began on new air terminals in Bluefields and Corn Island.
  - Electrification brought to Kukra Hill, Laguna de Perlas, La Desembocadura, Mulukukú, Siuna, Alamikamba, Bonanza, Rosita, and Tasba Pri, benefiting 54,000 Caribbean households.
  - Eurosolar hybrid photovoltaic systems installed in isolated communities of Bonanza, Prinzapolka, Bilwi, Siuna, Rosita, and Waslala.
- Agroindustry and fisheries:
  - Promoted sowing of cacao and cocoa; milk storage center in Layasiksa.
  - Some 1,800 families benefited from strengthening production and harvesting of basic grains, eggs, pork, tubers, and fruits.
  - Fishing promoted with financing of US$1.8 million, benefiting 1,405 families of fishermen in RAAS and 2,150 families in RAAN.
  - 50 fishermen received outboard motors as part of Emergency Recovery Project after Hurricane Felix.
- Forestry and institutional strengthening:
  - 75 forest communities organized into 14 community forestry companies; received technical and financial assistance.
  - Forest surveillance system to protect forests in RAAN.
  - Strengthened autonomous institutional status through training, regionalizing services, and institutional/legal adjustments for autonomy; declaration of a Special Development Zone for Alto Coco and Bocay to include indigenous population in development plans.

*Source: TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (Government of Reconciliation and National Unity, September 12, 2011).*

### ANNEX 2: STRATEGIC MATRIX OF THE PLAN AND GOALS ACHIEVED

### ANNEX 2: STRATEGIC MATRIX OF THE PLAN AND GOALS ACHIEVED

### Strategic Matrix — selected projections, indicators, and achieved goals
- Combatting extreme poverty
  - % reduction of extreme poverty: 2007 baseline 17.2; 2010 observed 14.3.
- MACROECONOMIC-FINANCIAL PROJECTION
  - Real GDP growth rate: 2007 3.6; 2008 2.8; 2009 -1.0; 2010 -1.5; Goal: -150; Obs.: 4.5; Institution: BCN.
  - Per capita real GDP growth rate: 2008 2.3; 2009 1.4; 2010 -2.3; 2010 -2.7; Obs. 117.4; Goal: 3.2; Institution: BCN.
  - Inflation rate: 2008 16.9; 2009 13.8; 2010 4.0; 2010 0.9; Obs. 22.5; Goal: 9.2; Institution: BCN.
- Efficient and sustainable public finances
  - % execution of public spending compared to updated budget: 2008 93.3; 2009 94.9; 2010 95.0; 2010 94.4; Obs. 99.4; Goal: 95.6; Institution: MHCP.
  - % of non-financial public sector primary spending directed to Public Investment Program: 2008 19.7; 2009 18.0; 2010 20.4; 2010 21.6; Obs. 105.9; Goal: 19.4; Institution: SNIP/BCN.
  - % of non-financial public sector primary spending directed to combating poverty: 2008 52.5; 2009 48.7; 2010 42.9; 2010 46.5; Obs. 108.4; Goal: 47.2; Institution: SEPRES.
- International cooperation aligned with national priorities
  - Amount of foreign resources disbursed (millions of dollars): 2008 683; 2009 561.5; 2010 560.8; 2010 629.6; Obs. 112.3; Institution: BCN-SREC-MINREX.

### Projection for Social Welfare and Equity — selected programmatic results
- Food security
  - No. of poor rural and urban families capitalized through Production Bond: 2008 12,217; 2009 19,554; 2010 15,901; 2010 15,724; Obs. 98.8; Goal 15,000; Obs. 12,260; % Completed 81.7; Institution: MAGFOR.
  - Cumulative no. of families receiving Production Bond: 2007 12,217; 2008 31,771; 2009 47,681; 2010 47,495; Obs. 99.6; Goal 62,495.0; Obs. 59,755.0; % Completed 95.6.
- Quality education for all
  - Net primary enrolment rate: 2007 86.5; 2008 87.2; 2009 88.0; 2010 87.1; Obs. 99.0; Goal 88.0; Obs. 87.5; % Completed 99.4; Institution: MINED.
  - % preschool retention: 2007 86; 2008 87.6; 2009 88.0; 2010 86; Obs. 97.7; Goal 89.0; Obs. 90.3; % Completed 101.5.
  - % primary retention: 2007 87.6; 2008 89.6; 2009 90.5; 2010 90.5; Obs. 100; Goal 91.0; Obs. 91.2; % Completed 100.2.
  - % secondary retention: 2007 83; 2008 84.4; 2009 85.8; 2010 86.2; Obs. 100.5; Goal 87.0; Obs. 85.4; % Completed 98.2.
  - % primary pass rate: 2007 86.4; 2008 87.7; 2009 88.0; 2010 90.3; Obs. 102.6; Goal 89.0; Obs. 90.6; % Completed 101.8.
  - % secondary pass rate: 2007 86.1; 2008 85.6; 2009 85.5; 2010 89.6; Obs. 104.8; Goal 86.0; Obs. 91.1; % Completed 105.9.
- Reduced illiteracy
  - Illiteracy rate for those aged 15 and older (22.0% in 2005 Census): 2007 20.2; 2008 7.5; 2009 5.0; 2010 3.3; Obs. 66.0; Goal 4.0; Obs. 3.0; % Completed 133.3; Institution: MINED.

### Health, child protection, and social programs — selected indicators
- Health
  - Maternal mortality rate for every 100,000 live births: 2008 76.5; 2009 62.5; 2010 67.0; 2010 59.8; Obs. 112.0; Goal 62.8; Obs. 67.4; % Completed 93.0; Institution: MINSA.
  - Infant mortality rate for every 100,000 live births: 2008 29.0 (1,947); 2009 28 (1,931); 2010 27.0 1,794; 2010 26.0 1,874; Institution: MINSA.
- AMOR Program (children and adolescents)
  - No. of street children and adolescents captured and included in school system: 2008 8,908; 2009 9,110; 2010 8,000; 2010 10,858; Obs. 136; Goal 8,000; Obs. 13,163; % Completed 165.0; Institution: MIFAN.
  - No. of children under the age of six with integrated care in Child Development Centers (CDIs): 2008 16,217; 2009 98,246; 2010 90,048; 2010 90,025; Obs. 100; Goal 96,132; Obs. 88,179; % Completed 92.0; Institution: MIFAN.
- Access to drinking water and sanitation
  - % effective coverage of drinking water in urban areas: 2007 72.0; 2008 78.0; 2009 80.0; 2010 80.0; Obs. 100; Goal 82.0; Obs. 86.0; % Completed 104.8; Institution: ENACAL.
  - % effective coverage of drinking water in rural areas: 2007 56.3; 2008 58.7; 2009 59.4; 2010 59.4; Obs. 100; Goal 62.1; Obs. 68.6; % Completed 110.4; Institution: FISE.
  - % access to sanitary sewers by urban population: 2007 36.5; 2008 37.2; 2009 38.0; 2010 38.0; Obs. 100; Goal 43.0; Obs. 38.0; % Completed 88.3; Institution: ENACAL.
  - % coverage of sanitation for rural population: 2007 73.2; 2008 74.0; 2009 76.3; 2010 76.3; Obs. 100; Goal 79.0; Obs. 84.8; % Completed 107.3; Institution: FISE.

### Introduction — strategy, energy, and policy actions
- NHDP timeline and orientation
  - NHDP presented preliminarily April 2008 and final version October 2008; based on Citizen Power Model with human beings at its center.
- Energy crisis and response
  - Initial energy crisis in 2007 with blackouts up to 12 hours daily resolved by rapid installation of 240 MW via ALBA solidarity plus an additional 110 MW, totaling 350 MW.
  - Strategy: reduce dependence on oil for electricity generation; transition from 20 percent renewable energy in 2007 to 90 percent renewable energy in 2017.
  - Considered sources: hydroelectricity, geothermal power, wind power, and biomass aimed at doubling electrical capacity.
- Economic and social policy mix
  - Efforts: macroeconomic stability, tripartite labor consultation, guarantee private property, stable power supply, change energy matrix to renewables.
  - Programs to include previously excluded agents: Zero Hunger, rural recapitalization, fair credit, capitalization for poor families, rural electrification expansion, alliances with economic sectors and SMEs.
  - ALBA financing: concessionary petroleum and creation of fund to finance economic activity and a social fund.
- Social programs highlighted
  - Free education and health consolidated; high-impact programs include battle for sixth grade, battle for the third year of secondary school, AMOR programs, MOSAFC, Milagro operation (vision), Everyone Has a Voice (disability detection and care), program for the elderly, detection/attention to critical social situations, increased social security coverage, continued subsidy policies.

### Reducing poverty and inequality — measured outcomes and dynamics
- Poverty measurement and recent changes
  - Method: indirect Poverty Line and Aggregate Consumption model based on EMNV by INIDE.
  - 2005-2009 outcomes: general poverty fell by 5.8 percentage points (from 48.3 to 42.5); extreme poverty fell by 2.6 percentage points (from 17.2 to 14.6).
  - Between 2001 and 2005 poverty increased: general poverty +2.5 percentage points; extreme poverty +2.1 percentage points.
  - Nicaragua 2005-2009 average annual growth rate 1.69 2 percent (note: text includes a footnote clarifying 2009-2010 performance).
- Role of growth and distribution
  - Between 2005 and 2009 Nicaragua ranked second in the region in progress made in income distribution: income Gini coefficient fell by 9.8 percent.
  - Regional comparisons cited: Venezuela 15.92 percent; Brazil 6.04 percent; Ecuador 5.84 percent; Paraguay 4.48 percent.
- Urban-rural and regional disparities (selected figures)
  - 2005 vs 2009 by area:
    - National general poor: 2005 48.3; 2009 42.5; change -5.8.
    - Urban general poor: 2005 30.9; 2009 26.8; change -4.1.
    - Rural general poor: 2005 70.3; 2009 63.3; change -7.0.
    - National extreme poor: 2005 17.2; 2009 14.6; change -2.6.
    - Urban extreme poor: 2005 6.7; 2009 5.6; change -1.1.
    - Rural extreme poor: 2005 30.6; 2009 26.6; change -3.9.
  - Regional examples:
    - Urban Pacific general poor: 2005 37.7; 2009 28.7; change -9.0.
    - Rural Center extreme poor: 2005 37.1; 2009 29.3; change -7.8.
- Gender and poverty
  - 2005-2009 national changes by gender:
    - General poor men: 2005 49.6; 2009 43.2; change -6.4.
    - General poor women: 2005 47.1; 2009 41.9; change -5.1.
    - Extreme poor men: 2005 17.8; 2009 15.4; change -2.4.
    - Extreme poor women: 2005 16.7; 2009 13.9; change -2.8.
  - Urban and rural gender breakdowns provided in tabular form (EMNV 2005 and 2009).
- Programmatic contribution to poverty reduction
  - Noted drivers: programs providing financial and in-kind resources to micro, small, and medium producers (Zero Hunger and Zero Usury) and increased international prices for raw materials.
  - Program coverage (2010):
    - Zero Hunger covered 59,755 microproducers, representing 19.38 percent of the national total.
    - Zero Usury covered 90,209 microproducers, representing 29.26 percent of the national total.

*Source: TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (ANNEX 2: STRATEGIC MATRIX OF THE PLAN AND GOALS ACHIEVED).*

### 2.8 percent for men and women, respectively.

### _cr11323 - 2.8 percent for men and women, respectively.

### Distribution of consumption by quintile
- Comparative analysis 2005 vs 2009 shows greater increase in average spending in the poorest quintiles and a decline in the wealthiest quintile.
- Table 3 — Nicaragua: Comparison of Consumption Quintiles (average per capita consumption, cordobas; consumption share, percent):
  - Quintile 1: 2005 Average 4,676.15; Consumption Total 6.20. 2009 Average 5,783.77; Consumption Total 6.84.
  - Quintile 2: 2005 Average 7,752.76; Consumption Total 10.30. 2009 Average 9,459.79; Consumption Total 11.19.
  - Quintile 3: 2005 Average 11,051.90; Consumption Total 14.70. 2009 Average 13,209.21; Consumption Total 15.63.
  - Quintile 4: 2005 Average 16,347.85; Consumption Total 21.70. 2009 Average 18,482.63; Consumption Total 21.86.
  - Quintile 5: 2005 Average 35,551.27; Consumption Total 47.20. 2009 Average 37,622.67; Consumption Total 44.51.
  - Total: 2005 Average 15,075.39; Consumption Total 100.00. 2009 Average 16,906.14; Consumption Total 100.00.
- Narrative finding: consumption increased in all quintiles except the highest, which declined from 47.2 percent of total consumption in 2005 to 44.51 percent in 2009; Quintile 1 rose from 6.2 percent to 6.84 percent; Quintiles 2–4 show similar upward trends.

### GINI coefficient and Lorenz Curve for consumption
- Lorenz curve 2005 vs 2009 indicates the 2009 curve is slightly closer to the 45º line than 2005, confirming a reduction in inequity of spending distribution.
- National Gini coefficient for consumption:
  - 2005: 0.41
  - 2009: 0.37
  - Change 2009-05: -0.04
- By area of residence:
  - Urban area: 2005 0.38; 2009 0.35; Change -0.03.
  - Rural area: 2005 0.34; 2009 0.31; Change -0.03.
- Narrative finding: a "substantial four percent reduction" in the national Gini coefficient between 2005 and 2009, benefiting the poorest sectors.

### Depth and severity of poverty based on consumption
- Depth of poverty (poverty gap) 2009:
  - National total depth index: 3.6 (interpreted in text as "on average the extreme poor need about 4.0 percent of the value of the extreme poverty line").
  - Urban extreme poor depth index: 1.16.
  - Rural extreme poor depth index: 6.82 (five times higher than urban).
- Severity of poverty (extreme poverty severity index) 2009:
  - National: 1.34.
  - Urban: 0.35.
  - Rural: 2.64 (6.5 times higher than urban).
- Table 5 — Nicaragua: Change in Depth and Severity of Poverty (selected entries, indices and changes 2005 to 2009):
  - General poverty — National Depth Index: 2005 17.20; 2009 14.06; Change -3.14. Severity Index: 2005 8.20; 2009 6.33; Change -1.87.
  - General poverty — Urban area Depth: 2005 8.76; 2009 7.14; Change -1.62. Severity: 2005 3.50; 2009 2.75; Change -0.75.
  - General poverty — Rural area Depth: 2005 28.07; 2009 23.22; Change -4.85. Severity: 2005 14.08; 2009 11.06; Change -3.02.
  - Extreme poverty — National Depth: 2005 4.16; 2009 3.60; Change -0.56. Severity: 2005 1.46; 2009 1.34; Change -0.12.
  - Extreme poverty — Urban area Depth: 2005 1.33; 2009 1.16; Change -0.17. Severity: 2005 0.41; 2009 0.35; Change -0.06.
  - Extreme poverty — Rural area Depth: 2005 7.70; 2009 6.82; Change -0.88. Severity: 2005 2.78; 2009 2.64; Change -0.14.
- Narrative finding: severity of poverty fell during 2005–2009, reducing gaps in all areas and more obviously in rural areas.

### Measuring poverty by international poverty line (PPP)
- Share of national population consuming ≤ US$1.25 per day:
  - 2005: 11.2 percent.
  - 2009: 5.5 percent.
  - Change 2009-05: -5.7 percentage points (described as "a reduction of 5.7 percentage points compared to 2005 or more than half").
- Share consuming ≤ US$2.00 per day:
  - 2005: 31.6 percent.
  - 2009: 21.0 percent.
  - Change 2009-05: -10.6 percentage points.
- Table 6 — Nicaragua: Population Living on Less than US$1.25 and US$2.00 per Day (selected entries):
  - Nicaragua (national): Less than US$1.25 — 2005 11.2; 2009 5.5; Change -5.7. Less than US$2.00 — 2005 31.6; 2009 21.0; Change -10.6.
  - Urban area: Less than US$1.25 — 2005 3.8; 2009 1.5; Change -2.3. Less than US$2.00 — 2005 15.9; 2009 9.8; Change -6.1.
  - Rural area: Less than US$1.25 — 2005 20.5; 2009 10.7; Change -9.8. Less than US$2.00 — 2005 51.4; 2009 35.7; Change -15.7.
  - Managua: Less than US$1.25 — 2005 2.2; 2009 1.0; Change -1.2. Less than US$2.00 — 2005 8.9; 2009 6.5; Change -2.4.
  - Rural central: Less than US$1.25 — 2005 25.9; 2009 10.7; Change -15.2. Less than US$2.00 — 2005 59.2; 2009 40.7; Change -18.5.
- Narrative finding: notable reductions in percentages living on ≤ US$1.25 and ≤ US$2.00 per day across areas of residence.

### GINI coefficient and Lorenz Curve for income; income distribution
- Lorenz curve for income 2005 vs 2009 shows income distribution in 2009 has improved relative to 2005 (approaches 45º).
- Table 7 — Nicaragua: Change in Gini Coefficient for Income:
  - National: 2005 0.51; 2009 0.46; Change 2005–09 -0.05.
  - Urban area: 2005 0.49; 2009 0.43; Change -0.06.
  - Rural area: 2005 0.46; 2009 0.42; Change -0.04.
- Narrative finding: at national level Gini fell by five percentage points; largest reduction by residence occurred in urban areas (6 percentage points) compared to rural areas (3 percentage points).
- Average income changes 2005 to 2009:
  - National average per capita income: 2005 12,797.1 cordobas; 2009 13,746.2 cordobas; Change 7.4 percent.
  - Urban average: 2005 16,545.6 cordobas; 2009 17,357.8 cordobas; Change 4.9 percent.
  - Rural average: 2005 8,058.3 cordobas; 2009 8,965.0 cordobas; Change 11.3 percent.
- Table 8 — Comparative Average Per Capita Income by Source (selected entries, cordobas, 2005 and 2009; percent changes preserved as in source):
  - Salary Agricultural: 2005 821.9; 2009 782.5; Change -4.8. Urban 2005 468.2; 2009 326.1; Change -30.3. Rural 2005 1,269.0; 2009 1,386.6; Change 9.3.
  - Salary Non-agricultural: National 2005 4,517.4; 2009 4,997.8; Change 10.6. Urban 2005 6,897.9; 2009 7,436.3; Change 7.8. Rural 2005 1,508.0; 2009 1,769.7; Change 17.4.
  - Own Use Non-agricultural: National 2005 2,610.8; 2009 3,142.1; Change 20.3. Urban 2005 3,890.1; 2009 4,597.8; Change 18.2. Rural 2005 993.7; 2009 1,215.0; Change 22.3.
  - Own Use Agricultural: National 2005 1,861.6; 2009 1,419.9; Change -23.7. Urban 2005 1,197.2; 2009 410.1; Change -65.7. Rural 2005 2,701.5; 2009 2,756.6; Change 2.0.
  - Transfers: National 2005 157.2; 2009 115.2; Change -26.7. Urban 2005 97.8; 2009 75.4; Change -22.9. Rural 2005 232.3; 2009 167.9; Change -27.7.
  - Food grant or gift: National 2005 125.0; 2009 210.5; Change 68.4. Urban 2005 105.9; 2009 181.8; Change 71.7. Rural 2005 149.1; 2009 248.4; Change 66.6.
  - Remittances: National 2005 766.0; 2009 721.5; Change -5.8. Urban 2005 1,127.5; 2009 1,042.8; Change -7.5. Rural 2005 309.0; 2009 296.1; Change -4.2.
  - Pensions: National 2005 247.4; 2009 373.8; Change 51.1. Urban 2005 379.5; 2009 581.5; Change 53.2. Rural 2005 80.3; 2009 98.8; Change 23.1.
  - Other: National 2005 98.3; 2009 182.3; Change 85.5. Urban 2005 113.2; 2009 242.6; Change 114.2. Rural 2005 79.3; 2009 102.4; Change 29.1.
  - Rental of own home: National 2005 1,463.2; 2009 1,674.5; Change 14.4. Urban 2005 2,092.3; 2009 2,292.5; Change 9.6. Rural 2005 667.9; 2009 856.3; Change 28.2.
  - Leases, interest & dividends: National 2005 124.0; 2009 118.8; Change -4.2. Urban 2005 172.4; 2009 168.6; Change -2.2. Rural 2005 62.8; 2009 52.9; Change -15.8.
  - Grants: National 2005 4.4; 2009 7.4; Change 68.4. Urban 2005 3.6; 2009 2.2; Change -37.3. Rural 2005 5.4; 2009 14.2; Change 162.7.
  - General Average: National 2005 12,797.1; 2009 13,746.2; Change 7.4. Urban 2005 16,545.6; 2009 17,357.8; Change 4.9. Rural 2005 8,058.3; 2009 8,965.0; Change 11.3.
- Note: 1/ Values in 2005 cordobas. Source: INIDE, EMNV 2005 and 2009.

### Unmet Basic Needs (UBN)
- Between 2005 and 2009 the percentage of households with UBNs fell significantly.
- Largest declines by type of need:
  - Overcrowding fell by 10.9 percentage points.
  - Low education fell by 10.4 percentage points.
  - Inadequate housing fell by 0.6 percentage points.
  - Economic dependency fell by 1.4 percentage points.

### The Citizen Participation Model
- Government strategy since January 10, 2007 centers on building a Citizen Power Model to reduce poverty, inequities, and malnutrition by mobilizing social capacity and volunteerism.
- Operational highlights:
  - More than 1,100,000 Nicaraguans mobilized each year as volunteers in literacy campaigns, community health and vaccination events, social solidarity, reforestation, and support for other social programs.
  - Priority on encouraging and developing micro, small, and medium-sized enterprise (MSME) for food production, job creation, poverty reduction, and strengthening institutional policies, incentives, and fair credit.
  - Financial assistance and support from Banco de Fomento a la Producción (BFP), the ALBA CARUNA Cooperative (Single Rural Fund), and universities for technical assistance, training, and purchase of machinery and equipment.
  - Private sector collaboration via a mixed government-private sector commission and a matrix of commitments with periodic follow-up. Three collaborative achievements highlighted:
    - Tripartite agreement on the minimum wage recognized by the ILO as a model for Latin America and the Caribbean.
    - Agreement on a tax adjustment in the Fiscal Equity Law (LEF) to close the fiscal gap in the 2010 budget due to the international economic crisis.
    - Agreement on a social housing plan.
- Pillars of the Citizen Power Model:
  1. Awareness, identity, culture, and values.
  2. Political development with direct democracy.
  3. Economic development with social justice.
  4. Social development that ensures dignity.
  5. Sustainable development, defense, restoration, and protection of the environment.
  6. Reconciliation and national unity.
  7. Respectful relationships with all countries in the world.

### Strategic policies and programs of the NHDP — Macroeconomics and macroeconomic stability policy
- Central objective of the NHDP: improve living conditions, particularly for those in poverty.
- Policy revision in response to the international economic crisis concluded in September 2009 and included strategies on:
  - Economic growth (macroeconomic policy; public investment policy; productive and commercial strategy).
  - Development of welfare and social equity.
  - Measures for good governance.
  - Environmental sustainability and forest development.
  - Government policy on natural disasters and disasters caused by human activity.
  - Caribbean coast development strategy.
- Macroeconomic performance and projections:
  - 2007 GDP growth: 3.1 percent.
  - October 2008 NHDP projections (endorsed): growth of 4.2 percent for 2008; 4.5 percent for 2009; 5.0 percent for 2010; and 5 percent for 2011.
  - Actual 2008 growth fell from projected 4.2 percent to 2.8 percent due to the international economic crisis (felt primarily starting in Q3 2008).
  - 2009 trend: reduced exports, foreign investment, family remittances, external bank financing, and economic vitality; tax revenues declined, resulting in a decline of -1.5 percent instead of the projected 4.5 percent.
- Government response since late 2008: implement a more far-reaching strategy with a tighter order of priorities to safeguard the most socially vulnerable population.

*Source: EMNV 2005 and 2009; INIDE; GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (September 12, 2011).*

### 2011. Its primary objective has been to reduce the effects of the crisis on the most vulnerable

### _cr11323 - 2011. Its primary objective has been to reduce the effects of the crisis on the most vulnerable

### Objective and context
- Primary objective: reduce the effects of the crisis on the most vulnerable sectors, safeguard a framework favorable to production, investment, and employment, and maintain population cohesion around essential tasks.
- Trigger: effects of the international financial crisis and intrinsic structural problems led President Daniel Ortega in late 2008 to direct the Economic Cabinet to develop contingency measures titled “Defense of Production, Investment, Growth, and Employment.”
- “Updated Technical Summary of the 2009-2011 NHDP” approved in September 2009, defining policies, goals, and resource allocation under crisis limitations.

### Principal pillars of the 2009 contingency measures
- (i) Financial stability;
- (ii) Priority public investment;
- (iii) Support for production and private investment;
- (iv) Solidarity-based employment;
- (v) Fiscal austerity.

### Basic principles of the NHDP
- Renewed role of government in direct economic, social, environmental, and cultural actions.
- Social policy with more direct content in favor of the poor.
- Prioritized infrastructure policy as social response.
- Capitalization of the poor via programs focusing on food production and marketing.
- Continuation of energy policy prioritizing renewable energy programs.
- Guarantees for private investment and coordination with the private sector.
- Ongoing dialogue with the international community for trade and finance support.
- Strengthening of the democratic process.

### Macroeconomic outcomes and sectoral performance (2009–2010)
- Annual growth in 2010: 4.5 percent.
- Most dynamic activities in 2010:
  - Agriculture: 7.7 percent;
  - Manufacturing: 7 percent.
- Investment recovery: increased by 29.8 percentage points compared to the previous year.
- Consumption growth: 3.2 percent.
- Exports growth: 13.2 percent.
- Imports growth: 10.8 percent.
- Goods component of exports: 19.9 percent increase.
- Services component of exports: 4.7 percent reduction.
- Recovery of private consumption supported by remittances, growth in real salaries, and minimum wage adjustments.
- Transfer financed by Venezuelan cooperation for public sector workers earning ≤ 5,500 córdobas:
  - Transfer amount: C$530 up to May 1, 2011 and C$700 after that date.

### Fiscal policy orientation and outcomes
- Fiscal policy reoriented to have greater impact on infrastructure and social/productive programs to combat poverty.
- Structural change in spending began in 2007 to align resources with NHDP objectives: eliminate non-priority spending, regulate civil servant salaries, renegotiate domestic public debt, implement anti-crisis program.
- Tax policy reforms and greater tax administration efficiency sought; complemented by external financing management.
- NHDP public investment priority levels: primary and immediate, stabilization, growth with social justice.
- Changes in allocation criteria to improve impact on poverty:
  - (i) Enhanced productive capacities among the poorest groups;
  - (ii) Implementation of a food strategy in rural areas;
  - (iii) Restoration of free health and education services;
  - (iv) Implementation of a new National Social Welfare System;
  - (v) Creation of anti-poverty programs.
- Tax Consultation (early 2009) approaches and late-2009 approvals:
  - (a) Reduction of production and financing costs of productive activities;
  - (b) Financing of fiscal stimuli with general and rationalization measures;
  - (c) Neutrality from the tax collection perspective;
  - (d) Improved tax legislation.
- Fiscal response to crisis:
  - Spending budget adjusted in 2009 by 2.2 percent of GPD, partially offsetting revenue decline.
  - Deficit after grants from the Non-Financial Public Sector (NFPS) in 2009: 1.9 percent of GDP (0.8 percent in 2008).
  - Deficit after grants from the NFPS in 2010: 0.5 percent of GDP.
- LEF reform effects for 2010:
  - Level of revenue increased by 1.4807 billion córdobas;
  - Outlays increased by 1.2077 billion córdobas;
  - Fiscal deficit after grants reduced by 504 million córdobas.
- Salary policy:
  - Adjustments in March for central government employees earning ≤ 20,000 córdobas.
  - Bonus for >120,000 government employees earning ≤ 5,500: 530 córdobas until May 2011 and 700 córdobas after that date (not part of the PGR), financed with ALBA private initiative contributions.
- Electricity subsidies and consumer protections:
  - Urban mass transit fares kept at 2.50 córdobas in Managua and Ciudad Sandino.
  - ENACAL froze drinking water rates.
  - INE approved four rate increases in 2009 totaling 19.5 percent (net), with rates frozen for six months until April 30, 2010 due to “El Niño”; cost estimated at US$20 million financed with Venezuelan cooperation funds.
  - INE approved a 6.85 percent electricity increase in May 2010 without affecting marketing charge, public lighting rate, or consumers using < 150 KWH per month.

### Monetary and exchange policy
- Exchange policy as nominal price anchor maintained: convertibility of the cordoba with sliding currency rule devaluing the cordoba at five percent per year versus the dollar.
- Monetary policy aimed to:
  - Conserve international reserves level covering at least twice the monetary base;
  - Keep sharp fluctuations in reserves to a minimum;
  - Use Open Market Operations (OMO) as principal instrument.
- Banking system developments:
  - Gross International Reserves (GIR) by end-2009: US$1.573 billion (2.6 times the monetary base).
  - IMF allocation of Special Drawing Rights (SDR) during 2009: 164.4 million dollars.
  - GIR as of end-December 2010: 1.799 billion dollars (2.7 times the monetary base).
- Monetary management during recovery stressed frequent revision of projections for required reserves, currency, and government deposits with BCN, and promoted short-term debt placement for liquidity management with lower returns.
- Program context: Extended Credit Facility (ECF) with the IMF.
  - On November 19, 2010 the IMF Executive Board approved the fourth and fifth review of the ECF, extended the program one year, and disbursed 12.8 million SDRs (equivalent of US$19.6 million) to strengthen the foreign exchange regime.

### Financial sector and institutional strengthening
- Objectives under the ECF: (i) keeping prices stable; (ii) safeguarding soundness of the National Financial System (NFS); (iii) strengthening BCN legal framework.
- New Organic Law of the BCN approved July 2010 to consolidate BCN institutional status, improve monetary policy instruments, and strengthen accountability mechanisms.
- Measures to preserve NFS soundness: on-site supervision and strengthened supervisory framework, emphasis on microfinance and cooperative sector supervision.
- Public finances program measures: LEF reform, increased INSS contribution rate, commitment to keep payroll levels constant as percentage of GDP.
- PGR for 2011 provided for a deficit of 1.5 percent of GDP, including spending of 0.7 percent of GDP to finance the presidential elections.

### Supplemental agenda, transparency, and accountability
- Supplemental agenda focus: BCN institutional strengthening, electrical sector development, and measures to improve transparency and accountability.
- Electrical sector measures:
  - National Assembly expanded residential customers subject to fines for electricity irregularities (July 2010).
  - Regulatory institute approved nearly seven percent electricity rate increase in May 2010 to correct generation cost deviation.
  - Private sector participation increased generation by 220 MW in 2009-10, of which 60 MW were from renewable sources.
- Transparency and reporting advances:
  - Two Official Foreign Cooperation Reports published (cutoffs: close of 2009 and first half of 2010).
  - Report on monitoring social indicators for 2009 and monthly report on physical execution of the Public Investments Program published.
  - Audit of the 2009 PGR presented by the Comptroller General of the Republic (CGR).
  - 2007-2009 BCN financial statements presented by external auditing firm.
- Legal/institutional reforms:
  - New Government Procurement and Contracting Law approved October 2010 to improve efficiency and transparency.
  - Measures adopted to strengthen tax and customs administration.
  - Planned 2011 study on management of central government fixed and transitory costs budget.

### Public investment policy and priorities (2007–2010)
- New strategy to increase efficiency, return, and impact of public investment and foreign cooperation; PDPCE prioritized public investment as crisis response starting point.
- Policy focus: sectoral, integrated development of productive infrastructure to mobilize activity, create employment, benefit SMEs, and link domestic and regional private investment.
- Emphasis on projects with high national impact, prioritizing gross capital formation and reducing current expenditure recorded as investment.
- PIP priorities during 2007–2010:
  - Rural and agroindustrial productive potential;
  - Potential for electricity generation from renewable sources;
  - Energy infrastructure;
  - Highways, ports, and airports.
- Increased resources focused on drinking water and sanitation, health, and education sectors.
- Strategic development of institutional planning and pre-investment capacities for a project portfolio aligned with NHDP and technical evaluation per Law on Financial Administration and the Budget Regime.
- Summary priorities for investment and gross fixed capital formation starting in 2007:
  - Social infrastructure to increase coverage and improve basic social services;
  - Productive investment with emphasis on poverty reduction;
  - Investment in electricity;
  - Transportation infrastructure;
  - Productive investment;
  - Investment in social housing.

*Government of Reconciliation and National Unity — Technical Progress Report on National Human Development Plan as of 2010 (September 12, 2011).*

### 1. The Public Investments Program consists solely of investment projects in gross fixed capital

### 1. The Public Investments Program consists solely of investment projects in gross fixed capital

### Definition and scope of the Public Investments Program (PIP)
- The Public Investments Program consists solely of investment projects in gross fixed capital formation, defined as projects related to the construction, expansion, and/or rehabilitation of infrastructure, including studies and designs and the purchase of machinery and equipment supplemental to the operation of such projects, with parallel improvements in quality and spending efficiency.

### Programmatic structure and budgetary classification
- The programmatic structure of projects is classified correctly so that a project is broken down into construction and activities with the formal allocation of financial resources in the General Budget of the Republic.

### Institutional strengthening: Public Investment General Directorate (DGIP) and SNIP
- The Public Investment General Directorate (DGIP) was strengthened to carry out its role as the lead agency in the investment process and the National Public Investment System (SNIP), through the following actions:
  - Consolidation of the system for monitoring the physical and financial execution of the PIP, based on contract scheduling;
  - Consolidation of the SNIP Projects Bank as the single registry for government investment projects;
  - Quality assurance of national public investment, through technical-economic review of investment projects, in compliance with the provisions of Law No. 550;
  - Activities to improve the human capital of the SNIP have been supported by providing intensive courses on strategic planning, management of the execution of public investment, project management, and a postgraduate program in project formulation and evaluation.
    - Coverage has included 38 member institutions of the SNIP and 78 employees.
    - This is a substantive function of the DGIP, with immediate effects on the quality of the projects and programs developed by institutions and improvements in daily activities related to the management and administration of the projects cycle.
    - Employees have also been trained in the correct use of the projects bank, particularly the recently implemented monitoring system.

### Coordination and oversight: PLANINPREC and institutional committees
- The Planning, Investment, Budget, and Cooperation Commission (PLANINPREC) was established as the lead agency for monitoring the planning and execution of the plans and goals of central government institutions and public enterprises.
- Institutional-level Planning and Budget Committees, which are the counterpart of PLANINPREC, were also established.

### Execution performance
- All the above has allowed for better planning and execution of the PIP, with execution increasing from 85.6 percent in 2007 to 93.4 percent in 2010.

### Public investment by sector (2007–2010)
- Table 9
- NICARAGUA: Public Investment Program by Sector
- 2007       2008       2009        2010        Total
- Millions of Dollars
- Communications                                                                  0.32.60.6                                                                  0.84.3
- Culture, sports, and recreation 2.12.62.9 2.910.5
- Environment                                                                         9.03.50.3                                                                         0.212.9
- Mining, industry, commerce, and tourism 4.56.62.3 0.413.8
- Protection, assistance, and social security 8.36.71.4 1.718.0
- Housing                                                                                2.35.65.8                                                                                7.621.3
- Multisectoral                                                                      26.421.4-                                                                      -47.8
- Government administration 41.812.59.1 8.772.2
- Health                                                                                 40.725.122.6                                                                                 11.8100.3
- Agriculture, forestry, and fisheries 51.550.00.9 1.0103.4
- Energy                                                                                20.918.429.4                                                                                38.3107.0
- Education                                                                           31.523.833.0                                                                           24.5112.8
- Water, sewers, and sanitation 44.739.071.7 40.4195.8
- Community projects and services 58.975.176.3 89.7299.9
- Transportation                                                                    84.988.4112.8                                                                    119.8405.9
- Source: MHCP-SNIP

### Sectoral priorities and alignment with NHDP
- In accordance with the investment policy and in keeping with the guidelines of the NHDP, during the period 2007-2010 sectoral level resources have been channeled toward promoting the principal sectors that foster the country’s economic and social welfare.
- The transportation, community projects and services, water and sanitation, education, health, energy, and agriculture, forestry, and fisheries sectors are the sectors where most resources and execution efforts have been concentrated.

*GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010. September 12, 2011.*

### Annex  3:  Definition  of  budgetary  effort  in  combating  poverty,  Updated  NHDP  2009-2011  (Proceed  despite  the

### Annex 3: Definition of budgetary effort in combating poverty, Updated NHDP 2009-2011 (Proceed despite the international economic crisis), September 2009

### Definition of budgetary effort
- Budgetary effort is understood as additional resources available that the budget could allocate to programs and projects directed to combating poverty without compromising the country’s financial or economic stability.
- Considered spending for combating poverty includes:
  - ensuring free and improved basic health, nutrition and education;
  - protection for the population living in extreme poverty and vulnerability;
  - resources for improving basic infrastructure for the well-being of the poor and increasing their productivity;
  - support programs to increase productivity of small and medium-sized producers;
  - environmental protection, road infrastructure construction and maintenance, rural electrification, and energy sector modernization programs.

### Aggregate budgetary effort (2007–2010 vs 2002–2006)
- Government investment during 2007-2010: US$3.3585 billion (average US$841.0 million per year), representing 13.5 percent of GDP.
- Investment during 2002-2006: annual average US$536.8 million (11.7 percent of GDP).
- Annual average increase (07-10 vs 02-06): US$304.1 million, or 56.7 percent.
- Cumulative 2002-2006: US$2,684.2.
- Cumulative 2007-2010: US$3,358.5.
- Impact on poverty indicators (2005–2009, 2009 EMNV):
  - General poverty reduced by 5.8 percentage points.
  - Extreme poverty reduced by 2.6 percentage points.

### Distribution of spending by impact level (2007–2010)
- Total invested in programs with greatest impact on income distribution (first level): US$2.5999 billion (77.4 percent of the 07-10 resources); annual average US$650.0 million (10.5 percent of GDP); growth rate 76.7 percent.
  - Of this, capitalization and increased productivity received US$664.5 million (19.8 percent of the first-level amount).
  - Improved spending efficiency received US$94.1 million (2.8 percent of the first-level amount).

### Key table aggregates and selected line items (exact figures preserved)
- Total (02-06 cumulative): 2,684.2; Annual Ave. 02-06: 536.8.
- Annual values 2007–2010: 746.1 (2007), 836.6 (2008), 870.0 (2009), 905.8 (2010) — Cumulative 07-10: 3,358.5; Annual Ave. 07-10: 841.0.
- Improved income distribution (cumulative 02-06): 1,839.4; Annual Ave. 02-06: 367.9.
  - Provision of basic services (cumulative 02-06): 1,380.7; 2007: 395.1; 2008: 448.2; 2009: 494.8; 2010: 459.7; Cumulative 07-10: 1,797.8; Annual Ave. 07-10: 449.4.
    - Primary, preschool, adult, and special education (cumulative 02-06): 510.7; Cumulative 07-10: 712.1; Annual Ave. 07-10: 178.0.
    - Health (cumulative 02-06): 683.4; Cumulative 07-10: 906.8; Annual Ave. 07-10: 226.7.
    - Water and sanitation (cumulative 02-06): 147.2; Cumulative 07-10: 157.8; Annual Ave. 07-10: 39.4.
  - Direct transfers to the poor (cumulative 02-06): 126.9; Cumulative 07-10: 132.9; Annual Ave. 07-10: 33.2.
  - Food production (cumulative 02-06): 21.9; Cumulative 07-10: 57.7; Annual Ave. 07-10: 14.4.
- Capitalization and increased productivity (cumulative 02-06): 726.2; Annual Ave. 02-06: 145.2; Cumulative 07-10: 664.5; Annual Ave. 07-10: 167.4.
  - Road infrastructure (cumulative 02-06): 191.4; Cumulative 07-10: 132.3; Annual Ave. 07-10: 33.1.
  - Electricity (cumulative 02-06): 96.2; Cumulative 07-10: 136.5; Annual Ave. 07-10: 35.4.
    - Rural electrif. (cumulative 02-06): 39.1; Cumulative 07-10: 83.2; Annual Ave. 07-10: 22.1.
  - Productive develop. (cumulative 02-06): 237.3; Cumulative 07-10: 198.2; Annual Ave. 07-10: 49.6.
    - Small & med. enterprise (cumulative 02-06): 5.2; Cumulative 07-10: 43.2; Annual Ave. 07-10: 10.8.
  - Secondary & techn. ed. (cumulative 02-06): 94.6; Cumulative 07-10: 129.4; Annual Ave. 07-10: 32.4.
  - Environment (cumulative 02-06): 106.7; Cumulative 07-10: 68.1; Annual Ave. 07-10: 17.0.
- Improved spending efficiency (cumulative 02-06): 118.6; Annual Ave. 02-06: 23.7; Cumulative 07-10: 94.1; Annual Ave. 07-10: 23.5.
  - Health (02-06 cumulative): 32.3; Cumulative 07-10: 30.4; Annual Ave. 07-10: 7.6.
  - Education (02-06 cumulative): 64.0; Cumulative 07-10: 40.5; Annual Ave. 07-10: 10.1.
  - Social protection (02-06 cumulative): 22.4; Cumulative 07-10: 23.2; Annual Ave. 07-10: 5.8.

### Sectoral analysis and priorities
- Social sectors accounted for two-thirds of executed spending during 2007-2010:
  - Social sectors: US$2.2117 billion (65.9 percent of executed spending 2007-2010).
  - Social sector share of total average increase (US$304.1 million): US$204.4 million (67.2 percent).
  - Breakdown (cumulative 02-06 vs 07-10):
    - Social Sector cumulative 02-06: 1,742.7; Annual Ave. 02-06: 348.5; Cumulative 07-10: 2,211.7; Annual Ave. 07-10: 552.9.
      - Health cumulative 02-06: 715.6; Cumulative 07-10: 937.2; Annual Ave. 07-10: 234.3.
      - Education cumulative 02-06: 669.2; Cumulative 07-10: 882.1; Annual Ave. 07-10: 220.4.
- Productive sector absorbed 21.0 percent of resources: US$748.0 million (cumulative 07-10).
  - Road infrastructure cumulative 07-10: 413.4; Annual Ave. 07-10: 103.3.
  - Energy cumulative 07-10: 136.5; Annual Ave. 07-10: 35.4.
- Other sectors executed 11.9 percent: US$398.8 million (cumulative 07-10), including municipal infrastructure and environmental protection.

### Programmatic impacts and institutional changes
- Health sector transformation:
  - Priorities: preventive public health, family care model, regional equity, preferential treatment of vulnerable groups, differentiated interventions for populations in poverty and rural/marginal urban areas, adaptation of health interventions.
  - US$906.8 million allocated to health services (Cumulative 07-10); average annual increase US$90.0 million.
  - Policy change: elimination of charges in the public health system; reestablished free nature of healthcare and prescription medications.
- Education sector transformation:
  - Restored citizens’ fundamental right to education; reversed exclusion created by previous school autonomy model.
  - Basic education (primary, preschool, adult, special ed.) Cumulative 07-10: US$712.1; Annual Ave. 07-10: 178.0.
  - Funds financed salaries, new budgetary items for subsidized autonomous centers, community preschool services, increased allocations for special education, salary leveling, hiring of new teachers, and the Integrated School Nutrition Program (PINE).

### Targeted investments and programs
- Water and sanitation: Cumulative 07-10: US$157.8; focused on marginal urban and rural systems and mini-aqueducts.
- Housing: Cumulative 07-10: US$21.0; subsidizing social housing and building homes for teachers.
- Municipal infrastructure: Cumulative 07-10: US$330.7.
- Highways and rural roads: Cumulative 07-10: US$274.3; used to repair infrastructure damaged by rains and natural disasters to reduce producer losses.
- Direct transfers to the poor: Cumulative 07-10: US$132.9; used for integrated care for children/adolescents at social risk, subsidizing transportation, electricity, drinking water, and disaster relief.
- Food production: Cumulative 07-10: US$57.7; financing Agro-Seeds Program and BPA of the Zero Hunger Program.

### Productivity and energy objectives
- Rural development and productive programs:
  - Productive development Cumulative 07-10: US$198.2; rural development component US$103.3.
  - Small & medium enterprise Cumulative 07-10: US$43.2.
- Energy sector:
  - Cumulative 07-10: US$136.5; Rural electrif. Cumulative 07-10: US$83.2.
  - Government goals: develop renewable hydroelectric and geothermal power; raise per capita energy consumption (current per capita: 2.2 percent of kilowatts — note phrasing preserved from source); electrify slightly more than 50 percent of Nicaragua with the goal of nationwide electrification.
  - Projects: rural distribution systems, small-scale hydroelectricity for off-grid productive uses, substations construction/modernization, transmission system maintenance/rehabilitation.

### Efficiency of spending
- Programs to improve efficiency of institutions providing basic social services recorded cumulative 07-10: US$94.1 (Annual Ave. 07-10: 23.5), a slight reduction compared to the 02-06 period.
- Reduction concentrated in programs to improve administration of the education sector; health and social protection efficiency programs remained at similar execution levels to 2002-2006.

### Foreign trade policy (brief note as included in source)
- Nicaragua continued an open trade policy during the global crisis in 2009.
- Actions included National Assembly approval of the framework agreement for establishing the Central American Customs Union and progress on sanitary and phytosanitary lists and guidelines to facilitate regional trade in agricultural products.
- Nicaragua continued establishing bilateral agreements, including a signed agreement with Panama with a tariff reduction program that began on January 1 (year not specified in the excerpt).

*Source: Planning Directorate - SEPRES (Technical Progress Report on National Human Development Plan as of 2010; Annex 3).*

### 2010. Negotiations also continued on a Free Trade Agreement (FTA) with Chile and Canada.

### _cr11323 - 2010. Negotiations also continued on a Free Trade Agreement (FTA) with Chile and Canada.

### Trade agreements, negotiations, and regional integration
- Negotiations continued on a Free Trade Agreement (FTA) with Chile and Canada.
- Negotiations began on the ALBA-TCP (People’s Trade Agreement) to facilitate more intensive trade among participating countries; the first round was conducted on September 23, 2010 between Ecuador and Nicaragua.
- Nicaragua signed the treaty establishing the SUCRE and participated in preparing the legal and operational infrastructure of the Unitary Regional Clearance System (SUCRE), which began in 2010 with the participation of Venezuela.
- Nicaragua was admitted to the Latin American Integration Association (ALADI) as a Relatively Less Economically Developed Country.
- Concluded and implemented agreements:
  - Partnership Agreement between Central America and the European Union (consolidated GSP+ preferences).
  - Tariff reduction under the FTA with Panama took effect as of January 1, 2010 (as part of agreement signed in 2009).
  - Conclusion of trade negotiations for signing the FTA between Central America and Chile; bilateral protocol with Nicaragua pending signature.
  - DR-CAFTA proceeded according to the established tariff reduction schedule.
  - Entry into effect of the FTA between Taiwan and Nicaragua; FTA and bilateral agreements with Panama; concluded negotiations on the FTA between Nicaragua and Chile (submitted for approval by the National Assembly).
  - Convergence process for the Central America-Mexico FTA advanced; negotiations began with Ecuador and Cuba.
- Quotas and preferential access:
  - Nicaragua gained access to U.S. export quotas for products such as cheese and sugar under preferential tariffs; quotas for cheese and sugar have been fully utilized since 2006, quota for peanuts used to a lesser extent.
  - Quotas for exporting peanuts (partially) and sugar (fully) to Taiwan have been used.

### Export performance, markets, and diversification
- Export growth over the last ten years:
  - Exports increased from US$692.4 million in 2000 to US$1.848 billion by the end of 2010.
  - Average annual growth over the ten years: 11.4 percent.
  - Average annual growth of exports during the first four years of this administration: 15.7 percent (from US$1.1945 billion in 2007 to US$1.848 billion in 2010).
  - Export sales increased by 27.7 percent as of June 30, 2011 and were projected to reach US$2.1397 billion by the end of 2011, representing approximate growth of 15.6 percent compared to the preceding year.
- Market concentration and diversification:
  - 65.7 percent of Nicaragua’s total exports in 2010 were concentrated in the U.S., Central America (Central American Common Market), and the European Union.
  - Venezuelan market exports as of end-2010: US$248.6 million, surpassing by 732.2 percent the US$30.2 million exported in 2008. Notable export products to Venezuela: black beans, coffee beans, milk, beef, and cattle on the hoof.
- Sectoral and zone performance:
  - Free-trade zone exports grew by 31.4 percent in 2010 (compared to -4.8 percent in 2009).
  - Textile and clothing exports grew by 18.9 percent in 2010, based on increased volumes of 11.8 percent.

### Trade flows, deficits, and balance of payments
- Imports and trade deficit trends:
  - Imports grew from US$1.7206 billion in 2000 to US$4.5007 billion in 2010.
  - Trade deficit in goods:
    - US$2.2009 billion in 2008.
    - US$1.5395 billion in 2009.
    - US$1.6357 billion in 2010 (25 percent of GDP).
- Current account and external accounts:
  - Current account deficit in 2009: US$832.1 million, equal to 13.4 percent of GDP (24. 6 percent in 2008).
  - International reserves accumulation in 2009: 268.0 million.
  - External debt:
    - External debt balance increased from 56.2 percent of GDP in 2008 to 59.5 percent in 2009.
    - Debt relief in 2009 under MDRI and HIPC: relief on current service of foreign debt of US$15.7 million; forgiveness of debt arrears of US$163.2 million.
- 2010 external context and effects:
  - Current account deficit rose to 14.8 percent of GDP in 2010 (13.4 percent of GDP in 2009).
  - Terms of trade index for 2010 showed an increase of 8 percent based on a larger increase in the average price of exports (15.1 percent) than imports (6.6 percent).
  - Effect of higher import prices in 2010: additional expense of US$484.7 million compared to 2009, which exceeded the price gain on exports of US$231.6 million.
  - Value of exports in 2010: US$1.8511 billion, recording growth of 32.8 percent compared to 2009.

### Policy measures, institutions, and strategic objectives
- Trade policy objectives in the National Human Development Plan (NHDP):
  - Regulate Nicaragua’s trade relations guided by fair and competitive trade; recognize asymmetries among countries’ economies and correct distortions in world markets.
  - Diversify and consolidate foreign trade by expanding and diversifying the export base and seeking new markets.
  - Long-term policies to reduce balance of payments vulnerability:
    - (i) promoting a change in the structure of export production;
    - (ii) developing infrastructure to increase international trade potential;
    - (iii) diversifying markets;
    - (iv) developing tourism;
    - (v) a prudent foreign indebtedness policy;
    - (vi) creating conditions for increased flow of Foreign Direct Investments.
- Administrative and facilitation measures:
  - Streamlining foreign trade transactions by eliminating unnecessary red tape, developing one-stop service windows, establishing the Central American customs union, and improving customs offices.
  - Utilization of DR-CAFTA preferences by some national productive sectors, including free-trade zones; smaller SMEs continue to face barriers to accessing the U.S. market.
- International commodity agreements and sectoral access:
  - In 2009 Nicaragua signed the new International Coffee Agreement (2007 Agreement) and joined the 1992 International Sugar Agreement and the 2001 International Cocoa Agreement.
  - Agreement on Banana Trade signed between Latin American banana producers and the European Union within the WTO framework to reduce import tariffs and improve access to the European market for Nicaraguan bananas.

*Government of Reconciliation and National Unity — Technical Progress Report on National Human Development Plan as of 2010 (September 12, 2011).*

### 2009. Thus, exports responded positively to increased world demand for primary goods and to the

### _cr11323 - 2009. Thus, exports responded positively to increased world demand for primary goods and to the

### External accounts and exports
- Exports in 2010:
  - Continued to be diversified in terms of product and moderately diversified in terms of markets.
  - Showed greater participation from Latin American and Asian countries.
- Capital and financial account movements:
  - US$107.9 million more in capital entered the economy than in 2009, favoring an increase in the BCN’s international reserves.
  - The non-financial private sector’s external debt balance was US$275.2 million higher than in 2009, with most increase from suppliers and the commercial banking system.

### External financing for the public sector (2007-2011)
- Government objective since 2007:
  - Align external cooperation to guarantee effectiveness of resources in the country’s transformation; nationally led, priority-driven cooperation to increase ODA effectiveness.
- Average annual external cooperation disbursed to Nicaragua (2007-2010):
  - U$584.1 million, 3.2 percent more than the 2002-2006 average of U$566.2 million.

- Table 15 (EXTERNAL RESOURCES DISBURSED, 2007-10) totals (in millions of US$):
  - 2007: Grants 354.7 Loans 254.4 Total 609.1
  - 2008: Grants 346.2 Loans 233.6 Total 579.8
  - 2009: Grants 319.7 Loans 330.4 Total 650.1
  - 2010: Grants 213.9 Loans 283.6 Total 497.5
  - Total 2007-2010: Grants 1,234.5 Loans 1,102.0 Total 2,336.5
  - Source: BCN-MHCP

### Disbursements by sector and subsector (2007–June 2011)
- As of June 2011 disbursements concentrated in:
  - Infrastructure: 32 percent
  - Production: 15 percent
  - Together: 47 percent of investment
  - Social sector (Health, Education, Social Programs): 30 percent of total resources disbursed
- Table 16 (selected entries, Millions of Dollars; Updated: July 2011; Source: MCHP-BCN):
  - Productive total (2007-10): 100.3 92.6 84.7 64.3 (2011: 21.9) TOTAL 363.8
  - Agriculture (2007-10): 54.3 48.1 24.1 13.3 (2011: 4.5) TOTAL 44.2
  - Energy (2007-10): 47.5 37.1 22.5 51.3 TOTAL 176.2
  - Transportation and Communications (2007-10): 59.1 70.8 77.8 81.7 (2011: 24.9) TOTAL 314.3
  - Water and sanitation (2007-10): 49.5 39.9 105.4 33 (2011: 5.8) TOTAL 233.6
  - Social (2007-10): 205.6 197.3 177.6 137 (2011: 22.3) TOTAL 739.8
  - Education (2007-10): 50.8 48.6 63.7 45.8 (2011: 6.2) TOTAL 214.5
  - Health (2007-10): 54.7 74.3 45.4 49.5 (2011: 6.4) TOTAL 238.9
  - Financial (2007-10): 79.8 77 118.3 63.1 (2011: 9.2) TOTAL 347.4
  - General total (2007-10): 609.2 579.7 650.2 497.5 (2011: 118.3) TOTAL 2,454.90
  - Notes: 1/ Includes programs managed by the PNDR/IDR. 2/ Includes institutional strengthening and modernization of the State. 3/ Information as of June.

### Disbursements by NHDP program (Table 17, Millions of dollars)
- Total external resources (selected years):
  - 2008: 567.9
  - 2009: 630.1
  - 2010: 472
  - 2011: 414.8
- Composition highlights:
  - Loans: 2008: 219.5  2009: 330.1  2010: 285.2  2011: 240.7
  - Grants: 2008: 348.4  2009: 300.0  2010: 186.8  2011: 174.1
- Resources directed to projects (PIP):
  - 2008: 508.3  2009: 496.7  2010: 387.7  2011: 353.8
  - Loans for projects: 190.6 213.3 223.1 179.7
  - Grants for projects: 317.7 283.4 164.6 174.1
- Disbursements from the IMF:
  - 2008: 28.9  2009: 38.0  2010: 19.6  2011: 16.0
- Source: BCN, MHCP

### Production and trade strategy — Agricultural and forestry strategy
- Rural production sector:
  - Represents 28 percent of the national economy.
  - Agricultural, fishing, and forestry sectors account for 71 percent of the country’s exports.
- Government rural production and development policy (since January 2007) objectives:
  - Increase quantity and quality of food.
  - Support producers to improve added value and market links to access better prices and reduce poverty.
  - Expand support in technical assistance, training, technological innovation, and accessible loans to small and medium producers, indigenous and afro-descendant communities.
- Institutional and program instruments:
  - PRORURAL INCLUSIVE (national policy on agriculture, forestry, and rural sector).
  - MAGFOR, INTA, INAFOR, IDR, Banco Produzcamos (began to operate in March 2011), and international cooperation.
  - Principal actions: agricultural and forest policy formulation/implementation; access to inputs and equipment; technical assistance; partnerships; capitalization; certification; sustainable forest management; processing and market access.

### Capitalization of small producers and targeted programs
- Small producers:
  - Represent 22 percent of poor rural households (Third National Agricultural Census, CENAGRO).
- Food Production Program (PPA / Zero Hunger) (2007-2010):
  - Capitalized 59,755 poor rural women and their families for a total amount of C$1.5647 billion.
  - Between 2007 and 2010: 59,775 women organized into 1,256 groups; 182 groups achieved cooperative level.
  - Goal for 2007-2011: capitalize 84,000 families.
  - Beneficiaries’ savings up to December 2010: C$51.9 million in bank branches under group joint signatures.
- Solidarity Promotion Program:
  - Initiated with 1,656 beneficiaries to strengthen technical, organizational, administrative, and financial skills.

### Credit for small producers
- Sources of financing for productive sector:
  - General Budget of the Republic, Banco Produzcamos, ALBA CARUNA.
- Banco Produzcamos:
  - Creation approved February 18, 2010; began operation in March 2010; government institution for credit to small and medium producers.
- Zero Usury microcredit program (May-Nov. 2009):
  - Provided loans to 90,209 women partners, granting 155,786 loans amounting to C$827.1 million.
- FCR and FNI:
  - Provided credit to 86,143 small producers (12 times more than in 2006), delivering C$1.0578 million (1.6 times more than in 2006).
- ALBA CARUNA:
  - Financing to 47,530 small and medium producers amounting to C$1.3653 billion.
  - Between 2008 and 2011 provided US$3,141,524 to other MSMEs.
- Microfinance institutions:
  - Disbursed C$7.726 billion to 330,596 agricultural producers.
- Legal and supervisory measures:
  - Law No. 716 ("Special Law Establishing the Basic Conditions and Guarantees for Negotiating Debts between Microfinance Institutions and Delinquent Borrowers") approved February 23, 2010.
  - SIBOIF supervision of microfinance institutions.

### Provision of services: seeds, training, technical assistance, partnerships
- Pre-2007 baseline:
  - Use of certified seed: 11 percent
  - Use of fertilizers: 37 percent
  - Use of pesticides: 67 percent
- National Seed Plan (2007-2010 deliveries):
  - 131,236 quintals of seed and 87,602 quintals of urea or NPK through the Support Program for Producers of Basic Grains (KRII).
  - Benefited 208,462 small producers.
- National Seed Program principles and delivery rules (selected):
  - Inputs with microcredit for legally established organizations.
  - Inputs for two manzanas per producer for corn and white sorghum; one manzana for beans and upland rice.
  - For one manzana:
    - Beans: 80 pounds of certified seed and one quintal of NPK
    - Corn: 34 pounds of certified seed
    - Upland rice: one quintal of certified seed and one quintal of urea
    - White sorghum: 20 pounds of certified seed
  - Purchases limited to national varieties of certified seed from producers/organizations registered with DGPSA and geographically closest.
- Outcomes:
  - Producers participating in seed and urea programs show yields higher than the national average.
  - CRISSOL Plan created to address demand for seed adapted to agro-ecological conditions; implemented in 2011-2012 season.
- Technical assistance:
  - Provided to 55,000 producers (annual average) by various methods (INTA direct assistance, collaborative and subsidized assistance).
  - 46 new agricultural technologies created and incorporated.
  - 7,166 producers trained on traceability.
- Cooperatives:
  - 9,136 cooperatives formally established and registered with INFOCOOP.

### Agro-industrialization and value added
- PRORURAL INCLUYENTE (began 2009) incorporates PNAIR (updated 2011).
- Model objectives (selected):
  - Improve value-adding practices, technical education, fair trade relations, business management, territorial approach, public technical assistance, organizational structures, access to business services, environmental protection, gender and generational equity.
- Selected production chains: beans and corn; milk and meat; beekeeping; coffee and cocoa; yucca, quequisque and malanga.
- IDR execution (2007-2010):
  - 206 agro-industrial projects with value chain and territorial approach.
  - Benefited more than 13,000 medium and small producers.
  - Investment: US$70.5 million.
  - Generated approximately 9,974 direct jobs.
- Agroindustry project breakdown:
  - 82 integrated agroindustry projects (investment US$32.72 million): 11 processing plants, 57 harvest centers, 399 wet mills.
  - Livestock sector: 52 projects (investment US$17.83 million): seven milk processing plants, 29 milk collection centers, one goat fattening center, 18 pig fattening centers.
  - Beekeeping: 72 projects (investment US$24.6 million): one honey processing plant, 17 honey gathering centers, one fortified salt processing plant, 18 processing centers for MSMEs, four artisanal processing centers, 24 gathering centers for fattening fowl, one fruit processing plant, six artisanal bread production centers.

### National Food Safety System and traceability
- Objectives:
  - Transform traditional food control into an integrated, intersectoral health control system to support food safety, sovereignty, and export competitiveness.
- Traceability progress (2007-2010):
  - Beef traceability started in 16 municipalities.
  - 9,085 ranches registered and 111,000 beef cattle registered in the traceability system.
  - Plan: register and georeference ranches, register producers, and identify beef cattle; entry is voluntary.
  - Current coverage: 8 percent (estimated 120,000 cattle ranches and cattle population of 4.7 million head).
- Additional achievements (2007-2010):
  - Nicaragua certified by SENASA-Honduras to export poultry products to Honduras.
  - Animal Health Sanitary Requirements revised for 350 products; presented for harmonization at Customs Union meetings.
  - Constant surveillance of quarantined and emerging pests.
  - Strengthened dissemination and compliance with national quality and safety standards and sanitary and phytosanitary measures.
  - Mastitis prevention/control inspections on 7,300 dairy cattle in the production bond program.
  - Nicaragua joined the Rotterdam Agreement through Decree No. 5430 of the National Assembly.
  - Ministerial agreement No. 026-2009 declaring the non-vaccine phase to eradicate classic swine fever published.
  - Under the National Agricultural Food Traceability Program: Ministerial Resolution No. 003-2009 of 11/26/2009 published; Bovine Traceability Subsystem: Ministerial Resolution No. 001-2009 of 11/26/2009 published.
  - Plan developed regarding pesticide residues and veterinary drugs for bovine cattle.
  - Footnote: Bovine cattle population in 2007.

### Access to markets and ENABAS
- ENABAS (reactivated starting 2007):
  - Purchases basic foodstuffs from farmers at fair prices to encourage private agents to follow suit and to guarantee reserves for consumers when prices rise.
  - Current operations:
    - ENABAS gathers 1,770,444 quintals of agricultural products (947,307 quintals of basic grains and 823,137 quintals of agroindustrial products).
    - Sells through 3,817 points of sale, prioritizing protection of population with limited resources and impacting poverty reduction.

### Change in agricultural production (selected comparison)
- Programs implemented contributed to increased production during the 2009-2010 season compared to the 2006-2007 season:
  - Rice: 4.68 percent
  - Beans: (text ends at "beans" in supplied excerpt)

*Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11323.pdf*

### 14.94 percent, corn 4.15 percent. This is due in part to increased yields: rice 24.63 percent, beans

### _cr11323 - 14.94 percent, corn 4.15 percent. This is due in part to increased yields: rice 24.63 percent, beans

### Agricultural production trends and drivers
- Growth in agricultural production driven by increased yields for specific crops (examples cited in title: rice 24.63 percent, beans 11.24 percent).
- Growth in agricultural production and the yields of beans and corn fell during the period 2009-2010 compared to 2008-2009 due to the effects of La Niña phenomenon that significantly affected beans and corn.
- Estimated percentage use of certified seed in areas sown with basic grains:
  - beans 15 percent
  - corn 20 percent
  - rice 60 percent
  - sorghum 60 percent
- The relatively low use of certified seed is noted as a factor that places a limit on greater increases in production.

### Key crop statistics (selected entries from Table 19: National Production Plan — Food Production – Basic Grains)
- Total rice (Unit measures: Thous.manzanas, Thous.quintals, Quintals/manzana)
  - 06/07*: Area sown 127.2; Area reaped 125.9; Production 4,569.8; Yield 36.3
  - 2007-08: Area sown 112.3; Area reaped 98.0; Production 3,859.1; Yield 39.4
  - 2008-09: Area sown 116.1; Area reaped 109.9; Production 4,076.4; Yield 37.1
  - 2009-10: Area sown 110.9; Area reaped 105.8; Production 4,783.6; Yield 45.2
  - 2010-11: Area sown 127.6; Area reaped 123.0; Production 5,363.2; Yield 43.6
  - 2011 Projection: Area sown 127.7; Area reaped 127.7; Production 5,700.0; Yield 44.6

- Upland rice
  - 06/07*: Area sown 73.1; Area reaped 71.8; Production 1,995.9; Yield 27.8
  - 2007-08: Area sown 60.3; Area reaped 46.0; Production 1,311.1; Yield 28.5
  - 2008-09: Area sown 55.6; Area reaped 49.7; Production 1,581.2; Yield 31.8
  - 2009-10: Area sown 50.8; Area reaped 45.8; Production 1,483.6; Yield 32.4
  - 2010-11: Area sown 62.9; Area reaped 58.3; Production 1,962.9; Yield 33.6
  - 2011 Projection: Area sown 63.0; Area reaped 63.0; Production 2,142.0; Yield 34.0

- Irrigated rice
  - 06/07*: Area sown 54.1; Area reaped 54.1; Production 2,574.0; Yield 47.6
  - 2007-08: Area sown 52.0; Area reaped 52.0; Production 2,548.0; Yield 49.0
  - 2008-09: Area sown 60.6; Area reaped 60.2; Production 2,495.2; Yield 50.0
  - 2009-10: Area sown 60.0; Area reaped 60.0; Production 3,300.0; Yield 55.0
  - 2010-11: Area sown 64.7; Area reaped 64.7; Production 3,400.2; Yield 55.0
  - 2011 Projection: Area sown 64.7; Area reaped 64.7; Production 3,558.0; Yield 55.0

- Total beans
  - 06/07*: Area sown 362.9; Area reaped 345.0; Production 4,012.9; Yield 11.6
  - 2007-08: Area sown 380.8; Area reaped 336.2; Production 3,788.1; Yield 11.3
  - 2008-09: Area sown 401.0; Area reaped 343.0; Production 3,886.4; Yield 11.3
  - 2009-10: Area sown 397.3; Area reaped 356.5; Production 4,612.6; Yield 12.9
  - 2010-11: Area sown 416.6; Area reaped 330.1; Production 3,286.2; Yield 10.0
  - 2011 Projection: Area sown 394.0; Area reaped 394.0; Production 5,397.8; Yield 13.7

- Red beans
  - 06/07*: Area sown 354.2; Area reaped 336.4; Production 3,983.5; Yield 11.8
  - 2007-08: Area sown 376.7; Area reaped 332.1; Production 3,749.9; Yield 11.3
  - 2008-09: Area sown 396.8; Area reaped 340.1; Production 3,854.6; Yield 11.3
  - 2009-10: Area sown 381.1; Area reaped 320.9; Production 4,053.7; Yield 12.6
  - 2010-11: Area sown 395.2; Area reaped 311.9; Production 3,064.6; Yield 9.8
  - 2011 Projection: Area sown 356.0; Area reaped 356.0; Production 4,744.1; Yield 13.3

- Black beans
  - 06/07*: Area sown 8.7; Area reaped 8.6; Production 29.4; Yield 3.4
  - 2007-08: Area sown 4.1; Area reaped 4.1; Production 38.3; Yield 9.4
  - 2008-09: Area sown 4.2; Area reaped 2.9; Production 31.8; Yield 10.9
  - 2009-10: Area sown 16.2; Area reaped 35.7; Production 558.9; Yield 15.6
  - 2010-11: Area sown 21.4; Area reaped 18.2; Production 221.6; Yield 12.2
  - 2011 Projection: Area sown 38.0; Area reaped 38.0; Production 653.8; Yield 17.2

- White corn
  - 06/07*: Area sown 520.7; Area reaped 492.2; Production 11,041.6; Yield 22.4
  - 2007-08: Area sown 542.7; Area reaped 506.7; Production 10,706.8; Yield 21.1
  - 2008-09: Area sown 516.2; Area reaped 456.7; Production 9,325.4; Yield 20.4
  - 2009-10: Area sown 535.0; Area reaped 479.8; Production 11,499.5; Yield 24.0
  - 2010-11: Area sown 542.8; Area reaped 518.3; Production 10,214.4; Yield 19.7
  - 2011 Projection: Area sown 547.0; Area reaped 547.0; Production 13,128.0; Yield 24.0

- Total sorghum (selected rows)
  - 06/07*: Area sown 110.4; Area reaped 93.9; Production 2,779.9; Yield 29.6
  - 2007-08: Area sown 126.6; Area reaped 117.1; Production 4,023.3; Yield 34.4
  - 2008-09: Area sown 105.1; Area reaped 96.6; Production 2,739.7; Yield 28.4
  - 2009-10: Area sown 96.6; Area reaped 71.1; Production 2,177.4; Yield 30.6
  - 2010-11: Area sown 86.0; Area reaped 81.7; Production 2,386.7; Yield 29.2
  - 2011 Projection: Area sown 130.0; Area reaped 130.0; Production 4,750.0; Yield 36.5

- Industr. sorghum (selected)
  - 06/07*: Area sown 42.4; Area reaped 37.6; Production 1,170.4; Yield 31.2
  - 2007-08: Area sown 43.6; Area reaped 41.7; Production 1,655.5; Yield 39.7
  - 2011 Projection: Area sown 50.0; Area reaped 50.0; Production 2,000.0; Yield 40.0

- Red sorghum (selected)
  - 06/07*: Area sown 17.3; Area reaped 16.6; Production 645.2; Yield 38.9
  - 2011 Projection: Area sown 35.0; Area reaped 35.0; Production 1,625.0; Yield 46.4

- White sorghum (selected)
  - 06/07*: Area sown 25.1; Area reaped 21.0; Production 525.2; Yield 25.0
  - 2011 Projection: Area sown 15.0; Area reaped 15.0; Production 375.0; Yield 25.0

- Improved sorghum (selected)
  - 06/07*: Area sown 25.6; Area reaped 18.8; Production 439.0; Yield 23.3
  - 2011 Projection: Area sown 30.0; Area reaped 30.0; Production 750.0; Yield 25.0

- Other crops (area measures)
  - Area reaped Thous.manzanas 238.4 (repeated entries) 240.4
  - Area sown Thous.manzanas 1,317.3 1,354.1 1,338.4 1,344.2 1,383.1 1,198.7
  - Area reaped Thous.manzanas 1,237.0 1,254.6 1,209.8 1,226.8 1,264.7 1,198.7

- Notes associated with table:
  - 1/ Area:  Thousands of manzanas
  - Production:  Thousands of quintals/short ton sugar cane
  - *: Preliminary data
  - **: 2010-2011 Projections, February 2011 (reconciled data)
  - ***: 2011/2012 National Plan Projections

### Livestock production
- Livestock production has seen sustained growth in recent years, led by beef cattle thanks to fair trade with ALBA countries and domestic trade in chicken and eggs.
- Milk production increased by 13.4 percent compared to 2006 and 6.9 percent compared to 2009.
- Production of beef increased by 43 percent compared to 2006 and 9.6 percent compared to 2009.
- Pork production increased by 6.7 percent compared to referenced years (context in source truncated).

*Government of Reconciliation and National Unity — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (September 12, 2011).*

### 22.43 percent compared to 2006 and 2009, respectively. There was also an increase in the

### _cr11323 - 22.43 percent compared to 2006 and 2009, respectively. There was also an increase in the

### Production of milk, meat, and eggs
- Milk production (Millions of gallons): 2006: 170; 2007: 176.9; 2008: 183.9; 2009: 191.3; 2010: 192.7; 2011*: 205.9.
- Beef production (Millions of pounds): 2006: 186.2; 2007: 204.1; 2008: 211.3; 2009: 236.7; 2010: 266.3; 2011*: 291.8.
- Pork production (Millions of pounds): 2006: 15; 2007: 15.1; 2008: 15.6; 2009: 15.8; 2010: 16; 2011*: 19.59.
- Poultry production (Millions of pounds): 2006: 183.96; 2007: 197.62; 2008: 200.09; 2009: 197.18; 2010: 224.98; 2011*: 228.9.
- Egg production (Millions of dozens): 2006: 29.99; 2007: 30.53; 2008: 30.69; 2009: 32.99; 2010: 34.77; 2011*: 35.6.
- Reported changes: egg production increased by 15.9 percent and 2.4 percent compared to 2006 and 2009, respectively.

Source: MAGFOR

### Fishing and aquaculture policy and outcomes
- Institutional actions:
  - Creation of the Nicaraguan Fishing and Aquaculture Institute (INPESCA) in 2007 with mandates including support for small-scale fishermen, cooperatives, access to credit, training, research, rehabilitation of harvesting centers, and delivery of fishing inputs and gear.
  - Increase in number of inspectors and consolidation of institutional agreements (National Police and Navy) resulting in inspections that are 2.18 times more numerous and a reduction of violations.
  - Simplified procedure for return of the Selective Gas Consumption Tax reducing production costs for 14,000 small-scale fishermen/women.
  - Delegation agreements with 18 municipal governments for decentralization of small-scale fishing.
- Cooperatives and financing:
  - 84 cooperatives organized, trained, and legalized; total cooperative members: 2,855 (958 women = 34 percent; 1,897 men = 66 percent).
  - C$10 million provided for small-scale fishing, benefiting 1,500 fishermen and fisherwomen through cooperative organizations.
- Market access and promotion:
  - 22 points of sale established for fish and aquaculture products.
  - 58 fairs held to promote consumption of fish products.
- Production and export results:
  - Fishing and aquaculture production: 2006: 43.9 million pounds; 2010: 70.8 million pounds — increase of 61.3 percent.
  - Exports: 2006: 32.7 million pounds valued at US$111.7 million; 2010: 57.2 million pounds valued at US$165.2 million.
  - Principal exports: shrimp, lobster, and fish.

### Industrial policy and manufacturing
- Institutional developments:
  - Creation of the General Directorate of Industry and Technology (DGIT) in February 2008.
  - PROMIPYME (Program to Support Micro, Small, and Medium Enterprise) developed to increase MSME competitiveness.
  - MSME sector: accounts for more than 90 percent of Nicaragua’s corporate base, generates 70 percent of employment, and 40 percent of GDP.
  - INPYME assigned strategic guidelines with four pillars: visibility, training/technical assistance, market access, linkage to tourism.
  - CAMIPYME served more than 40,000 MSMEs over three years.
- Manufacturing added value:
  - Added value of the manufacturing industry grew by 7 percent (reported as "grew by 7 percent, well above the projected growth rate").
  - Table 21: Growth of Industrial Added Value (%) — institutional goals and actual behavior referenced; DGIT estimate based on BCN trend indicator projections.
- Sectoral performance:
  - Food product and textile and clothing industries showed most vitality.
  - Meat and fish in food industry grew by 7.8 percent.
  - Sugar production grew by 7.8 percent.
  - Textiles and clothing production increased by 18 percent.
  - Beverages fell by 3.1 percent.
  - Timber and non-metals continued to decline but at reduced pace due to construction activity.

### Energy policy, capacity, and projects
- Context and investment:
  - In 2007, 73 percent of electrical generation depended on petroleum derivatives.
  - Public and private investment in the energy sector: US$1.44 billion.
  - Total final consumption of energy increased by 18 percent from 2,133.21 GWH in 2005 to 2,520.21 GWH in 2009.
  - National electricity coverage in 2010: 66.7 percent.
- Installed capacity and generation:
  - As of December 31, 2010 nominal generating capacity increased by 350 MW; 290 MW correspond to plants managed by ALBANISA; 60 MW correspond to Amayo 1 and 2 Wind Plants.
  - For the first time nominal installed capacity > 1,000 MW compared to 760 MW at end-2006.
  - Effective capacity: 827.3 MW.
- Transmission and rural electrification:
  - 158.1 new Kms of transmission lines installed (2007-2010), benefiting 326,623 people.
  - 236.3 MVA of additional power installed, benefiting 561,796 people.
  - 2009-2010 rural electrification: 93,015 households connected in isolated areas.
  - Rural electrification delivered electricity to 44,914 families representing 268,473 people in 908 communities; construction of 2,052 kilometers of electrical network and installation of 5,690 individual solar panels (2,500 in 2007; 2,841 in 2008; 65 in 2009; 284 in 2010).
  - Small/micro power stations increased generating capacity by 2,577 KW in rural areas, benefiting more than 4,182 households.
  - 573 households benefited from 15 demonstration microturbines with installed capacity of 324KW.
- Planned projects and investments (Table 22: Energy projects, 2012-2016)
  - Total additional generation: 610.3 MW.
  - Total investment: 2,449,700,000.00 (US$).
  - Project highlights (Generation MW — Investment in US$ — Level of progress / schedule):
    - "San Jacinto Tizate" Geothermal Project, Phase II — 36 — 180,000,000.00 — 60% progress.
    - "Blue Power" Wind Project — 39.6 — 115,300,000.00 — Operations start in 2012.
    - "Eolo" Wind Project — 37.5 — 103,900,000.00 — Construction starts in 2011; operations start in 2012.
    - "Hidropastasma" Hydroelectric Project — 12 — 45,000,000.00 — Operations start in 2012.
    - "Larreynaga" Hydroelectric Project — 17.2 — 63,000,000.00 — Construction starts in 2011; operations start in 2013.
    - "Alba Viento" Wind Project — 40 — 110,000,000.00 — Construction starts in 2011; operations start in 2015.
    - "Casita-San Cristobal" Geothermal Project — 35 — 140,000,000.00 — Process for starting construction.
    - "El Hoyo-Monte galán" Geothermal Project — 35 — 140,000,000.00 — Process for starting construction.
    - "Tumarín" Hydroelectric Project — 253 — 1,150,000,000.00 — Construction starts in 2011; operations start in 2015.
    - "Managua-Chiltepe" Geothermal Project — 35 — 140,000,000.00 — Construction permit; renegotiation with ALBANISA.
    - "Boboke" Hydroelectric Project — 70 — 262,500,000.00 — Permits being processed.
  - MEM listed as source.
- National Sustainable Electrification and Renewable Energy Program (PNESER)
  - Approved in 2010 with financing from the IDB.
  - Objective: increase electrical service coverage from 66.7 percent (preliminary 2010) to 86.6 percent (preliminary 2015).
  - Eurosolar Program implemented in 42 communities (Siuna, Rosita, Bonanza, Prinzapolka, Waspán, Puerto Cabezas); equipment installed in 26 communities (13 Triangulo Minero and 13 in Waspám) and continued in 2011.
  - Project to Standardize Electrical Service in Settlements introduced internal installations in 760 dwellings in Mariana Sansón and Lino Argüello (León) and continues to benefit 3,000 dwellings in Granada.
  - Plan for renewable generation projects to transform Nicaragua’s energy matrix to as much as 94% renewable by 2016.
- Energy efficiency measures:
  - Entry into effect of five Nicaraguan Mandatory Technical Standards (NTON) of Energy Efficiency (of seven approved).
  - Project to Install Solar Collection Systems for Thermal Energy at Lenin Fonseca Hospital.
  - Proposed National Strategy on Firewood and Charcoal developed; presidential approval needed.

### Tourism development
- Tourist arrivals and composition:
  - One million tourists in 2010.
  - Cumulative growth of 34.9 percent during 2007 to 2010; total of 3,601,052 tourists for that period.
  - Market shares: Central America 63 percent; North America 25 percent; Europe 7 percent; South America 2 percent; other regions 1 percent.
- Monetary revenues:
  - Monetary revenues generated by tourism from 2007 to 2010: US$1.990 billion.
  - Dollar amount fell in 2010 due to decline in average spending by foreign visitors.
  - Q1 2011: daily average spending per tourist increased to U$40.17; average stay: 8.5 days.
- Cruise ships:
  - 205 cruise ships arrived during 2007–2010, annual average 51 cruise ships.
  - 2006: 39 cruise ships with a total of 272,463 passengers.
- Regional fairs and MSME support:
  - Seven regional fairs institutionalized starting in 2010; >150 entrepreneurs per fair; total 1,050 entrepreneurs.
  - Investment in tourism center/spa infrastructure (2007–2010): C$47.6 million.
  - Visitors to tourism centers (2007–2010): 3,451,098 visitors — cumulative growth of 37 percent compared to previous period.
- Tourism investment and supply:
  - 117 projects approved (2007–2010) with an investment of US$297.6 million under Law No. 306; expected generation of 3,694 new permanent jobs when operational.
  - As of 2010 supply of establishments: 611 (increase of 51 percent compared to 2006).
  - Supply of rooms in 2010: 8,880 (growth of 13.6 percent).
- MSME and capacity building:
  - As of December 2010, 5,089 tourism MSMEs evaluated and registered — 235 percent more than the 2,164 in 2006.
  - 8,631 tourism entrepreneurs received technical assistance (since 2008); loans totaling US$8.7 million benefited 740 entrepreneurs.
  - Training benefited 18,767 people (12,566 women; 6,202 men).
  - Training provided to 4,493 police officers as tourism police; 1,636 young people trained and certified as tour guides.

### Telecommunications and postal services
- Investment and infrastructure:
  - Telecommunications operators invested US$79 million in 2006; average annual investment since 2006 nearly US$140 million.
  - Telephone numbering expanded from seven to eight digits.
- Cellular and fixed telephony:
  - Cell phone users: end-2006: 1,600,000; end-2010: 4,200,000 — increase of more than 200 percent between 2007 and 2010.
  - Municipal capitals with cellular coverage: 151 (98.7 percent of total). At start of administration in 2007: 110 municipal capitals; increase of 27 percent (added 41 capitals).
  - Fixed telephone users remained practically unchanged.
- Public access and education connectivity:
  - Public telecenters with Internet access installed in 101 municipal capitals and important communities; total public Internet access centers: 150 municipal capitals (98 percent of total); beneficiaries: 505,897 Nicaraguans.
  - Installation of 100 technology centers in public schools (15 computers each): 1,500 computers connected to Nicaragua’s Educational Intranet; beneficiary schools have free Internet connections; benefit approximately 89,374 primary students and training for at least 1,986 teachers.
  - Connecting 105 academic centers to the Internet represented a 41 percent increase in public schools connected vs. previous governments (previous: 152 public schools in 16 years).
- Health communications:
  - "Connecting to MINSA" project restructured telephone network and implemented Central MINSA data network and SILAIS; benefited 44 health management units and CNS in 34 municipalities; project expanding to Jinotega, Matagalpa, and RAAN.
- Public telephones and rural coverage:
  - Communities with >400 inhabitants having public telephones: end-2006: 536; end-2010: 1,336 — 800 new telephones benefiting approximately 434,254 inhabitants in rural communities.
  - Extension of cellular telephony: 30 rural municipal capitals covered through 30 Base Transceiver Stations (BTS) benefiting 313,664 inhabitants.
- Planned regional program and e-government:
  - Program design for Caribbean Coast and San Juan River development including telephone services, Internet, telecenters, municipal e-government modernization, and IT training; expected execution 2013-2016 with investment that may exceed US$10 million.
  - Pilot e-government project by 2012 to allow 50 municipal governments to provide services online and use IT tools (including Bovine Traceability Program).
- Postal services:
  - Postal Service offices in 137 municipalities.
  - Postal points of coverage allow sending/receiving to 68 percent of population and delivery to 26.3 percent.
  - Ten new post offices opened (2007-2010) benefiting approximately 250,563 citizens.
  - Postal rates concessionary: between 40 percent and 45 percent below the national market average.
  - Easy Export service: 160 small businesses registered and have used service.
  - Postal Service guaranteed transfer of family remittances from the United States benefiting more than 5,838 families.
  - Plans for 2012-2013: expand coverage to all municipalities in terms of delivery through post offices and develop postal code as component of integrated urban zoning.

### Domestic trade policy
- Strategic focus:
  - Implement strategic basic grain reserves and more direct distribution channels to consumers to stabilize supply.
  - Prioritize rural infrastructure investment to reduce transport and production costs and losses.
  - Promote programs for quality, animal and human health, production safety and security, and modernize legal framework regulating domestic commerce.
- Trade measures:
  - Accession to the protocol amending TRIPS to permit measures supporting public health, including mandatory licenses when manufacturing capacities insufficient or in extreme urgency.
  - Reduced tariffs on inputs, raw materials, capital goods, and basic consumer products to reduce production costs.
  - Continued special import safeguards on fifteen food and personal hygiene products via ministerial agreements.
  - Policy of reducing tariffs on yellow corn, wheat, crude oil, inputs, raw materials, and capital goods for agriculture and MSMEs.
- Price stabilization and standards:
  - Consumer price stability achieved for many basic food basket products via consensus among producers/importers/exporters/vendors; stabilization observed for rice, sugar, oil, milk, bread, and meat but not for fish.
  - Implementation progress on International System of Units (SI) in multiple sectors (hydrocarbons, rice, beans, dairy, meat, supermarkets, sugar, hygiene products, medications).
  - Establishment of a market observatory and weekly bulletin on price behavior for 23 products in the basic food basket; 168 bulletins published.

### Foreign Direct Investment (FDI) stimulus policy and results
- Past performance and sectors:
  - FDI 2002-2006: CAGR 2.4 percent; increased from US$256.7 million in 2002 to US$282.3 million in 2006 (10 percent growth comparing 2006 vs 2002).
  - Main sectors 2002-2006: telecommunications, free-trade zone, and energy accounted for ~70 percent of the US$1.23 billion recorded in that period.
  - Highest CAGRs: trade and services 122.7 percent; tourism 92.8 percent; free-trade zones 25.4 percent.
  - Declining sectors: energy (CAGR -39.1 percent) and telecommunications (CAGR -3.2 percent).
- FDI 2007-2010 performance:
  - Total FDI attracted 2007-2010: US$1.949942848 billion (table totals: 381,683,900 + 626,102,946 + 434,205,113 + 507,950,888 = 1,949,942,848).
  - Total FDI attracted 2002-2006: US$720 million (reported for comparison).
  - Reported CAGR for 2007-2010: 10 percent.
  - Increase of 25 percent in foreign investment attracted compared with previous government; total of 375 foreign companies from various countries.
  - Sectors leading FDI in 2010: energy, telecommunications, and free-trade zones — average of 80 percent of total investments attracted during 2007-2010. Forestry, mines, and tourism together ~14 percent.
- FDI by sector (US$) — annual columns 2007 2008 2009 2010 — Totals:
  - Energy: 73,112,435; 214,630,165; 222,412,412; 158,882,442 — Total 669,037,454.
  - Telecommunications: 145,133,575; 196,679,580; 61,646,228; 118,715,342 — Total 522,174,725.
  - Free-trade zones: 120,410,000; 88,927,928; 60,843,062; 96,638,540 — Total 366,819,530.
  - Tourism: 21,723,943; 4,990,604; 29,317,476; 51,237,577 — Total 107,269,601.
  - Forestry: 0; 6,731,973; 30,746,000; 36,532,800 — Total 74,010,773.
  - Mines: 11,340,947; 39,119,345; 11,915,377; 25,274,301 — Total 87,649,970.
  - Trade and Services: 9,813,000; 41,075,646; 2,709,579; 7,561,998 — Total 61,160,223.
  - Others: 150,000; 33,947,706; 14,614,979; 13,107,889 — Total 61,820,573.
  - Grand total (2007-2010): 381,683,900; 626,102,946; 434,205,113; 507,950,888 — Total 1,949,942,848.
  - Source: MIFIC and PRONICARAGUA.
- Geographic diversification and origin:
  - Number of source countries for FDI increased from 22 in 2007 to 38 in 2010.
  - Principal investor countries: Mexico, the United States, Venezuela, Canada, and Spain — together nearly 80 percent of total FDI during the period.
  - FDI from these countries grew at a CAGR of 47 percent during the period, increasing from US$335.7 million in 2007 to US$1.56 billion in 2010.
- Promotion and legal reforms:
  - PRONICARAGUA conducted promotional activities: >30 business missions (2007-2010), participation in >30 international fairs, and nine local investment forums.
  - Legal/administrative measures:
    - Law No. 691 (Law Simplifying Procedures and Service in Government Administration) — approved June 16, 2009; published August 3, 2009.
    - Presidential Agreement No. 12-2007 establishing the Special Commission for Promotion of Private Investments (PRO Nicaragua).
    - Creation of One-Stop Free-Trade Zone Service Window in May 2009 by CNZF.
    - Tripartite Agreement on minimum wage in Free Trade Zones through 2013.
    - Law No. 690 (Law for Development of Coastal Areas).
  - April 2011: Presidential Delegation for the Promotion of Investments and Facilitation of Foreign Trade created via reform of PRONICARAGUA.
  - Negotiations concluded on promotion and protection of investments agreement between Nicaragua and the Russian Federation; arrangement to sign being made. Bilateral agreements being negotiated with Libya, Iran, Belarus, Brazil, and other countries.

### Food strategy and nutritional security (SSAN)
- Legal and institutional framework:
  - 2009: National Assembly enacted Law 693, the Law of Food and Nutritional Sovereignty and Security.
  - 2010: Establishment of the Executive Secretariat for Food and Nutritional Security and Sovereignty (SE-SSAN).
  - Food Security and Sovereignty Policy formulated and implemented in inter-agency framework (INIFOM, MARENA, MAGFOR, MINSA).
- Programs and targets:
  - Programs include Productive Food Program (PPA), School Feeding, Food and Nutrition Education, Food Safety System, Stockpiling and Sale of Staple Foods at Fair Prices, Support for Agroindustry, Capitalization of Low-Income Women Farmers, Loans to Women in Urban Areas, and Seed and Fertilizer Program.
  - Food Productivity Voucher (BPA) program: target to provide capital to 84,000 families out of an initial universe of 280,000 (III CENAGRO) between 2007 and 2011; supports 30 percent of these families nationwide (the poorest). By December 30, 2010 delivered 59,755 vouchers.
- Emergency and local planning:
  - Emergency welfare assistance provided to 754,321 members of poor families.
  - Universities providing training in 32 municipalities; first leaflet on Food and Nutritional Security (SAN) produced.
  - Tools for interagency municipal food and nutritional security plans piloted in Chinandega, Ocotal, Matagalpa, and Estelí.
  - SSAN Surveillance and Early Warning System installed in 43 communities in 11 departments.
- Nutrition and school feeding:
  - MINSA’s Growth and Development Surveillance and Promotion program: by 2010, 90 percent of children had received growth and development check-up.
  - Over 960,000 children receive a daily serving of food under the School Lunch Program (rice, beans, oats).
  - School Lunch Program (improved since 2007): 75,602,333 servings delivered in 2010 to 966,647 children; total servings 2007–2010: 440,418,486.
  - National Micronutrients Program operates supplementation, fortification, and communication activities.
  - Ministry of the Family program "Amor para los más chiquitos" provides comprehensive care including nutrition.

### Education sector strategy and results
- Strategy and policies:
  - Since 2007 reform focused on restoration of rights, equity, and quality.
  - Abolition of school autonomy and establishment of cost-free education without fees.
  - Educational Strategy established April 2010 with New Education approach oriented to community participation.
  - Campaigns to complete sixth grade (begun 2010) and ninth grade to achieve universal basic education.
- Access, materials, and feeding:
  - School feeding: 75,602,333 servings in 2010 to 966,647 children; 440,418,486 servings delivered between 2007 and 2010.
  - 333,813 school uniforms provided (2007–2010).
  - 205,958 school backpacks delivered in 2010 (up from 51,000 in 2006).
  - 2,975,635 textbooks delivered in 2010.
- Teacher training and classrooms:
  - 21,590 primary school teachers (previously unqualified) received professional training during 2007-2010.
  - Classrooms built/replaced/repaired/expanded (2007–2010): 3,992 (average ~1,000 per year); 2006: 584 classrooms.
  - Remaining needs: 5,663 classrooms to be replaced; 9,801 to be repaired; 14,392 need maintenance; 1,043 schools still have no physical infrastructure.
- Enrollment and coverage:
  - Preschool enrollment: 2006: 209,950; 2010: 218,062.
  - Preschool Net Enrollment Rate (NER): 2006: 52.3 percent; 2010: 54.5 percent (increase of 2.2 percentage points).
  - Preschool retention rate: 2006: 84.10 percent; 2010: 90.30 percent.
  - For population aged 6 to 12 years: 2006: 972,194; 2009: 934,454 (demographic decline).
  - Primary school enrollment: 2006: 966,206; 2010: 923,745 (verified enrollment).
  - Percentage of school-age population (6–12 years) outside the educational system: 2006: 7.72 percent; 2010: 7 percent.
  - Note: official primary age range changed from 7–12 to 6–11 in 2006 (expected to stay in that range in 2012).
- Literacy campaign and adult education:
  - 2006 illiteracy rate: 22 percent.
  - National Literacy Campaigns ("From Martí to Fidel", "From Fonseca to Sandino") declared Nicaragua a “Territory Free of Illiteracy” on August 22, 2009 when illiteracy rate fell to 3.56 percent.
  - 2010 illiteracy rate: 3.0 percent.
  - Campaign participation: 24,659 volunteer facilitators.
  - 2011 attendees of literacy and post-literacy classes: 532,641 people.
  - Post-literacy program participation in 2010: 9,836 grassroots teachers in 153 municipalities.
  - Graduates from primary education courses for youths and adults (2007–2010): 152,336.
- Early childhood and targeted programs:
  - Community educators in preschool education (2010): 6,748 (95 percent women).
  - "Love for the Youngest Program" provides comprehensive care for children 0 to 6 years.
- Teacher quality:
  - Unqualified teacher ratio (2007–2009 average): 38 percent overall; highest in preschool (~two-thirds), lowest in primary (nearly one quarter).

*Source: GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (September 12, 2011).*

### 0.40 percentage points on 2009 and close to the

### _cr11323 - 0.40 percentage points on 2009 and close to the

### Primary education — coverage, retention, promotion, and quality
- Adjusted primary Net Enrollment Rate (NER) in 2010: 93.2 percent, 5.7 percentage points higher than the NER.
- Retention in primary school:
  - 2010: 91.20 percent
  - 2009: 90.5 percent
  - Improvement since 2006: 4.3 percentage points
  - NHDP goal for 2010: 91.0 percent (surpassed)
- Grade promotion rate in primary school:
  - 2006: 83.7 percent
  - 2010: 90.60 percent
  - Increase since 2006: 6.9 percentage points
  - Surpassed NHDP goal and expectations for 2010 by 10.6 percentage points
  - Number of children promoted: 95,738 in 2006 and 102,595 in 2010
- Grade repetition and educational backlog:
  - Estimated rezago escolar in primary education in 2009: 52.57 percent
  - Number of children behindhand in their studies: 111,371 in 2006 and 70,256 in 2010
- Student performance (national survey, 2009) — languages, literature and mathematics:
  - Fourth grade results: 72.9 percent (basic and intermediate level)
  - Sixth grade results: 74.3 percent (basic and intermediate level)
  - Mathematics: fourth grade 82.7 percent; sixth grade 86.4 percent
  - Principal factors affecting results: school environment, average socioeconomic and cultural level of families, teacher methodologies, possession of textbooks, preschool education attendance
- Actions under the Educational Strategy (from 2010) to improve completion of sixth grade and enrollment:
  - Appointment of new educators for rural areas lacking full six-grade primary schools
  - Guaranteed training for primary school teachers
  - Ongoing efforts to improve school facilities
  - More flexible and diversified arrangements to ensure entry into and retention in the educational system
- Policy orientation: continue providing educational opportunities for the poorest via varied mechanisms to achieve equity in quality of outcomes; provision of additional assistance for students who need it (reforzamiento escolar).

### Secondary education — access, promotion, retention, and challenges
- Enrollment and promotion:
  - Secondary school enrollment: 425,718 in 2006 and 458,321 in 2010
  - Promotion rate:
    - 2006: 76.7 percent
    - 2010: 91.10 percent
- Retention rate in secondary school:
  - 2006: 86.0 percent
  - 2010: 85.40 percent (fell by 0.60 percentage points)
- Stated barriers to secondary attendance in 2005:
  - Cost of secondary education: 56.56 percent
  - Need to work: 7.45 percent
- Major challenges and strategies:
  - Boost secondary education by strengthening the student monitors movement to guarantee enrollment, retention, and promotion across secondary education forms
  - Continue strengthening teachers’ ability to implement current educational policies

### Special education — inclusion and enrollment
- Inclusive education approach: Basic and Middle Education System caters without discrimination to children with severe disabilities in Special Education Centers and those with minor disabilities in Regular Education Centers.
- Enrollment in special education:
  - Average (2006–2010): 3,217 children
  - Trend: decline 2006–2008, rise 2009–2010
  - 2009: 2,901
  - 2010: 2,969

### Technical education — reform, scale-up, and linkage to productive programs
- Historical context: vocational training neglected for 16 years preceding 2007; cultural preference for university education limited technical education progression.
- Reforms since 2007:
  - New training model and development paradigm to train, increase and adapt skills, especially of the poorest
  - Two types of high school diploma: Bachillerato General and Bachillerato Técnico (specialties: agricultural and livestock technology, vehicle maintenance, rural tourism)
  - Greater investment in infrastructure, equipment, and I.T. hardware; rehabilitation of Boarding Centers
  - Construction and rehabilitation:
    - Four branches of the National Technological Institute (INATEC) — small centers
    - Rehabilitation of 34 Training Centers
    - Equipping of 16 Training Centers with new technology (INATEC and INTECNA)
    - Development of a network of nine Workshop Schools
  - Joint efforts by INTECNA and INATEC for teacher updating
  - Diagnostic assessments coordinated with local agencies and governments to align curricula with social sector demands
  - Flexible entry requirements for training courses (including adult education graduates and basic literacy entrants)
  - Short (three-month) job-preparation courses
  - New Technical Apprenticeship Training lasting a year and a half to ensure employability skills
- Training scale-up and link to Emblematic Programs:
  - Number of people trained annually: 101,260 participants in 2006 and 209,086 in 2010
  - Total trained between 2007 and 2010: 564,117 people
  - Examples:
    - “Zero Usury” program: 144,679 women trained in 2007–2010
    - “Zero Hunger” program: 2,531 women leaders trained as rural promoters
- Coordination and strategic goals:
  - Start of coordination process involving MINED, INTECNA and INATEC
  - Goals: consolidate the educational sector through partnerships; train all instructors to certification; revise curricula to respond to productive and social sectors; continue improving training center infrastructure

### Health sector strategy and policies — priorities and objectives
- Seven health policy priorities:
  a. Priority care for children under five years of age, adolescents and women;
  b. The inhabitants of the dry zones;
  c. Municipalities with populations living in extreme poverty, the Caribbean coast, native peoples;
  d. Rural workers;
  e. Persons with disabilities;
  f. Mothers of heroes and martyrs, war victims; and
  g. The elederly.
- Principal government objective: ensure universal and free access to quality health services as part of the restoration of the right to a healthy life.
- National Health Policy focus since 2007:
  - Avoid people falling ill
  - Provide quality medical care and free medication
  - Shorten surgical and specialized outpatient waiting lists
  - Bring health services to poor or extremely poor populations and those hardest to reach
  - Implement innovative health strategies in the Autonomous Regions of the Caribbean coast
  - Revive popular and traditional medicine and other non-western medicine
  - Citizen governance and active population participation in the health sector
  - Comprehensive development of human resources in the health sector
  - Harmonization and ownership of foreign cooperation to align with national policies

### Progress in health — disease control, coverage, and service delivery
- Malaria:
  - 2009 Annual Parasite Incidence (API): 0.107 per 1000 inhabitants (lowest in Nicaragua’s history)
  - 2010 survey findings led to certification as free from transmission of malaria and Chagas disease by PAHO/WHO
- HIV/AIDS:
  - Overall incidence in 2009: 67.7 per 100,000 inhabitants (up from 55.0 in 2008)
  - Incidence per 100,000 inhabitants over time: 2.5 in 2000, 4.1 in 2003, 7.6 in 2006, 15.1 in 2009
  - 2009: 866 new infections recorded; 721 people identified as having HIV and 71 cases of AIDS (2008: 591 and 104, respectively)
  - Improved access to antiretroviral treatment and services to prevent vertical transmission; targeted prevention among priority groups
- Tuberculosis:
  - Incidence (all forms) fell from 41.9 per 100,000 inhabitants in 2003 to 39.8 in 2009
  - BK+ pulmonary forms fell from 25.7 per 100,000 inhabitants in 2003 to 23.1 in 2009
- Health care system and outreach:
  - As of 2007, restoration of the right to free health care per Article 105 of the Constitution
  - Implementation of the Family and Community Health Model (MOSAFC) emphasizing accessibility, health promotion, disease prevention and protection, outreach to families and communities, and coordination with Citizen Power Cabinets and health brigade volunteers
  - Home visits and care (2008–2010):
    - Homes visited: 128,891 in 2008; 1,254,843 in 2009; 1,912,898 in 2010; total 3.3 million homes
    - People dispensed care: 2.1 million Nicaraguans
  - National and International Health Brigades delivered medical care to poor and hard-to-reach populations

### Maternal and child health indicators
- Maternal mortality ratio:
  - 2006: 76.5 per 100,000 live births
  - 2009: 59.8 per 100,000 live births (dropped by almost one third since 2006)
  - Target for 2015: 40
  - Preliminary 2010 ratio: 67.4 maternal deaths per 100,000 live births; 88 percent due to obstetric causes
  - Share of obstetric causes in total maternal deaths: 93 percent in 2006 and 87 percent in 2009
- Contributing factors to maternal mortality decline:
  - Maternal waiting homes (Casas Maternas): 73 in 2009 and 88 in 2010
  - Prenatal care and timely detection of at-risk pregnancies:
    - 2006: 38.38 percent of women examined in early stages of pregnancy
    - 2010: 49.12 percent
  - Institutional births ratio:
    - 2006: 51.52 percent
    - 2010: 70.83 percent
    - 2009 records: 88 percent of births attended by qualified personnel
  - Post-partum (puerperium) coverage:
    - 2006: 60.29 percent
    - 2010: 71.57 percent
    - Number of post-partum check-ups: 94,556 in 2006 and 102,869 in 2010
  - Family planning usage recorded by MINSA:
    - 2009: 1,335,045 using birth control
    - 2010: 1,415,292 using birth control
  - Maternal death audits: 93 percent of maternal death cases are being audited
- Domestic violence care:
  - Instances of care following domestic violence: 2,353 in 2006 and 4,218 in 2010
- Infant mortality and components:
  - Infant deaths:
    - 2007: 1,947
    - 2008: 1,931
    - 2009: 1,759
    - Preliminary 2010: 1,876
  - Neonatal deaths:
    - 2007: 1,343
    - 2008: 1,335
    - 2009: 1,216
    - Preliminary 2010: 1,245
  - Postneonatal deaths:
    - 2007: 604
    - 2008: 596
    - 2009: 543
    - Preliminary 2010: 631
  - Note: neonatal and early neonatal share of infant mortality has become relatively larger as other components decline
- Child nutrition and immunization:
  - Undernourished children under one year of age:
    - 2006: 13,476
    - 2009: 12,077
    - 2010: 9,328
  - Number of normal children under one year:
    - 2006: 461,638
    - 2009: 505,435
    - 2010: 503,874
  - Malnourished children aged 1–4:
    - 2006: 50,872
    - 2009: 37,082
    - 2010: 29,389
  - Normal children aged 1–4:
    - 2006: 461,638
    - 2009: 505,435
    - 2010: 634,753
  - Rotavirus vaccine (first applied in 2007) for severe diarrhoea in children under one year:
    - Coverage in 2009: 94.34
    - Coverage in 2010: almost 100 percent
    - Vaccinations: 130,327 in 2009 and 131,529 in 2010
  - Pentavalent vaccine (third dose) coverage against diphtheria, whooping cough, tetanus, influenza, and hepatitis B:
    - 2009: 98.35 percent (135,866)
    - 2010: almost 100 percent (136,175)

*Government of Reconciliation and National Unity — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (as reproduced in the source content).*

### 98.56 percent in 2009 and almost 100 percent in 2010, in application of the third dosis (136,150

### _cr11323 - 98.56 percent in 2009 and almost 100 percent in 2010, in application of the third dosis (136,150

### Vaccination coverage and child health outcomes
- Third dose vaccination coverage: "98.56 percent in 2009 and almost 100 percent in 2010" (application of the third dosis: "136,150 in 2009 and 137,536 in 2010").
- BCG vaccination coverage against tuberculosis: "almost 100 percent in 2009 and 2010".
- First MMR dose (measles, mumps and rubella) coverage: over "95 percent" (first MMR dosis: "143,401 in 2009 and 145,709 in 2010").
- Impacts attributed to vaccination efforts:
  - Major savings for the State in terms of hospitalizations, outpatient consultations, medicines, and hours worked.
  - Decline in infant mortality, attributable to the postneonatal component.
  - Continued decline in infant mortality expected to significantly reduce mortality rates for children under five due to its high weighting.

### Early childhood programs and child protection
- "Love for the Youngest" (AMOR a los más Chiquitos) Program:
  - Provides prenatal care and support from birth until age five through health promotion and early stimulation to enhance learning skills, values, and child development.
- Child identity, education, and childcare outcomes (2007–2010):
  - "64,156 children under 12 years of age had their right to a name restored" (between 2008 and 2010).
  - Annual average of "10,534 children, including adolescents, were incorporated into the educational system" (2007–2010), compared to "1,909 in 2006".
  - Child care for working mothers: average of "73,167 children under six years of age" served in "1,191 centers".
  - Planned IDB operation beginning in 2011-2012 to create urban CICO’s for "6,000 children in 100 communities".
  - Surveillance and Promotion of Growth and Development program targets children under six not in Child Development Centers.
- Child return, placement, and protection statistics:
  - "3,003 children and adolescents were returned to the homes of their biological parents" and "1,684 were placed in substitute homes for temporary protection".
  - Reduced children in Special Care Centers from "3,000 in 2006 to 1,872 in 2010".
  - By 2010, "234 children were guaranteed the right to live with (mainly Nicaraguan) adoptive families".
  - Rights restored for "45,627 children, including adolescents," via mediated alimony agreements and family restoration.
  - "2,033 children, including adolescents, who were in emergency or disaster situations" received social protection in shelters.
  - Repatriation at border posts: "285 children were repatriated between 2007 and 2010".

### Persons with disabilities and elderly care
- "All have a Voice" (Todos con Voz) Medical Brigade and disability survey:
  - First National Survey of Persons with Disabilities in 2010 identified "126,316 persons with disabilities" (a disability rate of "2.5 per 100 inhabitants").
  - Survey supports formulation of policies, programs and projects to raise quality of life and provide specialized health care.
- Elderly population:
  - Nicaragua is undergoing a demographic transition with an increasing population aged "60 years and older", creating new service challenges.
  - "In 2007–2010, care was delivered to 12,209 elderly persons to enable them to live a dignified old age."

### Health services expansion, utilization, and outputs
- National-level service delivery (2006 to 2010):
  - Medical consultations increased "76.6 percent" (from "6,630,743 in 2006 to 11,708,296 in 2010").
  - Laboratory tests increased "107.6 percent" (from "7,148,612 in 2006 to 14,838,618 in 2010").
  - Prescriptions issued rose "165.8 percent" (from "10,916,833 in 2006 to 29,022,171 in 2010").
  - Total hospital discharges increased "34.3 percent" in 2010 over 2006 (from "254,872 in 2006 to 342,166 in 2010") with an equal number of beds.
  - Access to planned (elective) surgery increased "102 percent" in 2010 compared to 2006 (from "29.481 operations in 2006 to 59,577 in 2010").
  - "72,886 ophthalmological operations" performed between 2007 and 2010 via Misión Milagros.
  - Health services infrastructure extended to "1,222 units in 2010, compared to 1,090 in 2006".
  - Nicaragua operates an efficient generic drugs supply system.
- INSS (social security) health services for insureds (2006 to 2010):
  - People insured in social security at December 2010: "534,879" (21.8 percent more than in 2006).
  - Coverage pace with EAP: "20.3 percent".
  - Active employers in 2010: "21,204" (up 32.6 percent over "15,990" in 2006).
  - "1,226 cooperatives joined the INSS" in 2007-2010.
  - Pensions paid in 2010: "123,824" (15.3 percent more than "107,431" in 2006).
  - Amount paid out in pensions: "C$4.3 million" (up "127.2 percent" over 2006).
  - Minimum pensions revised upwards by "88.4 percent in 2010 compared to 2006" (from "C$1,212.70 a month in 2006 to C$2,284.86 in 2010"), benefiting "53 percent of pensioners and retirees".
  - Average pension in 2010: "C$2,950.9" (up "115.5 percent" on "C$1,369.4" in 2006).
  - Disability-old age-survivor pensions in 2010: "87,877" (17.6 percent more than "74,717" in 2006).
  - Occupational pensions in 2010: "8,408" (up "21.4 percent" on "6,924" in 2006).
  - Reactivation of pensions to mothers of those killed/injured in wars: number increased "24.2 percent" from "19,663 in 2006 to 24,430 in 2010"; amount rose from "C$442.00 to C$1,640.00 a month" (a "271 percent increase").
  - Temporary disability subsidies: "1,378,168 days in 2006" and "1,874,576 days in 2010" (an increase of "36 percent").
- INSS service volumes in 2010 (compared to 2006):
  - Scheduled medical consultations: "4,849,121 in 2010" ("74.0 percent" up on "2,787,364 in 2006").
  - Emergency consultations: "665,816" ("90.8 percent" more than "348,931 in 2006").
  - Hospitalizations: "44,698 in 2010" ("52.6 percent" more than "29,284 in 2006").
  - Surgical operations: "31,113" ("43.5 percent" more than "21,681 in 2006").
  - Births assisted by health professionals: "16,863 in 2010" (up "31.1 percent" on "12,867 in 2006").
  - Laboratory tests: "2,842,966 in 2010" ("78.2 percent" more than "1,595,353 in 2006").
  - MRIs, endoscopies and EKGs: "405,652" ("129.1 percent" more than "177,085 in 2006").
  - Pathological anatomy exams: "75,232 in 2010" ("19.3 percent" up on "63,061 in 2006").
  - Medical prescriptions issued by INSS: "11.4 million in 2010" ("54.0 percent" more than "7.4 million in 2006").
- Expanded care programs and facilities (2007–2010):
  - Increased care for cancer, chronic kidney failure and other high-cost diseases.
  - Expanded elderly health care and cataract surgery campaigns.
  - Emergency rooms and hospitalization facilities constructed in the Solidarity Hospital.
  - Simón Bolívar and Central America pharmacy established to purchase medicines at less onerous prices or those not on the basic list.
  - INSS Opticians delivered "47,564 pairs of glasses" to retirees and pensioners.
  - Workplace visits led to referrals of workers with chronic diseases to appropriate clinics.

### Social protection, family, and institutional model reforms (MIFAN)
- Assessment upon taking office in 2007: previous social protection scheme characterized as a "handout type" with high intermediation costs and limited MIFAM institutional impact.
- Programa AMOR goals: promote, defend and restore rights of children, the elderly and families in socially at-risk situations; provide education, health, security, sports, culture, recreation and happiness.
- MIFAN model objectives and components:
  - Focus on families from an integral and community-based perspective to foster healthy behavior, promote values, improve childrearing and family relations, prevent risks, and enable internal and external referral services.
  - Development of managerial, administrative and financial information systems plus internal monitoring, follow-up and evaluation, coordinated with SINA (Statistical Information System on Children and Adolescents).
  - Human resource training strategy and strengthened institutional coordination; synergies with SNBS, regional networks, Office to Promote Solidarity, and grassroots social actors.
- Core components of the Model:
  a. Training workshops for parents on values: open to the community, arranged by thematic cycles, coordinated with community bodies, delivered by different institutions.
  b. Support for families: information and dissemination, promotion of demand, supply management, social-psychological support; pending definition of support types, methodology, and staff selection/training criteria.
  c. Network management: Opportunities Map, interagency agreements, analysis of supply and demand based on fundamental conditions for social well-being, and defined service routes.
  d. A single beneficiary registration system: Coordination with MINSA to establish a Uniform Beneficiary Registration Card System as the baseline module for the Management Information System; first reference point is Family Health History.

### Drinking water and sanitation strategy, coverage, and outputs
- Policy stance: Access to safe water considered a human right; increased investment to expand and enhance quality.
- Sectoral priorities: expand water and rural sanitation services coverage with community participation; focus on demand, gender equity and environmental protection; update and implement SINAS; consolidate CAPS and/or Citizen Power Committees to ensure sustainability.
- Urban water policy aims: transform previous chaotic management, establish water use priorities, ensure preservation and sustainability of water sources, and instill responsible management awareness.
- Coverage and infrastructure outputs:
  - Urban drinking water coverage rose from "65 percent of the target population in 2006 to 88.7 percent in 2010," reaching "530,000 people."
  - New household drinking water connections between 2007 and 2010: "68,120".
  - Wells drilled between 2007 and 2010: "695" in rural areas.
  - Rural water coverage increased from "53.36 percent in 2006 to 63.5 percent in 2011," reaching "307,989 new individuals," including a projected figure of "57,715 new individuals".

*Source: Technical Progress Report on National Human Development Plan as of 2010 (Government of Reconciliation and National Unity) — September 12, 2011*

### 2011. The challenge ahead is to narrow the shortfall of 922,973 inhabitants of rural areas or the 39

### _cr11323 - 2011. The challenge ahead is to narrow the shortfall of 922,973 inhabitants of rural areas or the 39

### Water and sanitation: coverage, quality shortfalls, and investments
- Rural population shortfall: "922,973 inhabitants of rural areas" or "the 39 percent of the population that drinks water from rivers and springs."
- Types of rural water access in 2010 (categories as presented): 
  - "Household connections, water piped into homes."
  - "Other improved sources (public water holes or wells), Water taken from outside the home."
  - "Untreated sources (rivers and springs) (*)"
- Sanitation coverage changes:
  - Urban sewage system coverage increased from "36 percent in 2006 to 39 percent in 2010."
  - "36,828 new household waste water connections" constructed in urban areas between 2007 and 2010.
  - Rural sanitation coverage increased from "77.8 percent in 2006 to 84.8 percent in 2011," reaching "363,350 more people."
- Rural sanitation quality and needs:
  - Of the rural population with sewage system services: "55 percent used improved latrines, 29 percent traditional, simple latrines."
  - The "29 percent" quality shortfall amounts to "703,353 people" needing better sanitation services.
  - "Fifteen percent of the rural population (362,800 people) have no kind of sanitary option."
- Sector investment and major works (2007–2010):
  - Total investment: "C$4,302,770,000.00."
  - Construction of the Managua Waste Water Treatment Plant (PTAS), investment "US$85 million"; includes "six sewage pumping stations and more than 20km. of piping."
  - Managua Drinking Water and Sanitation Project (PRASMA) serving "27 districts."
  - Drinking water and sanitation projects in "Nueva Segovia, Madriz and Estelí."
  - Expansion and improvement projects in "Somotillo, Villa Nueva, Telica, El Sauce, La Paz Centro, Nagarote, Malpaisillo, San Benito and San Rafael del Sur."
  - Drinking Water, Sewerage and Treatment System for "San Juan del Sur-Rivas" using the Great Lake of Nicaragua as supply.
  - Construction of "more than 80 urban and 74 rural water systems with 12,878 household connections," directly benefiting "more than 300,000 people."
  - More than "611 wells and 22,721 latrines" built in rural areas.
  - Aqueduct optimization and sewerage/treatment plant in "Diriá y Diriomo," serving "25,000 people."
  - Drinking water supply system for Juigalpa benefits "more than 70,000 people," service "assured for 20 hours a day," supplied from "the large Cocibolca Lake."
  - San Juan del Sur project: directly benefits "8,000 people," "guaranteeing continuous service for 222 hours a day," project expected to "assure service to 25,000 people by 2020."
  - Major investments include the "Augusto C. Sandino" PTAS in Managua and the beginning of the Lake Xolotlán sanitation system.

### Residential and social housing policy: deficits, subsidies, legal reforms, and programs
- Aggregate housing deficit in 2007: "957,000 homes" (of which "348,000" needed to be built and "609,000" improved or expanded).
- 2007–2010 direct subsidy outcomes:
  - "8,351 new homes" built, benefiting "41,755 people (82 percent of families with a monthly income of less than C$4,000)."
  - "4,595 houses" improved and/or expanded, benefiting "22,975 people."
- Indirect subsidy measures:
  - "370 indirect subsidies" granted at annual interest rates "between 2 and 3.5 percent" for "10-year mortgages."
  - Exemption from tax on construction materials for "12,667 low-income homes" built by private developers.
- Legalization of Ownership Program: legal tenure assured for "5,389 families."
- Plan Techo Solidario (launched 2009):
  - "1,486,000 corrugated iron sheets" delivered for "148,600 families" and "297,200 pounds of nails."
- Law 677 ("Special Law to Foster Housing Construction and Access to Low-Cost Homes") supported measures including:
  - Subsidizing mortgage interest rates for home purchases.
  - Partnerships with banks for low-cost housing plans.
  - System for workers to receive an advance against retirement benefits for house downpayments and automatic payroll deduction for mortgage payments.
  - Agreements for discounted cement prices.
  - Establishment of One-Stop Housing Permit facility to expedite permissions and reduce preinvestment costs.

### Labor policy and employment outcomes
- Survey modernization:
  - Since "February 2009" the Continuous Household Survey replaced the previous National Employment Survey to provide quarter-on-quarter data.
- Employment growth (2006–2010):
  - Number employed increased by "approximately 649,200 people, or 31.1 percent."
  - From 2009 to 2010 (comparable moving series), employed population for the last quarter increased by "304,000 people or 125 percent."
- Free trade zone employment at end-2010: "89,927 people" employed nationwide.
- Social security (INSS) coverage:
  - Active insureds at end-2010: "534,879" — "32.6 percent more than the figure for end-2006."
  - Historical INSS active insureds figures presented: "534,879; 503,695; 493,354; 458,965; 439,002" (years shown in chart: 2006–2010).
- Open unemployment rates (IV Quarter comparisons 2009 to 2010; values and changes preserved):
  - Nationwide: "7.79 6.44 -1.35" (IV Quarter 2009; IV Quarter 2010; Increase)
  - Men nationwide: "6.86 6.12 -0.74"
  - Women nationwide: "9.15 6.87 -2.28"
  - Managua: "10.33 9.46 -0.87"
  - Men Managua: "9.94 10.07 0.13"
  - Women Managua: "10.79 8.73 -2.06"
  - Other urban: "9.51 7.99 -1.52"
  - Men other urban: "9.87 8.36 -1.51"
  - Women other urban: "9.09 7.57 -1.52"
  - Other rural: "4.45 3.09 -1.36"
  - Men other rural: "2.92 2.17 -0.75"
  - Women other rural: "7.71 4.60 -3.11"
- Notable labor policy actions and protections:
  - National Minimum Wage Commission meets every six months since 2010; minimum wage rises affected "145,673 workers."
  - Value of housing included in the basic family shopping basket in 2007.
  - Tripartite Agreement (January 2010) on minimum wage adjustments through 2012 for free trade zone workers and social policy matters.
  - National Decent Work Plan implementation, Labor Code published in Miskito language.
  - Youth employment: "11 Municipal Roundtables on Youth Employment" facilitating employment/self-employment for "5,000 youths" aged 15–24; National Youth Employment Commission established.
  - National roadmap to declare Nicaragua free from worst forms of child labor by "2015" and all forms by "2020."
  - National Entry into the Labor Force Program provided tools for "440 workers" via projects like “Improving Employment” and “Self Employment.”
  - Programs "Zero Usury" and "Zero Hunger" promoted nonformal sector productivity and associative enterprises.
  - Ratified ILO Conventions 81, 129, and ILO Convention 169 concerning Indigenous, Tribal and Afrodescendant Peoples.
  - Laws enacted: General Law on Labor Inspection; Law Amending and Supplementing Chapter VIII of the Labor Code (domestic adolescent labor); General Law on Hygiene and Safety in the Workplace.

### Measures for sound public management: transparency, integrity, and audits
- Institutional reforms:
  - Organic Law of the Office of the Comptroller General (CGR) passed on "June 16, 2009."
- Preventive and oversight measures:
  - "363 training events" for "12,591 public officials" on CGR and related laws during 2007–2010.
  - Internal control activities in 2010 produced "98 follow-up and technical advisory reports" on implementation of internal control recommendations across "29 governmental institutions and 69 municipalities."
  - "127 Administrative System Adjustment Certificates" issued in 2010: "43 to central government institutions and 84 to municipalities."
- External audits and complaint mechanisms:
  - "647 audits" in the public sector in 2009–2010: "356 in 2009" and "291 in 2010."
  - Citizen complaints system "Denuncia Ciudadana": in 2010 decisions issued on "58 complaints" (54 received in 2010 and 58 in 2009).
- Integrity declarations:
  - "15,007 declarations of probity or net worth" submitted by civil servants in 2007–2010; "12,556" by entrants and "2,451" by leaving civil servants.

### Citizen security: prevention, policing, and crime outcomes
- Institutional approach: preventive, proactive community policing; partnerships with community and institutions.
- Key 2009–2010 outcomes:
  - "1,270 interdepartmental plans" designed and executed in 2010 against drug trafficking, gangs, criminal groups, and organized crime.
  - "5,097 Societal Crime Prevention Committees" set up with "25,000 citizens."
  - Crime changes in 2010 vs 2009:
    - Homicides diminished by "10 percent," with "217" cases reported.
    - Rape down "7 percent (1,677 cases)."
    - No armed bank robberies recorded for the year.
    - "9,393 reported complaints of armed robbery and acts endangering family safety," a decline of "12.0 percent" from 2009.
  - Dismantling international drug trafficking cells: "16 cells" neutralized in 2010 (five more than in 2009).
  - Operations against traffickers and dealers rose "2 percent," from "2,329 in 2009 to 2,380 in 2010."
- Services for women and victims:
  - Women's Complaints Units increased from "25" in 2006 to "59" units in 2010 (distributed: "18 departmental police stations, eight district police stations, and 33 municipal police stations"); increase of "24 units (41 percent) in 2010" from "35" in 2009.
  - Assistance provided to "135,187 women" (increase "2 percent"); "30,926 complaints" recorded (increase "7 percent").
  - Known domestic violence offenses: "3,506" (0.42 percent fewer than in 2009).
  - Reported sex crimes decreased by "11 percent" from "3,712 in 2009 to 3,298 in 2010."
  - Effectiveness in dealing with these cases: "63 percent," an increase of "15 percent" compared with 2009.
  - Volunteer Promoters Network expanded by "37 percent" to "3,432 members" in 2010.
- Emergency and prevention outcomes:
  - Emergency hotline system established nationwide.
  - Police overall effectiveness: "47 percent" in 2006; "59.2 percent" in 2010.
  - Youth interventions: "23,000 youth gang members at social risk" incorporated into recreational activities (2007–2010); "24,150 family counselors" recruited; effort made to remove "2,000 youth" at high risk from gangs in 2010; "500 technical career training scholarships" arranged for at-risk youth.
  - Crime deceleration indicator: "11.0 percent" in 2007; "3 percent" in 2010.
- Traffic enforcement and accidents:
  - "181,841 fines" imposed for traffic violations in 2010.
  - "21,495 accidents" responded to in 2010 (4 percent increase vs 2009); fatalities "520" (22 fewer deaths, "-4.2 percent"); injured decreased by "341 (-6.8 percent)."
- Migration, fire, and prisons services:
  - Nationwide, "13,542 inspections and patrols" to prevent people smuggling and trafficking.
  - Fire Department responded to "74,883 emergencies"; coverage expanded in seven departments (Juigalpa, Granada, Estelí, Malpaisillo, Nagarote, San Juan del Sur, and Chinandega).
  - "142,916 preventive services" provided by the Fire Department.
  - Prisons System: "11,544 detainees" enrolled in education programs; as of 2010, "178 inmates" enrolled in university degree programs.
- Mine clearance and victim assistance:
  - In 2010, five humanitarian de-mining programs in Wiwilí, Mozonte, and San Fernando destroyed "8,487 mines" and "1,499 items of explosive waste."
  - 2007–2010 totals: destruction of "179,970 antipersonnel mines," "133,435 stockpiled antipersonnel mines," and "2,034,970 munitions and items of explosive waste."
  - Cleared frontier and land: a "30-kilometer stretch frontier cleared of mines" and "187.2 square kilometers" swept of antipersonnel mines on northern border.
  - "1,276 victims" of mines or explosive devices received medical attention, rehabilitation, and prosthetic/orthotic devices.
  - Mine awareness training reached "438,272 people."
  - Nicaragua declared an "antipersonnel-mine-free territory" in June 2010; "74 municipalities" in the north cleared and benefiting "2,500,100 people."

### Access and quality in the provision of justice; juridical security and institutional reforms
- Major institutional developments: development of judicial infrastructure, creation of Public Ministry, Office of the Human Rights Ombudsman, reform of the Criminal Procedures Code (CPP), Criminal Code, and special unit on Coexistence and Citizen Security.
- Justice approach: prevention and citizen security, coordinated investigation and prosecution stages involving police, Migration and Foreign Status, Public Prosecutor, Attorney General, judiciary, and Public Defender; final stage involves National Prisons System.
- Access to justice priorities: broaden services, fair trial guarantees for young offenders, attention to women, minors, and ethnic communities, and citizen power model facilitation.
- Institution-building and modernization:
  - Programs to strengthen regular services offices, judge's chambers, document service offices, and oversight of proceedings.
  - Progress to increase efficacy of jurisdictional actions and involve Human Rights Ombudsman.
  - Creation of procedural support offices to shorten justice administration delays.
  - Case backlog disposed: "171,691 cases" disposed of; "149,042" of cases brought during "2007-2009" disposed of.
  - Electoral roll update ensured jury trials.
  - Training for judicial officials; judicial inspectorate strengthened and reorganized.
  - Implementing regulations for the Judicial Career Law approved.
- Legal framework modernization:
  - Adoption of new "Criminal Code," "Public Records Code," and "Law on setting a Reasonable Time Limit in Pending Cases under the Preliminary Investigation Code."
  - "Code of Civil Procedure" under preparation.
  - Modernization of public real estate and mercantile records continues.
  - New computer systems implemented to modernize judiciary technological infrastructure; appointment of new public defenders to assure free defense counsel nationwide.

### Strengthening of the state, public administration, decentralization, and municipal capacity
- Civil service professionalization:
  - Under Civil Service Law, as of "December 31, 2010," "14,471 civil servants" were accredited for the administrative career — "80.39 percent" progress toward the goal of "18,000 eligible civil servants by 2011."
- Training and human resources development:
  - Four postgraduate courses in human resources management for "119 personnel and technicians."
  - "280 training events" on Civil Service legal framework attended by "7,069 civil servants."
  - Training and technical assistance to management and HR personnel of six assistance/information areas.
- Harmonization among branches of government:
  - 2009 legislature adoption counts: "(40) laws, (368) decrees, (8) National Assembly resolutions, one (1) National Assembly declaration, (9) Governing Board resolutions, and one (1) Governing Board declaration."
  - In 2009 parliamentary committees delivered opinions on "21 law bills and 24 decree bills."
  - XXVI legislature in 2010 passed "35 laws."
  - Decree 6202 adopted "on November 16, 2010" accepting amendments to the Articles of Agreement of the IMF.
  - Approved laws include: new Organic Law of the Central Bank, Insurance and Reinsurance Code, Bonded Warehouse Law, Financial Factoring Law, Exchange Invoice Law, Government Administrative Procurement Law, 2010 Budget Amendment Law, and 2011 Budget Law; National Defense Law, Democratic Security Law, Border Legal Regime Law.
  - National Assembly approved "10 loan decrees" totaling "US$273.1 million" and a donation of "US$11.7 million," totaling "US$284.8 million."
- Judiciary case processing improvements:
  - Backlog reductions as above: "171,691 cases" disposed, "149,042" of 2007–2009 cases disposed.
- Decentralization and municipal strengthening:
  - Objective: greater efficiency and efficacy in local public services and human development management; fiscal and tax transfers among government levels.
  - Regional offices (DT) opened beginning "April 2007"; priority to strengthen INIFOM.
  - Municipal tax collection methodology design in "35 municipal mayor’s offices"; training provided to "258 technicians, authorities, and leaders of citizen power cabinets."
  - Integrated Financial Management System (SIAFM) installed in "109 municipalities" in 2010; four basic modules installed in "89" and applied in "55"; institutionalized in "53 mayor’s offices (30 percent)" involving "305 municipal technicians."
  - Financial reporting now timely in "more than 43 municipalities."
  - Municipal Real Estate Registry System (SISCAT) operational since 2010 on three levels; "real estate values tables" drawn up in "92 municipalities" in 2009–2010.
  - SISCAT training provided to "192 local stakeholders"; computer program training to "566 municipal officials and technicians" in Chinandega, Madriz, Estelí; equipment/software supplied to all "28 municipalities" in these departments.
  - "30 municipalities" in Department of Chinandega included in property title regularization process; real estate databases installed by INETER.
  - New Municipal Human Development Planning System (SPMDH) designed and implemented in "109 municipalities" in 2009 with direct citizen participation; survey covered "more than 500,000 people."
  - Public waste management strengthened in "45 municipalities."
  - Citizen power training: "2,268 male and female leaders" trained in "153 municipalities" for municipal management and oversight and design of investments with a gender focus.
- Municipal investments and local development:
  - 2007–2008: "60 municipal and social services infrastructure projects" at investment "C$ 78.1 million," directly benefiting "682,011 residents of 31 municipalities."
  - 2009–2010: "22 projects" in six municipalities in Department of Río San Juan, restoring access to production goods for "1,456 families (1,102 women and 354 men) in 274 communities" funded by decentralization of "US$530,000 (equivalent to C$ 10,853,314.34)."
  - PRODELSA distributed "3,802 food production bonuses" benefiting "3,802 women and the 24,000 members of their families" with investment "C$ 33.8 million" in 15 municipalities in Matagalpa, Jinotega, Madriz, and Nueva Segovia.
- Fiscal transfers:
  - For the first time in history, in "2010 and 2011" Nicaragua fulfilled constitutional mandate to transfer "10 percent" of tax revenue to municipalities; in 2006 only "6 percent" was transferred.
- Municipal technical assistance:
  - Since 2007 INIFOM provided technical assistance to mayor’s offices; "140 mayor’s offices received technical assistance in 2010" compared to "36 in 2006."

*Italic: Source — GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY, TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010 (September 12, 2011).*

### conclusion of the land policy framework; ii) Demarcation of lands, protected areas, and indigenous

### _cr11323 - conclusion of the land policy framework; ii) Demarcation of lands, protected areas, and indigenous

### Land administration, property regularization, and indigenous land demarcation
- Interagency working groups established composed of the Property Administration Office, BCN, and Office of the Attorney General (PGR) to manage transfer of properties from defunct banks and the BCN to the Nicaraguan state.
- Arrangements with public property registries and central registries expedited registration of properties in favor of the state to declare titling “in the interest of society.”
- Measures to ensure security of property rights implemented via coordination among PGR, INETER, and public registries to enable the Property Administration Office to issue titles and provide legal security.
- Property documents issued between 2007 and 2010 (benefiting 292,954 people in the Pacific and central regions):
  - 15,444 urban titles
  - 12,726 rural titles
  - 24,427 land-use planning clearances (Laws 85, 86, and 88)
  - 7,286 certificates of compliance
  - 1,397 descriptive minutes
- Titles issued to indigenous and Afro-descendent communities:
  - Property titles to 15 indigenous communities on the Caribbean coast and to 214 creole, original and Afro descendent communities
  - Total area covered: 22,479 km2
  - Benefiting 71,276 people

### Environmental sustainability and forest development
- National values shift (since 2007) toward protection and restoration of ecosystems; accession in 2010 to the Universal Declaration of the Common Good of the Earth and Humanity.
- 2010 adoption of the National Environmental and Climate Change Strategy to ensure community-based and institutional participation.
- Environmental education integrated as crosscutting theme in Basic General Education Curriculum:
  - Three environmental textbooks taught for 2nd, 6th, and 9th grades in 2,000 targeted schools
  - Benefiting more than 100,000 students and 2,300 teachers
  - Training given to 60 MINED education advisors
- Community participation: 1,633,118 community members engaged in new culture of caring for Mother Earth.
- National forest inventory (2009):
  - Forests cover 25 percent of the country's surface area = 3,254,145 hectares
  - Natural forest: 98 percent = 3,180,466 hectares
  - Forest plantations: 2 percent = 73,679 hectares
  - Approximately 30 percent of natural forests = 992,390 hectares in protected areas; 92 percent of those are latifoliate forests
- Deforestation and reforestation:
  - Estimated 70,000 hectares deforested annually
  - National Reforestation Crusade results:
    - Reforestation of 82,343 hectares in degraded watersheds and dry zones; benefited 41,017 families in 40 municipalities
    - Total people participating in reforestation efforts: 897,037, including 350,000 students
    - 95 percent reduction in forest fires: from 2,238 in 2006 to 310 under current government
    - 2007-2009 Forest Management Plans: 24,385 hectares (average 8,128 hectares per year)
    - 56 percent reduction in hotspots: from 4,160 to 2,993
    - Community actions: 2,146 community leaders trained; 618 community-based fire prevention and control brigades outfitted; early warning system installations
- Sustainable land management (SLM) since 2007:
  - Implemented in 9,298 hectares in dry areas
  - Breakdown: 4,649 hectares agroforestry and forest pastureland (2,200 hectares forestry systems, 649 hectares agroforestry systems, 1,800 hectares forest pastureland systems)
  - Benefited 779 small farmer families in 12 municipalities in León and Chinandega
- Protected areas (2007–2010):
  - 75 percent increase in protected areas
  - Action plans for 54 out of 72 areas
  - 25 action plans drawn up and approved with cooperative management
  - Demarcation and signposting of 17 legally protected areas
  - Identification of 12 Ecologically and Culturally Important Sites in Chinandega, León, Estelí and Madriz; four declared Municipal Ecological Parks
  - Cayos Perlas system (RAAS) declared new wildlife refuge covering 32,000 hectares (2010)
  - Ometepe Island declared UNESCO world biosphere reserve
  - 47.46 reduction in hot spots in protected areas: from 1,492 in 2006 to 784 in 2010
  - 37 percent decline in number of fires in protected areas Jan–May 2010 compared to 2009
  - 11 new private nature reserves declared and incorporated into SINAP
  - Tourist sites identified during demarcation to support community-based sustainable development

### Water management, coastal management, and pollution control
- NHDP objective: protect principal watersheds for water conservation and climate change adaptation.
- Watershed geography:
  - 21 watersheds total: 13 drain into Caribbean Sea covering estimated 117,420 km² (~90 percent of national territory); 8 drain into Pacific covering 12,183 km² (~10 percent).
- Legal progress: Law No. 620, General Law on National Water Resources and implementing regulations (Presidential Decree 106-2007); Article 110 mandates “Support for the Preparation and Execution of Plans to Protect Water Resources in Basins and Aquifers.”
- Río Viejo subbasin and upper/middle Estelí River Plan of Measures (post-drought) led to:
  - Construction of 272 water harvesting works
  - Tree cover and soil conservation expansion by 2,153 hectares
  - Benefited 3,343 families in 13 municipalities
- Lake Cocibolca protection as “a natural drinking water reserve” (Article 97, Law 620); water use expansion for Juigalpa and planned for San Juan del Sur.
- Cerro Verde Nature Reserve work: tree cover/soil conservation expansion by 253 hectares; Las Canoas reservoir declared Municipal Ecological Park (10-hectare area).
- Gil González river subbasin and coastal wetlands: expansion of tree cover and soil conservation areas by 196 hectares.
- Adaptation Fund agreement (El Sauce, Achuapa, Villa Nueva): US$5.07 million (2011–2015) to build two communal irrigation systems to:
  - Supply water to 85 farmer families to irrigate 162 hectares a year
  - Build 880 rainwater catchment/storage facilities
  - Expand tree cover/soil conservation by 1,120 hectares
- Río Viejo subbasin agreements with IDB and Nordic Development Fund to assist 3,600 small/medium farmer families:
  - Expand tree cover and soil conservation by 21,760 hectares
  - Construct 2,318 water harvesting works capable of storing 176,850 m3 of water
- Lake Cocibolca basin EU agreement to finance local environmental management initiatives focused on forests, water and biodiversity.
- Lake Apanás Ramsar site No. 1137 projects to conserve biodiversity and protect 2,822 hectares of forests.
- Coastal management:
  - NHDP focus on conservation of coastal resources across 372 km of Pacific Coast and 563 km of Caribbean coast
  - Principal coastal ecosystems include 750 km2 of mangrove swamps (436 km2 Pacific; 314 km2 Caribbean)
  - Legal progress: Law No. 690, “Law for the Development of Coastal Areas” and Decree 78-2009
  - Managua Declaration (Gulf of Fonseca) (2007) advanced socio-environmental initiatives for shellfish and fish cultivation in El Viejo
  - Protection of nesting sites: paslama sea turtle (seven Pacific marine areas); carey turtle in El Cocal beaches and Cayos Perlas
  - UNEP projects (2011–2012) to protect 3,800 hectares of mangrove swamps in Laguna de Perlas municipality
- Pollution control and environmental permits:
  - Preventive strategy addressing liquid waste, solid waste, pesticides, toxic substances, sewage treatment
  - 154 ecological toxological technical opinions issued to register pesticides for agricultural use
  - 60 environmental permits for handling hazardous waste issued
  - Best Agricultural Practices implemented in 14 Caribbean coast communities to reduce pesticide run-off
  - 1,250 companies assisted (2007–2011) with environmental management plans across dairy, tannery, construction, coffee and slaughterhouse sectors in Boaco, Chontales, Matagalpa, Jinotega, Granada, Masaya, Managua and Rivas
  - Progress toward General Law on Solid Waste; update of Nicaragua’s Obligatory Technical Standards (NTON) for hazardous and non-hazardous waste; preparation of Methodological Guidelines for Municipal Plans

### Environment-friendly production, biodiversity, and land use
- Authorizations and permits (2007–2010):
  - 1,994 authorizations and 129 environmental permits issued to execute projects generating approximately 10,170 direct jobs
  - Project breakdown: 30 energy-related, 18 urbanization, 16 tourism sector, 22 geological/mining, 15 fish farming, 28 other projects
- National Environmental Information System (SINIA) outcomes:
  - Update underway for Map of Ecosystems and Plant Formations (base year 2006)
  - Ecosystem classification reduced from 68 types (2000) to 44 plus five aquatic ecosystems and one agricultural use heading (six usage systems)
  - Analysis of Conservation of Biological Diversity identified most threatened ecosystems: dry forests, mangrove forests, cloud forests, pine forests, gallery (riparian) forests, crater lakes, coral reefs
  - Pacific biodiversity sites identified (4 sites) covering 26,153.9 hectares: Farallon Islands of Cosigüina, Puerto Sandino, La Anciana and Ostional
  - Caribbean biodiversity sites identified (5 sites) covering 159,731.6 hectares: Cayos Perlas zone, Corn Islands, Bluefields Lake estuary, Money Point area and Cocal area
  - Nicaraguan Biodiversity Network comprises more than 50 experts contributing to studies, the Nicaraguan Journal of Biodiversity and Protected Areas, forums, and SINIA portals
- National Strategy to Reduce Emission caused by Deforestation and Forest Degradation (ENDE) preparations underway; MARENA, MAGFOR and INAFOR involved; forestry policy updated in 2008
- Land use (2011 maps and comparisons):
  - Most widespread uses: forests 32%, livestock farming 26%, brush 17%, other vegetation (10%), water 8%, agriculture 6%, shrimp farming 0.21%
  - Half the national territory properly used; 10 percent under-used; 26 percent over-used (comparison 2011 current use map vs potential use 2010)
  - 4.7 million manzanas of pastureland (2011 satellite maps)
  - 14,677 manzanas used for shrimp farms (INPESCA, 2009)
  - 2011 Current Use Map: 5.88 million manzanas of forests with composition including closed broad leaf (latifoliated) forests (16.9 percent of national territory), open latifoliated forests (7.5 percent), open and closed cone pine forests (2.1 and 0.6 percent), mangrove forests (0.6 percent), mixed forests (0.1 percent), plantations of broad-leaf species (0.1 percent), large areas (3.7 percent) of natural regeneration after Hurricane Felix, and pine forest regeneration areas (0.2 percent)
  - Nicaragua’s 71 protected areas cover 3,116,264.77 manzanas or 17 percent of national territory (MARENA, 2010)
- Community agroforestry and restoration work ongoing in BOSAWAS and Río San Juan biosphere reserves using small farm management plans

### Disaster risk management, early warning systems, and humanitarian response
- COMUPRED (Municipal Committees for Disaster Prevention, Mitigation and Response) established and strengthened for planning and coordination among central government, municipalities, population groups and cooperation agencies.
- Early Warning Systems (EWS) installed: nine EWS overall, including:
  - One tsunami EWS in San Rafael del Sur (three-siren local warning system for Pochomil, Masachapa and Quizalá)
  - Two earthquake EWS (one in Quizalá and one accelerograph in Hotel Barceló Montelimar)
  - Seismic stations and volcanic EWS installations: Telica volcano (six seismic stations and three webcams); Cerro Negro volcano (eight seismic stations and six webcams)
  - RAAN regional EWS: limnimetric systems, local capacity building, repeater station on Cerro Capitán (Bonanza) linking VHF radio sets in Waspán, Bilwi, Prinzapolka, Siuna, Bonanza and Rosita
  - Flood EWS installed in Waspán, San José de Bocay and Wiwilí de Jinotega (indigenous territories on the Coco river)
- Territorial organization and capacity-building:
  - 2007 Operating Guidelines for COMUPRED drawn up
  - First half 2010: training of approximately 1,600 people in 153 municipalities; 396 workshops on mainstreaming risk management; preparedness exercises and disaster simulations
  - A database of socio-natural risk management indicators and municipal planning records constructed from 2009–2010 training
- Humanitarian assistance (2007–2010) following heavy rains, fires, hurricanes and floods:
  - 374,632 people received relief
  - 29.68 million pounds of food, construction materials and other provisions delivered via 19 contingency plans
  - National Treasury financed fuels and lubricants for humanitarian transportation totaling US$5,354,091.20
  - Delivered 20,888 caliber 26 corrugated iron sheets; 20,888 pounds of nails; 67,200 bolts for roofing
  - 660 roofs rehabilitated (626 homes, 33 schools, 1 municipal stadium)
  - 1,000 families received fruit and vegetables to boost food independence
  - 50 outboard motors given to artisanal fishermen (post-Hurricane Felix relief)
  - 390 families on Lake Managua banks resettled; relief to 204 families (799 people) in Nagarote
  - Health response to leptospirosis outbreak via community health campaigns
  - 15,203 hygiene kits distributed at cost of C$150,615.00
  - Shelter and relief distributions: blankets, sheets, mats, hammocks, black plastic sheeting, water dispensers, and 3,700 pounds of clothing
  - 4,830 dinners organized for 2,415 families (9,743 people) in 59 shelters at cost of C$1,458,660.00
  - World Food Programme delivered 1,056.8 mt of food, of which 546.69 mt delivered at cost of approximately C$26,388,414.66
  - 324 temporary shelters erected nationwide; 59 shelters currently operating for 2,415 families (9,743 people) receiving permanent government assistance

### Caribbean Coast Development Strategy and regional outcomes
- Strategy main thrusts:
  - Increase socio-economic well-being of the population
  - Achieve economic, equitable, sustainable and harmonious human–nature transformation
  - Strengthen autonomy of institutions leading human development in the Caribbean
- Progress (2007–2010):
  - Demarcation and titling of 15 indigenous territories and lands pertaining to Afro-descendants covering 22,478.99 km2 benefiting 103,790 inhabitants of 215 communities
  - Over 114,000 producers participating in productive programs:
    - Food Production (Zero Hunger) Program delivered 11,394 production vouchers to female heads of household
    - Basic grains seeds program benefited 3,000 families
  - Zero Usury Program present in eight municipalities and received financing totaling C$5,751,100 in 2010
  - 2010 School Feeding Program delivered production packages to 1,068 families in Miskito and Mayangna communities
  - Sectoral Rural Development Program in Bonanza and Waspam delivered 312 technological input packages (each valued at US$500), established 240 plots for diversified crops and 422 hectares for agroforestry
  - Compassion Program (Programa Corazón) financed 92 projects in Bosawas Reservation (food production, traditional medicine, community ecotourism)
- Social and human development outcomes:
  - Social infrastructure: 50 municipal and community sports facilities constructed
  - Education: restoration of intercultural bilingual education through 4th grade in native languages (Miskito, Mayagna, English-based Creole); regionalization of education; multiple localities declared free of illiteracy following national literacy campaigns
  - Over 120 schools and institutes repaired, expanded, or built
  - Health: 1.5 million medical consultations, laboratory tests and medicines provided; maternal mortality rate cut by 34 percent; under-one child mortality rate fell by 16 percent; 45 health units and four maternity homes started functioning; four new primary hospitals built; regional hospital improvements in Bilwi and Bluefields
  - Water and sanitation: more than 148,000 people gained access to water and/or sanitation services (challenge remains)
  - Transport and infrastructure: road works (Waspam-Bilwi, Las Minas-Río Blanco) including 20 km hydraulic cement concrete and 13 all-weather bridges; maintenance and rehabilitation on key roads; runway in Bilwi completed; construction begun on meteorological air terminals in Bluefields and Corn Island
  - Electricity and renewable energy: electricity brought to Kukra Hill, Laguna de Perlas, La Desembocadura, Mulukuku, Siuna, Alamikamban, Bonanza, Rosita and Tasba Pri benefiting 54,000 Caribbean households; hybrid Eurosolar photovoltaic systems installed in remote communities
  - Tourism and agroindustry initiatives: northern and southern tourism poles established; international coastal/riverbank clean-ups; First International Tourism Fair (FENITUR) participation; cocoa and coconut sowing; milk collection center in Layasika; 1,800 families benefited from improved production and collection of basic goods
  - Fisheries and forestry: US$1.8 million in finance to support artisanal fishermen benefiting 1,405 families in RAAS and 2,150 families in RAAN; 75 forestry communities organized into 14 community forestry enterprises; forestry surveillance system established in RAAN
  - Institutional strengthening: training for regional institutions in management and monitoring of the Caribbean Coast Development Plan; Declaration of Alto Coco and Bocay communities as a Special Development Zone to enable indigenous participation; autonomy statute reform process initiated

### Implementation, monitoring, evaluation, and statistical system strengthening
- National Planning, Investment, Budget and Cooperation System developments:
  - National Planning, Investment, Budget and Cooperation Council established by Presidential mandate in 2010 to coordinate planning, financial resource allocation/programming and public management
  - In-depth sectoral dialogue maintained across SNBS, SPAR and other sectors to support NHDP implementation
  - 2009 and 2010 Citizen Power Action Plans formulated as regionalized expressions of Substantive-Emblematic Programs and Public Investment Program to enable social audit and citizen oversight
  - Fifty-three institutional annual operating plans formulated aligned with NHDP
  - Public Investment Program (PIP) re-prioritized since 2009 toward gross capital formation; execution has improved year-on-year
  - Medium-term Budgetary Frameworks prepared for 2007-2009 and 2010-2013; work ongoing to harmonize with NHDP and Economic and Financial Program (PEF)
- Monitoring and evaluation approach:
  - Monitoring conceived as instrument to generate information and knowledge for timely decision-making; monitors physical and financial execution
  - Strengthening of National Statistics System (SEN) in 2009-2010 to monitor outcomes and impacts on population well-being
  - Integration and linkage of SIGFA-MHCP, SISCOOP-MINREX, BP-SNIP/MHCP and SIGRUN-SEPRES+MHCP to track results and outputs
  - Establishment of National Planning, Investment, Budget and Cooperation Council, National Technical Committees and National Institutions Commission (meets twice monthly) in 2010 for follow-up on strategic goals and PIP, Budget and cooperation funds
- SEN strengthening and INIDE modernization steps undertaken:
  - Preparation of 2008-2012 SEN Integration and Strengthening of INIDE Plan
  - Strengthening INIDE technical capacity for censuses and surveys
  - Institutional mechanisms for coordinating sectoral statistics established
  - Technical specifications for principal SEN indicators prepared
  - Coordination with local and sectoral authorities to structure SEN nationwide via capacity-building, municipal indicators and departmental vital statistics commissions
  - Training in DEVINFO and REDATAN programs for SEN institutions
  - Strategic Plan for Vital Statistics System formulated and tested with local stakeholders
  - Production of basic statistical information via Continuous Household Survey (ECH) and National Standard of Living Measurement Survey (EMNV)
  - Publication of Statistical Yearbooks for SEN institutions
  - Generation of demographic estimates and projections at national, departmental and municipal levels by age
  - Compilation of IV CENAGRO (fourth National Agricultural and Livestock Census) by INIDE in cooperation with MAGFOR
  - Preparation by INIDE (with MINSA) of Nicaraguan Demographic and Health Survey (ENDESA) including fundraising and technical assistance
  - Ongoing compilation from Urban Economic Census (CEU)
  - Change of CPI base year from 1999 to 2006 to consolidate economic statistics and reflect consumption pattern changes
  - Consolidation of coordination with BCN and MITRAB for Continuous Households Survey and Urban Economic Census
  - Outline prepared (with MINED) for a School Infrastructure Census
  - Installation (with MIFAN) of working commissions to design and implement information system monitoring indicators for Rights of Young Children and Adolescents

*Technical Progress Report on National Human Development Plan as of 2010 — Government of Reconciliation and National Unity, September 12, 2011*

### ANNEX 1: MACROECONOMIC STATISTICS

### ANNEX 1: MACROECONOMIC STATISTICS

### Gross Domestic Product — Levels and Growth
- GDP (millions of 1994 córdobas):  
  - 2006: 32,936.9  
  - 2007: 34,136.9  
  - 2008: 35,078.8  
  - 2009: 34,563.4  
  - 2010: 36,112.0  
  - 2011: 37,377.8  
- Real GDP growth rates (annual): 2006: 4.2; 2007: 3.6; 2008: 2.8; 2009: (1.5); 2010: 4.5; 2011: 3.5
- GDP (at 1994 prices) series:  
  - 2006: 21,245.1  
  - 2007: 25,738.2  
  - 2008: 30,338.1  
  - 2009: 34,136.9  
  - 2010: 35,078.8  
  - 2011: 34,563.4 (noted) / 36,112.0 / 37,377.8 (multiple series presented)
- Nominal GDP (current córdobas):  
  - 2006: 24,015.5  
  - 2007: 43,815.3  
  - 2008: 73,004.4  
  - 2009: 104,456.4  
  - 2010: 123,442.5  
  - 2011: 126,386.2 / 139,916.2 / 158,101.6 (multiple series presented)
- Nominal GDP (US$ millions): 2006: 3,162.6; 2007: 3,747.8; 2008: 4,551.5; 2009: 5,662.0; 2010: 6,372.3; 2011: 6,213.8 / 6,551.5 / 7,050.5 / 7,009.3 (multiple figures shown)

### GDP by Economic Activity (millions of 1994 córdobas)
- Aggregate by sector (2006–2011 sample values):  
  - Primary activity (2006): 6,555.4; (2007): 6,550.1; (2008): 6,983.9; (2009): 6,972.6; (2010): 7,425.7; (2011): 7,646.9  
  - Secondary activity (2006): 7,925.8; (2007): 8,290.2; (2008): 8,234.7; (2009): 7,935.9; (2010): 8,383.3; (2011): 8,782.7  
  - Tertiary activity (2006): 16,473.1; (2007): 17,307.5; (2008): 17,879.1; (2009): 17,818.7; (2010): 18,197.1; (2011): 18,731.3
- Selected subsectors (2006–2011):  
  - Agriculture: 2006: 3,322.1; 2007: 3,135.0; 2008: 3,473.7; 2009: 3,301.5; 2010: 3,495.2; 2011: 3,482.5  
  - Livestock: 2006: 2,323.3; 2007: 2,511.2; 2008: 2,518.9; 2009: 2,614.1; 2010: 2,883.1; 2011: 3,085.0  
  - Manufacturing industry (2006–2011): 6,287.1; 6,753.3; 6,812.4; 6,710.2; 7,179.3; 7,518.8  
  - Construction (2006–2011): 1,312.7; 1,242.1; 1,145.8; 974.0; 852.2; 886.5  
  - Commerce (2006–2011): 5,491.0; 5,755.4; 5,912.5; 5,761.8; 5,979.7; 6,178.7  
  - General Government (2006–2011): 2,037.4; 2,099.1; 2,202.9; 2,277.9; 2,326.7; 2,408.2

### Expenditure-Side GDP (millions of córdobas of 1994)
- Consumption (1994 córdobas):  
  - 2006: 30,102.9; 2007: 31,289.9; 2008: 32,623.2; 2009: 32,065.5; 2010: 33,090.8; 2011: 33,996.4  
  - Public consumption (2006–2011): 4,211.8; 4,326.9; 4,671.0; 4,549.8; 4,551.4; 4,760.1  
  - Private consumption (2006–2011): 25,891.2; 26,963.0; 27,952.1; 27,515.7; 28,539.4; 29,236.4
- Gross investment (2006–2011): 7,960.1; 8,808.0; 8,881.1; 7,123.0; 7,836.7; 9,073.8  
  - Fixed investment (2006–2011): 7,415.6; 7,865.7; 8,259.5; 6,517.1; 6,977.2; 7,903.5  
  - Construction (2006–2011): 3,251.3; 3,140.9; 2,897.3; 2,462.9; 2,154.9; 2,241.5  
  - Machinery and equipment (2006–2011): 3,421.8; 3,980.7; 4,617.6; 3,348.9; 4,068.4; 4,887.4
- Public investment (fixed) (2006–2011): 1,124.2; 1,143.1; 1,111.9; 1,349.0; 1,259.5; 1,455.3  
  - Public construction (2006–2011): 967.5; 974.9; 941.3; 1,150.2; 1,068.7; 1,225.5
- Exports and imports (1994 córdobas):  
  - Exports: 2006: 10,870.2; 2007: 11,775.4; 2008: 12,658.0; 2009: 12,971.5; 2010: 14,687.1; 2011: 15,323.5  
  - Imports: 2006: 15,996.2; 2007 onward shown with inconsistent formatting but series includes 17,736.4; 19,083.4; 17,596.6; 19,502.6; 21,016.0

### Aggregate Expenditure (millions of córdobas)
- Gross domestic product (current córdobas, selected series):  
  - 2006: 91,897.0; 2007: 104,456.4; 2008: 123,442.5; 2009: 126,386.2; 2010: 139,916.2; 2011: 158,101.6  
- Consumption (current córdobas): 90,804.5; 105,512.2; 130,723.2; 129,642.8; 141,018.0; 159,345.8  
  - Public consumption (current córdobas): 16,950.8; 19,227.6; 24,987.2; 24,264.9; 23,551.3; 27,796.7  
  - Private consumption (current córdobas): 73,853.7; 86,284.6; 105,736.0; 105,377.9; 117,466.7; 131,549.1
- Gross investment (current córdobas): 28,262.8; 34,891.3; 40,565.4; 31,067.9; 38,486.9; 49,036.8  
  - Fixed investment (current córdobas): 26,727.6; 32,372.3; 39,899.2; 34,349.8; 38,285.8; 45,593.3  
  - Machinery and equipment (current córdobas): 11,083.7; 14,421.4; 19,434.7; 15,253.5; 19,644.5; 24,473.8
- Exports and imports (current US$ equivalents reported in other tables):  
  - Exports (current córdobas): 29,518.4; 35,475.8; 43,681.4; 44,454.3; 57,841.6; 68,497.8  
  - Imports (current córdobas): 56,688.6; 71,422.9; 91,527.5; 78,778.7; 97,430.3; 118,778.8

### Macroeconomic Indicators — Averages and Rates
- Real GDP (growth rates) averages/periods presented: 1994-1996: 6.1; 1997-2001: 4.4; 2002-2006: 3.4; detailed annual rates repeated as above.
- GDP per capita in US$: 1994-1996: 679.0; 1997-2001: 746.8; 2002-2006: 844.4; 2006: 1,011.9; 2007: 1,124.1; 2008: 1,082.1; 2009: 1,126.5; 2010: 1,197.2
- Inflation (end of period): 1994-1996: 11.9; 1997-2001: 9.5; 2002-2006: 7.7; 2006: 16.9; 2007: 13.8; 2008: 0.9; 2009: 9.2; 2010: 8.6
- Inflation, annual average: 1994-1996: 10.1; 1997-2001: 10.5; 2002-2006: 7.3; 2006: 11.1; 2007: 19.8; 2008: 3.7; 2009: 5.5; 2010: 8.7
- GDP deflator: 1994-1996: 11.5; 1997-2001: 9.8; 2002-2006: 7.5; 2006: 9.7; 2007: 15.0; 2008: 3.9; 2009: 6.0; 2010: 9.2

### External Sector and Balance of Payments (millions of US$ / selected ratios)
- Balance of payments (selected items):  
  - Current Account: 2008: (1,570.3); 2009: (832.1); 2010: (968.9); 2011p: (1,255.7) (millions of dollars)  
  - Trade Balance in Goods: 2008: (2,200.9); 2009: (1,539.5); 2010: (1,635.7); 2011p: (1,947.2)  
  - Exports (total): 2008: 2,530.1; 2009: 2,389.6; 2010: 3,156.6; 2011p: 3,677.4  
    - Merchandise exports (f.o.b.): 2008: 1,475.3; 2009: 1,393.8; 2010: 1,851.1; 2011p: 2,196.8  
    - Manufactured goods (FTZ exp.): 2008: 1,021.5; 2009: 972.1; 2010: 1,277.2; 2011p: 1,450.1  
  - Imports (total): 2008: (4,731.0); 2009: (3,929.2); 2010: (4,792.2); 2011p: (5,624.7)  
    - Merchandise imports (f.o.b.): 2008: (3,995.4); 2009: (3,229.1); 2010: (3,872.5); 2011p: (4,580.6)
- Income and current transfers (millions of dollars):  
  - Income (credits): 2008: 460.4; 2009: 496.0; 2010: 471.5; 2011p: 535.1  
  - Current transfers (credits): 2008: 1,139.9; 2009: 1,118.4; 2010: 1,172.8; 2011p: 1,195.0  
    - NGO grants (2008–2011p): 321.8; 350.0; 350.0; 330.0  
    - Family remittances (2008–2011p): 818.1; 768.4; 822.8; 865.0
- Capital and financial account (millions of dollars):  
  - Capital and Financial Account totals: 2008: 1,535.4; 2009: 1,059.9; 2010: 1,164.3; 2011p: 1,148.0  
  - Financial Account (net): 2008: 1,157.4; 2009: 665.9; 2010: 960.2; 2011p: 971.3
- Private capital (net) and components (millions of dollars): 2008: 1,026.1; 2009: 417.2; 2010: 751.6; 2011p: 806.0  
  - Foreign direct investment: 2008: 626.1; 2009: 434.2; 2010: 508.0; 2011p: 657.9  
  - Net loans (medium and long-term): 2008: 484.4; 2009: 269.9; 2010: 526.3; 2011p: 306.7
- Balance of payments summary and reserve indicators:  
  - Balance of payments balance (1 + 2): 2008: (34.9); 2009: 227.8; 2010: 195.4; 2011p: (107.7) (millions of dollars)  
  - GIR of the BCN (US$ millions): 2008: 1,140.8; 2009: 1,408.8; 2010: 1,634.6; 2011p: 1,550.9  
  - GIR/Imports G&S (months): 2008: 2.5; 2009: 3.7; 2010: 3.6; 2011p: 2.9

### Fiscal Sector — Consolidated Operations of the Nonfinancial Public Sector (millions of córdobas; percent of GDP)
- Total income (millions of córdobas): 2009: 33,664.5; 2010: 38,956.1; 2011p: 43,652.3  
  - Current income (millions of córdobas): 2009: 33,596.9; 2010: 38,851.0; 2011p: 43,578.4  
  - Tax income from Central Government: 2009: 30,036.7; 2010: 34,871.6; 2011p: 39,980.6 (Percent of GDP: 2009: 23.8; 2010: 24.9; 2011p: 25.3)
- Total spending (millions of córdobas): 2009: 40,428.4; 2010: 42,699.6; 2011p: 49,314.7 (Percent of GDP: 2009: 32.0; 2010: 30.5; 2011p: 31.2)  
  - Current expenses: 2009: 31,150.7; 2010: 33,297.6; 2011p: 38,358.7 (Percent of GDP: 2009: 24.6; 2010: 23.8; 2011p: 24.3)  
  - Capital expenditures: 2009: 9,277.7; 2010: 9,402.0; 2011p: 10,956.0 (Percent of GDP: 2009: 7.3; 2010: 6.7; 2011p: 6.9)  
    - Fixed capital formation (millions of córdobas): 2009: 6,139.7; 2010: 5,696.3; 2011p: 6,723.4 (Percent of GDP: 2009: 4.9; 2010: 4.1; 2011p: 4.3)  
    - Capital transfers (millions of córdobas): 2009: 3,089.7; 2010: 3,687.6; 2011p: 4,227.6 (Percent of GDP: 2009: 2.4; 2010: 2.6; 2011p: 2.7)
- Fiscal balances (percent of GDP and levels):  
  - Current surplus or deficit (1-1. -2.1): 2009: 2,446.1; 2010: 5,553.4; 2011p: 5,219.7 (Percent of GDP: 2009: 1.9; 2010: 4.0; 2011p: 3.3)  
  - Overall deficit before grants (1-2): 2009: (6,763.9); 2010: (3,743.6); 2011p: (5,662.4) (Percent of GDP: 2009: (5.4); 2010: (2.7); 2011p: (3.6))  
  - Foreign grants (millions of córdobas): 2009: 4,380.8; 2010: 3,010.5; 2011p: 3,899.9 (Percent of GDP: 2009: 3.5; 2010: 2.2; 2011p: 2.5)  
  - Overall deficit after grants (millions of córdobas): 2009: (2,383.1); 2010: (733.1); 2011p: (1,762.5) (Percent of GDP: 2009: (1.9); 2010: (0.5); 2011p: (1.1))
- Financing composition (millions of córdobas; percent of GDP):  
  - Net foreign financing (2009–2011): 4,874.2; 4,706.2; 3,880.4 (Percent of GDP: 2009: 3.9; 2010: 3.4; 2011p: 2.5)  
  - Loans (gross): 2009: 5,805.3; 2010: 5,646.5; 2011p: 5,032.4 (Percent of GDP: 2009: 4.6; 2010: 4.0; 2011p: 3.2)  
  - Payments on loans: 2009: 931.0; 2010: 940.3; 2011p: 1,152.0 (Percent of GDP: 2009: 0.7; 2010: 0.7; 2011p: 0.7)
- Net domestic financing and sectoral composition (millions of córdobas):  
  - Net domestic (total): 2009: (2,492.6); 2010: (3,973.2); 2011p: (2,345.8) (Percent of GDP: 2009: (2.0); 2010: (2.8); 2011p: (1.5))  
  - Central Bank and rest of financial system: (470.7); (2,859.1); 857.7 (Percent of GDP: 2009: (0.4); 2010: (2.0); 2011p: 0.5)  
  - Central Government (net): (843.1); (2,138.0); (181.8) (Percent of GDP: 2009: (0.7); 2010: (1.5); 2011p: (0.1))

### External Financing, Grants, and Public Investment Resources (millions of US$ / córdobas as presented)
- Total foreign resources (selected line items): 567.6; 30.4; 72.4; 14. (table formatting fragmented)
- Composition of foreign resources (loans and grants, select entries):  
  - Loans: 219.3; 30.2; 285.2; 40.  
  - Grants: 348.3; 0.0; 186.3; 174.  
- Liquid resources and budgetary support (select entries): 30.7; 95.4; 64.7; 45.0 (formatting fragmented)
- Resources for Public Investment (PIP) (select entries): 508.4; 96.3; 87.3; 53. (table fragmented)  
  - Loans for PIP (select entries): 190.2; 13.2; 23.2; 3.1; 79.  
  - Grants for PIP (select entries): 317.2; 83.1; 63.1; 64.1; 74.

*Source: ANNEX 1: MACROECONOMIC STATISTICS (Technical Progress Report on National Human Development Plan as of 2010), Government of Reconciliation and National Unity; BCN; MHCP; data as presented in the source PDF.*

### 3. IMF resources28.938.019.616.0

### _cr11323 - 3. IMF resources28.938.019.616.0

### Total foreign resources for the public sector (summary figures)
- Table header: TOTAL FOREIGN RESOURCES FOR THE PUBLIC SECTOR (Millions of dollars)
- Aggregate totals (selected): 2008 2009 2010 2011
- Total Income: 23,859.3 27,575.0 31,599.9 18.9 19.7 20.0
- Total Expenses: 30,423.5 31,760.3 36,953.4 24.1 22.7 23.4
- Overall deficit (-) before grants (1-2): (6,564.2) (4,185.3) (5,353.5) (5.2) (3.0) (3.4)
- Foreign Grants: 3,079.5 2,833.9 3,579.6 2.4 2.0 2.3
- Overall deficit (-) after grants (4+5): (3,484.8) (1,351.3) (1,773.9) (2.8) (1.0) (1.1)
- Financing: 3,484.8 1,351.3 1,773.9 2.8 1.0 1.1

### Fiscal aggregates — revenue composition (Central Government Income)
- Total Collections: 23,859.3 27,575.0 31,599.9 18.9 19.7 20.0
- Current Income: 23,859.3 27,575.0 31,599.9 18.9 19.7 20.0
- Tax Revenue: 22,175.2 25,585.7 29,253.7 17.5 18.3 18.5
- Non-tax Income: 1,634.0 1,939.3 2,221.3 1.3 1.4 1.4
- Selected tax components:
  - Direct Taxes: 7,865.2 8,480.9 10,149.9 6.2 6.1 6.4
  - On Goods and Services: 8,301.0 9,589.9 10,628.0 6.6 6.9 6.7
  - Value Added Tax (VAT): 3,885.5 4,028.3 4,486.0 3.1 2.9 2.8
  - Selective Consumption Tax (SCT): 4,391.5 5,541.3 6,119.1 3.5 4.0 3.9
  - Taxes on Foreign Trade: 6,009.0 7,515.0 8,475.8 4.8 5.4 5.4
  - Import tariffs: 870.3 1,094.3 1,253.3 0.7 0.8 0.8

### Central Government expenditures (selected lines)
- Total expenditure and net lending: 30,423.5 31,760.3 36,953.4 24.1 22.7 23.4
- Current Expenditure: 23,410.3 24,195.9 28,297.0 18.5 17.3 17.9
  - Wages and salaries: 8,615.3 8,933.1 10,048.3 6.8 6.4 6.4
  - Goods and services: 4,651.5 4,863.1 6,476.8 3.7 3.5 4.1
  - Interest: 1,711.3 1,990.6 2,495.1 1.4 1.4 1.6
    - Domestic interest: 1,158.0 1,396.2 1,692.9 0.9 1.0 1.1
    - Foreign interest: 553.3 594.5 802.2 0.4 0.4 0.5
  - Current Transfers: 8,432.3 8,409.1 9,276.8 6.7 6.0 5.9
    - To INSS: 1,002.2 1,150.7 1,238.1 0.8 0.8 0.8
    - Municipalities (ALMA and others): 460.2 583.1 703.3 0.4 0.4 0.4
    - To public utility enterprises: 131.9 42.0 44.1 0.1 0.0 0.0
- Capital Expenses and Net Lending: 7,013.2 7,564.4 8,656.5 5.5 5.4 5.5
  - Fixed Capital Formation: 3,634.4 3,715.0 4,140.1 2.9 2.7 2.6
  - Capital Transfers: 3,342.2 3,849.4 4,516.4 2.6 2.8 2.9
    - Municipalities: 1,500.8 1,885.4 2,215.6 1.2 1.3 1.4
    - To public utility enterprises: 252.5 161.8 288.8 0.2 0.1 0.2
- Net lending: 36.5 0.0 0.0 0.0 0.0 0.0

### Financing and debt flows (selected)
- Net Foreign financing: 4,017.4 3,458.2 3,245.1 3.2 2.5 2.1
  - Disbursements: 4,930.1 4,379.6 4,376.4 3.9 3.1 2.8
    - Liquid: 1,599.4 909.5 1,008.0 1.3 0.7 0.6
    - Tied: 3,330.7 3,470.1 3,368.4 2.6 2.5 2.1
  - Payments: 912.8 921.5 1,131.3 0.7 0.7 0.7
- Net Domestic: (534.1) (2,106.9) (1,471.2) (0.4) (1.5) (0.9)
- Domestic payments (selected): (2,311.8) (2,969.0) (3,753.0) (1.8) (2.1) (2.4)
- Bonds of the Republic: 2,415.5 2,554.5 2,800.0 1.9 1.8 1.8
- BCN capitalization bonds: 0.0 0.0 (250.9)

### Consolidated operations of the non-financial public sector (selected)
- Total Income: 33,664.5 38,956.1 43,652.3 26.6 27.8 27.6
  - Current Income: 33,596.9 38,851.0 43,578.4 26.6 27.8 27.6
  - Tax Income from Central Government: 30,036.7 34,871.6 39,980.6 23.8 24.9 25.3
  - Non-tax income: 1,695.3 2,004.1 2,290.9 1.3 1.4 1.4
- Total spending: 40,428.4 42,699.6 49,314.7 32.0 30.5 31.2
  - Current expenses: 31,150.7 33,297.6 38,358.7 24.6 23.8 24.3
    - Foreign interest: 569.9 620.5 813.2 0.5 0.4 0.5
    - Domestic interest: 1,162.9 1,399.7 1,742.1 0.9 1.0 1.1
  - Capital expenditures and net lending: 9,277.7 9,402.0 10,956.0 7.3 6.9 6.7
    - Fixed capital formation: 6,139.7 5,696.3 6,723.4 4.9 4.1 4.3
    - Capital transfers: 3,089.7 3,687.6 4,227.6 2.4 2.6 2.7
- Overall deficit (-) before grants: (6,763.9) (3,743.6) (5,662.4) (5.4) (2.7) (3.6)
- Foreign grants: 4,380.8 3,010.5 3,899.9 3.5 2.2 2.5
- Overall deficit (-) after grants: (2,383.1) (733.1) (1,762.5) (1.9) (0.5) (1.1)
- Financing: 2,383.1 733.1 1,762.5 1.9 0.5 1.1
  - Net Foreign: 4,874.2 4,706.2 3,880.4 3.9 3.4 2.5
    - Loans: 5,805.3 5,646.5 5,032.4 4.6 4.0 3.2
    - Payments: 931.0 940.3 1,152.0 0.7 0.7 0.7
  - Net Domestic: (2,492.6) (3,973.2) (2,345.8) (2.0) (2.8) (1.5)

### NHDP Strategy Matrix — selected results and indicators (Achievements as of 2010 / August 2011)
- Poverty and macro:
  - % reduction in extreme poverty: 17.2 2/ -- 14.3 3/
  - Real GDP growth rate: 3.6 2.8 -1.0 -1.5 -1504.5 BCN
  - Real per capita GDP growth rate: 2.3 1.4 -2.3 -2.7 117.4 3.2 BCN
  - Inflation rate: 16.9 13.8 4.0 0.9 22.5 9.2 BCN
  - % execution of public expenditures relative to the updated budget: 93.3 94.9 95.0 94.4 99.4 95.6 MHCP
- Social and human development:
  - Illiteracy rate among persons 10 years of age or older: 20.2 7.5 5.0 3.3 66.0 4.0 3.0 133.3 MINED
  - Maternal mortality rate per 100,000 live births: 76.5 62.5 67.0 59.8 112.0 62.8 67.4 93.0 MINSA
  - Infant mortality rate per thousand live births: 29.0 (1,947) 28 (1,931) 27.0 1,794 26.0 1,874 MINSA
  - Number of children and adolescents on the streets rescued and brought into the school system: 8,908 9,110 8,000 10,858 136 8,000 13,163 165.0 MIFAN
  - Number of children under six receiving CDI care: 16,217 98,246 90,048 90,025 100 96,132 88,179 92.0 MIFAN
- Infrastructure and production:
  - Number of additional MW of energy capacity produced: 60 60 160 160 100 40 63 157.5
  - Cumulative number of additional MW: 60 120 280 280 100 320 343 107.2
  - Number of rural households with electricity: 9,102 11,423 10,227 11,271 110.2 9,148 13,118 143.4 MEM
  - Number of new kilometers of secondary roads: 22.4 620.4 380.0 111 139.1 46 108.41 74.3 MTI
  - Number of rehabilitated kilometers of secondary roads: 82.5 137.8 827.0 131.6 487.4 56.0 198.38 354.3 MTI
  - % increase in agricultural production: 5.1 -0.9 10.4 8.0 76.9 0.9 1.6 177.8 MAGFOR
  - % increase of industrial value added: 6.8 2.2 -1.5 -2.5 166.7 0.5 7.0 1,400.0 MIFIC / BCN
- Environment and disaster risk:
  - Number of registered companies implementing environmental management programs: 137 158 209 295 141.1 220 321 145.9 MARENA
  - Number of early warning systems (EWS): 25 10 66 0 139 69.2 INETER
  - % of Municipal Committees for Disaster Prevention organized: 60 80 85 85 100 95 100 105.3 SINAPRED
  - % of families affected by natural disasters receiving social solidarity care: 80 90 95 95 100 100 100 100.0 SINAPRED
- Governance and transparency:
  - Number of State institutions with offices providing public information to citizens: - 8 15 30 SEPRES
  - Budgetary entities implementing MTBF: 18 25 33 45 MHCP
  - Number of property titles issued by the government: 8,904 19,355 19,000 26,173 138 19,000 13,662 71.9 Property Administration Office
  - Number of beneficiaries with property documents issued: 40,068 87,097 90,013 126,240 140 90,000 41,629 46.25 Property Administration Office

*Source: BCN; MHCP; MHCP/BC; MHCP; ALMA; INSS; Public enterprises; BCN-SREC-MINREX; SNIP/BCN; SEPRES; MINED; MINSA; MIFAN; ENACAL; FISE; ENATREL; MEM; MTI; MAGFOR; MIFIC; INAFOR; MARENA; INETER; SINAPRED; Property Administration Office.*

### ANNEX 3: ABBREVIATIONS AND ACRONYMS

### ANNEX 3: ABBREVIATIONS AND ACRONYMS

### International organizations, trade, finance, and programs
- 1. TRIPS: Trade-Related Aspects of Intellectual Property Rights
- 2. ALADI:  Latin American Integration Association
- 3. ALBA CARUNA: ALBA National Rural Fund
- 4. ALBA:  Bolivarian Alternative of the Americas
- 5. ALBANISA: ALBA de Nicaragua S.A
- 6. ALBA-TCP:  People’s Trade Agreement
- 7. ODA:  Official Development Aid
- 8. BCIE: Central American Bank for Economic Integration
- 9. BCN: Central Bank of Nicaragua
- 10. IDB: Inter-American Development Bank
- 11. WB: World Bank
- 14. BTS: Base Transceiver Stations
- 15. DR-CAFTA: Central America-Dominican Republic-United States Free Trade Agreement
- 19. ECLAC: Economic Commission for Latin America and the Caribbean
- 28. SDR: Special Drawing Rights
- 29. DEVINFO: Development Information
- 34. U.S.: United States of America
- 44. IMF: International Monetary Fund
- 47. MDRI:  Multilateral Debt Relief Initiative
- 49. FDI: Foreign Direct Investment
- 80. ILO: International Labour Organization
- 81. OMA:  Open Market Operations
- 82. WTO : World Trade Organization
- 83. WHO: World Health Organization
- 84. NGOs: Non-Governmental Organizations
- 94. WFP: World Food Programme
- 98. HIPC: Heavily Indebted Poor Countries
- 117. GSP: Generalized System of Preferences
- 118. SI: International System of Units
- 140. UNESCO: United Nations Educational, Scientific, and Cultural Organization

### Nicaraguan government institutions, ministries, and agencies
- 12. BPA: Food Production Bond
- 13. BP-SNIP/MHCP: Project Bank of the National Public Investment System
- 16. CAMIPYME: Support Center for Micro, Small, and Medium Enterprise
- 17. CAPS: Drinking Water and Sanitation Committee
- 18. CENAGRO: National Agricultural Census
- 20. CEU: Urban Economic Census
- 21. CGR:  Comptroller General of the Republic
- 22. CICO ́s : Community Infant Centers
- 23. CNS: National Health Council
- 24. CNZF: National Free-Trade Zone Commission
- 25. COMUPRED: Municipal Committees for Disaster Prevention, Mitigation and Response
- 26. CONICYT: Nicaraguan Council on Science and Technology
- 27. CPP: Criminal Procedure Code
- 30. DGA: General Directorate of Customs
- 31. DGIP: Public Investment General Directorate
- 32. DT: Delegaciones Territoriales (regional offices of government departments)
- 33. ECH: Continuous Household Survey
- 36. EMNV: National Household Living Standards Survey
- 37. ENABAS: National Basic Foodstuffs Supply Company
- 38. ENACAL: Nicaraguan Water and Sewage Systems Company
- 39. ENATREL: National Electrical Transmission Company
- 40. ENDESA: Nicaraguan Demographic and Health Survey
- 41. ENEL: Nicaraguan Electricity Company
- 42. EPN: National Ports Company
- 43. FENITUR: International Tourism Fair
- 45. FONDEAGRO:  Fund for Agricultural Development
- 46. GRUN: Government of Reconciliation and National Unity
- 48. IDR: Rural Development Institute
- 50. INAFOR: National Forestry Institute
- 51. INATEC: National Technological Institute
- 52. IND: National Sports Institute
- 53. INE: National Energy Institute
- 54. INETER: Nicaraguan Institute for Territorial Studies
- 55. INFOCOOP: Cooperative Development Institute
- 56. INIDE: National Development Information Institute
- 57. INIDE: Nicaraguan Development Information Institute
- 58. INIFOM: Nicaraguan Institute for Municipal Development
- 59. INJUVE: Institute of Youth
- 60. INPESCA: Nicaraguan Fishing and Aquaculture Institute
- 61. INPYME: Nicaraguan Small and Medium Enterprise Institute
- 62. INSS: Nicaraguan Social Security Institute
- 63. INTA: Nicaraguan Institute for Agricultural Technology
- 64. INTECNA: National Technological Institute
- 65. INTUR: Nicaraguan Tourism Institute
- 67. MAGFOR: Ministry of Agriculture and Forestry
- 68. MARENA: Ministry of Environment and Natural Resources
- 69. MHCP: Ministry of Finance and Public Credit
- 70. MIFAM: Ministry of the Family
- 71. MINED: Ministry of Education
- 72. MINSA: Ministry of Health
- 74. MITRAB: Ministry of Labor
- 77. MTI: Ministry of Transport and Infrastructure

### Social programs, safety nets, and development initiatives
- 35. EKG: Electrocardiogram
- 73. MSME: Micro, Small, and Medium Enterprise
- 75. MOSAFC: Family and Community Health Model
- 76. SLM: Sustainable Land Management
- 78. NTCI:  Unmet Basic Needs
- 79. NTCI: Normas Técnicas de Control Interno (Internal Control Technical Standards)
- 86. PDPCE: Program for Defense of Production, Growth, and Employment
- 87. EAP: Economically Active Population
- 88. PEF : Economic and Financial Program
- 89. PGR: General Budget of the Republic República
- 90. GDP: Gross Domestic Product
- 91. PINE:  Integrated School Nutrition Program
- 92. PIP:  Public Investment Program
- 93. PLANINPREC:  Planning, Investment, Budget, and Cooperation Commission
- 95. PNAIR: National Rural Agroindustry Program
- 96. NHDP: National Human Development Plan
- 97. PPA: Food Production Program
- 99. PRASMA: Managua Drinking Water and Sanitation Project
- 100. PRODELSA: Local Development and Food Security Program
- 101. PRODUZCAMOS: Banco de Fomento a la Producción
- 102. PROMIPYME: Micro, Small, and Medium Enterprise Development Program
- 103. PTAS: Managua Waste Water Treatment Plant
- 104. RAAN: Northern Atlantic Autonomous Region
- 105. RAAS: Southern Atlantic Autonomous Region
- 106. RBT:  Cross-Border Biosphere Reserve
- 109. SAN: Food and Nutritional Security
- 110. EWS: Early Warning Systems
- 112. SCLP: Economic Growth and Combating Poverty Service
- 113. SEN: National Statistics System
- 114. SENASA: National Agricultural Sanitary Service
- 115. SE-SSAN: Executive Secretariat for Food and Nutritional Sovereignty and Security
- 116. NFS:  National Financial System
- 119. SIAFM: Integrated Financial Administration System
- 120. SIEPAC: Regional Electricity Project
- 122. SIGRUN-SEPRES+MHCP:  Information  System  of  the  Government  of  Reconciliation  and  National Unity
- 123. SILAIS: Local Integrated Healthcare System
- 124. SINAP: National System of Protected Areas
- 125. SINAS: National Rural Water and Sanitation Information System
- 126. SISCAT: Municipal Land Registry System
- 127. SISCOOP-MINREX: Official Development Cooperation Information System for Nicaragua
- 128. SISEC: Civil Service Information System
- 129. SNBS: National Social Welfare System
- 130. SNIP:  National Public Investment System
- 131. SPAR: Agriculture, Livestock and Forestry System
- 132. SPMDH: Municipal Planning for Human Development System
- 133. NFPS: Non-Financial Public Sector
- 134. SSAN: Food and Nutritional Sovereignty and Security
- 135. SUCRE:  Unitary Regional Clearance System

### Technical systems, metrics, evaluation, and other acronyms
- 108. GIR: Gross International Reserves
- 111. ECF:  Extended credit facility
- 121. SIGFA-MHCP: Integrated System for Financial Management and Auditing
- 136. CAGR: Compound Annual Growth Rate
- 137. TEPCE: Educational Evaluation, Programming and Training Workshops
- 138. FTA: Free Trade Agreement
- 139. NER: Net enrollment rate
- 141. VIF: Domestic violence
- 107. REDATAN: Data recovery for small areas by microcomputer
- 21. CGR:  Comptroller General of the Republic

*GOVERNMENT OF RECONCILIATION AND NATIONAL UNITY — TECHNICAL PROGRESS REPORT ON NATIONAL HUMAN DEVELOPMENT PLAN AS OF 2010.*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11323.pdf_
